Introduction

In the Philippines, the 13th month pay is a mandatory statutory benefit granted to rank-and-file employees. It is not a bonus in the ordinary discretionary sense. It is a legal obligation imposed on covered employers.

A common question is whether probationary employees are entitled to 13th month pay, especially when they have not yet completed six months of service, were terminated before regularization, resigned during the year, or started employment late in the calendar year.

The rule is straightforward: probationary employees are generally entitled to pro-rated 13th month pay if they are rank-and-file employees and have worked for at least one month during the calendar year.

Their probationary status does not disqualify them. The benefit is based on actual basic salary earned during the calendar year, not on whether the employee has already become regular.

I. Legal Basis of 13th Month Pay

The main legal basis for 13th month pay is Presidential Decree No. 851, as amended and implemented by labor regulations.

The law requires covered employers to pay their rank-and-file employees a 13th month pay. The benefit is intended to give workers additional income at the end of the year and to help them meet holiday and family expenses.

Although commonly associated with December, the entitlement accrues based on service and basic salary during the calendar year.

II. What Is 13th Month Pay?

The 13th month pay is a monetary benefit equivalent to at least one-twelfth of the employee’s total basic salary earned within the calendar year.

The basic formula is:

13th month pay = Total basic salary earned during the calendar year ÷ 12

This formula automatically results in a pro-rated amount when the employee worked for only part of the year.

For example, if an employee earned ₱120,000 in basic salary from January to December, the 13th month pay is:

₱120,000 ÷ 12 = ₱10,000

If the employee earned only ₱60,000 because they worked for only part of the year, the 13th month pay is:

₱60,000 ÷ 12 = ₱5,000

III. Are Probationary Employees Entitled to 13th Month Pay?

Yes. A probationary employee is still an employee.

A probationary employee may not yet have permanent regular status, but they are already part of the employer’s workforce. They perform work, receive wages, and are covered by labor standards unless specifically excluded by law.

As long as the probationary employee is:

a rank-and-file employee; and
has worked for at least one month during the calendar year;

the employee is generally entitled to 13th month pay.

The employer cannot deny the benefit simply because the employee is “probationary,” “newly hired,” “not yet regular,” “under evaluation,” or “failed probation.”

IV. Meaning of Pro-Rated 13th Month Pay

“Pro-rated” means proportionate to the salary actually earned during the year.

A probationary employee who did not work the full calendar year does not receive a full 13th month pay equal to one full monthly salary, unless the total basic salary earned during the year supports that amount.

Instead, the employee receives the equivalent of one-twelfth of the basic salary actually earned.

This applies to employees who:

were hired mid-year;
resigned before year-end;
were terminated before regularization;
were dismissed after due process;
failed probationary evaluation;
were employed for only a few months;
were on unpaid leave for part of the year;
had absences without pay;
worked part-time or on reduced basic salary.

V. Who Are Covered Employees?

The general rule is that rank-and-file employees are entitled to 13th month pay, regardless of:

designation;
employment status;
method of wage payment;
probationary status;
regular status;
fixed-term status;
project employment, if covered;
seasonal employment, if covered;
part-time work, if covered.

The key question is whether the employee is rank-and-file and whether they earned basic salary during the year.

VI. Rank-and-File vs. Managerial Employees

The 13th month pay law covers rank-and-file employees.

A managerial employee is generally one who has authority to lay down and execute management policies, or to hire, transfer, suspend, lay off, recall, discharge, assign, or discipline employees, or effectively recommend such actions.

A rank-and-file employee is one who is not managerial.

Many employees with titles such as “supervisor,” “team lead,” “officer,” “coordinator,” or “manager” may still be rank-and-file for purposes of labor standards if they do not actually exercise managerial powers.

The job title is not controlling. Actual duties matter.

VII. Probationary Status Does Not Remove Labor Standards Rights

A probationary employee has security of tenure during the probationary period. They may be terminated only for:

just cause;
authorized cause; or
failure to meet reasonable standards made known at the time of engagement.

While employed, probationary employees are entitled to basic labor standards, including:

minimum wage;
overtime pay, if applicable;
holiday pay, if applicable;
rest day pay, if applicable;
night shift differential, if applicable;
service incentive leave, if qualified;
SSS, PhilHealth, and Pag-IBIG coverage;
13th month pay, if covered;
final pay upon separation.

