The Losing Battle with Deflation

We live in an extraordinary time.

With Covid-19 changing how the world works, Jeff Booth timely book, The Price of Tomorrow, is a ‘must read’, particularly for the next generation of leaders.

From Jeff’s website:

“Technological advances are happening at a rate faster than our ability to understand them, and in a world that moves faster than we can imagine, we cannot afford to stand still.

We need to build a new framework for our local and global economies, and soon. Otherwise, the same technology that has the power to bring abundance to us and our world will instead destroy it.

In this extraordinary contrarian book, Jeff Booth, a leading mind and CEO in e-commerce and technology, details the technological and economic realities shaping our present and future, and the choices we make as we got forward – a potentially alarming, but deeply hopefully situation.”
The Price of Tomorrow

Jeff’s take challenges conventional wisdom and looking at markets, fiscal policy and consumer behaviour through the lens of tomorrow – which is why this should be required reading.

Take a moment to watch this interview with Jeff Booth in New York just over a month ago and comment below with what your thoughts are.

Stay Safe, Everyone!

In light of the recent events happening all over the globe due to Coronavirus Disease 2019 (COVID-19), we would just like to reassure everyone that PayrollHero remains operational. 

We’re committed to support you and your team during this time of uncertainty. We’re continuing to deliver best and reliable service for our system. Our client success, support, training, and teams are standing by to help you with any needs. Online resources are available including our Knowledge BaseBlogsOnline Trainings, and Scheduled Calls. Our support hours still follows as 8AM-5PM, Monday-Friday (MNL time).

Here are some resources that might assist you;

Philippine Government Support Measures
– The science behind hand-washing: why soap and water kill the COVID-19
Watch this interview with Bill Gates by Trevor Noah from the Daily Show where he explains how the Bill & Melinda Gates Foundation is contributing to the race for a vaccine. 

Please stay safe and healthy. Take care of yourself, your family, and your loved ones and let us know if there is anything we can do to help during this difficult time.

On behalf of the PayrollHero team, we’re here for you.

PayrollHero

HustleShare Podcast

PayrollHero is proud to sponsor Ronster Baetiong’s new podcast –hustleshare.com.

“The podcast that features the daily grind of unique business owners and professionals to show not our differences but to show that most of us are very much alike. Hustleshare was made to showcase the triumphs and challenges people go through in their unique professions and learn how we can apply them to our own daily hustles.”

Are you a ridiculously client focused sales rock star?

Location: Manila, Philippines
Starting Salary: PHP30,000 or more
Commissions: Uncapped

PayrollHero is a software platform designed for HR and Payroll teams. Our software helps business optimize their workflows. Our products cover timekeeping, attendance, scheduling, leave management, HRIS and payroll. Our founders created PayrollHero to solve the challenges they were facing running a BPO in the Philippines so our products are uniquely positioned to help customers located there.

Since then we have expanded our product offering to service the globe and extending our payroll functionality to help Singapore based customers. Our selfie clock in features are loved by employees worldwide. For more information check out https://payrollhero.com

The Role

Our sales associates are advocates of our product and brand. They have a great appreciation of the benefits are products can provide and work to help organizations take advantage of them.

They want to make sure that our prospective clients will truly benefit from our products so they spend the time to get to know our clients businesses and needs and only make recommendations that will truly benefit our customers.

They will spend their time reaching out to interested parties, meeting with them to understand their business and selling our products and services to people who need them.

This is position is designed for people who want to work remotely. As a result you will need to be able to manage your own time and prioritize well.

What You’ll Do

  • Generate, identify and execute new strategic leads (large BPOs, Restaurant and Retail companies)
  • Collaborate with the Onboarding Team and customers to negotiate pricing and contracts.
  • Identify and rectify new client’s pain points
  • Meet with customers to present our products and services
  • Forecast sales activity and revenue achievement
  • Takes ownership of customer problems and finds ways to solve them independently

What You’ll Achieve

  • Get new strategic accounts to the point of first purchase and beyond
  • Achieve ambitious incremental revenue targets
  • Fantastic relationships with our clients beyond their purchase
  • A high frequency of touch points throughout the customer journey for a positive and proactive customer experience

