Company made our 13 month pay included on the mid pay this December which is always a taxable payslip but the 13 month was included in the tax which is not suppose to be. Company stated that threshold was the reason for this since we had a performance bonus last year but was given by February this year which they did not deduct any tax. I think this should not be the case as 13 month is not subject to tax or inclusive of regular pay tax withholding.

The answer to your question is: No

Your 13th month pay shouldn’t be withheld for any reason. This pay is mandated by law to be released before Dec 24. This release date is mandated by the labor code and this shouldn’t be tampered by any company policy.

13th month pay is non-inclusive to the regular wage.

Your boss is obviously bluffing in order to reap the requirements he is demanding from you.

Your HR should now abt the labor code and you could report this to them.

If your HR would insist on the withholding until the requested clearance of your boss, you should report this to proper authorities.

http://jlp-law.com/blog/faq-on-13th-month-pay/

I have the exact situation that you are into right now. I’ve been trying to study the labor code and check if the employer should NOT WITHHOLD the release of the 13th month pay, along with the last pay check – since it is mandated by law to release the 13th month pay before Dec 24.

I have a friend who resigned prior to the release of the 13th month pay, but as per their company’s HR, the 13th month pay will still be released to her, except her last pay.

Now the question is, is this the same for all companies? Best way to find out is to check with our HR. Pero nakaka hiya eh. haha!

Is there anyone who can clear this out for us.

Thanks!

appreciate feedback so i would know what option/s to take.

Thanks and regards.

ang employer ko ba is obliged to pay me my 13th month since dalawa lang kami na employed sa kanila, isang manager and ako na pharmacist? nasa law din ba yan?

and also wala din akong benefits from them..no SSS, no PHILHEALTH…dapat din ba nila ibigay yan sa akin? may bracket ba dapat para maibigay sa akin ang mga benefits na dapat lang na meron ako as employee.

please help me find answers to my questions.

thank you.

email me : sovereign_lady07@yahoo.com

The first P30,000 on your 13th month pay is tax free, as stated by BIR revenue regulations. This P30,000 does not include the sum of all “de minimis” benefits given by the company to the employees.

Thus being said, your 13th month will only be taxable if you are receiving a 13th month pay exceeding P30,000 and the tax will only apply after deducting the first P30,000 on your 13th month pay.