The probationary label does not permit the employer to withhold statutory benefits.

VIII. Minimum Service Requirement

Employees who have worked for at least one month during the calendar year are generally entitled to 13th month pay.

This means a probationary employee who worked only two, three, four, or five months may still be entitled to pro-rated 13th month pay.

The phrase “worked for at least one month” is usually understood in relation to actual service and salary earned during the calendar year.

For employees who worked less than one month, entitlement may be disputed depending on payroll treatment, company policy, contract, or more favorable practice.

IX. Computation of Pro-Rated 13th Month Pay

The general formula is:

Total basic salary earned during the calendar year ÷ 12

Example 1: Probationary employee hired on January 1 and regularized on July 1

Monthly basic salary: ₱18,000 Total basic salary from January to December: ₱216,000

13th month pay:

₱216,000 ÷ 12 = ₱18,000

Even though the employee was probationary for the first six months, the whole year’s basic salary is counted.

Example 2: Probationary employee hired on July 1

Monthly basic salary: ₱18,000 Basic salary earned from July to December: ₱108,000

13th month pay:

₱108,000 ÷ 12 = ₱9,000

The employee gets a pro-rated 13th month pay equivalent to half a month’s salary because they worked half the year.

Example 3: Probationary employee resigned after three months

Monthly basic salary: ₱20,000 Basic salary earned for three months: ₱60,000

13th month pay:

₱60,000 ÷ 12 = ₱5,000

The employee is entitled to pro-rated 13th month pay as part of final pay.

Example 4: Probationary employee terminated after five months

Monthly basic salary: ₱25,000 Basic salary earned for five months: ₱125,000

13th month pay:

₱125,000 ÷ 12 = ₱10,416.67

The fact that the employee failed probation does not erase the benefit already earned.

Example 5: Probationary employee with absences without pay

Monthly basic salary: ₱18,000 Total basic salary actually earned during employment: ₱80,000

13th month pay:

₱80,000 ÷ 12 = ₱6,666.67

Absences without pay reduce the basic salary earned and therefore reduce the 13th month pay.

X. What Is Included in “Basic Salary”?

For 13th month pay purposes, the computation is generally based on basic salary earned.

Basic salary usually includes the regular compensation paid for services rendered, excluding certain additional payments.

It generally does not include:

overtime pay;
holiday pay premiums;
night shift differential;
rest day premium;
commissions, depending on nature;
allowances not considered part of basic salary;
profit-sharing payments;
cash equivalent of unused leave credits;
service charges;
bonuses not integrated into salary;
other non-basic wage supplements.

However, if an amount is treated as part of basic salary by contract, company policy, collective bargaining agreement, or consistent practice, it may be included.

XI. Are Allowances Included?

Allowances are generally excluded if they are not part of basic salary.

Examples may include:

transportation allowance;
meal allowance;
communication allowance;
clothing allowance;
representation allowance;
gasoline allowance;
internet allowance;
de minimis benefits.

However, an allowance may be included if it is actually part of the employee’s regular basic compensation, not merely a reimbursement or separate benefit.

The label is not always controlling. The nature of the payment matters.

XII. Are Commissions Included?

Commissions can be tricky.

If commissions are productivity-based or sales incentives separate from basic salary, they may be excluded from the 13th month pay computation.

However, if commissions are the employee’s primary compensation or are integrated into wage structure in a way treated as basic pay, they may be included depending on the arrangement and applicable jurisprudence.

For probationary sales employees, the employment contract, payslips, payroll structure, and company practice should be reviewed.

XIII. Are Bonuses Included?

Ordinary bonuses are generally not included in computing 13th month pay if they are discretionary, productivity-based, profit-based, or separate from basic salary.

A 13th month pay is mandatory. A bonus is usually voluntary unless it has become demandable through contract, policy, CBA, or long-established company practice.

Employers should not label basic salary as “bonus” to reduce 13th month pay.

XIV. Is Overtime Pay Included?

No. Overtime pay is generally not part of the basic salary for 13th month pay computation.

