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Computing Overtime:
On Ordinary Days
Number of hours in excess of 8 hours (125% x hourly rate)
On a rest day, special day or regular holiday
Number of hours in excess of 8 hours (130% x hourly rate)
Computing pay for work done on:
A special day (130% x basic pay)
A special day, which is also a scheduled rest day (150% x basic pay)
A regular holiday (200% x basic pay)
A regular holiday, which is also a scheduled rest day (260% x basic pay)
Computing Night Shift Premium Where Night Shift is a Regular Work:
On Ordinary day (110% x basic hourly rate)
On a rest day, special day, regular holiday (110% of regular hourly rate for a rest day, special day, regular holiday)
Computing Overtime on Night Shift:
On ordinary day (110%) x overtime hourly rate)
On rest day, special day or regular holiday (110% x overtime hourly rate for rest days, special days, regular holidays)
Computing 13th Month Pay:
Total basic salary earned for the year exclusive of overtime, holiday, and night shift differential pay divided by 12 = 13th month pay.
**It was not indicated that the number of absence days will be deducted from the 13th month pay. It is clearly stated that only overtime, holiday and ND pay will be deducted from the total basic salary. MATERNITY should not be deducted cause it is not indicated as per labor code. Also for the first pay since it is taxable it should also be included in the computation of 13th month pay.**
Thanks for for your participation and contribution. I was just about to write an article about the computation of overtime pay. With regard to the absence days to be deducted from the 13th month pay, I believe the law is clear to state the 13th month pay is equal to total "basic salary earned" for the period multiplied by 1/12. Meaning, the total basic salary must be "EARNED" to be incuded in the computation.
thank you
Welcome!
The 13th month pay is required to be paid by all employers to their rank-and-file employees (PD851). Hence, a managerial employee is not mandated to be paid. For the purpose of determining whether your brother is considered a management employee, the labor code provided that "a managerial employee is one who is vested with powers of prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, lay-off, recall discharge, assign or discipline employees, or to effectively recommend such managerial actions."
In your case, you may try to read the "contract of employment" or CBA if your brother is included (usually management employee are not covered by CBA). In his contract of employment, his duties and authorities are stipulated - you can determine if these warrant the definition of a management employee. You may also try to find out if there is an stipulation of 13th month pay benefit to be paid to your brother (which the contract must be respected by the employer).
How long has your brother been employed in this company? Was the grant of 13th month pay applied to all employees in his category or rank? If the company has been granting this for a long period of time, it may have ripened already into a company practice and employees like your brother, even if managerial and not mandatorily and legally entitled to it, may have acquired a vested right and the company cannot just take it away (this is the so-called Non-diminution of benefits).
Did your employer pay you during your maternity leave?
According to DOLE, Maternity benefits, like other benefits granted by the SSS, are granted to employees in lieu of wages and, therefore, may not be included in computing the employee's 13th month pay for the calendar year.
With regard to your right on maternity leave, please be guided by this article in the labor code:
Art. 133. Maternity leave benefits.
a. Every employer shall grant to any pregnant woman employee who has rendered an aggregate service of at least six (6) months for the last twelve (12) months, maternity leave of at least two (2) weeks prior to the expected date of delivery and another four (4) weeks after normal delivery or abortion with full pay based on her regular or average weekly wages. The employer may require from any woman employee applying for maternity leave the production of a medical certificate stating that delivery will probably take place within two weeks.
b. The maternity leave shall be extended without pay on account of illness medically certified to arise out of the pregnancy, delivery, abortion or miscarriage, which renders the woman unfit for work, unless she has earned unused leave credits from which such extended leave may be charged.
c. The maternity leave provided in this Article shall be paid by the employer only for the first four (4) deliveries by a woman employee after the effectivity of this Code.
You may want to read our article on "Philippine Laws for Women at Work."
http://businessaccent.com/2009/11/16/philippine...
Please be guided by the following in computing your 13th Month Pay:
"13monthpay = total basic salary within the calendar year / 12"
"monetary benefits which are not considered or integrated as part of the regular or basic salary" are not included in the computation of 13th month pay."
Assuming you are entitled to 13th Month Pay by your Company, your 13th Month pay shall be computed as follows:
Total basic salary earned during the calendar year / 12 = 13 month pay
or total basic salary you earned during your employment for the calendar year / 12 = 13th month pay
"An employee who has resigned or whose services were terminated at any time before the time for payment of the 13th month pay is entitled to this monetary benefit in proportion to the length of time he worked during the year, reckoned from the time he started working during the calendar year up to the time of his resignation or termination from the service. Thus, if he worked only from January up to September his proportionate 13th month pay should be equivalent of 1/12 his total basic salary he earned during that period."
If you are saying that you started working on March and it will end on Decemeber, I don't think your 13month pay will equal to a one month salary since your total basic salary earned (which run only from March to December) during the calendar year will be divided by 12.
I hope this guides you to answer your question.
