Guide on How To Compute 13th Month Pay for Eligible Employees in the Philippines
HOW TO COMPUTE 13TH MONTH PAY – Here is a guide for the employees on how you can check for the amount of your 13th Month Pay.
Undeniably, countless Filipinos await their 13th Month Pay every December. It is a huge opportunity for a lot of people to be able to pay the debts they incurred throughout the year. It is also a huge help with regards to the holiday expenses for the foods, gifts, and celebrations.
The 13th Month Pay is part of the Philippine labor law as it is covered under the Presidential Decree No. 851. The amount must not be less than one-twelfth (1/12) of the employee’s total basic salary within a calendar year as per the guidelines of the Department of Labor and Employment (DOLE).
How to compute the 13th month pay? There is a general formula in calculating this type of pay which is usually given before December 14. To get your 13th month pay, add all the basic salary you got within the year and divide it by 12 months.:
- Step 1 – Compute the total basic salary you got within the year.
- 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 – Add all the total basic salary you received for the entire year. As for the example above, the total is P171,700.
- Step 3 – Divide the total of your basic salary by 12 months. In the case of the example stated above, P171,700 / 12 = P14,308.33, your 13th month pay.
Undeniably, a lot of Filipinos spend their 13th month pay for the Christmas and New Year celebrations. However, not everyone is entitled for it. There are employees who get the 13th month pay while there are also those who get another pay and not the 13th month pay.