The Department of Labor and Employment (DOLE) has issued a firm reminder to all private sector businesses across the Philippines: the 13th month pay is a mandatory benefit that must be provided to employees. Labor Secretary Bienvenido Laguesma emphasized that there are no valid excuses for non-compliance.
A Non-Negotiable Statutory Right
In a recent statement, Secretary Laguesma underscored the fundamental nature of this benefit. "The 13th month pay is a statutory right of workers. The 13th month pay is a non-negotiable right for workers to ensure their well-being and that of their families," he declared. This directive is based on Labor Advisory No. 16-2025, which leaves no room for ambiguity regarding employer obligations.
Who is Covered and How Much is Due?
The DOLE advisory clarifies that the benefit applies comprehensively to all rank-and-file employees in the private sector. Coverage is universal, regardless of an employee's specific position, employment status, or how their wage is paid. The key requirement is that the employee must have worked for at least one month during the 2025 calendar year.
Specifically, the mandate includes:
- Employees paid on a piece-rate basis.
- Workers receiving a fixed or guaranteed wage plus commissions.
- Individuals working for multiple employers.
- Those who have resigned or were terminated within the year.
- Employees who were on maternity leave and received a salary differential.
The calculation for the minimum 13th month pay is straightforward: it should not be less than one-twelfth (1/12) of the employee's total basic salary earned during the entire calendar year.
Strict Deadlines for Payment and Compliance
DOLE has set clear and non-negotiable deadlines for this annual obligation. All employers must release the 13th month pay to their qualified employees on or before December 24, 2025. This gives workers timely financial support for the holiday season.
Furthermore, the department has instituted a monitoring mechanism. All employers are required to submit their compliance reports through the DOLE Online Compliance Portal (https://reports.dole.gov.ph/) no later than January 15, 2026. This online reporting system streamlines the process and ensures accountability.
To enforce this directive, DOLE has instructed all its regional and field offices nationwide to ensure that every establishment under their jurisdiction adheres to the labor advisory. This top-down enforcement strategy aims to guarantee that no eligible worker is deprived of this crucial year-end benefit.
