Leaving a job shouldn’t mean leaving money on the table. If you resigned and your employer hasn’t released your 13th-month pay or final wages, this guide explains your rights, timelines, computations, and the exact steps to recover what’s due.
1) What you’re legally entitled to
A. 13th-month pay (rank-and-file, private sector)
- Who’s covered: All rank-and-file employees in the private sector regardless of position, status, or method of payment, provided they worked at least one month during the calendar year.
- Who’s generally not covered: True managerial employees; purely commission-paid workers where the commission is not part of basic pay; certain categories expressly excluded by law/regulation (e.g., some field personnel). Many employers voluntarily extend a “13th-month” or “Christmas bonus” to these groups, but that’s contractual, not statutory.
- When it’s due: Not later than December 24 each year. If you resign mid-year, you’re entitled to a pro-rated amount based on actual basic wages earned in the calendar year up to your separation date.
- What counts in the computation: Basic wage actually earned within the calendar year. Regular allowances that are not integrated into basic pay (e.g., COLA, meal/transport allowance, discretionary bonuses) are typically excluded unless a company policy or CBA says otherwise.
- Computation: [ \text{13th-month} = \frac{\text{Total basic wage earned for the year}}{12} ] Example (resignation on March 15): Monthly basic = ₱30,000; earned Jan = 30,000; Feb = 30,000; Mar half-month = 15,000 → total = ₱75,000 → 13th-month = ₱6,250.
Domestic workers (kasambahay): Covered by a separate law which also requires 13th-month pay; amount and timing are substantially similar (pay not later than December 24, pro-rated if employment didn’t span the full year).
B. Final pay (“last pay”)
Final pay is everything you’re owed on separation, typically including:
- Unpaid wages/salary up to your last day (including approved overtime/night differential/holiday pay);
- Pro-rated 13th-month pay for the year of separation;
- Cash conversion of unused Service Incentive Leave (SIL) (minimum 5 days/year) if applicable and not already used, subject to legal exemptions (e.g., certain field personnel; employees who already enjoy at least 5 days of paid vacation per company policy/CBA, etc.);
- Separation pay, only if due by law (e.g., authorized causes like retrenchment/closure, disease) or by CBA/company policy; not normally due on voluntary resignation;
- Other amounts due under contract/CBA/company policy (e.g., longevity pay, prorated bonuses that are contractual, commissions already earned);
- Tax refund (if year-to-date withholding exceeds the actual tax due); and
- Other recoverables (e.g., returned deposits deducted in error).
When it’s due: As a general policy guidance, employers are expected to release final pay within 30 days from the date of separation, unless a more favorable company policy/CBA prescribes an earlier release.
C. Certificate of Employment (COE)
Upon request, your employer should issue a COE indicating your employment dates and position. This is separate from pay but often useful for future work and claims.
2) Taxes and government deductions
- 13th-month & “other benefits” tax cap: The 13th-month pay and certain other benefits are tax-exempt up to ₱90,000 in a year. Any excess over ₱90,000 is taxable.
- Withholding tax on wages: Your final payroll should reflect correct withholding, and any over-withholding should be refunded in your final pay or in the annual adjustment.
- SSS/PhilHealth/HDMF: Statutory contributions apply to wages, not to the 13th-month itself; verify your stub for proper postings.
3) Lawful deductions (what your employer may withhold)
An employer may deduct from wages only if authorized by law, regulation, or written employee consent, such as:
- Legally permitted deductions (tax, SSS/PhilHealth/HDMF);
- Authorized deductions with your written consent (e.g., salary loans);
- Deductions for loss or damage only after due process (employee is clearly at fault/negligent, employee is given a chance to be heard, and the amount is reasonable and not greater than actual loss); and
- Court-ordered garnishments.
Unreturned company property (laptop, ID, tools) may justify withholding equivalent amounts, but the employer must follow due process and be reasonable. Wholesale non-release of all wages due is unlawful—only the equivalent value may be withheld, and only if properly established.
4) Practical checklist before you file a claim
Gather proof of employment & pay:
- Employment contract/offer letter; company handbook/policies; CBA (if any)
- Payslips, payroll summaries, bank credit advices
- Time records, approved OT/holiday forms
- Resignation letter & employer’s acceptance; clearance forms/emails
- Any written computation of final pay (even if you dispute it)
Compute your claim:
- Do the pro-rated 13th-month computation based on basic wages earned year-to-date.
- Itemize unpaid wages (include OT, night diff, holiday pay) and SIL conversions if applicable.
- Note any authorized deductions and dispute any unauthorized ones.
Send a formal demand letter to HR/Payroll:
- State items and amounts due, attach your computations, and set a reasonable deadline (e.g., 5–10 business days).
- Request a written breakdown of any deductions.
Prepare your evidence file: Keep everything in a single PDF or envelope; label exhibits for quick reference.
5) Where and how to file if your employer still won’t pay
Step 1: SEnA (Single Entry Approach) – mandatory conciliation/mediation
- File a Request for Assistance (RFA) with the nearest DOLE Regional/Field Office (you can file where you worked or where the employer is located).
- SEnA aims to resolve issues within a short conciliation period (typically up to 30 calendar days from initial conference).
- Bring your ID, RFA, computations, and supporting documents. You can authorize a representative with a SPA (special power of attorney) if you can’t attend.
Outcomes:
- Employer pays; or
- Parties agree on terms; or
- Referral/endorsement for enforcement or formal complaint if unresolved.
