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 of the above rules:
Assuming Employee X is assigned in NCR with monthly salary of P15,000.00. The company did not operate during ECQ not being engaged in essential services or sale of essential goods.
It resumed operation only on May 18, 2020. The company adopts 313 factor considering that it provides work from Monday to Saturday or with only Sunday as restday. In a year, this is a total of 313 days being 365 less 52 Sundays.
Thus, the daily rate of PhP15,000.00 per month is P575.08 (P15k x 12 / 313).
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Let us compute the pro-rata 13th month of X considering lack of work during ECQ.
January P15,000.00
February P15,000.00
March (11 DAYS) P 6,325.88
April P 00.00
May (9 days) P 5,175.72
June P15,000.00
TOTAL P56,501.60
13th month pay (prorata) = P56,501.60 / 12
= P4,708.47
Let us say she also had her maternity availment late this year (part of September and whole of November and December for a total of 105 days). Here is how to compute her 13th month pay at the end of the year based on the same scenario.
January P15,000.00
February P15,000.00
March (11 DAYS) P 6,325.88
April P 00.00
May (9 days) P 5,175.72
June P15,000.00
July P15,000.00
August P15,000.00
September (15 days) P 7,500.00
October P 00.00
November P 00.00
December P 00.00
TOTAL P94,001.60
13th month pay 2020 = Total Basic Salary Earned during CY / 12
= P94,001.60 / 12
= P7,833.47
less partial 13th mo. Pay (released in June)
= P7,833.47 – P4,708.47
= P3,124.99
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