The Department of Labor and Employment (DOLE) is guaranteeing a holiday season marked by hope and relief, as it reminded private employers to release the mandated 13th-month pay on time.
Aligned with President Ferdinand R. Marcos, Jr.’s directive on timely benefits for Filipino workers, Secretary Bienvenido E. Laguesma signed Labor Advisory No. 16, Series of 2025, on November 15, providing for the timely release of the mandatory benefit.
In his recent statement, Secretary Laguesma stressed that the 13th-month pay is a non-negotiable right for workers to ensure their well-being and that of their families.
According to the advisory, the 13th-month pay applies to all rank-and-file employees in the private sector, regardless of position, employment status, or wage payment method, provided they have worked for at least one month during the calendar year.
This includes employees paid on a piece-rate basis, those receiving fixed or guaranteed wages plus commissions, workers with multiple employers, and even those who have resigned, been terminated, or were on maternity leave with a salary differential.
The advisory states that the minimum 13th-month pay should not be less than one-twelfth of the employee’s total basic salary earned during the year.
total basic salary earned during the year / 12 months = proportionate 13th month pay
DOLE explained that “basic salary” includes all earnings for services rendered but excludes allowances and benefits, such as overtime pay, night shift differential, holiday pay, unused leave credits, and cost-of-living allowances—unless explicitly treated as part of the basic salary under company policy or collective agreements.
For piece-rate workers, the computation is based on their total production earnings divided by twelve. Meanwhile, employees who earn fixed wages plus commissions receive their 13th-month pay computed on the fixed wage alone, consistent with Supreme Court jurisprudence (Boie-Takeda Chemicals, Inc. v. De la Serna).
The department emphasized that employers must release the 13th-month pay on or before December 24, 2025, without exception. No requests for exemptions or deferred payments will be allowed.
