13 th Month Pay Calculator. For Filipinos, the Christmas season is when everyone looks forward to buying gifts, parties to attend, and food to prepare on Noche Buena. The anatomy of a 13th-month bonus. Even when you leave a company, you’re entitled to your 13th month pay. 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. It is computed based on the 1/12 of the total basic salary of an employee within a year (calendar year) or the basic salary for the whole year divided by 12 months. Wiser Ways to Spend 13th Month Pay. The basic salary is the remunerations or earnings paid by the employer to the employee for the services that he/she rendered. How to compute 13th month pay Without further ado, here’s how to compute your 13th month pay, assuming your salary is PHP20,000. of the 14-month pay to workers. Labor Undersecretary Benjo … 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. Unused vacation leave and sick leave credits, Senate President Vicente Tito Sotto filed a. 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. Managerial employees, on the other hand, are those whose contract employment requires them to hire, promote, transfer, dismiss, reward, and discipline other employees. 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. 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. However, the computation will vary depending on your salary and length of service for the whole calendar. According to the law, the 13th-month pay should be provided to the employees on or before December 24 of each year. The basic salary is the main variable in computing for the 13 th month pay. While Senator Sotto vowed to fast-track the approval of the bill, the Senate bill is still pending in Senate, and a House Bill for such law is also suffering the same fate in the House of Representatives. iMoney.ph is a leading financial comparison website and a trusted personal finance authority to help you make the most out of your money. All rank-and-file employees in the private sector who have worked for at least one (1) month during the calendar year are entitled to receive 13th month pay regardless of their position, designation or employment status. Monthly Basic Salary x Employment Length ÷ 12 months. After a background check, it’s time to crunch some numbers. You can now provide your salaries from January to December and Thirteenth Month will compute your 13th-month pay. From buying gifts, attending parties, to hitting the 5,000 calorie mark on Noche Buena, we sure do love to indulge in the holiday season. We do not have to be a hardcore mathematician to compute our 13th-month salary. "The number of days na hindi sila nakapasok, whether it is voluntary or involuntary, will have to be deducted in the computation of the 13th month pay," he said in a media briefing. The formula is total basic salary minus total of salary deductions including absences, lates, and undertime over 12 months. 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. Employers who fail to do so can be subjected to administrative cases. Employers think they can get away with not providing their employees their 13th month benefit — but they can’t. It’s just as simple as counting 123. Note that 13th-month pay is computed as the number of months rendered by the employee which means additional holiday pays and premiums will not be included in the computation. However, above all that, there is one thing that Filipinos (especially employees) are more excited about – their 13th-month pay. But to put it simpler, the formula is to get your annual basic salary (basic salary times months rendered), deduct your unpaid absences, then divide it into 12. For Filipinos, this is the month to look forward to. Hold on to it. *The following are NOT included in its computation: -Allowances including COLA. 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. Easy as 123! The computation is derived from the 12 months of one calendar year. 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. However, it does not include the following: Generally, 13th month pay is computed based on 1 ½ of your total basic salary for the whole calendar year. 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. Useful Tips on How To Compute Your 13th Month Pay. This is the simplest way on how to compute your 13th-month pay. How to compute your 13th month pay. The Tax Reform Acceleration and Inclusion Law or TRAIN Law was passed in... Business Downturn Due to the Pandemic. Monthly Basic Salary x Employment length 12 months . 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