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What is the correct computation of 13th month pay?
So you are about to receive your yearly bonus from your company and you don’t know how they compute how much 13th month pay you should receive based on how many months you have been working for them. Here is a guideline from Pinoy Lawyer on the what is the correct computation of 13th month pay or Christmas bonus.
13th Month Pay of Resigned or Separated Employee.
An employee who has resigned or whose services were terminated at any time before the time for payment of the 13th month pay is entitled to this monetary benefit in proportion to the length of time he worked during the year, reckoned from the time he started working during the calendar year up to the time of his resignation or termination from the service. Thus, if he worked only from January up to September his proportionate 13th month pay should be equivalent of 1/12 his total basic salary he earned during that period.
The payment of the 13th month pay may be demanded by the employee upon the cessation of employer-employee relationship. This is consistent with the principle of equity that as the employer can require the employee to clear himself of all liabilities and property accountability, so can the employee demand the payment of all benefits due him upon the termination of the relationship.
” Source: pinoylawyer.org
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