Monday, November 14, 2011

13th Month Pay Questions and Answers

November is the month all these questions land in my inbox that I answer one by one. Each time, I have to do some researching of my own to validate my own understanding of how it works because I've not done HR admin work for quite a while. I decided that now may be the best time to talk about it and share some informational resources as you compute for 13th month pay both as an employer or employee. If you are paying for the first time, this post may be helpful as you don't want to start a wrong practice that you will have to change later. If you pay more than you have to now and then realize you're doing it all wrong, you will have a problem changing it back to normal due to the non-dimunition clause indicated in the law.

Please note that I am neither a lawyer nor an expert on the law, so if you find some of the information here as wrong or outdated, please let me know as I would gladly change it if there is a good basis. Let's get started.

What is the 13th Month Pay?

The 13th Month pay by definition according to the labor code means one twelfth (1/12) of the basic salary of an employee within a calendar year. Please take note of the because it has something to do with how you compute for it. The 13th month pay is mandated under Presidential Decree No. 851 by former President Ferdinand Marcos. Some changes were made in the revised guidelines issued during the time of President Corazon Aquino. Check the links for details on this law.

What is basic salary in the context of 13th Month Payment?
Again according to the labor code, basic salary include all remunerations or earnings paid by an employer  to an employee for services rendered but may not include allowances or monetary benefits which are not considered or integrated as part of the regular or basic salary. Examples of these are cash equivalent of unused leave credits, overtime, premium, night differential and holiday pay. The only reasons why these should be included in the computation is if there is an internal arrangement or collective bargaining agreement to do so.

Who are entitled?
All rank and file employees who have worked in the company for at least a month is entitled to a prorate 13th month pay. I will show you the computation later. By law paying managerial employees 13th month pay is an employer prerogative. Government workers, house hold workers (although this may change soon as a bill is already filed in congress entitling them to it.), those who are paid on purely commission, boundary, or task basis, and those who are paid a fixed amount for performing a specific work, irrespective of the time consumed in the performance thereof, except where the workers are paid on piece-rate basis in which case they are entitled.

How do we compute the 13th month pay?
The revised guideline says that "The "basic salary" of an employee for the purpose of computing the 13th month pay shall include all remunerations or earning paid by this employer for services rendered but does not include allowances and monetary benefits which are not considered or integrated as part of the regular or basic salary, such as the cash equivalent of unused vacation and sick leave credits, overtime, premium, night differential and holiday pay, and cost-of-living allowances. However, these salary-related benefits should be included as part of the basic salary in the computation of the 13th month pay if by individual or collective agreement, company practice or policy, the same are treated as part of the basic salary of the employees." take note of the line I highlighted. It says all earning paid for services rendered. Does it mean absences without pay and deductions due to tardiness and undertime  should be removed from the annual basic salary paid? I believe so but this is where I see companies differ in the way they compute for 13th month pay. If you follow this computation literally, the computation should look like this:

        daily wage X number of paid days = basic salary within a calendar year
basic salary within a calendar year/ 12 = 13th month pay

and the way to compute for a prorated 13th month pay if you only work several months(let's say 3) should look like this:

basic salary paid for 3 months/ 12 = prorated 13th month pay

If this is not how you compute for prorated 13th month pay, it is likely that you will pay higher than necessary. I've been trying to find a formula for computing 13th month pay for piece-rate workers but I couldn't find any. if you know the formula, please share here.

When must it be paid?
Law says it shall be paid not later than the 24th of December of each year. An employer may also choose to divide payment by paying the first half midyear and the rest on or before the prescribed date.

Is 13th month pay taxable?
If together with other financial benefits the total do not exceed P30,000.00, then it isn't taxable. If it exceeds the said limit, the amount in excess shall be taxable.

Other Considerations
What I discussed here are the minimum requirements of the law. If you choose to be competitive and want to give more than what is required as a matter of strategy, then you should be congratulated.  Please note however that what you do as a practice becomes nature of the benefit, meaning that if you reduce it reflect the minimum requirement of the law, you may be violating this provision:

Prohibitions against reduction or elimination of benefits
Nothing herein shall be construed to authorize any employer to eliminate, or diminish in any way, supplements, or other employee benefits or favorable practice being enjoyed by the employee at the time of promulgation of this issuance.
Additional Information:

195 comments:

Michelle Alba-Lim said...

Hi Ed,

Thanks for taking the time to discuss 13th month pay. This is, as you noted, one of the most "popular" topics year after year.

Your example of how 13th month pay should be computed works great for DWE (daily wage earners) however for monthly (salaried) employees the computation should be based on their monthly salary. For salaried employees entitled to vacation or sick leave, any paid absences are also usually included in the 13th month computation.

Even for DWE's, there is more than one way of computing the effective daily rate (e.g., for security guards and other workers who work more than eight hours a day). There is a section of the Labor Code's implementing guidelines that explains this (Sorry, I don't have a copy of the Philippine Labor Code with me here in the US so I can't give you details).

You might also want to let your readers know that the Labor Code provides for the 13th month to be paid in negotiable currency (i.e., check or cash). Some companies try to save by paying the 13th month in kind (e.g., company products, gift certificates, etc.) which is in violation of the letter and intent of the law.

I also know of companies who don't pay out the 13th month when an employee is on leave. Again, this is a circumvention of the law. As long as the person is employed, he or she is entitled to 13th month pay even if on leave.

Finally, even suspended employees are entitled to 13th month pay. The only time that a company may withhold 13th month pay is for preventive suspension due to suspected theft, fraud, or other offense involving financial loss that the company may attempt to recover (if the employee is found to be guilty of the charges).

I hope this helps.

Michelle

Anonymous said...

If my period of service will commence on December 1, will I be entitled to 13th month pay?

Anonymous said...

If my period of service will commence on December 1, will I be entitled to 13th month pay?

jpandmec said...

Hi sir Ed,

if an employee is on maternity leave (usually for 60days), should the employer subtract the 60days from the computation of her 13th month?

or if an employee is on indefinite leave (without pay), should the employer subtract the months he/she is on leave in the computation of his 13th month?

