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Equivalents of 13th month pay include Christmas bonus, mid-year bonus, cash bonuses and other payments amounting to not less than 1/12 of the basic salary (Producers Bank of the Philippines vs NLRC, GR 100701, 28 March 2001). Dec 18, 2019 · Also covered by the payment of the 13th Month Pay are household helpers or “kasambahay”. Christmas Bonus & 13th Month Pay Computation. Since the Christmas bonus is voluntarily given by employers, it is up to the company as to how much they want to give their employers. However, for the 13th-month pay there is a standard computation to follow. Jun 18, 2024 · No, employers are not required to give both 13th-month pay and Christmas bonuses. They are only legally obligated to provide 13th-month pay as mandated by Presidential Decree No. 851. The Christmas bonus, on the other hand, is purely optional and given at the employer’s discretion. Penalties for Non-Compliance of 13th-Month Pay in the Philippines 13th month pay and other benefits, such as productivity incentives and Christmas bonus, not exceeding Eighty-Two Thousand Pesos (P82,000.00) are exempt from taxation. If you have any inquiries, you may coordinate with your HR manager or contact DOLE hotline at 1349. Source: Department of Labor and Employment (DOLE) Dec 24, 2022 · Household helpers, or “kasambahay,” should get their 13th month pay as they are also entitled to this mandated workers’ benefit, Department of Labor and July 10, 2022 News Jul 5, 2013 · House Bill 4753 or “Kasambahay (Househelp) Christmas Bonus Act of 2010” was also passed and approved aimed at improving the plight of household helpers by mandating a 13th month pay from employers. Also, if you think you are being generous to your kasambahays (domestic help) or family drivers when you give them Christmas bonus, you’re actually not. The Kasambahay Law obligates you to give all your household staff and drivers 13th month pay. Legally, 13th month pay is not due to managerial employees. Nov 25, 2024 · Is the Christmas bonus taxed in the Philippines? Yes, the Christmas bonus is taxed if it exceeds the ₱90,000 tax-free limit for bonuses and benefits, as set by Philippine tax laws. Any amount above ₱90,000 will be taxed based on your regular income tax rate. Can freelance or contractual workers receive a Christmas bonus? Nov 3, 2016 · The Department of Labor and Employment (DOLE) on Thursday reminded employers that the law on 13th month pay covers house helpers and workers of small businesses.

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