Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 851)
The main purpose of Presidential Decree No. 851 is to require all employers to pay their employees a 13th-month pay to protect the real wages of workers from inflation and to enable them to properly celebrate the Christmas and New Year season.
All employees receiving a basic salary of not more than P1,000 a month, regardless of the nature of their employment, are covered under the 13th-month pay requirement.
No, the decree specifically mandates the 13th-month pay only for employees receiving a basic salary of not more than P1,000 a month.
Employers must pay the 13th-month pay not later than December 24 of every year.
No, employers who are already paying their employees a 13th-month pay or its equivalent are not covered by this decree.
The decree took effect immediately upon its issuance on December 16, 1975.
No, the 13th-month pay is an additional payment separate from the basic salary, required by law to be given to qualifying employees.
The decree mandates that the full 13th-month pay must be paid not later than December 24; it does not specify installment payments, thus full payment by the deadline is required.