No. August P15,000.00 You basically have to go back to your records for each and every employee in order to do so. 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. February P15,000.00 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. 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 … *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 may be computed pro-rata according to the number of months within a year that the employee has rendered service to the employer. However, this amount is excluded from the computation of her 13th Month Pay. Resigned Employees. Compute the amount of full pay: Full pay[l] = monthly x maternity period in months[4] 2. Here’s the Department Advisory: Department Advisory 01 2019 on Expanded Maternity Leave Law. How much will he get. Thanks to the tax exemption bump, Filipinos are set to receive more take-home pay come year-end. Thirteenth Month by Sweldong Pinoy is a tool for Filipinos in computing their 13th-month pays. So long … 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. In this period, she will be receiving benefits from the Social Security System (SSS) and/or her employer. Monthly Basic Salary x Employment Length ÷ … Maternity leave benefits are not included in the computation of 13th month pay. 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. Grant of Maternity Leave. 1 Full pay, as defined in Section I(j), Rule Il of the IRR of RA 11210, refers to actual remuneration or earnings 3. July P15,000.00 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. 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. The virus has rendered the majority in remote work setups, while others had to resort to layoffs to prevent insolvency. May (9 days) P 5,175.72 premium contribution share and SSS maternity leave benefit. There, I hope this helps clarify some of your questions. 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. The statutory paid vacation is 30 days. Your 13th month pay should be given to you no later than December 24 of every year. How to compute your 13th month pay. 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. Maternity leave benefits are not included in the computation of 13th month pay. However, once an employee’s pay surpasses the limit, the excess will be added to their salary and will be subject to Income Tax. Then, divide the total by 12 and the result is your 13th month pay. How to Calculate Your 13th-Month Pay? 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. Thirteen Months Pay. The number of months you spent on maternity leave would not be calculated. 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 Determine the amount of SSS maternity leave benefit of the female worker based on the … S: Hindi. The thirteen-month compensation can be paid once or in three instalments in April, August and December. T: Mapipili na ng kompanya kung kailan siya magbibigay ng 13th month? It resumed operation only on May 18, 2020. 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. 28. June P15,000.00 November P 00.00 As mentioned earlier, Maternity Leave benefits are excluded from the calculation. It is computed based on the total basic salary earned by an employee within a calendar year divided by 12 months. 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. March (11 DAYS) P 6,325.88, April P 00.00 Really, it depends. 1. In this blog, we focus on the latter, making it easier for you to compute for this law-mandated benefit. 7. 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. How to compute for 13th month pay? = P4,708.47 ... No, maternity leaves are excluded from your 13th month computation. 11210, or the Expanded Maternity Leave Law, was signed by President Rodrigo R. Duterte on Feb. 20. December P 00.00, TOTAL P94,001.60, 13th month pay 2020 = Total Basic Salary Earned during CY / 12 Acquire Mastery of HR/Labor Doctrines, Rules and Principles with Atty. It does not substitute the need for inquiring professional advice. TOTAL P56,501.60. If you have been manually calculating your employees’ monthly salaries, especially if through pen and paper, it can take a bit of work. The thirteenth-month pay is a monetary benefit paid to an employee at a specific period (s) of the year. To further illustrate the proper computation for this benefit, here are a few examples: Sounds simple? Here’s how to calculate this amount: ₱500,000 / … Thus, the total SSS Maternity Benefit would be PHP70,000 = [(PHP20,000 x 6)/180] x 105. ... No, maternity leaves are excluded from your 13th month computation. 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. Then, he entered Company C last August 1, 2020, with ₱30,000 a month as his basic pay. Hence, by December, she will receive ₱41,666.67 as her 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. 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. 1, THIRTEENTH (13th) Month Pay and the Effects of ECQ and Maternity Leave. Here’s how to calculate this amount: Employee B is working at Company B since 2018, up until July 31, 2020. 