About 13th Month Pay

When the last quarter or ‘-ber’ months of the year come in, thoughts of 13th month pay enter the minds of both employers and employees.  This mandatory payment under a specific law (PD851) generally covers all rank and file employees who have worked for at least one (1) month during the calendar year.  (A calendar year is the period starting from January to December).

Who are not covered

The following employers are not covered by PD 851:

  1. The government and any of its political subdivisions, including government-owned and controlled corporations, except those corporations operating essentially as private subsidiaries of the government.
  2. Employers already paying their employees a 13th month pay or more in a calendar year or its equivalent at the time of the issuance of PD 851.
  3. Employers of household helpers and persons in the personal service of another in relation to such workers    Note: Under the new Kasambahay Law, household helpers are now entitled to 13th-month pay.
  4. 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, regardless of the time spent performing such work.  BUT workers paid on piece rate basis are entitled to 13th-month pay.

Workers paid on piece-rate are those who are paid a standard or fixed amount for every piece or unit of work performed or produced that is more or less regularly replicated, regardless of the amount of time spent by the worker in producing the same.  Some factory workers and those employed in cottage industries often fall under this type of work.  Under PD 851, these workers must be given 13th month pay.

Time of payment:  The deadline for the release of the 13th month pay is on December 24 each year.  Employers have the option of giving out one half (1/2) of the 13th month pay before the opening of the regular school year and the other half on or before December 24.

Note: The DOLE Call Center at Hotline 2917 from your Globe or TM mobile phones, 908-2917 from your fixed-line phones for free, or text (SMS) 2910. Concerns may also be addressed to the Bureau of Working Conditions at tel. no. 527-3000 local 301 and 307; email bureauofworkingconditions@gmail.com; bwcdole@gmail.com.

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112 thoughts on “About 13th Month Pay

  1. Michael

    is it legal for the company to deduct or reduced your 13th month pay due to pro long sickness like recuperating from an operation or those employees came from maternity leave?

  2. Michael

    thanks for your reply….

    Another question:
    “If the employee is less than a year of service… does he get the full 13th month pay? what is the computation of having a full 13th month pay?

    1. Christine Florido Post author

      By less than a year, you must mean that he has been employed for less than 12 months…in which case, he or she will get only a proportion of the 13th month pay. So assuming he was hired only in June of this year, then in December, he will be entitled to the equivalent of 1/2 of his basic monthly pay.

  3. Meg

    Time of payment: The deadline for the release of the 13th month pay is on December 24 each year. Employers have the option of giving out one half (1/2) of the 13th month pay before the opening of the regular school year and the other half on or before December 24.

    **For this clause, my boss interprets it to mean that he can pay us half on or before December 24 2010, and the other half on June 2011. How can I clarify this to him? Please help. My boss is a foreigner by the way.

    1. Christine Florido Post author

      Meg:
      Would you like a copy of the Department of Labor’s Handbook? or a copy of the rules that implement the 13th month pay law?
      Kindly send me your email address for this. That’s the only way I know how to get your boss to understand it.

      1. Meg

        I already have a copy of it but he insists in his interpretation. :( But the correct interpretation is he could have given half to us last June 2010 and the other half this coming December 2010. Did I understand it correctly?

        Thanks again…

      2. Christine Florido Post author

        Yes, half of the current year’s 13th month pay can be paid in June of the current year, because technically, an employee would have earned it already by June, the formula being 1/12 of the total salary received for the entire year. So, if the employee works from January to June of the current year, he would have earned already 1/2. That’s basically the principle behind the half and half timing. I hope this is clear…or not?

  4. Meg

    hi again…Yes. I really appreciate the prompt answer. Thanks po ulit. It is very clear to me. Unfortunately, my boss is being kind of pigheaded (excuse the language) about it. His argument is that 13th month is computed during the last months of the year so it could not be given in the current year. I feel hopeless because I know I cannot win the argument with a crazy reason like that. Hay…what I’d like to know is I read in the labor code too that employers need to make a report somewhere if they have complied with giving the 13th month to their employees. Would this case constitute a violation? Salamat po talaga at sorry sa dami ng questions. Buong year po kasi inaantay ang 13th month and nakakaiyak na just because hindi maintindihan ng iba yung law e employees would suffer.

    1. Christine Florido Post author

      Meg: True, there is a requirement for the employer to submit a report of its compliance with the 13th Month Pay Law and this compliance report must be submitted not later than January 15 of the following year. Considering that the deadline for the release of the 13th month pay is on Dec 24, then, technically, there is no violation yet. But, if it will help, click this link to get a copy of the DOLE’s order on the matter.

  5. Len

    Hi Atty C. I just like to ask, I went on LOA for two months due to personal matters that I have to attend to, and when I received my 13th month pay recently it was there’s around 3400 pesos plus missing when I ask my supervisor I was advised that it was due to my LOA and what’s worst about it is there is a deduction of 2500 plus pesos and that is because of tax, my basic salary is not more than 30 thousand pesos that’s why I am very shocked about it. Can I still get those deductions from my employer?

    1. Christine Florido Post author

      Len:
      If you were on leave without pay for two months, then your 13th month pay computation may have been reduced because the formula for computing the 13th month pay is the total basic salary received for the entire year divided by 12.
      The 13th month pay, however, is not subject to tax up to the maximum amount of Php30,000. Ask for a clarification first of the tax deduction to see whether it is a tax on the 13th month pay or on your basic pay for the month.

      I hope this helps.

  6. Castiel

    Hi Atty., regarding your advise above to Len, may I confirm if my understanding is correct.
    You mentioned that 13th month is not subject to tax up to a maximum amount of 30K, should in case the 13th month exceeds 30K, does this mean that the 13th month will be subjected to tax. If so, will the full amount be subjected to tax or only the amount in excess of 30K?

