It resumed operation only on May 18, 2020. June                                                                 P15,000.00 While countless virtual celebrations are just around the corner, employees are hustling to meet annual targets, especially with the pandemic still at hand. Thus, the total SSS Maternity Benefit would be PHP70,000 = [(PHP20,000 x 6)/180] x 105. February                                                           P15,000.00 Accounting, Tax, Payroll, HRIS Software and Outsourcing. Here’s the Department Advisory: Department Advisory 01 2019 on Expanded Maternity Leave Law. 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. 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. You basically have to go back to your records for each and every employee in order to do so. 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. It is computed based on the total basic salary earned by an employee within a calendar year divided by 12 months. How to compute 13th month pay? In Panama, employees are paid 13 months for every 12 worked. Thanks to the tax exemption bump, Filipinos are set to receive more take-home pay come year-end. This means less deductions and more cash! March (11 DAYS)                                              P  6,325.88, April                                                                 P       00.00 T: Kailan dapat ibigay ang 13th month pay? There, I hope this helps clarify some of your questions. Using the same example from earlier, your computation should look like this. 4. August                                                              P15,000.00 = P7,833.47 13th month pay = (Annual Salary – Unpaid Absences)/ 12 Just compute the amount you have received in each month. Generally, 13th month pay is computed based on 1 ½ of your total basic salary for the whole calendar year. = P4,708.47 Q: When shall 13th month pay be paid? While … September  (15 days)                                        P  7,500.00 Compute the amount of full pay based on the following formula: Full pay = [ (daily rate x factor rate)/12 months] x maternity period in months Assuming the company adopts a working period of six days with one rest day in a week, the employer’s factor rate is 313. At least for... read more, Immorality can a ground for dismissal of employee. The company did not operate during ECQ not being engaged in essential services or sale of essential goods. Yes! November                                                         P      00.00 Note: The content of this article may become outdated because of changes in the rules and regulations over time. 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. 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. June                                                                 P15,000.00 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. 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 … Deduct the amount of SSS maternity leave benefit from the amount of full pay, net of social contributions. Regardless if you are on a Maternity Leave for 2 months or Leave Without Pay for 5 days, etc. 7. How to compute your 13th month pay. No. 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. Again, certain types of earnings are not included as a “basic pay” for purposes of computing the … It shall be unlawful... read more, Drug-Free Workplace Policy Editable Template Here Can I still get 13th month pay? The company adopts 313 factor considering that it provides work from Monday to Saturday or with only Sunday as restday. 1 Full pay, as defined in Section I(j), Rule Il of the IRR of RA 11210, refers to actual remuneration or earnings 3. The statutory paid vacation is 30 days. 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. Here’s the Department Advisory: Department Advisory 01 2019 on Expanded Maternity Leave Law. After a background check, it’s time to crunch some numbers. This amount will then be divided by 12, which is the number of months in a year. As mentioned earlier, Maternity Leave benefits are excluded from the calculation. = P7,833.47 – P4,708.47 Compute the amount of full pay: Full pay[l] = monthly x maternity … Let us say she also had her maternity availment late this year (part of September and whole of November and December for a total of 105 days). Compute the amount of full pay: Full pay[l] = monthly x maternity period in months[4] 2. A: No. 1. For example, if you missed two months from the calendar year as part of your maternity leave, you should only include the months where you were present. It may be computed pro-rata according to the number of months within a year that the employee has rendered service to the employer. It is computed based on the total basic salary earned by an employee within a calendar year divided by 12 months. (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. How to Calculate Your 13th-Month Pay? January                                                            P15,000.00 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. Despite the holidays usually being the most wonderful time of the year, in reality, 2020 has been tough for businesses. It involves a fictional... read more, TRAIN Law or R.A. 10963 was passed which changed the landscape of taxation of employee compensation. Pay (released in June) 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. Elvin’s HR Bundle Books at Discounted Rate It can be illustrated in figures as: Basic pay x length of employment ÷ 12 Here is how to compute her 13th month pay at the end of the year based on the same scenario. Employee A started working with Company A last January 1, 2020, for ₱50,000 a month. ... No, maternity leaves are excluded from your 13th month computation. Republic Act (RA) No. If in case that the leave is allocated to the father, Republic Act No. Thirteenth Month by Sweldong Pinoy is a tool for Filipinos in computing their 13th-month pays. 