As a freelancer, we don't always get a 13th-month pay extra for our services. More often than not, a 13th-month pay doesn't even apply.
But in some instances, we are eligible for it. It might be due to a certain contract stipulation when they hired you. Or they may just plainly asked you how much the mandatory bonus in the Philippines. Lucky You!
Now, you have a good problem. How do you actually compute your 13th-month pay? It's relatively easy. Just follow these steps.
Strictly speaking, the Department of Labor and Employment (DOLE) mandated the 13th-month pay to be the average pay you get for a whole calendar year.
If you are paid monthly, just multiply your monthly rate by 12 to get your total salary for the year. Afterward, divide it by 12 to get your bonus. Simply put, it's just an extra month of salary.
For the computation above, let's say you are earning P15,000 a month. If you rune the formula, the amount is just P15,000 or an extra month of salary.
It gets complicated when you are paid hourly plus you have absences. With this, compute your total basic salary for every month. Usually, it is the number of hours that should be rendered multiplied by your hourly rate less the equivalent hours for your absences and tardiness.
Add the total amount for the year and divide it by 12. For example:
What if I Haven't Rendered a Whole Year Yet?
It's quite simple as well. There are just minor tweaks if you haven't rendered service for one whole year. With this, just multiply your basic salary with the months you rendered for the year. And divided it by 12. For example:
For hourly rates, it's the same thing. Let's say you just started in May. This is how to compute your bonus.
Disclaimer: This article is not intended to be a substitute for professional advice to your payroll needs. It is purely for information purposes only. It can be held partially or fully obsolete if any subsequent rulings are announced. Please be guided accordingly.