DOLE issues 13th-month pay guidelines to employers

MANILA, Philippines — The Department of Labor and Employment (DOLE) has issued proper pay guidelines to employers for the 13th-month pay to their employees.

Labor Secretary Francis N. Tolentino on Monday signed Labor Advisory No. 21, Series of 2026, setting guidelines for paying 13th-month pay under Article 5 of the Labor Code of the Philippines and Presidential Decree No. 851.

Under the guidelines, rank-and-file employees in the private sector are entitled to 13th-month pay regardless of their employment status, position or method of wage payment, provided they have worked for at least one month during the calendar year.

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“It also should be given to rank-and-file employees who are paid on a piece-rate basis, fixed or guaranteed wage plus commission, those with multiple employers, those who resigned, were terminated from employment, or were on maternity leave and received salary differential,” the DOLE said in its advisory. 

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The minimum 13th-month pay is equivalent to one-twelfth of an employee’s total basic salary earned during the calendar year. 

It added that the basic salary “does not include allowances and monetary benefits which are not considered or integrated as part of the regular or basic salary, such as the cash equivalent of unused vacation and sick leave credits, overtime, premium, night shift differential and holiday pay, and cost of living allowance.”

READ: DOLE reminds private employers: Give 13th-month pay on time

The DOLE also illustrated the computation of the 13th-month pay as follows:

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Total basic salary earned during the year ÷ 12 months = Proportionate 13th-month pay.

For example, an employee who earned ₱228,010.04 in basic salary for the year is entitled to ₱19,000.84 in 13th-month pay.

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A piece-rate worker who earned ₱120,000 in total production earnings shall receive ₱10,000, while an employee who received ₱235,560.04 in fixed wages and ₱30,000 in commissions is entitled to ₱19,630, based on basic salary alone.

The advisory requires employers to release the benefit on or before Dec. 24, 2026. It also states that requests for exemption from or deferment of the payment will not be accepted or allowed.

Employers must submit a report of compliance through the DOLE Online Compliance Portal not later than Jan. 15, 2027.

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DOLE said compliance with the payment requirements would be monitored by the appropriate regional, field or provincial office with jurisdiction over the workplace, in accordance with Department Order No. 238, Series of 2023. — Katherine Cielo Guimera/INQUIRER.net trainee /ms