13th Month Pay 2026 Philippines: Computation, Deadline and Who Qualifies

Quick answer: Every rank-and-file employee in the Philippine private sector who has worked at least one month in 2026 is entitled to 13th month pay equal to at least one-twelfth (1/12) of the total basic salary they earned during the calendar year. Employers must release it on or before December 24, 2026, and DOLE does not grant exemptions or extensions. Together with other bonuses, the first ₱90,000 is tax-free.

The rule has not changed since Presidential Decree No. 851 made the benefit mandatory in 1975, but every November and December the same questions come back: how much will I get, is it prorated if I started mid-year, what if I resigned, and is it taxed? This guide answers each of them with the current DOLE rules, worked examples in pesos, and what to do if your employer does not pay.

Who is entitled to 13th month pay in 2026

Under PD 851 and DOLE's yearly guidelines (most recently Labor Advisory No. 13, Series of 2024), you are covered if all of the following apply to you:

• You are a rank-and-file employee in the private sector. Your job title, designation and employment status do not matter — regular, probationary, project-based, seasonal, casual and fixed-term employees are all included.

• You have worked for your employer for at least one month during the calendar year.

• How you are paid does not matter either. Daily-paid, monthly-paid, piece-rate and "fixed wage plus commission" workers are all covered.

DOLE's guidelines specifically confirm that these groups are also entitled: employees with more than one employer (each employer pays its share), employees who resigned or were separated during the year (prorated), and employees who went on maternity leave and received a salary differential.

Kasambahay (household workers) are covered too. Section 25 of Republic Act No. 10361, the Batas Kasambahay, gives domestic workers a 13th month pay following the same PD 851 rules.

Who is not covered

• Government employees, including those in government-owned and -controlled corporations under the civil service. They receive a separate year-end bonus and cash gift instead.

• Managerial employees. PD 851 covers rank-and-file only, although many companies extend the benefit to managers by policy or contract.

• Workers paid purely on commission, boundary or task basis, or a fixed amount for a specific job. If you receive a guaranteed basic wage plus commission, you are covered.

• Employers that were already paying an equivalent benefit of at least one month's pay when PD 851 took effect.

How to compute 13th month pay

The formula is simple:

• 13th month pay = total basic salary earned from January 1 to December 31 ÷ 12

"Basic salary" means the pay you received for work actually done. It excludes overtime pay, premium pay for rest days and holidays, night shift differential, holiday pay, cost-of-living allowance (COLA), the cash value of unused leave, and other allowances that are not part of your basic pay. The exception is when your employer treats any of these as part of basic salary under a company policy, practice or collective bargaining agreement.

Because the base is salary actually earned, unpaid absences and leave without pay reduce your 13th month pay, while paid leave does not.

Worked examples

• Full year, no unpaid absences. Basic salary ₱18,000 a month for 12 months = ₱216,000 earned. ₱216,000 ÷ 12 = ₱18,000. For an employee who worked the whole year, 13th month pay is roughly one month's basic pay.

• Started mid-year. Hired June 1 at ₱20,000 a month. Seven months (June to December) = ₱140,000 earned. ₱140,000 ÷ 12 = ₱11,666.67.

• Resigned before December. Basic pay ₱25,000, worked January to September 30 = ₱225,000 earned. ₱225,000 ÷ 12 = ₱18,750, payable on separation or, at the latest, within the usual payout period.

• With leave without pay. Basic pay ₱22,000 a month, but two weeks of unpaid leave in August meant only ₱11,000 was earned that month. Total earned = (₱22,000 × 11) + ₱11,000 = ₱253,000. ₱253,000 ÷ 12 = ₱21,083.33.

Daily-paid workers use the same method: add up every day's basic wage actually paid in 2026 and divide by 12.

When is 13th month pay due in 2026

The legal deadline is on or before December 24, 2026. Many employers release it earlier, in late November or the first December payroll, and some split it, paying half mid-year and the balance before Christmas. Splitting is allowed, but the full amount must be in your account by December 24.

DOLE reiterates every year that it will not accept any request for exemption or deferment. A company's financial difficulty is not a legal reason to delay or skip the payment, and the Labor Secretary has repeatedly described 13th month pay as a statutory right rather than a discretionary bonus.

