The Department of Labor and Employment (DOLE) clarified on Tuesday, November 10, that the minimum 13th month pay must equal one-twelfth of an employee’s total basic salary earned during the year.
Acting Labor Secretary Francis Tolentino emphasized that private companies must distribute the mandatory benefit on or before December 24, noting that compliance will be strictly monitored.
“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,” Tolentino said.
Coverage and Computation
The benefit covers piece-rate workers, employees with fixed wages or guaranteed commissions, individuals with multiple employers, resigned or terminated personnel, and employees on maternity leave who received a salary differential.
DOLE outlined the basic computation formula: total basic salary earned during the year divided by 12 months.
- Standard Earners: An employee with an annual basic salary of ₱228,010.04 is entitled to ₱19,000.84.
- Piece-Rate Workers: A worker earning ₱120,000.00 receives ₱10,000.00.
- Fixed Wage and Commission Earners: An employee earning ₱235,560.04 in fixed wages and ₱30,000.00 in commissions receives ₱19,630.00, calculated solely from basic salary.
Entitlement for Resigned Employees
Tolentino also stressed that employees who resigned or plan to resign before the end of 2026 remain legally entitled to a proportionate 13th month pay regardless of separation circumstances.
For example, an employee who earned ₱177,236.28 before resigning in September is entitled to ₱14,769.69.
“We urge all employers to comply with the prescribed payment guidelines and ensure that qualified workers receive their rightful 13th month pay,” Tolentino stated.