    Thanks,

    1. Christine Florido Post author

      Castiel:
      If the amount of 13th month pay exceeds 30K, then only the excess is subject to tax, not the entire 13th month pay. E.g. if the 13th month pay is equivalent to 40K, then 30K is not taxable while the excess of 10K will be subjected to tax. I hope this satisfies your question.

  7. Nancy

    I am currently employed at the moment. I started working with the company March 16, 2010. Our 13th month pay was given 1/2 on Nov. 30, 2010 and the other half will be on Dec. 15, 2010. Based on their computation, I will only be receiving 7.5months/12 because the cut off for the 13th month is from Nov. 2009 – Oct. 31. Since I started March, the actual earnings is technically 7.5months only. How is this possible? I was expecting to receive 9.5months equivalent. I thought the computation is what you have earned within the calendar year since I am still working until now. According to them, What I have earned from November 2010 onwards will be given next year?? I was thinking this is against the law.

    1. Christine Florido Post author

      Nancy:
      You are right. The law directs employers to pay 1/12 of the total basic salary earned within the “calendar year” (i.e. January 01, 2010 until December 31, 2010)

  8. Lyn

    Good Evening Atty:,

    I just want to ask, what if the employer didn’t give the 13th month pay instead she just gave bonus only for a few chosen people.
    Can we file a case against her and her administration?

    Our company is Korean owned, we cater and teach to Korean students abroad but we are based here in the Philippines.
    I really think she should follow the law and give us what we deserve…
    Please help me and my colleagues figure out what to do…

    We want to be able to get what we really worked hard for.
    We know the deadline is until 24th of December but our manager mentioned that our boss has not approved our 13th month pay yet which I know is not really possible and option for her.

    Thank you,
    I hope you can help us…

  9. Anonymous

    Hi Atty. ! I am employed in the private sector for almost 4 yrs. now. I used to be a contractual worker for 3 yrs. & had only gotten my regular status last April. Reading along some questions made me realize that my employer has many loop holes/violations regarding our rights as his employees. If you may, let me enumerate some of them.
    1.) I use to sign a contract stating that I am hired for the school year. But this year I was just told (verbally & not in writing) that I am already a regular employee. I no idea about my benefits because they never discussed it to me. Am I not entitled to know about my benefits? Do I need to have a copy or something that states that I am really a regular employee there.

  10. Anonymous

    2. I just gave birth 2 mos. ago & had my maternity leave. When I informed them of my leave, I also asked for my maternity leave benefit (money) from the SSS w/c he was suppose to give me in advance. He just told me to wait for SSS to send me my check. He only granted the amount that was due to me after I made a letter stating that I was going to have a salary loan/ cash advance & made a promise to pay it every pay day. On that matter I think he violated my right to be given my cash benefit in advance.

  11. pretty_babe

    Hello Atty.

    Greetings!

    I was employed in a private company with a starting salary of P12,000. However, when my probationary period ended and i was get regularized, my salary became P13,200.

    Last November 2010, they transferred me to its sister company as a regular employee with a basic salary of P16,000.

    Last Friday i got my 13th month pay and i only received P13,300. Is it the right computation or should I have received P16,000 which is my latest and basic salary.

    Please enlighten me.

    Thank you very much and God Bless!

    Sincerely,

    ACC

    1. Christine Florido Post author

      Pretty babe:
      The formula for computing the 13th month pay is :
      Total annual basic salary received in the calendar year x 1/12.

      So, if you were only recently given 16K, it is possible that your total annual salary which is the basis of the 13th month pay will give you something less than 16K when divided by 12. I suggest that you ask your HR or payroll officer to provide you with a breakdown of the computation to see how they arrived at that figure.

      I hope this helps. Merry Christmas!

  12. ellie

    hi, im a preschool teacher for a certain school in 3years already.. every May, i renew my contract with them. I also have summer classes with every May. Can i ask how much should they give me for my 13th month pay? should it be only good for May-March?
    Isnt it should be in full because of the ruling about being a private school teacher?
    Thanks a lot! :)

    1. ellie

      thanks in advance for the help.

    2. Christine Florido Post author

      Hi, Ellie.
      According to the supplementary rules implementing the 13th Month Pay Law, the formula for computing 13th month pay for private school teachers is still at 1/12 of the total annual basic salary received during the calendar year. The exact provision states:

      2. Private school teachers, including faculty members of colleges and universities, are entitled to 1/12 of their annual basic pay regardless of the number of months they teach or are paid within a year.

      If you worked from May to December of this year, for example, the basis of the computation is the total amount you received from May to December, multiplied by 1/12 (or divided by 12). I hope this helps.

  13. jenny santos

    hi atty, would like to ask if the amount due can be deducted on my 13th month? or the 13th month pay will be hold if my loan is not fully paid? still i don’t received this benefits coz my employer advised that i still have an existing account.

    pls reply

    1. Christine Florido Post author

      Jenny:
      If you are still employed with the company, chances are that the money you owe the company are being deducted from your basic pay, rather than the 13th month pay. But if you have already left the company, it is possible for the company to deduct your total liabilities from your total last (final) pay, which includes the pro-rated 13th month pay. It cannot be withheld but must be released with the proper computations made.

      I hope this helps.

      1. jenny santos

        yes still employed… so that this means the remaining balance or unsettled account should be deducted on my salary and not on my 13th month pay? pls enlighten… would like to ask if i can demand to my employer to give the certain amount that should be given on my 13th month?…thanks

  14. janelicious23

    Good day!!

    I give birth last Nov.24 2010 and filed for a maternity leave. I wait for the SSS to send me the check. How much do I receive for my maternity leave if my salary is only 200 pesos a day? Thanks.

