FAQ on 13th Month Pay

What is 13th month pay?

It is a form of monetary assistance equivalent to the monthly basic compensation received by an employee, computed pro-rata according to the number of months within a year that an employee has rendered service to an employer (basic monthly pay/12 x number of months actually worked).

Who are entitled to 13th month pay?

All rank and file employees, regardless of status, who have worked for at least one (1) month are entitled to receive 13th month pay.

What if I already worked for one month and I resigned thereafter?

An employee who has resigned or whose services were terminated at any time before the time for payment of the 13th month pay is entitled to 13th month pay, in proportion to the length of time he worked during the year. The formula is: (basic monthly pay/12) x (number of months actually worked). The 13th month may be demanded at the time of effectivity of the resignation/termination. That doesn’t have to be December 24.

Who are rank-and file employees?

All employees not considered as managerial employees are considered rank-and-file employees. A managerial employee, as distinguished from a rank-and-file employee, is one who is vested with powers of prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, lay-off, recall discharge, assign or discipline employees, or to effectively recommend such managerial actions.

Is there a cap, i.e., only those receiving a salary below P1,000 may receive 13th month pay?

Prior to 1986, only those who receive a monthly salary of not more than PhP1,000 are entitled to receive 13th month pay. This cap was removed under Memorandum Order No. 28 issued by former President Corazon Aquino.

When must it be paid?

The 13th month pay shall be paid not later than December 24 of each year. An employer, however, may give to his employees one half (½) of the required 13th month pay before the opening of the regular school year and the other half on before the 24th of December of every year. The frequency of payment of this monetary benefit may be the subject of agreement between the employer and the recognized/collective bargaining agent of the employees.

Could the employer withhold the 13th month pay?

No, the payment of 13th month pay is mandatory, specifically provided under Presidential Decree (P.D.) No. 851. In case of non-payment of 13th month pay, covered employees could complain at the Department of Labor and Employment (DOLE)  or the National Labor Relations Commission (NLRC).

Are there employers who are exempted from paying 13th month pay?

Yes. The following employers are not required to pay 13th month pay under P.D. 851, unless the grant thereof have become a policy or practice:

a. The Government and any of its political subdivisions, including government-owned and controlled corporations, excepts those corporations operating essentially as private subsidiaries of the Government.

b. Employers already paying their employees a 13th month pay or more in a calendar year or its equivalent at the time of this issuance.

c. Employers of household helpers and persons in the personal service of another in relation to such workers.

d. Employers of those who are paid on purely commission, boundary, or task basis, and those who are paid a fixed amount for performing specific work, irrespective of the time consumed in the performance thereof, except where the workers are paid on piece-rate basis in which case the employer shall grant the required 13th month pay to such workers.

Who are those paid on a piece-rate basis?

They are workers paid a standard amount for every piece or unit of work produced that is more or less regularly replicated, without regard to the time spent in producing the same.

What if I work in more than one company?

Workers who work in two or more companies or private employers, whether on full or part time basis, are entitled to the required 13th month pay from all their private employers regardless of their total earnings from each or all their employers.

Is it part of the Company bonus?

No. The payment of 13th month pay is mandated by law. It is separate from any other bonus given by the company. Read the previous discussion.

Is 13th month pay taxable?

No, as long as the amount does not exceed P30,000. Only the amount in excess of P30,000 is taxable.

50 thoughts on “FAQ on 13th Month Pay

  1. JONG


  2. antonio

    question…if an employee was terminated because of awol…should the management give her 13th month even though she was terminated with cause? thanks

  3. eloyjeff15

    Hi I hope anyone could help me. I started working last October 3, 2011 with a minimum salary a day and two rest day per week. Will I still get a 13th month pay? If in case i will can you tell me the amount? I really don’t have an idea how to compute it. Thank you very much. Hope to hear from you guys. 🙂

  4. Juz4lafs

    How should the withholding tax of the 13th month be computed. Specifically the amount going over P30,000? Should that amount be added to the December taxable Income? Or should it be on a separate pay slip? The computation differs on theses 2 options.

    ie: A monthly income of PhP40,000

    Should it be computed together?
    Taxable: 40,000 + 10,000(amt over 30k of 13th mnth)


    Should it be computed separately?

