13th Month Pay 2026: Who Gets It and How to Compute
Quick answer
13th month pay is 1/12 of the basic salary you earned in the calendar year. Your employer must pay it no later than December 24. Every rank-and-file worker in the private sector who worked at least one month in the year is entitled, including workers who resigned. Together with other bonuses, it is tax-free up to PHP 90,000 a year.
Who is entitled?
- Rank-and-file employees in the private sector who worked at least 1 month in the calendar year.
- Your type of job or pay does not matter. Regular, probationary, contractual, part-time and piece-rate workers are covered.
- Workers who resigned or were dismissed get a pro-rated amount for the months they worked.
- Kasambahay (domestic workers) are entitled under Section 25 of RA 10361.
- Managerial employees are not covered by the law. Many companies still give it as a policy.
- Government workers are not covered by PD 851. They get a year-end bonus under separate government rules.
- Workers paid purely by commission, boundary or task are also outside the law.
What counts as basic salary?
| Pay item | Included in the formula? | Notes |
|---|---|---|
| Basic salary | Yes | Paid leave days count as salary earned |
| Overtime pay | No | Unless your contract, CBA or company practice treats it as basic pay |
| Night shift differential | No | Same exception |
| Holiday and premium pay | No | Same exception |
| Cost of living allowance (COLA) and other allowances | No | Unless integrated into basic pay |
| Cash value of unused leave | No | |
| Commissions | No | The Supreme Court ruled commissions are not basic salary (Boie-Takeda v. De la Serna) |
Formula: 13th month pay = total basic salary earned in the year ÷ 12. Try it in our 13th month pay calculator.
Example: you earned PHP 20,000 basic salary every month for 12 months. PHP 240,000 ÷ 12 = PHP 20,000.
Example for a resigned worker: you worked January to September at PHP 18,000 a month. PHP 162,000 ÷ 12 = PHP 13,500.
Is 13th month pay taxed?
13th month pay and other benefits, such as a Christmas bonus or productivity incentive, are tax-free up to PHP 90,000 in total for the year. Only the amount above PHP 90,000 is added to your taxable income. The legal basis is NIRC Section 32(B)(7)(e), as amended by the TRAIN law (RA 10963). See our withholding tax guide.
How do you apply, step by step?
Online
1. Add up your basic salary from January to your last payday of the year
Use your payslips.
2. Divide the total by 12, or enter the numbers in the 13th month pay calculator
3. Compare the result with what your employer paid
4. Not paid by December 24?
File a Request for Assistance under SEnA. DOLE accepts it online or at a regional or field office.
Walk-in
Go to the DOLE regional or field office that covers your workplace. Bring your payslips, your contract and a valid ID, then file a Request for Assistance (SEnA).
How long does it take?
- Payment deadline: December 24. Your employer may pay half before the school year opens and the rest by December 24.
- Resigned or dismissed workers: the pro-rated amount is part of your final pay, due within 30 days of separation.
- SEnA: a 30-day conciliation-mediation period. If there is no settlement, the case can be referred to the proper DOLE office or to arbitration.
- Employer report: employers file a compliance report online with DOLE by January 15 of the next year.
Where do you apply?
- Apply on the official website: https://www.dole.gov.ph/
What are the common problems and how do you fix them?
"You are not regular yet"
Probationary and contractual workers are covered too.
You resigned before December
Ask for the pro-rated 13th month in your final pay.
Christmas bonus instead of 13th month
A bonus replaces the 13th month only if it is at least 1/12 of your yearly basic salary.
Tax was taken from your 13th month
Check if your 13th month and other bonuses together went over PHP 90,000.
Your employer asks to delay payment
The law allows no exemption and no deferment. Keep your payslips and file with DOLE.
Frequently asked questions
How do I compute my 13th month pay?
Add up the basic salary you earned in the calendar year and divide it by 12. Leave out overtime, night differential, holiday pay and allowances unless they are part of your basic pay.
When is the deadline for 13th month pay in 2026?
Employers must pay it on or before December 24, 2026.
Is 13th month pay taxable?
It is tax-free up to PHP 90,000 a year, counted together with other bonuses and benefits. The excess is taxed.
Do resigned employees get 13th month pay?
Yes. You get 1/12 of the basic salary you earned from January up to your last day. It is released with your final pay.
Is overtime included in 13th month pay?
No. Overtime is excluded unless your contract, CBA or company practice treats it as part of basic pay.
Are kasambahay entitled to 13th month pay?
Yes. Section 25 of the Batas Kasambahay (RA 10361) gives domestic workers 13th month pay.
Do managers get 13th month pay?
The law covers only rank-and-file employees. Managers get it only if the company grants it.
Does maternity leave lower my 13th month pay?
No. The salary differential paid during maternity leave counts as basic salary in the computation.
Was this page helpful?