    1. Attorney Post author

      Janelicious23:
      Congratulations on the new baby!
      The maternity benefit is equivalent to 100 per cent of the member’s average daily salary credit multiplied by 60 days for normal delivery or miscarriage, 78 days for caesarean section delivery. Please see SSS information page for details and examples.
      I hope this helps.

  15. Leonora Alias

    How many months (minimum) of stay in a company to be entitled to receive fraction of the 13th month pay? Example started to work in the company in mid-October, will she be entitled to its equivalent in fraction. What is the ruling on this?

    1. Atty. Post author

      Leonora Alias: To be entitled to 13th month pay, the employee must have worked at least one month in the calendar year.

  16. AL C.

    I’ve read most of the issues scrolling down, There is 1 particular question that I noticed wasn’t answered. Is it legal for an employer to deduct absences to 13th mos. pays?

    sincerely

    1. Atty. Post author

      Al C. : Perhaps it was already answered in a previous comment or through email in order to save time and effort in replying to the same queries. In answer to your question, 13th month pay is computed at 1/12 of the basic salary of an employee earned within the calendar year. By legal definition, “basic salary” refers to all remunerations or earning paid by this employer for services rendered but does not include allowances and monetary benefits which are not considered or integrated as part of the regular or basic salary, such as the cash equivalent of unused vacation and sick leave credits, overtime, premium, nigh differential and holiday pay, and cost-of-living allowances. So, if an employee was absent for an extended period during the year, for which he was not paid by the employer, then the employee’s total basic salary will be reduced accordingly before the formula for 13th month pay is applied. This rule will not apply if the company has an existing CBA with a different computation for 13th month pay. I hope this helps.

  17. john

    sample scenario #1: from january to november, my basic monthly salary was P10,000. in december, my basic monthly salary was increased to P15,000. how much should be my 13th month pay?

    sample scenario #2: same scenario as above, except that in november i was absent for 10 days. i was deducted for absences equivalent to 10 days in november. how much should be my 13th month pay?

    how is the computation of the 13th month for DAILY-PAID employees? thanks.

    1. Atty, Post author

      John: Under existing guidelines on the computation of 13th-month pay, the formula to follow is 1/12 of the total basic salary earned by the employee within a calendar year. “Basic salary” includes all amounts paid by the employer for services rendered but NOT allowances and monetary benefits which are not integrated as part of the basic salary (i.e. which are treated separately in the pay slip), the cash equivalent of unused vacation and sick leave credits (if granted by policy), overtime, premium, night differential and holiday pay and cost of living allowance. So, your 13th-month pay is going to consider YOUR annual compensation for 2011, divided by 12. The related allowances and monetary benefits may be included in the computation IF there is an existing individual or collective bargaining agreement, or company policy including them in the definition of BASIC pay. I hope this helps.

  18. john

    thanks, atty. when you say, total basic salary EARNED, does it mean total BASIC salary NET OF ABSENCES AND LATES?

    in scenario #2: my total basic salary earned for purposes of computing my 13th month pay is P121,712.33 (P125,000 – P3,287.67); where
    P125,000: total basic salary for the year
    P3,287.67: total deductions for my absences

    Therefore, my 13th month pay is equal to P10,142.69. Is this computation correct?

    1. Atty. Post author

      John: the definition of basic pay uses the word “PAID” by the employer. Deductions for absences and tardiness are not included. Paid leaves are.

  19. willResign

    Hi atty,

    Paano po kung magreresign ka weeks before ka maregular, will i still get 13th month pay kasi i opted to resign and not get regularized?

    1. Atty. Post author

      willResign: Yes, you are still entitled to a pro-rated 13th month pay.

  20. eva

    hi! atty. Christine Florido, I just want to know if the 2 months maternity leave will be included in the computation for 13nth month pay? considering that the employee was not working on that months. what is the legal basis for this? please cite a legal rule. thank you so much, this site is very helpful to people who have limited access to lawyers. thanks in advance.

    1. Atty. Post author

      Eva: You’ll find the rule in a few cases decided by the Supreme Court where the implementing rules on the law granting 13th month pay have been clarified. The rules define basic pay for purposes of computing 13th month pay and specifically excludes “earnings and other remuneration” which are deemed not part of the basic salary. The Supreme Court clarified that the excluded “earnings and other remuneration” include sick, vacation or maternity leave paid by the SSS. The DOLE handbook is consistent with the Supreme Court ruling when it also states that “the maternity leave benefit, like other benefits granted by the Social Security System, is granted to employees in lieu of wages. Thus, this may not be included in computing the employee’s 13th-month pay for the calendar year.” I hope this helps.

      1. eva

        with regard to my case atty., I was not given maternity benefits for the my two months maternity leave. because I did not qualify based in SSS rule. i understand that the maternity benefit is not to be included in the computation. but my concern is will the 2 months mat LEAVE (not benefit) be included in the computation for thirteenth month pay.

      2. Atty. Post author

        Eva: The basis of your 13th month pay is the total amount paid by your employer in a calendar year. If you were paid your salary in the 2 months that you were on maternity leave, then, that may be included in the computation, because that is not strictly speaking the maternity benefit which the law excludes from the 13th month pay. If you were not paid while you were on maternity leave, then your total annual pay will naturally be less– it’s like going on leave without pay. So, under the latter situation, your 13th month pay could be less, unless your employer follows a different or more favorable formula for computing 13th month pay. I suggest that you inquire with HR or accounting how they compute this amount.

  21. Cena

    Good day, :)

    1) I received my Oct-Dec 2010 incentive last Feb 2011. Based on my company’s explanation, taxes were cheaper in that way or just to avoid resignation from other employees after the 13 month pay-out (I did not understand their explanation that much but there was nothing I can do). Now, when I checked my YTD incentive it is already about 16k which I believe 8-10k of those were my incentive last Oct-Dec 2010.