    Taxable: 40,000 (for December pay slip)
    Taxable: 10,000 (13th month pay slip)

    Using the calculator returns different results when done either way. Smaller for withholding tax for separate slips.


  5. mackenzie

    Good day! Our company gave our 13th mo. pay last December 23, 2011 as well as our salary for December 30 (we are all regular employees with a length of service ranging from 4yrs and above)..unfortunately we just received half of the actual 13th mo. pay…remaining half will be given on the 9th – 16th of January 2012 as per management. It is already January 15 but no 13th mo. pay (half) yet. Is there any legal action we can do to claim such? and it is still legal for the company to release the other half after December 24th? Thank you!

  6. marjo1018

    i am from Zamboanga City and i am working for almost three years already pero even once wala ako natanggap na 13th month from my employer, even SSS and PhilHealth …and double pay during legal holidays at kahit during overtime, sometimes kasi inaabutan ako ng 10pm sa office working but still, i only receive same rate…

    and another concern is, it is possible that i work for 3 companies at the same time (with one owner)…kasi yun employer ko is managing/own several companies… example i do accounting works for this Company A, then i do clerical works for this company B, etc…
    what must i do??

    please response on this matter …
    email me at

  7. hyghy


    as far as i know, its a NO! first thing, she accepted your resignation and that whatever undone work assigned is not anymore an issue.. and 13th month wouldn”t matter on that.. you should still receive full 13th month based on the date of your resignation…

    i hopet’will help you..

  8. roybats2012

    There’s an employer who told to her employees that she will only give 70% of their 13th month benefits….We know she can do it, but, IS IT LEGAL???? What is our remedy for this?????

  9. lhye


    Just yesterday, my friend asked for a help. His Accountant don’t give him a 13th month pay. He was wondering why? His Accountant told him that a managerial employee has no 13th month pay..is it true? If so why, and it is look so unfair for him.What will he receive then?

    Thank you

  10. krisstinee21

    Hi! GOOD DAY! 🙂 I would like to ask about my 13th month pay I started to work on NOV 2010 end by MAY 2013 my basic salary is 9k how much will be my 13th month pay??? I’m confusing I don’t know how to compute. PLS. REPLY THANKS! GODBLESS

  11. yumichiro

    I have this problem, I worked for 5 months in excluivecalls, then I resigned due to compensation problems. I work for 10 hours a day but then I am only receiving not as much despite the fact that it is a call center company. then I have this broken schedule (2:00pm – 8:00pm then 11:00pm – 3:00am) since I was not happy with what I am receiving i decided to resign. But when I got my 13h month + back + fund of 5days = P 4,725.00 only.

    Monthly basic pay of

    feb 2013 = 8000
    march= 8000
    april= 16000
    may= 16000
    june= 16000


    how much should my 13th month pay?

    despite the fact that it is not under BPAO BIR

  12. julius1989


    Good Morning.

    As per your Article,

    Is 13th month pay taxable?
    No, as long as the amount does not exceed P30,000. Only the amount in excess of P30,000 is taxable

    I understand that if my 13th Month is less than 30,000 it is non-taxable, (wherein my case it should be non-taxable).
    However, I asked the accounting department of my company and he response:

    for revenue regulatory purposes, meron portion ng 13th month ang taxable.
    para sa annualization ng tax na binibigay for each employees.

    Any reaction guys,

  13. Malou

    Hi i already resigned in my previous company, how many months will i wait before i get my last pay and 13th month pay. thank you

  14. Abigail P

    if i voluntarily resigned from worked after 5mos of service, what other backwages am i entitled too? for how long is the waiting period for me to collect from my employer ?

  15. Berna


    I’m Admin officer. We have an employee who went on leave without pay and without filing application of application for leave. After 9 consecutive days, he emailed a letter of resignation.

    I’m inclined not to pay his 13th month pay considering he did not give the company 30 days notice for his employment termination.

    Is this decision legal?

    Please advice!



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