Guidelines for 13th-month pay distribution – DOLE

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The Department of Labor and Employment (DOLE) issued guidelines on Friday, October 29, for assessing the mandatory 13th-month pay for private-sector workers this year.

In Labor Advisory 8, Labor Secretary Silvestre Bello III issued guidelines based on the Metro Manila minimum wage of PHP537.

According to the law, the 13th-month pay cannot be less than one-twelfth (1/12) of an employee’s total basic salary earned in a calendar year.

“Total basic salary earned during the year (12 months) = proportionate 13th-month pay,” it said.

Using the National Capital Region’s basic wage of PHP537 per day and a six-day workweek, the equivalent monthly basic salary is PHP14,006.75 (PHP537.00*313/12 months):

Januaryno absence PHP14,006.75
Februaryno absence PHP14,006.75
Marchno absence PHP14.006.75
Aprilcompany shutdown No salary
Maycompany shutdown No salary
June5 days leave with pay PHP14,006.75
Julycompany shutdown No salary
Augustcompany shutdown No salary
September10 days leave w/o pay PHP8,836.75
October no absence PHP14.006.75
November1 day leave w/o pay PHP13,469.75
Decemberno absence PHP14,006.75

For the entire year, the total basic salary earned was PHPP106,147.00.

The proportionate 13th-month pay is PHP106,147.00 (12 months) = PHP8,845.58.

“The minimum amount shall be given without prejudice to existing company practice or policy, employment contract or collective bargaining agreement (CBA) if any,” the DOLE said.

Under Presidential Decree 851, private-sector employers are required to pay their rank-and-file employees their 13th-month pay.

Workers are eligible for benefits regardless of their position, designation, or employment status, or the method by which their wages are paid, as long as they have worked for at least one month during the calendar year.

“Employers shall pay the 13th-month pay on or before Dec. 24, 2021. No request or application for exemption from payment of 13-month pay, or for deferment of the payment thereof shall be accepted and allowed,” Bello further stated.

Meanwhile, employers must report their compliance online via the DOLE Establishment Report System at by January 15 of the following year.