The 13th month pay is based on basic salary, not total gross pay.

XV. Is Night Shift Differential Included?

Night shift differential is generally excluded because it is a premium or additional compensation, not basic salary.

XVI. Is Holiday Pay Included?

Regular holiday pay can be more complicated depending on payroll structure, but holiday premium pay and additional holiday compensation are generally not included as basic salary for 13th month computation.

If the employee’s monthly basic salary is paid regardless of holidays, the monthly basic salary is counted as usual.

XVII. Is Service Incentive Leave Conversion Included?

The cash equivalent of unused service incentive leave is generally not included in computing 13th month pay because it is not basic salary for work actually rendered during the period.

XVIII. Are Maternity Leave, Paternity Leave, or Other Leave Benefits Included?

The 13th month pay computation depends on basic salary actually earned from the employer during the calendar year.

Paid leaves that are treated as paid salary may be included because the employee received basic pay. Unpaid leaves generally reduce the basic salary earned.

For maternity leave, the treatment may depend on whether the employee received salary from the employer, statutory maternity benefit through social security mechanisms, salary differential, or company-paid benefits.

Employers should compute carefully and avoid reducing statutory benefits unlawfully.

XIX. Pro-Rated 13th Month Pay Upon Resignation

A probationary employee who resigns before December is generally entitled to pro-rated 13th month pay as part of final pay.

Example:

Employee hired March 1, resigned August 31. Monthly basic salary: ₱22,000. Basic salary earned for six months: ₱132,000.

13th month pay:

₱132,000 ÷ 12 = ₱11,000

The employer cannot say, “13th month pay is only for employees who are still employed in December,” because the benefit is earned proportionately during the year.

XX. Pro-Rated 13th Month Pay Upon Termination

If a probationary employee is terminated before regularization, they are still entitled to 13th month pay based on salary earned before termination.

This applies whether the termination was due to:

failure to meet probationary standards;
just cause;
authorized cause;
resignation;
end of fixed-term arrangement, if covered;
company closure;
redundancy;
retrenchment.

Even an employee dismissed for cause may still be entitled to earned statutory benefits, unless there is a lawful basis for deduction or forfeiture.

XXI. Does Failure to Regularize Cancel 13th Month Pay?

No.

Failure to qualify as a regular employee does not cancel earned wages and statutory benefits.

An employer may lawfully end probationary employment if the employee failed to meet reasonable standards made known at hiring, but the employer must still pay earned compensation, including pro-rated 13th month pay.

XXII. Can an Employer Require Completion of Six Months Before Paying 13th Month Pay?

Generally, no.

The law does not require completion of the probationary period as a condition for 13th month pay. The usual minimum is at least one month of work during the calendar year for covered employees.

A company policy saying “only regular employees are entitled to 13th month pay” would generally be invalid if it deprives covered rank-and-file probationary employees of the statutory benefit.

The employer may give additional bonuses only to regular employees, but it cannot deny mandatory 13th month pay to covered probationary employees.

XXIII. Can Company Policy Give More Than the Law?

Yes.

An employer may provide more generous benefits, such as:

full 13th month pay even for employees hired mid-year;
14th month pay;
Christmas bonus;
inclusion of allowances in computation;
payment earlier than required;
no minimum one-month service rule;
more favorable pro-rating formula.

Labor law sets the minimum. Company policy, employment contract, CBA, or practice may provide better benefits.

XXIV. Can Company Policy Give Less Than the Law?

No.

A company policy cannot validly reduce or remove statutory 13th month pay for covered employees.

Examples of invalid or questionable policies:

“Probationary employees are not entitled to 13th month pay.”
“Only employees regularized by December are entitled.”
“Resigned employees forfeit 13th month pay.”
“Terminated probationary employees receive no 13th month.”
“13th month is discretionary.”
“Employees must have perfect attendance to receive 13th month pay.”

A policy may regulate processing and documentation, but it cannot defeat the legal entitlement.

XXV. When Should 13th Month Pay Be Paid?

The 13th month pay is generally paid not later than December 24 of every year.

Employers may pay it earlier or in installments, such as half before the school year and half in December, if allowed by policy or practice, provided full payment is made by the required deadline.