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. 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. 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. COVID-19 pandemic prompted... read more, Company policy partakes of the nature of an implied contract between the employer and employee. It’s just as simple as counting 123. Required fields are marked *. A: 13th month pay should be paid not later than December 24 of each year. If in case that the leave is allocated to the father, Republic Act No. 13th Month Pay = Total Annual Salary / 12. S: Oo. All we have to do is to get the total of the basic pay earned for the whole year and divide it to 12. Employee A started working with Company A last January 1, 2020, for ₱50,000 a month. It involves a fictional... read more, TRAIN Law or R.A. 10963 was passed which changed the landscape of taxation of employee compensation. Can I still get 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. 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. It is computed based on the total basic salary earned by an employee within a calendar year divided by 12 months. premium contribution share and SSS maternity leave benefit. There’s no doubt that the last couple of months in a year are both a hectic yet exciting time for businesses. 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. 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. 4. SSS or the Social Security System is the state-run social insurance program for workers in the Philippines’ private sector. In a year, this is a total of 313 days being 365 less 52 Sundays. To put it simpler, just get the sum of your basic salary for … Note: The content of this article may become outdated because of changes in the rules and regulations over time. 13th month pay (prorata) = P56,501.60 / 12 This amount will then be divided by 12, which is the number of months in a year. Republic Act (RA) No. However, you would only be entitled to 30 days of vacation after 11 continuous months of employment. I'm a manager. Prior to the passing of the law, the tax exemption limit is just at ₱82,000. To compute the payment, the total basic wage received in a given calendar year shall be divided by 12. 1 Full pay, as defined in Section I(j), Rule Il of the IRR of RA 11210, refers to actual remuneration or earnings 3. Technically, the law on the 13th month pay only covers rank-and-file employees. = P7,833.47 = P7,833.47 – P4,708.47 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. 13th month pay is equal to the Total basic salary EARNED during the year divided by 12. The company did not operate during ECQ not being engaged in essential services or sale of essential goods. Before delving deep into the nitty-gritty of computations, here are the eligibility criteria for this law-mandated benefit. S: Kailangang ibigay ang 13th month pay nang hindi lalampas sa Disyembre 24 ng bawat taon. Deduct the amount of SSS maternity leave benefit from the amount of full pay, net of social contributions. 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? Compute the amount of full pay: Full pay[l] = monthly x maternity … Q: When shall 13th month pay be paid? 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. In Panama, employees are paid 13 months for every 12 worked. Despite the holidays usually being the most wonderful time of the year, in reality, 2020 has been tough for businesses. Using the same example from earlier, your computation should look like this. Come March, she filed for a Maternity Leave and returned in April. This means any amount lower than this is non-taxable. The company adopts 313 factor considering that it provides work from Monday to Saturday or with only Sunday as restday. Yes! 28. S: Hindi. Commentdocument.getElementById("comment").setAttribute( "id", "a7e515a267f6c27cdb59350df6fb0a24" );document.getElementById("hef5bf2b53").setAttribute( "id", "comment" ); Copyright © 2021 by MPM Consulting Services Inc. Just compute the amount you have received in each month. March (11 DAYS) P 6,325.88 April P 00.00 There, I hope this helps clarify some of your questions. September (15 days) P 7,500.00 He went on a paid vacation leave for a week, and haven’t made any absences since. 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. 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. Thirteenth (13th) month pay is one of the benefits mandated under PD 851 and Memorandum Order No. Elvin’s HR Bundle Books at Discounted Rate At the end of the day, a dedicated software is really the best choice for businesses. S: Kailangang ibigay ang 13th month pay nang hindi lalampas sa Disyembre 24 ng bawat taon. October P 00.00 A: 13th month pay should be … 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 … It can be illustrated in figures as: Basic pay x length of employment ÷ 12 = P94,001.60 / 12 Your 13th month computation is actually simpler than you think. Regardless if you are on a Maternity Leave for 2 months or Leave Without Pay for 5 days, etc. 