Tag Archives: wages

More from Your Bonus: A Welcome Valentines Gift

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

Primer on the 13th Month Pay

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

Administrative Order 2 (Implementing PD 851 or 13th Month Law; full text)

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