The 13th month payment is coming up in December.
Below are some of the most frequently asked questions.
Is the 13th month required?
For you, it is optional. You don’t have to give this. BUT it’s best if you do because it’s a really effective motivator for Filipino workers. It encourages loyalty. Filipinos are more likely to stay with businesses that offer 13th month because it tells them that the business is stable and they care for their workers.
Plus, Filipinos often depend on the 13th month. They’ll use it for planned large expenses, home repairs, and to buy gifts for family for the holidays.
For companies with a registered business in the Philippines, the 13th month is not optional.
When is the best time to pay the 13th month?
The 13th month is to be paid in December. The earlier in the month, the better.
Are the 13th month and the Christmas bonus the same thing?
No, the 13th month is NOT considered a Christmas bonus. It’s just part of their annual salary (they budget for it). If you want to give a Christmas bonus, that’s separate and always very much appreciated.
How do you compute for the 13th month?
It’s 1 months salary as extra pay.
If they didn’t work for you the whole year, add up the total amount you paid them through the year and divide by 12.
“I hired my VA in September and she just finished her training period. Do I start counting the months to compute her 13th month? When I hired her or when she finished her training?”
It’s mostly up to you. You can start on her hire date or when the training period has ended.
The important thing is that both of you know when you started counting.
Typically though, it starts when training is finished.
Also, someone is eligible for the 13th month if they have worked for you for 3 months or more.
“I had to let go of my VA this year. Should I still give her a 13th month bonus?”
Because the 13th month is optional, whether or not you give the 13th month when you let a VA go depends on your agreement with your workers.
For Philippine companies, they are obligated by law to give the 13th month bonus if the employee has worked for at least a month during the year.
“I pay my VA by the hour or on a per-project basis. Do I need to give them a 13th month?”
You don’t have to, but it’s still a good idea. You can compute for 13th month by adding up the total you paid them through the year and dividing by 12.
For us, we:
1. always pay the 13th month
2. also give a Christmas bonus. $25-$50.