Tag - 13th month pay

How to Correctly Compute Thirteenth (13th) Month Pay Labor Advisory Guidelines Per Labor Advisory 18, Series of 2021

Acquire Mastery of HR/Labor Doctrines, Rules and Principles with Atty. Elvin’s HR Bundle Books at Discounted Rate Thirteenth (13th) month pay is one of the benefits mandated to be granted to rank-and-file employees. The legal basis for the grant is P.D. 851, as amended by Memorandum Order No. 28, Series of 1986. The usual error in implementing this is the default practice of giving the one month equivalent of the monthly salary. Worse, deducting from the said salary the amount pertaining [...]

Thirteenth (13th) Month Pay Guidelines Per Labor Advisory 18, Series of 2021

Thirteenth (13th) Month Pay is one of the benefits granted to rank-and-file employees pursuant to P.D. 851, as amended by Memorandum Order No. 28, Series of 1986. The benefit should be given not later than 24 of December every year based on the total basic salary earned during the calendar year divided by twelve months. The Department of Labor And Employment (DOLE) usually issues Labor Advisory in support of the implementation among the private sectors. On 25 October 2021, the [...]

Sample Computation of 13th Month Pay for Year 2020

Sample computation of the 13th month pay mandatory benefit is shown here to guide both the employer and employee especially that the date of payment under the law is getting closer. Under P.D. 851, all employers are required to pay all their employees receiving a basic salary a 13th-month pay not later than December 24 of every year. Memorandum No. 28 modified Section 1 of P.D. 851 to the extent that all employees are hereby required to pay all [...]

Thirteenth (13th) Month Pay Labor Advisory Guidelines for Year 2020

Thirteenth (13th) month pay guidelines have been issued by the Department of Labor and Employment (DOLE) in a Labor Advisory issued on October 16, 2020. The authority of the DOLE to issue the guidelines is pursuant to Article 5 of the Labor Code of the Philippines, as renumbered and in accordance with Presidential Decree No. 851 requiring employers in the private sector to pay their rank and-file employees a 13th Month Pay. Coverage Rank-and-file employees in the private sector shall be [...]

THIRTEENTH (13th) Month Pay and the Effects of ECQ and Maternity Leave

Thirteenth (13th) month pay is one of the benefits mandated under PD 851 and Memorandum Order No. 28. It is computed based on the total basic salary earned by an employee within a calendar year divided by 12 months. The question is what happens if in this year 2020 the company did not operate due to ECQ considering that it is not into the business of selling essential goods or providing essential services Below is an illustration on the application [...]

13th Month Pay Computation: Explaining the Common Formulas Used with Sample Computations

Acquire Mastery of HR/Labor Doctrines, Rules, and Principles. Avail of the Discounted HR Bundle of Atty. Elvin now 13th month pay shall mean one twelfth (1/12) of the basic salary of an employee within a calendar year. (See Guide on Employee Compensation and Benefits Vol. 2, 2nd Edition, by Atty. Elvin B. Villanueva citing Section 2, Rules and Regulations Implementing Presidential Decree No. 851). This shall apply only to rank-and-file employees. A rank-and-file employee must have worked for at least [...]

13th Month Pay Sample Computation of Employee in NCR who Resigned Before the Year Ends

13th Month Pay is one of the mandatory benefits that should be given to covered employees. Under P.D. 851 all employers are required to pay all their employees, regardless of the nature of their employment, a 13th-month pay not later than December 24 of every year. The question is should this cover all employees such as even those holding supervisory and managerial positions? On August 13, 1986, President Aquino issued Memorandum Order No. 28 modifying P.D. 851 to the extent [...]

TAX RULES ON EMPLOYEE BENEFITS AND PAY UNDER THE TAX REFORM FOR ACCELERATION AND INCLUSION (TRAIN)

Tax rules on employee compensation and benefits change dramatically with the TRAIN law. On December 19, 2017 Congress enacted R.A. 10963, otherwise known as the Tax Reform for Acceleration and Inclusion (TRAIN) which changed substantially the taxation rules on employee salaries and benefits. TRAIN law took effect on January 1, 2018. Grab a copy of the newly released title Tax Solutions on Employee Compensation and Benefits (under TRAIN Law), 2nd Edition 2019 by Atty. Villanueva The most notable change is the Tax [...]

13TH Month Pay, Christmas and Other Bonuses Issues on Taxation

13th month pay, as a general rule, is not subject to tax. This is clear under Section 32B, Chapter VI of Republic Act (R.A.) No. 8424, otherwise known as the National Internal Revenue Code which exempts from tax the 13th month pay and other benefits. This discussion on 13th month pay is based on the books Tax Solutions on Employee Compensation and Benefits and Employee Compensation and Benefits Volume 2, Second Edition by Atty. Elvin B. Villanueva.             The amount [...]

13TH MONTH PAY, CONCEPTS, PRINCIPLES AND COMPUTATION

13th month pay is one of the mandatory benefits that employers should give their employees. This means one twelfth (1/12) of the basic salary of an employee within a calendar year. The post is based on the book Guide on Employee Compensation and Benefits Volume 2, Second Edition by Atty. Villanueva. The “basic salary” of an employee for the purpose of computing the 13th month pay shall include all remunerations or earning paid by his employer for services rendered but [...]

error: Content is protected !!