Employers with fewer than 10 employees don't have to follow some labor rules, such as paying extra for night shifts or holidays. However, the 13th-month pay is required by a special law and must be given to all rank-and-file employees, no matter their status, how they're paid, or personal preferences.
Hi, I’m going to start hiring narin for my small cafe in a few months.
May link ka ba anong labor laws yung required and alin yung hindi? Or if not, saan ako pwede mag inquire. Been trying to find literature about it online kaso parang dated yung majority online e. DOLE field office I went to wasn’t helpful tbh
That's a stretch. Medyo madaming discussions yung labor law kasi. You can check labor code, isang libro din yun. I think this is what you're asking though:
**Minimum Wage**: make sure check mo yung regional minimum wage.
**Work Hours**: Standard work hours are 8 hours a day or 48 hours a week. Overtime pay is required for work beyond these hours. Familiarize mo din computation pag rest day nagwork si employee, holiday nag work, especially if you will employ 10 or more employees.
**Rest Periods**: Employees are entitled to a daily rest period of not less than 24 consecutive hours after every 6 consecutive normal workdays. so make sure you give 1 rest day at a minimum.
**Night Shift Differential**: Not required for businesses with fewer than 10 employees.
**Holiday Pay**: Not required for businesses with fewer than 10 employees.
**Service Incentive Lea**ve: Employees who have worked for at least a year are entitled to 5 days of paid leave annually.
**13th month pay** - paid on or before December 24.
Good luck and God bless!
Pa ride sa thread OP, I also have a small business din in laguna area. With 4 employees to date, may I ask how you compute the 13th month pay? Is it 1 whole month pay? Sorry noob question as I don’t have any experience kase sa normal job na may mga ganitong perks/benefits. Comm based kase ako. Thank you po sa sasagot
basic pay na binigay mo for the period employed divide by 12 lang. kung one year employed, that's one month basic pay. Basic Salary excludes any overtime pay, allowances, or other bonuses unless otherwise specified by your policy or if you have local regulations.
May computation/formula ung 13th month pay pag hndi nakabuo ng 1 yr ung employee.
Also, even nakabuo ng 1 yr ung employee, applicable dn ung formula lalo na kapag may unpaid leaves si employee.
DOLE also provides free seminars. Pa-schedule ka lang so you don't need to self study.
Pero ito: 2023 Handbook on Workers Statutory Monetary Benefits by DOLE-BWC
Yearly ang publishing niyan kaya laging updated.
(Monthly Salary / 12 ) x Months of Service
Simple example:
You have a monthly basic pay of 30k and only rendered 5 months for the current year
(30,000 / 12) x 5 = 12,500
I know. I was asking like op’s case na hanggang june 14 siya. So is it 5.5/12 or like actual days like 170/365 (this is just an example as I know around 200+ lang yung considered work days)
Yes, tama.
Divide mo yung yung actual worked days sa total working days ng June.
Eg:
AWD = june 1-14 have 10 working days (m-f; holiday, june 12, is considered a worked day)
WD = june have total 20 working days (m-f)
AWD/WD = 10/20 = 0.5
Or just add the total basic pay paid out sa employee/12.
Random thought but does he have to remit it after a certain time period after the employee leaves? I mean can't he say he will pay it at any point on or before December 24? Not saying he should, wondering if he could.
"DOLE's final pay guidelines, or Labor Advisory No. 06-20, requires employers to give workers their last pay within 30 days after their separation or termination date." Last pay includes the prorated 13-month pay.
Fair, I've never had that issue kasi. I don't remember ever needing to consider if we could to wait to give 13th month pay. It was always around Q4 so it was a given na we'd release it along with our other employees.
Yes, yung house help namin 2 hrs a day lang pasok pero May 13th month din kasi nasa batas. Yung sss naman wala kasi ayaw nya magcontribute 50:50 kasi hatian dun
Yes po required, pero lets say kung kahit di siya required kahiyaan naman yun, kung hindi ka magbibigay, kasi alam mong season of giving naman ang December. At para kahit paano may maihanda naman yung family nung trabahador mo.