Thank you.
can i receive my 13th bonus? my company (government) not giving me becouse i started only last july 15, 2009 but in a permanent position
Employees of the government or any of its political subdivisions, including government-owned and –controlled corporations are NOT covered by the 13th month pay law (PD 851, as amended). Only those corporations operating essentially as private subsidiaries of the Government are covered (See Revised Guidelines on the Implementation of the 13th Month Pay Law).
For government employees, if you started as early as May 1 and worked until Oct 31, you could be entitled.
Please read the article on the part "Who are considered exempted employers?" and the reply of author Vanessa (assenav) to noradeguzman.
Thank you so much.
ikaw man an author hini..hehe. im just a collaborator.
@Kathzy,
If you will look at the "exempted employers" the government is not covered by the 13th month pay law. However, as a common practice, government employees also receive 13th month pay (loosely called also as Bonus), aside from the so-called cash gift. But the grant of this amounts depend on the national budget which should be approved by Congress working together with the Executive Department.
Government employees are given 13th month pay if they have worked from May 1 until October 31 of the same year. Those who are hired on "job order" basis are not entitled to 13th mo pay, like in your case, because it is usually a 5-month term only.
Thanks for the additional Info...
We cannot determine your basic rate for 2007 and 2008 because we do not know how much exactly each of you are receiving. For computation, just follow the following:
13th MONTH PAY = your total basic salary within the calendar year divided by 12
and your BASIC SALARY includes all the payments for your services rendered but does NOT include allowances and monetary benefits which are not considered or integrated as part of the regular or basic salary (example: overtime pay)
NOTE: BASIC RATE is not the same as MINIMUM WAGE. Minimum wage means the lowest pay fixed by law (usually through a wage order) that an employer could give. Your basic rate may be equal to the minimum wage if that is what you actually receive. But basic rate is not always equal to minimum wage, it depends usually on the rank or position of the employee in the company.
Because in our situation, we are not an active employee. I mean we resigned from our previous company last september. But until now, our 13th pay and tax refund has not yet given to us.. What should we do?
"An employee who has RESIGNED...is ENTITLED to this monetary benefit IN PROPORTION to the length of time he worked during the year reckoned FROM the time he STARTED working during the calendar year UP TO the time of his RESIGNATION or termination from the service."
Take note of the word ENTITLED. You can claim it from your employer.
ON THE IMPLEMENTATION OF THE 13TH MONTH PAY LAW:
"The payment of the 13th month pay may be demanded by the employee UPON THE CESSATION of employer-employee relationship. This is consistent with the principle of equity that as the employer can require the employee to clear himself of all liabilities and property accountability, so can the employee demand the payment of all benefits due him UPON THE TERMINATION of the relationship."
Since your employment ended in September, from that time on, you could have already demanded for your 13th month pay for that year.
Can we get this by December 24? Is there any violoations to be filed to the employeer if they doesn't give the 13th month pay?
Yes, the employer violates the 13th month pay law (PD851) if he will not give the 13th month pay because it is required by law.
I have been working for the past 6 years. This year I got employed by a retail group. My employment started on Aug 15. I have been informed that my 13th month pay will include only the basic salary I earned from Aug 15-Oct 31.
Please define CALENDAR year for me...does it pertain to the same calendar we are using or it may also mean the Fiscal year on certain companies?
Thanks much!
December to November cycle is called fiscal year.
Tha law stated that the computation should be for the calendar year..
We follow the law, not the law shall follow us.
Please review the reply of assenav.
Thanks
Does one-month leave because of an injury can be deducted in computation of 13th month? In my case, I am a contractual employee for 3 years and a half. Please enlighten me. Thank you so much.
Let these provisions guide you:
“thirteenth-month pay” shall mean one twelfth (1/12) of the basic salary of an employee within a calendar year."
13Month pay = Total basic salary earning paid during the calendar year / 12
"the “basic salary” of an employee for the purpose of computing the 13th month pay shall include all remunerations or earning paid by this employer for services rendered but does not include allowances and monetary benefits which are not considered or integrated as part of the regular or basic salary, such as the cash equivalent of unused vacation and sick leave credits, overtime, premium, nigh differential and holiday pay, and cost-of-living allowances. However these salary-related benefits should be included as part of the basic salary in the computation of the 13th month pay if by individual r collective agreement, company practice or policy, the same are treated as part of the basic salary of the employees."
I have OBSERVED that most of the commentators are asking questions that are already have been answered by the article itself and by our previous answers to the previous commentators' questions.
So again, READ FIRST the article above and all the previous comments, questions and answers below before making questions. The answer to your question may have already been answered by us.
We are already filtering comments on this article to use time practically.
Thank you
Please read reply on Jrod23's comment.
If you received salary instead of maternity benefits (like SSS) on the other month, then that salary on that month shall be included in the computation of your 13th Month Pay.
Please be assure that you're maternity benefits is tally on the number of days of your maternity leave. If it is an SSS benefit, the number of days you were on leave should tally with the one you have reported to the SSS to avoid SSS reports not in good faith.
