13th-month pay is a form of monetary assistance equivalent to the monthly basic compensation received by an employee, computed pro-rata according to the number of months within a year that an employee has rendered service to an employer (basic monthly pay/12 x number of months actually worked).
Who are entitled to 13th month pay?
All rank and file employees, regardless of status, who have worked for at least one (1) month are entitled to receive 13th month pay.
What if I already worked for one month and I resigned thereafter?
An employee who has resigned or whose services were terminated at any time before the time for payment of the 13th month pay is entitled to 13th month pay, in proportion to the length of time he worked during the year. The formula is: (basic monthly pay/12) x (number of months actually worked). The 13th month may be demanded at the time of effectivity of the resignation/termination. That doesn’t have to be December 24.
Who are rank-and file employees?
All employees not considered as managerial employees are considered rank-and-file employees. A managerial employee, as distinguished from a rank-and-file employee, is one who is vested with powers of prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, lay-off, recall discharge, assign or discipline employees, or to effectively recommend such managerial actions.
Is there a cap, i.e., only those receiving a salary below P1,000 may receive 13th month pay?
Prior to 1986, only those who receive a monthly salary of not more than PhP1,000 are entitled to receive 13th month pay. This cap was removed under Memorandum Order No. 28 issued by former President Corazon Aquino.
When must it be paid?
The 13th month pay shall be paid not later than December 24 of each year. An employer, however, may give to his employees one half (½) of the required 13th month pay before the opening of the regular school year and the other half on before the 24th of December of every year. The frequency of payment of this monetary benefit may be the subject of agreement between the employer and the recognized/collective bargaining agent of the employees.
Can the employer withhold payment of the 13th month pay?
No, the payment of 13th month pay is mandatory, specifically provided under Presidential Decree (P.D.) No. 851. In case of non-payment of 13th month pay, covered employees could complain at the Department of Labor and Employment (DOLE) or the National Labor Relations Commission (NLRC).
Are there employers who are exempted from paying 13th month pay?
Yes. The following employers are not required to pay 13th month pay under P.D. 851, unless the grant thereof have become a policy or practice:
a. The Government and any of its political subdivisions, including government-owned and controlled corporations, excepts those corporations operating essentially as private subsidiaries of the Government.
b. Employers already paying their employees a 13th month pay or more in a calendar year or its equivalent at the time of this issuance.
c. Employers of household helpers and persons in the personal service of another in relation to such workers.
d. Employers of those who are paid on purely commission, boundary, or task basis, and those who are paid a fixed amount for performing specific work, irrespective of the time consumed in the performance thereof, except where the workers are paid on piece-rate basis in which case the employer shall grant the required 13th month pay to such workers.
Who are those paid on a piece-rate basis?
They are workers paid a standard amount for every piece or unit of work produced that is more or less regularly replicated, without regard to the time spent in producing the same.
What if I work in more than one company?
Workers who work in two or more companies or private employers, whether on full or part time basis, are entitled to the required 13th month pay from all their private employers regardless of their total earnings from each or all their employers.
Is it part of the Company bonus?
No. The payment of 13th month pay is mandated by law. It is separate from any other bonus given by the company. Read the previous discussion.
Is 13th month pay taxable?
No, as long as the amount does not exceed P90,000. Only the excess amount is taxable. In 2015, the allowable exclusion from gross income, in terms of 13th month pay and other benefits, was increased from P30,000 to P82,000 under Republic Act No. 10653 (see also BIR Revenue Regulation No. 3-2015). This amount was again increased to P90,000 under Republic Act No. 10963, also known as the Tax Reform Acceleration and Inclusion (TRAIN) Law.