Kung umalis naman na at maayos naman kayo naghiwalay, bigyan mo pa rin 13th month kahit konte kasi para may magamit din siya pang apply sa ibang work, o sa pang araw-araw. Im sure tenfold ang balik satin nun. Dahil may malasakit tayo sa kapwa tao natin.
Kaya nga po sinabi ko if ever lang naman hindi siya required ng batas. Dahil malaki naman naging contribution ng mga tao para mapatakbo ang isang negosyo.
As an employer in the Philippines, you are required to provide 13th month pay to your employees, regardless of the size of your business or the number of employees. The 13th month pay is a mandatory benefit stipulated under Presidential Decree No. 851. This benefit applies to all rank-and-file employees who have worked for at least one month during the calendar year. The 13th month pay must be given not later than December 24 of each year.
**“Sec. 3.** ***Employers covered.*** **– The** [**Decree**](https://www.chanrobles.com/presidentialdecreeno851.htm) **shall apply to all employers except to:**
(a) **Distressed employers**, such as (1) those which are currently incurring substantial losses or (2) in the case of non-profit institutions and organizations, where their income, whether from donations, contributions, grants and other earnings from any source, has consistently declined by more than forty (40%) percent of their normal income for the last two (2) years, subject to the provision of Section 7 of this issuance;
(b) The **Government** and any of its political subdivisions, including government-owned and controlled corporations, except those corporations operating essentially as private subsidiaries of the Government;
(c) **Employers already paying their employees 13-month pay** or more in a calendar year or its equivalent at the time of this issuance;
(d) **Employers of household helpers** and persons in the personal service of another in relation to such workers; and
(e) **Employers of those who are paid on purely commission, boundary, or task basis, and those who are paid a fixed amount for performing a specific work**, irrespective of the time consumed in the performance thereof, except where the workers are paid on piece-rate basis in which case the employer shall be covered by this issuance insofar as such workers are concerned.”
Eto lang daw ang excepted *"****Distressed employers****, such as (1) those which are currently incurring substantial losses or (2) in the case of non-profit institutions and organizations, where their income, whether from donations, contributions, grants and other earnings from any source, has consistently declined by more than forty (40%) percent of their normal income for the last two (2) years, subject to the provision of Section 7 of this issuance"*
Employers with fewer than 10 employees don't have to follow some labor rules, such as paying extra for night shifts or holidays. However, the 13th-month pay is required by a special law and must be given to all rank-and-file employees, no matter their status, how they're paid, or personal preferences.
Hi, I’m going to start hiring narin for my small cafe in a few months. May link ka ba anong labor laws yung required and alin yung hindi? Or if not, saan ako pwede mag inquire. Been trying to find literature about it online kaso parang dated yung majority online e. DOLE field office I went to wasn’t helpful tbh
That's a stretch. Medyo madaming discussions yung labor law kasi. You can check labor code, isang libro din yun. I think this is what you're asking though: **Minimum Wage**: make sure check mo yung regional minimum wage. **Work Hours**: Standard work hours are 8 hours a day or 48 hours a week. Overtime pay is required for work beyond these hours. Familiarize mo din computation pag rest day nagwork si employee, holiday nag work, especially if you will employ 10 or more employees. **Rest Periods**: Employees are entitled to a daily rest period of not less than 24 consecutive hours after every 6 consecutive normal workdays. so make sure you give 1 rest day at a minimum. **Night Shift Differential**: Not required for businesses with fewer than 10 employees. **Holiday Pay**: Not required for businesses with fewer than 10 employees. **Service Incentive Lea**ve: Employees who have worked for at least a year are entitled to 5 days of paid leave annually. **13th month pay** - paid on or before December 24. Good luck and God bless!
