What is 13th-Month Pay?
The 13th-month pay is a mandatory benefit under Philippine law.
It equals one-twelfth (1/12) of an employee's total basic annual salary.
It must be paid no later than December 24 each year.
Employees qualify if they have worked at least one month during the calendar year.
Calculation:
13th-month pay= Total basic salary earned in the year / 12
For eligible employees, 13th-month pay uses basic salary actually earned during the calendar year divided by 12. Voluntary 14th-month pay is a separate benefit entered as variable pay.
What About 14th-Month Pay?
The 14th-month pay is not required by law. Some companies choose to offer it voluntarily as an additional benefit, often as a mid-year or year-end bonus.
How to Add 14th-Month Pay in Remote People
If you wish to provide a 14th-month pay:
Add it as variable pay in the Remote People Portal.