Calculating 13th Month Pay in the Philippines: A Comprehensive Guide
Calculating 13th Month Pay in the Philippines: A Comprehensive Guide Discover How to Calculate 13th Month Pay in the Philippines: Everything You Need to Know! Employees accumulate earnings throughout the year, receiving their 13th-month paychecks at the end to boost motivation. This article provides a comprehensive guide on computing the 13th-month pay. How to Compute…
Calculating 13th Month Pay in the Philippines: A Comprehensive Guide
Discover How to Calculate 13th Month Pay in the Philippines: Everything You Need to Know! Employees accumulate earnings throughout the year, receiving their 13th-month paychecks at the end to boost motivation. This article provides a comprehensive guide on computing the 13th-month pay.
How to Compute 13th Month Pay?
December brings joy with its festive atmosphere, marked by celebrations and holidays. Amidst the gift-giving and family gatherings, the 13th-month pay serves as a valuable aid. This bonus, a testament to employees’ year-long dedication, is based on their basic salary and contributions to the company. In the Philippines, it’s a mandatory practice, while in some countries, it’s becoming a customary extra paycheck, calculated based on the average salary received throughout the year.
What is 13th Month Pay in the Philippines?
The 13th-month pay, established in 1976 through Presidential Decrees 851, ensures employees receive an extra month’s salary. This practice is mandatory in the Philippines, and the Department of Labour and Employment has confirmed that employees in the private sector will get an additional month’s paycheck before Christmas. According to the department’s advisor, those who have worked for at least one month are eligible for the 13th-month paycheck.
Regardless of rank, status, designation, or employment method, all eligible candidates, including those who have resigned, are on material leave, or have been terminated, will receive the 13th-month pay. As per the Presidential Decree, employees receiving a minimum of 1000 PHP monthly are entitled to this benefit. It serves as a welfare initiative not only for the employees but also for the entire household.
How To Calculate 13th Month Pay?