Labor Secretary Francis N. Tolentino has signed a directive requiring all covered private-sector employers to release 13th-month pay to rank-and-file workers no later than December 24, 2026, with no exemption or deferment allowed.
The mandate was formalized through DOLE Labor Advisory No. 21, Series of 2026, issued by the Department of Labor and Employment in November 2026. The advisory draws its legal basis from Article 5 of the Labor Code of the Philippines, as renumbered, and Presidential Decree No. 851.
Scope of Coverage
The advisory specifies that the 13th-month pay obligation applies to all rank-and-file employees in the private sector, without distinction as to position, designation, or employment status, and regardless of the method by which wages are paid — so long as the employee has rendered at least one month of service within the calendar year, according to DOLE Labor Advisory No. 21, s. 2026.
DOLE further confirmed that coverage extends to piece-rate workers, employees receiving a fixed or guaranteed wage combined with commissions, workers with more than one employer, those who resigned or were terminated before the payment date, and employees who availed of maternity leave and received a salary differential during the year.
Computing the Minimum Benefit
Under the advisory, the minimum 13th-month pay must be no less than one-twelfth (1/12) of the total basic salary an employee earned throughout the calendar year. The computation is: total basic salary earned for the year, divided by 12.
DOLE defines "basic salary" as all remunerations or earnings paid by an employer for services rendered. Excluded from this definition are allowances and monetary benefits not integrated into the regular or basic salary — including the cash equivalent of unused vacation and sick leave credits, overtime pay, premium pay, night shift differential, holiday pay, and cost-of-living allowances — unless a collective bargaining agreement, individual contract, company policy, or established practice incorporates them into basic salary.
As an example cited in the advisory, an employee whose total basic salary for January through December 2026 amounts to ₱120,000 would be entitled to a 13th-month pay of ₱10,000.
Separated Employees Retain Entitlement
Workers who resigned or were separated from service before the December 24 deadline are still entitled to the benefit, the advisory states. Their 13th-month pay is computed proportionally, covering the period from the date employment began up to the date of resignation or termination.
No Exemptions or Deferrals Permitted
DOLE made clear in the advisory that it will not accept or act upon any application for exemption from paying the 13th-month benefit, nor any request to defer payment.
Compliance Report Due by January 15
Employers are required to file a compliance report through the DOLE Online Compliance Portal at reports.dole.gov.ph no later than January 15, 2027, according to the advisory.
Regional Offices Tasked With Enforcement
The advisory assigns enforcement responsibilities to the DOLE Regional, Field, or Provincial Office with jurisdiction over each workplace, in accordance with Department Order No. 238, Series of 2023.
Source: Department of Labor and Employment