What You Must Have

  • Persistence and a drive to overcome barriers and find ways to solve problems creatively to benefit both the customer and the organization
  • High degree of empathy and the ability to see other’s perspective
  • High levels of integrity and a commitment to do what you say you are going to do
  • An understanding of software and the SaaS industry
  • Excellent written, verbal and presentation english skills
  • Broadband with at least 3 megabit download speed and 1-2 megabit upload speed
  • The skills to establish rapport with customers to facilitate the likelihood of retention
  • Previous B2B Sales experience an asset

How to Apply

Before you go we’d like to get to know how you handle clients. Below are three scenarios that you might encounter when trying to help customers. Please include an answer to each question with your application.

  • Imagine a potential customer emails you with the following question: “I’m considering a switch to PayrollHero, but I was wondering if your software has Applicant Tracking Features?”PayrollHero doesn’t offer this feature yet, but their current provider does. How would you respond?
  • A potential client reaches out and says: “I’m very interested in the system but I think the price is too expensive. Can you offer me a discount?” How would you reply?
  • You are trying to arrange a face to face demo with a potential client. How do you ensure you get all of the right people in the room?

Please send a cover letter, cv and your answers to the above questions to jobs@payrollhero.com

Radical Candour: How it can transform your work environment

One of the best books I read in 2018 was recommended to me by a friend and coach. It was called Radical Candor: How to be a great boss without losing your humanity. It’s a framework for managing a team effectively. As the title suggests the author Kim Scott proposes that there is a path to being a great boss without having to be an a**hole.

There has been a trend over the last couple of decades that has linked effective management to being ruthless and lacking compassion. One could argue that Steve Jobs was a good example of such a leader, an opinion that I can understand but personally disagree with. Donald Trump or Alan Sugar on the Apprentice both come across as bosses who are susceptible to monstrous outbursts. Regardless of whether this is a true portrayal of their management styles that is what our expectation of a leader is. In our pop culture being an a**hole is synonymous with being an effective leader.

This is why Radical Candour immediately resonated with me. It finally provided a framework as to why this style of management is effective and at the same time provided a logical path to how you can be nice and a great leader at the same time. As one of my idols Gary Vaynerchuk likes to say frequently the fact that “nice guys finish last is just not true”.

Image from @kimballscott twitter

The argument put forward is that it takes two traits to be an effective boss. You must challenge directly and care personally. She uses a great example in the book of someone to illustrate the diagram above.

Imagine you walk into a crowded room with your trousers undone. If someone cares and is willing to challenge you directly they might take you aside and say “Hey, I just thought you’d want to know your fly is open.” You can then discreetly solve the problem. This is Radical Candour.

Imagine you walk into the same room and someone who doesn’t care but is willing to challenge you directly says something instead. They shout across the room “Hey your trousers are undone.”

Everyone hears and looks at you. You’d probably be a bit embarrassed but you are now able to solve the problem. The person could have handled the situation in a more compassionate way, but at least the matter is resolved. This is the a**hole boss right here. They might be an a**hole about how things get done but they get done. This is called Obnoxious Aggression.

Now imagine that you walk into the same crowded room and someone does care but they don’t want to challenge you directly. They “don’t want to upset your feelings.” Your fly stays open and everyone notices. Everywhere you go for the rest of the day people notice. The problem never gets resolved and when you do finally realize you think “why didn’t they tell me.” This is Ruinous Empathy. They are trying to protect your feelings but it’s actually to your detriment.

Last of all we have the people who don’t care and don’t challenge directly. They are the ones that tap a friend on the shoulder and say “hahaha look at that person they left their fly open.” That’s called manipulative insincerity.

Hopefully this analogy makes sense as it made a ton of sense to me. It really shows why challenging directly, even without caring, is way more effective than caring without challenging. Yet none of us, I hope, want to be obnoxiously aggressive.

So how do we achieve radical candour? It’s really simple, you have to care about your employees. If you read that sentence, want to manage people and think that’s not within the realms of possibility for you; please seriously reconsider your chosen career path. 😃

If you read that sentence and think “well no sh*t Kieran” or “yes that’s something I can do” then awesome! You are a considerable part of the way to being a good manager.

