Christmas is just around the corner and speaking of Christmas, one of the first things that comes in an employees mind is the Christmas bonus or/and the 13th month pay. Christmas bonus is different from 13th month pay for some companies but for those who are relatively small and can provide only the minimum benefits required by the law, 13th month pay and Christmas bonus stands the same.
The law governing the 13th month pay is Presidential Decree No. 851 supported by various implementing rules, supplementary rules and guidelines. For ease of understanding, following are some frequently asked questions regarding 13th month pay and their corresponding answers coming from the Department of Labor and Employment, supplemented by our thoughts on it:
The Social Security System (SSS) has issued a new shedule of Social Security (SS) and Employees’ Compensation (EC). This new schedule of contribution is effective starting the applicable month of January 2014. Please check the new contribution table below. Continue reading
Finally, the Ten (10)-peso increase in minimum wage in Metro Manila (wage hike) has now issued with Wage Order No. NCR-18 which will take effect on October 4, 2013. The Regional Tripartite Wages and Productivity Board (RTWPB) of the National Wages and Productivity Commission has finally posted the minimum wage in their website.
The issuance of this wage order is long awaited by employers to determine when should they comply as well as employees to know when will they receive their increases. Recall that On September 6, 2013, the internet and all other media is shocked by the announced increase in minimum wages and public has a mixed reaction about the matter. Others say “it is a joke” and others say “better than never”. Continue reading
Have you ever wondered, of the total number of employed individuals in the Philippines, what is the percentage of minimum wage earners? Let’s include those earning less than the minimum, what will the figures be?
Ever wondered how many employees were celebrating everytime they know that a new wage order has been passed increasing the minimum wage rate and how may of them are frustrated knowing that such increase is just “n%” of their current salary and didn’t even feel that there is an increase at all? Continue reading
The Regional Tripartite Wage and Productivity Board of the National Capital Region (RTWPB-NCR) has approved a P10 increase in the minimum wage in Metro Manila. The Wage Order to implement this increase in minimum wage is yet to be issued by the RTWPB-NCR. The Wage Order will be issued 10 days from its publication and will be effective 15 days after its publication in a newspaper of general circulation.
Update: The Regional Tripartite Wages and Productivity Board has issued Wage Order No. NCR-18 effective October 4, 2013, Click Here.
The minimum wage is composed of the basic wage and cost of living allowance (COLA). COLA is distinguished component of the minimum wage as it is NOT considered in the computation of the 13th month pay. Currently, the minimum wage is P456 which consists of P426 basic wage and P30 COLA, effective November 1, 2012. See Wage Order No. 17 & RMC No. 76-2012: Daily Minimum Wage Rates in the National Capital Region for the older wage order.
The approved increase in minimum wage by the RTWPB-NCR will have the following effect: Continue reading
Pursuant to PhilHealth Circular No. 057, series of 2012 issued by the Philippine Health Insurance Corporation, the following table will be used in determining the PhilHealth premium contributions of employer and employee: Continue reading
Wage Order No. 17 was issued on May 17, 2012 to providing a Cost of Living Allowance (COLA) and integrating the existing COLA of P22.00 into the basic wage in the National Capital Region (NCR). This wage order effectively increased the minimum wage in the NCR. Effective June 3, 2012, following were changes made to the daily minimum wage rates: