Practical Ways to Spend Your 13th Month Pay

Dec 11, 2022

Christmas, Christmas, Christmas! This eagerly anticipated holiday is surely drawing closer. It is a joyous time of the year, not only because of the approaching festivities but also because the industrious rank-and-file laborers will soon receive their 13th-month pay and Christmas bonuses. 

Indeed, the Christmas bonus and 13th-month pay in the Philippines are the most anticipated at the end of each year. Despite the fact that exchanging presents has long been a big part of our culture's association with the month of December, this began to alter as individuals began to work. As more citizens stepped into the workforce, the terms "13th month-pay" and "Christmas bonuses" grew to be used interchangeably.

To clarify, the 13th-month pay is not synonymous with the Christmas bonus for both employers and employees. Yes, these two rewards are both monetary incentives provided by employers, but that is the only factor that they share in common.

In order to understand their differences, here is a brief summary and clear overview of the two:

13th-month Pay

To put it simply, 13th-month pay is a type of financial bonus that is equal to the basic salary a worker earns each month and is calculated pro rata based on the number of months the employee has worked for the employer in a given year. Moreover, rank-and-file or non-managerial employees are entitled to this statutory financial compensation after working for the business for at least one month. To illustrate, PD 851, a law that former and late President Ferdinand E. Marcos enacted in 1976, made the 13th-month pay official and required. According to the decree, after complying with specific standards, firms must pay their employees their 13th month's wages by December 24 of each year. 

Christmas Bonus

With Christmas bonuses, these are non-taxable monetary incentives that employers may or may not provide to employees. Unlike the mandatory 13th-month pay, this is voluntary. Additionally, employers may decide to distribute it ahead of, on, or after December 24. What is more, this is only provided by the employer purely out of goodwill and is not a highly demanded or enforceable duty.

Now that the distinctions between the two financial incentives have been addressed, here are some key tips on how to spend your money wisely received from Christmas bonuses and 13th-month pay: 

Condo Investing 2022

Do you want to expand the money that you have worked so hard for? Investing in a condominium after obtaining bonuses is a clever way on how to spend your money wisely because buying real estate is one of the best strategies to build a reliable income. The Philippines' real estate market provides you with the chance to learn about several asset types that you may buy and sell. It is a useful method for managing finances since condo investing in 2022 provides a consistent stream of income and offers a wide range of advantages, including the following: 

  • Good for long-term investments
  • Cheaper than a house to invest in
  • Convenient and luxurious for its clientele
  • Tangible and stable investment and income
  • Fewer financial risks for first-time investors

With that said, it is no longer practical to splurge on Christmas shopping this year. For instance, the rising inflation only adds to the reasons why investing in a condo is much wiser. 

Pay Debts

One of the greatest presents that you can offer yourself this Christmas season is the assurance that you owe no one any money. Your ability to enjoy a future free of debt and stress is contingent upon your capacity to pay off your debts. It is common for Filipinos to borrow money, which is why, when you have finally received your 13th-month pay in the Philippines, you should pay everyone you owe money to have the peace of mind that you need and deserve after working hard for your income.

But one may ask, when is the 13th-month pay given in the Philippines? Given that you need to pay everyone you owe money immediately in order for not only them but also you to enjoy the holidays. 

— As aforementioned, there is a decree that was enacted which states that employers must pay their employees their 13th-month pay in the Philippines BEFORE December 24th of each year. 

In light of the above, you may settle your debts before the holidays so that you and the individuals you owe money to can celebrate with debt-free certainty.

Launch or Expand a Business

If you have an entrepreneurial mindset, why not utilize your bonus from the holiday season or your 13th-month's pay to start your own small business? You may have experimented with the notion in the past, but you didn't have the necessary funds. The moment is now or never to take this action. You may launch a variety of small businesses in the Philippines with little startup money if you plan beforehand. Once you have gotten these Christmas bonuses, you should begin managing finances so that you have a reliable source of revenue to live a stable life. The following are a few ideas for small businesses: 

  • Eateries
  • Convenient store
  • Cleaning services
  • Clothing boutiques


As this article tackles most of your questions about timely bonuses like "How to spend your money wisely?", "What are the differences between a Christmas Bonus and 13th-month Pay?" or "When is the 13th-month pay given in the Philippines?" we hope that you will have a better view of how and where to spend it this Christmas. Indeed, the holiday season will have a more meaningful significance for you if you know how to spend your Christmas bonus and 13th-month pay in the Philippines carefully. Instead of just giving in to your cravings to purchase, which just provide temporary satisfaction, focus your attention on the more crucial factors that will ensure your future. This definitely includes managing finances upon receiving these incentives and investing them in real estate. With Vista Residences' beaming high-rise condos, you will undoubtedly find it convenient and wise to invest in their units. Not to mention they offer top-of-the-line amenities, and their units are spread in strategic locations nationwide. Christmas bonuses and 13th-month compensation don't happen often, and not everyone obtains them. Make the most of your 13th month or Christmas bonus now that this article teaches you how to spend it properly. 

For more information on Vista Residences, email [email protected], follow @VistaResidencesOfficial on Facebook, Twitter, Instagram, and YouTube, or call the Marketing Office at 0999 886 4262 / 0917 582 5167.    

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