    My basic is 22k and I am working with my current company for 2 years this Nov 3, 2011. Now, based on your previous explanation, I would definitely exceed 30k (22k + 16k). But, is it rightful to be like that? Because other incentive was for last year? And, I read that it is based on a calendar year. Also, if I had exceeded already and If basic + YTD incentive = 38K, how much is the estimated 13 month pay?

    Please enlighten me.. Thank you so much. :)

    1. Atty. Post author

      Cena: The inclusion of the incentive pay in the computation of 13th-month pay will have to depend on the nature of this incentive. If it is a sales commission, not a profit-sharing scheme of the company, then it will have to be included in the computation because it was paid only in 2011. But if the incentive pay is a profit-sharing scheme which is dependent on the company performance, not the performance of the employee, then it may not be included in the computation of 13th-month pay. Also, the formula for computing 13th month pay is the total basic pay for the calendar year multiplied by 1/12. You’ll need the help of your employer’s accounting officer to compute 13th-month pay. I hope this helps.

  22. Weng

    i just want to ask how much is my 13month pay if i decided to resigned this month Oct. 2011 since our cut off of 13month is Nov 2010 to Nov. 2011 i was 1month onleave last Jan 2011. how much is my 13month?

    1. Atty. Post author

      Weng: Get your payslips from November 2010 to Nov. 2011 (estimate Oct and Nov 2011) , add all the basic pay amounts, then divide by 12. Because you went on leave in Jan 2011, your total 13th month pay will surely be less than your monthly basic pay. This is the minimum formula for computing the 13th month pay (meaning, the company may pay more) Your company may be following a different one which may result in a more favorable amount. I hope this helps.

  23. Weng

    this Oct. po kasi yong flight ko pwede po na yong mister ko ang mag rereceive ng 13month pay at back pay ko. worked po kasi ako sa abroad for 2yrs eh..possible po na yong asawa ko nalang ang kumuha sinca may iniwan ako na SPA..tnx po

    1. Atty. Post author

      Weng: Your husband can receive your final pay while you are away but you must be able to inform your HR and accounting departments about this arrangement while you are still here. Submit the written request for your husband to receive payment, and attach a notarized special power of attorney with a photocopy of his ID showing his signature. I hope this helps.

  24. Joman0912

    Hello po…

    I just want to ask, magreresign po sana ako sa work ko ngayong month (oct. end), since i need to serve 30 days notice, so my last day will be Nov. 31.

    Then, magstart po ako ng work ko sa kabilang company by Dec 1.
    I would like to know if im still entitled to a 13th month pay sa new company ko since 1 month pa lang naman ako with them?

    1. Atty. Post author

      Joman0912: The law requires an employer to pay 13th month pay to employees who have worked with them for at least one month. Since your starting date will be December 01 and the deadline for the payment of 13th month pay is on December 24, your employer may not be obliged to give a prorated portion of the 13th month pay. You may have to check with the HR manager of your next employer regarding their treatment of your less than one-month stay with them for the application of the 13th-month pay– and remember, it is not going to be a full amount should they consider your case because it is computed as total basic pay for the year divided by 12. I hope this helps.

  25. Rommel

    atty.
    ask ko lang po kung ibabawas din po ba ang absent ko sa 13th month pay ko.
    halimbawa po, meron po kaming 5 credit absent, at ngayon po nagamit ka na po yung 5 credit absent ko. sa ngayon po meron na akong 3 absent, pero bawat absent ko po eh binabawasan nila ako ng 452pesos.Ang basic salary ko po ay 9500pesos.tama po ba na ibawas nila ang mga absent ko sa 13th month pay ko?

    1. Atty. Post author

      Rommel: Absences in excess of your leave credits are subject to salary deduction on the basis of the policy of “no work, no pay”. The computation of your 13th month pay is based on your total annual salary which the company has paid during the year– so salary deductions for unworked days may affect the base amount for your 13th month pay, although it is not a direct deduction from your 13th month pay. I hope this helps.

      P.S. Not all employers, however, use the legal formula for computing the 13th month pay and simply assume that the amount due is a fixed equivalent of the basic monthly pay. :-)

  26. Jen

    Hello Attorney,
    I am a resigned employee effective Sept 15, 2011. I followed up the pro-rated 13th month pay as well as the pro-rated tax refund, but my former boss says she has to see what I was not able to turn over even if I gave them 30 days notice. Is it legal to hold the pay? Isn’t it enough that I gave 30 days for them to look into what I needed to turn over by then?

    Thanks a lot.
    Jen

    1. Atty. Post author

      Jen: Did you comply with all the clearance procedures before you left? Check the company manual or employee handbook to ensure that you followed the prescribed procedure for resigning. If you have, then you can legally demand for the payment of your pro-rated 13th month pay and tax refund. Just give them a few more days to process your final pay and follow it up continuously until they pay you.

      1. Jen

        Thank you Attorney for the reply. I turned over all my works to the person who was to take my place. My former boss even said that that was what I had to do. I should have put it in writing though because now she is making all the alibis about me not turning over files/docs etc to her even if she said that time that I need not do anymore. Talk about going back on her word. Anyway, I blame my excitement of being free at last. The job was emotionally stressful, you see. Now I have to pay the price of constantly following up with them. And as expected they will say that they are “busy” and such. Sigh. But what can I do right? I will just follow up constantly from now on. At least I know I filled up the clearance form which they also filled up but do not seem to think is legally enough for me to demand my pro-rated 13th month.
        By the way our company has no handbook or employee manual to speak of. So everything is dependent on the whim of one person (my former boss, in this instance) who is also one of the company’s signatory.
        Thank you again. Will let you know how it goes.

