The Department of Labor and Employment (DOLE) has reminded private employers that their employees’ 13th-month pay must be paid on or before December 24, 2025.
This is under the Labor Advisory No. 16, Series of 2025, which sets the guidelines for the issuance of the 13th-month pay. ‘The 13th-month pay shall be paid to rank-and-file employees in the private sector regardless of their position, designation, or employment status, and irrespective of the method by which their wages are paid, provided that they have worked for at least one (1) month during the calendar year,’ the advisory read.
The DOLE noted that the 13th-month pay should not be less than 1/12 of the total basic salary in a calendar year.
‘No request or application for exemption from payment of 13th month pay, or for deferment of its payment shall be accepted and allowed,’ DOLE stressed. The agency also added that the computation for the 13th-month pay using the basic salary shall include all remuneration and earnings paid by the employer for services rendered.
However, this does not include other monetary benefits and allowances (such as unused credited leaves, night differential, cost of living allowance), unless stated otherwise by their collective agreement or the company’s policy.
Further, DOLE said that piece-rate workers, or those who are paid based on their production or the amount of work done rather than the time employed, are also entitled to the 13th-month pay. The basis of their payment is the total earning from the production during the year, divided by 12.