13th Month Pay vs. Christmas Bonus: Are They Given Out As One Or Not?

What is the difference of 13th Month Pay and Christmas Bonus?

13TH MONTH PAY – Here are some of the things that you must know about 13th month pay and Christmas and how these two are given.

The favorite season of everyone is fast approaching and despite the adversities that year 2020 has brought everyone, people are still choosing to see the silver lining in every situation. And as for employees, what they are surely looking forward to in December of every year is their 13th month pay and the Christmas bonus.

13th Month Pay

(See also: DTI Offers P4 Billion Loans To MSEs For 13th Month)

However, are these two pays the same or given to employees differently? What is the difference of 13th month pay to the Christmas bonus? How much is given to employees and how are these calculated?

13th month pay is an extra payment to workers in the Philippines in December that became a law in 1975 which means that this monetary benefit is mandatory by law. The amount of this is the one-twelfth (1/12) of the basic salary of the employee in a year. Usually, this is given before December 24.

(See also: DOLE Plans To Give Subsidy To Small Businesses To Help in Employees’ 13th Month)

Meanwhile, the Christmas bonus is given at the discretion of the employer. Technically, these two things are entirely different from each other. The 13th month benefit is something that employees are entitled to have while the Christmas bonus is given out of the generosity of their employer. It does not have any standards for computation.

To some companies, the bonus is taken out voluntarily by the employers to show appreciation or gratitude to the employees. In short, Christmas bonus is not mandated by law.

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