Guide on the 13th Month Pay, Christmas Bonus – What Makes them Different
13TH MONTH PAY VS. CHRISTMAS BONUS – Here is a guide on the differences between these two (2) pays usually given every December.
Every December, most employees are excited to receive extra pay apart from their monthly salary. This extra pay includes the 13th month pay and may also include a Christmas bonus. The workers have a variety of priorities when it comes to this extra pay.
While most employees really want to save, there are undeniably other factors that would take slices from the amount received every December. Many workers take the extra pay as a chance to pay off the outstanding loans to save from future interests. Others also make sure that all the utility bills are paid.
Truth be told that the month of December or the holiday season brings along with it extra expenses. Celebrations are left and right thus spending on food is not like the usual expenses. Gift-givings may also take a slice from the budget.
Many people are wondering if the 13th month pay and the Christmas bonus are exactly the same pay. Truth be told that some individuals take these two (2) extra pay as one but the truth is that they are different.
Based on an article on ABS-CBN News, the 13th month pay is mandated by the law by virtue of Presidential Decree No. 851 which orders all private-sector employers to give their rank-and-file employees the said pay. There is a computation intended for this pay.
With regards to the Christmas bonus, it is not mandated by law and is given to employees voluntarily out of the generosity of the employer. Also, there is no specific amount for this as it solely depends on the company or the employers.
You may also visit – How To Compute your 13th Month Pay