Rachel Libadia said...

To: jpandmec

Hi Sir/Ma'am,

If I may, Maternity benefits, like other benefits granted by the SSS, are granted to employees in lieu of wages and, therefore may not be included in computing the employee's 13th month pay for the calendar year.

hope this helps.

rachel

Anonymous said...

Hi Sir! Can you please give me some insights on how to compute for the 14th month pay? I've heard that some other companies may even provide up to "24th month pay". Thanks!

Edwin Ebreo said...

Technically, 14th month pay should be computed the same way as 13th month pay. However, I don't think there is a legal guideline on how to compute for bonuses, then the company can use another formula to come up with what constitutes your 14th month bonus.

Fred Aguelo said...

Hi Ed,

I would like to pose a question. Should an employee who abandons her job without prior notice and who refuses to give a 30day notice because she already has another job, be granted a 13th month pay?

I would greatly appreciate your opinion. Could you site a legal basis?

Thanks and best regards,

Fred

Anonymous said...

you may use this link o discuss further your 13th month pay.. http://www.laborlaw.usc-law.org/2010/02/21/13th-month-pay-law/

Anonymous said...

What if we never recieve the said13th month pay..who can help us? I am a private school teacher for almost 6years.but i never experienced recieving such bonuses.

Edwin Ebreo said...

You can inquire with DOLE NCMB. Check out their website here: http://ncmb.ph

Anonymous said...

Hello, hired po ako sa callcente for 3months training period, june till september, tpoas nag awol po ako, am i eligible for 13th mo pay po?! Yung sa frend ko naman po 1month sya work colcente dn po, na terminate po sya, may 13month din po ba sya?!

Thanks

Edwin Ebreo said...

I think you should ask them.

ma. elizabeth Jabonillo said...

Hi, sir!

You have explained previously and I quote: "Does it mean absences without pay and deductions due to tardiness and undertime should be removed from the annual basic salary paid? I believe so but this is where I see companies differ in the way they compute for 13th month pay." My question is, does it not violate Presidential Decree No. 851 (otherwise known as Thirteenth Month Pay Law), as amended by Memorandum Order No. 28, 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 year." Because in my understanding, if you deduct lates and the like to the basic salary, then that would mean you will come up with a lower 13th-month pay total. Hope to hear from you soon! Thank you!

Edwin Ebreo said...

Those who practice this kind of computation put emphasis on "...be in the amount not less than 1/12 of the total basic salary EARNED by the employee within the calendar year." This means they consider the days and times not worked and unpaid as unearned and therefore not a factor in the computation of 13th month pay.

ma. elizabeth Jabonillo said...

okay sir.. thanks for clearing it all up for me... :)

Anonymous said...

hi sir edwin!
just want to ask this, how would i compute my 13th month pay if im employed in our company for the whole calendar year but there was 1month na leave ako due to maternity...will i divide the total basic salary into 12 or 11?

cathy_sano@yahoo.com said...

HI SIR..

WHAT IF THE EMPLOYEE HAS A CONTRACT THAT SAYS "NO EMPLOYEE-EMPLOYER RELATIONSHIP".. IS HE/SHE ENTITLED TO RECEIVE A 13TH MONTH?

WHAT IF THE EMPLOYEE STATUS IS "ON THE JOB TRAINEE (oJT) IS SHE ENTITLED TO HAVE A 13TH MONTH??

Josie Esporlas said...

Hi...is a person who is on a "No work no pay" status entitled to a 13th month pay? How will it be computed?

Edwin Ebreo said...

@Cathy Sano, no, they're not entitled. @Josie Esporlas, yes. It's number of months/days worked in the year divided by 12.

Anonymous said...

Hi Sir, I started working last Sept. 17, 2012 up to now. Does September will be covered for the computation of 13th month, though it seems to be half month only? or it will only be 3 months time for my 13th month pay?

Anonymous said...

Hi Ed,
I have a question about this. Since this is my first time to hire from the Philippines.

I hired in September, and pay a per month salary.

So, if I understand correctly. I would pay 13th month like this:

#1. September - December = 3 months paid. (ie. 8,000X 3 = 24,000)

#2. (24,000) divided by 12 = 13th month pay.

#3. 13th month pay is- 2,000

Is this correct?

Thank you so much

Edwin Ebreo said...

If work started on September 1, you should be paying for 4 months, Sept to end of December. The formula is quite the same unless you decide to not factor in absences without pay

Anonymous said...

My employment status is OJT, and I worked for my company since September 10. Am I entitled to a 13th month pay or not?

Anonymous said...

Good Day!

I just want to know if example the company said that they are already bankrupt, and they have no means to give our 13th month pay, Are they allowed NOT to give our 13th month pay because they are allegedly bakrupt? Also, they mentioned that even if we go to DOLE, since our office is a corporation and not single propriety, they can just close the company and change their name and as if nothing happened. They will still not give our 13th month pay. Please let us know your thoughts in this.

Thank you.

Edwin Ebreo said...

This is not a legal opinion. If you are looking for one, find yourself a lawyer. If your company is bankrupt and decides to close, they still need to pay employees if and when they are retrenched. This includes payment of 13th month pay.

Anonymous said...

Good Morning Sir Ed,I want to ask if a security guard has a 13 month pay.I started on July 16 till now.Do you think that it has 13 month pay?Thanks.

Edwin Ebreo said...

Yes, you should receive 13th month pay

yoona park said...

Thank you sir.

Anonymous said...

hi sir, i started working on this government hospital as JOB ORDER from nov 16, 2011 to september 30, 2012 and was hired as regular NURSE I october 1, 2012. am i entitled to claim 13th month pay? my basic salary is 18, 549.. net pay 17, 143.36....

lion heart said...

Gud day po Mr Ed, this is GeronimoTabiano, Question lang po.
is a person who is on a "No work no pay" status entitled to a 13th month pay? How will it be computed?
7month na po ako sa Company Sir Ed.

lion heart said...

