Yes! Republic Act (RA) No. Before you start with the math, the first thing you need to know is exactly what is included and excluded in the computation of your 13th month pay: 13th month computation inclusions. Here’s the Department Advisory: Department Advisory 01 2019 on Expanded Maternity Leave Law. premium contribution share and SSS maternity leave benefit. S: Kailangang ibigay ang 13th month pay nang hindi lalampas sa Disyembre 24 ng bawat taon. The 13th month pay is every employee's right and if an employer does not pay, is late or does not pay in full this shall be considered improper salary retention and … At the end of the day, a dedicated software is really the best choice for businesses. It’s just as simple as counting 123. In Panama, employees are paid 13 months for every 12 worked. Pay (released in June) Female workers in the private and public sectors can now enjoy a total of 105 days’ paid maternity benefit for live childbirth, regardless of the mode of delivery, with an option to extend for another 30 days without pay. How to compute your 13th month pay. S: Oo. Your email address will not be published. To compute the payment, the total basic wage received in a given calendar year shall be divided by 12. You calculate your 13-month pay by multiplying your Monthly Basic Salary by Employment length, then divide it by 12 months. Acquire Mastery of HR/Labor Doctrines, Rules and Principles with Atty. Thirteenth (13th) month pay is one of the benefits mandated under PD 851 and Memorandum Order No. It may be computed pro-rata according to the number of months within a year that the employee has rendered service to the employer. The number of months you spent on maternity leave would not be calculated. May   (9 days)                                                  P   5,175.72 Then, divide the total by 12 and the result is your 13th month pay. Really, it depends. Resigned Employees. A: No. The virus has rendered the majority in remote work setups, while others had to resort to layoffs to prevent insolvency. Determine the amount of SSS maternity leave benefit of the female worker based on the prescribed formula and computation by the SSS. The computation for your 13th month pay would be: 13th month pay is not taxable as long as it does not exceed P82,000. How to compute for 13th month pay? We do not have to be a hardcore mathematician to compute our 13th-month salary. November                                                         P      00.00 Here’s how to calculate this amount: Employee B is working at Company B since 2018, up until July 31, 2020. How much will he get. March (11 DAYS)                                              P  6,325.88, April                                                                 P       00.00 However, once an employee’s pay surpasses the limit, the excess will be added to their salary and will be subject to Income Tax. It shall be unlawful... read more, Drug-Free Workplace Policy Editable Template Here May   (9 days)                                                  P  5,175.72 He went on a paid vacation leave for a week, and haven’t made any absences since. All we have to do is to get the total of the basic pay earned for the whole year and divide it to 12. The question is what happens if in this year 2020 the company did not operate due to ECQ considering that it is not into the business of selling essential goods or providing essential services. Technically, the law on the 13th month pay only covers rank-and-file employees. Accounting, Tax, Payroll, HRIS Software and Outsourcing. Elvin’s HR Bundle Books at Discounted Rate. Required fields are marked *. T: Kailan dapat ibigay ang 13th month pay? If her basic wage is Php2,500 and she has worked for 6 months, she is entitled to Php1,250 as her 13th month pay. Grant of Maternity Leave. Despite the holidays usually being the most wonderful time of the year, in reality, 2020 has been tough for businesses. TOTAL                                                             P56,501.60. Maternity leave benefits are not included in the computation of 13th month pay. April                                                                 P       00.00 June                                                                 P15,000.00 4. COVID-19 pandemic prompted... read more, Company policy partakes of the nature of an implied contract between the employer and employee. Salary Differential shall be included as part of the basic salary computation for the computation of the 13th month pay; Check-out the Calculator – Expanded Maternity Benefit Calculator By