The Department of Labor and Employment (DOLE) has ordered all covered private-sector employers to pay their rank-and-file employees the mandatory 13th-month pay on or before December 24, 2026, with no exemption or deferment allowed.
At a glance
- Issued by: DOLE Labor Advisory No. 21, Series of 2026, signed by Secretary Francis N. Tolentino (November 2026)
- Covered: rank-and-file private-sector employees who worked at least one month in the calendar year
- Minimum amount: 1/12 of total basic salary earned in the calendar year
- Deadline: on or before December 24, 2026
- Exemption or deferment: not allowed
- Compliance report: DOLE Online Compliance Portal, by January 15, 2027
The directive was issued through DOLE Labor Advisory No. 21, Series of 2026, signed by Labor Secretary Francis N. Tolentino in November 2026. The advisory was issued pursuant to Article 5 of the Labor Code of the Philippines, as renumbered, and Presidential Decree No. 851.
Who Is Covered Under the Mandate
According to DOLE Labor Advisory No. 21, s. 2026, the 13th-month pay requirement covers all rank-and-file employees in the private sector regardless of their position, designation, or employment status, and regardless of how their wages are paid — provided they have worked for at least one month during the calendar year.
The advisory explicitly extends coverage to employees paid on a piece-rate basis, those receiving a fixed or guaranteed wage plus commission, workers with multiple employers, employees who have resigned or been terminated from employment, and those who went on maternity leave and received salary differential during the year.
How the Minimum Amount Is Calculated
The DOLE advisory states that the minimum 13th-month pay shall not be less than one-twelfth (1/12) of the total basic salary an employee earned within the calendar year. The formula is straightforward: total basic salary earned during the year, divided by 12.
The advisory defines "basic salary" as all remunerations or earnings paid by the employer for services rendered. It does not include allowances and monetary benefits that are not integrated into the regular or basic salary — such as 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 these are treated as part of basic salary through an individual or collective agreement, company practice, or policy.
As an illustrative example cited in the advisory, an employee who earned a total basic salary of ₱120,000 from January to December 2026 is entitled to a 13th-month pay of ₱10,000.
Resigned and Separated Employees Also Entitled
The advisory makes clear that employees who resigned or were separated from their employer before December 24 are still entitled to 13th-month pay, computed in proportion to the length of time they worked during the calendar year — reckoned from the date they started working up to the date of their resignation or termination.
No Exemption or Deferment
DOLE states that no request or application for exemption from the payment of 13th-month pay — nor any application for deferment of payment — shall be accepted or allowed.
Employers Must File Compliance Report by January 15
Under the advisory, employers are required to report their compliance through the DOLE Online Compliance Portal at https://reports.dole.gov.ph/ not later than January 15, 2027.
DOLE Regional Offices to Monitor Employer Compliance
Enforcement of the advisory will be carried out by the appropriate DOLE Regional, Field, or Provincial Office with jurisdiction over each workplace, the advisory states, in accordance with Department Order No. 238, Series of 2023.
Photo credit: Photo courtesy of DOLE Philippines