Question & AnswerQ&A (DOLE)
The 13th month pay is computed as not less than 1/12 of the total basic salary earned within a calendar year by the employee.
Basic wage includes all remunerations or earnings paid for services rendered during normal working hours, but excludes allowances or monetary benefits not integrated as part of the regular salary unless agreed otherwise by individual or collective agreement, company practice, or policy.
Generally, no. These are excluded unless by agreement or company practice, they are treated as part of the basic salary.
'Overload work' refers to the teaching load in excess of the normal load prescribed by DECS or school policies, specifically additional teaching work beyond the regular teaching load.
Overload work is additional teaching beyond regular load that can occur within or outside normal working hours, while overtime work specifically refers to work beyond the normal eight (8) hours a day as defined in the Labor Code.
Yes, payments for overload work done within the normal eight-hour working day are considered part of the basic wage and included in the 13th month pay computation.
Normal working time is defined as up to eight (8) hours in a day according to Article 83 of the Labor Code.
Because they are monetary benefits not integrated as part of the regular or basic salary unless otherwise agreed, and thus excluded from the basic wage calculation for 13th month pay.
Yes, if by individual or collective agreement, company practice, or policy, these payments are treated as part of the basic salary, they should be included in the 13th month pay computation.
The bulletin bases its definitions and computations on the Labor Code, the revised Implementing Guidelines of PD 851 as amended, and the Implementing Rules of RA 6727.