I worked in an international NGO. I resigned effective Oct 30, 2009 w/c was accepted by my boss. On Oct 30, they didn’t release my pay for oct 15-30. I am not anymore interested in it but I am for my pro-rata 13th month pay. When I inquired about it, my former boss replied in a traceable mail informing me that she is willing to release 50% of my 13th month but the other half will only be released upon submission of handover documents and a report which I volunteered to do before my resignation, but since I have submmitted my resignation, I was not able to do. Is it right for my boss to withhold half for my 13th month on the said ground?
Me and my co-employees had been receiving our 13th month pay for the past eight years (from one of us with longest tenure)in whole or equivalent to 1 month salary (i.e basic salary as per contract plus allowances). Now the management decided to change the computation based on actual earned salary plus allowances (considering the absences and lates of the employees). This would mean that some of us (i.e those which have already used up their allowed leaves and with excess leaves) will receive a lesser amount compared to the previous years. Is this acceptable? Does this not fall unnder the category of “reduction of benefits) for the employees?
Company made our 13 month pay included on the mid pay this December which is always a taxable payslip but the 13 month was included in the tax which is not suppose to be. Company stated that threshold was the reason for this since we had a performance bonus last year but was given by February this year which they did not deduct any tax. I think this should not be the case as 13 month is not subject to tax or inclusive of regular pay tax withholding. Kindly enlighten us on this
Company made our 13 month pay included on the mid pay this December which is always a taxable payslip but the 13 month was included in the tax which is not suppose to be. Company stated that threshold was the reason for this since we had a performance bonus last year but was given by February this year which they did not deduct any tax. I think this should not be the case as 13 month is not subject to tax or inclusive of regular pay tax withholding. This type of strategy shows desperate moves of the company.
I notice in my 2316 that 13th month and other bonuses are in the single field. ( 13th mnth pay and other bonuses are sum up )
I think 13th month pay is taxable.
May I ask advice on what to do if 13th month pay and other bonuses are counted as one? If it says that it should be separated from any other bonuses.
Thanks
Are the employers allowed to deduct tardiness, undertimes and absences from the 13th month pay? Thanks!
Our employees are diducting our absences and tardiness in our 13th month pay
Ive been with the company since August of this year. Are we entitled to get a 13th Month pay even if our company was just registered in the Philippines last September? (Back then, its listed as a Philippine Based US Company). I need your opinion on this matter since we’ve been hearing that they’re not gonna give us the said benefit.Please also note that we still haven’t signed any type of contract up to this point. Hoping to hear from you. Thanks
QUESTION
hi there, we were given an employee communiction by our company on how they will be computing our 13th month. In the said communication, it was indicated that “Employees who have been on PLA (Prolong Leave of Abences), VTO or Leave Without Pay (LWOP) in 2010 shall receive a pro-rated 13th Month Pay” is there such a law that will allow a private company to have the 13th month pro rated? i understand if for an instance you get hired mid year of that year technically your 13th monthly will automatically be pro rated but what if youve been part of the company within that year like youve completed the 12 months will it still be pro rata?
the formula that was provided above “(basic monthly pay/12) x (number of months actually worked).” is that the standard formula that government and private company should comply with? because we were given a different one, they computed it this way Base Pay for the month x number of days in Service during the year /365 Days. if your work schedule is 5days in a week and have 2 days off, is it justifiable to over it with 365 days?
I will really appreciate your feedback about my inquiry. Feel free to leave me a message. Thanks
Sir Good am!. Just inquiring and hoping to find answers here. Sir we have just received our 13th and 1.5 months bonus recently. However, we were surprised because there were deductions in our bonus known as LWOP or leave without pay..I made an inquiry to our HR and they confirmed such deductions…My questions are, it is legal in the Labor Laws? Other companies were doing the same practice? More so, the according to HR, our LWOP has an effects also in our retirement benefits. These LWOP will be deducted to our separation pay? Is this also correct? I glanced again our existing CBA, however, i never found any provisions with regards to my inquiries.
