Are workers doing piece-rate or “pakyaw” entitled to the 13th-month pay?

Last Updated on 04/27/2020 by FilipiKnow

Yes, they are entitled to the 13th-month pay under Sec. 2 (e) of the IRR1 which specifically says that workers who are paid on piece-rate shall be entitled to the 13th-month pay.

Piece-rate workers are classified as those who are paid a standard amount for every piece or unit of work produced that is more or less regularly replicated without regard to the time spent in producing the output.

In one case2, the Supreme Court ruled even if the mode of compensation of workers are not fixed but on a “per piece basis”, the status and nature of their employment were that of regular employees for the following three reasons:

  • The nature of the workers’ task of repacking snack food was necessary or desirable in the usual business of the employer who was engaged in the manufacturing and selling of such food products;
  • Workers worked for the employer throughout the year and not dependent on a particular project or season;
  • The length of time that workers worked for the employer.

Go back to the main article: How to Compute 13th Month Pay in the Philippines: An Ultimate Guide

 

References.

  1. Rules and Regulations Implementing Presidential Decree No. 851 (1975).
  2. Labor Congress of the Philippines vs. NLRC, G.R. No. 123938 (Supreme Court of the Philippines 1998).