      2. Atty. Post author

        Jen: Assuming that they will continue to delay in the release of your 13th month (prorated) pay this month, there is a legal deadline for the payment of all 13th month pay for the year– December 24. While that may sound so far away, their failure to release it by then will already be a direct violation of the 13th month pay law.

      3. Jen

        Noted on that point Attorney. Thanks again.

  27. tina

    Hi Attorney,

    I have read one of your answers wherein you said ‘The computation of your 13th month pay is based on your total annual salary which the company has paid during the year– so salary deductions for unworked days may affect the base amount for your 13th month pay, although it is not a direct deduction from your 13th month pay.’
    However, based from the definition of the law basic salary is –for the purpose of computing the 13th month pay shall include all remunerations or earning paid by this employer for services rendered but does not include allowances and monetary benefits which are not considered or integrated as part of the regular or basic salary, such as the cash equivalent of unused vacation and sick leave credits, overtime, premium, nigh differential and holiday pay, and cost-of-living allowances. However these salary-related benefits should be included as part of the basic salary in the computation of the 13th month pay if by individual r collective agreement, company practice or policy, the same are treated as part of the basic salary of the employees.

    I just have a question when the law said “earning paid by this employer for services rendered ” because our company said that technically, paid sick leaves and vacation leaves are days where the employees do not go to work yet they are remain PAID. And with that, even paid sick and vacation leaves are deducted in our 13th month pay. This they based on this definition -earning paid by this employer for services rendered. Could this be correct? if not how can we correct it given the definition of the law?

    1. Atty. Post author

      Tina: I was referring to days when the employee went on leave without pay, not to paid absences, when I said that the base amount of the 13th month pay will be reduced. However, in your situation, it appears that PAID leave benefits were deducted from your 13th month pay. It is my opinion that it should not be so, following the definition of basic salary for purposes of 13th month pay. I suggest that you give the Department of Labor hotline a call to get a definitive answer which your employer will have no choice but to accept. I am certain that the Dept of Labor will share my interpretation of ‘basic salary’ for purposes of 13th month pay. I hope this helps.

  28. joy1978

    hi attorney,

    me tanong lang po ko bout the computation of my 13th month pay, im earning 13thousand a month for more than a year in our company, last july and i was on maternity leave, pano po icocompute yung 13th month ko? is it over 12 pa din po ba or marereduced to 10 na lng po? pakistate pls ng sample computation para maintindihan ko po.marami pong salamat and god bless po.

    1. Atty. Post author

      Joy1978: Maternity benefits are ordinarily not included in the computation of 13th month pay. You’ll have to check with your company’s policy regarding 13th month pay to see if they include your salary while you were on maternity leave; otherwise, they may legally not include it in the computation. It may result in an amount less than your usual 13th month pay.

  29. Jessica

    Hi Atty..

    Last Oct 2010 I gave birth at ginamit ko po ang 2 mos maternity leave ko na bayad ng SSS. ang tanong ko po tama po ba na i- deducted ng company ko sa 13th month ko last year din 2010/

    1. Atty. Post author

      Jessica: Unless otherwise stated in an existing company policy or CBA agreement or other agreement with your employer, the general rule is that maternity benefits paid by the SSS are not included in the computation of the 13th month pay. This may mean that you will receive an amount slightly less than what you used to receive as 13th month pay.

  30. cecilia viguesilla

    I have been hired in the government on a permanent status last aug. 16, 2011, am i entitled to a prorate 13th month pay? I was only given a prorate cash gift. Please enlighten me on this. Thanks.

    1. Atty. Post author

      Cecilia V: Yes, you are entitled to a prorated 13th month pay.

  31. ryza

    lgood afternoon,attorney. Would just like to ask :

    last sept 10 2011 my boyfriend was interviewed by a company in manila, was immediately accepted even though he was still working with a company in central luzon ( in which he was working for a year). He submitted immediately his resignation letter on sept. 11 because he was due to work asap in the new company on sept. 16th. He was already given clearance by his previous company and is now working in manila. He said that he hasn’t been able to receive from his previous employer his 13th month pay.

    My question is, would it be okay for my boyfriend to receive his thirteenth month pay from his previous employer, seing that the resignation letter was submitted only days before he left his company? He was given a clearance from his previous company and he said that he is having doubts of collecting his thirteenth month from his previous company seeing that they may not give him his thirteenth month pay due to the manner by which he exited his previous company.

    Thanks and more power

    1. Atty. Post author

      Ryza: An employee is entitled to his pro-rated 13th month pay when he resigns, regardless of the manner by which he resigned.

  32. JHEN

    MY CONTRACT WILL ABOUT TO END BY 30TH OF NOV THIS YEAR.I STARTED BY 1ST OF JUNE THIS YEAR.IM NOT GOING TO RENEW MY CONTRACT WITH MY CURRENT COMPANY.IM STILL ENTITLED TO RECEIVE 13TH MONTH PAY RIGHT? AND THAT WILL BE COMPUTED FOR 6 MONTHS UPON MY STAY IN THE COMPANY.

    IM AFRAID THAT MY COMPANY WILL NOT RELEASE MY 13TH MONTH PAY TOGETHER WITH MY HALF MONTH SALARY.IF EVER WHERE CAN I ASK ASSISTANCE FOR IT?

    AND NORMALLY HOW MANY DAYS CAN I RECEIVE 13TH MONTH PAY FROM THE TIME MY CONTRACT ENDS?