Communication and understanding is critical

The challenge directly aspect comes down to how you provide feedback and understand the needs of your employees. Ultimately that means having structures in place to allow you to communicate with your staff on a frequent basis. This should be a two way street. You want to provide feedback about performance in a timely fashion whilst the feedback is relevant and you want to stay up to date with what’s important in your employee’s lives.

Imagine your employee drops the ball on a certain task. If you wait until their quarterly review they could keep making the same mistake and create more issues.  You may have lost 3 months where they could have been getting better at that task and not just compounding the issue.

Why is it important to know what’s going on in an employees lives? Context. Imagine if an employee’s performance is slipping. You know that they have a sick relative, maybe you’ll give them some time off to deal with that and understand the reason why they are not meeting your expectations or goals. Alternatively, an employee finds out they are expecting a child. Their career goals might shift fundamentally in the short/medium term and you will want to adjust with them to support.

Key takeaways

Whilst I strongly recommend reading the book to get a good grasp on of the framework. Here are some immediate actions you can take in your business today that I took away from the book.

  1. Create weekly feedback structures for your employees.
    It’s important for employees to have a regular feedback loop with their direct superior. One to Ones are a great avenue for you to course correct and provide feedback. The lack the formality of a quarterly or annual review. If you don’t have these in place at your company start today. They don’t need to be complicated.

    I don’t use the exact structure they advise in the book. We have a spreadsheet where the employee or myself can write down agenda items. We then meet for 20-30 minutes once a week and we discuss the most important items on the list.

  2. Limit the number of direct reports any manager has.
    If your managers are responsible for a team of 100 employees how can you expect them to care on a personal level with each employee and still carry out the operational aspects of their role? You need to create capacity for your managers to manage.
  3. Create a growth management plans for all of your employees.
    Knowing what your employees want to do in life allows you to help them fulfill on their dreams. You can align the goals of the company with their own and create mutually beneficial situations that encourage win/wins.
  4. Be specific.
    Whether you are providing praise or criticism you need to focus on exactly what you want the employee to know. Think about a time when your boss has said to you “good job.” It doesn’t land on you as praise. You’re often left thinking “for what?” When you point out what you are praising it allows the employee to keep refining that good work.

    Being specific encourages growth instead of sounding like a vague platitude.At the same time for criticism it allows the employee to focus on the problem and work to improve it. If you just tell someone “that sucks” it generally leaves them feeling demotivated and disengaged. You want to encourage the people who work for you and being specific can help do that.

  5. Promotions are not the only reward for good performance.
    A lot of companies cultures have evolved to encourage the best performers to take management positions as the only way for them to increase their compensation packages. The best players rarely make the best coaches.

    We should have opportunities in place that encourage people who want to lead to do so. At the same time, we should allow people who are amazing at what they do and love doing it to keep doing it. Career progression doesn’t just mean getting a promotion.

  6. Don’t make it personal
    Regardless of whether you are giving praise or criticism don’t make it about the employee. “You are terrible” is a vastly different statement than “Your work is terrible.” Whilst I would never encourage either statement the former attacks the person whilst the latter acknowledges you are only referring to a certain piece of work they have done.

It’s amazing how taking on the points made in this book can transform your work environment. It creates a culture of collaboration and transparency. It allows a top down approach to removing politics from your organization. Your employees will never have to second guess what’s going on in their managers head. It is one immediate access to creating lasting positive changes to your company culture.

If you do read the book or try to implement any of the points above I’d love to hear about it in the comments below!

 

TeamClock 7.0.18 is now available for iOS and Android

We have just launched a new version of our TeamClock to the AppStore (iOS) and PlayStore (Android.) This new version includes a lot of new features that can help your company manage your employee’s timekeeping.

Offline Mode and Clocking Queue

Some locations don’t always have the best internet connection. This can create issues for collecting your employee’s realtime clocking data. We have a new and improved version of our offline mode.

Now when one of your worksites has internet problems your staff will be able to continue to clock in and out. Any clockings that are unable to send will be retained on the device, and visible in the clocking queue.

As well as creating visibility for the queued clockings the app will also warn your employees that there is an issue. They will be advised to contact your HR/IT department so someone can investigate the issue.

