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13th Month Pay Calculation Guide

Eric worked at BYZ Company for 5 years and resigned on December 31, 2019. He earned 20,000 PHP per month with 3 unpaid leaves in his last year. To calculate his 13th month pay, his daily rate of 1,000 PHP was determined from his monthly salary. His total annual income was calculated as 237,000 PHP by multiplying his monthly salary by 12 months and subtracting the unpaid leaves. His 13th month pay was then determined to be 19,750 PHP by dividing his total annual income by 12 months.

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Jenny Rose Castro Fernandez
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20 views1 page

13th Month Pay Calculation Guide

Eric worked at BYZ Company for 5 years and resigned on December 31, 2019. He earned 20,000 PHP per month with 3 unpaid leaves in his last year. To calculate his 13th month pay, his daily rate of 1,000 PHP was determined from his monthly salary. His total annual income was calculated as 237,000 PHP by multiplying his monthly salary by 12 months and subtracting the unpaid leaves. His 13th month pay was then determined to be 19,750 PHP by dividing his total annual income by 12 months.

Uploaded by

Jenny Rose Castro Fernandez
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

1. Eric was five year employed at BYZ Company. He resigned last Dec.

31,
2019. He was earning Php 20, 000.00 per month with 3 unpaid leave during
his last year. How much is his 13 month pay?

Basic Monthly Salary Php 20,000.00


Daily Rate Php 1,000.00
Length of employment for the calendar year 12 months
Unpaid Leave 3
Total annual income (minus unpaid absences) Php 237,000.00
th
13 month pay Php 19,750.00

Solution:

Daily rate

Basic monthly salary = Daily rate


20

20,000.00 = 1,000.00
20

Total annual income

Basic monthly salary x Length of employment - Unpaid leave = Total annual


income

20,000.00 x 12 - 3,000.00 = 237,000.00

13th month pay


Annual Basic Salary (minus unpaid absences) /12 months = 13th month pay

Php 237,000.00 = Php 19,750.00

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