    1. Atty. Post author

      Jhen: Pro-rated 13th month pay is usually given together with the other amounts constituting final pay within a few days from the end of your employment. You may have to follow it up constantly to hasten the release. At any rate, the law on 13th month pay sets the deadline for payments of 13th month pay at December 24, for everyone. If it is still unpaid by then, you may go to the Dept. of Labor and initiate a complaint against your previous employer for non payment of 13th month pay.

  33. Godfrey

    Hi, I am a faculty member in a collegiate institution. I had been connected with the college for almost five years. I happen to notice that my 13th month pay significantly decreased in the last 2 years. Our office posted that the 13th month pay of faculty members are computed only on a basis of a 24 unit workload and all absences will be deducted from the 13th month pay. Their basis was the DOLE-DECS-CHED-TESDA order no. 2 series of 1996.

    I was just wondering why my 13th month pay significantly decreased amid the enormous increase in my teaching load and is it true that absences must be deducted from the 13th month for as i know, it was already deducted from my usual monthly compensation.

    I am hoping to be enlightened about the matter. Thanks in advance

    1. Atty. Post author

      Godfrey: The basis of a teacher’s 13th month pay is the basic pay received for services rendered, which does not include overload pay. Overload pay is defined as additional work in excess of the regular teaching load of a teacher.

      In the cited order (DOLE-DECS-CHED-TESDA Order No. 02, the Guidelines on Compensation for Overload and Overtime in Private Educational Institutions, issued on 7 February 1996) it is stated that:

      “3….Overload partakes of the nature of temporary extra assignment and compensation therefore shall be considered as an overload honorarium if performed within the 8-hour period and does not form part of the regular or basic pay.”

      Under the Revised Guidelines on the Implementation of 13th Month Pay, the amount of the basic salary is the sole factor which will determine the amount of the 13th month pay. Thus, the overload pay which does not form part of the basic salary of a teacher is not included in the computation of petitioner’s 13th month pay.

      Regarding your absences during the year, it is not correct to deduct it from the 13th month pay although the fact that deductions were made from your basic pay during the year may result in a lower 13th month pay computation following the formula of “total basic pay received” during the year.

  34. grace

    Does total basic pay means basic pay per month multiplied to twelve less leaves without pay, undertime and tardiness?

    1. Atty. Post author

      Grace: Basic pay under the 13th month pay is not automatically multiplied by 12. Your accounting officer should be able to show you a running total of all your salaries during the year. This is not the same as being multiplied by 12, because some employees may receive less pay during the year as a result of absences without leave, maternity leave, and prolonged sick leave that is no longer paid by the company.

  35. trisha

    hi atty! i’m working in a private sector. regular employee po ako for almost 8yrs… pero nagugulahan pa rin ako sa computation ng 13th month pay ko. isa akong dining supervisor. 407 per day ang rate ko. PAANO KAYA I-COMPUTE ang 13th month pay ko.
    407*26days=10,582 * 12 months / 12 tama po bang paraan yan?
    para kasing yung mag nagtatanong eh fixed na yung monthly rate nila. Ako kasi per day, knowing na regular employee ako.
    Sa tuwing nagbibigayan ng 13th month pay mas malaki pa yung nakukuha ng mga staff ko sa akin.

    2nd question: mayroon akong 50 pesos na allowance na lagi ko naman nakukuha pwede rin ba isama sa computation ng 13th month pay ko?

    Paano kung mayroon akong absences sa loob ng isang cut-off na nababawas sa sahod ko makakaapekto ba ito sa computation ng 13th month pay ko…

    Ano ba ang tinawag na pro rata per rate? ibig bang sabihin kasama ako dun sa pro rata na yun?

    sana matulungan ninyo ako di lang ako pati ang mga kasamahan ko dito sa trabaho.

    salamat…:)

    1. Atty. Post author

      Trisha: 13th month pay will consist of ALL the amounts paid as basic salary during the year and multiplied by 1/12. Absences that are not paid during the year will naturally lead to a lower amount. I suggest that you get hold of all your payslips and add the amounts paid since January, add an approximate amount for December and then multiply the running total by 1/12. That should give you the approximate amount of your 13th month pay. Pro-rating the 13th month pay only comes in if you have not been employed for one year.

  36. trisha

    additional info na rin po 4 give ang 13 month pay namin. till now yung 4th payment ng 13 month pay namin 2010 di pa nabibigay ano po kaya ang pwedeng gawin?

    Posible bang meron na lang pumunta dito sa work ko na taga DOLE para machek kung ano ang status namin mga empleyado. Di ba mayroon naman mga taga labor na nagvivisit sa mga establishment para magtanong tanong sa mga empleyado kung ano ang mga concerns nila. kaysa kami yung pupunta sa DOLE. Para maoblige yung company na ibigay yung dapat sa mga tao…

    Sana matulungan ninyo kami….

    Salamat ulit

    1. Atty. Post author

      Trisha: With so many companies for the Dept of Labor to visit, I am sure it will take a while for them to discover any substandard labor practices in your company unless you file a complaint with them. You can inform the Dept. of Labor by writing them but I can’t assure you that the DOLE will not mention your name to your employer. Just give the Labor Dept a call and ask what you can do. Definitely, you already have the right to demand payment of last year’s 13th month pay.

  37. verna

    We work in a private school and we are paid for 10 months only because we are not receiving salary or any compensation during summer break. Is it right that the 13th month pay will still be divided by 12 since we are working for 10 months only?

    1. Atty. Post author

      Verna: But that is the formula and it is consistent with the basic labor principle of “no work, no pay”; unless, of course, there is an existing school policy or agreement providing for a larger or better formula for its computation.

  38. ramen

    Good day Atty,

    I apologize, this question may be redundant but I need some clarification. I worked w/ the company for 7mos (apr-nov 2011, & just recently resigned. I understand that I will still be able to collect my final pay & 13th month pay, as long as I have worked for the company for one month regardless of the reason or manner by which he resigned.

