Topic 11: Other Special Benefits

13th month pay

PD 851, as amended (Revised Guidelines on Implementation of PD 851)
"Section 1 of Presidential Decree No. 851 is hereby modified to the extent that all employers are hereby required to
pay all their rank-and-file employees a 13th month pay not later than December 24 of every year."
- Before its modification by the aforecited Memorandum Order, P.D. No. 851 excludes from entitlement to the
13th month pay those employees who were receiving a basic salary of more than P1,000.00 a month. With the
removal of the salary ceiling of P1,000.00, all rank and file employees are now entitled to a 13th month pay
regardless of the amount of basic salary that they receive in a month if their employers are not otherwise
exempted from the application of P.D. No. 851. Such employees are entitled to the benefit regardless of their
designation or employment status, and irrespective of the method by which their wages are paid, provided
that they have worked for at least one (1) month during a calendar year. (REVISED GUIDELINES ON THE
IMPLEMENTATION OF THE 13TH MONTH PAY LAW.)
Exempted Employers:
a) Government and any of its political subdivisions including GOCCs
b) Employers already paying their employees a 13th month pay or its equivalent
c) Employers of household helpers and persons in the personal service of another in relation to such workers
d) Employer of those who are paid on purely commission, boundary or task basis and those who are paid a
fixed amount for performing specific work.
- The "basic salary" of an employee for the purpose of computing the 13th month pay shall include all
remunerations or earning paid by this employer for services rendered but does not include allowances and
monetary benefits which are not considered or integrated as part of the regular or basic salary, such as the cash
equivalent of unused vacation and sick leave credits, overtime, premium, night differential and holiday pay, and
cost-of-living allowances. However, these salary-related benefits should be included as part of the basic salary in
the computation of the 13th month pay if by individual or collective agreement, company practice or policy, the
same are treated as part of the basic salary of the employees.
Amount and payment of 13th Month Pay (Revised Guidelines on Implementation of PD 851)
(a) Minimum of the Amount. The minimum 13th month pay required by law shall not be less than one-twelfth
of the total basic salary earned by an employee within a calendar year.

- Earned because it is possible that the employee has used his vacation leave, leave without pay which
should not be counted. The employer can provide for more if he so desire.
(b) Time of Payment. The required 13th month pay shall be paid not later than December 24 of each
year.
An employer, however, may give to his employees one half () of the
required 13th month
pay before the opening of the regular school year and the other half on
before the 24th of December of every
year.
The frequency of payment of this monetary
benefit may be the subject of agreement between the
employer and
the recognized/collective bargaining agent of the employees.
- In any establishment where a union has been recognized or certified as the collective bargaining agent
of the employees therein, the periodicity or frequency of payment of the 13 th month pay may be the subject
of agreement.
13th Month Pay of Resigned or Separated Employee
An employee who has resigned or whose services were terminated at any time before the time for
payment of the 13th month pay is entitled to this monetary benefit in proportion to the length of time
he worked during the year, reckoned from the time he started working during the calendar year up to
the time of his resignation or termination from the service. Thus, if he worked only from January up to
September his proportionate 13th month pay should be equivalent of 1/12 his total basic salary he

earned during that period.

