The Supplementary Annual Salary (SAC) or Aguinaldo
is 50% of the highest monthly salary received by the employee within the six months ending in June and December each year.
Settlement: It is levied in proportion to the time worked in each semester. The calculation is half the best salary divided by 6 and multiplied by the number of months worked.
Includes: periods of illness, accident and holidays are counted as time worked.
Exceptions: No settlement are considered for the periods in which the employee is not entitled to payment of wages because the SAC is a "deferred salary" that is earned "every day" and accompanying normal salary.
Difference: The normal wage is paid on a daily, biweekly or monthly. In contrast, the SAC is paid in two installments, the first on 30 June and the second on December 31 of each year.
Cessation: The worker is entitled to part of the SAC proportional fraction of the semester working when there is the termination of employment.
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