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How to calculate the 13th cheque amount correctly

by , 08 November 2016
How to calculate the 13th cheque amount correctlyDo you award a 'bonus' or 13th cheque in your workplace? If so, read on to find out how to calculate the 13th cheque amount correctly.


The Practical Tax Loose Leaf Service explains that payments received in a particular period, for a longer period (such as a 13th bonus cheque) must be pro-rated according to the gross salary average.

You can then include these amounts in the remuneration calculation.

Sounds complicated?

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Follow these two steps to calculate the 13th cheque amount
 

Step #1: Divide the 'normal' amount paid as 13th cheque into 12.

Step #2: Based on this amount, pro-rate your employee's payment on the amount of completed months he's worked in that year/financial year/period directly after the last payment of the 13th cheque.
 

Here's an example of how to calculate the 13th cheque amount:

Tim works for ABC Inc. He gets a 13th cheque from his employer, at the end of December. His gross average salary is calculated as follows:

Usual/Normal amount 13th Cheque: R10 000 / 12 = R833

Tim has given notice that he's resigned, effective end of March. He'll complete three months of work. So the gross average salary is R833 x 3 = R2 500

Note: The 13th cheque amount can also be calculated as a percentage of your employee's monthly salary, multiplied by the number of months he completed at your company.

Don't forget that any discretionary payments that aren't related to an employee's hours of work or performance must be excluded from remuneration.

On the other hand, any non-discretionary payments (such as a 13th cheque), which are directly related to an employee's hours of work or performance and which are paid for a longer period, must be included in remuneration.

Now that you know how to calculate the 13th cheque amount, make sure you comply.

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Comments
8 comments


Linda 2016-11-14 12:53:56

I earn R5300 as my basic and been working at the same establishment for 4 yrs. How much can i get for my 13th check.

Nandi Magwaza 2016-11-14 10:54:49

Hi my income before deduction is 8671 AND after deduction its 6684, how much will i get as a 13th cheque

Madeega 2016-08-08 00:03:59

I'm working for 16 months now at my company I'm going in for 2 years now I earn 3500 with commission how do I work that out can you help me please

Mxiniseni 2016-07-15 08:29:36

Morning i earning 2871 per month how much will be my 13th cheque.

Lazarus 2016-04-04 15:24:53

Hi ! I would like to know if work for company a minimum of 10 years & my gross salary is 4500 & the company only pay me a R1000 as a bonus when I go on leave and other employees who comes after me get more 13 cheque and when I approach my via email he didn't reply but when my next leave come he pays me accordingly. .??

moeti 2015-11-25 15:29:46

I earn 6000 per month how much will I get on 13th cheque

Chirio 2015-05-27 13:28:22

Thanks for the example for calculation of the 13th cheque, please do for us an example using the percentage.

Moses Tinyiko 2014-09-10 20:19:59

Let say my monthly payment is 40836 so hw much must be my 13th cheque

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