THE National Wages and Productivity Commission (NWPC) yesterday reminded the public that the 13th month pay must not be confused with the Christmas bonus being provided to workers.
In a social media post, the NWPC reminded workers that the two benefits cannot be interchanged, saying one is required by law while the other is not.
“The law definitely requires employers to pay their rank-and-file employees the 13th month pay,” said the NWPC.
“The generous granting of a Christmas bonus, on the other hand, remains, basically, a management prerogative,” it added.
The NWPC issued the reminder after getting such questions in its social media pages.
To recall, Presidential Decree No. 851 requires all employers in the private sector to give their employees 13th month pays.
The minimum 13th-month pay shall not be less than one-twelfth (1/12) of the total basic salary earned by an employee within a calendar year.