    - addl question, my prev company whom i’ve worked for at least 1yr 5mos sep2009-march2011, when i resigned in March & finished the clearance i didnt notice that they gave me a 13th mo pay for the yr2011.

    please clarify this.

    Thank you very much.

    1. Atty. Post author

      Ramen: Yes, you are entitled to a pro-rated 13th month pay from both employers. I suggest that you try to retrieve your last payslip from your first employer this year to check for the inclusion of the pro-rated 13th month pay. It should appear in the final payslip. If not, you can inform them of the missing amount.

  39. Corby

    Dear Atty,

    I had just received partial of the 13th month pay from the company that I am currently employed with. I understand that the 13th month given to us was prorated because we were hired Jan 17th 2011. Now, the only problem is, the pay that we received was not complete. On the payslips that they had provided us (they had issued 2, one for the half month’s salary and another one dedicated just for the 13th month pay) It shows that the 13th month pay had deductions on it. From 20K, we were deducted 6K. So what we got right now is 14K. We were told this was in anticipation of any bonuses that we may had received from our previous employers (Jan1-Jan17), and that they will give it back January 2012, although at this time I am not sure whether it be with the tax refund, or at another time.

    Could we (I said we because it was not only me that is going through it) demand that they give it fully before December 24 2011? Is it legal for them to deduct the amount and give it later, meaning to say, after the specified deadline?

    1. Atty. Post author

      Corby: The law is clear regarding the payment deadline of the 13th month pay– December 24, no exceptions. Neither does your cited deduction fall under the formula for its computation. I suggest that you initiate a dialogue with the officer involved to see what can be done before reporting the matter to the DOLE.

  40. jona

    Atty ask ko lng po ala po kaming kontrata na pinirmahan sa company namin are we entitled to have the 13th month pay? may laban ba kmi kng sumbong nmin sa DOLE kc ayaw mgbigay ng boss namin..

    1. Atty. Post author

      Jona: If you have been working for more than 6 months and perform functions necessary and ordinarily required for your employer’s business, then even without a contract, you may already be considered as regular employees who are entitled to the 13th month pay. The deadline for the release of the 13th month pay is on December 24, so technically, your employer has not yet violated the law (unless the employer failed to pay it in the previous years). Also, the Department of Labor requires employers to submit a report of their compliance of the 13th month pay law. If they fail on both requirements, then you may have good cause to complain at the DOLE.

  41. joey

    Hi Attorney, I started with my current Agency March 1 2011 but still with the same Company, my basic pay is 13k a month fixed rate meaning only absences and lates are deducted from my basic which is 6500 bi-monthly, may I ask how much I might get for my 13th month pay, I’m getting confused on all the computation out there, will my 13th month be pro-rated because of the new agency or in full because it is basically the same company just a different employer, please enlighten me on my predicament as this will also help my office mates who are having the same issues and concerns re our 13th month pay.

    Thank you and good day,
    brycekenshin

    1. Atty. Post author

      Joey: You’ll know if your 13th month pay this December is going to be pro-rated if you received a pro-rated 13th month pay when you changed agencies. Please check your payslips in the past months and look for any amount that may represent your pro-rated 13th month pay within the year.

  42. lara

    Hi Atty,

    I just want to ask on how to compute 13th month pay on a piece-rate basis?

    hope you can help me.

    Thanks a lot,

    1. Atty. Post author

      Lara: The pertinent labor law guidelines on the payment of 13th month pay to piece-rate workers state…

      (a) Employees Paid by Results. — Employees who are paid on piece work basis are by law entitled to the 13th month pay.

      Employees who are paid a fixed or guaranteed wage plus commission are also entitled to the mandated 13th month pay, based on their total earnings during the calendar year, i.e., on both their fixed or guaranteed wage and commission.

      Get your payslips from the past months and add up the monthly earnings, including your pay for December 2011 and then multiply by 1/12.

  43. Tuesday

    Hi Atty Employer po ako
    last March 2011 nag close na ang aking school
    dahil hindi ko na rin po kayang patakbuhin ang branch sa las pinas…dahil namatay na po ang aking asawa na sya namang nagpapatakbo ng school namin doon at ako dito sa Main.
    January 2011 pa lang nagsabi na ang mga staff doon na gusto nila magtayo ng school sa same rented building with a different name…pero hiniling nila na hiramin muna nila ang mga gamit ng school ko para makasimula…eventually nag ask na sila ng separation pay dahil hindi income generating ang school at hindi ko alam paano nangyari sa pera nila dahil ang aking asawa ang nagpapatakbo noon…sabi ko na maibibigay ko with in the year … dahil biglaan ang pagkamatay ng aking asawa at marami syang naiwang concerns nahirapan po ako ayusin ang finances at hindi naman po pwedeng mag suffer ang Main campus yon po ang aking inuna muna pero dapat this Dec 9 magkakaayusan na po sana bigla po nilang pinanghawakan na hindi nila ibibigay ang gamit ng dating branch namin doon na kasalukuyang ginagamit nila ang mga properties ng dating campus namin…sinabi ng pinaka namumuno sa mga naghahabol na ibibigay lamang nila ito sa akin kapag nag good na ang lahat ng checks na iissue ko sa kanila…ang tanong ko po ay may karapatan po ba ang na ihold nila ito sa akin…ang aking understanding po talaga ay mali itong ninanais nila. Salamat po

    1. Atty. Post author

      Tuesday: The unpaid employees cannot hold the school properties as security for payment of their separation pay. You may have to file the appropriate case in court to let the court order them to turn the school properties peacefully to you. Please consult a lawyer who may already handle your case to obtain the best possible relief in your case. I hope this helps.

