Adding 13th Month Pay into an Employee's Final Pay

Adding 13th Month Pay into an Employee's Final Pay

One of the pay items being released together with an employee's Final Pay is the 13th Month Pay.

To Add the 13th Month Pay of a terminated employee:

1. Once you are on the page of completing an employee's termination, scroll down below and find the Bonuses section. Then, click on Add Bonuses.

2. Choose the 13th Month Pay Bonus Type. This is a system-defined bonus type.

3. Complete all of the necessary fields.

Guide on completing the details.
a. Recipient - This is automatically tagged to the employee who you are processing the final pay for.
b. Amount basis - There are 4 different options you can choose from.
      1. Current Salary
      2. Average Salary
      3. Gross Salary
      4. Basic Salary
c. Percentage of Monthly Salary - This should be set to 100%.
d. Release Date - Any date within the month when you will release the Final Pay.
e. Disburse through Special Pay Run? - This should be switched ON since Final Pay is also considered as a Special Pay Run.
f. Coverage from - This should be the first day of the year - January 01.
g. Coverage to - This is the employee's Last Day.
h. Status - Choose Not Yet Released.

4. Upon completing the details, click on the Submit button.

5. It will already be part of the Bonuses list. Before you calculate the projected final pay, make sure to switch the toggle ON under the Include column.

6. After completing all the pay items, scroll down below and click on Calculate Final Pay.

7. The system will now proceed to calculate the PROJECTED Final Pay.

8. After completing the process, you may proceed to regenerating the attendance and processing the Final Pay Run.

    • Related Articles

    • About 13th Month Pay

      What is 13th Month Pay? 13th Month Pay is a mandatory benefit provided to employees pursuant to Presidential Decree No. 851 which requires employers to grant 13th-month pay to all its rank and file employees. 13th-month pay shall be paid by the ...
    • Generate Final Pay Run

      Generating Final Pay Run can only be done once an employee is tagged Terminated in the employee records. If this action is not done, the names of the employees that should be included in the Final Pay Run will not be listed properly. How to Add ...
    • How do I process employees' 13th Month Pay via Special Pay Run?

      Processing and disbursing 13th Month Pay via Special Pay Run allows you to release 13th Month Pay outside Regular Payroll dates. This serves as a dedicated pay run for releasing employees' 13th Month Pay. Disbursing through Special Pay Run, involves ...
    • How do I include 13th Month Pay on a Regular Payroll Run?

      Adding 13th Month Pay on a Regular Payroll Run allows you to include the amount to be released as 13th Month Pay together with the employee’s Net Pay on the particular selected cut-off date. You can add employees' 13th Month Pay as a bonus item via ...
    • Generate Special Pay Run

      Special Pay Run is intended for generating and disbursing payroll items outside Regular Payroll. The following payroll items that can be generated via Special are the following: Adjustments Allowances Bonuses Commissions Make sure to tag these items ...