The Department of Labor and Employment (DOLE) has reminded private sector employers to comply with the timely payment of 13th-month pay to eligible employees, which must be released on or before December 24, 2026.
Through Labor Advisory No. 21, Series of 2026, signed by Labor Secretary Francis N. Tolentino, the department outlined the guidelines for the payment of the mandatory benefit under Article 5 of the Labor Code and Presidential Decree No. 851.
DOLE clarified that all rank-and-file employees in the private sector are entitled to 13th-month pay, regardless of their employment status, position, or method of wage payment, provided they have worked for at least one month within the calendar year.
Covered workers include piece-rate employees, those receiving fixed wages plus commissions, employees with multiple employers, and those who resigned or were terminated before the end of the year. Employees who availed of maternity leave and received salary differentials are also covered.
The minimum 13th-month pay is equivalent to one-twelfth of an employee's total basic salary earned within the calendar year. Commissions are excluded from the computation if they are not considered part of the employee's basic salary.
Employees who resign or are terminated before December are likewise entitled to a proportionate 13th-month benefit based on their actual basic salary earned during the year.
DOLE said compliance will be monitored by its Regional, Field, and Provincial Offices in accordance with Department Order No. 238, Series of 2023.
The department urged employers to observe the prescribed payment guidelines and ensure that qualified workers receive their rightful benefits within the deadline.
