13th MONTH PAY
RecruitGo Support
Last Update 2 lata temu
OVERVIEW: 13th month pay is an amount equal to 1/12 of the annual salary, paid by December 24 of each year. Because it is mandatory, employers don’t have any discretion of whether to pay it or not based on employee performance or business revenues. It is distinct from the Christmas bonus, which is optional but can be awarded to employees out of appreciation.
WHO IS ENTITLED TO RECEIVE?
All non-management employees are entitled to 13th month pay as long as they have worked at least one month for the employer (managers also often receive 13th month pay, although it’s not required).
For management employees, there should be a separate bonus or allowances equivalent to one month of their basic salary that can compensate in lieu of 13th month pay. If less, the employer should pay the lacking.
Employees who resign, terminated or new hire for the year also receive the additional pay, but it may be pro-rated depending on the date of start or separated. For separated employees, they would receive it as part of their final payroll.