Last Updated on 04/28/2020 by FilipiKnow
Yes, certain employers are exempted from paying 13th-month pay.
- The Government and any of its political subdivisions, including government-owned and controlled corporations (except those operating essentially as private subsidiaries of the government). The salary and benefits of government employees are governed by a different law;
- Employers already paying their employees a 13th-month pay or more in a calendar year or equivalent. For example, if an employer is already giving employees Christmas bonus, mid-year bonus, cash bonuses, and other payment amounting to not less than /12 of the basic salary, then the employer is no longer required to pay the 13th-month pay;
- Employers of those who are paid purely on 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 of the task.
Go back to the main article: How to Compute 13th Month Pay in the Philippines: An Ultimate Guide
- Official Gazette of the Republic of the Philippines. Presidential Decree No. 851, s. 1975 (1975).
- Revised Guidelines on the Implementation of the 13th Month Pay Law (1986).