13th Month Pay is NOT a Bonus
Many employees have received their so-called 13th month pay. To them it is a bonus. Look back into the labor code and you will find that it is actually a requirement and is really part of your entire compensation package. The 13th month pay is computed by dividing your monthly salary by 12 months. The value you get from that is actually something that should be included in your regular pay check.
A bonus is something given outside that of the 13th month. It does not necessarily have to be at the same rate as your monthly salary and depends entirely on what the company intends to give you. Now that is the part that is not covered by labor laws as it is entirely voluntary and left to the jurisdiction of the company.
So before you stand up and jump for joy, understand what a 13th month pay really is. This early you should already know that it is not a bonus and is actually something due to you.
Technorati Tags: compensation_package, labor_laws, 12_months, jurisdiction, salary, bonus, labor_code
November 4th, 2008 at 10:51 am
[…] some who will come out eventually. Some don’t have the money to shed as they don’t have their salaries or 13th month pay yet. On that aspect, the intent to buy gifts will be divided as people want to make sure that they […]
December 14th, 2008 at 11:06 pm
Technically, if you are working here in the Philippines, 13th month maybe considered as part of your bonus. I am currently writing an article about this and maybe later you can visit my site for more detailed explanation. It’s www.bloodboiler.blogspot.com