What Is the Difference Between 13th Month Pay and Christmas Bonus?
Christmas is merry indeed when you have both.
(SPOT.ph) Christmas is fast approaching—just like the 13th month pay some employees are waiting to receive by November or December. In case you don't know, your 13th month pay is different from Christmas bonus, a benefit you may or may not get when Christmastime comes.
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13th Month Pay: Everything You Need to Know
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What's a 13th month pay?
The 13th month pay, as mandated by law, is given to all rank-and-file employees in the private sector regardless of their position, designation, or employment status—probationary or regularized—for as long as they have worked at least one month during that calendar year. Simply put, it's equivalent to an entire month's pay without deductions as long as you have no unpaid absences. Otherwise, it will be pro-rated, or computed based on the number of months you've rendered for work.
An employee can receive no less than 1/12 of their total basic salary within a calendar year. To compute your 13th month pay, divide the total basic salary earned during the year to 12 months.
So when do employees usually receive this? It should be given to employees on or before December 24 just in time for Christmas, according to the Department of Labor and Employment (DOLE). Some employers may opt to give half of the 13th month pay midyear as preparation for the next school year, helpful for parents or guardians who finance the matriculation fees of students.
Don't worry if you resigned or left the company before the scheduled payout of your 13th month pay as you will still receive to this government-mandated benefit as part of your final pay.
Read more: How to Compute Your 13th Month Pay
13th month pay vs Christmas bonus
The Filipino rockband Aegis got it right—Christmas bonus will bring joy on payout day, and that's a different privilege from the 13th month pay.
Unlike 13th month pay that's mandated by law, the Christmas bonus can only be give upon the discretion of the employers. Expect your 13th month pay, but Christmas bonus is entirely up to your bosses.
"Christmas bonus is not a part of such benefit as mandated by the law, though employers may also grant their workers bonuses on top of the 13th month pay, depending on their discretion, or Collective Bargaining Agreement (CBA) and other agreements," DOLE said in a 2009 post.