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With the removal of the salary ceiling, all rank and file employees become entitled to a 13th month pay regardless of the amount of their monthly basic salary (unless their employers are exempted from the application of PD 851).

Managerial employees are excluded from the coverage of the law.

Matagal nang proposal ng Philippine Health Insurance Corp.

(PHILHEALTH or PHIC) ang pagbabayad ng 22 medical and surgical cases on a Case-Rate Basis, at hindi na on a Fee-for-Service basis.

The Labor Code distinguishes a rank-and-file employee from a managerial employee.

It provides that a managerial employee is one who is vested with powers of prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, lay-off, recall discharge, assign or discipline employees, or to effectively recommend such managerial actions.

Only basic salary is included in the computation of 13th month pay.

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Proposal pa lang ito, at pinag-uusapan pa ng Philhealth board.

Private school teachers are entitled to 13th month pay regardless of the numbers of months they work in a year, provided it is at least one month.

Employees who resigned or were separated during the calendar year shall be entitled to 13th month pay in proportion to the length of time he worked during the year, provided it is at least one month.

All employees not falling within this definition are considered rank-and-file employees.

The 13th month pay shall be in the amount not less than 1/12 of the total earned by the employee within the calendar year.

However, employees paid on partly commission basis, i.e., those guaranteed with a fixed wage aside from the commission, are entitled to 13th month pay.

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