The Department of Labor and Employment (DOLE) clarified that employees who resigned or took maternity leave remain entitled to receive their proportional 13th month pay, provided they earned a basic salary during the calendar year.
Under Labor Advisory No. 21, Series of 2026, other qualified beneficiaries include rank-and-file employees, piece-rate workers, employees with multiple employers, and those whose employment was terminated.
According to DOLE, the minimum 13th month pay must be equivalent to one-twelfth of an employee’s total basic salary earned within the calendar year.
The agency also clarified that allowances, overtime pay, night shift differentials, and unused leave credits are generally excluded from the computation, unless otherwise covered by a collective agreement, company practice, or policy.
Meanwhile, DOLE reminded private sector employers to release their employees’ 13th month pay on or before December 24, 2026.
The agency’s regional, field, and provincial offices will monitor employers’ compliance with the payment guidelines.