Lock Settings Menu

It’s now possible to completely lock down the TeamClock app so that only people with permission to update the settings and logout of the device can. Just access the settings in the side menu of the device and select “Lock Settings Menu”

You will be prompted to enter a 6 digit pin. Once added only team members who know the pin number will be able to change the settings of the device.

For more information about how PayrollHero can help with your Time, Attendance and Scheduling needs please visit payrollhero.com or contact support@payrollhero.com

New Payslip Templates!

Here at PayrollHero we understand that different companies have different ways of doing business. From how you communicate organizational changes, company events and even how you pay your employees.

To allow companies to align their payslips more with their internal culture we have created two new payslip templates. We will now provide; classic, modern and statement payslips.

Classic

Modern

Statement

This should allow you a greater amount of flexibility in how you communicate the payroll output to your employees. If you have any questions please contact support@payrollhero.com

Sign up today – https://signup.payrollhero.com/

Got Problems At Work? Don’t Resign Yet

working on laptop

It always starts with a feeling. You feel that your current job is not utilizing you to your full potential. Or you feel that your superior is not sharing opportunities where you can apply for a lateral or higher position. Or you feel that it’s okay to be a little more reckless and cut corners on work or incur more lates, absences than usual since they don’t pay attention to you anyway.

Then that feeling turns into something you can’t shake off. Your superior would no longer share or confide work opinions with you. Some of your work responsibilities have been endorsed to a teammate. Instead of commendations, you start getting an infraction or warning letters from HR. You’re getting excluded from meetings you used to attend before. Conversations with colleagues are no longer warm, and people you’re close to are already advising you to look for new job openings instead.

If you have experienced some of these things, it’s more likely that you are on thin ice at work. But don’t resign yet.

Resign or Stay?

If you think resignation is a pragmatic solution, you’re not alone. In fact, most employees opt to quit their jobs when things don’t go their way.

But quitting doesn’t usually solve your problems at work, and it is most likely that you’d be encountering the same issues in another job if you don’t know how to deal with it in your current job.

So before you write up your resignation letter, ask yourself these questions first:

1. Do I have the money to keep me afloat until my next job?

Money is usually a good reason for you to stay right now. It is definitely a solid reason, especially if you are receiving a hefty paycheck or a salary amount that covers the bills and allows you to enjoy certain conveniences.

But for some people, they usually hang on to their current job until they have built enough savings to support them the moment they resign and move on to the next job.

2. Is my unhappiness at work because I am unsatisfied with what I currently do?

While a hefty paycheck is a good motivator, doing a job you hate will obviously burn you out in the long run. If you tried applying for a higher position in the company but got rejected, you should probably think about your current potential and what skills/higher education you need to acquire to be more desirable. Staying put in your current job could be extra points for you if your company values loyalty, so the next best thing to do is to put in extra work on skills improvement.

The best people to assess your potential are:

  • Your current team lead/supervisor
  • HR; and
  • The current team lead/member if the role requires being transferred to a different department.

PayrollHero Daily Pulse

Daily Pulse is a TeamClock iOS beta feature on PayrollHero that measures the team’s KPIs (key performance indicators). Data mined by Daily Pulse could help you and your team lead or supervisor assess your main strengths and improvements needed to be better at your job and be a potential candidate for a position you might want to pursue in the future.

3. Will my stay at my current company open doors for me for my career?

Considering your company’s influence is still an important assessment to make when deciding to stay. Staying in your current job at a top company for a while longer is a good idea, but it doesn’t mean you have to rely on your company’s reputation alone.

Build a referral network of people — establish relationships with people who can speak to your core personality and strengths and your on-the-job conduct and work-related skills. While your supervisor or team lead could be a perfect character reference, try to seek managers or executives who can attest to your work ethic.

4. Do I need to stay to master certain skill sets that would be great for my career progression?

It’s tough to be positive about your current job when you don’t like to do it or feel that you are not progressing from it. But think about your current job as an opportunity to master skills that would be vital to your career progression.

In order to do so, you first need to change the way how you view your work. For example, taking calls may not look like a skill to you, but being a master of customer service is. Inputting data might be a mundane task, but being an Excel or spreadsheet expert could be the very edge you’ll have a future position you want.