  44. Mild

    hi Atty,

    I want to know if the 13th month pay really subject to absences deduction?If so, how is it done? entire year number of absences? Please help me enlighten as many of us my colleagues here really confused.

    Thanks!

    Mild

    1. Atty. Post author

      Mild: Absences during the year are ordinarily NOT deducted from the 13th month pay. I suggest that you first obtain a clarification of the deductions appearing on your payslips and perhaps ask the DOLE hotline for assistance in claiming the full amount.

  45. Grace

    Atty I just want to ask kung ano po pwede ikaso sa employer ng hubby ko. Kasi alam ko po na ang 13th month pay e binibigay on or before the 24th of december but unfortunately yun sa hubby ko hindi po binigay. Sinabihan sila na ibibigay daw on the 30th. Actually hindi lang po yun kasi yun employer ng hubby ko po always give their salary so late na hindi na office hour, they claim the salary almos 2 am na in the morning. Isa pa po they don’t have other benefits like philhealth, sss, and sa tax. Tapos masakit pa po kapag holiday at regular holiday na may pay pinapasok sila at hindi sila binabayaran. Please help us po.

    1. Atty. Post author

      Grace: You may report any violation of the 13th month pay Law by calling the DOLE Call Center at Hotline 2917 from your Globe or TM mobile phones, 908-2917 from your fixed-line phones for free, or text (SMS) 2910. Concerns may also be addressed to the Bureau of Working Conditions at tel. no. 527-3000 local 301 and 307; email bureauofworkingconditions@gmail.com; bwcdole@gmail.com.

  46. shanytte

    hi Atty. can i ask a copy of the implementing guidelines for 13th month pay. Can the employer hold the release of the 13th month of its employee if the employee still has an obligation to pay.The company issued a memo stating that his 13th month pay will be offsetted against his obligation.

    1. Atty. Post author

      Shanytte: The employer may not withhold payment but if the employee signed an authority for the employer to deduct unpaid obligations from amounts earned from it , then the employer may be able to release a NET amount to the employee. But if no such authority to deduct has been made, then the employer cannot properly offset any amount against the 13th month pay or even the salary of the employee.

  47. blue

    Hello Atty.,

    May I ask how to have a copy of Labor Code of the Phil. for the employees in private sector? I’m having hard time searching it online. This is a very significant for us in private sectors since private employers are mostly ignoring or not aware of this Law.

    It’s just that we can’t give up the service we rendered and contributed to such private company. Thank you so much.

    Well appreciated,

    Blue :)

    1. Atty. Post author

      Blue: Here’s a good link to obtain a look at the Labor Code. But there are other sources of labor laws in the Philippines, other than the Labor Code– these include special laws passed by Congress, rules and regulations issued by the Dept. of Labor and decisions on labor cases issued by the Supreme Court. You’ll probably need a law student HR practitioner or lawyer to fully educate you on labor laws. :-) I hope this helps.

      1. Blue

        Hi Atty.,

        Have a pleasant day, Thank you so much for the knowledge and educating us in a simple way but brought a lot of hope for us to understand the part of us as a citizen.

        God Bless You.

        Kind Regards,

        Blue

  48. trisha

    hi ask ko lang sana. ano kaya yung karapatan namin bilang mga empleyado sa aming company. under renovation po kasi ngayon. binabawasan na nag araw ng aming pagpasok…
    4 days a week na lang kami pinagduduty na aming company.
    Tama po ba yun? kaya tuwing sasahod kami magkano na lang yung nakukuha namin. Regular employee po ako.
    Tapos yung araw naman namin na mayroong overtime. hindi nila binabayaran gagawin nila pinadeday-off kami para off set na lang daw. bayad daw yung araw namin na day-off tama ba yun?? ano po kaya ang pwede namin gawin.
    Sana matulungan mo po kami… Salamat..

    1. Atty. Post author

      Trisha: The employer may temporarily reduce working hours but must get the employees’ consent to reduce their pay before informing the DOLE of the temporary arrangement. Check with the DOLE if your employer has filed the necessary papers before implementing this temporary work schedule. Overtime pay is a legal requirement, and there is no provision allowing offsetting by giving day off. I suggest that you inquire first from the company if they have legal basis for their decisions in the mentioned circumstances. If you doubt their explanation then you may ask the DOLE for an opinion given the same facts before filing a complaint, if necessary.

  49. Dob

    Hi po, ask ko lang. According to the law, 13th month should be settled on or before the 24th of december. In our case po, it’s already february pero wala pa rin pong 13th month na naibibigay sa amin. What actions should be done po in order to solve this problem? And are we entitled to make legal steps? Thanks!

    1. Atty. Post author

      Dob: Assuming you are entitled to 13th month pay, you may inquire with the DOLE nearest your office if your employer has filed a certification that it has complied with the 13th month pay law for 2011. From there, you can file a complaint with the DOLE regarding unpaid 13th month pay.

  50. name

    may i ask you if there is a law which violated when the company releases the 13th month pay six months after the effectivity of resignation?

    1. Atty. Post author

      Name: You can complain about it if the 13th month pay has not yet been released as of this time. But it may be moot and academic if it has already been paid.

  51. illuminata

    My employer places an employee’s salary on hold during a MAT leave. I’ll be on MAT leave mid Sept. 2012 and will be back late Dec. 2012. Normally my salary will be reinstated mid Jan. 2013. What’ll happen to my 13th month pay then? Will I get it Jan. 2012 once my salary gets reinstated? or should I receive it before Dec. 24, 2012 as mandated by law? Thanks!

    1. Atty. Post author

      Illumata: If you are on leave, then you should still be able to receive your 13th month pay before Dec. 24, 2012. The employee being on leave is not an exception in the 13th Month Pay Law.

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