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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
13th month pay shall mean one-twelfth (1/12) of the basic salary of an employee within a calendar year. (Section 2, par. a, Rules and Regulations Implementing Presidential Decree No. 851)
The minimum 13th month pay required by law shall not be less than one-twelfth of the total basic salary earned by an employee within a calendar year. (par. 4 [a], Revised Guidelines on the Implementation of the 13th Month Pay Law)
Thirteenth-month pay refers to one-twelfth of the total basic salary earned by an employee. (Definition, Thirteenth-Month Pay, 2023 Handbook on Workers’ Statutory Monetary Benefits)
The 13th month pay shall not be less than one-twelfth (1/12) of the total basic salary earned by an employee in a calendar year.
Presidential Decree No. 851 (P.D. No. 851), issued on December 16, 1976 and otherwise called the 13th Month Pay Law, required all employers to pay all their employees receiving a basic salary of not more than P1,000.00 a month, regardless of the nature of their employment a 13th month pay not later than December 24 of every year.
P.D. No. 851 has been modified by Memorandum Order No. 28, issued on August 13, 1986, to the extent that all employers are hereby required to pay all their rank-and-file employees a 13th month pay not later than December 24 of every year.
Before its modification by the aforecited Memorandum Order, P.D. No. 851 excludes from entitlement to the 13th month pay those employees who were receiving a basic salary of more than P1,000.00 a month. With the removal of the salary ceiling of P1,000.00, all rank-and-file employees are now entitled to a 13th month pay regardless of the amount of basic salary that they receive in a month if their employers are not otherwise exempted from the application of P.D. No. 851. Such employees are entitled to the benefit regardless of their designation or employment status, and irrespective of the method by which their wages are paid, provided that they have worked for at least one (1) month during a calendar year. (Revised Guidelines on the Implementation of the 13th Month Pay Law)
The law says:
“The minimum 13th month pay required by law shall not be less than one-twelfth of the total basic salary earned by an employee within a calendar year.” (par. 4 [a], Revised Guidelines on the Implementation of the 13th Month Pay Law)
Why do employers have the burden of proving payment of 13th month pay?
In claims for payment 13th month pay, the burden rests on the employer to prove payment. This standard follows the basic rule that in all illegal dismissal cases the burden rests on the defendant-employer to prove payment rather than on the plaintiff-employee to prove non-payment. This likewise stems from the fact that all pertinent personnel files, payrolls, records, remittances and other similar documents – which show that the claims of workers have been paid – are not in the possession of the worker but are in the custody and control of the employer. (Reggie Orbista Zonio v. 1st Quantum Leap Security Agency, Inc. and Romulo Par, G.R. No. 224944, May 05, 2021)
Read also: What is meant by “basic salary” for the purpose of computing 13th month pay?
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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