How to compute 13th month pay? | Pinoy Entertainment Blog
How to calculate 13th Month Pay?
December is coming, all Filipino workers are excited to receive their 13th month pay. It's a month of giving gifts, attending parties and food to prepare on Noche Buena.
Thirteen Month pay is a monetary benefit given to every employees. Every workers working in a private companies have the right to receive the 13th month pay. If you started working in a company at the month of october, you are eligible to get a 13th month pay.
According to DOLE (Department of Labor and Employment), the 13th month pay should be given to the employees before December 25 each year. Some of the companies give it on first week of December while the others are given within Christmas Week.
Christmas Bonus is Voluntary while 13th Month pay is mandatory as it is employers legal obligation given to its employees.
Christmas Bonus is employers voluntary obligation to the employees. It is sometimes cash, gift certificate, groceries and etc..
Here's how to compute 13th month pay for those workers who complete the year in their company from January to December.
Determine your basic salary for the whole year, not included the allowances, overtime pay and other benefits. Let's say your basic salary for the month is 20,000 from January to December.
Basic Salary(20,000) x 12 months = 240,000
240,000 / 12 = 20,000
Therefore, 20,000 is your 13th month pay.
What if you started working in a company for 6 months only, are you eligible to receive a 13th month pay? The answer is, YES. How to compute it?
For example, you are hired in month of July with a salary of 537 a day and you only have one rest day per week. We assume that you have no absences 'til december.
Month of July : 13,962
Month of Aug : 13,962
Month of Sept : 13,962
Month of Oct : 13,962
Month of Nov : 13,962
Month of Dec : 13,962
Total Salary for the year : 83,772
83,772 / 12 = 6,981 is your 13th month pay.
December is coming, all Filipino workers are excited to receive their 13th month pay. It's a month of giving gifts, attending parties and food to prepare on Noche Buena.
Thirteen Month pay is a monetary benefit given to every employees. Every workers working in a private companies have the right to receive the 13th month pay. If you started working in a company at the month of october, you are eligible to get a 13th month pay.
When you will get 13th month pay?
According to DOLE (Department of Labor and Employment), the 13th month pay should be given to the employees before December 25 each year. Some of the companies give it on first week of December while the others are given within Christmas Week.
What is the difference between Christmas Bonus and 13th month pay?
Christmas Bonus is Voluntary while 13th Month pay is mandatory as it is employers legal obligation given to its employees.
Christmas Bonus is employers voluntary obligation to the employees. It is sometimes cash, gift certificate, groceries and etc..
How to compute 13th month pay?
Here's how to compute 13th month pay for those workers who complete the year in their company from January to December.
Determine your basic salary for the whole year, not included the allowances, overtime pay and other benefits. Let's say your basic salary for the month is 20,000 from January to December.
Basic Salary(20,000) x 12 months = 240,000
240,000 / 12 = 20,000
Therefore, 20,000 is your 13th month pay.
What if you started working in a company for 6 months only, are you eligible to receive a 13th month pay? The answer is, YES. How to compute it?
For example, you are hired in month of July with a salary of 537 a day and you only have one rest day per week. We assume that you have no absences 'til december.
Month of July : 13,962
Month of Aug : 13,962
Month of Sept : 13,962
Month of Oct : 13,962
Month of Nov : 13,962
Month of Dec : 13,962
Total Salary for the year : 83,772
83,772 / 12 = 6,981 is your 13th month pay.
Please take note that the 13th month pay is taxable only if it is higher than Php 82,000.
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