I. Legal Framework of the 13th Month Pay

The 13th month pay is a statutory monetary benefit mandated under Presidential Decree No. 851 (issued December 16, 1975) and its implementing rules. The benefit has been repeatedly affirmed and clarified through subsequent Department of Labor and Employment (DOLE) issuances, particularly the Revised Guidelines on the Implementation of the 13th Month Pay Law (issued through Department Order No. 174, Series of 2017, and earlier advisories).

The core rule is simple:
Every covered employer is required to pay all rank-and-file employees who have worked for at least one (1) month during the calendar year a 13th month pay not later than December 24 of every year. The amount shall not be less than one-twelfth (1/12) of the total basic salary earned by the employee within the calendar year.

II. Covered Employees

The benefit covers all rank-and-file employees in the private sector regardless of their designation, nature of employment (regular, probationary, casual, seasonal, or project), or manner of payment of wages (monthly, daily, piece-rate, task basis), provided an employer-employee relationship exists.

Explicitly included are:

Probationary employees
Casual employees
Seasonal employees
Piece-rate or task-basis workers
Paid trainees, learners, and apprentices (when they render services and receive compensation)

Service crew members in fast-food chains, restaurants, convenience stores, and similar establishments fall squarely under the definition of rank-and-file employees and are therefore covered from the very first day they render compensated service.

III. Meaning of “Total Basic Salary Earned Within the Calendar Year”

The Supreme Court and DOLE have consistently defined “basic salary” for 13th month pay purposes as all remunerations or earnings paid by the employer for services rendered, excluding only those items that are expressly excluded by law or jurisprudence.

Included in basic salary:

Regular wage/minimum wage paid during the training period
Guaranteed allowances that have been integrated into the basic pay by company policy or CBA
Commissions that are considered part of the regular compensation (e.g., service charge distributions in restaurants when treated as part of basic pay)

Excluded:

Cost-of-living allowance (ECOLA) that was not integrated into basic pay
Purely non-guaranteed bonuses (profit-sharing, Christmas bonus, mid-year bonus)
Overtime pay, holiday pay, premium pay, night-shift differential
Cash equivalent of unused vacation/sick leave credits
Allowances that are genuinely reimbursement in nature (transportation, representation, etc.)

Crucially, any wage or allowance paid to a trainee/service crew during the training/on-boarding period is considered part of the basic salary if it is compensation for services actually rendered.

IV. Specific Rule on Training/On-the-Job Training Period of Service Crew

DOLE has issued numerous advisory opinions (particularly from the Bureau of Working Conditions and the Legal Service) consistently holding that:

The training period (commonly called OJT, crew training, store training, or familiarization period) of service crew members is included in the computation of the 13th month pay provided the trainee rendered services and received compensation therefor.

Key DOLE pronouncements:

BWC Advisory Opinion dated 28 November 1995 addressed to Jollibee Foods Corporation
→ Explicitly stated that the training period of service crew is considered part of the employment period for purposes of 13th month pay computation.
DOLE Opinion dated 15 February 2005 (re: McDonald’s Philippines)
→ Confirmed that trainees who are paid daily wages during the training period are already employees and their wages form part of the basic salary for 13th month pay.
DOLE Explanatory Bulletin No. 96-1 (1996)
→ Clarified that “trainees” who perform productive work and receive compensation are regular employees from day one, entitled to all labor standards benefits, including 13th month pay.
Numerous regional DOLE opinions (NCR, Region VII, Region IV-A) from 2008–2024 uniformly hold that fast-food crew training wages (whether paid as “training allowance,” “daily wage,” or “trainee rate”) are part of basic salary.

The rationale is straightforward:

The moment a service crew member reports for duty, wears the company uniform, serves customers, operates the cash register, or performs any productive task under the control and supervision of the employer, an employer-employee relationship is established (Article 295, Labor Code; control test).
Payment of wages (even if called “training allowance”) for services rendered makes the compensation part of the basic salary.
There is no provision in PD 851 or the Labor Code that excludes “training periods” from the computation.

V. Common Employer Practices That Violate the Law

Despite the clear DOLE position, some employers still commit the following violations:

Excluding the entire training period from the 13th month pay computation by claiming the crew is “not yet regularized.”
→ Invalid. Regularization is relevant only for security of tenure, not for monetary benefits that accrue from day one.
Treating the training allowance as a “non-basic” allowance.
→ Invalid if the allowance is the only compensation given in exchange for actual work performed.
Paying only a “training fee” or “allowance” significantly below minimum wage and then excluding it.
→ Not only violates the 13th month pay law but also the Minimum Wage Law (RA 6727 as amended).
Using a separate “training contract” that states the trainee is not entitled to 13th month pay.
→ Void. Waivers of statutory benefits are prohibited (Article 6, Labor Code).

VI. Prorated 13th Month Pay for Crew Who Resign or Are Terminated During/After Training

The 13th month pay is always prorated based on the actual basic salary earned during the calendar year. Examples:

Crew started training October 15, 2025 and was regularized December 1, 2025. Total basic salary earned (October–December): ₱45,000.
13th month pay = ₱45,000 ÷ 12 = ₱3,750.00
Crew trained only from November 1–30, 2025 and resigned December 5, 2025. Basic salary earned: ₱15,000 (training) + ₱4,000 (regular) = ₱19,000.
13th month pay = ₱19,000 ÷ 12 = ₱1,583.33
Crew trained January–March 2025, resigned April 2025. Basic salary earned January–April: ₱60,000.
13th month pay = ₱60,000 ÷ 12 = ₱5,000.00 (payable upon separation if company policy provides, or in December if still within the year)

VII. Remedies Available to Service Crew

File a complaint for non-payment/underpayment of 13th month pay at the DOLE Regional Office (Single Entry Approach or regular labor inspection).
Prescription period: three (3) years from accrual (December of the year concerned).
Claim is money claim cognizable by the NLRC if joined with illegal dismissal or other claims exceeding ₱5,000.
Criminal liability may attach under Article 288 (now Article 302) of the Labor Code for willful withholding of benefits.

VIII. Conclusion

Under Philippine labor law and consistent DOLE jurisprudence, the training period of service crew members is unequivocally included in the computation of the 13th month pay. Any wage, allowance, or compensation paid for actual services rendered during training forms part of the “total basic salary earned within the calendar year.” Employers who exclude such period commit a clear violation of Presidential Decree No. 851 and expose themselves to monetary claims, penalties, and possible criminal prosecution.

Service crew members — whether still in training, probationary, or already regularized — are entitled to this benefit from the very first day they render compensated service. The law leaves no room for exclusion based on nomenclature such as “trainee,” “OJT,” or “familiarization period.”