5. Are you feeling uncertain about your job security?

People who have received infractions at work typically take the easier way out by preempting HR’s move to fire you and resigning instead. This way, they avoid getting bad marks on their record that could affect their employment chances for a different company.

On the other hand, there is a way to turn your situation around. We’ll let you in an industry secret: it’s cheaper for even big companies to keep people than hiring new staff to replace you. Unless your company does not foresee the need of keeping the position or would need to lay off people, or you have done something that accounts as a criminal offense, they will want to work with you to see to it that you’d remain to be an effective member of the team.

If you’ve been missing too many work days, messed something up at work, or been incurring too many lates, it’s always best to reach out and have an open, frank communication with your supervisor or team lead. This way, you can both work out a plan on how to overturn your infractions and improve your current performance.

PayrollHero Analytics

Your supervisor or team lead can provide a data-backed assessment of your work performance using Analytics, a PayrollHero tool. Analytics provides insights about employee attendance so you and your supervisor or team lead could come up with strategies like flexible or behavior-centric scheduling and site assignment.

Final Words

People flounder in their jobs every now and then, so not doing great at work is not a unique problem. The best thing for you to do if you are in this position is to establish first what you really want to do, assess steps on how to get there and tough it out to get a solid handle on things in your job you don’t really like. There’s no point in resigning if you’re jumping into a new one that you end up regretting over.

At PayrollHero, we believe in creating a happy workplace for both employees like you and your boss. We develop products and features specifically designed to create an environment where you can reach your potential to do not just great things for your company, but also to your career.

How Do You Maintain Team Discipline During The Holidays?

Team Discipline

Managing a team especially in the last quarter of the year can be a problem. Aside from dealing with daily tasks such as attendance, absences, shift schedules, leaves, and schedule adjustments, you’d also have to make sure that you are providing discipline and motivation. And more than often, it can be very difficult to provide these especially in the months where attrition rate is higher than the rest of the year.

The work is no joke, especially for companies who are in the growth or expansion phase like in the business process outsourcing industry. According to a recent labor statistics report, the turnover rate of jobs in Metro Manila alone for Q3 2016 is at 3.67 percent since 2011. When you compare it to Q2 2016 (at 3.20 percent) and Q2 2016 (2.30 percent), the increase is pretty significant.

Traditional and Progressive Discipline

In a typical organization, traditional discipline involves building enough documentation of the erring employee’s actions to justify a disciplinary action. The communication style is similar to how a parent scolds a kid for eating dessert before a meal and is usually uncomfortable. It’s also time-consuming as well, considering the number of sit-downs a superior would need to allow time to discuss the infraction.

In the last few years, HR managers prefer this popular approach: progressive discipline. Progressive discipline involves four steps (verbal warning, written warning, final written warning or suspension, and termination) to address disciplinary problems like tardiness, excessive absences, or infractions that affect team productivity.

team discipline

Great Work Cultures breaks down the differences between traditional and progressive discipline.

While there are some good points in traditional and progressive discipline, they both do not always encourage a positive response from erring employees. Even with drawing up a standard warning letter can already build animosity, more so when you add this particular line (or something similar to this) to legally protect your company in the instance you have to meet out a disciplinary action:

“Failure to correct the problem may result in further disciplinary action, up to and including possible termination.”

Policies are policies, sure, but even the best members of your team or organization might react to a disciplinary action negatively. In the same labor statistics report, people who quit their jobs actually outnumber those who got terminated (7.94 percent to 2.94 percent).

Personal Accountability

There will always be that employee who wants to take advantage of the team and company’s expense. But you wouldn’t want to alienate the rest of the team and foster an environment that could disrupt productivity. So how then can you carry out your HR duties without acting like the “Judge Dredd”? You have to share accountability with your team.

Sharing accountability will make every employee feel part of the team or organization’s success. Showing how your employees can have a hand in working towards specific goals (zero lates and absences, staffing compliance) will make the organization more efficient and productive.

Here are the tools to help you accomplish these:

1. Easier Clock-Ins

selfie-biometrics-PayrollHero

At PayrollHero, your employees can clock in or out via #MyClock Web, TeamClock Web, or TeamClock Chrome App,  #MyClock for iOSand TeamClock for iOS/Android.

