13th-Month Pay After Resignation (Philippines): A Complete Legal Guide

This guide synthesizes the core rules from Presidential Decree (PD) No. 851, its implementing rules, and long-standing Department of Labor and Employment (DOLE) advisories and practice. It’s written for Philippine private-sector employment. It is general information, not legal advice.

1) What is 13th-month pay?

A mandatory benefit for rank-and-file private-sector employees.
Formula (statutory minimum): 13th-month pay = (Total basic salary earned within the calendar year) ÷ 12
Deadline for active employees: on or before 24 December of the current year. For separated employees, see §4 below (Final pay timing).

“Basic salary” excludes: overtime, premium pay, holiday pay, night shift differential, cash value of unused leaves, and most allowances/benefits (e.g., transport, meal, representation, COLA under wage orders), unless the employment contract/company policy expressly treats any of them as part of basic pay. If your contract says an item is part of the basic salary, include it.

2) Who is covered? Who is not?

Covered (statutory):

Rank-and-file employees (probationary, regular, fixed-term, project/seasonal—so long as rank-and-file).
Employees paid per piece or per task (piece-rate) are generally covered to the extent they earn a basic wage.

Commonly not covered (statutory exemptions):

Managerial employees (the law mandates coverage for rank-and-file; many employers grant managers a 13th-month or bonus by policy/contract).
Government employees (separate rules on bonuses apply in the public sector).
Domestic helpers/household workers (their benefits are governed by the Domestic Workers Act).
Workers paid purely by commission, boundary, or similar profit-sharing arrangements without a fixed basic wage (if there is a fixed wage plus commissions, the wage part is covered).

Note: Even if someone is outside statutory coverage, a company policy, CBA, or contract may grant a 13th-month or equivalent. That becomes enforceable by contract.

3) “Do I still get 13th-month pay if I resign?”

Yes, proportionately. Resignation does not forfeit 13th-month pay already earned. You are entitled to the pro-rated 13th-month pay for the period you worked during the calendar year.

Eligibility rule: You only need to have worked at least one month during the calendar year to have a pro-rated entitlement.
Separation reason doesn’t matter (resignation, end of contract, redundancy, even termination for just cause): 13th-month for services actually rendered that year remains due.

4) When must it be paid after resignation?

Your 13th-month pay is part of your final pay (a.k.a. clearance/back pay). Under DOLE practice, employers are expected to release final pay within 30 calendar days from separation, unless a shorter period is set by company policy/CBA. The 13th-month component corresponding to your year-to-date service should be included there.

Tip: The 24 December deadline applies to active employees. If you separated earlier, the final-pay timeline governs the release of your proportionate 13th-month.

5) How to compute after resignation (with examples)

General formula: Pro-rated 13th-month = (Total basic salary earned from Jan 1 up to your separation date) ÷ 12

Example A — Mid-year resignation

Separation date: 15 June
Basic salary actually earned Jan–Jun 15: ₱180,000
13th-month due = ₱180,000 ÷ 12 = ₱15,000

Example B — Hired mid-year, resigned later the same year

Employed: 1 April – 30 September
Basic salary earned during tenure: ₱240,000
13th-month due = ₱240,000 ÷ 12 = ₱20,000

Example C — Fixed wage plus commissions

Basic wage earned YTD: ₱200,000
Commissions: ₱150,000 (exclude unless contract says commissions form part of basic pay)
13th-month due = ₱200,000 ÷ 12 = ₱16,666.67

Example D — Unpaid leave or no-work-no-pay days

Absences that reduced basic salary will reduce the numerator. The benefit tracks what you actually earned as basic pay.

Example E — Maternity/SSS benefit months

SSS maternity benefit is not basic salary from the employer; months fully covered by SSS cash benefit don’t add to the numerator. If the employer tops up as basic pay per policy/contract, that top-up does count.

6) Tax treatment

13th-month pay and “other benefits” are tax-exempt up to ₱90,000 per year (TRAIN Law ceiling).
Any excess over ₱90,000 is subject to withholding tax.
If you resign mid-year, your employer should recompute your year-to-date taxes and apply the exemption properly upon release of final pay. If you have multiple employers in the same year, consolidate for your annual income tax return.

