How the 13th month pay is computed

MANILA — As the holiday season draws near, workers nationwide are expecting to receive their 13th month pay from their employers.

But how must the 13th month pay be computed?

According to the Department of Labor and Employment (DOLE), the 13th month pay is the total basic salary earned by an employee during the year, divided by 12 months.

So, if a worker’s total basic salary earned during the year is P228,010.04: 

P228,010.04 / 12 = P19,000.84 is the 13th month pay.

An employee who resigns before the end of the calendar year is also entitled to 13th month pay. For example, an employee who resigned in September had earned P177,236.28. His 13th month pay shall be computed as follows:

P177,236.28 / 12 = P14,769.69.

The 13th month pay covers all rank-and-file employees in the private sector, regardless of employment status, position, or method of wage payment, including piece-rate workers, those receiving fixed or guaranteed wages plus commissions, employees with multiple employers, those who resigned or were terminated, and employees who availed of maternity leave and received salary differential. 

Even household helpers (kasambahay) are entitled to a 13th month pay. 

They must have worked for at least one month during the calendar year. 

The 13th month pay must be released before December 24, 2026, and is different from the Christmas bonus, which falls under the discretion of the company or employer.