presidential decree no.851

7/30/2019 PRESIDENTIAL DECREE No.851

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Presented by: Krishna A. Palomares

4NRS-1 Presented to:

Mr. Bernard J. Enriquez BSN RN MAN


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REQUIRING ALL EMPLOYERS TO PAY THEIR

EMPLOYEES A 13th-MONTH PAY

WHEREAS, it is necessary to further protect the levelof real wages from the ravage of worldwide inflation;

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

WHEREAS, the Christmas season is an opportunetime for society to show its concern for the plight of

the working masses so they may properly celebrateChristmas and New Year.


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Section 1Payment of 13-month Pay All employers covered by

Presidential Decree No. 851, hereinafter referred to asthe "Decree", shall pay to all their employees receivinga basic salary of not more than P1,000 a month athirteenth-month pay not later than December 24 ofevery year.


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Section 2Thirteenth-month pay" shall mean one twelfth (1/12) of

the basic salary of an employee within a calendar year

Section 3Employers covered The Decree shall apply to all employersexcept to:

(a) Distressed employers(b) ) The Government and any of its political subdivisions,including government-owned and controlledcorporations, except those corporations operatingessentially as private subsidiaries of the Government


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Section 4Employees covered Except as provided in Section 3 ofthis issuance, all employees of covered employers shallbe entitled to benefit provided under the Decree whoare receiving not more than P1,000 a month, regardlessof their position, designation or employment status,and irrespective of the method by which their wagesare paid, provided that they have worked for at leastone month during the calendar year.


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Section 5Option of covered employers A covered employer may

pay one-half of the 13th-month pay required by theDecree before the opening of the regular school yearand the other half on or before the 24th day ofDecember of every year


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Section 6Special feature of benefit The benefits granted under

this issuance shall not be credited as part of the regularwage of the employees for purposes of determiningovertime and premium pay, fringe benefits, as well aspremium contributions to the State Insurance Fund,social security, medicare and private welfare andretirement plans


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Section 7Exemption of Distressed employers Distressed

employers shall qualify for exemption from therequirement of the Decree upon prior authorization bythe Secretary of Labor. Petitions for exemptions maybe filed within the nearest regional office havingjurisdiction over the employer not later than January15, 1976. The regional offices shall transmit thepetitions to the Secretary of Labor within 24 hoursfrom receipt thereof.


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Section 8Report of compliance Every covered employer shall make

a report of his compliance with the Decree to thenearest regional labor office not later than January 15of each year.


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Section 10Prohibition against reduction or elimination of benefits

Nothing herein shall be construed to authorize anyemployer to eliminate, or diminish in any way,supplements, or other employee benefits or favorablepractice being enjoyed by the employee at the time ofpromulgation of this issuance.


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End of Slide Show

Thank you!

presidential decree no.851

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