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A Guide to Bonuses: Christmas Bonus and 13th Month Pay

In the Philippines, there are all sorts of bonuses and incentives for employees, which is a nightmare for Payroll staff unless they have a reliable system that is able to accommodate this flexibility -- yes, MariaHR is able to accommodate that and more. Here are some of the more common bonuses in the Philippines:
  1. Hiring bonus 
  2. Perfect attendance bonus 
  3. Performance bonus 
  4. Long service award and bonus 
  5. Project bonus 
  6. Medical allowance 
  7. School allowance 
  8. Rice and Transport allowance 
But what are the two most awaited bonuses? You guessed it right! The annual Christmas bonus and 13th Month Pay. Let's refer to these as the December bonuses as they are normally given out in December.

What is the Difference?
The 13th Month Pay is mandatory by law for all-non-managerial staff and is exempt from tax up to a limit of PHP 90,000. Christmas Bonuses are not tax exempt and is not mandatory. It is at the discretion of your company – although most private and public companies do try to provide Christmas bonuses.

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