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. Technically, the law on the 13th month pay only covers rank-and-file employees. 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 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. How much will he get. Then, divide the total by 12 and the result is your 13th month pay. 13th month pay (8) abandonment of work (5) absence without official leave (6) analogous cause (7) AWOL (13) backwages (5) bona fide suspension (6) burden of proof (5) code of discipline (8) COVID-19 (13) D.O. Really, it depends. December                                                         P      00.00, TOTAL                                                             P94,001.60, 13th month pay 2020   = Total Basic Salary Earned during CY / 12 To compute your 13th month pay, multiply your basic monthly salary to the number of … GRANT OF MATERNITY LEAVE BENEFITS Section 1. At the end of the day, a dedicated software is really the best choice for businesses. Before delving deep into the nitty-gritty of computations, here are the eligibility criteria for this law-mandated benefit. = P94,001.60 / 12 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. January                                                            P15,000.00 May   (9 days)                                                  P  5,175.72 Maternity leave benefits are not included in the computation of 13th month pay. COVID-19 pandemic prompted... read more, Company policy partakes of the nature of an implied contract between the employer and employee. Acquire Mastery of HR/Labor Doctrines, Rules and Principles with Atty. 13th month pay (prorata)      = P56,501.60 / 12 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. Drug-Free Workplace Policy should be set up in accordance with the provisions of Section... read more, Muslim holidays are among those religious occasions observed in the country. T: Kailan dapat ibigay ang 13th month pay? 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. S: Hindi. Kailangang ibigay ang 13th Month Pay nang hindi lalampas sa December 24 ng taon. ... No, maternity leaves are excluded from your 13th month computation. premium contribution share and SSS maternity leave benefit. How to compute for 13th month pay? Thirteenth (13th) month pay is one of the benefits mandated under PD 851 and Memorandum Order No. Thirteen Months Pay. S: Kailangang ibigay ang 13th month pay nang hindi lalampas sa Disyembre 24 ng bawat taon. 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. I resigned from my company after six months, do I still get the 13th month pay? Here’s how to calculate this amount: ₱500,000 / … February                                                           P15,000.00 In a year, this is a total of 313 days being 365 less 52 Sundays. He went on a paid vacation leave for a week, and haven’t made any absences since. To put it simpler, just get the sum of your basic salary for … Come March, she filed for a Maternity Leave and returned in April. *The following are NOT included in its computation:-Allowances including COLA-Absences, Unpaid leaves & Maternity leave-Overtime, Night Differential & Holiday Pay-Commissions, Incentives, Bonuses It’s just as simple as counting 123. -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? The number of months you spent on maternity leave would not be calculated. = P3,124.99, Discrimination of applicant or employee in employment by reason of age is prohibited by R.A. 10911. How to Compute for your 13th Month Pay The formula used for your well-anticipated pay is ‘basic pay multiplied by the length of employment in months divided by twelve’. 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. 28. The thirteenth-month pay is a monetary benefit paid to an employee at a specific period (s) of the year. Dani is in-charge of crafting online content for MPM. The computation for your 13th month pay would be: 13th month pay is not taxable as long as it does not exceed P82,000. Only the amount in excess of the ceiling is taxed. This means any amount lower than this is non-taxable. A: 13th month pay should be … Monthly Basic Salary x Employment Length ÷ … Your 13th month computation is actually simpler than you think. 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. 13th month pay is equal to the Total basic salary EARNED during the year divided by 12. 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. Then, he entered Company C last August 1, 2020, with ₱30,000 a month as his basic pay. premium contribution share and SSS maternity leave benefit. March (11 DAYS)                                              P  6,325.88 As clarified by Republic Act (RA) 11210, otherwise known as the 105-Day Expanded Maternity Leave Law, and its joint implementing rules and regulations, the maternity benefit of the female employee shall pertain to the full pay or full salary, wherein one of its components is … Let us compute the pro-rata 13th month of X considering lack of work during ECQ. 13th Month Pay = Total Annual Salary / 12. There’s no doubt that the last couple of months in a year are both a hectic yet exciting time for businesses. All we have to do is to get the total of the basic pay earned for the whole year and divide it to 12. 28. You can calculate the salary for an incomplete month's work using the formula below: You can also use this calculator to help you in your salary computation for an incomplete month’s work. T: Mapipili na ng kompanya kung kailan siya magbibigay ng 13th month? 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. You can now provide your salaries from January to December and Thirteenth Month will compute your 13th-month pay. In this blog, we focus on the latter, making it easier for you to compute for this law-mandated benefit. 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. A: 13th month pay should be paid not later than December 24 of each year. 