13th-Month Pay Coverage

WHICH WORKERS ARE COVERED BY THE 13TH-MONTH-PAY LAW?

All employers are required to pay all their rank-and-file employees, a 13th month pay not later than December 24 of every year.

Only rank-and-file employees, regardless of their designation or employment status and irrespective of the method by which their wages are paid, are entitled to the 13th month pay benefit. Managerial employees are not entitled to 13th month pay.
WHO ARE EXCLUDED OR EXEMPT?

The following employers are not covered by the 13th month pay law:

[1] The government and any of its political subdivisions, including government-owned and controlled corporations, except those corporations operating essentially as private subsidiaries of the government.
[2] Employers already paying their employees 13th month pay or more in a calendar year or its equivalent at the time of the issuance of the Revised Guidelines.
[3] Employers of those who are paid on purely commission, boundary, or task basis, and those who are paid a fixed amount for performing a specific work, irrespective of the time consumed in the performance thereof, except where the workers are paid on piece-rate basis, in which case, the employer shall be covered by the Revised Guidelines insofar as such workers are concerned. Workers paid on piece-rate basis shall refer to those who are paid a standard amount for every piece or unit of work produced that is more or less regularly replicated without regard to the time spent in producing the same.