On more than two occasions I have had courses to make contributions to discussions on the 13th-month pay. Going by reactions and feedbacks received I came to the conclusion that besides issues bothering on the position of law and its statutory backing other challenges with HR practitioners, payroll officers, and Managers rest on problems surrounding its computation, tax implications, the period of payment and whether it should be paid or not.

WHAT IS 13TH MONTH PAY?

The thirteenth-month pay is a monetary benefit paid to an employee at a specific period (s) of the year. It may be computed pro-rata according to the number of months within a year that the employee has rendered service to the employer. The thirteenth month in most organizations is paid to employees who have successfully completed their probation and whose employment falls within the cut-off date for payment. For instance, in Italy, the 13th Month (Tredicesima Mensilitá) is defined as extra month’s salary. While in the Philippines it is defined as one-twelfth of workers’ basic salary within a calendar year. Continue by clicking http://www.askkayodemicah.com.ng/2014/12/08/13th-month-pay-in-nigeria-basis-computation-and-implication/