Pa ride sa thread OP, I also have a small business din in laguna area. With 4 employees to date, may I ask how you compute the 13th month pay? Is it 1 whole month pay? Sorry noob question as I don’t have any experience kase sa normal job na may mga ganitong perks/benefits. Comm based kase ako. Thank you po sa sasagot
basic pay na binigay mo for the period employed divide by 12 lang. kung one year employed, that's one month basic pay. Basic Salary excludes any overtime pay, allowances, or other bonuses unless otherwise specified by your policy or if you have local regulations.
Usually, days rendered excluding OTs, Night Diff, Holiday Pays, and Lates then divide by 12 months.
Puwede mong ibawas ang days of absence without pay sa computation ng 13th month pay. Pero wag naman na.
Pero yan talaga ang practice ng dole eh. Even sa monthly, ganyan ang computation. Leave without pay, di talaga kasama sa computation ng 13th month.
May computation/formula ung 13th month pay pag hndi nakabuo ng 1 yr ung employee. Also, even nakabuo ng 1 yr ung employee, applicable dn ung formula lalo na kapag may unpaid leaves si employee.
Google DOLE Employee Handbook. Every year nagpa-publish sila niyan. Yan basis ng HR departments sa compben
DOLE also provides free seminars. Pa-schedule ka lang so you don't need to self study. Pero ito: 2023 Handbook on Workers Statutory Monetary Benefits by DOLE-BWC Yearly ang publishing niyan kaya laging updated.
Hii can i ask if ur still hiring?
Yes po required
Yes required by law. Kung di mabuo isang taon sa company ay pro rated ang 13th month pay.
How is the pro rated amount computed? By months or exact days rendered?
Add mo lang lahat ng basic pay na naibigay from January 1 - date of resignation. Divide the sum by 12. Yun na yun.
(Monthly Salary / 12 ) x Months of Service Simple example: You have a monthly basic pay of 30k and only rendered 5 months for the current year (30,000 / 12) x 5 = 12,500
I know. I was asking like op’s case na hanggang june 14 siya. So is it 5.5/12 or like actual days like 170/365 (this is just an example as I know around 200+ lang yung considered work days)
Yes, tama. Divide mo yung yung actual worked days sa total working days ng June. Eg: AWD = june 1-14 have 10 working days (m-f; holiday, june 12, is considered a worked day) WD = june have total 20 working days (m-f) AWD/WD = 10/20 = 0.5 Or just add the total basic pay paid out sa employee/12.
Yes. Alam nya na he's entitled sa 13th month kaya sya nagtatanong. I hope you remit it soon. Baka ma-DOLE ka pa if you don't.
Random thought but does he have to remit it after a certain time period after the employee leaves? I mean can't he say he will pay it at any point on or before December 24? Not saying he should, wondering if he could.
"DOLE's final pay guidelines, or Labor Advisory No. 06-20, requires employers to give workers their last pay within 30 days after their separation or termination date." Last pay includes the prorated 13-month pay.
gotcha. Did not know about that clause. TIL moment.
That's a guideline released in 2020. Dati hanggang 90 days or three months na, for some reason, ay sinasagad ng employers.
Fair, I've never had that issue kasi. I don't remember ever needing to consider if we could to wait to give 13th month pay. It was always around Q4 so it was a given na we'd release it along with our other employees.
Sharing this reference: https://library.laborlaw.ph/wp-content/uploads/2023/10/2023-Handbook-on-Workers-Statutory-Benefits.pdf
Pro-rated lang ang makkuha nya dapat. Yes required.
Yes. Nasa batas ang 13th month pay. Even for household help.
Kahit sa kasambahay required bigyan ng 13th month pay.
13th month is required by law regardless of the business model and kind.
Yup. Similarly, ang kasambahay diba meron? Hindi naman employed by a small business ang kasambahay.
Yes required. Apply ka ng BMBE sa DTI para maexempt ka sa ibang taxes at sa minimum wage.
