Computing the 13th month pay

We have received our 13th month pay last week. It wasn’t so hefty compared with other companies’ incentives but still more than enough compared with regular wage earners. Here’s the screenshot of my BPI account:

Kindly take note that the amount also includes my salary for the previous cut off and some personal savings. It also does not include leave conversion as my PAN has not been signed yet. We expect the prop-rated benefits to come this Dec. 15.

According to our HR, this is how they compute the 13th month pay.

Employees hired between January 1 to June 30 will get 1 month pay provided that they are still active at the time of payment (November 30).I was hired Apr. 9 so I was entitled to the full one month of salary

Employees hired between July 1 to December 31 will get a pro-rated 13th month pay.

Those who have worked for at least 1 month will get a pro-rated 13th month pay. If an employee’s tenure has not yet reached 1 month by November 30, his pro-rated 13th month pay will be credited on the nearest payroll after his 1 month of employment with the company.

In other words, the formula for the last two scenarios is:

One Month Salary / 12 month x the number of months employed

The 13th month pay is also not taxable if the amount is P 30, 000 and below. If you are entitled to P 40, 000 of 13th month pay, P 10, 000 is taxable.

23 Comments so far »

  1. ana diza said

    am November 26 2008 @ 9:05 am

    Hi,
    Thanks for the information below,very helpful.. but can you help me to get a reference( BIR form etc) that could justify this statement? I also have an issue with my 13th month pay. Thanks
    —————————————————-
    The 13th month pay is also not taxable if the amount is P 30, 000 and below. If you are entitled to P 40, 000 of 13th month pay, P 10, 000 is taxable.

  2. betadine said

    am December 5 2008 @ 12:00 am

    same question here… my 13th month is way BELOW 30k but it was taxed because they added all our bonuses for the year plus the 13th month… so it really passed 30k..

    ANY HELP WILL do…

    you can send me an email too… thanks!

  3. Anna_0218 said

    am December 19 2008 @ 2:20 pm

    how to compute your 13th month pay if your salary is per hour? pls. help

  4. cicero said

    am December 23 2008 @ 4:01 am

    if i had my maternity leave for two months, will that be deducted from my 13th month pay? meaning, the computation will be 10/12? is that legal?

  5. jheng said

    am January 2 2009 @ 11:30 pm

    hi my ask lang aq,aq po ay wala natanggap n 13 month pay pero 1000 above namn ung sinasahod q,reliever lang po kc aq s company nmin as call center agent.pero above nmn s 100 shod q,almost 4x a wik aq pumapsok,bkit po wla aq ntanggap n 13 month pay? dahil b un s wala aqng benefits kya wala aq ntanggp…sana po matulungan nyo q.thankyou

  6. jheng said

    am January 2 2009 @ 11:32 pm

    wala aqng sss,philhealth ,taxes n binabayaran.kya po b ala aqng 13 month pay??pero above 1000 nmn cnshod q?

  7. ronald santos said

    am January 18 2009 @ 8:38 am

    hi, thanks for the info, by the way, i wanna know if the time that i recieved my 13th month pay, is it included the tax refund? I was hired in our company as call center agent last May 1st, I received my 13th month pay on December 6 and I resign before New Year. As far as my knowledge is concern and also for some humor that 13th month pay includes the tax refund. is that true? I already resign at my job, if incase that I will get my backpay, will it be lessen because of the 13th month pay that i received? Hope that I will hear something from you soon? thanks for this blog. it helps me a lot.

  8. martinni said

    am January 21 2009 @ 12:51 am

    hi, i was just hired at cvg last week.. i already have sss num from apac(my previous company). what form should i submit? or is it ok if i just give them my sss number.??? thanks guys

  9. martinni said

    am January 21 2009 @ 12:51 am

    hi, i was just hired at cvg last week.. i already have sss num from apac(my previous company). what form should i submit? or is it ok if i just give them my sss number.??? thanks guys :)

  10. ashley kim said

    am July 8 2009 @ 3:53 am

    Hi i just what to ask you bout my previous job.
    i resigned personally for some reason and until now im waiting for the 13th mo.and for the other benefits like refund of my taxes and one more thing they had signed for 9days that they need to pay for me.
    Its more than 1month.I called the h.r.they told
    me they didn’t received my clearance yet the h.r.didn’t forward my clearance to them.
    The question here….if they didn’t give my last payment do i have the right to sue them..???
    Pls. response to this…

    Thanks

  11. ashley kim said

    am July 8 2009 @ 3:59 am

    Con’t.
    i called the accounting sori ndi h.r.pero hindi pa nafoforward ng h.r. ang tagal na..t.y.

