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13th month pay computation

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19 views

13th month pay computation

Uploaded by

Mia Ausmolo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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How to Compute 13th Month Pay

http://www.callcenterfocus.com/2014/11/13th-month-pay-
bonus-calculator.html

Here is how to calculate the 13th month pay for those who are able to complete the year
in their company from January to December.

1. Determine your basic salary for the whole year. This does not include the
allowances, overtime pay and other monetary benefits. Let’s say your basic
monthly salary is P20,000 from January to December.
2. Divide this year’s basic salary by 12.

P20,000 x 12 months = P240,000

P240,000 / 12 = P20,000 is your 13th month pay

You will receive P20,000 as your 13th month pay. This is provided that you have no
salary deductions due to unpaid leaves, unauthorized absences or tardiness.

How to Compute 13th Month Pay with Maternity Leave


1. Write down how much you receive each month to determine your basic salary for
the whole year.
2. Divide this year’s basic salary by 12.

January – P20,000

February – P20,000

March – Maternity Leave

April – Maternity Leave

May – P20,000

June – P20,000

July – P20,000

August – P20,000

September – P20,000
October – P20,000

November – P20,000

December – P20,000

Total salary for the year: P200,000

P200,000 / 12 = P16,666.67 is your 13th month pay

How to Compute 13th Month Pay for Resigned Employee


1. Determine your basic salary for the year. Let’s say you are hired on February 1,
2018 and effectively resigned on June 30, 2018. Your basic monthly salary is
P20,000. You had perfect attendance all throughout your employment.
2. Divide your basic salary by 12.

February – P20,000

March – P20,000

April – P20,000

May – P20,000

June – P20,000

Total salary for the year: P100,000

P100,000 / 12 = P8,333.33 is your 13th month pay

How to Compute 13th Month Pay for Contractual


Employees
Contractual workers must assert their rights to 13th month pay. After all, it is mandated
by law that every employed worker hired for at least a month during the calendar year
must receive it.

1. List your basic pay. Exclude any monetary benefits.


2. Divide this year’s basic salary by 12.

Let’s say you were hired in July with a salary of P512 a day. Your salary is based on
daily wage. Unfortunately, you had some absences and late time-ins so there had been
some salary deductions.
July: P10,240

August: P8,000

September: P10,240

October: P9,500

November: P8,000

December: P10,240

Total salary for the year: P56,220

P56,220 / 12 = P4,685 is your 13th month pay

How to Compute 13th Month Pay with Salary Increase


Got a salary increase this year? Congratulations! This is how to compute your
13th month pay.

1. List your basic pay each month.


2. Divide your basic salary by 12.

January – P20,000

February – P20,000

March – P20,000

April – P20,000

May – P20,000

June – P20,000

July – P20,000

August – P25,000

September – P25,000

October – P25,000

November – P25,000
December – P25,000

Total salary for the year: P265,000

P265,000 / 12 = P22,083.33 is your 13th month pay

13th Month Pay Calculator


Though as simple as it may seem, computing the 13thmonth pay could get confusing
with unpaid leaves, the hiring date and length of employment. You can use a 13thmonth
pay calculator to give you an idea of how much you can get before the year ends.
However, these calculators are not guaranteed to be specific. It only serves as a guide.

Facts About 13th Month Pay


 You must receive it on or before December 24 of each year as stated in the
Labor Code. A lot of employers release their 13th month pay in the first week of
December to help their employees avoid the Christmas rush.
 The 13th month pay was mandated in 1975 for the sole purpose of helping
Filipinos “properly” celebrate Christmas. It is undeniable that Christmas is a
holiday Catholic Filipinos mostly look forward to.
 The 13th month pay is taxable only if it is higher than P82,000.
 Not all employed Filipinos can have a 13th month pay. Managers, government
workers, housekeepers, persons in the personal service of another, and
employees paid purely on commission, boundary, or task basis are exempted.
Their employers have the sole discretion if they will give a 13th month pay and
Christmas bonus.

Final Words
In a nutshell, the formula for 13th month pay is finding how much basic salary you have
received this year. Then, no matter how many months you have been employed in the
company, you have to divide this year’s basic salary to 12.

Basic Salary This Year / 12 = 13th month pay

And once you have received your most awaited 13thmonth pay, do not get overly
excited. It is the Christmas season, but it does not mean you have to spend your money
in one go.

Be a smart spender! Don’t let your 13th month pay slip so easily.
Computation 1: If you have been employed by your company for more than a year use the
computation below;

Computation 2: Pro- Rated computation. If you have been employed by your company for less than

a year use the computation below;

Our Calculator has used the formula above to compute your estimated 13th month pay.

How to use the calculator:


 If you have been in the company for more than a year just replace the
value of salary and the no of days for leave without pay then click on
compute.
 If you have been in the company for less than a year replace the value of
salary, month of hire, date of hire and no of days for leave without
pay then click on compute.

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