How to Not Waste Your 13th Month Pay

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It’s the most wonderful time of the year! Christmas is just around the corner. Holiday sales are everywhere. People are planning office parties left and right. But best of all, Christmas bonuses and 13th-month pay are being rolled out. YASSS!!! You'll definitely feel like a "one-day millionaire" when the extra dough clears on your account. More so, when you're in holiday mode (read: generous-to-the-bone mode), your 13th-month pay can disappear just as easily as it came. For many people, the 13th-month pay wouldn't even get past the Noche Buena. Think about it. You've waited all year for the extra cash, so you might as well put it to good use. Better yet, go milk it for all its worth so that extra cash won't end up as debt comes the New Year. Here are some ways on how not to waste your 13-month pay. Plan, Plot, Allocate Some would argue that it is unwise to spend money before you actually have it. In the case of expected cash, it's advisable to plan and "spend" it all in … [Read more...]

LOOK: Thirteen Fast Facts About The 13th Month Pay

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Call it Christmas bonuses or a salary blessing, but the 13th month pay is a right granted by the Labor Code of the Philippines. This benefit is entitled to rank-and-file employees regardless of status as long as he/she has worked  at least one month in the company. How is the 13th month pay computed? The 13th month pay computation is based on the total basic monthly salary of an employee for the whole year, divided by 12 months. Thus: “13 month pay = total basic salary earned during the year / 12” Therefore when an employee’s basic salary is Php 15,000 and had worked for 8 months, the 13th month computation is calculated as such: (Php 15,000 x 8 months)/12 = Php 10,000 Image source According to our law, the 13th month pay should be released not later than the 24th of December. So while waiting for our 13th month salary, check out these 13 fast facts below: 1) The 13th month pay is one of the mandatory benefits of an employee here in the Philippines. This means it’s your … [Read more...]