Government has a bit of Valentines gift to people who rely on salaries to support themselves and their families — an increase in the tax exemption for 13th month pay and other bonuses/benefits. On 12 February 2015, two days before Valentines, President Aquino signed Republic Act No. 10653 (full text), increasing the tax exemption of bonuses from P30,000 to P82,000. Continue reading
What is 13th month pay?
It is a form of monetary assistance equivalent to the monthly basic compensation received by an employee, computed pro-rata according to the number of months within a year that an employee has rendered service to an employer (basic monthly pay/12 x number of months actually worked). It is provided under Presidential Decree No. 851. Continue reading
REVISED GUIDELINES ON THE IMPLEMENTATION OF THE 13TH MONTH PAY LAW
1. Removal of Salary Ceiling.
On August 13, 1986, President Corazon C. Aquino issued Memorandum Order No. 28 which provides as follows: Continue reading
ADMINISTRATIVE ORDER No. 2
Series of 1976
In the interest of public service and efficiency, more particularly to facilitate the disposition of cases involving petitions for exemption, complaints, enforcement and implementation of P.D. No. 851 and its implementing rules and regulations, the following guidelines shall be followed: Continue reading
Presidential Decree No. 851
Requiring All Employers to Pay their Employees a 13th-Month Pay
WHEREAS, it is necessary to further protect the level of real wages from the ravage of worldwide inflation; Continue reading