Revised Guidelines on the Implementation of the 13th Month Pay Law

November 16, 1987REVISED GUIDELINES ON THE IMPLEMENTATION OF THE 13TH MONTH PAY LAW1. Removal of Salary Ceiling.On August 13, 1986, President Corazon C. Aquino issued Memorandum Order No. 28 which provides as follows:"Section 1 of Presidential Decree No. 851 is hereby modified to the extent that all employers are hereby required to pay all their rank-and-file employees a 13th month pay not later than December 24 of every year."Before its modification by the aforecited Memorandum Order, P.D. No. 851 excludes from entitlement to the 13th month pay those employees who were receiving a basic salary of more than P1,000.00 a month. With the removal of the salary ceiling of P1,000.00, all rank and file employees are now entitled to a 13th month pay regardless of the amount of basic salary that they receive in a month if their employers are not otherwise exempted from the application of P.D. No. 851. Such employees are entitled to the benefit regardless of their designation or employment status, and irrespective of the method by which their wages are paid,...