WHILE required by law, the Bureau of Working Conditions (BWC) on Friday, December 12, 2025, said there is more to employers giving 13th month pay than legal compliance.
In a phone interview, BWC Director Alvin Curada said providing the 13th month pay is also a way for employers to show appreciation to their employees.
“The 13th month pay is not just a legal requirement. It is also a recognition of workers’ valuable contribution to the productivity and success of every business,” Curada said.
“Beyond simply following the law, this benefit shows respect for workers, encourages continuous productivity, and helps retain employees by demonstrating that companies value the people who support their growth,” he added.
Presidential Decree 851 requires private-sector employers to pay rank-and-file employees a 13th month pay, provided they have worked for at least one month during the calendar year.
The minimum 13th month pay shall not be less than 1/12 of an employee’s total basic salary earned within the calendar year.
No employer is exempted from paying the 13th month pay, the Department of Labor and Employment stressed.
Labor Advisory No. 16-2025 states that the 13th month pay must be released on or before December 24, 2025. (MAP)