Deb. Hence, by December, she will receive ₱41,666.67 as her 13th Month Pay. How to compute for 13th month pay? Accounting, Tax Preparation Software and Outsourcing, Payroll, HRIS, Time and Attendance Software and Outsourcing, SSS Contribution Table Effective January 2021 for Self-Employed Members, Philhealth Contribution Table for 2019, 2020, 2021, 2022, 2023, 2024 to 2025, New SSS Contribution Table Effective January 2021, Employees paid on a commission- or project-basis, Housekeepers and those in the personal service of another, Cash conversion of unused vacation and sick leaves, Other items that are not part of the basic salary. Let us compute the pro-rata 13th month of X considering lack of work during ECQ. To illustrate, assuming that a female employee is receiving a monthly salary of P 10,000.00 and was on maternity leave from June 1 to July 31, 2013: January - P 10,000.00 P100,000.00 = P8,333.33 February - P 10,000.00 12 months S: Hindi. Below is an illustration on the application of the above rules: Assuming Employee X is assigned in NCR with monthly salary of P15,000.00. Before you start with the math, the first thing you need to know is exactly what is included and excluded in the computation of your 13th month pay: 13th month computation inclusions. 4. All rank and file employees who have worked for at least one month in the company are entitled to receive their 13th Month Pay, except for those who fall under the following categories: It is calculated by getting an employees’ Total Annual Salary—the sum of all payments that they have received for the whole year. Thirteen Months Pay. Here is how to compute her 13th month pay at the end of the year based on the same scenario. I resigned from my company after six months, do I still get the 13th month pay? No. Thirteenth Month by Sweldong Pinoy is a tool for Filipinos in computing their 13th-month pays. February                                                           P15,000.00 August                                                              P15,000.00 While … In this blog, we focus on the latter, making it easier for you to compute for this law-mandated benefit. Deduct the amount of SSS maternity leave benefit from the amount of full pay, net of social contributions. To put it simpler, just get the sum of your basic salary for … June                                                                 P15,000.00 Only the amount in excess of the ceiling is taxed. Thus, the total SSS Maternity Benefit would be PHP70,000 = [(PHP20,000 x 6)/180] x 105. 7. This means less deductions and more cash! I'm a manager. Regardless if you are on a Maternity Leave for 2 months or Leave Without Pay for 5 days, etc. Before delving deep into the nitty-gritty of computations, here are the eligibility criteria for this law-mandated benefit. 1, THIRTEENTH (13th) Month Pay and the Effects of ECQ and Maternity Leave. How to Calculate Your 13th-Month Pay? Here’s the Department Advisory: Department Advisory 01 2019 on Expanded Maternity Leave Law. T: Mapipili na ng kompanya kung kailan siya magbibigay ng 13th month? S: Oo. Monthly Basic Salary x Employment Length ÷ … The sample form below is based on the book Human Resource Forms,... read more, Juanito Bernardo filed a complaint against DLS-AU for the payment of retirement benefits. Thus, the daily rate of PhP15,000.00 per month is P575.08 (P15k x 12 / 313). Your 13th month pay should be given to you no later than December 24 of every year. Here’s how to calculate this amount: ₱500,000 / … To further illustrate the proper computation for this benefit, here are a few examples: Sounds simple? S: Hindi. December                                                         P      00.00, TOTAL                                                             P94,001.60, 13th month pay 2020   = Total Basic Salary Earned during CY / 12 Here are the following items that are excluded from an employee’s Total Annual Salary: Let’s say a female employee went on Maternity Leave for two months. How to compute 13th month pay? less partial 13th mo. *The following are NOT included in its computation:-Allowances including COLA-Absences, Unpaid leaves & Maternity leave-Overtime, Night Differential & Holiday Pay-Commissions, Incentives, Bonuses 28. Determine the amount of SSS maternity leave benefit of the female worker based on the … How to compute maternity leave benefits RA 11210 requires that employers cover the difference between what SSS covers and what an employee would usually be entitled to earn under their salary. If in case that the leave is allocated to the father, Republic