13th Month Pay is 1/12th of the basic salary of an employee
within a calendar year.
Under PD 851, a law enacted during the time of President
Ferdinand Marcos, also known as the 13th Month Pay Law requires
all employers to pay all their rank-and-file employees a 13th
month pay not later than December 24 of every year.
Such employees are entitled to the benefit regardless of their
designation or employment status and irrespective of the method
by which their wages are paid, provided that they have worked
for at least 1 month during a calendar year.
Most people equate the 13th month pay to a Christmas bonus
since it should be given before December 24 of each year.
But what will you do with it once you receive it?
Most of you might say that at last, I will now be able to buy
that long overdue smart phone of mine.
Some of you might say that you will put it in a savings
account deposit so you may have something to lean on in case
All of those mentioned above makes since but If I will receive
my 13th month pay today, I will spend it on the following:
- Pay My Debt
- Invest My Money In Mutual Fund
- Invest My Money In Stocks
- Invest My Money In UITF
- Put My Money In Time Deposit
Pay Your Debts First
Do you have an existing debt that you pay monthly like
- Housing loan
- Car loan
- SSS loan
- Credit card loan
then upon receiving your 13th month pay, pay these debts
Refrain from borrowing more money while your old debts are
still outstanding or you have not yet fully paid.
Dont get your debt out of control.
Invest Your Money In Mutual Funds
A Mutual Fund is an investment company that pools together
money from different investors and invests them in various
securities depending on the investment objective of the fund.
The mutual fund company issues shares to the public that
represents their holdings in the fund.
How You Can earn from Mutual Funds?
If the NAVPS of the mutual fund you are invested in increases
or appreciates, you can sell your mutual fund shares for a profit.
In the same way, if the NAVPS of the mutual fund you are invested
in decreases or depreciates, you may realize a loss if you redeem.
Like any other investment instrument, mutual funds are best
held long-term especially for mutual funds that have investment
objectives of capital growth such as equity funds.
Invest Your Money In UITF
A Unit Investment Trust Fund (UITF) is an open-ended pooled trust
fund denominated in pesos or any acceptable currency, which
is operated and administered by a trust entity and made available
Each UITF product is governed by a Declaration of Trust (or
Plan Rules) which contains the investment objectives of the
UITF as well as the mechanics for investing, operating and
administering the fund.
Most UITFs are considered medium to long term investments.
Clients considering to invest in UITFs must have the financial
resources to stay invested in them for a reasonable period of
time in order to maximize earnings potentials.
If the funds to be invested will be needed by the client in
the immediate future, the UITFs may not be a suitable investment
vehicle for such client.
Put Your Money In Time Deposit
A savings account or certificate of deposit (CD) held for a
fixed-term, with the understanding that the depositor can make
a withdrawal only by giving notice.
A time deposit is an interest-bearing bank deposit that has a
specified date of maturity.
Upon receiving your 13th month pay, consider the above options
to place your hard earned money.