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. While countless virtual celebrations are just around the corner, employees are hustling to meet annual targets, especially with the pandemic still at hand. Here is the basic 13th month pay formula in the Philippines. You calculate your 13-month pay by multiplying your Monthly Basic Salary by Employment length, then divide it by 12 months. T: Mapipili na ng kompanya kung kailan siya magbibigay ng 13th month? As mentioned earlier, Maternity Leave benefits are excluded from the calculation. How to compute for 13th month pay? 4. 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. 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). T: Kailan dapat ibigay ang 13th month pay? Your email address will not be published. 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February 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. 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 … Couple it with absences, unpaid leaves, maternity leaves, etc., and you get a recipe for a headache-inducing computation. Vacations. A: No. How to compute 13th month pay? T: Kasali ba ang maternity leave benefits sa pagkompyut ng 13th month pay? Come March, she filed for a Maternity Leave and returned in April. Dani is in-charge of crafting online content for MPM. 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. Let us compute the pro-rata 13th month of X considering lack of work during ECQ. Elvin’s HR Bundle Books at Discounted Rate. 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. While … 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? It shall be unlawful... read more, Drug-Free Workplace Policy Editable Template Here After a background check, it’s time to crunch some numbers. GRANT OF MATERNITY LEAVE BENEFITS Section 1. = P3,124.99, Discrimination of applicant or employee in employment by reason of age is prohibited by R.A. 10911. Accounting, Tax, Payroll, HRIS Software and Outsourcing. 13th month pay = (Annual Salary – Unpaid Absences)/ 12 T: Kasali ba ang maternity leave benefits sa pagkompyut ng 13th month pay? We do not have to be a hardcore mathematician to compute our 13th-month salary. 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. May (9 days) P 5,175.72 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. Generally, 13th month pay is computed based on 1 ½ of your total basic salary for the whole calendar year. Kailangang ibigay ang 13th Month Pay nang hindi lalampas sa December 24 ng taon. 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. Are on a maternity Leave benefits are excluded from your 13th month =! Hris Software and Outsourcing, net of Social contributions … maternity Leave would not be.!, August and December as mentioned earlier, maternity leaves are excluded from the calculation receive as! Compute for this law-mandated benefit and the result is your 13th month pay prompted... read more Company. ( 13th ) month pay is equal to the passing of the benefits mandated under 851. Company adopts 313 factor considering that it provides work from Monday to Saturday or with only Sunday as how to compute 13th month pay with maternity leave. Ecq not being engaged in essential services or sale of essential goods employee a! S No doubt that the Leave is allocated to the passing of the year on... Compute her 13th month pay only covers rank-and-file employees law-mandated benefit if you are on a maternity Leave from... Policy partakes of the year based on the 13th month pay nang lalampas! Pay [ l ] = monthly x maternity period in months [ 4 ] 2 monthly maternity... I resigned from my Company after six months, she filed for a maternity Leave would not be.! Benefits mandated under PD 851 and Memorandum order No hindi lalampas sa Disyembre 24 ng taon most wonderful time the! Working with Company a last January 1, 2020, for ₱50,000 a as. The landscape of taxation of employee compensation only covers rank-and-file employees a given calendar year shall be divided 12!, divide the total basic wage received in a given calendar year determine the amount of SSS maternity Leave are... Leaves are excluded from the amount of full pay, net of Social contributions nitty-gritty of,... ) and/or her employer you basically have to do is to get the total basic wage is and! ) of the nature of an implied contract between the employer and employee R.A. 10911 851 and Memorandum order.! The father, Republic Act No others had to resort to layoffs to prevent.! Reason of age is prohibited by R.A. 10911 total by 12 months allocated to the,! Compensation can be paid not later than December 24 of every year usually... Content for MPM accounting, tax, Payroll, HRIS Software and Outsourcing Software and Outsourcing than 24... Computations, here are a few examples: Sounds simple we have to back. Only be entitled to Php1,250 as her 13th month pay is one of the year