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148837, August 13, 2004.) There are at least five instances in which an employee is entitled to payment of separation pay upon severance of employment: Separation pay should not be confused with retirement pay.

Over the years, I have had items shipped into the Philippines from various places. Sometimes friends and readers send me gifts (thank you to those who have done so, BTW).

I remember about 5 years ago, I had a new DSLR camera.

It was an expensive model at the time, a Canon Rebel XT.

However, these salary-related benefits should be included as part of the basic salary in the computation of the 13th month pay if by individual or collective agreement, company practice or policy, the same are treated as part of the basic salary of the employees.

The required 13th month pay shall be paid not later than December 24 of each year.

Only the fixed or guaranteed wage is required to be included in the computation (see Boie Takeka case, 1993.) On the other hand, commission that takes the form of a direct remuneration for services rendered should be included in the computation of the basic salary.However, employees paid on partly commission basis, i.e., those guaranteed with a fixed wage aside from the commission, are entitled to 13th month pay.Commission that take the form of an incentives or encouragement to ensure productivity, e.g., productivity bonus, does not form part of the basic salary.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.

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