What Is 13th Month Pay — and How to Know If Yours Is Correct
In the Philippines, the 13th-month pay isn’t a “bonus” — it’s a right. Every year, employees ask the same question: “Did I receive the correct amount?”
This guide helps you check if your 13th-month pay was properly computed and paid according to law.
⚙️ 2025 Update: What’s New This Year
As of November 2025, the Department of Labor and Employment (DOLE) issued Labor Advisory No. 13-2024, reaffirming that all rank-and-file private-sector employees are entitled to 13th-month pay, regardless of status, position, or pay method.
- Deadline of payment: On or before December 24, 2025 (PhilStar).
- Compliance reporting: Employers must submit DOLE’s Establishment Report by January 15, 2026.
- No exemptions or deferrals — All covered employers must comply (SunStar).
- Coverage clarified: Piece-rate, commission-based, resigned, terminated, and maternity-leave employees are all entitled (PIA Gov PH).
In short: If you worked for at least one month in 2025, you’re entitled to your 13th-month pay — regardless of how you were paid.
photo credit to USPUG
💡 What the Law Says
Under Presidential Decree No. 851, the 13th-month pay is a mandatory benefit for all rank-and-file private-sector employees. Even if you earn by commission, quota, or piece rate, you’re covered — unless exempted by the decree.
It equals one-twelfth (1/12) of your basic salary earned during the year.
🧮 How to Compute Your 13th-Month Pay
Formula:
13th-Month Pay = (Total Basic Salary Earned During the Year ÷ 12)
If you didn’t work the full 12 months, multiply your monthly salary by the months you worked, then divide by 12.
Example:
₱270 000 (₱30 000 × 9 months) ÷ 12 = ₱22 500 → Your 13th-month pay.
- “Basic pay” = your fixed salary for services rendered. It excludes allowances, overtime, and incentives unless your CBA or policy includes them.
- Unpaid absences or tardiness reduce your total.
Cross-check your payslips or payroll summary.
Also see How to Compute Salary and
SSS, Pag-IBIG & PhilHealth Computation Guide for complete payroll math.
⏰ When You Should Receive It
Employers must release the full 13th-month pay on or before December 24 each year. Some give half mid-year and the rest in December — that’s fine, provided the total equals at least 1/12 of your annual basic salary.
🚫 Who Are Not Covered
- Government and its political subdivisions (except GOCCs operating like private firms)
- Employers already giving a 13th-month-equivalent benefit before PD 851
- Employers of household helpers or personal service workers
- Employers paying purely by commission/boundary/task basis — unless on piece-rate
🌙 Night Shift and Variable Hours
Your 13th-month covers only your basic rate, not Night Shift Differential (NSD).
See that guide to know how NSD pay is computed.
❓ FAQs
1️⃣ I resigned in August. Am I still entitled?
Yes. If you worked at least one month during the year, you must receive a pro-rated 13th-month pay for those months.
2️⃣ Is my Christmas bonus the same as 13th-month pay?
No. A bonus is a company prerogative; 13th-month pay is a legal requirement under PD 851.
3️⃣ Can my employer delay payment?
No. DOLE mandates payment on or before December 24 and report submission by January 15. Late payment can trigger penalties.
4️⃣ What if I’m on maternity leave or probationary status?
You’re still covered. Your 13th-month pay is based on actual salary earned — not your employment status.
🧭 Final Reminders
If your 13th-month pay seems low, double-check:
- Your total basic salary for the year
- Deductions for unpaid absences or tardiness
- Whether allowances are included per policy or CBA
You may request your HR/Payroll to show the breakdown, or contact the nearest DOLE Regional Office for assistance.
Editor’s Note:
✍️ Written by Jhoe Te (2016) and updated in November 2025 by ASKSonnie.INFO with AI-assisted research and formatting. For information purposes only — due diligence is advised.
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