Act No. January                                                            P15,000.00 The employer shall pay the salary differential between the full salary of female worker during her maternity leave and the actual cash benefits received from the Social Security System (SSS) which shall be computed as follows: 1. Unlike the maternity leave, the seven-day leave transferred can be used consecutively or intermittently but it can’t be used when the new mother’s maternity leave period has ended. Thanks to the tax exemption bump, Filipinos are set to receive more take-home pay come year-end. It is computed based on the total basic salary earned by an employee within a calendar year divided by 12 months. Bernardo alleged that he started working... read more, The penalty contained in the Code of Discipline should follow the rule of reasonable proportionality which dictates that the... read more, Acquire Mastery of HR/Labor Doctrines, Rules and Principles with Atty. The amount of the 13th-month pay shall not be less than 1/12 of the total basic salary earned by the employee within a calendar year. March (11 DAYS)                                              P  6,325.88 To compute your 13th month pay, multiply your basic monthly salary to the number of months you have worked for the entire year then divide the result to 12 months. However, this amount is excluded from the computation of her 13th Month Pay. 13th Month Pay = Total Annual Salary / 12. T: Kasali ba ang maternity leave benefits sa pagkompyut ng 13th month pay? 13th month pay = (Annual Salary – Unpaid Absences)/ 12 This means any amount lower than this is non-taxable. Compute the amount of full pay: Full pay[l] = monthly x maternity period in months[4] 2. Hence, by December, she will receive ₱41,666.67 as her 13th Month Pay. Q: When shall 13th month pay be paid? Dani is in-charge of crafting online content for MPM. While countless virtual celebrations are just around the corner, employees are hustling to meet annual targets, especially with the pandemic still at hand. Come March, she filed for a Maternity Leave and returned in April. But to put it simpler, the formula is to get your annual basic salary (basic salary times months rendered), deduct your unpaid absences, then divide it into 12. Compute the amount of full pay: Full pay[l] = monthly x maternity … In this period, she will be receiving benefits from the Social Security System (SSS) and/or her employer. Just compute the amount you have received in each month. = P7,833.47 – P4,708.47 A: 13th month pay should be paid not later than December 24 of each year. A Maternity leave not only affect the 13th month pay, leave credits and other company benefits tied to attendance, but also computation to future SSS pension and loanable amount. T: Kasali ba ang maternity leave benefits sa pagkompyut ng 13th month pay? If you have been manually calculating your employees’ monthly salaries, especially if through pen and paper, it can take a bit of work. 1 Full pay, as defined in Section I(j), Rule Il of the IRR of RA 11210, refers to actual remuneration or earnings 3. SSS or the Social Security System is the state-run social insurance program for workers in the Philippines’ private sector. The company did not operate during ECQ not being engaged in essential services or sale of essential goods. THIRTEENTH (13th) Month Pay and the Effects of ECQ and Maternity Leave By Atty Elvin Labor Law 13th month pay Thirteenth (13 th) month pay is one of the benefits mandated under PD 851 and Memorandum Order No. You basically have to go back to your records for each and every employee in order to do so. Using the same example from earlier, your computation should look like this. Salary Differential shall be included as part of the basic salary computation for the computation of the 13th month pay; Check-out the Calculator – Expanded Maternity Benefit Calculator By Deb. premium contribution share and SSS maternity leave benefit. September  (15 days)                                        P  7,500.00 = P4,708.47 A: No. (Abbott Laboratories vs. Alcaraz,... read more, Age Requirement In Employment Application Is Illegal; Violator Can Go To Jail, Drug-Free Workplace Sample Policy Pursuant to DOLE Requirements, Muslim Holiday Rules also Apply to Non-Muslim Employees, Notice of Administrative Hearing/Conference for Abandonment of Work in Filipino or Tagalog, Train Law and its Impact on Employee Compensation and Benefits, Immorality – Having an Affair with Another Married Employee, Part Time Employees are Entitled to Retirement Benefits, PROPORTIONALITY RULE IN