When Should You Receive Your 13th Month Pay?

(SPOT.ph) The year’s almost over, which means one thing is on every employee’s mind: their 13th month pay. While most people already know it’s mandatory, what often gets lost in the rush is when exactly you’re supposed to receive it—and what to do if your employer misses the deadline.

The rule is very straightforward. Under Presidential Decree No. 851, all rank-and-file employees that have worked for at least a month in the company must receive their 13th month pay on or before December 24 every year. Even if the company’s payroll system is complicated, even if business has been slow, even if the human resources (HR) department is “still computing”—the law sets a firm cutoff so employees have the cash they need before the holidays.

Some companies release it early, usually in the first half of December or even late November. That’s allowed. Employers can pay in advance or split it across two payouts, as long as the full amount still lands before Christmas Eve.

So what happens if December 24 comes and goes without anything hitting your payroll account? According to the Department of Labor and Employment (DOLE), workers can file a formal complaint with the nearest DOLE field office. Non-payment is considered a money-claims case under the law, which means authorities can order the employer to release the unpaid amount.

Also read: What Is the Difference Between 13th Month Pay and Christmas Bonus?

The computation also never changes: it’s the employee’s total basic salary for the year divided by 12. Someone earning a basic salary of P20,000 a month will receive the same amount. Allowances, overtime, holiday pay, and similar extras don’t count unless your company policy says otherwise.

In cases of resignations, terminations, or new hires who joined mid-year, employees are still entitled to a pro-rated 13th month pay based on the actual months worked. For example, if a new hire comes in mid-year—say they joined on July 1 with a basic salary of P18,000—they’ll be paid P9,000 for six months of service. The same pro-rating applies to those who resign before December.

The only workers who don’t get 13th month pay are those covered by the old exemptions in Presidential Decree 851—like household helpers, people paid purely on commission or boundary basis, and employees of the national government (who instead are gifted a mandatory Year-End Bonus).

Also read: 13th Month Pay Splurge: Why “I Deserve This” Turns Into Regret