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13th month pay inquiry

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1 13th month pay inquiry on Sat Apr 30, 2011 11:40 am


Arresto Menor
Hi may I seek any advice.

Here's the situation.

I joined the company in November of 2009 and resigned December 22, 2010.

My basic rate was P6050. plus P1500 taxable allowance and 1500 non-taxable allowance.

They said that they credited me my 13th month pay last Dec. 8, 2010 amounting to P6050. ( P6050 basic salary X 12months = P72,600 / 12).

They said that it was computed pro-rated.

They said that since I did not actually finished the year they need to deduct the overpayment. In the computation, it says
Deductions: 13th month pay recovery P6196.37.

In my opinion, if ever there is overpayment it should only be P504.17. (if they will not consider the month of December) That should be [(P6050 X 11)/12]

What will be the correct computation?
What is included in computing the last pay of a resigned employee?

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2 Re: 13th month pay inquiry on Sat Apr 30, 2011 2:10 pm


i agree with your computation. here are the guidelines:

6. 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.

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