DOLE to employers: Release 13th month pay by Christmas Eve 2026

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The Department of Labor and Employment (DOLE) reminded private sector employers to release the 13th month pay of their workers by December 24, 2026.

"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," DOLE said in a statement.

In Labor Advisory No. 21, Series of 2026, DOLE set guidelines for the payment for the 13th month pay, saying that employees, regardless of their position, designation, or employment status, are entitled to the additional payment.

According to the advisory, the 13th month pay must also be given to rank-and-file employees who are paid on a piece-rate basis, fixed or guaranteed wage plus commission, workers with multiple employers, workers who resigned or terminated, or those who went on maternity leave and received a salary differential.

DOLE said the minimum 13th month pay must not be less than 1/12 of the total basic salary earned by an employee within a calendar year.

For the purpose of computing the 13th month pay, DOLE said an employee's basic salary included remunerations for earnings paid by the employer for services rendered.

Allowances and monetary benefits are not included as part of the basic salary, including unused leave credits, night differentials, overtime, and more. However, DOLE said these benefits could be included if there is an agreeable collective agreement, company practice or policy.

An employee's 13th month pay is their entire year's basic salary earned during the year divided by 12, DOLE said.

"For example, an employee earning P228,010.04 in annual basic salary is entitled to P19,000.84 in 13th month pay. A piece-rate worker earning P120,000.00 receives P10,000.00, while an employee receiving P235,560.04 in fixed wages and P30,000.00 in commissions is entitled to P19,630.00, based on basic salary alone," DOLE said.

Even employees who resign before the end of the calendar year are entitled to a proportionate 13th month pay, DOLE said. For example, an employee who earned P177,236.28 in basic salary is entitled to P14,769.69 if they resigned in September.

"The Department urges all employers to comply with the prescribed payment guidelines and ensure that qualified workers receive their rightful 13th month pay," the agency said. — VDV, GMA News