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 employeeÃ¢â‚¬â„¢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.