The 13th Month Pay remains one of the most awaited benefits for employees in the Philippines. Mandated by law, this annual bonus helps workers manage their holiday expenses and year-end financial responsibilities. In 2025, employers are again legally bound to comply with updated 13th Month Pay Rules 2025, as outlined by the Department of Labor and Employment (DOLE). Understanding the latest rules, payment deadlines, and legal obligations is essential for both employers and employees to ensure timely compliance and avoid penalties.
13th Month Pay 2025 in the Philippines
| Item | Details |
|---|---|
| What It Is | Mandatory bonus equivalent to 1/12 of an employee’s basic annual salary |
| Who Should Receive It | All rank-and-file employees who have worked at least one month in 2025 |
| Coverage | Private sector employees, regardless of employment status |
| Due Date | On or before December 24, 2025 |
| Governing Body | Department of Labor and Employment (DOLE) |
| Calculation Basis | Total basic salary earned during the calendar year ÷ 12 |
| Exclusions | Government employees, freelancers, independent contractors |
| Official Link | DOLE Website |
-
Primary Keyword: 13th Month Pay Rules 2025
-
Secondary Keywords: DOLE, payout deadlines
13th Month Pay Rules 2025: What Employers and Employees Must Know
The 13th Month Pay Rules 2025 enforce clear obligations for private employers in the Philippines. According to DOLE, this pay is not a bonus but a mandatory benefit. Employees who have rendered at least one month of work, regardless of their employment status—regular, probationary, or contractual—are legally entitled to this benefit.
The benefit is non-taxable up to PHP 90,000, provided it is given in conjunction with other benefits like Christmas bonuses and productivity incentives. Amounts exceeding this cap are subject to income tax.
Employers are prohibited from delaying or skipping payouts, and DOLE routinely monitors compliance, especially during the final quarter of the year.
Eligibility Requirements
To receive 13th month pay in 2025, an employee must meet the following:
-
Be rank-and-file, not managerial level
-
Have worked at least one month during the 2025 calendar year
-
Be employed in the private sector
This pay applies to:
-
Full-time employees
-
Probationary employees
-
Contractual workers (under legitimate job contracting arrangements)
Excluded from this benefit are:
-
Government workers
-
Freelancers and consultants
-
Household helpers unless specified in their contracts
Calculation Method
The DOLE-prescribed formula for computing the 13th month pay remains unchanged:
Total Basic Salary Earned in 2025 ÷ 12 = 13th Month Pay
Only the basic salary is considered. This excludes:
-
Overtime pay
-
Night shift differentials
-
Holiday pay
-
Allowances and commissions (unless considered part of basic salary)
Payout Deadlines and Schedule for 2025
Employers must release the 13th month pay on or before December 24, 2025. While they can pay it earlier, failure to meet the deadline is a violation of labor law and can result in administrative penalties.
Some companies choose to split the pay in two:
-
First half in June
-
Second half in December before the deadline
This is permitted, provided the full amount is paid by the 24th of December.
Reporting and DOLE Compliance
Employers are expected to submit proof of compliance through DOLE regional offices. The report on compliance should include:
-
Name of establishment
-
Total number of covered employees
-
Total amount paid
-
Date of payment
This is usually submitted on or before January 15 of the following year.
Non-compliance may trigger inspections, fines, or legal actions initiated by DOLE.
Frequently Asked Questions
What happens if an employer fails to give the 13th month pay by the deadline?
They may be reported to DOLE, face administrative charges, and be required to pay the owed amount plus possible penalties.
Can a resigned or terminated employee still receive it?
Yes, as long as they worked for at least one month in 2025, they are entitled to a pro-rated 13th month pay.
Is it legal to include commissions in the computation?
Only if commissions are part of the employee’s basic pay as defined in their contract or company policy.
Are part-time employees covered under 13th month pay rules?
Yes, if they are classified as rank-and-file and are employed in the private sector.
Are bonuses and incentives considered part of the 13th month pay?
No. The 13th month pay is a separate legal benefit and must be computed independently of other bonuses.
Click here to learn more
Akesh is a talented content writer known for creating captivating and impactful narratives. He understands what resonates with audiences and tailors his content to inform, inspire, and engage. From blog posts and articles to marketing copy, his work consistently combines creativity with clarity. His skillful writing strengthens our brand’s voice and ensures our message leaves a meaningful impression.