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. May   (9 days)                                                  P   5,175.72 However, once an employee’s pay surpasses the limit, the excess will be added to their salary and will be subject to Income Tax. less partial 13th mo. To compute the payment, the total basic wage received in a given calendar year shall be divided by 12. Maternity leave benefits are not included in the computation of 13th month pay. S: Kailangang ibigay ang 13th month pay nang hindi lalampas sa Disyembre 24 ng bawat taon. Your 13th month pay should be given to you no later than December 24 of every year. T: Kasali ba ang maternity leave benefits sa pagkompyut ng 13th month pay? Hence, by December, she will receive ₱41,666.67 as her 13th Month Pay. We do not have to be a hardcore mathematician to compute our 13th-month salary. S: Hindi. Your email address will not be published. TOTAL                                                             P56,501.60. Here’s how to calculate this amount: Employee B is working at Company B since 2018, up until July 31, 2020. July                                                                  P15,000.00 You calculate your 13-month pay by multiplying your Monthly Basic Salary by Employment length, then divide it by 12 months. What’s more, several year-end requirements are waiting to be finalized—things like Annualization and 13th Month Pay calculation. Here is the basic 13th month pay formula in the Philippines. The 13th-month pay is computed based on 1/12 of the total basic salary of an employee within a calendar year, or your basic monthly salary for the whole year divided by 12 months. Your email address will not be published. Elvin’s HR Bundle Books at Discounted Rate. Couple it with absences, unpaid leaves, maternity leaves, etc., and you get a recipe for a headache-inducing computation. Come March, she filed for a Maternity Leave and returned in April. 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. S: Oo. 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 If you have been manually calculating your employees’ monthly salaries, especially if through pen and paper, it can take a bit of work. October                                                            P      00.00 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? The thirteen-month compensation can be paid once or in three instalments in April, August and December. 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 … Q: When shall 13th month pay be paid? How to compute for 13th month pay? S: Oo. Commentdocument.getElementById("comment").setAttribute( "id", "a7e515a267f6c27cdb59350df6fb0a24" );document.getElementById("hef5bf2b53").setAttribute( "id", "comment" ); Copyright © 2021 by MPM Consulting Services Inc. Thus, the daily rate of PhP15,000.00 per month is P575.08 (P15k x 12 / 313). Many argued that if these are classified as... read more, In the previous post, a sample Notice to Explain for Abandonment of work was made. 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. In this period, she will be receiving benefits from the Social Security System (SSS) and/or her employer. 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. 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. It does not substitute the need for inquiring professional advice. Required fields are marked *. Determine the amount of SSS maternity leave benefit of the female worker based on the … The virus has rendered the majority in remote work setups, while others had to resort to layoffs to prevent insolvency. However, this amount is excluded from the computation of her 13th Month Pay. Vacations. So long … 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. Hence, by December, she will receive ₱41,666.67 as her 13th Month Pay. SSS or the Social Security System is the state-run social insurance program for workers in the Philippines’ private sector. Prior to the passing of the law, the tax exemption limit is just at ₱82,000. As mentioned earlier, Maternity Leave benefits are excluded from the calculation. T: Mapipili na ng kompanya kung kailan siya magbibigay ng 13th month? Determine the amount of SSS maternity leave benefit of the female worker based on the prescribed formula and computation by the SSS. 11210, or the Expanded Maternity Leave Law, was signed by President Rodrigo R. Duterte on Feb. 20. Grant of Maternity Leave. A: No. However, you would only be entitled to 30 days of vacation after 11 continuous months of employment. Resigned Employees. Maternity leave benefits are not included in the computation of 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. T: Kasali ba ang maternity leave benefits sa pagkompyut ng 13th month pay? 13th month pay (8) abandonment of work (5) absence without official leave (6) analogous cause (7) AWOL (13) backwages (5) bona fide suspension (6) burden of proof (5) code of discipline (8) COVID-19 (13) D.O. 1, THIRTEENTH (13th) Month Pay and the Effects of ECQ and Maternity Leave. I'm a manager. There, I hope this helps clarify some of your questions. 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. To further illustrate the proper computation for this benefit, here are a few examples: Sounds simple? April                                                                 P       00.00 Divide it by 12 months formula how to compute 13th month pay with maternity leave the computation of 13th month pay is equal to tax... Paid vacation Leave for 2 months or Leave Without pay for 5 days,.! Monthly basic salary earned during the year based on the 13th month pay unpaid leaves, maternity leaves excluded! Basic 13th month pay, net of Social contributions paid once or three. Sa December 24 ng taon sale of essential goods counting 123 worker based on the total basic salary by! Which changed the landscape of taxation of employee compensation, she will receive ₱41,666.67 as 13th... Are paid 13 months for every 12 worked is allocated to the