The payment of the 13th month pay may be demanded by the employee upon the cessation of
employer-employee relationship. This is consistent with the principle of equity that as the employer
can require the employee to clear himself of all liabilities and property accountability, so can the
employee demand the payment of all benefits due him upon the termination of the relationship.
13th Month Pay for Certain Types of Employees.
(a) Employees Paid by Results. Employees who are paid on piece work basis are by law entitled
to the
13th month pay.
Employees who are paid a fixed or guaranteed wage plus commission are also entitled to the
mandated 13th month pay, based on their total earnings during the calendar year, i.e., on both their
fixed or guaranteed wage and commission.
- Only those who work in a piece-rate basis are entitled
(b) Those with Multiple Employers. Government employees working part time in a private
enterprise,
including private educational institutions, as well as employees working in two or more
private firms,
whether on full or part time basis, are entitled to the required 13th month pay
from all their private
employers regardless of their total earnings from each or all their employers.
(c) Private School Teachers. Private school teachers, including faculty members of universities
and
colleges, are entitled to the required 13th month pay, regardless of the number of months they
teach or are
paid within a year, if they have rendered service for at least one (1) month within a
year.
Adjudication of Claims
Non-payment of the 13th month pay provided by the Decree and these rules shall be treated as money
claims cases and shall be processed in accordance with the Rules Implementing the Labor Code of the
Philippines and the Rules of the National Labor Relations Commission.
Note: 13th month pay is tax exempt
Paternity Leave Act
RA 8187: AN ACT GRANTING PATERNITY LEAVE OF SEVEN (7) DAYS WITH FULL PAY TO ALL
MARRIED MALE EMPLOYEES IN THE PRIVATE AND PUBLIC SECTORS FOR THE FIRST FOUR (4)
DELIVERIES OF THE LEGITIMATE SPOUSE WITH WHOM HE IS COHABITING AND FOR OTHER
PURPOSES.
SECTION 2. Notwithstanding any law, rules and regulations to the contrary, every married male
employee in the private and public sectors shall be entitled to a paternity leave of seven (7) days with full
pay for the first four (4) deliveries of the legitimate spouse with whom he is cohabiting. The male employee
applying for paternity
leave shall notify his employer of the pregnancy of his legitimate spouse and the
expected date of such delivery.
For purposes, of this Act, delivery shall include childbirth or any miscarriage.
SECTION 5. Any person, corporation, trust, firm, partnership, association or entity found violating this
Act or the rules and regulations promulgated thereunder shall be punished by a fine not exceeding Twentyfive thousand
pesos (P25,000) or imprisonment of not less than thirty (30)days nor more than six (6)

months.
If the violation is
committed by a corporation, trust or firm, partnership, association or any other
entity, the penalty of imprisonment shall be imposed on the entity's responsible officers, including, but not
limited to, the president, vice-president, chief executive officer, general manager, managing director or
partner directly responsible therefor.
Revised Implementing Rules, s. 1996
SECTION 3. Conditions to entitlement of paternity leave benefits. A married male employee shall be
entitled to paternity benefits provided that:
a. he is an employee at the time of delivery of his child;
b. he is cohabiting with his spouse at the time she gives birth or suffers a miscarriage.
c. he has applied for paternity leave in accordance with Section 4 hereof; and
d. his wife has given birth or suffered a miscarriage.
SECTION 4. Application for leave. The married male employees shall apply for paternity leave with his
employer within a reasonable period of time from the expected date of delivery by the pregnant spouse, or
within such period as may be provided by company rules and regulations or by collective bargaining
agreement, provided that prior
application for leave shall not be required in case of miscarriage.
SECTION 5. Availment. Paternity leave benefits shall be granted to the qualified employee after the
delivery by his wife, without prejudice to an employer allowing an employee to avail of the benefit before or
during the delivery; provided, that the total number of days shall not exceed seven (7) days for each delivery.
SECTION 6. Benefits. The employee is entitled to his full pay, consisting of basic salary, for the seven
(7) days
during which he is allowed not to report for work, provided, that his pay shall not be less than the
mandated minimum wage.
SECTION 7. Non-commutation of benefits. In the event that paternity leave benefit is not availed of,
said leave shall not be convertible to cash.
Note: Maternity benefits is under the Social Security Act
Domestic Adoption Act of 1998
RA 8552: AN ACT ESTABLISHING THE RULES AND POLICIES ON THE DOMESTIC ADOPTION OF
FILIPINO CHILDREN AND FOR OTHER PURPOSES
Section 12. Supervised Trial Custody. No petition for adoption shall be finally granted until the adopter(s)
has been given by the court a supervised trial custody period for at least six (6) months within which the parties
are expected to adjust psychologically and emotionally to each other and establish a bonding relationship.
During said period, temporary parental authority shall be vested in the adopter(s).
The court may motu proprio or upon motion of any party reduce the trial period if it finds the same to
be in the best interest of the adoptee, stating the reasons for the reduction of the period. However, for alien
adopter(s), he/she must complete the six (6)-month trial custody except for those enumerated in Sec. 7 (b)
(i) (ii) (iii).
If the child is below seven (7) years of age and is placed with the prospective adopter(s) through a preadoption placement authority issued by the Department, the prospective adopter(s) shall enjoy all the
benefits to which biological parent(s) is entitled from the date the adoptee is placed with the prospective
adopter(s).

