The 13th Month Pay is a mandatory benefit that grants employees an additional month’s salary, calculated from their total basic earnings over the year. Fareclock supports this feature, enabling accurate calculation and tracking of 13th month net pay.

Setup

Step 1: Go to the Fareclock Admin Console and go to Settings. Under ‘Settings’ find and click ‘Payroll’.

Step 2: Ensure that the Net Pay option is enabled.

Step 3: Next, click the ‘Net Pay Settings’ tab above.

Step 4: You can enable the 13th Month setting here and configure the applicable tax options.

Adjustments

You can edit the adjustments to include it in the 13th Month Pay calculation.

Step 1: Go to the Fareclock Admin Console and go to Manage. Under ‘Manage’ find and click ‘Payroll’.

Step 2: Click the ‘Adjustments’ tab above.

Statutory Deductions

You can modify the statutory deduction settings to include them in annualization and 13th month pay calculations.

Pay Run

You have the option to select '13th Month' as the Pay Run Type.

Reports

It displays generated pay runs and projects future regular and 13th month pay based on the salary rate. You can view projections by month or according to the pay class’s pay period.