Title
Mandates 13th month pay for employees
Law
Presidential Decree No. 851
Decision Date
Dec 16, 1975
The 13th Month Pay Law in the Philippines requires all employers to provide a 13th-month salary to employees with a basic salary of not more than P1,000 a month, aiming to protect real wages and address the lack of increase in minimum wage rates since 1970.

Q&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.


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