Question 7, 2018 Labor Law Bar Exam

VII.

(Question VII, Labor Law, 2018 Bar Exam)

Nico is a medical representative engaged in the promotion of pharmaceutical products and medical devices for Northern Pharmaceuticals, Inc. He regularly visits physicians’ clinics to inform them of the chemical composition and benefits of his employer’s products. At the end of every day, he receives a basic wage of PhP700.00 plus a PhP150.00 “productivity allowance.” For purposes of computing Nico’s 13th month pay, should the daily “productivity allowance” be included? (2.5%)

Suggested Answer:

Yes. Answer

Under the 13th Month Pay Law, basic salary shall include all remunerations or earnings paid by an employer to an employee for services rendered but may not include cost-of-living allowances, profit-sharing payments, and all allowances and monetary benefits which are not considered or integrated as part of the regular or basic salary of the employee. Rule

In the case at bar, the Php150.00 “productivity allowance” is considered and integrated as part of the regular or basic salary of Nico. He regularly receives the said allowance without any conditions or requirements. Apply

Thus, the productivity allowance should be included in the 13th month pay. Conclusion

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(Notice: The suggested answers simulate those that a bar examinee may provide, and thus specific citations are not provided. Notwithstanding, in the reviewers, the bar exam question is answered under the appropriate topic which discusses the concepts and principles, as well as provide for specific citations. Accordingly, please refer to it on the reviewer or in the Library.)

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