13th Month Pay
METHODS:
13th Month Pay will be calculated as (Basic Salary + Inclusions – Exclusions)/12.
Actual Basic Salary
This means that the basic salary that will be used is based on actual from Payroll Register. This will provide an accrual per cut off which will be reflected on Regular Payroll.
Latest Basic Salary
This means that the basic salary to be used in calculation for each cut off across the year will be the latest salary.
ELIGIBILITY:
Employee worked for at least 1 month
Employee is eligible for 13th Month if employee’s Date Hired up to 13th Month generation date is equal or greater than Total Days of the Month; wherein Total Days of the Month is based on last working day of the month of Date Hired. Otherwise, employee is ineligible.
Employee has been payrolled at least once
Employee is eligible for 13th Month if employee is included to at least 1 Approved and Closed Payroll Register.
CUT-OFF PERIOD:
It is recommended that 13th Month Cut-off Period is aligned to Regular Payroll Cut-Off Period. Otherwise, there will be an adjustment need to be made as the source of inclusions and exclusions for the 13th Month calculation are always based on Regular Payroll.
Example: Regular Payroll Cut-off Period is 26th to 10th and 11th to 25th while 13th Month Cut-off Period is December 26 (previous year) to December 25 (next year).
INCLUSIONS:
This pertains to items that will be an addition to 13th Month calculation.
Basic Pay Adjustment
This is the adjustment for basic pay due to salary change. The value will be based on Regular Payroll.
Premiums
These are the earnings from night differentials, overtimes, and holiday pays. This includes the adjustments for premiums due to salary change. The values will be based on Regular Payroll.
Other Compensations
These are the configured other compensations which were used in the regular payroll that may need to be considered as part of the 13th Month. These are from Other Items, Supplementary Compensation, and Deminimis.
EXCLUSIONS:
This pertains to items that will be a deduction to 13th Month calculation. Values of the these items will be based on Regular Payroll.
This includes the respective adjustment (from salary change) for each item such as LWOP Adjustment, Tardiness Adjustment, and Undertime Adjustment.
DE MINIMIS
Monetized leaves are not included in the De Minimis computation.
OTHER
Reimbursement and Tax Refund are not included in Other Compensations.