In the Philippine employment landscape, the 13th Month Pay is not a discretionary bonus but a statutory mandatory benefit. A common misconception among new hires is that this benefit is reserved for regularized employees. Under Philippine law, specifically Presidential Decree No. 851 and its implementing rules, probationary employees are fully entitled to this benefit.

1. The Legal Mandate

The right to 13th month pay is governed by Presidential Decree No. 851. It requires all employers to pay their rank-and-file employees a 13th month pay, regardless of the nature of their employment, provided they have worked for at least one (1) month during the calendar year.

Coverage: Includes all rank-and-file employees.
Probationary Status: The law does not distinguish between regular, casual, or probationary employees. As long as the one-month service requirement is met, the right to the pay is vested.

2. Eligibility Criteria for Probationary Employees

To qualify for the pro-rated 13th month pay, a probationary employee must satisfy two conditions:

Rank-and-File Status: They must not be classified as "Managerial" (those who vest powers to lay down and execute management policies or hire/fire/discipline employees).
One Month of Service: The employee must have worked for at least 30 calendar days within the calendar year.

3. How to Calculate Pro-rated 13th Month Pay

The "pro-rated" nature of the pay refers to the fact that the amount is proportionate to the total basic salary earned by the employee within the calendar year.

The Formula:

(Total Basic Salary Earned During the Year) / 12 = 13th Month Pay

What is included in "Basic Salary"?

This includes all remunerations or earnings paid by an employer for services rendered.
It excludes allowances and monetary benefits which are not considered or integrated as part of the regular or basic salary, such as:
Unused vacation and sick leave credits.
Overtime pay.
Premium pay (holiday/rest day).
Night shift differential.
Cost-of-Living Allowance (COLA).

Note: If these benefits are integrated into the basic salary by individual or collective agreement, they may be included.

4. Deadlines and Payment Schedules

Under the law, the 13th month pay must be paid on or before December 24 of every year.

However, an employer may choose to give one-half of the 13th month pay before the opening of the regular school year (usually June) and the other half on or before December 24. For a probationary employee hired late in the year, the full pro-rated amount is typically settled in the December payroll.

5. Claiming 13th Month Pay Upon Resignation or Termination

If a probationary employee resigns or their employment is terminated (even if they fail to qualify for regularization) before the December deadline, they are still entitled to their pro-rated 13th month pay.

Final Pay Inclusion: The pro-rated amount should be included in the employee’s Final Pay (Backpay).
Calculation: The total basic salary earned from the start date until the last day of service is divided by 12.

6. Remedies for Non-Payment

If an employer refuses to pay the 13th month pay to a probationary employee, it is considered a labor standards violation.

SENA (Single Entry Approach): The employee can file a request for assistance with the Department of Labor and Employment (DOLE). This is a mandatory conciliation-mediation process.
Labor Case: If mediation fails, the employee may file a formal complaint for non-payment of benefits with the National Labor Relations Commission (NLRC).

Summary Table

Category	Requirement/Detail
Minimum Service	At least 1 month of work within the calendar year.
Employment Status	Probationary, Regular, and Casual are all eligible.
Standard Deadline	On or before December 24.
Computation Basis	Total Basic Salary (excluding OT, Holiday Pay, and Allowances).
Taxation	Tax-exempt if the total 13th month pay and other benefits do not exceed ₱90,000 (under the TRAIN Law).