Boie-Takeda Chemicals, Inc. vs. de la Serna228 SCRA 329, Dec. 10, 1993 Facts: P.D. No.

851 provides for the Thirteen-Month Pay Law. Under Sec. 1 of said law,
―allemployers are required to pay all their employees receiving basic salary of not more than P1,000.00 a month, regardless of the nature of the employment, and such should
be paid onDecember 24 of every year.‖ The Rules and Regulations Implementing P.D. 851 containedprovisions defining ―13-month pay‖ and ―basic salary‖ and the
employers exempted fromgiving it and to whom it is made applicable. Supplementary Rules and RegulationsImplementing P.D. 851 were subsequently issued by Minister Ople
which inter alia set items of compensation not included in the computation of 13-month pay. (overtime pay, earnings andother remunerations which are not part of basic salary
shall not be included in thecomputation of 13-month pay). Pres. Corazon Aquino promulgated on August 13, 1985 M.O.No. 28, containing a single provision that modifies P.D.
851 by removing the salary ceiling of P1,000.00 a month. More than a year later, Revised Guidelines on the Implementation of the13-month pay law was promulgated by the
then Labor Secretary Franklin Drilon, among otherthings, defined particularly what remunerative items were and were not included in theconcept of 13-month pay, and
specifically dealt with employees who are paid a fixed orguaranteed wage plus commission or commissions were included in the computation of 13thmonth pay)A routine
inspection was conducted in the premises of petitioner. Finding thatpetitioner had not been including the commissions earned by its medical representatives inthe computation
of their 1-month pay, a Notice of Inspection Result was served on petitionerto effect restitution or correction of ―the underpayment of 13-month pay for the years, 1986 to1988
of Medical representatives. Petitioner wrote the Labor Department contesting the Noticeof Inspection Results, and expressing the view that the commission paid to its
medicalrepresentatives are not to be included in the computation of the 13-moth