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PHILIPPINE LABOR CIRCULAR
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This web page features the full text of
Presidential Decree No. 851
THE 13TH MONTH PAY LAW
 
THE 13th-MONTH PAY LAW
The 13th-Month Pay Law (Presidential Decree No. 851)
The 13th-Month Pay Law - Implementing Rules
The 13th-Month Pay Law - Supplementary Rules
The 13th-Month Pay Law - Guidelines (Administrative Order No. 2, S. 1976)
 
 
 
PRESIDENTIAL DECREE NO. 851
  REQUIRING ALL EMPLOYERS TO PAY THEIR EMPLOYEES
A 13th-MONTH PAY
  
 
WHEREAS, it is necessary to further protect the level of real wages from the ravage of worldwide inflation;

WHEREAS, there has been no increase in the legal minimum wage rates since 1970;

WHEREAS, the Christmas season is an opportune time for society to show its concern for the plight of the working masses so they may properly celebrate Christmas and New Year.

NOW, THEREFORE, I, FERDINAND E. MARCOS, by virtue of the powers vested in me by the Constitution, do hereby decree as follows:chanroblesvirtuallawlibrary

Section 1. All employers are hereby required to pay all their employees receiving a basic salary of not more than P1,000 a month, regardless of the nature of their employment, a 13th-month pay not later than December 24 of every year.

Sec. 2. Employers already paying their employees a 13th-month pay or its equivalent are not covered by this Decree.

Sec. 3. This Decree shall take effect immediately.

Done in the City of Manila, this 16th day of December 1975.
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Since 19.07.98