Nothing in this Book shall be construed to eliminate or in any way diminish supplements, or other employee benefits being enjoyed at the time of promulgation of this Code.
Labor Code · Wages · Chapter II – Minimum Wage Rates
Prohibition Against Elimination or Diminution of Benefits
Nothing in this Book shall be construed to eliminate or in any way diminish supplements, or other employee benefits being enjoyed at the time of promulgation of this Code.
This rule against diminution of supplements or benefits is applicable if it is shown that the grant of the benefit is based on an express policy or has ripened into a practice over a long period of time and that the practice is consistent and deliberate. There is no unlawful diminution if the benefit being claimed is a contingent or contingent benefit, such as a bonus, whose demandability depends on certain preconditions. See also P.D. No. 851 (1975), Requiring all Employers to Pay Their Employees a 13th Month Pay. Under Sec. 2 of the Rules and Regulations Implementing P.D. No. 851, “’Thirteenth-month pay’ shall mean one twelfth (1/12) of the basic salary of an employee within a calendar year.”
Text and numbering follow the Department of Labor and Employment's 2022 edition of Presidential Decree No. 442, as amended and renumbered under DOLE Department Advisory No. 01, series of 2015. Former article numbers are shown in brackets. Notes are DOLE's editorial notes. Amendments after that edition are not included. For information and research only, and not legal advice. For certified copies, refer to the Official Gazette or the issuing agency.