Implementing Rules and Regulations of RA 8552

SECTION 34. Benefits. the adoptive parents shall, with respect to the adopted child, enjoy all the
benefits to which
biological parents are entitled. Maternity and paternity benefits and other benefits given to
biological parents upon the birth of a child shall be enjoyed if the adoptee is below seven (7) years of age as
of the date the child is placed with the adoptive parents thru the Pre-Adoptive Placement Authority issued by
the Department.
New Retirement Law
RA 8558: AN ACT AMENDING ARTICLE 287 OF PRESIDENTIAL DECREE NO. 442, AS AMENDED,
OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES BY REDUCING THE RETIREMENT
AGE OF UNDERGROUND MINE WORKERS FROM SIXTY (60) TO FIFTY (50)
Article 287. Retirement. Any employee may be retired upon reaching the retirement age established in
the collective bargaining agreement or other applicable employment contract.
In case of retirement, the employee shall be entitled to receive such retirement benefits as he may have
earned under existing laws and any collective bargaining agreement and other agreements: Provided,
however, That an employee's retirement benefits under any collective bargaining and other agreements shall
not be less than those provided herein.
In the absence of a retirement plan or agreement providing for retirement benefits of employees in the
establishment, an employee upon reaching the age of sixty (60) years or more, but not beyond sixty-five
(65) years which is hereby declared the compulsory retirement age, who has served at least five (5) years in
the said establishment, may retire and shall be entitled to retirement pay equivalent to at least one-half (1/2)
month salary for every year of service, a fraction of at least six (6) months being considered as one whole
year.
Unless the parties provide for broader inclusions, the term one-half (1/2) month salary shall mean
fifteen (15) days plus one-twelfth (1/12) of the 13th month pay and the cash equivalent of not more than
five (5) days of service incentive leaves.
An underground mining employee upon reaching the age of fifty (50) years or more, but not beyond
sixty (60) years which is hereby declared the compulsory retirement age for underground mine workers,
who has served at least five (5) years as underground mine worker, may retire and shall be entitled to all the
retirement benefits provided for in this Article.
Retail, service and agricultural establishments or operations employing not more than ten (10)
employees or workers are exempted from the coverage of this provision.
Violation of this provision is hereby declared unlawful and subject to the penal provisions provided
under Article 288 of this Code.
Nothing in this Article shall deprive any employee of benefits to which he may be entitled under
existing laws or company policies or practices.
Requisites:
1. He is still employed at the time of the passage of the law- January 7, 1993.
2. His eligible for retirement
Optional- 60 yo and at least 5 yrs of service
Compulsory- beyond 65 yo
Mining employees:
Optional- 50 yo and at least 5 years of service
Compulsory- beyond 60 yo
Except: If CBA provides retirement age lower than statutory age of requirement
Exemptions:

1. Retail, service and agricultural establishments or operations employing not more than ten (10)
employees.
2. Covered by Civil Service Law
3. Dismissed from work due to just cause.
1996 Labor Advisory on Retirement Pay Law
A. COVERAGE
RA 7641 or the Retirement Pay Law shall apply to all employees in the private sector, regardless of their
position, designation or status and irrespective of the method by which their wages are paid. They shall include
part-time employees, employees of service and other job contractors and domestic helpers or persons in the
personal service of another.
The law does not cover employees of retail, service and agricultural establishments or operations
employing not more than ten (10) employees or workers and employees of the National Government and its
political subdivisions, including Government-owned and/or controlled corporations, if they are covered by the
Civil Service law and its regulations.
B. COMPUTATION OF RETIREMENT PAY
A covered employee who retires pursuant to RA 7641 shall be entitled to retirement pay equivalent to at
least one-half (1/2) month salary for every year of service, a fraction of at least six (6) months being considered
as one whole year.
The law is explicit that one-half month salary shall mean fifteen (15) days plus one-twelfth (1/12) of the
13th month pay and the cash equivalent of not more than five (5) days service incentive leaves unless the
parties provides for broader inclusions. Evidently, the law expanded the concept of one-half month salary
form the usual onemonth salary divided by two.
In reckoning the length of service, the period of employment with the same employer before the effective
date of the law on January 7, 1993 shall be included.
C. SUBSTITUTE RETIREMENT PLAN
Qualified workers shall be entitled to the retirement benefit under RA 7641 in the absence of any individual
or collective agreement, company policy or practice. In case there is such an agreement, policy or practice
providing retirement benefit which is equal or superior to that which is provided in the Act, said agreement,
policy or practice will prevail.
As provided in RA 7742, a private employer shall have the option to treat the coverage of the PAG-IBIG
Fund as a substitute retirement benefit for the employee concerned within the purview of the Labor Code as
amended; provided, such option does not in any way contravene an existing collective bargaining agreement or
other employment agreement. Thus, the PAG-IBIG Fund can be considered as a substitute retirement plan of the
company for its employees provided that such scheme offers benefits which are more than or at least equal to
the benefits under RA 7641.
If said scheme provides less than what the employee is entitled to under RA 7641, the employer is liable to
pay the difference. If both the employee and the employer contribute to a retirement plan, only the employers
contribution and its increments shall be considered for full or partial compliance with the benefit under RA
7641. On the other hand, where the employee is the loan contributor to the PAG-IBIG Fund, the employer being
exempted from its coverage, the employer is under obligation to give his employee retirement benefits under the
ACT.
Facilities for Women
Article 132. Facilities for Women. The Secretary of Labor and Employment shall establish standards that will
ensure the safety and health of women employees. In appropriate cases, he shall, by regulations, require any
employer to:
1. Provide seats proper for women and permit them to use such seats when they are free from work and

