THE Department of Labor and Employment (DOLE) has reminded all private sector employers to submit their compliance report on their workers’ 13th-month pay. Secretary Bienvenido Laguesma said Friday that all employers have until Jan. 15, 2026 or three weeks after the Dec. 24, 2025 deadline on the 13th-month payout as required by law and the implementing guidelines. According to Laguesma, employers may submit their compliance report through the DOLE Establishment Report System (https://reports.dole.gov.ph). He emphasized that employers must release the 13th-month pay on or before Dec. 24, 2025, without exception. Employers who fail to comply risk facing charges and shall be processed in accordance with the Rules Implementing the Labor Code of the Philippines and the Rules of the National Labor Relations Commission. “Employers who failed to give 13th-month pay will have to pay more with moral and exemplary damages if found guilty,” added Laguesma. Under the Civil Code, monetary awards for unpaid wages and benefits may accrue interest at a rate of 6 percent per annum from the date of demand until payment is full. Additional moral and exemplary damages may be granted if the employer acted in bad faith. Aggrieved employees may file complaints with DOLE, National Labor Relations Commission (NLRC), Department of Trade and Industry (DTI) and Bureau of Immigration (BI) in the case of a foreign employer. To avoid litigation, Laguesma also encourages both employers, particularly struggling businesses, to dialogue with their employees so that they can meet halfway and come up with a “win-win” solution to the problem. Laguesma said the Labor department would not resort to extreme actions against companies facing hardships that failed to pay their employees the mandatory 13th-month pay because doing so would leave the workers on the losing end. “We will not close down companies that cannot afford to pay their workers their 13th-month pay. We don’t like to deprive the workers of their opportunities to get their rightful benefits and continue with their jobs,” added Laguesma. The 13th-month pay is a statutory right of workers. Under Labor Advisory 16, series of 2025, the 13th-month pay applies to all rank-and-file employees in the private sector, regardless of position, employment status, or wage payment method, provided they have worked for at least one month during the calendar year. It includes employees paid on a piece-rate basis, those receiving fixed or guaranteed wages plus commissions, workers with multiple employers, and even those who have resigned, been terminated, or were on maternity leave with a salary differential. Presidential Decree (PD) 851, also known as the Thirteenth Month Pay Law, requires all employers to pay their employees one month’s equivalent salary on or before Dec. 24th every year. According to the DOLE advisory, the minimum 13th-month pay shall not be less than one-twelfth (1/12) of the total basic salary earned by an employee within the calendar year. It is computed as follows: total basic salary / 12 months = proportionate 13th month pay DOLE explained that “basic salary” includes all earnings for services rendered but excludes allowances and benefits, such as overtime pay, night shift differential, holiday pay, unused leave credits, and cost-of-living allowances — unless explicitly treated as part of the basic salary under company policy or collective agreements. For piece-rate workers, the computation is based on their total production earnings divided by twelve. Meanwhile, employees who earn fixed wages plus commissions receive their 13th-month pay computed on the fixed wage alone, consistent with Supreme Court jurisprudence (Boie-Takeda Chemicals, Inc. v. De la Serna). As for domestic helpers or kasambahay, they are also entitled to 13th-month pay as provided for under Republic Act 10361, the Domestic Workers Act or Batas Kasambahay. Under Section 2 of RA 10361, classified as kasambahay, whether on a live-in or live-out arrangement, are general house help, yaya, cook, gardener, laundry person or any person who regularly performs domestic work in one household on an occupational basis. Not covered are service providers, family drivers, children under foster family arrangement and any other person who performs work occasionally or sporadically and not on an occupational basis.