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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.That is, it should be added to the guaranteed wage of the employee in computing his “basic salary” (see Philippine Duplicators v.NLRC, 1993.) Employees with multiple employers are entitled to 13th month pay from all their private employers.A fraction of at least 6 months shall be considered as one whole year. An employee terminated based on installation of labor-saving devices or redundancy is entitled to at least one-month salary or to at least one-month salary for every year of service, whichever is higher.However, only the employee’s last continuous years of service should be considered in the computation (See Carandang vs. (See Article 283, Labor Code) For termination based on retrenchment to prevent losses and closure of business, the employee affected is entitled to at least one month salary or 1/2 month salary for every year of service, whichever is higher.Only basic salary is included in the computation of 13th month pay.Allowances and monetary benefits which are not considered or integrated as part of the regular or basic salary, such as the cash equivalent of unused vacation and sick leave credits, overtime, premium, night differential and holiday pay, and cost-of-living allowances, shall be excluded from the computation.
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.
As such, it may be excluded from the computation of 13th month pay.