These are employees who are paid every day of the month, including unworked rest days, special days, and regular holidays.

•For HQ employees, are paid from Monday to Friday including special and regular holidays, a factor of 261 days is used. 

•For Operations employees, are paid from Monday to Saturday including special and regular holidays, a factor of 313 days is used. 

Formula: 

Applicable Monthly Rate (AMR)  x  12   /  261  (Parameter)  =  Daily Rate

Question: 

1.  An Employee is assigned to headquarters and is paid on a monthly basis. His monthly rate is 15,000.00. What is his daily rate?

Answer: 

      15,000.00 (Basic Salary)  x  12  /  261  (Parameter)  =  PHP 689.66 -- Daily Rate

The De Minimis benefits are those benefits of relatively small values given by employers to their employee on top of the compensation and these benefits are not subject to withholding (tax exempt)

The BIR sets a limit on the value of tax-exempt de minimis benefits. Under RR 8-00, as amended by RR 10-00, the BIR considers the following as de minimis benefits: 

•  Monetized unused vacation leave credits of private employees not exceeding 10 days during the year;

• Medical cash allowance to dependents of employees, not exceeding P1,500 per employee per semester or P250 per month;

• Rice subsidy of P2,000 or one 50-kg sack of rice per month worth not more than P2,000;

• Uniforms and clothing allowance not exceeding P6,000 per annum;

• Actual medical assistance not exceeding P10,000 per annum;

• Laundry allowance not exceeding P300 per month;

• Employees’ achievement awards, which must be in the form of tangible personal property other than cash or gift certificates, with an annual monetary value not exceeding P10,000 received by the employee under an established written plan which does not discriminate in favor of highly paid employees;

• Gifts given during Christmas and major anniversary celebrations not exceeding P5,000 per employee per annum;

• Daily meal allowance for overtime work and night/graveyard shift not exceeding 25% of the basic minimum wage; and

• Benefits received by an employee by virtue of a Collective Bargaining Agreement (CBA) and productivity incentive schemes, provided the total annual monetary value received from both CBA and productivity incentive schemes combined do not exceed P10,000 per employee per taxable year.

Please noted that any form of allowances or monetary compensation given to an employee, not included in the De Minimis is subject to tax

What is the 13th month's pay ?

13th-month pay is a form of monetary benefit equivalent to the monthly basic compensation received by an employee, computed pro-rata according to the number of months within a year that the employee has rendered service to the employer. 

How is the 13th month's pay computed? 

The 13th-month pay is computed based on 1/12 of the total basic salary of an employee within a calendar year, or the basic monthly salary for the whole year divided by 12 months. The computation of basic salary excludes any unpaid absences by the employee. 

What are the components of “basic salary”? 

“Basic salary” shall include all remunerations or earnings paid by an employer to an employee for services rendered, but does not include 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. 

Are maternity leave benefits included in the computation of 13th-month pay? 

No. Maternity leave benefits are not included in the computation of 13th-month pay.

Is the 13th month's pay taxable? 

Yes. However, employees can expect the first P90,000 of the 13th-month pay, and other bonuses are exempt from income tax.