Every employee in the Philippines eagerly anticipates the 13th Month Pay Rules 2025—a mandatory year-end bonus that offers financial relief during the holidays.
As mandated by the Department of Labor and Employment (DOLE), this benefit continues to be a crucial source of income for workers. Here’s everything you need to know about eligibility, calculations, deadlines, and recent updates for 2025.
What Is 13th Month Pay?
The 13th Month Pay is a mandatory bonus equal to one‑twelfth (1/12) of the total basic salary earned in a calendar year. It is non‑taxable up to ₱90,000, a provision that helps ease the financial burden during the festive season.
Who Qualifies?
- Coverage: All rank‑and‑file private‑sector employees who have worked at least one month in 2025—regardless of employment status (full‑time, probationary, contractual).
- Exclusions: Government workers, freelancers, independent contractors, household helpers (unless specified in employment contracts).
- Separation: Even those who resigned or were terminated before year-end receive a pro‑rated amount, to be paid within 30 days of separation or included in final pay—whichever is earlier.
How It’s Calculated
The formula:
13th Month Pay = Total Basic Salary Earned ÷ 12
- Basic salary includes fixed monthly wages (including COLA if integrated).
- Excludes overtime, holiday pay, commissions, allowances, night-shift differentials.
- Pro‑rata applies for non‑full‑year employees (e.g. 6 months’ basic salary ÷ 12).
Payment Deadline & Schedule
| Item | Details (2025) |
|---|---|
| Due Date | On or before December 24, 2025 |
| Split Option | Employers may pay in two instalments (e.g. June and December) |
| Separated Employees | Full or pro‑rated pay due within 30 days of separation or as final pay |
| Compliance Report Deadline | Employers must submit DOLE reports by January 15, 2026 |
Tax & Reporting Rules
- The ₱90,000 cap applies to your total 13th Month Pay + other non-taxable benefits; any excess becomes taxable.
- Employers must:
- Reflect 13th Month Pay in BIR Form 2316 and annual Alpha List
- Submit proof to DOLE and retain payslips/payroll records for at least 3 years
DOLE Compliance & Penalties
- Deadlines are strictly enforced. Any delay invites administrative penalties, interest, and possible permit suspension.
- DOLE accepts complaints via regional offices or online Single‑Entry Approach (SEnA).
- Employers must settle 13th Month Pay before addressing other obligations—even in cases of unpaid salary or notice violations.
Why These Rules Matter
- Ensures financial security during the holiday season
- Protects rank‑and‑file workers across all employment types
- Promotes transparency and timely payouts
- Aligns with DOLE’s mandate for fair labor practices
The 13th Month Pay Rules 2025 remain vital in ensuring fair and timely financial support to private‑sector employees in the Philippines.
With non‑taxable thresholds, strict deadlines, and clear DOLE enforcement, 2025 policies aim to promote compliance, transparency, and worker welfare.
Whether you’re an employer or an employee, understanding these rules helps guarantee that everyone receives their lawful share—punctually and accurately. Act now: check your eligibility, confirm your computation, and prepare for the upcoming payout.
FAQs
Can I split my 13th Month Pay instalment?
Yes. DOLE permits two instalments, such as mid-year and December, but the full amount must be paid by December 24, 2025.
Will contractors get their 13th Month Pay?
No—independent contractors and freelancers are not covered. Only rank‑and‑file employees in the private sector qualify.
Is the 13th Month Pay taxable?
Only amounts above ₱90,000 (combined with other non-taxable benefits) are subject to income tax, following DOLE’s 2025 threshold.