I started working with this private company last April 6, 2009, and the boss of the company will be giving the said 13th month pay on the 23rd of December of the same year.
In line with this, the boss said that he wouldn't be including the month of December in the computation of the 13th month pay. Is he right with this computation?
Hoping for an immediate response... thank you...^^
If you're employment is only up to November, then he can be right not to include December in the computation.
If that is not the case, then your 13th Month pay shoud equal to "total basic salary within the calendar year / 12".
But, i still have further inquiries about this matter.
I am still working and my employment didn't end last november or will end this december or at any time soon.
Just to clarify: Given the circumstances, did my boss' lawyer commit a mistake with the computation when he didn't include december?
And, in case i'll be resigning by March, will the month of december be included in the computation (December - March), if, in case, they didn't really include december in the 13th month pay that we'll be receiving this 23rd?
Repeated questions will not help us all!
This is with regards to 13th month. If you exceed 30,000 how is the tax computed for the excess? How my company does it is that let say your month salary is 40,000 which they pay semi-monthly. For the pay period they declare 20,000 as your basic pay and add the 10,000 so your gross for that semi monthly pay is 30,000 from there they deduct the tax.
Employee Status ME1
Base Tax 22,500.00
Excess of Base Tax 32%
Basic Pay 20,000.00
13th Month Taxable 10,000.00
Total Taxable 30,000.00
Withholding 7,608.33
Net 22,391.67
13th Month Non-Tax 30,000.00
Take Home 52,391.67
Is this correct?
Or should the 13th month be computed separately and not included for that specific pay period?
Your income (taxable and non-taxable) should be reported in the year / period they are earned / received.
Any overage or shortage in computing withholding income tax for the calendar year is anyway adjusted and corrected on the year-end month, which is December.
Your 13th Month Pay is computed based on your salary earned during the calendar year.
When you are absent for a day, you do not earn salary for that day. Hence, your 13th Month Pay may be reduced by your absences.
Please find and read our replies on the comment made by Jrod23.
Thank you.
Thank you so much.
just for clarification, I was promoted last october 2009 and my basic salary was adjusted november 2009. Wouldn't be the computation of the 13th month pay be based on the latest or adjusted basic salary instead of the old basic, right?
Please help...
Company send you outside the country for work assignment, provided you $200.00 as allowance. Unfortunately, liquidation was been delayed due to not payment of salaries (3months), employee used the money until he resigned, but indicated that this the amount will be deducted from his unpaid salaries upon clearance. 13th month is mandated by law, the company released the pro-rated 13th month but deducted the $200 = peso equivalent without informing the employee, and worst this was discussed and agreed by their lawyer that $200.00 will be deducted in the salary once the company pays the employee.
I just want to ask, does the company authorized to deducted it without the agreement from the employee? Is the company voilating the law?
http://businessaccent.com/2009/10/18/philippine...
Please scroll down to the "no wage deduction" paragraph and read the exceptions.
Thank you.
With regard to the question whether absences and tardiness affect the computation of the 13th Month Pay. Please read the following supreme court ruling by following the link below:
http://sc.judiciary.gov.ph/jurisprudence/2005/j...
Please take note that the SC ruled that:
1. The “basic salary” of an employee for the purpose of computing the 13th month pay shall include all remunerations or earnings paid by his employer for services rendered but does not include allowances and monetary benefits which are not considered or integrated as part of the regular or basic salary, such as the cash equivalent of unused vacation and sick leave credits, overtime premium, night differential and holiday pay, and cost-of-living allowances.
2.Considering the foregoing, the computation of the 13th month pay should be based on the length of service and not on the actual wage earned by the worker. In the present case, there being no gap in the service of the workers during the calendar year in question, the computation of the 13th month pay should not be pro-rated but should be given in full.
3.More importantly, it has not been refuted that "the employer" has not implemented any pro-rating of the 13th month pay before the instant case. The employer did not adduce evidence to show that the 13th month, 14th month and financial assistance benefits were previously subject to deductions or pro-rating or that these were dependent upon the company’s financial standing. As held by the Voluntary Arbitrator:
The Company explicitly accepted that it was the strike held that prompt[ed] them to adopt a pro-rata computation, aside [from] being in [a] state of rehabilitation due to substantial losses in 1997,1998, 999 due to strike. This is an implicit acceptance that prior to the strike, a full month basic pay computation was the “present practice” intended to be maintained in the CBA.
The Supreme Court ruled that the Company compute 13th Month Pay in full and not in prorated basis, becuase more importantly, this is already the common practice of the Company, which was just halted becuase of substantial losses.
The SC also stated that 13th Month Pay should be based on the length of service and not on the actual wage earned by the worker in that particular case. The SC, conisidering there is no "gap" in the service of the workers during the calendar year in question, ruled that the computation of the 13th month pay should not be pro-rated but should be given in full. Please take note, that anything that will affect the length of service may affect the computation of the 13th Month Pay.
Finally, I encourage everyone to consult labor lawyers and the DOLE /NLRC regarding on this matter for more enlightenment.
Thank you.