during working hours, provided they can perform their duties in this position without detriment to
efficiency;
2. To establish separate toilet rooms and lavatories for men and women and provide at least a dressing room
for women;
3. To establish a nursery in a workplace for the benefit of the women employees therein; and
4. To determine appropriate minimum age and other standards for retirement or termination in special
occupations such as those of flight attendants and the like.
Solo Parent Welfare Act
RA 8972: AN ACT PROVIDING FOR BENEFITS AND PRIVILEGES TO SOLO PARENTS AND THEIR
CHILDREN, APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES
Section 3. Definition of Terms. - Whenever used in this Act, the following terms shall mean as follows:
(a) "Solo parent" - any individual who falls under any of the following categories:
(1) A woman who gives birth as a result of rape and other crimes against chastity even without a final
conviction of the offender: Provided, That the mother keeps and raises the child;
(2) Parent left solo or alone with the responsibility of parenthood due to death of spouse;
(3) Parent left solo or alone with the responsibility of parenthood while the spouse is detained or is
serving sentence for a criminal conviction for at least one (1) year;
(4) Parent left solo or alone with the responsibility of parenthood due to physical and/or mental
incapacity of
spouse as certified by a public medical practitioner;
(5) Parent left solo or alone with the responsibility of parenthood due to legal separation or de facto
separation
from spouse for at least one (1) year, as long as he/she is entrusted with the custody of the
children;
(6) Parent left solo or alone with the responsibility of parenthood due to declaration of nullity or
annulment of
marriage as decreed by a court or by a church as long as he/she is entrusted with the
custody of the children;
(7) Parent left solo or alone with the responsibility of parenthood due to abandonment of spouse for at
least one
(1) year;
(8) Unmarried mother/father who has preferred to keep and rear her/his child/children instead of having
others care for them or give them up to a welfare institution;
(9) Any other person who solely provides parental care and support to a child or children;
(10) Any family member who assumes the responsibility of head of family as a result of the death,
abandonment, disappearance or prolonged absence of the parents or solo parent.
A change in the status or circumstance of the parent claiming benefits under this Act, such that he/she
is no longer left alone with the responsibility of parenthood, shall terminate his/her eligibility for these
benefits.
(b) "Children" - refer to those living with and dependent upon the solo parent for support who are
unmarried, unemployed and not more than eighteen (18) years of age, or even over eighteen (18) years but are
incapable of self-support because of mental and/or physical defect/disability.
(c) "Parental responsibility" - with respect to their minor children shall refer to the rights and duties of the
parents as defined in Article 220 of Executive Order No. 209, as amended, otherwise known as the "Family
Code of the Philippines."
(d) "Parental leave" - shall mean leave benefits granted to a solo parent to enable him/her to perform
parental duties and responsibilities where physical presence is required.

