Am I entitled to 13th-month pay, and when should I get it?
Last updated: 2026-07-11 · Educational content; not legal advice.
Short answer
Under Presidential Decree No. 851, every rank-and-file employee who has worked at least one month during the calendar year is entitled to 13th-month pay, regardless of position, designation, or how they are paid. It must be paid on or before December 24 each year, and it equals one-twelfth (1/12) of the basic salary you earned within that calendar year — so if you did not work the whole year, it is pro-rated for the months you did.
The 13th-month pay is computed only on 'basic salary.' The implementing rules exclude from that base the payments that are not part of basic salary — such as overtime pay, holiday and premium pay, night-shift differential, and cost-of-living or other allowances — unless a company policy, agreement, or long practice has integrated them into basic pay. Your entitlement cannot be waived and does not depend on the employer turning a profit.
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Frequently asked
How is 13th-month pay computed?
It equals one-twelfth (1/12) of the total basic salary you earned during the calendar year. If you worked only part of the year, or left mid-year, it is pro-rated — your basic salary earned so far, divided by 12.
Does overtime or my allowance count toward it?
No, not by default. The implementing rules base the 13th-month pay on basic salary only; overtime pay, holiday/premium pay, night-shift differential, and allowances are excluded unless your company has integrated them into basic pay by policy, agreement, or long practice.
Is my 13th-month pay taxed?
13th-month pay and other benefits are tax-exempt up to a combined ceiling of ₱90,000 under the TRAIN Law (RA 10963); only the amount above ₱90,000 is subject to income tax.
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Boses ng kumakayod — your everyday rights as a Filipino worker on pay and dismissal: when your final/back pay must be released (DOLE Labor Advisory 06-20 — within 30 days of separation), 13th-month pay (PD 851 — 1/12 of your basic salary, on or before December 24), legal vs illegal salary deductions, unpaid wages and overtime, the twin-notice due-process rule before you can be dismissed, just causes vs authorized causes, separation pay, your Certificate of Employment (within 3 days of request), resignation notice, the regional minimum wage set by your RTWPB, and how to file with DOLE (SEnA conciliation first) or the NLRC.