Step 2A: DOLE Regional Office (labor standards enforcement)
- For clear violations of labor standards (e.g., non-payment of wages/13th-month), DOLE may conduct inspections or issue compliance orders. This route is useful where the matter is straightforward and documentary.
Step 2B: NLRC (Labor Arbiter) – money claims/contested issues
- If settlement fails or issues are contested/complex (e.g., employer disputes coverage, deductions, status), file a complaint with the NLRC.
- The Labor Arbiter hears money claims and may award legal interest and attorney’s fees (typically up to 10% of the monetary award) where justified.
Which route? You usually start with SEnA, then proceed based on the case posture: enforcement via DOLE or adjudication via NLRC.
6) Deadlines (prescriptive periods)
Money claims under the Labor Code (e.g., unpaid 13th-month, wages, SIL conversion): 3 years from when the cause of action accrues.
- For 13th-month: accrues on non-payment by Dec 24 (or on your separation date if you resigned earlier).
- For last pay items: accrues on the date they should have been released (commonly within 30 days from separation, unless an earlier release is mandated by policy/CBA).
Filing within these periods stops your claim from prescribing.
7) Sample computations
A. Pro-rated 13th-month (resigned June 30)
- Monthly basic: ₱20,000
- Earned Jan–Jun = 6 × 20,000 = ₱120,000
- 13th-month = 120,000 ÷ 12 = ₱10,000
B. With irregular earnings
- Jan–Mar basic earned = ₱75,000; Apr–May unpaid; Jun basic earned = ₱10,000
- Total earned = ₱85,000 → 13th-month = ₱7,083.33
- Note: Only basic wage actually earned is counted; unpaid months (if truly no basic wage earned) don’t add to the numerator.
C. Final pay illustration (resigned Sept 10)
- Unpaid salary: Sept 1–10 (10/30 of ₱30,000) = ₱10,000
- Pro-rated 13th-month (Jan–Sept 10 basic earned = ₱250,000) → 250,000/12 = ₱20,833.33
- Unused SIL: 3 days × ₱1,363.64/day (₱30,000 ÷ 22 working days) = ₱4,090.92
- Less authorized deduction (employee-consented loan): ₱2,000
- Estimated final pay: ₱10,000 + ₱20,833.33 + ₱4,090.92 − ₱2,000 = ₱32,924.25 (before tax review)
8) What to do about common employer defenses
“You’re on pure commission/managerial.”
- Verify your true classification. Titles don’t control—actual duties and pay structure do. If your commissions are integrated into basic pay or you’re effectively rank-and-file, you may still be covered.
“We’re withholding everything pending clearance.”
- Clearance can justify reasonable, properly supported deductions (e.g., unreturned laptop), not a blanket refusal to pay. Demand an itemized deduction basis and release of the undisputed balance.
“You resigned, so no 13th-month.”
- Resignation does not forfeit your pro-rated 13th-month. The obligation is tied to wages earned, not continued employment to December.
“Budget constraints / cash flow.”
- Financial difficulty doesn’t excuse non-payment of statutory benefits. Pursue SEnA/DOLE/NLRC.
9) How to write your demand letter (short template)
Subject: Demand for Release of Final Pay and Pro-Rated 13th-Month Pay Date: ______ To: HR/Payroll, [Company]
I resigned effective [date]. As of today, the following statutory/contractual amounts remain unpaid: (1) Wages for [dates] ₱; (2) Pro-rated 13th-month ₱; (3) SIL conversion ₱; (4) Tax refund ₱; (5) Others: ___.
Kindly release these within five (5) business days and provide an itemized computation and lawful basis for any deductions. Otherwise, I will seek assistance via SEnA/DOLE and, if necessary, file a formal money claim.
Sincerely, [Name] [Contact details]
10) Filing roadmap (at a glance)
- Compute & demand in writing → keep proof of service.
- SEnA (DOLE) RFA → attend conferences; settle if possible.
- DOLE enforcement (for straightforward standards violations) or NLRC (for contested money claims/coverage issues).
- Execution of settlement/decision; monitor legal interest and attorney’s fees if awarded.
11) Quick FAQ
Q: I resigned on January 5. Do I still get 13th-month? A: Yes, if you earned basic wages in that calendar year (even just a few days). It will be tiny but still due.
Q: Can my employer deduct the cost of my unreturned uniform? A: Potentially yes, if they can prove loss, follow due process, and the amount is reasonable. They cannot forfeit all your final pay without a proper basis.
Q: How long should I wait before filing? A: After your written demand and a short grace period, go to SEnA. Don’t risk prescription: labor money claims generally prescribe in 3 years.
Q: Is “Christmas bonus” the same as 13th-month? A: Not necessarily. 13th-month is statutory; a “Christmas bonus” is contractual/discretionary unless the policy/CBA makes it demandable.
12) Pro tips to strengthen your claim
- Bring a clean, simple spreadsheet of your computations to SEnA.
- Highlight only statutory items (wages, 13th-month, SIL) to make settlement easier; you can reserve disputed items for NLRC if needed.
- Always ask for a written breakdown from HR; silence or vague replies help establish your good-faith attempts to settle.
- If you’re part of a group with the same issue, file together—it increases scrutiny and can lead to faster compliance.
Final Note
This guide summarizes prevailing rules and common procedures for unpaid 13th-month pay and final wages after resignation in the Philippines. Specifics can vary by employment status, industry rules, CBAs, and updated DOLE issuances. When in doubt—especially for gray areas like managerial status or commission-based pay—seek tailored legal advice or consult the nearest DOLE office.