(e) "Flexible work schedule" - is the right granted to a solo parent employee to vary his/her arrival and
departure time without affecting the core work hours as defined by the employer.
Section 6. Flexible Work Schedule. - The employer shall provide for a flexible working schedule for solo
parents: Provided, That the same shall not affect individual and company productivity: Provided, further, That
any employer
may request exemption from the above requirements from the DOLE on certain meritorious
grounds.
Section 7. Work Discrimination. - No employer shall discriminate against any solo parent employee with
respect to terms and conditions of employment on account of his/her status.
Section 8. Parental Leave. - In addition to leave privileges under existing laws, parental leave of not more
than
seven (7) working days every year shall be granted to any solo parent employee who has rendered
service of at least
one (1) year.
Implementing Rules and Regulations of RA 8972
Parental leave shall mean leave benefits granted to a solo parent to enable him/her to perform parental
duties and responsibilities where physical presence is required;
Flexible work schedule is the right granted to a solo parent employee to vary his/her arrival and departure
time without affecting the core work hours as defined by the employer
ARTICLE IV CRITERIA FOR SUPPORT
Section 7. Criteria for Support Any solo parent whose income in the place of domicile falls equal to
or below the poverty threshold as set by the NSCB and subject to the assessment of the duly appointed or
designated social worker in the area shall be eligible for assistance: Provided, however, That any solo
parent whose income is above the poverty threshold shall enjoy the benefits mentioned in Sections 16, 17,
18, 19, 20, 21 and 23 of these Rules.
For purposes of the Act and these Rules, the place of domicile shall refer to the residence mentioned in
Section 8(a) of these Rules.
Section 8. Qualifications of Solo Parent A solo parent seeking benefits other than those provided for
under Sections 16, 17, 18, 19, 20, 21 and 23 of these Rules shall be qualified on the basis of the following:
(a) A resident of the area where the assistance is sought, as certified by the barangay captain;
Provided, that if the solo parent is a transferee from another barangay, he/she is required to secure a
clearance from his/her previous barangay, indicating whether or not he/she has availed of any benefits
for solo parents, and the nature of such benefits.
(b) With an income level equal to or below the poverty threshold as set forth by NSCB and
assessed by a social worker as provided for under Section 7 of these Rules.
ARTICLE V BENEFITS
Section 16. Flexible Work Schedule The employer shall provide for a flexible work schedule for solo
parents: Provided, That the same shall not affect individual and company productivity: Provided further,
That any employer may request exemption from the above requirements from the DOLE on certain
meritorious grounds.
In the case of employees in the government service, flexible working hours will be subject to the
discretion of the head of the agency. In no case shall the weekly working hours be reduced in the event the
agency adopts the flexible working hours schedule format (flexi-time). In the adoption of flexi-time, the
core working hours shall be prescribed taking into consideration the needs of the service.

Section 17. Work Discrimination No employer shall discriminate against any solo parent employee
with respect to terms and conditions of employment on account of his/her status.
Section 18. Parental Leave In addition to leave privileges under existing laws, parental leave of not
more than seven (7) working days every year shall be granted to any solo parent employee who has
rendered service of at least one (1) year. The seven-day parental leave shall be non-cumulative.
Section 19. Conditions for Entitlement of Parental Leave A solo parent shall be entitled to parental
leave provided that:
(a) He/She has rendered at least one (1) year of service whether continuous or broken at the time of
the affectivity of the Act;
(b) He/She has notified his/her employer of the availment thereof within a reasonable time period;
and
(c) He/She has presented a Solo Parent Identification Card to his/her employer.
Section 20. Non-conversion of Parental Leave In the event that the parental leave is not availed of,
said leave shall not be convertible to cash unless specifically agreed upon previously. However, if said
leave were denied an employee as a result of non-compliance with the provisions of these Rules by an
employer, the aforementioned leave may be used a basis for the computation of damages.
Section 21. Crediting of Existing Leave If there is an existing or similar benefit under a company
policy, or a collective bargaining agreement or collective negotiation agreement the same shall be credited
as such. If the same is greater than the seven (7) days provided for in the Act, the greater benefit shall
prevail.
Emergency or contingency leave provided under a company policy or a collective bargaining
agreement shall not be credited as compliance with the parental leave provided for under the Act and these
Rules.
Magna Carta of Women (RA 9710)
DOLE DO No. 112-A, s. 2012
Section 1. Definition of terms.
a. Special benefits for women means a female employees leave entitlement of two (2) months with full
pay from her employer based on her gross monthly compensation following ....