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Oct 21, 2024 · While many workers yearn for a Christmas bonus, a lawyer explained that employers are not required to give this to them, as only the 13th month pay is mandatory under the law. In a video, abogado Myra Rivera-Caroy said that a 13th month pay is required to be given to employees under Presidential Decree 851. Nov 14, 2024 · Key differences between the 13th-month pay and Christmas bonuses. The 13th-month pay is a legal requirement, calculated based on an employee’s annual salary, while Christmas bonuses are voluntary and vary in amount and structure. Some companies provide both, but only the 13th-month pay is guaranteed by law. Practical tips for employers 6 days ago · Comprehensive Discussion on Bonuses and 13th Month Pay under Philippine Labor Law. 1. Legal Foundations and Relevant Statutes. Labor Code of the Philippines (P.D. No. 442, as amended): Establishes the general framework for labor standards, including wages, though it does not itself create the obligation to pay a 13th month salary. Apr 25, 2024 · Thus, the employer is justified in crediting the mid-year bonus and Christmas bonus as part of the 13 th month pay.” 4. Non-diminution of benefits. If a bonus is demandable, then it is subject to the rule on non-diminution of benefits. Eastern Telecommunications Philippines, Inc. v. Eastern Telecoms Employees Union, February 2012 Nov 22, 2023 · The distinction between the 13th-month pay and the Christmas Bonus is significant for Filipino employees. Apart from the joyous celebration of Christmas, the anticipation of the annual guaranteed 13th-month pay bonus adds to the festive spirit, applicable even to foreign employees with valid working visas in the Philippines. 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 Nov 25, 2024 · 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. 4 days ago · Unlike the mandatory 13th month pay, Christmas bonuses are not required by law and vary by employer. These bonuses fall under the same PHP90,000 tax-exempt cap for benefits. If the total amount of the 13th-month pay and Christmas bonus combined exceeds PHP90,000, the surplus becomes taxable. Nov 1, 2024 · In the Philippines, the end-of-year period often brings additional compensation for employees, most notably through the 13th month pay and, in some cases, a Christmas bonus. While these are often seen as interchangeable, they have distinct definitions and requirements under Philippine labor laws. In this article, we’ll explore what 13th month ...

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