The Short Answer
If you work for a private employer, are not a manager (a rank-and-file employee), and worked at least one month in the calendar year, you are entitled to 13th month pay under Presidential Decree No. 851 (PD 851), whatever your employment status. It is at least one-twelfth of the basic salary you earned in the year, paid on or before 24 December. Kasambahay get it too, under the Domestic Workers Act.
Example: Mark Dela Cruz, a New Hire, and His Aunt Nena, a Kasambahay
Names and details in this example are made up.
Mark dela Cruz started as a probationary service crew at a restaurant in Barangay Poblacion, Dumaguete City, on 1 August 2026. His basic salary is ₱12,000 a month. He also earned ₱3,000 in overtime pay from August to December.
Mark's 13th month pay. He is probationary and has worked only five months, but he is rank-and-file and worked more than a month, so he is covered.
| Step | Amount |
|---|---|
| Basic salary earned, August to December (₱12,000 × 5) | ₱60,000 |
| Overtime pay (not counted) | ₱0 |
| 13th month pay (₱60,000 ÷ 12) | ₱5,000 |
It must be paid on or before 24 December 2026. It is well under the ₱90,000 tax-free limit, so no income tax is taken from it.
His aunt Nena Reyes has worked all year as a kasambahay for a family in Barangay Kapitolyo, Pasig City, at ₱8,000 a month. Her yearly basic salary is ₱96,000, so her 13th month pay is at least ₱8,000 (₱96,000 ÷ 12). Her employer's free board and lodging is not part of her wage, so it does not reduce her 13th month pay.
If Mark had resigned in October. He would still get a pro-rated 13th month pay (a share for the months he worked): ₱12,000 × 3 months (August to October) = ₱36,000, divided by 12 = ₱3,000, usually released with his final pay.
Who Is Covered
Under PD 851 and its revised guidelines, the 13th month pay is for all rank-and-file employees in the private sector who worked at least one month in the calendar year, regardless of their salary. Their position, designation or employment status does not matter. That includes:
- regular, probationary, contractual, project and seasonal employees;
- employees paid by piece rate, and those paid a fixed wage plus commission;
- employees who resigned or were dismissed during the year, who get a pro-rated amount;
- employees with more than one employer, who get it from each; and
- kasambahay, under the Domestic Workers Act, Republic Act No. 10361 (RA 10361), once they have worked at least one month.
Who Is Not Covered
- Managerial employees, though many companies give them a 13th month pay by policy or contract.
- Government employees, who receive a year-end bonus under separate rules.
- People paid purely by commission, on a "boundary" basis (like many jeepney and tricycle drivers), or a fixed amount for a task regardless of the time it takes. Piece-rate workers are still covered.
- Employees of an employer that already gives a 13th month pay or its equivalent, such as a year-end bonus of at least one month's basic salary.
A Christmas bonus smaller than the 13th month pay does not replace it. The employer must pay the difference.
How Much, and When
The minimum is: total basic salary earned from January to December ÷ 12.
Basic salary means pay for work done. Unless your contract, company policy or practice treats them as part of basic salary, it does not include overtime, premium pay, night shift differential, holiday pay, the cash value of unused leave, or cost-of-living and other allowances. Days of absence without pay are not counted, since nothing was earned for them.
It must be paid on or before 24 December. The employer may pay it in parts during the year, for example half before school opens and half in December, as long as the full amount is paid by 24 December. DOLE's yearly advisories say it does not accept requests to exempt or defer (delay) payment.
Work out your own amount with the 13th month pay calculator.
Tax, and What to Do If You Are Not Paid
Under the Tax Code as amended by the TRAIN law, Republic Act No. 10963 (RA 10963), your 13th month pay and other benefits such as a Christmas bonus are tax-free up to ₱90,000 in total for the year. Only the excess is taxed.
If you are not paid, raise it with your employer or HR in writing first. If that fails, file a request for assistance at DOLE under the Single Entry Approach (SEnA), DOLE's 30-day settlement talks. Kasambahay can bring the matter to the DOLE regional office. Money claims must be filed within three years from when they fell due. See complaining about your employer.
For the steps and papers, see 13th month pay: who gets it and how much.
Common Questions
I Am New, Only Three Months In. Do I Already Get 13th Month Pay?
Yes. Rank-and-file employees who worked at least one month in the calendar year are covered, whether they are probationary, contractual or regular. Your 13th month pay is the basic salary you earned in those months, divided by 12.
Is Overtime Included in the 13th Month Pay?
No, unless your contract or company practice treats overtime as part of your basic salary. Overtime, holiday pay, night differential, unused leave conversion and allowances are normally left out.
Does Our Kasambahay Get 13th Month Pay?
Yes. Under RA 10361, a kasambahay who has worked at least one month is entitled to 13th month pay of at least one-twelfth of their basic salary for the year. Free food and lodging are not part of the wage and are not deducted from it.
Can My Employer Pay the 13th Month in January Instead?
No. It must be paid in full on or before 24 December. The employer may pay it in parts earlier in the year, but not later. DOLE's yearly advisories say it does not accept requests to defer payment.
I Resigned in June. Do I Still Get 13th Month Pay?
Yes, a pro-rated amount: your basic salary from January to your last day, divided by 12. It is usually released with your final pay, which DOLE says should come within 30 days of your last day.
Not legal advice. This is general information. For advice on your own situation, consult a lawyer. If you cannot afford one, the Public Attorney's Office (PAO) or an IBP legal aid office may help for free.
Government fees, rules and requirements change, so always check with the office concerned before you go. This page explains the general rules; it cannot tell you how they apply to your own family or case. Last reviewed October 8, 2026.