MANILA – The Department of Labor and Employment (DOLE) on Tuesday reminded private sector employers to release the mandatory 13th-month pay of qualified employees on or before December 24, 2026.
Under Labor Advisory No. 21, Series of 2026, signed by Labor Secretary Francis Tolentino, DOLE reiterated the guidelines for computing and distributing 13th-month pay in accordance with Presidential Decree No. 851 and the Labor Code.
The advisory clarified that all rank-and-file employees in the private sector are entitled to 13th-month pay, regardless of employment status or method of wage payment, provided they have worked for at least one month during the calendar year.
Covered workers include piece-rate employees, those receiving fixed wages and commissions, employees with multiple employers, and workers who resigned or were terminated before the end of the year.
Employees who availed of maternity leave and received salary differential are also covered.
DOLE explained that the minimum 13th-month pay is equivalent to one-twelfth of an employee’s total basic salary earned during the calendar year.
For piece-rate workers, the computation is based on total earnings from production or output, while commissions are excluded if they are not considered part of the employee’s basic salary.
The department provided the following formula:
Total basic salary earned during the year ÷ 12 = 13th-month pay
For example, an employee who earned Php 228,010.04 in annual basic salary is entitled to Php 19,000.84 in 13th-month pay.
A piece-rate worker with total earnings of Php 120,000 would receive Php 10,000.
Meanwhile, an employee earning Php 235,560.04 in fixed wages and Php 30,000 in commissions would receive Php 19,630 in 13th-month pay, excluding commissions from the computation.
DOLE also clarified that employees who resign or are terminated before the end of the year remain entitled to proportionate 13th-month pay based on their total basic salary earned before separation.
For instance, an employee who earned Php 177,236.28 before resigning in September would receive Php 14,769.69.
The department emphasized that employers must release the benefit no later than December 24.
Compliance will be monitored by DOLE regional, field and provincial offices under Department Order No. 238, Series of 2023.
DOLE urged employers to strictly follow the payment guidelines and ensure that all eligible workers receive their full and rightful benefits within the prescribed deadline.
