G.R. No. 92174 December 10, 1993BOIE-TAKEDA CHEMICALS, INC.,Pettoner, vs.

HON. DIONISIO DE LA SERNA, Actng Secrearyof he Deparmen of Labor and

Employmen,FACTS:Presidental Decree No. 851, The hirTeenTh MonTh Pay Law,
defnes defnes "BasicSalary" as which shall include all remuneratons or earnings
paid by an employer To anemployee For services rendered buT may noT include
cosT oF living allowances profT sharingpaymenTs, and all allowances and moneTary
benefTs which are noT considered or inTegraTed asparT oF The regular or basic
salary oF The employee. While on The, Revised Guidelines on TheImplemenTaton oF
The 13Th MonTh Pay Law promulgaTed by Then Labor SecreTary ranklinDrilon
included The These salary-relaTed benefTs as parT oF The basic salary in The
compuTatonoF The 13Th monTh pay. Pettoners in This case were ordered To pay
Their employees due TounderpaymenT oF 13ThmonTh pay pursuanT To The Revised
Guidelines. Pettoners conTendedhowever under P.D. 851, The 13Th monTh pay is
based solely on basic salary. As defned by Thelaw iTselF and clarifed by The
implementng and SupplemenTary Rules as well as by The SupremeCourT in a long
line oF decisions, remuneratons which do noT Form parT oF The basic or
regularsalary oF an employee, such as commissions, should noT be considered in
The compuTaton oFThe 13Th monTh pay. his being The case, The Revised
Guidelines on The ImplemenTaton oF The13Th MonTh Pay Law issued by Then
SecreTary Drilon providing For The inclusion oF commissionsin The 13Th monTh pay,
were issued in excess oF The sTaTuTory auThoriTy conFerred by P.D.
851.ISSUE:WheTher or noT The Revised Guidelines on The ImplemenTaton oF The
13Th MonTh PayLaw issued by Then SecreTary Drilon providing For The inclusion oF
commissions in The 13ThmonTh pay, were issued in excess oF The sTaTuTory
auThoriTy conFerred by P.D. 851DECISION:In including commissions in The
compuTaton oF The 13Th monTh pay, The secondparagraph oF Secton 5(a) oF The
Revised Guidelines on The ImplemenTaton oF The 13Th MonThPay Law unduly
expanded The concepT oF "basic salary" as defned in P.D. 851. IT is aFundamenTal
rule ThaT implementng rules cannoT add To or deTracT From The provisions oF
Thelaw iT is designed To implemenT. AdminisTratve regulatons adopTed under
legislatve auThoriTyby a partcular deparTmenT musT be in harmony wiTh The
provisions oF The law They are inTendedTo carry inTo eecT. hey cannoT widen iTs
scope. An adminisTratve agency cannoT amend an acToF Congress.