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Career Advice

Benefits of 13th Month Pay

Date Posted: Feb 5, 2009

When Christmas Holidays are coming, there are two things that most employees often get excited of. First, is the week long Christmas vacation and second, is the much awaited 13th month pay.



What is the 13th month pay?


Under the Presidential Decree 851 or the 13th Month Pay Law, all employers are obliged to give a 13th month pay to all of its employees. This serves as an incentive for the whole year of hard work.



When this will be given?


13th month pay are given once on the fourth quarter of the year. Some employers give it as early as October or November and most employers give it before Christmas vacation.



Who are entitled to receive?


All employees regardless of their nature of work are entitled to receive a 13th month pay. However, an employee should at least have 1 month working experience in the company to be entitled with the 13th month pay.



What it is called 13th month pay?


The amount that the employer will be given is based on the total monthly salary of an employee. So, aside from his salary for that month, he will also receive an equivalent salary that is included as the 13th month pay. Example, if an employee is receiving P10, 000 a month, he/she will receive an additional P10, 000.



Is the 13th month pay, same as the Christmas Bonus?


No, Christmas bonus is not given required to be given by employers to its employees unlike the 13th month pay. Christmas bonus is given to those loyal and hard working employees by generous employers for their great contribution to the company’s success.



Now we have a good reason to love the number “13”, forget the myth that says it brings bad luck. Just think that whenever Christmas season is coming, lucky 13th month pay comes along.
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