After paying, employers must file a compliance report through the DOLE Establishment Report System. In previous years the deadline was January 15 of the following year, so expect a January 15, 2027 deadline once DOLE publishes its 2026 advisory, which normally comes out in November or December.

Is 13th month pay taxable?

Partly, and only for higher earners. Under the TRAIN Law (Republic Act No. 10963) and BIR Revenue Regulations No. 11-2018, 13th month pay and "other benefits" (Christmas bonus, productivity incentives and similar) are exempt from income tax up to a combined ₱90,000 per year. Only the amount above ₱90,000 is added to your taxable income.

Example: your 13th month pay is ₱45,000 and your company also gives a ₱20,000 Christmas bonus. The total of ₱65,000 is below the ₱90,000 ceiling, so none of it is taxed. If your 13th month pay alone were ₱100,000, ₱10,000 would be taxable.

13th month pay is also not subject to SSS, PhilHealth or Pag-IBIG contributions, so the amount on your payslip should match the computation above unless you cross the tax ceiling.

13th month pay vs Christmas bonus

• 13th month pay is required by law, has a fixed minimum formula and a fixed deadline.

• A Christmas bonus or 14th month pay is voluntary unless it is promised in your contract, a CBA or a long-standing company practice. An employer cannot label your 13th month pay a "Christmas bonus" to avoid paying it.

What to do if your employer does not pay

If December 24 passes without payment, or the amount is clearly short of the 1/12 formula, you have several options:

• Ask HR or payroll in writing for the computation. Honest errors (for example, excluding months you worked) are often fixed at this stage.

• Call the DOLE Hotline 1349, email hotline1349@dole.gov.ph, or message the official DOLE Facebook page. The hotline operates round the clock.

• File a request for assistance under the Single Entry Approach (SEnA) at the DOLE regional, provincial or field office covering your workplace. This is a free 30-day conciliation process and does not require a lawyer.

• If conciliation fails, a money claim can be filed with the National Labor Relations Commission (NLRC).

Keep your payslips, employment contract and any written communication about the payment. DOLE also runs its own compliance checks, and the employer's January compliance report gives inspectors a paper trail.

Frequently asked questions

Is 13th month pay prorated if I started work in the middle of 2026?

Yes. You receive one-twelfth of the basic salary you actually earned during the year, so an employee who started in June gets roughly seven-twelfths of a monthly salary. You qualify as long as you have worked at least one month.

Do probationary and contractual employees get 13th month pay?

Yes. Employment status is irrelevant under PD 851. Probationary, project-based, seasonal and fixed-term rank-and-file employees are covered on the same prorated basis.

Am I still entitled if I resigned or was terminated before December?

Yes. Separated employees receive the proportionate 13th month pay for the months they worked in 2026, usually released together with their final pay.

Is 13th month pay the same as the Christmas bonus?

No. 13th month pay is mandatory and computed by law. A Christmas bonus or 14th month pay is an extra benefit unless your contract, CBA or established company practice makes it an obligation.

Is my 13th month pay deducted for taxes or contributions?

No contributions are deducted, and no income tax applies unless your 13th month pay plus other bonuses exceed ₱90,000 for the year. Only the excess is taxed.

Sources

• Presidential Decree No. 851 (13th Month Pay Law) and its implementing rules, as summarised in DOLE Labor Advisory No. 13, Series of 2024 — dole.gov.ph

• Republic Act No. 10361 (Batas Kasambahay), Section 25

• Republic Act No. 10963 (TRAIN Law) and BIR Revenue Regulations No. 11-2018 on the ₱90,000 tax-exempt ceiling — bir.gov.ph

• DOLE statement of December 1, 2025 on the December 24 deadline and no-exemption policy, as reported by The Philippine Star

• DOLE Hotline 1349 contact details, as reported by the Philippine News Agency

Looking for a new job before the year ends?

If your current employer is not paying what the law requires, it may be time to look elsewhere. Browse the latest jobs in the Philippines, including customer service and BPO roles and openings in Metro Manila, or read our guide to the 2027 Civil Service Exam schedule if you are considering a government career. More pay and benefits explainers are in our Salary & Pay section.

Written by the Jobsiz Philippines editorial team. Last updated October 16, 2026. This article is general information based on DOLE and BIR rules in force at the time of writing; it is not legal advice. DOLE's 2026 labor advisory on 13th month pay had not yet been issued at publication — we will update this page when it is released.