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13th Month Computation

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Peter Castillo
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22 views

13th Month Computation

Uploaded by

Peter Castillo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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Republic of the Philippines DEPARTMENT OF LABOR AND EMPLOYMEN Intramuros, Manila RECEWEN AY, DEPARTMENT ADVISORY NO. 02 Seties of 2012 Payment of Thirteenth-Month Pay Pursuant to the provisions of Presidential Decree No. 851 and its implementing Rules and Regulations requiring employers in the private sector to pay their rank-and-file employees a 134 Month Pay on or before December 24 of every year, all covered employers are hereby reminded to comply with the following rules: |. DEFINITION OF TERMS 1. “Thirteenth-month pay" shall mean one twelfth (1/12) of the basic salary of an employee within a calendar year. x . "Basic salary” shall include all remunerations or earnings paid by an employer to an employee for services rendered but may not include cost-oHiving allowances, profitsharing payments, cash equivalent of unused vacation and sick leave credits, overtime pay, premium pay, night shift differential, holiday pay, and all alowances and monetary benefits which are not considered, or integrated, as part of the regular, or basic salary of the employee. ll. COVERAGE Rank-and/-file employees in the private sector shall be entitled to 13" month pay regardless of their position, designation, or employment status, and itrespective of the method by which their wages are paid, provided that they have worked for at least one month during the calendar year. UL TIME OF PAYMENT The 13 month pay shail be paid not later than December 24 of every year. An employer, however, may give fo his or her employees one-half (1/2) of the 13" month pay before the opening of the regular school year and the remaining half on or before December 24 of every year. IV. AMOUNT OF 13™ MONTH PAY The minimum 13th month pay required by law shall not be less than cone-tweltth (1/12) of the total basic salary earned by an employee within acalendar year. V. FORMULA AND COMPUTATION OF 13™ MONTH PAY Total basic salary earned during the year = Proportionate 13" month pay 12 months Wlustration: Using the basic wage in the National Capital Region of 426.00 per day and a six-day workweek or an equivalent Monthly Basic Salary of P11,111.50, to wit: January no absence P11,111.50 February no absence PV1INLSO March I day leave w/pay ——P11,111.50 April no absence P11,111.50 May 2daysleave w/pay —P11,111.50 June 2daysleavew/pay —P11,111.50 Juy no absence PILAT1.50 August 2days leave w/o pay P10,259.50 September ‘on matemity leave? no salary October ‘onmaterity leave no salary November no absence eee December Sdaysleave w/o pay P_8981.50 Total Basic salary earned ~———P108, 133,00 P108,133.00 / 12 months = P9,011.08 P9,011.08 is the proportionate 13" month pay VI. REPORT OF COMPLIANCE Every covered employer shall make a report of his compliance with the law fo the nearest Regional Office not later than January 15 of each year. The report shall conform substantially with the following form: "The additional P30.00 COLA under Wage Order No. NCR-17 (426 + P30 COLA= P456), is nat i in sc ‘salary in computing the 13" month pay. 7 cen te ine "The 2 mnt metry eae inched nthe campunton of 1 mith pay bese te ‘has no eamings from the company for the said period. ny eee Report on Compliance with PD No. 851 Name of establishment Address Principal product or business Total employment Total number of workers benefited Amount granted per employee Total amount of benefits granted Name, position, and telephone number of person giving information PN SO RON> Please be guided accordingly. ROSALINBA DIMAPILI @ BALDOZ Secretary 16 November 2012

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