For the most part, the 13th month pay covers only the basic salary of an employee. The salary increase will be taken into account when calculating the 13th-month pay, provided that the additional amount is only applied in the first month the pay increase took effect and thereafter. -Absences, Unpaid leaves & Maternity leave. How to compute the 13th Month Pay. Most of them are excited to receive their … All we have to do is to get the total of the basic pay earned for the whole year and divide it to 12. An employer who fails to pay the 13th-month benefit can be subjected to administrative cases. It’s just as simple as counting 123. The basic salary is the remunerations or earnings paid by the employer to the employee for the services that he/she rendered. Thirteenth Month by Sweldong Pinoy is a tool for Filipinos in computing their 13th-month pays. -Overtime, Night Differential & Holiday Pay. Rank-and-file employees are those who are not considered managerial employees. Therefore, using the sample data from above, the result would be 833.33 pesos (10,000 / 12 = 833.33). How to compute 13th month pay Without further ado, here’s how to compute your 13th month pay, assuming your salary is PHP20,000. Basically, the amount of the 13th-month pay is 1/12 of the employee’s annual salary. Hold on to it. Calculating 13th Month Pay. If you’re like me who is looking forward to his 13th month pay, then you better educate yourself on what to expect and how it is calculated. According to the law, it should be granted not later than December 24 every year. All we have to do is to get the total of the basic pay earned for the whole year and divide it to 12. The computation is derived from the 12 months of one calendar year. Senate President Vicente Tito Sotto filed a bill that will mandate employers in the government and private sectors to provide 14th-month pay to their employees, regardless of the employees’ status of employment. Recommended to you based on your activity and what's popular • Feedback This is the simplest way on how to compute your 13th-month pay. How to Compute the 13th Month Pay. Employers think they can get away with not providing their employees their 13th month benefit — but they can’t. Additional holiday pays and premiums are excluded. However, above all that, there is one thing that Filipinos (especially employees) are more excited about – their 13th-month pay. Employers who fail to do so can be subjected to administrative cases. This mandate’s sole purpose is to allow Filipinos more discretionary money for Christmas and New Year celebrations. How to compute your 13th month pay. Aside from 13th pay, another benefit to enjoy during December is the “Christmas bonus”. An employer, however, may give to his or her employees one-half (1/2) of the 13th month pay before the opening of the regular school year and the remaining half on or before December 24 of every year. Basic formula: (Basic pay) ÷ 12 * (Number of Months worked within the Calendar Year) Here is the basic 13th month pay formula in the Philippines. A Guide on How to Compute 13th Month Pay in 2020 - SprintHR the last time the 13th month pay was received, up until his or her resignation/termination. Before you start with the math, the first thing you need to know is exactly what is included and excluded in the computation of your 13th month pay: 13th month computation inclusions. While it may sound complicated, once you understand the basics of 13th-month pay and the labor laws in your employee’s host country, it isn’t too challenging. However, the Department of Labor Secretary Silvestre Bello III said in an interview that DOLE is consulting with both the labor and management on the feasibility of the 14-month pay to workers. The 13th Month Pay, as provided by Presidential Decree no. Monthly Basic Salary x Employment length 12 months . To compute your 13th month pay, multiply your basic monthly salary to the number of months you have worked for the entire year then divide the result to 12 months. In most cases, employees receive their pay as early as first week of December, while some receive it within the Christmas week. The length of time is proportional a.) The 13th month pay shall be paid not later than December 24 of every year. Wiser Ways to Spend 13th Month Pay. Changes to 13th Month Pay Brought by TRAIN Law. As we close in on the Christmas season and plan for our celebration, it’s also the perfect time to kick-start our savings or investment plans. Unlike the 13th-month pay which will be paid at the end of the year, this shall be paid on or before May 31st of each year in anticipation of school enrollment of the employees’ dependents. He added that Dole would need to study the bill before indicating its position, which would also depend on the result of consultations. 10 or the act that provides 14th month pay to government and private sector employees regardless of the employees’ status of employment. We do not have to be a hardcore mathematician to compute our 13th-month salary. And the way to compute for a prorated 13th month pay if you only work several months (let's say 3) should look like this: Basic salary paid for 3 months / 12 = prorated 13th month pay. While this is a measure that is unopposed by the working population, it isn’t the case for the businessmen running the private business sector in the Philippines. The main purpose of this law is to let the employees enjoy the extra cash for coming holidays especially the Christmas and New Year Celebrations. 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