Dole Explanatory Bulletin on the Inclusion of Teachers' Overload Pay in 13th Month Pay Determination

December 3, 1993DOLE EXPLANATORY BULLETIN ON THE INCLUSION OF TEACHERS' OVERLOAD PAY IN 13TH MONTH PAY DETERMINATIONThis Bulletin is issued in response to the numerous queries received by this Department in whether the payment for overload teaching hours should be considered part of the teacher's basic pay for purpose of computing their 13th month pay.1. Basis of the 13th month pay computationThe revised Implementing Guidelines of the 13th Month Pay Law (P.D. 851 as amended) provides that an employee shall be entitled to not less than 1/12 of the total basic salary earned within a calendar year. For the purpose of computing such entitlement the basic wage of an employee shall include: digest". . . all remunerations or earnings paid by his employer for services rendered but do not include allowances or monetary benefits which are not considered or integrated as part of the regular or basic salary, such as the cash equivalent of unused vacation and sick leave credits, overtime, premium, night differential and holiday pay, and cost-of-living allowances. However, these salary-related benefits should...