13th Month Pay and What to do If You Can’t Wait For it

The 13th month pay is like a Christmas gift for Filipino workers. Here’s how you can make the best of it, and see what else you can do if your 13th month pay isn’t enough.

What is 13th Month Pay?

As mandated by Presidential Decree No. 851, if you’re an employee in the private sector, you’re entitled to an extra paycheck, your 13th month pay. This decree aims to offer financial assistance during the holiday season, making Christmas and New Year celebrations more enjoyable.

This pay is a legal benefit essentially equivalent to 1/12 of the employee’s total basic salary within a calendar year. It’s an extra month’s worth of salary provided to employees to give them an extra financial boost for the year.

What’s the Best Thing to Do with Your 13th Month Pay?

While you have the choice to use your 13th month pay for shopping, extravagant holiday gifts, or vacations, you can also consider using it to help you reach your financial goals. 

  1. Pay Your Debts: If you have debts or loans, use a portion of your 13th month pay to clear them. Reducing your financial obligations is a responsible step towards financial stability.
  2. Emergency Fund: Consider setting aside a portion of your 13th month pay to boost your emergency fund. This can be a financial lifesaver when unexpected expenses or emergencies arise.
  3. Investment: Explore opportunities to make your money work for you. Whether it’s investing in stocks, bonds, mutual funds, or even starting a small business, the right investment can grow your wealth over time.
  4. Self-improvement: Invest in your personal and professional growth by using a portion of your 13th month pay for education or training courses that can enhance your skills and career prospects.

What To Do When Your 13th Month Pay Is Not Enough?

With the rise of inflation and expenses, there are times when your 13th month pay may not be enough to meet your needs or goals. Thankfully, there are alternative financial solutions you can explore:

  1. Salary Advances: Salary advances, such as eSALAD, which specific employers offer, grant you early access to a portion of your upcoming salary, so you can get the financial boost you need.
  2. Side Gigs and Freelancing: Consider leveraging your skills and talents to take on freelance projects or part-time jobs to augment your finances. Numerous online platforms offer freelancing opportunities that can help you earn extra income while working from home.
  3. Budget Management: One of the most effective ways to manage your finances while waiting for your 13th month pay is to create a budget. Use your existing funds wisely, prioritize essential expenses, and cut down on non-essential spending to help keep your finances on track


Your 13th month pay can be your ticket to financial stability, and to reaching your life goals. By making smart choices, you can transform this benefit into a powerful tool for securing your financial future. Remember, it’s more than a holiday bonus – it can be your path to financial freedom.

At SB Finance, we aspire to be the launchpad for your dreams, providing caring and responsible assistance when you need it most. We’re registered with the Securities and Exchange Commission (SEC), and supervised by the Bangko Sentral ng Pilipinas (BSP), so we make sure to give you:

  • Fair Interest Rates: No excessive repayments, just reasonable rates
  • Guidance in Every Step: Dedicated customer service
  • Legal Protection: Your rights as a borrower are safeguarded by the law
  • Dependable Support: Legit loan services that are helpful, especially during financial emergencies

If you need help with your loan application, reach us via email (zuki@sbfinance.com.ph), our Customer Service hotline at (+632) 8887-9188, or our Facebook Page (@SBFinancePH).

If you want an SB Finance Goal Consultant to guide you toward achieving your financial goal, simply answer this form, and we’ll be sure to reach out to you!

Scroll to Top