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basic salary/13th month pay

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1 basic salary/13th month pay on Fri Nov 22, 2013 12:36 pm

GOOD MORNING! Very Happy 

Once again, I'd like to express my gratitude for the creators/founders of this forum. You give hope to those who are in need of legal advice.

My brother works for an advertising company. he earns a basic salary of 12,500 plus commissions. he only earns about 2,000-5,000 commission per month.
we would like to ask whether his commission should be considered as part of his basic salary in computing his 13th month pay. And where could we find in our laws the definition that integrates the commissions into the basic salary?

We do hope you could enlighten us on this. Thank you very much...Very Happy 

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2 Re: basic salary/13th month pay on Fri Nov 22, 2013 12:53 pm

Patok


Reclusion Perpetua
no, only basic salary is computed in 13th month pay unless otherwise agreed by the company..

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3 Re: basic salary/13th month pay on Fri Nov 22, 2013 1:09 pm

I just found this on the net. does this provision still apply?

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:

"Section 1 of Presidential Decree No. 851 is hereby modified 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." chan robles virtual law library
.........
5. 13th Month Pay for Certain Types of Employees.
(a) Employees Paid by Results. — Employees who are paid on piece work basis are by law entitled to the 13th month pay.

Employees who are paid a fixed or guaranteed wage plus commission are also entitled to the mandated 13th month pay, based on their total earnings during the calendar year, i.e., on both their fixed or guaranteed wage and commission.

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4 Re: basic salary/13th month pay on Fri Nov 22, 2013 1:49 pm

Patok


Reclusion Perpetua
Employees paid on commission basis.

Employees paid on a purely commission basis are not entitled to 13th month pay. They are expressly excluded from the coverage of PD 851. However, employees paid on partly commission basis, i.e., those guaranteed with a fixed wage aside from the commission, are entitled to 13th month pay.

Computation. In the computation of the basic salary of employees paid partly on commission basis, we must distinguish between the two types of commission:

Commission as an incentives or encouragement to ensure productivity, i.e., productivity bonus; and
Commission as a direct remuneration for service rendered.
Commission that take the form of an incentives or encouragement to ensure productivity, e.g., productivity bonus, does not form part of the basic salary. As such, it may be excluded from the computation of 13th month pay. Only the fixed or guaranteed wage is required to be included in the computation (see Boie Takeka case, 1993.)

Basic salary = Fixed wage (commission is excluded)

On the other hand, commission that takes the form of a direct remuneration for services rendered should be included in the computation of the basic salary. That is, it should be added to the guaranteed wage of the employee in computing his “basic salary” (see Philippine Duplicators v. NLRC, 1993.)

Basic salary = Fixed wage + Commission

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5 Re: basic salary/13th month pay on Fri Nov 22, 2013 2:59 pm

thank you for the information. Smile 

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6 Re: basic salary/13th month pay on Tue Nov 26, 2013 6:24 pm

rsandal


Arresto Menor
good day,

sir i would like to seek some legal advice
my situation i signed a contractual contract last may 28 2013
till now i don't know if 'm regular or not?
then if ever ill resign now can they hold my back pay and 13th month pay?if yes till when sir?do i need to render 30 days?

thanks

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7 Re: basic salary/13th month pay on Wed Nov 27, 2013 3:41 am

jhennie628


Arresto Menor

Hi,

We just received a news from HR that our 13th month pay has been revised effective this year. 13th month pay will be computed as number of days worked in a year divided it by 12 months. Meaning to say if an employee got an unpaid leave for a month plus absence altogether, it will be deducted from the 13th mo bonus. Isn't unfair? For one, these absences were deducted already from our salary beforehand so why should it be deducted from our 13th month as well? Please clarify if this is legal or not. Thanks

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8 Re: basic salary/13th month pay on Wed Nov 27, 2013 9:45 am

Patok


Reclusion Perpetua
@rsandal - yes you have to render 30 days.. if you resign they can hold your last pay including 13th month until you are cleared.. ask them how long their clearance process is..

@jhennie628 - that is the correct computation.. why would the company pay you 13th month for the days you were absent w/o leave? What if you were absent for 1 month w/o leave? syempre hindi kasama sa computation nang 13th month pay yun.. wala ka nga eh.. same with lates..

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9 Re: basic salary/13th month pay on Wed Nov 27, 2013 12:06 pm

jhennie628


Arresto Menor
Hi,

Thank you for the reply. So that is the legal way when those unpaid leaves were deducted from our salary? Then if an employee is absent for 1 month, then it would be 11 months total basic over 12 months = 13th month? What about those cases wherein an employee was on floating status due a client pulling out from the contract? Thanks

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10 Re: basic salary/13th month pay on Wed Nov 27, 2013 12:22 pm

Patok


Reclusion Perpetua
if they are on floating status w/o pay.. then hindi din kasama sa 13th month pay yun..

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11 Re: basic salary/13th month pay on Wed Nov 27, 2013 12:31 pm

jhennie628


Arresto Menor
In retrospect, mali na pala yung ginagawa nila na they pay us in full 13th month eventhough employees had absences or on maternity/paternity leaves?

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12 Re: basic salary/13th month pay on Wed Nov 27, 2013 12:43 pm

rsandal


Arresto Menor
thank you,if i render they will still hold my 13th month pay,what if i will resign immediately they will still hold it or they will not give me any of it?

thanks

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13 Re: basic salary/13th month pay on Wed Nov 27, 2013 12:45 pm

Patok


Reclusion Perpetua
may ibang company na ganon.. depende sa company yan.. pero ang nasa batas.. bawas ang absences ang lates..

jhennie628 wrote:In retrospect, mali na pala yung ginagawa nila na they pay us in full 13th month eventhough employees had absences or on maternity/paternity leaves?

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14 Re: basic salary/13th month pay on Wed Nov 27, 2013 12:46 pm

Patok


Reclusion Perpetua
i hold lang naman yun until you are cleared.. the right way to do is to render 30 days notice and get clearance.. pag hindi ka nag render nang 30 days notice.. baka hindi mo pa makuha last pay mo.. wala ka pang certificate of employment..

rsandal wrote:thank you,if i render they will still hold my 13th month pay,what if i will resign immediately they will still hold it or they will not give me any of it?

thanks  

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15 Re: basic salary/13th month pay on Wed Nov 27, 2013 12:59 pm

rsandal


Arresto Menor
thank you po sa advice

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16 Re: basic salary/13th month pay on Wed Nov 27, 2013 1:57 pm

rsandal


Arresto Menor
how long they can hold my back pay and 13th month pay?

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17 Re: basic salary/13th month pay on Fri Jan 10, 2014 10:55 pm

reigen_05


Arresto Menor
hi po!

pa-help nmn po.
until now kasi wala pa po akong natatanggap na 13th month pay. i am employed since March 2013.
contractual employee po ako.
ang sbi po ng employer ko hndi daw po sila nagbibigay ng 13th month pay pag contractual employee lang.
hndi po un nabanggit sa akin ng HR before i accepted the employment. kaya po nagtaka po ako nung sbhin nila na prerogative daw po ng Board ang pagbibigay ng 13th month, kasi ang alam ko po e mandatory po un regardless of employment status.

ano po bang right ko sa 13th month pay as contractual employee?
tama po bang magdemand po ako sa employer ko? sayang lang po kasi ung 10 months ko dun.
i badly need your pieces of advice.

thank you so much po.

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18 Re: basic salary/13th month pay Today at 10:32 pm

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