Thank you and hoping for your response…Good day!
here is a sample of what my employer sent me as a computation of my 13th month pay, what is the proper way of computing this if i was employed October 2010 till December 2010 with a 15000 salary then January 2011 till May 2011 with a 20000 salary
Monthly Basic 15,000.00
Monthly Allowance 5,000.00
Total Monthly Salary 20,000.00
Final Pay Computation
Payroll Date Basic Pay
15-Jan-11 7,500.00
31-Jan-11 7,500.00
15-Feb-11 7,500.00
28-Feb-11 7,500.00
15-Mar-11 7,500.00
31-Mar-11 7,500.00
15-Apr-11 6,136.36
30-Apr-11 5,454.55
15-May-11 7,500.00
31-May-11 4,772.73
TOTAL BASIC PAY 68,863.64
13th MONTH PAY 5,738.64
*note : they did not include 2010 salaries
I hope you can help me, Thank you very much
GREETINGS! need a help on how to compute my 13th month pay..i started working May 16, 2011 until now…
pay date basic salary:
may 30, 2011———4,500.00
june 15, 2011——–4,500.00
june 30, 2011——–4,500.00
july 15, 2011——–4,750.00
july 30, 2011——–4,750.00
aug.15, 2011———4,750.00
aug.30, 2011———5,250.00
sept.15,2011———5,250.00
sept.30,2011———5,250.00
oct.15,2011———-5,250.00
oct.30,2011———-5,250.00
nov.15,2011———-5,250.00
TOTAL : P59,250/12 = P4,937.50 do i need to multiply this into 6 months or 7 months? pls help me i need your help ASAP…do i need to subtract our basic salary to our benefits? let say my basic salary i received for the month of june 15 is P4,500 minus SSS and PHILHEALTH = P4,391.65? tnx
hi! this is kissha again regarding sa probs ko on how to compute my 13th month pay nasa 1st comment ang mga salary list ko…pls help me to compute pls send your answer in my account kisshareyes@yahoo.com…
is it mandated to gives bonuses to the employees?
Atty, good day, i have a question, i would like to know if the 13month and bonus are part of the child support computation? i mean aside for the regular fix amount monthly child support because my ex wife dnt have any agreement regarding about the bonuses and 13mo just only the monthly fix support. if so, how much should i gave her? coz honestly, im willing to give him part of my bonuses just for the kid but she asking too much, she want 1month equal to the child support im giving her regularly because she insist its 13mo…. hope you can help me… thanks in advance
SOS! need to clear up my questions about 13th month pay,
I have stayed for 2 yrs and 5 months in this company where I’m working now.
But due to some reasons, I rendered my resignation which the effectivity is on November 29, 2011.
Now the things that bother me a lot is that the HRD told me that I can receive my 13th month pay and last pay a month after of my resignation. Is it right? Cos as far as I know 13th month pay shall be paid or should be given not later than December 24 of each year. When should I get my 13th month pay?
I also heard from other former colleagues that the computation of their 13th month pay is base on their net income not their gross income, is it right?
Please help me to understand about this matter. I’m leaving this company soon so I really want to know what the things I should do :(.
SOS, OUR COMPANY DELAYED GIVING OUR 13TH ,MONTH PAY THEY NOTICE US THAT 13TH MONTH PAY WILL BE RELEASED BY JANUARY, IT IS VIOLATED BY THE LAW, ITS TRUE, WHAT CAN WE DO TO COMPLY WITH THEM
question…if an employee was terminated because of awol…should the management give her 13th month even though she was terminated with cause? thanks
Hi I hope anyone could help me. I started working last October 3, 2011 with a minimum salary a day and two rest day per week. Will I still get a 13th month pay? If in case i will can you tell me the amount? I really don’t have an idea how to compute it. Thank you very much. Hope to hear from you guys. 🙂
How should the withholding tax of the 13th month be computed. Specifically the amount going over P30,000? Should that amount be added to the December taxable Income? Or should it be on a separate pay slip? The computation differs on theses 2 options.
ie: A monthly income of PhP40,000
Should it be computed together?
