However, these salary-related benefits should be included as part of the basic salary in the computation of the 13th month pay if by individual or collective agreement, company practice or policy, the same are treated as part of the basic salary of the employees.The required 13th month pay shall be paid not later than December 24 of each year.

dating pangalan ng pampanga-6dating pangalan ng pampanga-39

Private school teachers are entitled to 13th month pay regardless of the numbers of months they work in a year, provided it is at least one month.

Employees who resigned or were separated during the calendar year shall be entitled to 13th month pay in proportion to the length of time he worked during the year, provided it is at least one month.

Thus, if an employee works in two or more private firms, he is entitled to the pay from both or all of them.

If he is a government employee, but works part time in a private enterprise, he is entitled to 13th month pay from the private enterprise.

As such, it may be excluded from the computation of 13th month pay.

Only the fixed or guaranteed wage is required to be included in the computation (see Boie Takeka case, 1993.) On the other hand, commission that takes the form of a direct remuneration for services rendered should be included in the computation of the basic salary.

However, employees paid on partly commission basis, i.e., those guaranteed with a fixed wage aside from the commission, are entitled to 13th month pay.

Commission that take the form of an incentives or encouragement to ensure productivity, e.g., productivity bonus, does not form part of the basic salary.

Only basic salary is included in the computation of 13th month pay.

Allowances and monetary benefits which are not considered or integrated as part of the regular or basic salary, such as the cash equivalent of unused vacation and sick leave credits, overtime, premium, night differential and holiday pay, and cost-of-living allowances, shall be excluded from the computation.

The Labor Code distinguishes a rank-and-file employee from a managerial employee.