Last Updated on 04/27/2020 by FilipiKnow
Drivers under the “boundary system” are NOT entitled to the 13th-month pay.
Sec 2 (d) of the Revised Guidelines on the Implementation of the 13th-Month Pay Law1 provides that employers paying their employees on a “boundary system” are exempted from the coverage of the law.
Under the “boundary system”, a driver does not receive a fixed salary, instead, he is engaged to drive a vehicle and on each trip, the driver is required to remit a “boundary”. Whatever the excess of the amount is considered his income. This is usually the case for public utility jeepneys and taxis.
Family drivers are likewise not entitled to 13th-month pay because they’re not covered by the Labor Code, the Kasambahay Law, and P.D. 851 or the 13th-Month Pay Law. Please take note that family drivers are different from drivers who are listed as employees of a company or business.
However, a different rule applies to drivers and conductors working in the public utility bus transport industry. To ensure road safety, DOLE issued an Order2 effectively abolishing the “boundary system” and prescribing a part-fixed and part-performance wage system for bus drivers and conductors as well as mandating the payment of minimum benefits required to be given under the law such as holiday pay, rest day, overtime pay, night shift pay, paid service incentive leave, and 13th-month pay, among other things.
Because of the above DOLE Order, bus drivers and conductors are now entitled to the 13th-month pay.
Go back to the main article: How to Compute 13th Month Pay in the Philippines: An Ultimate Guide