When must it be paid?

The 13th month pay shall be paid not later than December 24 of each year. An employer, however, may give to his employees one half (½) of the required 13th month pay before the opening of the regular school year and the other half on before the 24th of December of every year. The frequency of payment of this monetary benefit may be the subject of agreement between the employer and the recognized/collective bargaining agent of the employees.

Could the employer withhold the 13th month pay?

No, the payment of 13th month pay is mandatory, specifically provided under Presidential Decree (P.D.) No. 851. In case of non-payment of 13th month pay, covered employees could complain at the Department of Labor and Employment (DOLE)  or the National Labor Relations Commission (NLRC).

Is 13th month pay taxable?

No, as long as the amount does not exceed P30,000. Only the amount in excess of P30,000 is taxable.

Read Part 1; Part 3; How is it Computed; Distinguished from Bonus