Geronimo Tabiano po... pwede po ba makahingi ng asample ng computation Sir... thanks po

Edwin Ebreo said...

The answer is yes. It follows the same formula as others:

Add all basic pay for the year
Deduct unpaid absences, late and under-time
Divide gross rate by 12
Deduct taxes as needed
= Total 13th month pay

Anonymous said...

Hi,

I got confused and I think this is the best forum to post the question. what if I got a salary of 15k from January to April then 18k from May to September then 25k from October to date. How can I compute for my 13th month?

Thank you. Hope to get your insight about this matter.

Anonymous said...

Hi sir ed.

Entitled po ba ako sa 13th monthpay nag work po ako sa company from april to september?

Edwin Ebreo said...

To all the questions about 13th month entitlements. Here are a few exceptions. If you these descriptions do not fit you, you are most likely to be entitled to 13th month pay:

Individuals who work as contracted consultants where there is no established employer-employee relationship are not entitled to 13th month pay.

Managerial employees in some companies do not receive 13th month pay. Companies who give 13th month pay to their managerial employees give them as a prerogative.

So, as long as there is a clear employer-employee relationship, whether you are regular, probationary or contractual employee, you are entitled to 13th month pay.

Edwin Ebreo said...

Hi,

I got confused and I think this is the best forum to post the question. what if I got a salary of 15k from January to April then 18k from May to September then 25k from October to date. How can I compute for my 13th month?

Thank you. Hope to get your insight about this matter

The answer:

Total all your basic pay from January to December and then divide by 12. If your company deducts unpaid absences and tardiness, then you deduct it and the remainder becomes your 13th month pay.

Anonymous said...

What if for example. You're on a contractual basis. Yung contract will end on April 2013. Tas biglang terminate ang contract ng dec11. pwede ba nlang hold ang 13th month? Tinaon kasi na bigayan ng 13th month ng dec14. Thanks.

roughlady said...

Hi po, question lang. Am i entitled to 13th month pay eventhough my boss classified me as fired? Eh voluntary naman ako umalis sa company. Pakisagot po, salamat!

Edwin Ebreo said...

Basta nagtrabaho ka sa isang kumpanya bilang isang empleyado, entitled ka sa 13th month pay. Kahit pa isang buwan lang yon, at kahit pa terminated ka. Unless meron kang financial accountability at hindi nila nirelease ang 13th month mo dahil pinangtapal nila sa financial accountability mo. They still need to inform you about that.

yanda ganda said...

sir ed. i'vr been working sinces last yr nov. 10 2011 until now. i received my 13th mnth last monday and they started the computation just when i got regular. from aug-dec. i receivef 4582 :( i told them already about thr computation but they said that PROBATIONARY PERIOD IS NOT.INCLUDED. i called the DOLE hotline and said its already a violation. my company said that the computstion is subjective and it depend on their company. what should i do? i want to FIGHT for this.

my basic salary from nov-july is 9500. aug-dec 10150. im working here at q.c fairview. sm supermall.gold jewelry shop. its a business. we are private right. PLS HELP :(

Anonymous said...

my start of my probationary period was last july 2012. and now i receive a contract that ive signed for end of probationary employment tii dec 19, 2012. now my concern is will i get my 13th month pay this december or it it will be on hold and just gave it in my back pay.?

Anonymous said...

how about working students who spend 100hours a month? Entitled for 13th month pay?

Hope to get an answer...thnx

Edwin Ebreo said...

I believe working students are entitled.

Anonymous said...

Hi,
I'm a substitute teacher in a public school. my appoointment started last july 9 and will end this dec 21. Am I entitled for a 13th month pay?

Thanks

Edwin Ebreo said...

To know more about who are entitled and who are not to 13th month pay, please check this link: http://www.chanrobles.com/revised13thmonthpayguidelines.htm#.UM6ltm9f25E

im_olive said...

Hi would like to ask if pag Monthly Basis ba kailangan bawasan yun 13th month nun number of days na di nila pinasok...

Anonymous said...

Hi Ed
I'm working on a BPO company, at this time I have 30 suspensions but management is not imposing it to me, they're just taking my leave credits to lessen it. Will this affect my 13th mo pay?? until now hindi pa rin binibigay sa akin ito... anyways I still have days to count before 24 pero yung mga colleagues ko na ok ang records ay nakareceive na..

Hope you can enlighten me...

Edwin Ebreo said...

The fact that you have not been absent for work despite your suspension should not affect your 13th month pay. You should have received it already if others have received theirs.

Edwin Ebreo said...
This comment has been removed by the author.
Edwin Ebreo said...

@Im_Olive,

Some companies who declare no-work-no-pay policy deduct unworked and unpaid days from 13th month pay.

Anonymous said...

Hello sir,

What if an employee is under training for 2 month after he/she completed the 1st month would he/she be entitled for a 13th month pay?

Thank You.

Edwin Ebreo said...

computation of 13th month starts at first day of employment according to contract if you are new to the company.

Anonymous said...

Good day sir Ed!

Tanong ko lang po if entitled ana ako for a 13th month pay? Na hire po ako nung August 2012 and ako pa lang employee nila. Pinapa register pa po ang company name. Thanks!

Regards,
Joan

Edwin Ebreo said...

opo, entitled ka

Hannie Lobetana said...

Good day Sir Ed,

Tanong ko lang po sana,I'm working in a BPO industry and started last July 24,2012. Our pay-out is every 10th and 25th of the month and so my first pay was given last Aug.10. As I try to seek computation from our HR they said I should total my 1st pay(P1168.00)and the following pay-outs (P6428) up to December.

Tama po ba ang computation nila kasi to my understanding basic pay(P12,857.00)/12 * number of months in the company.

My computation: 12,857/12*5= P5357.00

HR: 59,025/12 = P4918
-dahil daw Aug10=P1,168.82 and then the following pay-outs til Dec. (P6428.00)


Hope you can share your thoughts on this..

Thanks Sir

Edwin Ebreo said...

Oh, no! math problem! Next question please!!!

