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13th Month Salary

Yee
Member
Tue, 09 Jul 2019 10:29:05 AM  (Last updated: Wed, 10 Jul 2019 12:54:33 PM)

Hi,

Just wish to know the company 13th month salary will be pay in Dec if the employee tender his resign letter in August and his notice period is 6 months, so how the company calculate the 13th month salary? Is prorated?

KL Siew
Administrator
Tue, 09 Jul 2019 03:06:12 PM

Don't count on that, the company may not give him any bonus at all, not to mention prorated. Normally, bonus is paid out at the discretaion of the employer. If it is a contractual bonus, may have to look at the bonus payment method stated in the appointment letter or in the policy of the company. The safest thing to do is not to put in any resignation before bonus payment unless it is really necessary to resign.

mdkamil
Contributor
Wed, 10 Jul 2019 12:54:33 PM

It depends on your company's policy for payment of bonus. In many cases the 13th month salary is paid upon completion of 12 months services for a particular year. If an employee resigns/terminates his employment before serving 12 months for that particular year, the entitlement for the 13th month salary is forfeited.

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