Taxable: 40,000 + 10,000(amt over 30k of 13th mnth)
OR
Should it be computed separately?
Taxable: 40,000 (for December pay slip)
Taxable: 10,000 (13th month pay slip)
Using the calculator returns different results when done either way. Smaller for withholding tax for separate slips.
Thanks!
Good day! Our company gave our 13th mo. pay last December 23, 2011 as well as our salary for December 30 (we are all regular employees with a length of service ranging from 4yrs and above)..unfortunately we just received half of the actual 13th mo. pay…remaining half will be given on the 9th – 16th of January 2012 as per management. It is already January 15 but no 13th mo. pay (half) yet. Is there any legal action we can do to claim such? and it is still legal for the company to release the other half after December 24th? Thank you!
i am from Zamboanga City and i am working for almost three years already pero even once wala ako natanggap na 13th month from my employer, even SSS and PhilHealth …and double pay during legal holidays at kahit during overtime, sometimes kasi inaabutan ako ng 10pm sa office working but still, i only receive same rate…
and another concern is, it is possible that i work for 3 companies at the same time (with one owner)…kasi yun employer ko is managing/own several companies… example i do accounting works for this Company A, then i do clerical works for this company B, etc…
what must i do??
please response on this matter …
email me at marjo1018@gmail.com
@juliosisimo
as far as i know, its a NO! first thing, she accepted your resignation and that whatever undone work assigned is not anymore an issue.. and 13th month wouldn”t matter on that.. you should still receive full 13th month based on the date of your resignation…
i hopet’will help you..
There’s an employer who told to her employees that she will only give 70% of their 13th month benefits….We know she can do it, but, IS IT LEGAL???? What is our remedy for this?????
question!
Just yesterday, my friend asked for a help. His Accountant don’t give him a 13th month pay. He was wondering why? His Accountant told him that a managerial employee has no 13th month pay..is it true? If so why, and it is look so unfair for him.What will he receive then?
Thank you
Hi! GOOD DAY! 🙂 I would like to ask about my 13th month pay I started to work on NOV 2010 end by MAY 2013 my basic salary is 9k how much will be my 13th month pay??? I’m confusing I don’t know how to compute. PLS. REPLY THANKS! GODBLESS
I have this problem, I worked for 5 months in excluivecalls, then I resigned due to compensation problems. I work for 10 hours a day but then I am only receiving not as much despite the fact that it is a call center company. then I have this broken schedule (2:00pm – 8:00pm then 11:00pm – 3:00am) since I was not happy with what I am receiving i decided to resign. But when I got my 13h month + back + fund of 5days = P 4,725.00 only.
Monthly basic pay of
feb 2013 = 8000
march= 8000
april= 16000
may= 16000
june= 16000
—————————————————————–
how much should my 13th month pay?
despite the fact that it is not under BPAO BIR
Sir,
Good Morning.
As per your Article,
Is 13th month pay taxable?
No, as long as the amount does not exceed P30,000. Only the amount in excess of P30,000 is taxable
I understand that if my 13th Month is less than 30,000 it is non-taxable, (wherein my case it should be non-taxable).
However, I asked the accounting department of my company and he response:
for revenue regulatory purposes, meron portion ng 13th month ang taxable.
para sa annualization ng tax na binibigay for each employees.
Any reaction guys,
Hi i already resigned in my previous company, how many months will i wait before i get my last pay and 13th month pay. thank you
if i voluntarily resigned from worked after 5mos of service, what other backwages am i entitled too? for how long is the waiting period for me to collect from my employer ?
Hi,
I’m Admin officer. We have an employee who went on leave without pay and without filing application of application for leave. After 9 consecutive days, he emailed a letter of resignation.
I’m inclined not to pay his 13th month pay considering he did not give the company 30 days notice for his employment termination.
Is this decision legal?
Please advice!
Thanks!
