The 13th-month pay is one of the things that mainly excites many Filipinos during the "ber" months. This is because they can get an additional salary equivalent to their monthly earnings.
Many Philippine residents tend to wait for their 13th-month pay to enter their payroll debit cards; they don't make an effort to compute the amount they'll receive.
But, there are those who are quite attentive when it comes to their 13th month pay. If you want to become the latter, here's how you can compute your 13th month's pay.
Philippines: How To Compute Your 13th Month Pay?
Rappler reported that the 13th-month pay is a mandatory benefit that employers in the formal industry should give to their employees.
Presidential Decree No. 851 in 1976 is the one that mandates the 13th-month pay until now. If you are a new graduate who just started working or is still looking for work, the 13th month's pay is another month's salary that is provided around November or before December 24 every year.
The Philippine Department of Labor and Employment reiterated that all rank-and-file employees who have worked at least a month for the year in the private sector are eligible for the 13th-month pay.
This benefit should be provided to them regardless of their position, employment status, designation, and irrespective of the way by which they are paid.
To compute your 13th month pay, all you have to do is follow the formula below:
- Total basic salary earned during the year divided by 12 months = 13th month pay
About 13th Month Pay in the Philippines
Before you spend your 13th-month pay to do your Christmas and New Year shopping spree, you might want to know how this financial benefit came to be.
The Multiplier explained that was created in December 1975 because of the protests regarding the minimum wage update. During this time, the minimum salaries that Filipinos were receiving failed to match the cost of living.
Former President Ferdinand Marcos was the one who established this legislation. However, the law only allowed Filipinos who were generating 1000 PHP monthly salaries.
But, thanks to Marcos' presidential successor, Corazon Aquino (the first female Philippine president), this limit was removed, allowing all Filipino workers in the private sector to receive this benefit.
