What is 13th month pay, and who is entitled to it?

Answer

13th month pay is a mandatory monetary benefit equal to at least one-twelfth of the basic salary an employee earned within a calendar year. It is required by Presidential Decree No. 851 and must be paid on or before 24 December each year.

All rank-and-file employees who have worked for at least one month during the calendar year are entitled to it, regardless of how they are paid or their position, as long as they are rank-and-file. Managerial employees are generally excluded. Our full report walks through the coverage and the common questions around it.

Sources & further reading

• Full report: 13th month pay & final pay

Cases on this topic

• Alliance of Government Workers v. Minister of Labor and Employment
• Bani Rural Bank v. De Guzman
• Boie-Takeda Chemicals, Inc. v. De la Serna
• Brokenshire Memorial Hospital v. NLRC
• Central Azucarera de Tarlac v. CAT Labor Union-NLU
• Dario Nacar v. Gallery Frames
• Davao Fruits Corporation v. Associated Labor Unions
• Dentech Manufacturing Corporation v. NLRC

Related questions

• How is 13th month pay computed?
• Is 13th month pay taxable in the Philippines?
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