Berna
how to compute 13th month pay if the company started march 1, 2014
Question:
I am a part time teacher of a public school for 4 years now but we are covered with a contract on a semestral basis and paid per hour. Ever since I did not received 13th month pay. I don’t have a full time job only part time.
My question is if I am covered with this 13th month pay? If yes, what should I do?
Salamat.
Atty. Fred,
This is a useful information. However, may I just clarify that the formula in computing the 13th month pay is:
[total earnings divided by 12]
Total earnings being all the basic pay an employee has earned during the course of his/her work for the whole year (or whenever the cut off for the 13th month pay is). This does not include OT pay, premium pay, allowances and other remunerations not considered as part of the basic pay.
This information is from a DOLE employee. If you have further questions, you may contact our DOLE regional offices. you may find the contact information at http://www.dole.gov.ph
My salary is below 10,000. Last year, it was taxed by my employer. What shall I do if it will be taxed by them?
hi my question is that , my start date in the company is nov 24 of the current year am i entitle to have a pro rated 13 month pay .
Do contractual employees are entitled to get 13th month pay? For example, an employee started working on the 7th of October 2014. Does she/he will get a 13th month pay? Thanks !
is it lawful to deduct any from a 13th month pay?
I’m working as a cashier in a resort on a probationary status. But I already started working there last summer but only on 3 months contract. The HR of the company after two months my summer contract ended called me a, told me that the company like my work and wanted me to report back. I did and signed a contract that for 5 months my status will be probationary. This month, they will be giving our 13th month pay. I’m just in a dilemma, my other co-workers told me ( who are in the same status as I am) that the computation of our 13th month should include the months that we were hired during the summer. But others told me in will only include the months when I reported back to work.
Pleas help me.. This is my first job and I really need to be guided.
Thank you
Leng
Hi.
Is the Christmas bonus pro-rated?
I understand that the 13th month pay is mandated by law, however, Christmas bonus as discussed here, is based on the discretion of the employer. I’d like to be clarified if Christmas bonus will also be based on the number of days I actually worked since the 13th month pay follows the same ruling.
Thank you.
our 13th month pay is declared 30 thousand pesos, but why we are recieving only 14 thousand?and we have no christmas bonus?
To Whom It May Concern:
Are family drivers entitled to receive the 13-month pay? How is a family driver classified? Do they belong to the “rank and file” employees even though they provide personal service to the employer?
Thank you.
Misael G. Sanoy
natapos na yung probationary period ko and hindi na ako nag sign for regular, ang naging contract ko is probitionary extension. Nung tinanong ko sa HR kung may makukuha akong 13th month ang sabi nya wala daw dahil probi lang daw ako, ang nakakakuha lang daw nun isa mga regular. talaga po bang wala ako makukuhang 13th month? (14,000 salary and almost 7months po ako sa company)
Months after i became a regular employee, my company have not yet deducted my witholding tax in my payslip. A few days ago, our hr told me that they will deduct my wht on my 13th month and told me it was a lot.
I believe i wont be receiving even half of my 13th month. Was it legal to deduct it all at once?
Good day! I would like to ask how do private schools should give and compute their 13th month? I’m a private school teacher and was hired this school year, June, and I heard from one of my colleagues that since we will not renew our contract for the next school year, the school will only give us 70% of the 13th month pay, which will be divided into half, given on the month of December and on the month of March next year. While other teachers will receive 100% of their 13th month because they’re going to renew their contracts. Is this legal?
I want to know my right as an employee.
I hope you could help us regarding this matter. Thank you very much.
Is it in the law that the 13th month pay be computed as :
Basic pay / 365days x (number of days in the company)
In my case, it fell short by 400 which is already a big amount for me. Can you please shed light on this? Thanks.
