Inclusion of Teachers' Overload Pay in 13th Month Pay

Overload refers to teaching duties exceeding the normal teaching load prescribed by the Department of Education, Culture and Sports (DECS) or private school policies.
Regular teaching load typically takes less than eight hours, allowing time for other related tasks such as lesson planning and grading.
Additional teaching beyond the regular load is termed overload work.
Both regular teaching load and overload work may constitute a teacher’s working day.
If overload work is done within the normal eight-hour workday, compensation for it forms part of the basic salary for 13th month pay purposes.

Overload work differs from overtime:
- Overtime is work beyond eight hours daily as defined by the Labor Code.
- Overload work may be performed within or beyond the normal working hours.
Consequently, overload work may or may not constitute overtime work.

Payments earned for work performed during the normal eight-hour day, including overload compensation within this period, are considered part of the basic wage.
These payments must be included when computing the 13th month pay mandated by P.D. 851, as amended.

The guidelines are anchored on the Labor Code and relevant administrative issuances.
The Department of Labor and Employment (DOLE) clarifies that overload pay within eight hours is unquestionably part of basic pay for 13th month pay computation.
This position is to ensure fairness and conformity with existing laws governing wages and benefits of teachers.