The 13th Month Pay Law (Presidential Decree No. 851) was enacted by President Ferdinand Marcos on
It requires all employers to pay their rank and file employees a 13th-month pay not later than December 24 of every year REGARDLESS of the nature of their employment and irrespective of the method by which their wages are paid provided they worked for at least one (1) month during the calendar year. Hence, extras, casual and seasonal employees are entitled to the proportionate 13th month pay provided they worked for at least one (1) month during the calendar year.
The minimum 13th month pay required by law shall not be less than 1/12 of the total basic salary earned by an employee within a calendar year.
Other Certain types of employees who are entitled to 13th month pay:
1. Employees who are paid on piece work basis;
2. Employees who are paid a fixed or guaranteed wage plus commission; and
3. Employees with multiple employees regardless of their total earnings from each of all their employers.
4. Piece-rate employees – those who are paid a standard amount for every piece or unit of work performed that is more or less regularly replicated.
EXEMPTED Employers:
1. The government;
2. Employers of household helpers and persons in the personal service of another;
3. 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.