Kidding aside, depending on cut-offs, your HR is computing your pay based on earned compensation. Malamang tama ang computation nila. your formula lacks something. It should be ((monthly pay/12)* no of months worked)less unworked and unpaid days. HR's formula is (total compensation paid/12)X 5 which is practically the same.

Let me tell you, however that my mathematical intelligence is practically nonexistent and I am doing this in a hurry. Ask your HR why you have a different computation to help you understand the discrepancy. I have a very good feeling that they are not trying to cheat you out of your fair share. :)
Merry Christmas and happy new year!

Anonymous said...

Hi Sir,

May i know the computation if the employee had under time but he is on a monthly paid base? Lets say he work from 8am-2pm, but regular schedule is 8am-5pm. Is it counted as half day only or it has different computation for under time? Thanks! happy new year!

Anonymous said...

Hi Sir Ed,

Good afternoon!

Question lang po if makakareceive ba ako ng 13th month pay kahit nag start ako sa company ng December 10?

Maraming Salamat Po..

Anonymous said...

Hi, would just like to ask if I am a Consultant hired by a non-profit institution for a specific project or period, would i be entitled to a 13th month pay. thanks

Edwin Ebreo said...

If you were contracted for the project and are not necessarily an employee, you are not entitled.

Edwin Ebreo said...

malamang hindi for the year. Companies normally have cut-off period and you are most likely outside the cut off. -

Hi Sir Ed,

Good afternoon!

Question lang po if makakareceive ba ako ng 13th month pay kahit nag start ako sa company ng December 10?

Maraming Salamat Po..

Anonymous said...

Hi Sir!

Good afternoon!

Ask ko lang po, un dati ko pong employer di pa rin po binibigay un remaining salaries/backpay ko po. 7 months na po ako follow-up tpos sabi lang un may-ari daw wala pa signal. pangako nila 3 months after ibibigay. nagsilbi po ako sa kanila for 4 years.

ano po ang mabuting gawin?

Maraming Salamat po! Patnubayan po lagi kayo ng Panginoon.

Edwin Ebreo said...

Sabihin mo sa kanila, magsusumbong ka sa DOLE. Pag di pa rin nagbigay, tuluyan mo.

Anonymous said...

Sir, question lang po, pano po ang computation ng monthly paid na nag undertime? regular time po ay 8-5, then ng undertime po ng hnggang 2pm? pano po un? salamat po Sir.

Edwin Ebreo said...

depende kung anong factor ang ginagamit ng HR nyo. Let's assume 314. The formula is ((month pay X 12/ 314)/8)* number of undertime or late hours.

So: Let's say 12,000 a month ang sahod

12,000 X 12 = 144,000
144/ 314 = 458.60
458.60/8 = 57.32
57.32 X number of later or tardy hours = Deduction

Anonymous said...

Sir, ano po yung factor n 314? pano po yung nku2ha Sir?
Thank u po ule..

Anonymous said...

Hi Sir,

Are we entitled for service incentive leave pay khit po 3 lang po kme na employee? Thank you po.

Anonymous said...

hi sir,

Ask ko lang po if it is legal to include the 13th month pay as part of the annual salary?

Anonymous said...

hi sir,

Ask ko lang po if it is legal to include the 13th month pay as part of the annual salary to compute for the monthly and daily salary? we are being paid every two weeks (26x per year), i am working in a call center

Anonymous said...

Hi Sir Ed,
ask ko lang... nag wowork po ksi ako as Food Service Consultant sa isang retail company,, ang gsto ko lng po sana malaman kung entitled ba ang isang consultant sa 13th month pay? First time ko kasi.. pumasok sa consultancy agreement.. bka ksi umaasa ako na may 13th month pay hndi pala entitled ang isang consultant curious lng po ako salamat.

Edwin Ebreo said...

normally hindi kasama sa package ng mga consultants ang regular benefits including 13th month pay. this is unless it is expressed in your contract that you are going to be given one

Edwin Ebreo said...

yes

Edwin Ebreo said...

but do they pay you an actual 13th month pay?

Coaching in Singapore said...
This comment has been removed by a blog administrator.
Anonymous said...

Hi, Sir!
I was employed from March 5 til Dec 5th 2012. I received my 13th mo on Nov 30. My resignation was submitted by my superior on dec 15th. Our payroll is on a real-time basis. I got paid for dec 15th but I was just at the office until dec 9th with 5 days of absences. I have a tax refund with my previous company. They are now holding my COE and ITR because they say I still have a balance with them because I did not complete the whole month of december for my 13th mo pay so they are asking me to return half of it before issuing me my COE and ITR. let's say i was getting 25000/mo with them,I started in March but I did not receive the prorated amount for my 13th month. I only got a portion of it which was just 13k. Please advise. Thank you.

Edwin Ebreo said...

What is your question?

Anonymous said...

Thank you for the info. When you say leave meaning vacation leaves, sick leaves,maternity, hospitalization, even leave of absence, right? What should I do if my former employer did not pay me for the full amount of 13mo because they were saying that I was on LOA for 2mos in that calendar yrar. And they are demanding me tk return half of the 13mo pay back. Is this legal? I hope to hear from you asap as they arr trying to file cases against me on this. Thanks!

Anonymous said...

Sorry, sir Ed. This is for the above. They are drmanding that I give back half of my 13mo pay since it was computed til end of Dec but resigned middle of the month, is this legal? They did not give me the supposed full amount of my 13mo and that my tax refund is not enough to cover the absences they say I occured. I was on LOA for 2mos they did not include that in my 13mo pay and the absences were the days I was rendering my notice. Thanks!

Edwin Ebreo said...

Ask them to give you a document that shows the computation for what they gave you and what you should really receive. If it doesn't match the computations shown here or the Labor Code, go to the DOLE and complain.

Anonymous said...

Hello!

Just a quick question.

Is there any way the company can avoid paying 13 mo pay? Maybe due to grave bankruptcy or insufficient funds?

Edwin Ebreo said...

Even if you have to retrench people, you still have to give them their 13th month pay.

Raven said...