7) Deductions, offsets, and disputes

Employers may make lawful deductions (e.g., government-mandated contributions if applicable, tax, or authorized deductions like company loans you consented to in writing).
Employers may not arbitrarily withhold 13th-month to penalize you beyond lawful deductions.
Clearance procedures (return of company property, etc.) can affect timing, but cannot defeat a lawful monetary claim.

If there’s a shortfall or non-payment:

Monetary claims prescribe in 3 years from when the benefit fell due (i.e., from the final-pay due date or the 24 December deadline for active employees, as applicable).
You may: (a) write HR for computation and supporting payroll ledger; (b) file a complaint with DOLE’s Single-Entry Approach (SEnA) for mediation; or (c) pursue a money claim before the NLRC if unresolved.

8) Special employment setups

Project/seasonal employees: Entitled pro-rata based on basic pay earned during the calendar year while engaged.
Probationary employees: Covered; resignation doesn’t forfeit the pro-rated amount.
Piece-rate workers: Entitled; use piece-rate earnings that count as basic wage as the numerator.
Pure commission/boundary: Generally excluded unless there is a fixed basic wage component (compute on that wage only).
Managers/supervisors: Not mandated by PD 851, but check your contract/CBA—many employers grant a 13th-month or year-end bonus by policy (enforceable if promised).

9) Employer compliance notes (useful if you’re HR)

Reporting: Employers submit a 13th-Month Pay Report to DOLE (usually by 15 January of the following year).
Documentation: Keep payroll registers showing each separated employee’s basic salary YTD, computation sheet, and release receipt.
Policy clarity: Clearly define what items form part of basic salary in contracts/handbooks to avoid disputes.

10) Quick checklist for a resigning employee

Confirm coverage: You’re rank-and-file with basic wage? ✔️
Get the numbers: Ask HR for your YTD basic salary and a computation sheet.
Watch the timeline: Final pay (including 13th-month) should be released within ~30 calendar days from your separation, unless a shorter internal rule applies.
Review deductions & taxes: Check if any deductions are authorized and if tax was computed with the ₱90,000 exemption cap in mind.
Keep proof: Request an official payslip or voucher showing the computation and certificate of employment.

11) Frequently asked mini-Q&A

Q: I resigned in March. Do I still get anything? A: Yes. Whatever basic salary you earned from Jan 1 to your last day, divided by 12.

Q: I started in September and resigned in November. A: Still yes—pro-rated on basic salary actually earned.

Q: I’m on pure commission (no fixed wage). A: Typically not covered by PD 851. If you have a fixed wage plus commission, compute on the wage portion.

Q: Can my employer hold my 13th-month because I haven’t finished clearance? A: They can align release with final pay/clearance, but cannot forfeit a lawful entitlement or delay beyond a reasonable period (commonly up to 30 days), absent specific, valid reasons.

Q: Does COLA count? A: As a rule, COLA and most allowances are excluded from “basic salary,” unless your contract/handbook says they’re part of basic pay.

12) Practical wording you can use (employee email template)

Subject: Request for 13th-Month Pay Computation and Final Pay Release Dear [HR/Payroll], I resigned effective [date]. May I request the detailed computation and release of my final pay, including my pro-rated 13th-month pay computed as total basic salary earned YTD ÷ 12, less lawful deductions, consistent with PD 851 and DOLE issuances? Please also provide my payslip/voucher and Certificate of Employment. Thank you, [Name], [Employee No.]

Key Takeaways

Resignation does not cancel your 13th-month entitlement for the period you actually worked.
Compute: Total basic salary earned in the year up to separation ÷ 12.
Release: Included in final pay (commonly within 30 days of separation).
Tax: Exempt up to ₱90,000 (aggregate with other benefits); excess taxable.
Claims: You have 3 years to file for any underpayment.

If you want, share your dates and figures (start date, last day, monthly rate, unpaid days, allowances), and I’ll run the exact pro-rated computation for you.