Lessons Learned In Business

Have a Philippines VA? It’s Time To Pay The 13th Month.

13th month

If you have Virtual Assistants (VA’s) from the Philippines, it’s time to pay back to your contractors.

It is customary for employees in the Philippines to receive something called the 13th Month. Basically, it’s a Christmas bonus equal to a full months pay. You can read some FAQ’s about it here.  The Philippine government stresses that it is mandatory for all private businesses in the Philippines to make the extra month payment in December for all “rank and file” employees. Just like we have labor laws in the United States, this is one of their labor laws.

Your VA’s are contractors, which means you are not REQUIRED to pay it. However, I believe it is crucial to keep with their customs and pay them a 13th month bonus as if they were a Philippine employee. It keeps them happy, and makes them feel like they are invested in your company and success.  Nothing makes a Philippine VA happier than letting them know they will receive a 13th Month payment!

If you have only employed the contractor for a portion of the year, it is best to give them a prorated 13th month. Calculate the number of months they have worked (assume they work through December) and divide by 12. Then, multiply it by their standard monthly rate. For example, if they started August 5, I calculate they worked 5 months (August – December). 5 / 12 = 0.4167. If their monthly rate is 15,000 PHP, you multiply 15,000 x 0.4167 = 6,250 PHP.

I’ve put together a quick little chart to help you with this.  Figure out how many months they’ve worked this year, look it up in the chart, and multiply their monthly salary by the multiplier in the chart.

13th month multiplier

Your VA worked for 3 months with you and your monthly salary is $400 USD?  Look in the chart, and see the multiplier is 0.2500.  Multiply $400 x 0.2500 = $100. Simple enough!

The payment should be made before December 24th.  If you want to make your VA’s incredibly happy, make the payment as early in December as possible so they can do their Christmas shopping nice and early!

Also, don’t forget there are a few days in the months of December/January that are considered Holiday’s in the Philippines, and they normally should take the day off:

  • December 25 (Christmas Day)
  • December 30 (Rizal Day)
  • December 31 (last day of the year)
  • January 1 (New Years Day)

Take care of your VA’s, and they will take care of you.  Make them feel like they are part of the family!

Continue The Discussion

fb-artContinue the discussion about VA’s in our FREE Private Facebook Group.  Not a member of the Grow Your Online Business Facebook Group yet? Join for FREE, where you can chat with like minded entrepreneurs that want to grow their businesses.

Are you an Amazon Seller Generating $100k of Revenue or More Per Year?

I have created an exclusive community for 6 and 7 figure Amazon sellers.

5 star seller society cover photo

Here are just a few things that are included as part of the community:

  • Weekly recaps that cover all other facebook groups and blogs to save you time each week.
  • A private Facebook group
  • A trade show directory
  • Exclusive content from Chris not found anywhere else that can help skyrocket your business
  • “Ask Me Anything” sessions weekly, where you can learn from high earning Amazon sellers and other entrepreneurs
  • Engaging conversations with other sellers that know what they are doing
    …and much more!

There are many amazing topics in our Facebook group that may interest you:

  • Is it safe to hand credit cards to virtual assistants overseas?
  • Resume sifting process when hiring employees
  • When and how to create multiple Amazon seller accounts
  • Ways to find leads for wholesale accounts
  • Figuring out which conferences / trade shows to visit
  • When to fire an employee
  • Looking up CamelCamelCamel and Keepa data in bulk for efficient processing
  • Scaling Retail Arbitrage to different cities
  • Amazing tips on how to create new Amazon listings from scratch and get them to rank well
  • Pros and Cons of RA vs. OA vs. Wholesale
  • How to handle Retailers cancelling orders for OA
  • Grocery Ungating Information
  • Pros and Cons of having your business as an S Corp vs. LLC
  • Places to find employees

If you are interested, check out more details here.

About author View all posts Author's Website

Chris Potter

Chris Potter is an internet entrepreneur that loves working on businesses and helping others with their businesses. He has operated businesses that have sold over $25 million in retail sales, bought and sold a blog design business, and started websites from scratch. Skyrocket your business by joining his Mentoring Program!

Leave a Reply

Your email address will not be published. Required fields are marked *