G.R. No.

L-49774 February 24, 1981

SAN MIGUEL CORPORATION (CAGAYAN COCA-COLA PLANT), petitioner,

vs.
Hon. AMADO G. INCIONG, Deputy Minister of Labor and CAGAYAN COCA-COLA
FREE WORKERS UNION, respondents.

DE CASTRO, J.:

FACTS:

This is a complaint on January 3, 1977 by Cagayan Coca-Cola Free Workers Union against
San Miguel Corporation (Cagayan Coca-cola Plant) for the alleged failure or refusal of the
latter to include in the computation of 13-month pay such items as sick, vacation, or
maternity leaves, premium for work done on rest days and special holidays, including pay
for regular holidays and night differentials.

ISSUE:

- WoN PD 851 includes payments for sick, vacation, or maternity leaves,

premium of work done on rest days and special holidays, including pay for
regular holidays, and night differentials should be considered in the
computation for the 13-month pay?

a.) NO. Additional compensation shall not be considered in the computation of the
13-month pay.

Citing certain provisions of the Labor Code of the Philippines specifically Art.
87 on overtime work performed beyond 8 hours a days is paid as additional
compensation equivalent to a regular wage plus 25% hereof and Art 93 on
work performed on any special holidays as an additional compensation of
atleast 30% of the regular wage of the employee, clearly, additional
compensation is categorically excluded from the definition of basic salary
under the Supplementary Rules and Regulations Implementing Presidential
Decree 851.

The Orders of the Deputy Labor Minister dated June 7, 1978 and December
19, 1978 are hereby set aside and a new one entered as above indicated. The
Temporary Restraining Order issued by this Court on February 14, 1979 is
hereby made permanent. No pronouncement as to cost.