How to Compute Your 13th Month Pay (With Calculator and Spreadsheets)

Are you one of many tens of millions of Filipinos who’re eagerly awaiting their 13th month pay? Then you definately would possibly wish to know find out how to compute your 13th month pay to make sure that you get the total and precise quantity based mostly in your wage and size of service. This text gives you a fundamental overview of the 13th month pay, whether or not you might be eligible to obtain one, and find out how to compute your 13th month pay utilizing a method, calculator and spreadsheets.

The vacation season, which incorporates Christmas and New Yr, is a time for celebration along with household and family members. It’s additionally a time when persons are anticipated to spend cash on presents and meals, particularly through the Christmas Eve feast or Noche Buena. For a lot of Filipino households, nevertheless, the Christmas season represents a further expense and infrequently places a pressure on their restricted budgets. Some even resort to borrowing cash or pawning jewellery to tide them over through the holidays.

The 13th month pay law goals to handle this example by giving households extra cash to spend for Christmas and New Yr. So as an alternative of spending a portion of your wage on presents and different vacation bills, you should utilize your 13th month pay (in addition to your Christmas bonus) for that objective. Your common paycheck needs to be allotted for fundamental family requirements reminiscent of meals, lease, utility payments, transportation, insurance coverage, and tuition charges, amongst others.

We all know that not everybody may be very a lot accustomed to the 13th month pay and the proper approach to compute it, so we’ve give you this information that can assist you. Don’t fear in case you’re not good at math, as we’ve additionally supplied a free 13th month pay calculator and spreadsheet. All it’s important to do is to enter the required data and the computation might be robotically completed for you.

What’s the 13th Month Pay?

The 13th month pay is a compulsory profit or compensation given to rank-and-file workers within the Philippines on the finish of the yr, as mandated by Presidential Decree No. 851 signed by President Ferdinand Marcos on December 16, 1975.

In keeping with P.D. No. 185, all employers within the Philippines are required to pay their workers, whatever the nature of their employment, a 13th month pay not later than December 24 of yearly. The 13th month pay is the equal of one-twelfth (1/12) of an worker’s fundamental wage inside a calendar yr.

The 13th month pay isn’t the identical because the Christmas bonus, which is an altogether completely different type of compensation that an organization has the choice to reward to their workers for serving to to realize sure objectives and contributing to the success of the enterprise. Employers should not required by the federal government or by regulation to provide a Christmas bonus.

Staff can choose to divide their 13th month pay into two, with half the quantity to be obtained through the first half of the yr (January to June) and the remaining half through the latter a part of the yr.

Beneath the brand new TRAIN Law, the 13th month pay is topic to earnings tax if it exceeds ₱90,000. Solely the quantity in extra of ₱90,000 might be taxed. As an illustration, in case your 13th month pay is ₱100,000, solely ₱10,000 is topic to tax.

Who Are Eligible to Obtain a 13th Month Pay?

Solely rank-and-file workers or employees who should not in managerial positions are mandated to obtain a 13th month pay. Nevertheless, employers have the discretion to provide their managerial workers a 13th month pay. A managerial worker is somebody who has the facility and accountability to carry out administration duties reminiscent of hiring, suspending, transferring, dismissing and disciplining workers.

Staff who resigned or have been terminated from their jobs are additionally eligible to obtain a 13th month pay, supplied that they labored for the corporate or employer for at the least one month. Resigned workers will obtain their 13th month pay as a part of their again pay or remaining pay, which is often given inside one to 2 months after the date of resignation.

Who Are Not Eligible to Obtain a 13th Month Pay?

Not everyone seems to be eligible to obtain a 13th month pay. Section 3 of P.D. No. 185 states that the 13th month pay applies to all employers within the Philippines apart from the next:

• The Authorities and any of its political subdivisions, together with government-owned and managed firms, besides these firms working primarily as personal subsidiaries of the Authorities;
• Employers already paying their workers 13-month pay or extra in a calendar yr of its equal on the time of this issuance;
• Employers of family helpers and individuals within the private service of one other in relation to such employees; and
• Employers of those that are paid on purely fee, boundary, or activity foundation, and those that are paid a set quantity for performing a selected work, regardless of the time consumed within the efficiency thereof, besides the place the employees are paid on piece-rate foundation during which case the employer shall be coated by this issuance insofar as such employees are involved.

Which means workers of presidency establishments, departments, businesses and government-owned and managed company (GOCC) should not eligible to obtain a 13th month pay. The identical goes for freelancers, family helpers, contractual employees, and workers who’re paid on a fee foundation (e.g. insurance coverage brokers, actual property brokers).

P.D. No. 185 additionally has a stipulation that exempted distressed employers (presently incurring substantial losses) from giving 13th month pay to their workers with prior authorization from the Secretary of the Division of Labor and Employment (DOLE). Nevertheless, former DOLE Secretary Franklin Drilon issued new guidelines in 1986 that excluded distressed employers from the listing of exemptions.

