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What is “bonus”?
Bonus is an amount granted to an employee in excess of what the law requires as a
reward or incentive for achieving a goal and/or contributing to the success of the
employer’s business. Unlike 13th month pay, a bonus is given out of the employer’s
generosity and is not a demandable and enforceable obligation, unless when it has been
made part of the wage or made the subject of an express agreement.
Are there employers who are exempted from paying 13th month?
Yes. The following employers are exempted from paying 13th month pay under PD 851:
a) 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;
b) Employers who are already paying their employees 13 th month pay or more in a
calendar year or its equivalent at the time of the issuance of PD 851;
c) Employers of persons in the personal service of another in relation to such workers;
and
d) 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 the employer shall grant such workers the required 13th month pay.
Are maternity leave benefits included in the computation of 13th month pay?
No. Maternity leave benefits are not included in the computation of 13 th month pay.
To illustrate, assuming that a female employee is receiving a monthly salary
of P10,000.00 and was on maternity leave from June 1 to July 31, 2013:
How much is the 13th month pay of a resigned or separated/ terminated employee?
The 13th month pay of a resigned or separated/terminated employee is in proportion to
the length of time he or she has worked during the year, reckoned (a) from the time she
has starting working during the calendar year or (b) the time the last 13 th month pay was
given, up to the time of his/her resignation or separation/termination from the service.
Thus, if he/she worked only from January to September, his/her 13 th month pay shall be
equal to 1/12 of his total basic salary earned during that period