Most companies use fingerprint or ID scanners for employees to clock in and out for their shifts. This requires an employee to be physically present to carry this out, and reduces instances of “buddy punching.”

But for growing companies, a convenient and cost-effective way to allow team members to clock in using a web or mobile app. These apps utilize Internet connection and a camera, and is a godsend for those who are physically outside of the office but are on official businesses.

2. Time and Attendance Software

Time and Attendance

Employee clock in devices and apps are usually paired with a time and attendance software that has both an employee and manager interface. Employees can not only check their logins, they can also check any log in discrepancies that could have been resulted in device or software issues and resolve them using the interface in real-time. This eliminates attendance errors that could translate to payroll disputes and encourage shift accountability.

As for HR personnel, most time and attendance software have features that would notify, process and resolve any employee issues or requests. HR can also set up an automated email drip or response whenever an employee sends a request or a response. A feature like this helps foster and maintain open communication without spending so much time crafting every email response.

3. Analytics

team analytics

A time and attendance software like PayrollHero comes with data analytics that could provide real-time productivity metrics to both employee and HR. To the employee, there’s nothing more satisfying than checking out your progress in real time and having access to data that would help meet productivity goals.

HR will not only have access to employee data but will be presented with organizational data that’s easy to interpret. This way, you can spot out employee behaviors, recurring trends, or company issues that you can use to either improve your current company policies or create a highly-receptive employee motivation program.

Final Words

However you see an erring employee, remember that the rest of your team are still responsible adults. They are as much capable as you to address a problem once it is brought to their attention. Traditional and progressive discipline could work, but tools can help build a build a culture of accountability where employees to have the confidence to take charge of finding a solution.

10 things you should know about 13th month

Interested in PayrollHero? Sign up today and get 90 days free! – USE PROMO CODE 90TTTMBP2018

Excited to receive your 13th-month pay? I am too. But on the HR and Payroll side, it can be a headache to compute and prepare. That’s why your employer some times releases your 13th-month as early as the 15th or 30th of November to comply with the payout deadline.

Here’s everything you need to know about your 13th-month pay:

1. It is a monetary benefit mandated by law.

The 13th month pay is defined as a monetary benefit based of an employee’s basic salary. This monetary benefit is a core general labor standard, with the Department of Labor and Employment (DOLE) as the agency responsible to oversee any compromises in fulfilling the mandated payout.

2. Your 13th month pay is different from your Christmas bonus.

The 13th month pay is considered a bonus mandated by law, while the Christmas bonus is a separate benefit or payout and it depends on your employer whether they’ll dole it out or not. Companies in the Philippines usually give out Christmas bonus due to team or company-wide performance or revenue-sharing.

Unlike the 13th month pay, your Christmas bonus could come in other forms. It could be cash, gift certificate, a Christmas basket, canned goods, extra leaves that could be convertible to cash if unused, or anything of value.

3. Your 13th month pay should be given to you no later than December 24 of every year.

While the law does not stop employers from giving out 13th month pay early, the law requires employers to give the mandatory benefit at least before Christmas day. According to Presidential Decree 851, the main reason why the 13th month was established as a mandatory benefit is for the Philippine labor force to “properly celebrate” the yuletide season and the New Year, and have the opportunity to invest or save.

The great thing about the Philippine Labor Code is that it provides protection from employers who do not comply with the 13th month pay provision. Aside from releasing the 13th month pay, employers are also required to submit a report of compliance to any DOLE branch on or before January 15 the succeeding year. Should your employer fail to pay your 13th month pay, you may file a money claim case with any DOLE branch.

4. Your 13th month pay may not be equivalent to your monthly basic salary.

According to the law, your basic salary should only be earnings or primary payment paid to an employee for services rendered. On the other hand, basic salary does not include:

  • cash equivalent of unused vacation and sick leave credits;
  • cost-of-living-allowances (COLA) granted pursuant to President Decree No. 525 or Letter of Instructions no. 174;
  • overtime;
  • premium;
  • night differential, and
  • holiday pay.

