13th Month Pay
Employment
A mandatory extra payment given to rank-and-file employees in the Philippines, equal to one-twelfth of the basic salary earned within a calendar year. Employers must release it on or before December 24. It is separate from a Christmas bonus, which is voluntary. Even resigned or terminated workers are entitled to a pro-rated amount based on months worked. The first portion (currently up to a set threshold) is tax-exempt. It applies regardless of the employee's designation or how wages are paid, subject to the latest rules/guidelines.
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