The 13th Month Pay, as provided by Presidential Decree no. 851, is a government-mandated employee incentive that is usually given to employees in December of every year. How should one compute for and process the 13th Month's Pay on Sprout Payroll? Here's how:
1. In the Payroll Runs page, select Create New Payroll.
2. The Payroll Run type selected should be “13th Month” and select the date coverage based on their actual payroll coverage in a year.
3. Select employees to be excluded from the payroll or change the proration of the newly hired employees by ticking/unticking the checkbox under the Prorated column. Click Process to proceed.
*Note: Unchecking Prorated of newly hired employees will result in a full 13th-month pay
4. Once the processing is completed, you will be directed to the Payroll Summary page. You can generate a payroll summary for audit purposes.
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