Generally, what is the rule on wages?
Under Philippine law, wages are remunerations or earnings for services rendered. Employers and employees may agree on rate but should not fall below the minimum wages set by the Regional Tripartite Wages and Productivity Boards (RTWPB) which has jurisdiction over the place of work. You can find the rate of minimum wage by going to the website of the National Wages and Productivity Commission (NWPC) http://www.nwpc.dole.gov.ph/rtwpb.html.
The pay of employees is intended to be given whole to the employee in Philippine legal tender. So while payment by check and through automated teller machines (ATMs) are allowed, vouchers, promissory notes and gift certificates are not. Deductions from employee wages are generally frowned upon with only a few allowed by law including income tax, contributions to social welfare agencies such as SSS and Pag Ibig, and union dues under appropriate agreements.
Minimum Wage Earners Exempt from Income Tax
A new law passed in 2008 exempts minimum wage earners from paying income taxes. Because of this, no deductions will be made from their pay on the basis of income tax.
What is a Bonus?
Bonus is the amount granted for employee’s industry and loyalty, which is generally discretional. However, there have been times when the grant of bonuses have been considered as long standing practice and therefore cannot be simply withheld without cause.
What is 13th month pay?
13th month pay is the 1/12 of the basic salary earned by the employee during the year. It is compulsory and to be given not later than December 24 of the year.