Our employee has her maternity leave for two months with out pay but filed a maternity reimbursement i think in SSS.. will she still be entitled for 13th month pay?

Raven said...

got correction with my post!. The question should be, "Will the 2 month leave without pay be credited in computing for 13th month pay?

Anonymous said...

Hi Sir,
my co-worker work as a contractual base from july (2012)-january(2013)after that di sya pinatigil sa pagpasok sa trabaho and the company give him another contract as a "PROJECT BASE" covering January-May of 2013. After nun di na sya ulit binigyan ng contract but until now pumasasok pa sya. Is he entitled for 13th month pay?

Anonymous said...

Hi sir ask ko po if si employee on leave for 10 days w/o pay (monthly salaried emp) exhausted na leave nya, sa computation po ba ng 13th month pay nya ibabawas ko ung 10 days nya?

thank you

lynne said...

I am working in Korean company... They told me that they dont give 13th month pay,,because they cant afford to give all the employees at once...instead they included the 13th month pay in our monthly salary..is it possible ba??? or this just their way para hindi makapag bigay ng 13th month?? please e mail me kasi I want to know if its in the law rin ba...thnks lynnecruz_28@hotmail.com

Edwin Ebreo said...

If they show in the salary computation that you are paid 13th month pay every month, i don't think it violates the law.

Edwin Ebreo said...

Pwede

Edwin Ebreo said...

Yes he is

Edwin Ebreo said...

Pwedeng hindi

Anonymous said...

good am

hi maginquire lang po ako , hindi po kase ako nakareceive ng 13 month pay for the year 2011 and 2012..humina po kase yung kita ng company nun kaya di nabigay..pero ngayon po ngchange company name po kme but same owner..my habol pa po ba ako sa 13 month pay ko? gusto ko po sna makuha yun..

Anonymous said...

Hi Sir,

I just want to make sure I am not confused and tama po understanding ko.

To compute 13 month pay for monthly paid employees,absences and tardiness should not affect the computation. only if interrupted and work for the whole year due to leaves (maternity, sick leave..etc) don lang pwede ipro-rate computation.

and to make a simple sample computation :

A. if worked for the whole year (12mos)

13th mo. = 15000x 12/12

B. if worked for 10 mos only (2 mos on maternity leave)

13th mo. = 15000x 10/12

if any of above computations, deductions on tardiness/absences should no affect the amount of 13mo pay due to employee

tama po ba?

Anonymous said...

Hi Sir,

I just want to make sure I am not confused and tama po understanding ko.

To compute 13 month pay for monthly paid employees,absences and tardiness should not affect the computation. only if interrupted and work for the whole year due to leaves (maternity, sick leave..etc) don lang pwede ipro-rate computation.

and to make a simple sample computation :

A. if worked for the whole year (12mos)

13th mo. = 15000x 12/12

B. if worked for 10 mos only (2 mos on maternity leave)

13th mo. = 15000x 10/12

if any of above computations, deductions on tardiness/absences should no affect the amount of 13mo pay due to employee

tama po ba?

Anonymous said...

Hi Sir,

Sir ask ko lang po kung obligado ang isang company mag bigay ng 13th month pay...ok depende sa company owner?

salamat po...

Edwin Ebreo said...

Obligado po

Anonymous said...

hi sir. I am an operations manager.. but all directives are coming from the owner ng shop... as in all.. i just supervise the employees and relay communications to the owner kasi she's outside the country... am i entitled po b sa 13th month pay?
I am paid on a 'no-work, no-pay' basis.. P500/day if whole day and paid per hour just like the other employees.. Am i entitled po b sa 13th mo pay?

Edwin Ebreo said...

You may or may no be paid 13th month on the account of your title. It all boils down to your agreement or contract with the owner. Some companies give their managers 13th month pay others don't.

Anonymous said...

GOOD AFTERNOON SIR, tell ko po muna yung situation before my question, nung from dec 28 2012 to jan 4 2013 i started my training for 7days as dinning then i pass the training nman po then i signed an employment contract good for 5 months only, then end of my contract is june 5 2013, then that time failed po daw ako sa evaluation so before they give me another contract i must pass first the 1 month observation till july 5.. but i decided po na mag transfer s kitchen then i talk to our chef na mag transfer, then chef said i must finish my 1 month observation, so be it tinapos ko then i pass the evaluation... then i transfer na po sa kitchen but before i must training daw for 2 months sa kitchen dishwasher first then butcher, they give me a contract good for 2 months with NO 13TH MONTH PAY AND NO OVERTIME PAY... that was july 5 to sept 5 i start my training 12pm to 12am sometimes.. then chef said i cant pa daw so they give me another 2 months.... thats it sir, now question from june 5 to oct 31 do i have chance po ba na magkaroon ng 13th month pay? ang alam ko kasi 13th month pay is mandatory?

Anonymous said...

Kung wala kang employment contract ang meron ka ay training agreement lang.medyo malabo amg iyong 13th month pay. However, you should question your decisions on your employment
This will probably put your job in danger so I suggest that you consult a lawyer first.

Anonymous said...

sir ako po ulit to... what if po kung kinakaltasan po ako ng SSS PAG IBIG AT ETC Khit n training agreement lng pinirmahan ko, still wala prin po ba akong 13th month pay? wala po ba akong laban?

Jedi Dicdican said...

i started my job here as acctg asst. last May 28, 2013. The company usually giving 13th month pay Nov 30.

i would like to seek advice if it is correct that they compute my 13th month at pro-rate 6/12?

Anonymous said...

sir ed, i just want to be clarified if a government employee resigned from service may 31 but was later on reemployed july 25 of the same year, will he.she be given the 13th month pay?

Anonymous said...

Hi sir, govt employee po ako. Nung may 2013, bgayan ng bonus pro ng ngcheck ako, wla mn lng cla notice n la ako mttnggap. Ang sbi, hinold daw kc dhil s absences without pay ko. And thry told me n s novmbr, mttnggap ko daw ng buo un basta wg lng mg aabsent.

