Page 184 - May 2018 - December 2018 Issue

13th Month Pay:

a Frequently

Asked Questions

By Erica San Diego, Human Resources and Administration

We expect to receive 13th month pay annually as required by law. But
do you know the frequently asked questions (FAQs) abouth 13th
month pay? Here are some of the FAQs regarding 13th month pay
from the Bureau of Working Conditions and we added two more
FAQs.

Q: Are there any employers exempted from giving 13th month pay?

A: The following employers are not covered by PD 851:

The government and any of its political subdivisions, including
government owned and controlled corporations, except those
corporations operating essentially as private subsidiaries of the
government.
Employers who are already paying their employees thirteenth –
month pay or more in a calendar year or its equivalent at the time of
the issuance PD 851.

Persons on the personal service of another in relation to such
workers; and
Employers of those who are paid on purely commission, boundary
or task basis, and those who are paid a fixed amount for performing
specific work, irrespective of the time consumed in the performance
thereof (except those workers who are paid on piece – rate basis, in
which case their employer shall grant them thirteenth – month pay).

Q: Is 13th month pay exempted from taxes?

A: 13th month pay and other benefits, such as productivity incentives

and Christmas bonus, not exceeding Php90,000.00 are exempt from
taxation.

183 | BENEFITS