Doble Aguinaldo

Doble Aguinaldo: A Comprehensive Guide

What is Doble Aguinaldo?

Doble Aguinaldo, also known as the 13th-month pay, is a mandatory bonus benefit granted to all employees in the Philippines. It is equivalent to one month's basic salary and is typically paid before Christmas.

Legal Basis

The legal basis for Doble Aguinaldo is Presidential Decree No. 851, which was signed into law in 1975. The decree requires all employers to pay their employees a 13th-month bonus, regardless of their employment status (regular, contractual, or probationary).

Who is Eligible for Doble Aguinaldo?

All employees in the Philippines are eligible for Doble Aguinaldo, including:

• Full-time employees
• Part-time employees
• Contractual employees
• Probationary employees

The only exception is for government employees, who are not entitled to Doble Aguinaldo.

How is Doble Aguinaldo Calculated?

Doble Aguinaldo is calculated as follows:

Monthly Basic Salary x 12 = 13th-Month Pay

For example, if your monthly basic salary is Php 20,000, your Doble Aguinaldo will be Php 20,000 x 12 = Php 240,000.

When is Doble Aguinaldo Paid?

Doble Aguinaldo is typically paid before Christmas, specifically on or before December 24th of each year. However, it can also be paid earlier or later, as long as it is paid within the same calendar year.

Tax Treatment of Doble Aguinaldo

Doble Aguinaldo is subject to income tax, which is deducted from the bonus before it is paid to the employee. The tax rate depends on your income tax bracket.

Conclusion

Doble Aguinaldo is a significant benefit for employees in the Philippines, providing them with a financial boost during the holiday season. It is a legal requirement for all employers to pay their employees Doble Aguinaldo, and it is typically paid before Christmas.