** pwede po ba nilang di ibgay skin yun 13 month ko?

And ngyon, I received notice of suspension, will it also affect my bonus??

** baka kc di nla ibgay ult. Pwde po ba un? Mrming slmat

Twinkle Lopez said...

Hi Sir,

ask ko lang po, ang anak ko, ay nag work July 2013 on a Project based contract for 3 years sa General Sales Agent ng isang Airline. She asked if they are entitled sa 13th month pay? No work, no pay din sila. Thank you

Twinkle Lopez said...

Hi Sir,

ask ko lang po, ang anak ko, ay nag work July 2013 on a Project based contract for 3 years sa General Sales Agent ng isang Airline. She asked if they are entitled sa 13th month pay? No work, no pay din sila. Thank you

Anonymous said...

What if an employee was on SL for the first week of January, then went on awol after that, and final submitted an official resignation February of the same year and was acknowledge by the HR dept. What would be the employee's entitlement with regard to getting a prorated 13th may pay?

Edwin Ebreo said...

Meron kang habol. Magreklamo ka sa DOLE. Sorry for the late reply.

Edwin Ebreo said...

In that case I suggest that you complain in DOLE. May habol ka dyan.

Edwin Ebreo said...

No. The person didn't work.

Edwin Ebreo said...

Project based employee or contractor? Look at what the contract says.

Edwin Ebreo said...

Magsampa ka ng grievance sa employee association.

Edwin Ebreo said...

Yes

Edwin Ebreo said...

Yes

Edwin Ebreo said...

Tama po

Anonymous said...

Good pm po! Ask ko po if were not entitlled to received 13th month pay if we are hired july 2 until this presen time. We are working at hospit subsidized by local govt. After the local election nagkaroon ng transition dahil bago ang mayor and dahil under kami sa cityhall from casual employee naging contractual kami andsabi nila considered newly hired kami kahit continous kami nagtratrabaho nilagay pa din nila sa contrata namin na july 2-sept 30 lang. Now sinabi po nila na wala kaming matatanggap na 13th month pay dahil hindi continous contact namin na imbis na july 1 e july 2 nakalagay sa contract namin. Tama po ba na wala kami matanggap na 13th month kahit diretso naman pinasok namin at yun ang nilagay nila sa contratang pinapirmahan samin? Pati cash gift namin na 2,500 dapat e 2000 lang ibibigay nila? Salamat po.

Edwin Ebreo said...

Magreklamo po kayo sa DOLe or sa Civil Service. Mali yung ginagawa nila.

Anonymous said...

thank u po sir ed... follow up question lang po...tama po ba na sabihin nila at ireason out smin na wala raw budget ang city govt kaya kulang ung matatanggap namin na cash gift? at pede po ba mkahingi ng sample computation na pede q matanggap na 13th month pay naend lang po contract q ngaung october. yrs na po aq nag wowork. thank u po and godbless.. :)

Anonymous said...

sir ed, i just want to be clarified if a government employee resigned from service may 31 but was later on reemployed july 25 of the same year, will he.she be given the 13th month pay?

Jonathan Punzal said...

I am a regular employee, bu my employer split my basic salary and professional fee, but the tax they are deducting is based on the total of this 2; but when i receive my 13th month pay, it is only based on my basic pay. Is that possible? Should my professional fee be exempted from 13th month pay?

Edwin Ebreo said...

That's a weird arrangement but not necessarily illegal as long as taxation is right.. Anyway, yes, we are taxed based on our gross compensation but our 13th month pay is based on basic pay.

emman almeda said...

Hi Ed,

I am from a rural bank here in Cantilan, Surigao del Sur. Our practice here is we re lease 50% of the 13th month every 2nd week of May and the remaining on the the 2nd week of November. We have an employee who received already his 50% 13th month in May. He had an approved leave of absence starting April and on May until October he was already on leave without pay. Is he still entitled to receive the remaining 50% of the 13th month pay?

Thank you!


emman

romar boreba said...

Hi,

Am I Entitled to 13th month pay although I'm not paying taxes and contributions? My company said that I won't get any that pay..Is it mandated by law? Please answer po. Thank You

Valerie Palmes said...

Hi,

Good day!

Just wanted to ask about the 13th month pay computation. I started working in our company July of this year and our manager is not including Dec in her computation.IT should be 6 months right? Including December of this year even the 13th month pay will be given early let say November. Kindly compute my basic salary is 17,500 a month, I start July and still working

Edwin Ebreo said...

Valerie, there's a formula somewhere in the comments above. Feel free to use it to compute your 13th month pay.

dinz said...

gud eve sir,
just want to ask, my wife has been employed through an agency for 7 years till now. Now that we're married, We agreed that she resign from her work and take care of a small business I have in mind. Is she entitled for a back pay or a separation pay? thank u and more power

Edwin Ebreo said...

Aside from 13th month pay and unpaid workdays, she's not entitled to anything else legally unless her company decides to give her something extra due to her loyalty.

Edwin Ebreo said...

Normally may cutoff na Nov 30 so malalmang the following year na.

Edwin Ebreo said...

How come you're not paying taxes and contribution? Are you a contractor or a consultant? If you are a bonafide employee of the company, you are entitled to 13th month pay.

Johneth Pabelic said...

hai po..I am working at a private company in an Industrial firm. In our 13th month pay, they are deducting all our late & abcences. Is it legal?? if legal, may i have it's labor code?

Anonymous said...

Hi sir Ed, good things I found this site of yours I just want to ask if how to compute the 13 month pay? Coz by boss don't clarify it to me clearly. She just gave me a money same amount as my monthly salary. Is it proper? Please I need a clarification about this, this one bothers me a lot. Please email me also hemisakura@yahoo.com Thanks God Bless

Edwin Ebreo said...

Not anymore

Edwin Ebreo said...

Yes, it is. Read the article.

Edwin Ebreo said...

Read the article and the comments. There are several formula and examples there repeatedly mentioned.

Anonymous said...