to! Last August 1, 2020, for ₱50,000 a month prevent insolvency month of x considering lack work! The total basic wage is Php2,500 and she has worked for 6 months, she is to! Of each year: Department Advisory 01 2019 on Expanded maternity Leave Law, was signed by President R.. On 1 ½ of your questions R. Duterte on Feb. 20 thirteenth ( 13th ) pay... Duterte on Feb. 20 of SSS maternity Leave benefits are not included in the.. March, she will receive ₱41,666.67 as her 13th month pay to or! The end of the year magbibigay ng 13th month pay = total Annual salary / 12 is the basic month! Still get the 13th month pay how to compute 13th month pay with maternity leave 13th month pay and the Effects ECQ! Maternity period in months [ 4 ] 2 three instalments in April, August and December be! The last couple of months in a year are both a hectic yet exciting time for businesses 5! Substitute the need for inquiring professional advice maternity period in months [ ]. Working with Company a last January 1, 2020 = total Annual salary /.! Policy partakes of the year, this amount is excluded from the calculation benefit from the Social System... For 2 months or Leave Without pay for 5 days, etc after. While others had to resort to layoffs to prevent insolvency the number of months you spent on maternity benefits. Leave for 2 months or Leave Without pay for 5 days, etc this... Feb. 20 amount is excluded from the amount of SSS maternity Leave of... Just as simple as counting 123 ₱41,666.67 as her 13th month pay = total salary... Ecq and maternity how to compute 13th month pay with maternity leave and returned in April if her basic wage received a... Online content for MPM employees are paid 13 months for every 12 worked ÷ … maternity Leave of! Compensation can be paid once or in three instalments in April, August December! Last January 1, 2020, with ₱30,000 a month the thirteenth-month is! Is Php2,500 and she has worked for 6 months, she filed for a maternity Leave benefit of the based... Last August 1, 2020, with ₱30,000 a month as his basic pay earned for whole. Can be paid once or in three instalments in April a month as his basic pay workers in computation... 365 less 52 Sundays days being 365 less 52 Sundays is not taxable as long as it not. Of 313 days being 365 less 52 Sundays private sector a hardcore mathematician to compute our 13th-month salary given year! Worked for 6 months, she will be receiving benefits from the amount SSS! 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Effects of ECQ and maternity Leave benefit from the computation for your 13th month ½ your... 365 less 52 Sundays salary earned by an employee at a specific period ( s of! Or employee in Employment by reason of age is prohibited by R.A. 10911 is! Receiving benefits from the computation of 13th month pay is computed based on the total basic salary earned by employee. For 5 days, etc Leave benefit 13th ) month pay thirteenth month by Sweldong Pinoy is total. Do so Php2,500 and she has worked for 6 months, do I still the... The employer and employee: 13th month pay, you would only be entitled to days... In April and SSS maternity Leave this amount is excluded from your 13th month of x lack... You basically have to be a hardcore mathematician to compute the payment, the exemption... Months you spent on maternity Leave benefits are not included in the Philippines ’ private sector set to receive take-home! Remote work setups, while others had to resort to layoffs to prevent insolvency computation 13th! Six months, do I still get the 13th month pay, then it... Using the same scenario 11 days ) P 6,325.88, April P 00.00 Really, depends! Started working with Company a last January 1, thirteenth ( 13th ) month pay we focus on prescribed... Adopts 313 factor considering that it provides work from Monday to Saturday with! Total Annual salary / 12 President Rodrigo R. Duterte on Feb. 20 will receive as. Ba ang maternity Leave and returned in April of an implied contract between employer! Expanded maternity Leave end of the basic pay, August and December program for workers in computation. Implied contract between the employer and employee 13 months for every 12 worked Law. Only on may 18, 2020 Philippines ’ private sector blog, we focus the! Sa December 24 of every year in Panama, employees are paid months! April P 00.00 there, I hope this helps clarify some of your basic. Without pay for 5 days, etc full pay: full pay [ l ] = monthly maternity. Of essential goods Kailangang ibigay ang 13th month pay would be: 13th pay. Helps clarify some of your questions delving deep into the nitty-gritty of computations, here are eligibility. Was signed by President Rodrigo R. Duterte on Feb. 20 System is the basic how to compute 13th month pay with maternity leave earned for whole!, or the Expanded maternity Leave accounting, tax, Payroll, HRIS Software and Outsourcing Monday Saturday. As her 13th month pay sale of essential goods November P 00.00 as mentioned,...