The Department of Labor and Employment has issued guidelines covering eligible rank-and-file employees, including piece-rate workers and those who resigned or were terminated during the year.
Private sector employers in the Philippines must release their employees’ 13th-month pay on or before December 24, 2026, under new guidelines issued by the Department of Labor and Employment (DOLE).
In Labor Advisory No. 21, Series of 2026, signed by Labour Secretary Francis Tolentino, the department outlined employers’ obligations under Article 5 of the Labor Code of the Philippines and Presidential Decree No. 851, which provides for mandatory 13th-month pay.
The benefit covers all rank-and-file employees in the private sector, regardless of their employment status, position or method of wage payment, provided they have worked for at least one month during the calendar year.
Eligible employees include piece-rate workers, those receiving fixed or guaranteed wages alongside commissions, employees working for multiple employers, and workers who resigned or were terminated before the end of the year. Employees who took maternity leave and received salary differentials are also covered.
Under the guidelines, the minimum 13th-month pay must be equivalent to one-twelfth of an employee's total basic salary earned during the calendar year.
For piece-rate workers, the amount will be calculated based on their total earnings from production or output. Commissions will be excluded from the computation if they are not considered part of an employee's basic salary.
For instance, an employee who earns a total annual basic salary of ₱228,010.04 will be entitled to ₱19,000.84 in 13th-month pay. A piece-rate worker with annual earnings of ₱120,000 will receive ₱10,000.
Employees receiving fixed wages and commissions will have their benefits calculated based on their basic salary, excluding commissions that do not form part of that salary. An employee earning ₱235,560.04 in fixed wages and ₱30,000 in commissions, for example, will receive ₱19,630 in 13th-month pay.
Resigned and terminated employees also qualify
Employees who resign or are terminated before the end of the calendar year remain entitled to a proportionate 13th-month payment based on the basic salary they earned during their employment.
For example, an employee who earned ₱177,236.28 in basic salary before resigning in September will be entitled to ₱14,769.69.
The DOLE said compliance with the payment requirements will be monitored by its regional, field and provincial offices, in accordance with Department Order No. 238, Series of 2023.
The department urged private sector employers to observe the prescribed guidelines and ensure that all qualified employees receive their statutory 13th-month pay within the December 24 deadline.