Even contractuals, casuals, kasambahays entitled too
ANGARA PRODS EMPLOYERS ON TAX-FREE 13TH MONTH PAY, YEAREND BONUSES

It's that time of the year again.

Senator Sonny Angara has reminded employers on the proper computation and payment of 13th month pay and yearend bonus for both private and government employees given the higher tax exemption cap on such benefits.

Pursuant to Republic Act 10653, the 13th month pay and other benefits, including productivity incentives and Christmas bonuses, not exceeding P82,000 provided to both government and private sector employees are exempted from tax.

Before RA 10653 was signed into law in February last year, only bonuses not exceeding P30,000 were exempted from tax.

"Isa talaga ang 13th month pay sa pinakainaabangan ng ating mga ordinaryong manggagawa tuwing patapos ang taon. Tinaasan natin ang tax exemption cap para naman mas malaki ang maiuuwi nilang bonus para sa kanilang pamilya," said the Senate ways and means committee chairperson who sponsored the law.

The 13th month pay law was enacted pursuant to Presidential Decree No. 851 in 1975, mandating employers in the private sector to pay their employees not earning more than P1,000 a month an amount equivalent to 13th month pay. Through Memorandum Order No. 28 in 1986, the monthly salary cap was removed thereby entitling all rank and file employees to 13th month pay.

The senator also stressed that all employers in the private sector must pay their rank-and-file employees a 13th month pay regardless of the nature of their employment and whatever the method their wages are paid, provided they worked for at least one month during a calendar year.

The 13th month pay should be paid not later than December 24, and must be equivalent to one-twelfth (1/12) of the basic salary of an employee within a calendar year.

"Hindi lamang po mga regular na empleyado sa pribadong sektor ang dapat makakuha ng 13th month pay. Kahit ang mga contractual, casual, fixed term, probationary, seasonal employees ay may karapatan din makatanggap ayon sa ating Labor Code basta nakapagbigay ng serbisyo ng kahit isang buwan lamang," said Angara, vice chairman of the labor committee.

"At kahit ikaw ay pumasok sa gitna ng taon, dapat ka pa rin bayaran ng pro-rated na halaga ng iyong 13th month pay," the lawmaker added.

Angara, one of the authors of RA 10361 or the Batas Kasambahay, further noted that kasambahays are entitled to 13th month pay as well.

Meanwhile, pursuant to RA 8441, government employees and officials should have rendered at least four months of service from January 1 to October 31 to receive a Christmas bonus equivalent to one month basic salary and additional cash gift of P5,000.

Aggrieved workers who fail to receive their 13th month pay may file a complaint with regional offices of the Department of Labor and Employment.