13th MONTH PAY

• The 13th month pay is an employee monetary benefit mandated by the Philippine government under Presidential Decree No. 851. All private employers are required to provide this benefit to rank-and-file employees at the end of each year — and no later than December 24.

  The 13th month pay should not be less than one-twelfth (1/12) of the total basic salary earned by an employee within the calendar year. This is according to the Department of Labor and Employment (DOLE) Labor Advisory No. 25, Series of 2023.
• 13th Month Pay


  A benefit that every rank-and-file employee in the private sector has a right to receive as long as they have worked in the company for at least one (1) month within the calendar year
• Employees entitled to 13th Month Pay

  • Rank-and-file employees
  • Employees paid on a piece-rate basis
  • Employees with fixed or guaranteed wage plus commission
  • Employees with multiple employers
  • Resigned employees
  • Terminated employees
  • Employees on maternity leave
• The 13th month pay benefit applies regardless of position, designation, and employment status, and irrespective of the method by which their salary is paid
• Who is not eligible for 13th Month Pay?

  Not all employees are entitled to the 13th month pay. Government employees, employees in private subsidiaries of the government, and those working in government-owned and controlled corporations (GOCCs) are typically excluded from this benefit. This is due to different compensation structures and bonus schemes that apply to the public sector.
• Other exemptions for 13th month pay include:

  • commission-based employees
  • boundary-based or task-based employees
  • freelancers
  • contractual workers
  • household helpers and persons in personal service,
  • other employees who are paid a fixed amount for specific work
• When is the 13th month pay given?

  Employees must receive 13th month pay on or before December 24 of each year. Employers are not allowed to make requests and applications for an exemption or deferment.
• How to Compute 13th Month Pay

  As per DOLE, the 13th month pay should not be less than one-twelfth (1/12) of the total basic salary earned by an employee within the calendar year. Thus, to get the 13th month pay computation, just follow this basic formula:

  13th Month Pay FormulaTotal Basic Salary Earned During the Year ÷ 12 months