I was resigned fr government October 15. I received my mid year bonus last May.. Am I still entitled to the other half of it
Gandang umaga po.. almost 8 years na po akong nagtatrabaho s isang hardware s Biñan,laguna.. sa 8 years na un wla po kming ntatanggap n 13th month pay.. christmas bunos lng po natataggap nmin. Minsan 2,000 minsan 3000 po. At s loob po ng 8 years na un libre po kmi ng tirahan. Pwde pa po ba kmng mkatanggap ng 13 th month pay khit libre kming bahay. Ngaun 2016 po nagbabalak n pong isara ito may habol pa po b kmi.? Tulungan nyo po sna kmi.
Say an employees annual basic pay exceeded 82K, then he will not be exempted from tax in his 13th month pay. What is the computation of tax in 13th month pay then?
Good day! I would like to know if the unpaid salary is included in computing 13th month Pay?
She was terminated last April 14, 2016. Since im computing her back-pay including 13th month pay, Im so confused if her salary from April 1-15, 2016 is included in 13th month pay or I should separate it?
Hope you can help me.
Thank you.
GOD Bless.
Does tardiness and absences affects 13th month pay computation?
Does absences without pay and deductions due to tardiness and undertime should be removed from the annual basic salary paid? (for 13th month computation
Does it mean absences without pay and deductions due to tardiness and undertime should be removed from the annual basic salary paid for 13th month pay computation?
Good evening..I started work in DepEd on august 1 2016 i just want to know if i am entitled to have bonuses like 13 month and cash gift since i only have more than 3months in the service. should I?
Good day,
Just want to clear up my confusion, I’m working as a Logistic Consultant for 1 yr and 7 months, am I entitled for a 13th month pay? I’m receiving a monthly compensation of 90,000.00 per month.
Thanks in advance for your clarification in this matter
Brgds,
Eric
Good day atty, is it legal to hold the release of the 13th 13th month pay because the employee is under preventive suspension?
Hi,
I really need your expertise. I’m a bit concerned when I saw my payslip for my 13th month pay since there was a deduction of P1,448.86 withholding tax. I just checked it recently and the frustrating part was no one from our HR team tried to coordinate with me with this. Good thing is I was able to check it and raise it with them. They told me that they will straighten this up and it will be included on my next pay out. I just want to know what should be the next step to do if I will not see this on my salary for the next cut off. Thank you in advance. Happy Holidays *not for me though :(*
Hello, good day. Can a company deduct a loan balance in the thirteen month?
Good day!
My 13th month pay and final salary has been held by my employer. I was terminated because he was accusing me and my immediate supervisor of qualified theft. I might sound fishy but God knows that I had been honest about my job.
I just want to know if it is right to ask for my 13th month pay since it is a statutory benefit.
Thanks!
Our monthly salary was divided into a basic pay of P 8,000.00 and P 5,000 transportation and attendance allowance. The reason for this was to evade taxes. But the company only gives P8,000 as 13th month pay. Is there a violation?
I have a question po. I was terminated after three weeks of training because I was absent for 1 day due to illness. They accepted my medical certificate but according to them trainees are not allowed to be absent during training period. I was just concerned if I can still or if I am still eligible to receive a pro-rated 13th month pay if that is the case? thank in advance
i worked as i machine operator before in everest plastic industry, i completed 5 months of my contract, and then, upon end of contract, our last salary was hold until we sign on what they call “clearance”.
according to clearance, upon signing you agree that you have nothing to claim with the company, well in fact they did not give us our 13 month pay.
recently they are giving 13th month pay, pero nung time ko hindi pa.
i was employed, way back 2012,
question; can i still claim for my 13th month pay kahit matagal na kong wala sa company na yon.
im joan vitug,i hope you will answer my question regarding 13th month pay,i was hire in my new job october 6,2018,as a promodizer,and they said that i dont belong in 13th month?because im newly hied?
Pingback: Payment of Final Pay and Issuance of Certificate of Employment: Guidelines under Labor Advisory No. 6 » Philippine e-Legal Forum