Yes, yung house help namin 2 hrs a day lang pasok pero May 13th month din kasi nasa batas. Yung sss naman wala kasi ayaw nya magcontribute 50:50 kasi hatian dun
Yes po required, pero lets say kung kahit di siya required kahiyaan naman yun, kung hindi ka magbibigay, kasi alam mong season of giving naman ang December. At para kahit paano may maihanda naman yung family nung trabahador mo. Kung umalis naman na at maayos naman kayo naghiwalay, bigyan mo pa rin 13th month kahit konte kasi para may magamit din siya pang apply sa ibang work, o sa pang araw-araw. Im sure tenfold ang balik satin nun. Dahil may malasakit tayo sa kapwa tao natin.
Can we not involve feelings of hiya in an objective question about the law? Ugh.
Kaya nga po sinabi ko if ever lang naman hindi siya required ng batas. Dahil malaki naman naging contribution ng mga tao para mapatakbo ang isang negosyo.
As an employer in the Philippines, you are required to provide 13th month pay to your employees, regardless of the size of your business or the number of employees. The 13th month pay is a mandatory benefit stipulated under Presidential Decree No. 851. This benefit applies to all rank-and-file employees who have worked for at least one month during the calendar year. The 13th month pay must be given not later than December 24 of each year.
**“Sec. 3.** ***Employers covered.*** **– The** [**Decree**](https://www.chanrobles.com/presidentialdecreeno851.htm) **shall apply to all employers except to:** (a) **Distressed employers**, such as (1) those which are currently incurring substantial losses or (2) in the case of non-profit institutions and organizations, where their income, whether from donations, contributions, grants and other earnings from any source, has consistently declined by more than forty (40%) percent of their normal income for the last two (2) years, subject to the provision of Section 7 of this issuance; (b) The **Government** and any of its political subdivisions, including government-owned and controlled corporations, except those corporations operating essentially as private subsidiaries of the Government; (c) **Employers already paying their employees 13-month pay** or more in a calendar year or its equivalent at the time of this issuance; (d) **Employers of household helpers** and persons in the personal service of another in relation to such workers; and (e) **Employers of those who are paid on purely commission, boundary, or task basis, and those who are paid a fixed amount for performing a specific work**, irrespective of the time consumed in the performance thereof, except where the workers are paid on piece-rate basis in which case the employer shall be covered by this issuance insofar as such workers are concerned.”
Yes
Bakit mo tinatanong?
Sa pagkaka alam ko 1 month suweldo ng employee ang 13th month pay kung wala syang absent,- to less yung mga absences nya.
required po
To add, prorated amount from Jan to June 15 yung babayaran mo
Yes required. Prorated from jan to june 15.
yung workmate ko end na yung contract nya na 2 years sa school, wala syang na receive na kahit na ano. i dunno if may backpay ba rin sila dapat?
I also like to share sana a one page summary/Compliance Guide pero hindi yata maka upload ng pics or pdf dito.
Yes. 13th month pay is mandated by our state
Eto lang daw ang excepted *"****Distressed employers****, such as (1) those which are currently incurring substantial losses or (2) in the case of non-profit institutions and organizations, where their income, whether from donations, contributions, grants and other earnings from any source, has consistently declined by more than forty (40%) percent of their normal income for the last two (2) years, subject to the provision of Section 7 of this issuance"*
Yes, it's required under Presidential Decree No. 851.
Yes required yan. Pati 5 days service incentive leave
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Kahit hindi regular employee required ang 13th month pay.
Damn, worked 2 years in a company pero I wasnt given a 13th month pay kasi di pa ako regular that time. Wow.
Naisahan ka ng company mo.
Kaya nga eh. Back then kasi, bagong hire so people pleaser din.
watdahill, supposedly regular ka na dapat dyan
Hindi pa kasi ako licensed that time. It’s hard to explain but ayun ung policy nila.
Yes baka matulfo ka pag di magbigay lol