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.

6 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?

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