# Frequent question: How is 13th month pay computed in the Philippines?

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The formula used in the Philippines is: total basic salary / 12 = 13th month pay. So it is equivalent to one month’s salary of that year. The total basic salary does not include any bonuses or other monetary benefits received that year. … Here the formula is: (monthly salary / 12) x months worked = 13th month pay.

## How is 13th month pay terminated employee calculated?

The 13th month pay of a resigned or separated/terminated employee is in proportion to the length of time he or she has worked during the year, reckoned (a) from the time she has starting working during the calendar year or (b) the time the last 13th month pay was given, up to the time of his/her resignation or …

## How do you calculate 13th month pay?

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. To put it simpler, just get the sum of your basic salary for the calendar year then divide it by twelve.

## What is the rule for 13th month pay?

The only qualification to be entitled to a 13th month pay is that the employee must have worked for at least one (1) month during the calendar year.

## Is OT included in 13th month pay?

• Wage and Wage-Related Benefits

Wage is the amount paid to an employee in exchange for a task, piece of work, or service rendered to an employer. This includes overtime, night differential, rest day, holiday and 13th month pay.

## Who is entitled of 13th month pay?

All non-management employees are entitled to 13th month pay as long as they have worked at least one month for the employer (managers also often receive 13th month pay, although it’s not required).

## Who is entitled separation pay?

In case of termination due to the installation of labor saving devices or redundancy, the employee affected is entitled to a separation pay equivalent to at least his one (1) month pay or to at least one (1) month pay for every year of service, whichever is higher.

## How is DOLE 2020 separation pay calculated?

General formula for separation pay computation:

Basic monthly salary x years of service OR. Basic monthly salary ÷ 2 x years of service.

## Can AWOL get their salary?

Is an employee whose employment has been terminated due to “Absence without Leave” (AWOL) entitled to Final Pay? Yes, an employee whose was Absent without Leave (AWOL) from their job is still entitled to Final Pay.