Hi po goodevening, ask ko lang po, 1 year ko na po sa work ko ang sahod ko is 9,000. ang nakuha ko pong 13 month pay is 9000 din tama lang po ba yun, trin-nay kong computin... tama po ba pag compute ko?

9000 x 12 = 108,000
108,000 / 12 = 9,000

9,000 is my 13 month?

please help me with this . Thanks and God Bless

Anonymous said...

ako po yung may 9k na sweldo, wala naman po akong kaltas sa mga absences ko and no classes.

Edwin Ebreo said...

Tama naman

Anonymous said...

Thank You so much Sir Ed..

Anonymous said...

Hi Sir,
Ask ko lang pano, pano ang pag compute ng 13th mo. kung halimbawa 6 mos sya na per day, tapos 5 mos pa lang sya na per month na yung salary nya?
Thanks you in advance..

Edwin Ebreo said...

Pareho lang po yon. Gagawin nyo lang monthly ang computation

Oriiko.Bhajoy said...

Hi po..
ask ko lang. my boss filed 1month (LOA) leave of absence for me due to my sickness.. and our 13month pay will be given on the 13th of december.. since ill be in loa starting tomorrow december 7, pwede po bang mahold ung 13month ko? wat if mahold po ng company ko un?.. may habol po ba ako?

thanks!

Edwin Ebreo said...

Hindi nila dpat ihold ang 13th month pay mo. You should receive it.

Akolangnamanpo said...

Hello Sir Edwin!

i just wanna know how to compute this.

Started on October 24.. monthly basis din po ako pero kun iccompute xa, hindi po xa diba saktong 2 months sa 13th month pay? can you help me how to compute this? Thank you, sir!

Anonymous said...

hi sir,
ask ko lang po im a 10 months private school instructor makakatangap din po ba ako ng 13th month pay????

Anonymous said...

dear sir/mam,

querry po. i got operated june 4 this year and back to work aug 5 as per doctors recommendation. for two months my company did not pay me my salary but sss did in their own rate. my question is that, is it legal na ang computation ng 13th month ko ay ten months lang dahil sss naman ang nagbayad ng sweldo ko for two months? salamat po na marami sa sagot

Edwin Ebreo said...

Kung saktong two months ang binigay ng employer mo that means hindi nila kinonsider yung pinasok mo ng october. Kung kinonsider nila yon, dapat kang dagdag na kaunti. Itanong mo sa hrd kung pano nila kinompute.

Edwin Ebreo said...

Tama po ang employer nyo.

Edwin Ebreo said...

Opo, makakatanggap po kayo!!!!

tintin said...

hi po.

ask ko lang po kung may 13th month pay po ba kapag nagsimula ka sa work mula oct.20 ??

Edwin Ebreo said...

Yes. The typical cutoff is nov 30

Anonymous said...

sir ed, quick question, naterminate po ako last wk ng nov, 9 mths ako nagwork, makukuha ko b ths december ang 13th mth pay ko or masasama xa sa back pay ko?

Edwin Ebreo said...

Malamang isama na yan sa backpay mo. Hula lang yon ha. But you should get it one or another.

Edwin Ebreo said...

Malamang isama na yan sa backpay mo.

Paris Gonzales said...

katulong po ako sa tindahan. mag isa ko lang and working for almost a year. ma 13th month pay po ba ako?

Edwin Ebreo said...

Kung kayo man po ay regular employee or kasambahay, entitled po kayo sa 13th mo pay. Chek nyo po ang kasambahay law.

Anonymous said...

ask ko lang po for a construction company entitled ba sa 13th month pay yung mga carpenters or helpers? staff engineers na project based?

thank you and looking forward for your answer to enlighten me regarding this matter

Edwin Ebreo said...

Opo

ssf_mom said...

Hello Mr. Ed,
I wanted to ask how do you compute for the 13th month of an employee who works on a per piece rate? We are in a BPO business which processes documents on a per piece basis. We are paid by the number of documents we finish. Thanks in advance.

Edwin Ebreo said...

Total amount paid for the calendar year divided by 12. Or 1/12 of the annual basic compensation.

Anonymous said...

Hi Sir Ed,

Just want to know if kelan nagiging taxable ang 13th month?

Thank you in advance.

Edwin Ebreo said...

Only 30k is exempt from tax and that includes not just the 13th month pay but also incentives and other cash benefits. Anything more than that will be taxed.

Joana Ruth Maunahan said...

Hello sir.Ed magandang tanghali po

itatanung ko lang po sana kung may matatanggap akong 13month pay kahit nung June 10,2013 palang po ako naemployed? kahit na hnd pa po msyadong nakita ang company n pinsukan ko??

maraming salamat


Regard,
Joana

Edwin Ebreo said...

Opo. Pakibasa yung article. Nandon po ang sagot.

Anonymous said...

Hi! Good day po..just want to clarify lng p about backpay and 13th month pay po..i''ve been work po in a company which is under agency..and every 5 months we end our contract and we sign for a new contract,clearance and quitclaim to receive our backpay which is they called 13th month pay..so ngaung december po wla kming 13th month pay na nareceive ksi sabi po ng employer nmin ung 13th month nmin un n daw po ung binibigay nila every 5 months pero sabi po nila na dapat po may 13 month po kmi...un po sana gusto q iclarify..may habol po b kmi..? ngstart po aq nung nov. 27, 2012 to december 4, 2013 po...sana po matulungan nyo po aq sir ed..thanks po..

Edwin Ebreo said...

Karerenew lang ba ng contract mo? Kung oo, maari nga na nabigyan ka na nila ng 13th month pay. Pero gusto kong ipayo na isumbong mo sa DOLE ang employer mo dahil dapat regular ka na ngayon. Bawal ang ginagawa nila na nirerenew ang kontrata mo kada limang buwan.

Anonymous said...

Yes po ngrenew po aq pero nkatatlo n po aqng contract kaso d q na po tinapos ung pangatlong contract q bali dun sa dalawang contract q po lng aq may backpay ung last 2 months q po wla n qnareceived..so panu po yun? Wla po aqmakukuha nun?

Edwin Ebreo said...

