New 13th Month Computation

What’s New?

A new factor rate set up for 13th Month Prorated/Current/Full Salary is now available on Sprout Payroll!

Aside from the Standard Computation and added payroll components, there will be 4 more ways (and more combinations) to compute the prorated 13th Month Pay of the employees. This will be based on the active days of the employee within the year.

No more manual counting of active days since the system will do it for you, see below for the range of active days coverage.

Note: This setting is applicable to New Hires or to those who did not complete the year coverage of 13th Month. It will also be available if the Compute 13th month is enabled for Final Pay Run.

The Factor Rate selected will now be the basis of computation for the 13th-month pay.

• Sprout Payroll will compute for the active days of the employee
• • New Hires: Start Date to End of the Year
  • Resigned/Terminated: Start of the Year to Resignation/Termination Date
  • New Hire & Resigned within the year: Start Date to Resignation/Termination Date

365	No Rest Day
261	Two Rest Days per Week
258	Two Rest Days per Week with 3 Holidays
313	One Rest Day per Week

The following will be added as the basis of 13th-month computation if it's included under the Company Profile:

• Basic - Default
• Basic Adjustment
• Overtime
• De Minimis
• Bonus
• Commission
• ECOLA
• Other Taxable Income
• Allowance
• Reimbursable Allowance
• Salary Adjustment

Note: Late and Absent Deductions are not yet included here but rest assured, we'll keep you posted!

For sample computation, you may access this here.

Related Article:

• How to Compute 13th Month Pay
• Frequently Asked Questions When Processing 13th-Month Pay
• How to Check the 13th Month Pay Settings

If you wish to activate this additional option, please send a CRF requesting to enable 'Show13thMonthFactorRate' policy. Our Customer Advocate will review and forward your ticket to our Support Engineers and process accordingly.