Dole-7 to employers: Release 13th month pay on time

Local

THE Department of Labor and Employment-Central Visayas (Dole-7) has issued a reminder to employers that the 13th-month pay must be released on time.

The agency emphasized that the pay should be released without delays or excuses, even as parts of the region continue to recover from recent calamities.

During the MyTV Cebu Openline news media forum on Tuesday, Dec. 2, Engr. Anna Marie Satorre, the senior labor employment officer of Dole-7, said that the obligation to provide workers their 13th-month pay remains “unchanged and uncompromisable.”

Satorre said Labor Advisory No. 16, Series of 2025, clearly states that no deferment or suspension of the mandatory payout will be permitted under any circumstance.

“Employers are expected to comply with the law and ensure funds have been prepared in advance for the mandatory benefit,” Satorre said.

Dole reiterated that all employers must release the 13th-month pay on or before Dec. 24, 2025.

The reminder aligns with the national government’s push to ensure Filipino workers receive timely holiday benefits.

Labor Secretary Bienvenido E. Laguesma earlier stressed that the 13th-month pay is not optional and not subject to negotiation.

“The 13th-month pay is a statutory right of workers. Employers must ensure timely and full compliance, as this benefit is crucial in supporting Filipino families during the holiday season,” said Labor Secretary Bienvenido Laguesma in a statement.

Labor Advisory No. 16, signed on November 15, outlines the rules covering eligibility, computation, and compliance for the private sector.

Who must receive the 13th-month pay?

Under Labor Advisory No. 16, the mandatory 13th-month benefit applies to all rank-and-file employees in the private sector, regardless of:

Position

Employment status (regular, probationary, casual)

Wage payment method (monthly, daily, piece-rate)

Employees who worked for at least one month during the calendar year are entitled to receive the benefit.

This coverage also includes:

Piece-rate earners

Workers receiving fixed wages plus commissions

Employees with multiple employers

Employees who resigned, were terminated, or went on maternity leave with salary differential

How the 13th-month pay is computed

The minimum 13th-month pay must be not less than one-twelfth (1/12) of an employee’s total basic salary earned within the year:

TOTAL BASIC SALARY EARNED DURING THE YEAR ÷ 12 = 13TH-MONTH PAY

“Basic salary” includes all earnings for services rendered but excludes:

Overtime pay

Night shift differential

Holiday pay

Unused leave credits

Cost-of-living allowances

Other non-monetary benefits

For piece-rate workers, computation is based on total production earnings divided by 12.

For employees earning fixed wages plus commissions, only the fixed wage is used in computing the 13th-month pay, consistent with the Supreme Court ruling in Boie-Takeda Chemicals, Inc. vs. De la Serna.

Strict enforcement, mandatory reporting

Dole regional and field offices will intensify inspections to ensure compliance.

To monitor adherence nationwide, employers must submit their 13th-month compliance reports via the DOLE Online Compliance Portal no later than January 15, 2026.

Reports should include:

Company details

Total employment

Number of beneficiaries

Amount granted to each worker

Contact information for verification

No request for exemption or deferment will be entertained, the agency stressed.

Why government employees are not covered

Government workers are not entitled to the 13th-month pay mandated under Presidential Decree 851. Instead, they receive separate benefits such as: mid-year bonus, year-end bonus, and possible 14th-month pay (subject to agency discretion).(TGP)