The 13th month pay for Filipino employees is like receiving a welcome holiday gift—a bit more income at year’s end. How exactly, though, do you figure your estimated pay-off? This thorough guide will help you to calculate your 13th month salary.
Know the Essentials: Value of Your Base Salary
Unlike a performance-based bonus, the 13th month pay is a legal mandated benefit. The amount is found from your basic wage over the year. This excludes fringe benefits, bonuses, overtime, or allowances. This simple strategy ensures that every qualifying employee receives a fair and regular pay at year-end.
An Example Calculation: Let’s run the figures
Think of yourself getting Php 20,000 a basic monthly salary. Figure your 13th month pay for the entire year:
Total 13th Month Pay = 20,000 *12 / 12 = 20,000
In this example, your 13th month pay would be Php 20,000. This simple calculation ensures that every employee will be able to rapidly understand and forecast their year-end benefit.
Key Points: Not every one qualifies
Though the 13th month pay is a mandated benefit, qualifying criteria apply. These are some noteworthy traits:
You have to work rank and file. Usually not entitled to this perk are government officials, domestic assistants, and management staff.
You had to have worked inside a calendar year for at least one month to be qualified for a pro-rated 13th month salary. This suggests that, based on the months you have worked, even if you joined the company late in the year you are still entitled to a part of the 13th month compensation.
When should your 13th month pay be expected?
Every year employers must pay the 13th month no later than December 24th. This gives financial peace of mind so workers might enjoy their Christmas season. Some companies may even pay this early in December so that employees have more flexibility with their vacation plans.
Want More Help? Ask without second thought!
If you have more questions or need assistance figuring your specific 13th month pay, see the Human Resources department of your company or the Department of Labor and Employment (DOLE) policies. Thorough tools and information available on the DOLE website help employees to understand their rights and benefits.
You have the tools right now to boldly estimate your 13th month pay! This is a happy (and reasonably secure) Christmas season! Your 13th month pay should satisfy you and help you to enjoy the festive season with the loved ones.
