13th Month Pay Law
Presidential Decree No. 851, issued on December 16, 1975, mandates that all employers in the Philippines must pay their employees a 13th-month pay if their basic salary is not more than P1,000 per month. This requirement aims to protect workers' real wages from inflation and to enable them to celebrate the Christmas season adequately. Employers who already provide a 13th-month pay or its equivalent are exempt from this decree. The decree took effect immediately upon its issuance.
Law Information
- Reference Number
- Presidential Decree No. 851
- Date Enacted
- Category
- Presidential Issuances
- Subcategory
- Presidential Decrees
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
December 16, 1975
PRESIDENTIAL DECREE NO. 851
REQUIRING ALL EMPLOYERS TO PAY THEIR EMPLOYEES A 13TH MONTH PAY
WHEREAS, it is necessary to further protect the level of real wages from the ravage of world-wide inflation;
WHEREAS, there has been no increase in the legal minimum wage rates since 1970;
WHEREAS, the Christmas season is an opportune time for society to show its concern for the plight of the working masses so they may properly celebrate Christmas and New Year.
NOW, THEREFORE, I, FERDINAND E. MARCOS, by virtue of the powers vested in me by the Constitution do hereby decree as follows: cdt
SECTION 1. All employers are hereby required to pay all their employees receiving a basic salary of not more than P1,000 a month, regardless of the nature of their employment, a 13th-month pay not later than December 24 of every year.
SECTION 2. Employers already paying their employees a 13th-month pay or its equivalent are not covered by this Decree.
SECTION 3. This Decree shall take effect immediately.
Done in the City of Manila, this 16th day of December 1975.
Cite This Law
13th Month Pay Law, Presidential Decree No. 851, Dec 16, 1975 (Philippines)
13th Month Pay Law, Presidential Decree No. 851 (Phil. 1975)
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