How DOLE computes 13th Month Pay
The minimum 13th-month pay required by law shall not be less than one-twelfth (1/12) of the total basic salary earned by an employee within a calendar year.
Basic Salary shall include all remunerations or earnings paid by an employer to an employee for services rendered. It does not include allowances and monetary benefits which are not considered or integrated as part of the regular or basic salary, such as the cash equivalent of unused vacation and sick leave credits, overtime, premium, night differential and holiday pay.
Formula: Total basic salary earned during the year / 12 months = Proportionate 13th-month pay.
Disclaimer: This is for estimation purposes only. Actual computations may vary based on exact attendance and specific company policies.