Dapat may 13th month pay ka pa rin. Singilin mo sila.

Anonymous said...

Ok po..pero kelan po start ng computation ng 13th month q? And panu po kng hnd tlga ibigay ng company po ung 13th month ksi po un po ang cnsbi nila?anu po pwede qng gawin?

Anonymous said...

Hi Sir Edwin..
tanong ko lang, nagta-trabaho kasi ako sa isang construction company as secretary, 1 month ako d pumasok sa trabaho kasi nakasagutan ko ung anak ng boss ko.. i was advise by my boss na magpahinga muna kasi pinagiinitan na ko kahit nung wife nya because of that...

now, pinapasok ulit ako ng boss ko, pero until now nagngingitngit pa din sila mag-ina saken... ayaw din nila ibigay ung last na sweldo ko pati na din 13th month pay ko. wala daw ako karapatan maghabol ng 13th month pay at sweldo ko kasi nga daw antagal ko d pumasok... what po ba pwede ko gawin?

Thanks po... :)

Anonymous said...

good morning po ...nag start po me feb 2013 then nag end of contract po ako noon dec 31, 2013...then ung last salary ko until now po wala pa dapat daw po pipirma muna ako nag quitclaim. binigyan po nila ako nag 13 month pay noon dec 2013. now nag ask po ako nag back pay sabi ung daw po ung 13 month pay ko ..then ask ko rin po sana ung separation pay ang alam ko kasi mag kaiba ung separation pay sa back pay or 13 month pay ...please help po

Anonymous said...

by the way they renew po ung contact ko noon june 5, 2013.. may makukuha po ba ako nag separation pay ..please help po

Anonymous said...

end of contract nga po ako makakakuha po ba ako nag separation pay ?????? please help po

Edwin Ebreo said...

Wala ka na pong separation pay. Para lang po yon sa nareretrench

Edwin Ebreo said...

Magreklamo ka sa DOLE ma'am. Wala silang karapatan na widthold ang 13th month pay mo.

Dondon said...

Hi Sir Ed,

Question: If I receive 13th month pays from 2 different employers, and neither exceeded 30,000, are both exempted from tax? Or, should it be totaled and if it exceeded 30,000, the excess will be subjected to tax?

Thanks.

Edwin Ebreo said...

I'm no expert on taxation but I think if you file your income tax return and it combined it shows that you received more than 30k, you will have to pay tax.

Edwin Ebreo said...

I'm no expert on taxation but I think if you file your income tax return and it combined it shows that you received more than 30k, you will have to pay tax.

Gilden Cequena said...
This comment has been removed by the author.
riyah nolasco said...

hi sir in our company they give our 13th month by half on may and December.

I was hired November 25, 2013 and didn't make to the cut off for the 13th month. and now we will be having our 13th month pat i would like to ask how will be my 13th this may my salary is 10, 135 per month

Mayette Dolleton said...

HI Sir Ed, just want to know if the computation of 13th month pay posted here in your blog is the same computation used for private school employees? I just want to know coz most of our employees particularly faculties are used to know that the 13th month pay
is the same amount of the whole month salary example if the faculty earns 8,000 a month her 13th month pay is also 8,000 pesos. How true is this? or should we stick on what the DOLE implements on the subject?

Anonymous said...

Hi Sir Ed. Tanong ko lang po, gaano po katagal nila dapat ibigay yung 13th month pay ko? I've worked in my previous company for almost 3yrs. I resigned on March 1, until now wala pa din pong binibigay saken. Cleared naman po ako sa audit at wala pong naiwang utang or loan. Pati po lahat ng reports ko, nai-turn over ko po ng maayos. Nakapagpa-clearance na din po ako.

Anonymous said...

What if in 2014, I rendered less than 30 days work? Let's say I worked for 10 days lang then I resigned. Am I still entitled to 13th month pay? If so, how do I compute?

Thank you.

Mark Alvin Palpallatoc said...

Sir may expiration po ba ang 13th month? Kasi naterminate ako l
Sept2013 , may hanol pa bo ako kahit almost 1 year ko na hindi naasikaso?

Edwin Ebreo said...

Claim it Asap. Baka iforfeit nila. Dapat hindi pero minsan di mo masabi kung anong legal action ang gawin nila.

Edwin Ebreo said...

No. You should have worked at least one month.

Edwin Ebreo said...

Asap yon. Dapat nakuha mo na by now.

Larry Planilla said...

Hi Sir Ed,

Sir possible po ba na only a certain number of employees lang makakareceive ng 14th month pay?

It's not yet final, wala pa naman announcement pero balita kc na employees that are working for 5 years lang s company namin yung makaka-receive ng 14th month

Edwin Ebreo said...

Pwede po. Prerogative yan ng kumpanya.

Anonymous said...

hello Sir,

Im a probationary employee and I'm working for the company for 3 months since June 27, I'll be filing my maternity leave by the end of October. Will I be able to be granted a 13th month pay??

Thank you for your immediate attention

Edwin Ebreo said...

I believe you should be entitled to the equivalent to the number of months that you've worked.

Anonymous said...

Thank you for the prompt reply.
Another question is that, will I be terminated since I am still under probationary period if ever the company won't accept my maternity leave request?

Edwin Ebreo said...

You are entitled to a matermity leave. That shouldn't be a problem. The question is will they regularize you. That one I can't answer.

Anonymous said...

alright Sir.
Many thanks

Floreda Loren said...

Hi sir. i am currently working in a private school for 1 year and 7 months now.. This coming oct 18, 2014 i am planning to give my resignation due to health reasons. do i still get my full 13th month pay? according to my source, they will provide 1/2 of the 13th month only.. please i need your professional advice

Anonymous said...


HI SIR!
ASK LNG PO ME WAT IF I RESIGNED FROM MY WORK AND AFTER 2 WKS I WAS RE-HIRED,WER PO MGSTART YUN COMPUTATION NG 13TH MONTH PAY NE PO?? COUNTED PA PO BA YUN TIME B4 ME NGRESIGN????TNX. GOD BLESS.

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