December, 2013

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13th Month Pay: How is it Computed?

By Pinoy-Business.com & DOLE website

Time flies so fast and before you know it, the year-end is just around the corner. There’s the thought of Christmas and, yes, 13th-month pay, which the law requires to be paid not later than December 24 of each year.

The law – Presidential Decree No. 851 – requires all employers to pay their rank-and-file employees, regardless of the nature of their employment and irrespective of the method by which their wages are paid, an equivalent to at least one (1) month of their wages as 13th month pay. To be entitled to 13th-month pay, these employees must have worked for at least one month during the calendar year.

The 13th-month pay of an employee is based on the “basic salary,” which includes all remunerations or earnings paid by an employer to an employee for services rendered. However, 13th-month pay does not include cost-of-living allowances (COLA) granted pursuant to P.D. No. 525 or Letter of Instruction No. 174, profit-sharing payments, and all allowances and monetary benefits which are not considered or integrated as part of the regular or basic salary of the employee. Maternity benefits, like other benefits granted by the SSS, are are not included in computing the employee’s 13th-month pay. Overtime pay, earnings and other remunerations are also excluded from “basic salary” in the computation of the 13th-month pay.

There’s a catch, though. If these items, which are legally excluded from the computation of 13th month pay, are included by the employer in its previous computations and such act ripens into a “company practice,” then these items can’t be excluded without violating the prohibition against diminution or elimination of  benefits.

FORMULA AND COMPUTATION OF 13TH MONTH PAY (source: DOLE website)

Total basic salary earned during the year / 12 Months = Proportionate 13th Month Pay

Illustration: Using the basic wage in the NCR at 436.00 per day and a six-day workweek or an equivalent Monthly Basic Salary of P11,372.33, to wit:

Months Attendance Salary in a Month
January no absence P11,372.33
February no absence P11,372.33
March 1 day leave w/ pay P11,372.33
April no absence P11,372.33
May 2 days leave w/ pay P11,372.33
June 2 days leave w/ pay P11,372.33
July no absence P11,372.33
August 2 days leave w/ pay P11,372.33
September on maternity leave no salary
October on maternity leave no salary
November no absence P11,372.33
December 5 days leave w/o pay 9,192.33
P111,543.33 / 12 months P9,295.28 is the proportionate 13th month pay

Note:
1. COLA of P30.00 under Wage Order No. NCR 17 is not included in the basic salary in computing 13th month pay.

2. The 2 months of maternity leave are not included in the computation of 13th month pay because the female employee has no earnings from the company for the period.

Kuripot gifts for everyone on your list

By Yahoo! Special Projects

Here’s your shopping guide for that last mad dash around the mall before Christmas eve.

We know how stressful it can be picking Christmas gifts for your loved ones. You don’t need the added stress when you dive head-on into the mall crowds. So we’ve decided to help you out with this gift guide for everyone you basically need to buy gifts for. Check it out and see if our suggestions fit your family and friends.

For Dad: Cozy PJ’s.
Hit your dad with a bit of humor and get him some pajamas in an outrageous print: tropical birds, cute puppies, animal print.
How about this: Pajamas, P429.75

For Mom: A stylish eco bag.
Make sure that when your mom hits the mall, she stays earth-friendly with your thoughtful gift.
How about this: Eco-bag, P129.75

For Ate: Nail polish in her favorite colors.
Does she like it glittery? Does she like neon? Give her a small basket of her faves, complete with all the other things she’ll need for a nice manicure: nail polish remover, cotton balls, cuticle trimmer, nail file.
How about this: A bottle of nail polish, P24.75; a bag of cotton balls, P29.75; nail polish remover, P12.75; nail file, P39.50 for a set of 6; cuticle trimmer, P29.75

For Kuya: Cool headphones.
This is a win-win gift: it will make your older brother happy and, at the same time, you won’t have to listen to his kind of music ever again.
How about this: Headphones, P249.75

For Bunso: For girls, any stuffed doll.
In the age of voluptuous Barbies, heavily made-up Bratz dolls, and scary-as-heck Monster High dolls, a back-to-basics stuffed doll that’s actually huggable is a great idea!
How about this: A stuffed doll, P349.75

For Bunso: For boys, a ukulele.
Playing a musical instrument is good for the mind and soul; and it will give your brother a precious break from the gadgets he probably uses a lot.
How about this: Small wooden ukelele, P175.75

For Lolo: A pair of soft bedroom slippers.
If your lolo likes to spend his time at home reading the newspaper, relaxing on the couch in front of the TV, or playing with his grandkids, he’ll love soft slippers that’ll keep his feet warm and comfy.
How about this: Fuzzy bedroom slippers, P150.75

For Lola: A chic handbag.
Have you ever seen your lola leave the house in an outfit that wasn’t coordinated from head to toe? Probably not. Show her that you appreciate how she’s still the bomb by giving her a stylish handbag to use for her ladies’ lunches.
How about this: Faux leather handbag, P499.75

For your in-laws: Soft robes.
They are the reason why you’re incredibly happy this season. So show them your love and gratitude with soft robes they can lounge in at home.
How about this: Terry-cloth robe, P365.75

For your best friend: Microwave popcorn, with a promise of a movie-marathon night.
This one is tough. Picking just one thing to give someone you know inside and out takes a lot of deliberation. Why don’t you get him or her something you can do together. (After all, you’re each other’s better half, right?) Movie marathon, anyone?
How about this: Microwave popcorn, P131.75 for a pack of 3

For your officemate: A coffee mug, with coffee beans.
Nothing binds you together more than mealtimes do. At breaks, you gossip in the pantry; and you eat lunch together. He or she would probably appreciate a coffee mug; more so if you include a bag of coffee beans.
How about this: Ceramic mug, P99.75