  12. tmt said

    am July 18 2009 @ 12:10 pm

    Gud am,

    just want to ask regarding the tax, ive recieved an incentive worth 20k, they said that my tax for this incentive is 20% from my incentive so that on Dec. they will not deduct big tax, ive ask them that it might be my total incentive for the whole year and as fas as i know 13th month pay is not taxable but our HR said it was taxable. And i ask her that di ba up to 30k for other benifits are not taxable she said that i will meet that 30k because of my 13th month which my salary is 14k a month that why she suggest me to tax 20% to my incentive. Its so hard for me to get such incentive. Please help me how to compute the right tax so that it will be fair for for both of us and i wll that argue w/ them if i know the right answer, Hoping for your response.

    thank you and more power

  13. Bambie Albano said

    am October 11 2009 @ 4:32 pm

    hi! i have an issue regarding my 13th month pay.. we we’re given the pay this Oct 2 separately from our regular payroll.. it was given early to assist some of our office mates who were victims of the recent typhoon that struck our country..

    i have been with the company since Jul 2008.. for the 13th month pay,i understand that any amount in excess to P30,000 is taxable.. our office also provides us quarterly bonus which i know is taxable too as evident on our payslips.. what i do not understand is how the tax was computed.. my basic pay is at P24,000.. as per my payslip,i only received P16,300.. more than P7,000 went to tax.. i was not expecting this so i was a bit shocked that almost 1/3 of my bonus went to tax alone.. my office mates share the same sentiments..

    pls let me understand how we compute for the tax in this given situation.. thank you..

  14. Ranin said

    am October 19 2009 @ 11:18 am

    I started working aug.3 2009 – how would be my pro rated 13th month pay be computed? Please po help

  15. krizzie said

    am October 30 2009 @ 12:00 am

    here’s the link guys for the verification of our 13th month pay coming from DOLE..

    http://www.dole.gov.ph/faq/details.asp?id=F0000037

  16. katz said

    am November 26 2009 @ 10:24 am

    Hello po, i’m currently working as a Research Assistant in one of the government agency here in Laguna but my status is Job Order only. i just want to ask if i am entitle for 13th month pay. i have no benefits but they less 4% of my monthly salary for tax.
    please give me some info. about this. thank you po..

  17. christina said

    am November 26 2009 @ 12:19 pm

    ask ko lng pano i compute ang 13th mo.kung ng 2 mos leave ako for maternity..?tnx!

  18. megmeg said

    am December 4 2009 @ 5:06 pm

    hi,

    just wanna ask, who’s really going to pay the 13th month, the call center company in the philippines or the employeer outside the philippines?

    thanks

  19. brenda said

    am December 7 2009 @ 2:11 pm

    tatanung ko lang po kasi, kasi ganito po yun nag start kami ng work sa isang call center last march 18, 2009 then huminto po kami ng august 22, 2009 then po nagwrk ulit kami sa same comapany oct 7, 2009 hanggang nagyon, wla po kaming natatanggap na 13th month pay ang problema po rin namin kasi ay wla kaming contrata, wla rin po kaming pasyslip…halos puro verbal lang ang nangyayari.. anu po ba ang dapt na gawin ? hinge sana kami ng tulong kung anu ang dapat namin gawin.. send niyo naman sa email ko thanks

  20. paweekan said

    am January 1 2010 @ 12:18 am

    We are always thinking that the 13th month is not taxable. Yes it is, but to a certain limit. It is non-taxable up to an amount of P30,000. Any amount above that is subject to tax. AND don’t limit it to just the 13th month pay, you should add your other bonuses to this (mid-year, performance, etc.). All amounts in excess of P30K will be included on your gross taxable income which (as it already implies) are subjected to tax. Example: You’re receiving the following:

    13th Month Pay: 25K
    Performance Bonus: 20K
    Total : 45K Php

    Out of the P45K you received, P15,000 is added to your taxable income instead of the whole 45K (P30K is deducted)

  21. maribel boncayao said

    am August 12 2011 @ 3:31 pm

    if i had my maternity leave for two months, will that be deducted from my 13th month pay? meaning, the computation will be 10/12? is that legal?

  22. kathrina de guzman said

    am October 20 2011 @ 3:38 pm

    gud day!
    im working in a call center company and just last year our company released a memorandum that they’ll be deducting leaves such as; LOAM and maternity to our 13th month pay. My question is i had maternity leave for 2months and i dont know how to compute the 13th month pay less my ML for 2months. And is that also legal that they have to deduct MATERNITY LEAVE to our 13th month pay?

  23. mhyles said

    am January 17 2012 @ 5:06 am

    Just want to ask, how to calculate the tax from a bonus that is more than 30k?

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