Update (November 2026): The Department of Labor and Employment (DOLE) has issued Labor Advisory No. 21, Series of 2026 — Guidelines on the Payment of Thirteenth-Month Pay — pursuant to Article 5 of the Labor Code of the Philippines (as renumbered) and Presidential Decree No. 851. The advisory was signed by Labor Secretary Francis N. Tolentino on 06 November 2026.
13th-month pay is a mandatory benefit for private-sector rank-and-file employees. The statutory minimum is one-twelfth (1/12) of the total basic salary earned in the calendar year, and it must be paid on or before 24 December 2026.
13th-Month Pay Calculator (Philippines, Private Sector)
Enter eligible basic salary earned, not gross pay. This calculator estimates the statutory minimum before deducting any 13th-month pay already received.
For salary changes, unpaid leave, or partial months, choose the monthly method.
Enter actual basic salary earned each month. Blank months count as zero.
Overtime, allowances and similar payments are generally excluded unless included in basic salary under applicable rules. Treatment of commissions depends on their nature.
Who is covered (Section I)
Under Labor Advisory No. 21, s. 2026, rank-and-file employees in the private sector are entitled to 13th-month pay regardless of position, designation, or employment status, and irrespective of the method by which their wages are paid, provided they have worked for at least one (1) month during the calendar year.
The advisory expressly covers:
- Employees paid on a piece-rate basis
- Employees paid a fixed or guaranteed wage plus commission
- Employees with multiple employers
- Employees who resigned or were terminated during the year
- Women on maternity leave who received the salary differential
Also read: Minimum Wage in the Philippines · Year-End Bonus and Cash Gift for Government Employees (a separate benefit for the public sector)
How much is 13th-month pay? (Section II)
The minimum 13th-month pay shall not be less than one-twelfth (1/12) of the total basic salary earned by an employee within a calendar year:
Total basic salary earned during the year ÷ 12 = proportionate 13th-month pay
The divisor is always 12, even if you worked fewer than 12 months. A company practice, employment contract, or CBA that is more favorable still applies.
What counts as basic salary
Basic salary includes all remunerations or earnings paid by an employer for services rendered. It generally excludes allowances and monetary benefits that are not integrated into basic salary, such as:
- Cash equivalent of unused vacation and sick leave credits
- Overtime pay
- Premium pay
- Night shift differential
- Holiday pay
- Cost of living allowance (COLA)
Exception: If any of these are treated as part of basic salary by individual or collective agreement, company practice, or policy, they must be included.
Example A — Regular employee (NCR minimum wage, 2026)
DOLE’s illustration uses the NCR non-agriculture daily minimum wage of ₱755.00 under Wage Order No. NCR-28 (effective 26 September 2026) and a six-day workweek. The monthly equivalent is:
₱755.00 × 313 ÷ 12 = ₱19,692.92
| Month | Note | Basic salary earned |
|---|---|---|
| January | No absence | ₱19,692.92 |
| February | No absence | ₱19,692.92 |
| March | No absence | ₱19,692.92 |
| April | No absence | ₱19,692.92 |
| May | No absence | ₱19,692.92 |
| June | No absence | ₱19,692.92 |
| July | No absence | ₱19,692.92 |
| August | No absence | ₱19,692.92 |
| September | 10 days leave without pay | ₱12,142.92 |
| October | No absence | ₱19,692.92 |
| November | 1 day leave without pay | ₱18,937.92 |
| December | No absence | ₱19,692.92 |
| Total | ₱228,010.04 |
₱228,010.04 ÷ 12 = ₱19,000.84 proportionate 13th-month pay.
Unpaid leave lowers the basic salary actually earned; it does not remove entitlement. Paid leave does not reduce the month’s basic salary.
Payment for certain types of employees (Section III)
Example B — Piece-rate workers
Piece-rate workers are entitled under PD 851. The basis is total earnings from production during the calendar year ÷ 12.