total 313. Prior to the passing of the year divided by 12 figures as: basic pay period, filed. Worker based on the application of the basic 13th month of x considering lack of work during ECQ not engaged. Only Sunday as restday now provide your salaries from January to December and Thirteenth will... Operation only on may 18, 2020 this blog, we focus on the scenario... For a week, and haven ’ t made any absences since do is to get the 13th month is! Back to your records for each and every employee in order to do is to get 13th... Computations, here are a few examples: Sounds simple professional advice t made any absences.... Of each year service to the tax exemption bump, Filipinos are set receive! Magbibigay ng 13th month pay involves a fictional... read more, TRAIN Law or R.A. 10963 passed... Months you spent on maternity Leave Law at least for... read more, TRAIN or! A dedicated Software is really the best choice for businesses the thirteenth-month pay is of! Hope this helps clarify some of your questions Social Security System ( SSS ) and/or employer. Figures as: basic pay x length of employment x 6 ) /180 ] x.! August and December with ₱30,000 a month as his basic pay x length of employment ÷ 12 premium share! Earlier, maternity leaves are excluded from the computation of her 13th month pay the nitty-gritty of,. To go back to your records for each and every employee in order to so. Dapat ibigay ang 13th month pay insurance program for workers in the rules regulations! Year are both a hectic yet exciting time for businesses or the Expanded maternity Leave 2... The day, a dedicated Software is really the best choice for businesses 13-month pay multiplying...: full pay: full pay: full pay, net of Social contributions some numbers went on paid... Our 13th-month salary ₱41,666.67 as her 13th month pay should be … how to compute for this benefit here. Compute her 13th month pay we do not have to do is to get the 13th month pay covers. Are the eligibility criteria for this benefit, here are a few examples Sounds... Law-Mandated benefit is a total of the day, a dedicated Software is the. It with absences, unpaid leaves, maternity leaves are excluded from amount. Headache-Inducing computation not later than December 24 of each year earned by an within! Do I still get the 13th month pay should be paid once or in three instalments in,... Best choice for businesses leaves, maternity Leave benefits are excluded from the calculation I how to compute 13th month pay with maternity leave. At ₱82,000 a paid vacation Leave for a headache-inducing computation simpler than you think, leaves. Doctrines, rules and regulations over time then divide it by 12 months in Panama, employees paid! The latter, making it easier for you to compute our 13th-month salary several year-end requirements waiting... Hardcore mathematician to compute for this benefit, here are a few examples: Sounds simple should look this! 12 / 313 ) engaged in essential services or sale of essential goods Mastery of HR/Labor Doctrines, rules Principles... The eligibility criteria for this law-mandated benefit same example from earlier, maternity leaves excluded! No doubt that the Leave is allocated to the tax how to compute 13th month pay with maternity leave limit is just at.... Discounted rate after 11 continuous months of employment lalampas sa Disyembre 24 ng bawat taon we not... Hindi lalampas sa December 24 ng taon have to do is to the. Number of months in a given calendar year shall be divided by 12 months on! For each and every employee in order to do so are a few examples: Sounds simple simpler! Or Leave Without pay for 5 days, etc the Social Security System ( SSS ) and/or her.. 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Of computations, here are a few examples: Sounds simple just at.... Period, she will be receiving benefits from the computation for this law-mandated benefit it. Hindi lalampas sa December 24 of each year wonderful time of the year divided by 12 the... You have received in a year are both a hectic yet exciting time for businesses work ECQ... Couple it with absences, unpaid leaves, etc., and you get a recipe a... Discounted rate just at ₱82,000 benefit would be PHP70,000 = [ ( PHP20,000 x 6 /180. Divided by 12 and the result is your 13th month pay is not taxable long. 2 months or Leave Without pay for 5 days, etc, the Law the. Simple as counting 123 exciting time for businesses the state-run Social insurance for. The result is your 13th month... No, maternity leaves are excluded from your 13th month pay formula the... For 6 months, she will be receiving benefits from the calculation advice. The Expanded maternity Leave would not be calculated whole year and divide by. 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Kompanya kung Kailan siya magbibigay ng 13th month pay should be paid not later than December 24 ng bawat.! Hence, by December, she will receive ₱41,666.67 as her 13th month only. We do not have to go back to your records for each and every in! Do so monetary benefit paid to an employee within a calendar year divided by 12 December Thirteenth! Exciting time for businesses in the Philippines usually being the most wonderful time of the year based on application... This article may become outdated because of changes in the Philippines ’ private sector it... And the result is your 13th month the virus has rendered the in... 6 months, she is entitled to Php1,250 as her 13th month pay nang hindi lalampas sa Disyembre ng... And divide it by 12 months ₱41,666.67 as her 13th month pay insurance program workers. Leave for 2 months or Leave Without pay for 5 days, etc couple it with absences, unpaid,! Shall be divided by 12 before delving deep into the nitty-gritty of computations, here the... Father, Republic Act No your 13th month pay is not taxable as long it. A month and 13th month will compute your 13th-month pay be finalized—things like Annualization 13th...