13th month pay 2026: due bago Dec 24 — are you ready?
Employers, heads up: the 13th month pay for 2026 must reach every rank-and-file employee not later than December 24. This year, December 24 falls on a Thursday — the last working days before Christmas get busy, so payroll and bank cut-offs come early.
Sino ang may karapatan?
- All rank-and-file employees, regardless of how much they earn (M.O. No. 28, 1986).
- Regardless of position, designation or employment status, and however they are paid — monthly, daily or piece rate — as long as they worked at least one month in the calendar year (Rules implementing P.D. 851, Sec. 4).
The rule in one line
13th month pay = basic salary earned within the calendar year ÷ 12 (Rules implementing P.D. 851, Sec. 2(a)).
Example: full year, mid-year hire, at isang may advance
Illustrative example only. Basic pay ₱18,000 a month, calendar year 2026.
| Employee | Basic salary earned in 2026 | 13th month pay | Still to pay by Dec 24 |
|---|---|---|---|
| Ana — worked Jan to Dec | ₱216,000 | ₱18,000 | ₱18,000 |
| Ben — hired June 1 | ₱126,000 (7 months) | ₱10,500 | ₱10,500 |
| Carla — full year, half paid before school opening | ₱216,000 | ₱18,000 | ₱9,000 |
Paying half before the school year opens and the rest by Dec 24 is allowed (Rules, Sec. 5).
Tax: the ₱90,000 ceiling
13th month pay and other benefits are excluded from taxable income up to a combined ₱90,000 a year (NIRC Sec. 32(B)(7)(e), as amended by R.A. 10963). Illustrative: a manager on ₱80,000 a month gets a ₱80,000 13th month plus a ₱20,000 Christmas bonus = ₱100,000 → ₱10,000 goes to taxable compensation in the December payroll.
⚠️ Tandaan. A Christmas bonus can count as the 13th month only if it is at least 1/12 of the basic salary — if you pay less, you pay the difference. Allowances and COLA are not "its equivalent" (Rules implementing P.D. 851, Sec. 3).
Checklist for employers
- ☐ List every rank-and-file employee who worked at least one month in 2026
- ☐ Add up each one's basic salary actually earned Jan–Dec
- ☐ Divide by 12; subtract any advance already released
- ☐ Check the ₱90,000 ceiling for higher earners
- ☐ Book the bank transfer for the week before Dec 24, not on the day itself
- ☐ Keep a signed payslip or acknowledgment per employee
- ☐ Report compliance to the nearest DOLE regional office by Jan 15, 2027 (Rules, Sec. 8)
Libre ang template
Monthly-paid and daily-paid sheets, Dec 24 countdown, advance-vs-balance column and a payslip — type the pay, the 1/12 computes itself.
Open the 13th month pay computation →
Legal basis: P.D. No. 851 (1975), Sec. 1, and its Rules, Secs. 2–5 and 8; Memorandum Order No. 28 (1986); NIRC Sec. 32(B)(7)(e) as amended by R.A. No. 10963 — lawphil.net.