Press Release
November 14, 2018


Workers from both public and private sectors will be getting bigger 13th month pay and Christmas bonuses because of the law that raised the tax exemption cap of bonuses and benefits.

Beginning this year, pursuant to Republic Act 10963, the 13th month pay and other benefits, including productivity incentives and Christmas bonuses, are exempted from tax if they do not exceed P90,000.

"Buong-buo nang maiuuwi ng mga empleyado ang kanilang bonus sa kani-kanilang pamilya. Tiyak na makadaragdag ito sa kanilang panggastos para sa pagdiriwang ng Pasko at bagong taon," Senator Sonny Angara said.

Angara is also responsible for the law that raised the tax exemption of 13th month pay and other benefits to P82,000 in 2015.

Before RA 10653 was signed into law three years ago, only bonuses not exceeding P30,000 were tax-exempt.

According to the Department of Budget and Management, government workers will receive their 13th month pay starting November 15.

Meanwhile, for private sector employees, the 13th month pay should be given not later than December 24.

The 13th month pay must be equivalent to one-twelfth (1/12) of the basic salary of an employee within a calendar year.

The senator reminded employers that they must pay their rank-and-file employees a 13th month pay regardless of the nature of their employment and whatever the method their wages are paid, provided they worked for at least one month during a calendar year.

"Hindi lamang mga regular na empleyado ang dapat makakuha ng 13th month pay. Kahit mga contractual, casual, fixed term, probationary, seasonal employees ay dapat din makatanggap ayon sa ating Labor Code," said Angara, a champion of labor reforms that ensure decent jobs in the country.

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