How Do You Compute Your 13th Month Pay?

By figuring out find out how to compute your 13th month pay, you make sure that you obtain the correct compensation that you simply deserve as mandated by regulation.

The fundamental 13th month pay method is your month-to-month fundamental wage multiplied by your size of employment divided by 12:

Month-to-month Fundamental Wage x Employment Size ÷ 12 Months = 13th Month Pay

Month-to-month fundamental wage refers to all remunerations or earnings paid by an employer or firm to an worker for providers rendered. The fundamental wage could not embody cost-of-living allowances, profit-sharing funds, and allowances and financial advantages that aren’t thought of as a part of the essential or common wage, such because the money equal of unused trip and sick depart credit, additional time pay, vacation pay, premium pay, and evening shift differential.

Nevertheless, the aforementioned salary-related advantages could also be included within the computation of the 13th month pay if these advantages are thought of as a part of the workers’ fundamental wage by particular person or collective settlement, firm apply, or coverage.

If there are any absences, unpaid leaves, lates or undertimes through the month, the wage equal for these missed days or hours might be deducted from the essential wage earlier than calculating the 13th month pay.

Employment size is the variety of months labored in a calendar yr. For instance, if an worker labored from February till November, then the employment size is 10 months.

Maternity leaves are excluded from the 13th month pay computation. For instance, if an worker took a maternity depart for 2 months, solely the months during which she was current at work might be included within the computation. This is applicable even when the worker was paid through the maternity depart.

Let’s say that your month-to-month fundamental wage is ₱15,000 and also you have been employed with the corporate for the entire yr. Primarily based on the computation, your 13th month pay is ₱15,000.

₱15,000 x 12 months ÷ 12 months = ₱15,000

Now what in case you’ve labored for lower than a yr? In that case, you’ll obtain a prorated 13th month pay based mostly on the variety of months that you simply’ve labored for the corporate. In case your fundamental wage is ₱15,000 and also you’ve solely labored for 9 months, then your 13th month pay is ₱11,250.

₱15,000 x 9 months ÷ 12 months = ₱11,250

As a result of absences, unpaid leaves, undertimes and different deductions, your month-to-month fundamental wage will not be the identical all all through the calendar yr. In case you have these wage deductions, you possibly can compute your 13th month pay by subtracting the deductions from the month-to-month fundamental wage, after which including up all of your month-to-month salaries to give you your whole wage for the yr. Lastly, divide your whole wage by 12 to get your 13th month pay.

That will help you with the computation, we’ve supplied a 13th month pay calculator and an Excel spreadsheet that you’re free to make use of and share with anybody.

Use Our On-line 13th Month Pay Calculator

With our free 13th month pay calculator, you don’t must make your computations manually. All it’s important to do is to enter your fundamental wage for every month that you’re employed, together with any deductions (unpaid leaves, absences, undertimes, and so forth.), through the calendar yr, after which hit the Calculate button to find out your 13th month pay.

Obtain Our 13th Month Pay Excel Spreadsheets

In the event you don’t wish to use our calculator, we even have a free spreadsheet that can robotically compute your 13th month pay based mostly in your month-to-month fundamental wage and deductions, if any. Click on any of the hyperlinks beneath to obtain the Microsoft Excel file or to open in Google Sheets.

Microsoft Excel   Google Sheets

After downloading and opening the spreadsheet in Excel, click on “Allow Enhancing” so that you could edit it and add your data. Merely enter your fundamental wage, absences and late/undertime pay (if any) of their corresponding fields. The spreadsheet will robotically calculate the totals and your 13th month pay.

In Google Sheets, you can also make your individual copy of the spreadsheet by clicking File > Make a Copy. After creating a replica, you can begin getting into your information to compute your 13th month pay.

If there are any discrepancies or variations between your individual computation and your precise 13th month pay, chances are you’ll strategy your HR division to know the way they got here up with their computation. It’s potential that you’ve deductions that you’re unaware of or have tallied incorrectly.

Regularly Requested Questions

Remaining Ideas

The 13th month is certainly a giant assist to many Filipinos who’re struggling to make ends meet throughout these tough instances. It provides households extra cash for Christmas and New Yr to keep away from utilizing their family price range or financial savings on presents, events and different vacation bills.

Just remember to get the precise 13th month advantages that you simply deserve by utilizing the method for computation in addition to our free 13th month pay calculator and spreadsheet. Please be at liberty to share this text with your pals who may additionally have an interest to know their 13th month pay. Do tell us when you have any questions and options by leaving a remark beneath.

Disclaimer: Our on-line calculator is supplied for illustrative functions solely, and the knowledge obtained by utilizing the web calculator isn’t, and shouldn’t be taken as, authorized or monetary recommendation. We settle for no legal responsibility in any respect for any losses or liabilities allegedly arising from the usage of our on-line calculator.