Pay transparency / TRAB.PH GUIDE
13th-month pay, explained
Who is covered, how the amount is computed, and the December deadline every employer must hit.
By trab.ph editorial ·
Who is covered
Rank-and-file employees in the private sector who worked at least one month during the calendar year are entitled to 13th-month pay under Presidential Decree 851. Managers are the common exception; resigned and terminated employees still receive a prorated share for the months they worked.
How it is computed
The floor is one-twelfth of the total basic salary earned during the year — ₱18,000/month for a full year works out to exactly one extra month. Basic salary excludes overtime, allowances and benefits that are not part of the regular wage. Paid months count even if you were hired mid-year.
The deadline
Employers must pay on or before December 24 each year; many split it into two instalments (mid-year and December), which is allowed. If the deadline passes unpaid, employees can raise it with the DOLE regional office — it is a statutory benefit, not a bonus the employer may waive.
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