What is the mandatory 13th-month salary in the Philippines?
The 13th-month pay in the Philippines is a mandatory benefit required by law, which equals one-twelfth of an employee's total basic annual salary, intended to be given not later than December 24th each year. The 13th-month salary is calculated by dividing the total basic salary earned in a year by 12 months.
This mandatory benefit is given to employees regardless of the nature of their employment.
While the 14th-month pay is not mandated, some companies offer it voluntarily as part of their benefits package, often as a mid-year or year-end bonus, to provide additional financial assistance to their employees.
If you wish to pay 14th pay to the employee, please add it as variable pay onto the Horizons Portal 、
Click client → Where Can I Input Non-recurring (Variable Pay) Income for Employees?
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