Entitlement to Final Pay and 13th-Month Pay When Resigning During (or Right After) Maternity Leave — Philippines

This explainer pulls together the key rules from Philippine labor and social-security law, plus common HR practice, to help employees and employers handle resignations that overlap with maternity leave.

1) The Legal Foundations (What governs what)

Maternity leave: Republic Act No. 11210 (Expanded Maternity Leave Law, “EMLL”) and its IRR; for private sector employees, SSS pays the maternity benefit and the employer advances it (then seeks reimbursement). Many employers must also pay a salary differential so the worker receives “full pay,” subject to limited exemptions under the IRR.
13th-month pay: Presidential Decree No. 851 and rules: mandatory for all rank-and-file employees regardless of salary level, computed as 1/12 of the basic salary earned within the calendar year. Managerial employees are not covered by the law, though many companies grant an equivalent as a benefit.
Final pay & documentation: DOLE guidance requires release of final pay within 30 days from separation (unless a faster timeline is set by policy/CBA) and issuance of a Certificate of Employment (COE) upon request.
Resignations: Article 300 [formerly 285] of the Labor Code: the employee generally gives 30 days’ notice unless covered by just causes for immediate resignation. Resignation does not forfeit statutory benefits already earned or due.

2) What counts as “final pay” if you resign while on maternity leave?

Final pay is the net amount an employee must receive upon separation. When the resignation occurs during maternity leave or effective on/after the leave, the usual components are:

Unpaid regular wages
- Any salary for work actually performed up to the last day worked before your leave started, and any payable amounts if you returned to work before separation.
Maternity-related amounts
- SSS maternity benefit (105/120 days): This is your entitlement if you qualified. It is not lost by resignation. The employer typically advances the full benefit and then recoups from SSS; your resignation does not cancel your maternity benefit.
- Salary differential (if the employer is not exempt): This tops up the SSS benefit so you receive “full pay.” The differential is part of compensation paid by the employer.
Pro-rated 13th-month pay (see Section 3)
- Payable upon separation for rank-and-file, based on basic salary actually earned during the year up to your separation date.
Monetization of unused Service Incentive Leave (SIL)
- The Labor Code’s 5-day SIL is commutable to cash if unused by year-end or upon separation. If your company grants more than 5 days by policy, follow policy/CBA.
Other earned but unpaid benefits
- e.g., holiday premium, night shift differential, overtime, commission or incentives already earned under the plan rules, and prorated allowances if policy says they are earned over time.
13th-month and other benefits tax rules
- The aggregate of 13th-month and “other benefits” is tax-exempt up to ₱90,000 in a calendar year; excess is taxable.
- SSS maternity benefit is not subject to income tax. Salary differential is taxable compensation.
Government deductions
- Withholdings (tax), SSS/PhilHealth/HDMF only on amounts legally considered “compensation.” No contributions are taken from the SSS maternity benefit itself.
Authorized offsets only
- Employers may deduct lawful, authorized amounts (e.g., company loan with written authorization; unreturned company property valued per policy). Illegal or punitive deductions expose the employer to claims.

Separation pay? Not due on resignation, unless the contract/CBA or a company plan grants it. (Separation pay is a security-of-tenure remedy for authorized causes like redundancy, closure, etc.)

3) The 13th-Month Pay When You’ve Been on Maternity Leave

How it’s computed

Formula (rank-and-file): 13th-month = (Total basic salary actually earned in the year) ÷ 12.
“Basic salary” excludes items like overtime, premium pay, allowances, leave conversions, and similar payments unless policy/CBA expressly treats them as part of basic pay.

Does the maternity period “count”?

Amounts paid by SSS as maternity benefit are not “basic salary” and therefore do not increase the 13th-month base.
Salary differential (paid by the employer to complete “full pay”) is commonly treated as compensation—and, where it is classified by the employer as basic pay for the leave period, it increases the 13th-month base. If the employer classifies it as a separate non-basic component, it may be excluded. Check the company pay policy and payroll setup; in disputes, labor authorities look at substance (is it replacing basic salary for that period?) over labels.

Practical outcomes

If you were on maternity leave for, say, April–July, and you did not work then:
- SSS benefit for those months does not add to 13th-month.
- Employer salary differential, if treated as basic pay, can add to your 13th-month; if not, it won’t.
Whether you resign during the leave or after you return, your 13th-month is still pro-rated based on basic salary actually earned up to your separation date.

Timing of payment upon separation

The pro-rated 13th-month is due at or before final settlement (not later than the standard final-pay timeline).

4) Resigning While on Maternity Leave: What changes and what doesn’t

You retain the maternity benefit once qualified and filed correctly. Resignation does not cancel it.
You may resign during leave; your effective separation date controls what’s “earned.”
No forfeiture of accrued rights: earned wages, earned leave conversions, and pro-rated 13th-month remain due.
Employer reimbursements (from SSS) are an employer–SSS matter; they do not reduce your lawful entitlements.
Notice: The 30-day notice rule still applies to resignations, but it is often academic if your effective date falls at/after the end of leave and your employer waives the balance of notice.

