How is the proportionate thirteenth-month pay computed?

How is the proportionate thirteenth-month pay computed?

The proportionate thirteenth-month pay is computed by dividing the total basic salary earned during the year by 12 months. This formula ensures that the employee receives exactly one-twelfth of their actual annual basic earnings. This mathematical standard is mandated under the guidelines of Presidential Decree No. 851. Using this exact formula protects employees from being underpaid based on arbitrary company calculations. 17-May-26

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 Nicolas and De Vega Law Offices is a full-service law firm in the Philippines.  You may visit us at the 16th Flr., Suite 1607 AIC Burgundy Empire Tower, ADB Ave., Ortigas Center, 1605 Pasig City, Metro Manila, Philippines.  You may also call us at +632 84706126, +632 84706130, +632 84016392 or e-mail us at [email protected]. Visit our website https://ndvlaw.com/.

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