Your 13th month pay should be not less than 1/12 of the total basic salary you earned within the calendar year. This means your 13th month pay is monthly basic compensation computed pro-rata according to the number of months (or days) you have worked in your company.

Example:
Juan earns a basic salary at Php15,000 per month at company ABC. He has been working for 10 months in the company. As such, Juan stands to receive:

(Php15,000 X 10 months) / 12= Php12,500.00

If Juan has any absences or lates during the month, the pay equivalent of those should be deducted from basic salary first before determining the 13th month pay.

5. You may not be able to receive your 13th month pay.

According to the law, the following are not allowed to receive 13th month pay:

(b) Employers already paying their employees 13th month pay or more in a calendar year or its equivalent at the time of this issuance;
(c) Persons in the personal service of another in relation to such workers; and
(d) Employers who are paid on purely commission, boundary, or task basis, and those who are paid a fixed amount for performing a specific work, irrespective of the time consumed in the performance thereof, except where the workers are paid on piece-rate basis in which case the employer shall grant the required 13th month pay to such workers.

Labor Secretary Silvestre Bello III noted in an interview a rank-and-file employee nonetheless should still receive 13th month pay regardless of the way how his or her wages are paid or the nature of his or her employment as long as they have worked for at least one month. This is also stressed in the DOLE handbook.

6. You can actually view how much you stand to redeem your 13th month pay on your payslip.

Depending on how the payment has been set up, the 13th month redeemable is taken from 1/12th of your monthly basic pay worked. The figure from the previous month is them added to next month’s redeemable, and the next month and so on.

For this example, the employer used base pay to calculate an employee’s 13th month pay redeemable:

First Payslip PH 13th Month Pay

On the second payslip, the redeemable is then added to the computed redeemable for the second month, as shown here:

second slip PH 13th month pay

Should your employer use the gross pay to determine your 13th month pay, the gross pay will include allowances and payments payable to gross and then will be divided by 12. This is actually great, because your employer will be giving you a portion of the benefits or any multiplier on top of your basic pay for your 13th month pay.

Your payslip will also show when you should expect your 13th month pay. In this case, the employee from this example will receive the full 13th month on December 15.

7. Maternity leave benefit are not included in the computation of 13th month pay.

Maternity leave benefit is a benefit employed women claim as a member of SSS (Social Security Service). Even if you receive money during your maternity leave, you technically have not rendered work and earned your keep during your maternity leave. As such, Payroll will not consider the number of days on maternity leave as a factor to compute your 13th month pay.

8. Your 13th month pay is not subject to tax, except for some people.

Republic Act 10653 states that gross benefits not more than Php82,000 received by employees and officials of both public and private companies or entities will not be subject to tax. If you’re a web developer or someone in a managerial or director position in your company, this provision might not apply to you.

9. Resigned or terminated employees can still get their 13th month pay.

The Philippine Labor Code is pro-employee, and has provisions that cover those who resigned voluntarily or whose services has been terminated any time before the 13 month payment. Computation for the benefit is still the same, but it will be in proportion to the number of days a resigned employee has rendered.

10. You may want to check with Payroll about upcoming tax deficits.

Yes, this is a thing. You may have heard of tax refund, but you might also incur a tax payable if the tax withheld is less than the tax due on your annual gross compensation income. This is possible because of adjustments to your withholding tax. Payroll will usually have an updated Withholding Tax Tables on hand from the Bureau of Internal Revenue and could help you determine if there is a tax deficit ahead of the end of year computation.

Any tax deficiency will usually be deducted on the first or second pay of the succeeding year. The employer is required by law to give a tax refund or secure the deficit not later than January 25. If you already have plans for your 13th month, it’s best to check first if you have a tax deficit to avoid getting a significant deduction on the month where you’re probably broke because of the holiday celebration.

Final Thoughts

Your 13th-month pay may be a great addition to your income. To be able to maximize your expected receivable, avoid coming in late or not coming in to work. If you have to be absent for work, take advantage of your company’s leave credits or emergency leave policy to ensure you have a perfect attendance. It’s also great to pay attention to other aspects of your payslip, like your withholding tax, to anticipate any tax deficits and use your 13th month pay to cover this deductions in your first or second paycheck of the succeeding year.