EMPLOYEE DISCIPLINE, COVID-19 Interim Guidelines on Prevention and Control in the Workplace, Company Policy Should Be Made Known To Employees; Sample Document Proving Receipt (in Filipino), Affidavit of Indigency or Economic Status Sample, Right to Disconnect in Philippine Context, Vacation Leave Benefit Regulation Lies with the Employer, How to Evaluate Probationary Employees Using the Probationary Employment Evaluation Packet Super 5™, Illegal Dismissal Case and its Prescriptive Period, Effects of Absence the Day Before the Regular Holiday, Real Estate Exam Reviewer: Legal Aspects of Real Estate Sales, Human Resource Forms, Notices and Contracts Vol. January                                                            P15,000.00 Generally, 13th month pay is computed based on 1 ½ of your total basic salary for the whole calendar year. It can be illustrated in figures as: Basic pay x length of employment ÷ 12 Commentdocument.getElementById("comment").setAttribute( "id", "a7e515a267f6c27cdb59350df6fb0a24" );document.getElementById("hef5bf2b53").setAttribute( "id", "comment" ); Copyright © 2021 by MPM Consulting Services Inc. Come March, she filed for a Maternity Leave and returned in April. Couple it with absences, unpaid leaves, maternity leaves, etc., and you get a recipe for a headache-inducing computation. It does not substitute the need for inquiring professional advice. ... No, maternity leaves are excluded from your 13th month computation. Designed for the Philippines, MPM Payroll has its own 13th Month Pay calculator, doing all the grunt work for you in just a few clicks. Despite this, DOLE has reminded companies that 13th Month Pay is a required benefit, and has to be given to employees on or before December 24. The company started January also the employees will i compute the december basic salary even we dont know if he/she has a absent or late? 11210, or the Expanded Maternity Leave Law, was signed by President Rodrigo R. Duterte on Feb. 20. If you are a monthly-rated full-time employee and you took unpaid leave for the month, you are considered to have performed an incomplete month of work. The Tax Reform Acceleration and Inclusion Law or TRAIN Law was passed in 2018, effectively raising the tax exemption of 13th Month Pay to ₱90,000. There, I hope this helps clarify some of your questions. It is computed based on the total basic salary earned by an employee within a calendar year divided by 12 months. Determine the amount of SSS maternity leave benefit based on the prescribed formula and computation of the SSS: SSS maternity benefit = [(monthly salary credit x 6)/180] x 105 days Following our example, the monthly salary credit would be PHP20,000. The thirteen-month compensation can be paid once or in three instalments in April, August and December. For instance, Lagos state government recently extended the period of maternity leave to six months for women and approves paternity leave for male officers under the Lagos State˜s civil servants while Osun State under Ogbeni Aregbesola approves 13th-month pay … 13th month pay is equal to the Total basic salary EARNED during the year divided by 12. In a year, this is a total of 313 days being 365 less 52 Sundays. In our example, the salary differential would be P61,862.50, computed as follows: The Bureau of Internal Revenue (BIR) has yet to issue the rules and regulations on the tax treatment of the maternity benefits under the new maternity law. To compute your 13th month pay, multiply your basic monthly salary to the number of months you have worked for the entire year then divide the result to 12 months. So long … -Maternity leave -Sick leave -Unused vacation leave -Allowance -Overtime -Night differential -Holiday pay Lahat ng hindi kasama sa basic pay mo ay hindi kasama sa computation ng iyong 13th Month Pay Kailan dapat makuha ang 13th Month Pay? 1. T: Kailan dapat ibigay ang 13th month pay? 1 Full pay, as defined in Section I(j), Rule Il of the IRR of RA 11210, refers to actual remuneration or earnings 3. It involves a fictional... read more, TRAIN Law or R.A. 10963 was passed which changed the landscape of taxation of employee compensation. At least for... read more, Immorality can a ground for dismissal of employee. This amount will then be divided by 12, which is the number of months in a year. GRANT OF MATERNITY LEAVE BENEFITS Section 1. 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The result is your 13th month crunch some numbers, TRAIN Law R.A.! Become outdated because of changes in the Philippines and Thirteenth month will compute your 13th-month pay ₱82,000...