What is 13th-Month Pay?
It is a mandatory benefit that will be given to the employees. In addition, it is a monetary benefit that is equivalent to the monthly basic compensation received by an employee. It is being computed according to the number of months within a year that the employee has rendered.
Who will receive it?
The persons who are entitled to receive a 13th Month Pay are the rank-and-file employees. Rank and File employees are the employees who don’t handle managerial roles in a company. For an employee to be eligible, they must have had worked for a month in a calendar year for the company.
If you wanted to compute your it, this is our Guide on How to compute 13th Month Pay
When should they receive it?
All the employees must receive it no later than December 24 every year. However, sometimes employers are giving half of it before December payouts and on or before the 24th of December. Why? because that might help the employees to plan for their holiday.
What if the employee resigned?
Even if the person resigned, they should still receive a 13th-month pay from their previous company and the amount that they will receive depends on the number of months they’ve worked for their previous company.
If an employee had worked in a company from January until October it means he/she has rendered 10 months, it should be computed like this.
Basic Salary: Php 9,000
A number of months worked: 10
9,000 (Basic Salary) x 10 (Number of months worked)
90,000 / 12 (Number of months per year)
If you receive your 13th-month pay make sure to use it wisely and spend it correctly, buy only necessary and important things.