13th Month Pay
All employees who meet the below criteria are entitled to 13th month pay:
✔ Worked at Global Teams for over 1 month
✔ Is a rank and file employee (must not perform a managerial role regardless of job title)
✔ Be an employee paid per time period e.g. monthly or hourly and not by task/project
If an employee does not qualify to all of the above and the employment contract does not mention 13th month pay, 13th month pay will be discretionary to the employer.
13th month pay is paid at the end of each year. If an employee leaves part way through the year, they will be entitled to the prorated amount of their 13th month pay.
De Minimis
De Minimis employer contributions are optional non-taxable compensation from the employer in addition to basic salaries. Employers can set their own cap (up to 90,000 PHP per month) for the total De Minimis value however the maximum usage per category remains the same:
- Meal allowance during overtime work: up to 25% of the basic minimum wage
- Unused leave credits converted to cash: Maximum of 10 days per year
- Rice subsidy: up to PHP 1,500 (approx. USD 30) per year
- Medical cash allowance: up to PHP 750 (approx. USD 15) per semester or PHP 125 (approx USD 2.50) per month
- Uniform and clothing allowance: up to PHP 5,000 (approx. USD 100) per year
- Laundry allowance: up to PHP 300 (approx. USD 6) per month
- Medical benefits: up to PHP 10,000 (approx. USD 200) per year
- Gifts, given on the occasion of Christmas, festivals, or special circumstances in the employee’s life such as marriage or a death in the family: up to PHP 5,000 (approx. USD 100) per year
- Employee achievement awards. These can be in forms other than cash or gift vouchers: up to PHP 10,000 (approx. USD 200) per year.
- Benefits under the Collective Bargaining Agreement (CBA) and productivity incentive schemes (combined amount must be no more than Php 10,000 per taxable year)
- Transportation allowance and other benefits not exceeding a certain monetary value
Any amounts given as a benefit (within the list above) to employees from the employer above the threshold will be taxable.
Bonus
Bonuses may be perfomance-based or fixed.
Bonuses, including Christmas bonus, are optional and discretionary to the employee unless the bonus:
- is stipulated in the employment contract
- is made part of the compensation of employees
- is a repeated payment that is given without a written agreement
Before giving bonuses out to Global Teams, please contact GT Zendesk.
Commissions
Commissions are also optional unless agreed in the employment contract or has been a repeated practice between you and the employee.
Commissions may be treated as part of basic salary if:
- paid as an incentive: 13th month pay does not take commissions into account as it is outside of basic pay.
- paid as direct remuneration: 13th month pay will take commissions into account as part of basic pay.
Currently, Global Teams cannot accommodate commission-only employment.