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Should you give your VA a 13th month pay?
Filipinos expect it every December. Here is what it is, who the law covers, and why many employers pay it anyway.
By The PH Online Jobs Team
In the Philippines, rank-and-file employees of local companies must receive a 13th month pay by December 24. Under PD 851 it equals one twelfth of the basic salary earned in the year.
Does it apply to remote contractors?
Probably not. A worker you hire directly as an independent contractor is usually not covered by PD 851; an employee of a local company is. Ask a Philippine labor lawyer if your arrangement is unclear. Either way, the worker's friends and relatives with local jobs will all get one in December.
Why many employers pay it anyway
- It shows you know how pay works where your worker lives
- It arrives just before Christmas, when families spend the most
- It costs about 8% of a year's pay, and workers remember who paid it
“The first December I sent a 13th month bonus, my VA thanked me twice on our call. I have paid it every year since.”