5) Worked Example (Private-Sector, Rank-and-File)

Facts

Monthly basic salary: ₱30,000
Maternity leave: April 10 to July 23 (105 days; solo parent adds 15 days)
Resignation effective: August 15
Employer pays salary differential and classifies it as basic pay replacement
Unused SIL: 5 days
No commissions/OT; standard benefits only.

Computation sketch

Unpaid regular wages:
- Mar 31 payroll paid; Apr 1–9 wages due; Aug 1–15 wages due.
Maternity:
- SSS maternity benefit (tax-exempt): paid/advanced per SSS computation.
- Salary differential (taxable): paid by employer for April 10–July 23; here treated as part of basic salary.
Pro-rated 13th-month (Jan 1–Aug 15):
- Basic salary actually earned =
  - Jan–Mar: 3 × ₱30,000 = ₱90,000
  - Apr–Jul: include salary differential (treated as basic pay here) = ~3.47 months ≈ ₱104,100
  - Aug 1–15: ~0.5 month ≈ ₱15,000
  - Total base ≈ ₱209,100 → 13th-month ≈ ₱17,425
- If the salary differential were not treated as basic salary, the base would exclude ~~₱104,100, and the 13th-month would be much lower (~~₱8,675).
- Employer policy/payroll classification determines which scenario applies.
SIL conversion:
- 5 days × (₱30,000 ÷ 26) ≈ ₱5,769 (using the common 26-day divisor unless policy/CBA sets a different divisor).
Taxes & contributions
- 13th-month is part of the ₱90,000 tax-exempt basket (with other benefits).
- SSS maternity: not taxable and no contributions withheld.
- Salary differential: taxable as compensation; withhold tax accordingly.

Note: Figures above are illustrative. Always apply your company’s actual payroll calendar, divisor, and classification rules; then reconcile with statutory definitions.

6) Common Pain Points (and how to avoid them)

Misclassifying salary differential: Decide and document whether it’s treated as basic salary replacement (then it likely affects 13th-month) or as a separate non-basic item. Be consistent.
Delays: Track SSS reimbursement separately; do not delay the employee’s final pay waiting for SSS funds.
Improper deductions: Only deduct with legal basis and written authorization.
Missed SIL monetization: Include pro-rated or full SIL conversion as your policy/IRR requires.
Managerial vs. rank-and-file: PD 851 covers rank-and-file only. If you give 13th-month to managerial staff by policy, follow the policy’s computation and payout rules.

7) Employer Checklist (Resignation During/After Maternity Leave)

Acknowledge resignation and set effective date.
Confirm SSS filings: eligibility, notification, and reimbursement timeline; compute any salary differential (or document exemption).
Compute final pay: wages to last day worked, maternity-related amounts, pro-rated 13th-month, SIL monetization, other earned benefits.
Apply correct tax treatment: maternity (non-tax), differential (taxable), 13th-month (within ₱90k exemption).
Clearance: inventory of company property; ensure authorized offsets only.
Release final pay within 30 days; issue COE promptly; furnish payslip/statement showing components.
Document decisions on edge issues (e.g., salary differential treatment) to reduce disputes.

8) Employee Pointers

File your SSS maternity documents correctly and on time; keep copies.
Ask HR how your company classifies salary differential for 13th-month purposes.
Request your COE and final-pay breakdown in writing.
Check your SIL balance and any incentive plans for prorating rules.
Review tax treatment: 13th-month/other benefits may be tax-free up to ₱90,000; SSS maternity is not taxable.

9) FAQs

Q: If I resign in the middle of my maternity leave, can the company cancel my benefit? A: No. If you met SSS/EMLL requirements, the maternity benefit remains due. Your employer may still recover the SSS portion from SSS; that’s separate from your entitlement.

Q: Do I still get a 13th-month even if I didn’t “work” during maternity leave? A: Yes, but pro-rated based on basic salary actually earned in the year. The SSS benefit itself doesn’t count as basic salary; salary differential may, depending on how your employer classifies it and on the substance of the payment.

Q: I’m a manager—am I covered by the 13th-month law? A: No. PD 851 covers rank-and-file. If your employer grants a 13th-month equivalent by policy/contract, your entitlement follows that policy.

Q: Can my employer deduct the value of a laptop I forgot to return? A: Only if deductions are lawful and authorized, and the valuation follows policy. Otherwise, it risks being an illegal deduction.

10) Bottom Line

Maternity benefits are protected and generally survive resignation.
Final pay must include all earned components (wages, prorated 13th-month, SIL, etc.), with correct tax treatment.
For 13th-month, exclude SSS maternity benefit from the base; include employer-paid differential if it functionally replaces basic pay for the leave period under your company’s rules.
Employers should settle within 30 days, issue the COE, and provide a clear breakdown to avoid disputes.

When in doubt, document classifications, follow your written policies/CBA, and align payroll treatment with the statutory definitions above.