As June 2025 rolls in, employees and employers alike are revisiting one of the most anticipated year-end benefits in the Philippines — the 13th Month Pay. For millions of Filipino workers, this benefit is more than just a bonus; it’s a legal entitlement under Presidential Decree No. 851. But calculating it accurately requires a clear understanding of the 2025 guidelines, legal framework, and specific employment conditions.
What Is the 13th Month Pay?
The 13th month pay is a mandatory benefit that must be granted to all rank-and-file employees who have worked for at least one month during the calendar year. It must be released no later than December 24, 2025, as per Department of Labor and Employment (DOLE) mandates.
Unlike bonuses, this is non-negotiable and is calculated based on an employee’s basic salary — excluding allowances, overtime pay, holiday pay, and other monetary benefits.
2025 13th Month Pay Rules: Who Qualifies?
In 2025, eligibility for the 13th month pay remains consistent with DOLE’s standing regulations:
- Rank-and-file employees, regardless of the nature of their employment (regular, contractual, project-based), are entitled.
- The employee must have rendered at least one month of service within the calendar year.
- Government employees, freelancers, and those in managerial positions are generally not covered unless specified in their contracts.
How to Use the 13th Month Pay Calculator (2025 Edition)
To streamline the computation, many employers and HR professionals now use an online 13th Month Pay Calculator. This tool requires two main inputs:
- Total basic salary earned from January to December 2025
- Total number of months worked in 2025
The formula remains simple and legally backed:
13th Month Pay = Total Basic Salary Earned During the Year / 12
Here’s a quick reference:
| Months Worked | Total Basic Salary (PHP) | 13th Month Pay (PHP) |
|---|---|---|
| 12 | 240,000 | 20,000 |
| 10 | 200,000 | 16,666.67 |
| 6 | 120,000 | 10,000 |
Make sure the calculator you’re using is compliant with the updated 2025 labor standards.
13th Month Pay Calculation Guide for Employers
Employers must compute the benefit based only on the employee’s actual basic pay. The common mistake is including additional income types like commissions or incentives, which aren’t part of the computation unless specifically stated in the contract.
Key steps for employers in 2025:
- Aggregate basic salary from January to December.
- Divide by 12 to get the pro-rated 13th month.
- Ensure payout on or before December 24.
Delays or non-compliance may result in legal consequences, including penalties or complaints filed with DOLE.
Important Updates for 2025
- Hybrid and remote workers are still eligible as long as they meet the standard requirements.
- Maternity leave and unpaid leaves are not considered paid working days and should not be included in the computation.
- Employees who resigned mid-year are entitled to a prorated 13th month based on months worked.
Employers are encouraged to keep detailed salary records and to inform employees ahead of time about their expected 13th month pay.
Conclusion
The 13th month pay continues to serve as a financial cushion for Filipino workers, especially during the holiday season. As 2025 presents both traditional and emerging work setups, staying informed about the updated rules and accurate methods of computation ensures both compliance and transparency. Whether you’re an employer, HR personnel, or employee, using a reliable 13th month pay calculator and following the proper calculation guide makes all the difference.
FAQ – 13th Month Pay in the Philippines (2025)
Who is entitled to the 13th month pay in 2025?
Rank-and-file employees who have worked for at least one month in 2025 are entitled, regardless of employment status.
Is the 13th month pay taxable in 2025?
It is not taxable as long as it does not exceed PHP 90,000, as per the latest BIR ruling.
What is included in the basic salary for the 13th month computation?
Only the base salary is included. Allowances, bonuses, and overtime pay are excluded.
Can resigned employees receive 13th month pay?
Yes. They receive a prorated amount based on their months of service in 2025.
When is the deadline for 13th month pay release in 2025?
It must be paid no later than December 24, 2025.
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