STEPS ON HOW TO COMPUTE YOUR 13TH MONTH PAY

Regardless of their designation or even employee status, all workers  are entitled to receive their 13th month pay if they at least worked for one month during the calendar year. If you are a new employee and you are not aware of it, it is time to rejoice now since you will be receiving this. In this article, we will be teaching you the steps on how to compute for your 13thmonth pay and of course, everything about it.

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Prior to that, let us first discuss what the 13th month pay is. The 13th month pay is a benefit in monetary form that is given to an employee before the 24th of December of every year. Its computation solely depends on the number of months the employee has attended work in a year. All establishments regardless of the number of employees are required to pay their rank-and-file employees the 13th month pay.

So how do you compute for 13th month pay?

The basic salary is the main variable in computing for the 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.

Let’s take this as an example:

1st payslip of the year

  • Monthly Rate: P15, 500.00
  • Daily Rate: P509. 59
  • Total Allowances: P1,250. 00
  • Hourly Rate: P63. 6986
  • Hours worked: 120 hours
  • Base Pay: P7, 643. 83

13th month pay payable = Base Pay/12

13th month pay payable = P7, 643. 83/12

13th month pay payable = P639. 99

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The basepay is P7, 643. 83. It is the first payslip of the year so there is no previous amount accumulated. The P639. 99 is the first amount that you can expect before the 24th of December when your company decides to pay its employees for the 13th month pay.

2nd payslip of the year

  • Monthly Rate: P15, 500.00
  • Daily Rate: P509. 59
  • Total Allowances: P1, 250. 00
  • Hourly Rate: P63. 6986
  • Hours worked: 128 hours
  • Base Pay: P8, 153. 42

13th month pay payable: P679. 45

The amount P679. 45 will then be added to the first accumulated amount which is P639 .99. In total, you have P1, 316 .44 that will be given to you as 13thmonth pay before the 24th of December. In simpler and shorter terms, the base pay that you get every payslip will be divided by 12. Add all of the payslips you receive continuously until the end of the year. Note that the 13th month pay shall be in the amount not less than 1/12 of the total basic salary earned by the employee within the calendar day.

Remember that the variables in computing this are:

  • Payslips
  • Number of months you have worked within the year

Now that you know how to compute for your 13th month pay, you can now be carefree because you can compute it for yourselves without having the fear that your employer might get some of the pay that you deserve.

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