The Department of Labor and Employment (DOLE) has issued Labor Advisory No. 21, Series of 2026, reminding all private sector employers of their compliance obligations under the Labor Code regarding the timely payout of 13th-month benefits to eligible workers.
In line with the Marcos Jr. administration’s directive to uphold workers’ rights and welfare, Secretary Francis N. Tolentino signed the labor advisory issuing the proper guidelines on the payment of 13th month pay pursuant to Article 5 of the Labor Code of the Philippines and Presidential Decree No. 851.
The 13th month pay shall be granted to all rank-and-file employees in the private sector, regardless of employment status, position, or method of wage payment, provided they have worked for at least one month within the calendar year.
Covered employees include piece-rate workers, those receiving fixed or guaranteed wages plus commissions, employees with multiple employers, those who resigned or were terminated, and employees who availed of maternity leave and received salary differential
The minimum 13th month pay shall be equivalent to one-twelfth (1/12) of an employee’s total basic salary earned within the calendar year. For piece-rate workers, the total earnings from their production or output shall serve as the basis for computation. Meanwhile, commissions are excluded when they are not considered part of the employee’s basic salary.
To illustrate:
Total basic salary earned during the year ÷ 12 months = Proportionate 13th month pay.
For example, an employee earning ₱228,010.04 in annual basic salary is entitled to ₱19,000.84 in 13th month pay. A piece-rate worker earning ₱120,000.00 receives ₱10,000.00, while an employee receiving ₱235,560.04 in fixed wages and ₱30,000.00 in commissions is entitled to ₱19,630.00, based on basic salary alone.
Employees who resign before the end of the calendar year are likewise entitled to proportionate 13th month pay. For instance, an employee who earned ₱177,236.28 in basic salary before resigning in September shall receive ₱14,769.69.
The 13th month pay must be released on or before December 24, 2026. Compliance with the payment requirements shall be monitored by the appropriate DOLE Regional, Field, or Provincial Office having jurisdiction over the workplace, in accordance with Department Order No. 238, Series of 2023.
The Department urges all employers to comply with the prescribed payment guidelines and ensure that qualified workers receive their rightful 13th month pay. | via DOLE
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