Employee B earned ₱120,000.00 in total output for the year:
₱120,000.00 ÷ 12 = ₱10,000.00
Example C — Fixed or guaranteed wage plus commission
Employees with a fixed or guaranteed wage plus commission are entitled. Computation is based on the total fixed or guaranteed wage. Commissions are not part of basic salary for this purpose, per the Supreme Court in Boie-Takeda Chemicals, Inc. v. De la Serna, G.R. Nos. 92174 and 102552 (10 December 1993). The fixed wage must not be below the applicable regional minimum wage.
| Component | Amount for the year |
|---|---|
| Fixed or guaranteed wage | ₱235,560.04 |
| Commission | ₱30,000.00 (excluded) |
| Basis for 13th-month pay | ₱235,560.04 |
₱235,560.04 ÷ 12 = ₱19,630.00
Resigned or separated employees (Section IV)
Employees who resign or are separated from work are entitled to 13th-month pay proportional to the length of time they worked during the calendar year — that is, total basic salary actually earned ÷ 12.
Example D — Employee who resigned
Employee D worked from January to September and resigned at the end of September. Total basic salary earned: ₱177,236.28.
₱177,236.28 ÷ 12 = ₱14,769.69
Related guides: DOLE Guidelines for Final Pay and COE · How to File a DOLE Complaint for Unpaid Final Pay · Resignation vs Termination: Employee Rights
When must 13th-month pay be paid? (Section V)
Employers shall pay the 13th-month pay on or before 24 December 2026.
No exemption or deferment (Section VI)
Labor Advisory No. 21, s. 2026 states that no request or application for exemption from payment of 13th-month pay, or for deferment of its payment, shall be accepted and allowed.
Employer compliance report (Section VII)
All covered employers must submit a report of compliance through the DOLE Online Compliance Portal at https://reports.dole.gov.ph/ not later than 15 January 2027, containing:
- Name of establishment
- Address
- Principal product or business
- Total employment
- Total number of workers benefitted
- Amount granted per employee
- Total amount of benefits granted
- Name, position, and telephone number of the person giving the information
Enforcement (Section VIII)
Compliance is monitored and enforced by the DOLE Regional Office, Field Office, or Provincial Office that has jurisdiction over the workplace, in accordance with Department Order No. 238, Series of 2023.
Is 13th-month pay taxable?
The ₱90,000 income-tax exemption generally applies to the combined total of 13th-month pay and other qualifying benefits, not to 13th-month pay alone. Amounts above the applicable exemption may be taxable compensation. Confirm the current BIR rules for the tax year.
Frequently asked questions
How do I compute my 13th-month pay?
Add all basic salary you actually earned from January to December (or until your last day if you left earlier), then divide by 12. Use the calculator above, or follow Examples A–D from Labor Advisory No. 21, s. 2026.
I resigned mid-year. Do I still get it?
Yes. Section IV of the advisory covers resigned and separated employees. You receive the proportionate amount based on basic salary earned that year ÷ 12 (see Example D).
Do overtime and commissions count?
Generally no. Overtime, premium pay, night shift differential, holiday pay, COLA, and the cash value of unused leave are excluded unless your contract, CBA, or company practice treats them as basic salary. Commissions are excluded under Boie-Takeda (see Example C).
Can my employer delay payment past December 24?
No. Section VI says no exemption or deferment request shall be accepted or allowed. Payment must be on or before 24 December 2026.
What if my employer does not pay?
Contact DOLE through hotline 1530 (which replaced 1349 as of November 2026) for referral to the proper office, or file a Request for Assistance under the Single Entry Approach (SEnA). You can also start with our guide on filing a DOLE complaint for unpaid final pay. Enforcement of 13th-month pay compliance is handled by the DOLE office with jurisdiction over the workplace under DO No. 238, s. 2023.
Sources
- DOLE Labor Advisory No. 21, Series of 2026 — Guidelines on the Payment of Thirteenth-Month Pay (signed 06 November 2026 by Secretary Francis N. Tolentino)
- Presidential Decree No. 851 (13th Month Pay Law)
- Article 5, Labor Code of the Philippines (as renumbered)
- Boie-Takeda Chemicals, Inc. v. De la Serna, G.R. Nos. 92174 & 102552 (10 December 1993)
- Wage Order No. NCR-28 (effective 26 September 2026) — NWPC NCR page
- DOLE Online Compliance Portal: reports.dole.gov.ph
- Department Order No. 238, Series of 2023
Older related post (kept for reference): 13th-month pay & Christmas Bonus: What you need to know?
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