The obligatory year-end bonus, generally known as the thirteenth month pay, gives a monetary profit to staff within the Philippines. It’s equal to one-twelfth of an worker’s fundamental annual wage. The computation includes totaling the essential wage earned all year long and dividing that sum by twelve. For instance, an worker incomes a fundamental month-to-month wage of Php 20,000 would have a complete fundamental annual wage of Php 240,000. Dividing Php 240,000 by 12 ends in a thirteenth month pay of Php 20,000.
This mandated profit considerably impacts the monetary well-being of Filipino staff. It serves as a supplemental revenue, enabling people to satisfy vacation bills, handle money owed, or allocate funds in the direction of financial savings and investments. This regulation, established underneath Presidential Decree No. 851, goals to supply staff with extra monetary assist throughout the vacation season and contribute to financial stimulus.
