The 13th month pay is mandatory under Presidential Decree No. 851, and it is formula-bound with two deadlines that do not move.
One-twelfth of the total basic salary earned during the calendar year.
Not one twelfth of your current salary — of what you actually earned across the year.
The deadlines
- Payment: on or before December 24
- DOLE compliance report: by January 15
Employers can split it into May and December instalments, but neither deadline is negotiable.
Who gets it
All rank-and-file employees, whether full-time or still on probation.
Employment status does not exempt you.
The tax exemption
The first ₱90,000 of 13th month pay and other benefits is tax-exempt.
Service incentive leave
Five days of paid leave after one year of continuous service.
Maternity and paternity
- Maternity: 105 days for female employees, with an additional 15 days for solo parents under the Solo Parents Welfare Act
- Paternity: seven days for married male employees, which may be transferred to the child's mother
Working hours
The standard workweek is eight hours per day, five days a week, totalling 40 hours.
Payroll frequency
Payroll must run at least twice a month, typically on the 15th and the last working day. Employers cannot pay less frequently than semi-monthly.
Minimum wage varies by region
Rates are set by tripartite wage boards under the National Wages and Productivity Commission, and differ by region and sector.
Check the rate for your region rather than assuming a national figure.
If it is not paid
DOLE inspections verify 13th-month compliance among other things, and missing it triggers penalties, back-pay claims with interest, or compounding charges.