What is the mandatory 13th-month salary in the Philippines?



Modified on: Thu, 11 Dec, 2025 at 7:50 PM

What is 13th-Month Pay?

The 13th-month pay is a mandatory benefit under Philippine law.

  • It equals one-twelfth (1/12) of an employee’s total basic annual salary.
  • It must be paid no later than December 24 each year.
  • Employees qualify if they have worked at least one month during the calendar year.

Calculation:

13th-month pay= Total basic salary earned in the year / 12


What About 14th-Month Pay?

The 14th-month pay is not required by law. Some companies choose to offer it voluntarily as an additional benefit, often as a mid-year or year-end bonus.


How to Add 14th-Month Pay in Horizons

If you wish to provide a 14th-month pay:


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