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.

Effectivity and publication rule

    • Section 3 declares: “This Decree shall take effect immediately.”
    • The decree provides a time deadline for payment: not later than December 24 of every year (Section 1).

Legal basis and cited context

    • The decree is issued “by virtue of the powers vested in me by the Constitution.”
    • The source text does not cite any specific statute, existing law, or regulation as legal basis beyond the Constitution.
    • The source text does not state any predecessor law that is expressly repealed.

Policy, purpose, and intent statements

    • The decree states it is “necessary to further protect the level of real wages from the ravage of world-wide inflation.”
    • It states that “there has been no increase in the legal minimum wage rates since 1970.”
    • It states that “the Christmas season is an opportune time for society to show its concern for the plight of the working masses so they may properly celebrate Christmas and New Year.”
    • The operative intent is to require employers to pay a 13th-month pay to eligible employees (Section 1).

Definitions and terms used

    • The source text does not include any express “Definitions” section or defined terms.
    • The scope uses the term “basic salary” and a numerical limit of not more than Pl,000 a month (Section 1), without defining it further in the text provided.
    • The scope uses “employees” and “employers” without express definitions (Section 1).

Scope and coverage rules

    • Section 1 covers all employers.
    • Section 1 requires payment to all their employees who receive a basic salary of not more than Pl,000 a month.
    • Coverage applies “regardless of the nature of their employment” (Section 1).
    • Section 2 excludes from coverage employers already paying employees a 13th-month pay or its equivalent.

Core substantive obligation: 13th-month pay

    • Employers are required “to pay their employees” a 13th-month pay (Section 1).
    • The payment is required only for employees with basic salary of not more than Pl,000 a month (Section 1).
    • The requirement applies “regardless of the nature of their employment” (Section 1).
    • The 13th-month pay must be paid “not later than December 24 of every year” (Section 1).

Exemptions and special coverage limits

    • Section 2 provides that employers already paying a 13th-month pay or its equivalent are not covered by the decree.
    • The only explicit coverage limitation/exemption stated in the source is the already-paying exception in Section 2.
    • The source text does not provide any other exemptions, waivers, or special-case mechanisms.

Procedures, implementation steps, and responsible offices

    • The source text does not set out any filing requirements, reporting duties, applications, approvals, hearings, or implementing-office roles.
    • The only concrete implementation timing requirement stated is the payment deadline: “not later than December 24 of every year” (Section 1).
    • The source text does not establish any administrative or judicial procedure for enforcement.

Penalties, sanctions, and consequences

    • The source text provides no penalties, no fines, no sanctions, and no administrative or criminal consequences for non-compliance.
    • The operative provisions are limited to the pay requirement and the coverage exemption (Sections 1–2).

Separability, repealing clauses, and sunset

    • The source text does not include any separability clause.
    • The source text does not include any repealing clause.
    • The source text does not include any sunset provision or termination date.

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