Guide on How To Compute 13th Month Pay in the Philippines
HOW TO COMPUTE 13TH MONTH PAY IN PH – Here are the steps to check how much your 13th month pay will be in the Philippines.
Every December, a lot of employees rejoice because they get a higher amount compared to what they usually get as a monthly salary. It is mainly because of the 13th month pay that is usually released along with the salary for the month.
The 13th month pay is mandated by law. Under the Presidential Decree No. 851, companies must pay their employees with the average of all the salaries received in the entire year. It should be released not later than December 24, 2022.
All employees who have worked for at least a month in a company are entitled to receive the 13th month pay. Even probationary employees as long as they have worked for at least one (1) month will get the pay.
How to compute the 13th month pay in PH? The process of computing is very easy. You only need the net monthly salaries you got for the entire year thus you should gather your payslips. Incentives and other allowances that are not part of the basic pay are excluded from the computation.
Here is a guide on how to compute your 13th month pay:
- Step 1 – Based on your payslips, list down all the net monthly salaries you have received from January to December. For example:
- January – P14,500
- February – P15,000
- March – P15,000
- April – P15,000
- May – P13,000
- June – P14,200
- July – P15,000
- August – P15,000
- September – P13,000
- October – P15,000
- November – P15,000
- December – P12,100
- Step 2 – Get the total or the sum of all the basic salaries you received for the entire year. In the example above, the total is P171,700.
- Step 3 – Divide the total by 12. Based on Moneymax, the result is the amount of the 13th month pay you must receive. In the case of the example stated above, P171,700 / 12 = P14,308.33
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