For separated employees, the pro-rated 13th month pay is usually paid as part of final pay.

XXVI. Final Pay and 13th Month Pay

When a probationary employee resigns, is terminated, or otherwise separates from employment, the employer should include pro-rated 13th month pay in the final pay computation.

Final pay may include:

unpaid salary;
pro-rated 13th month pay;
unused leave conversion, if applicable;
commissions or incentives already earned;
reimbursement due to employee;
tax refund, if applicable;
other benefits due under contract, policy, or law.

The employer should provide a clear computation.

XXVII. Can the Employer Withhold 13th Month Pay Pending Clearance?

Employers often require clearance before releasing final pay. Clearance may be used to account for company property, cash advances, documents, equipment, uniforms, laptops, phones, IDs, or other accountabilities.

However, clearance should not be used to indefinitely withhold statutory benefits.

If there are lawful accountabilities, deductions must be valid, documented, authorized by law or agreement, and not contrary to labor standards.

An employer should not use clearance as punishment or leverage to avoid paying 13th month pay.

XXVIII. Can the Employer Deduct Loans or Accountabilities from 13th Month Pay?

Deductions may be allowed only if legally valid.

Examples may include:

documented salary loans;
cash advances;
unreturned company property with proper valuation;
authorized deductions;
amounts covered by written agreement;
lawful tax or statutory deductions, if applicable.

But deductions cannot be arbitrary. The employer should show the basis, computation, and authorization.

The employee may dispute unlawful or excessive deductions.

XXIX. Tax Treatment of 13th Month Pay

13th month pay and certain other benefits enjoy tax-exempt treatment up to the statutory exclusion threshold. Amounts beyond the threshold may be taxable.

For most ordinary employees receiving only the statutory 13th month pay, tax may not be an issue if the amount falls within the exemption.

Employers should apply the correct tax rules and reflect the benefit properly in payroll records.

XXX. Probationary Employees Paid Daily Wage

A daily-paid probationary employee is still entitled to 13th month pay if covered.

Formula:

Total basic daily wages earned during the calendar year ÷ 12

Example:

Daily wage: ₱610 Days actually worked during probationary employment: 90 days Total basic salary: ₱54,900

13th month pay:

₱54,900 ÷ 12 = ₱4,575

Only actual basic wages earned are counted.

XXXI. Probationary Employees Paid Monthly Salary

For monthly-paid employees, the computation is based on total basic monthly salary earned during the year.

Example:

Monthly basic salary: ₱30,000 Employee worked four months. Total basic salary: ₱120,000

13th month pay:

₱120,000 ÷ 12 = ₱10,000

XXXII. Part-Time Probationary Employees

Part-time probationary employees may also be entitled to 13th month pay if they are covered rank-and-file employees.

Their 13th month pay is based on actual basic salary earned.

Example:

Part-time probationary employee earns ₱8,000 per month and works for five months. Total basic salary: ₱40,000.

13th month pay:

₱40,000 ÷ 12 = ₱3,333.33

Part-time status does not automatically disqualify an employee.

XXXIII. Probationary Employees with Irregular Schedules

If the employee has varying workdays or hours, the computation should be based on actual basic pay earned during the calendar year.

Payroll records are important.

The employer should not guess or use a formula that undercounts actual earned basic wages.

XXXIV. Probationary Employees on No-Work-No-Pay Arrangement

For no-work-no-pay employees, only basic salary actually earned is included.

Unworked and unpaid days do not form part of the basic salary for 13th month pay.

This results in a lower pro-rated amount, but not because the employee is probationary. It is because the employee earned less basic salary.

XXXV. Probationary Employees in BPOs and Private Companies

In BPOs and private companies, probationary employees are commonly hired for six months. They may resign, fail training, be dismissed during nesting, or be regularized after evaluation.

Regardless of these stages, if they are rank-and-file and worked for at least one month, they are generally entitled to pro-rated 13th month pay.

BPO employers should include the benefit in final pay for employees who separate before December.

XXXVI. Probationary Employees in Retail, Restaurants, and Service Establishments

Probationary employees in malls, restaurants, hotels, groceries, service outlets, and similar businesses are also generally covered.

Employers cannot avoid payment by calling them:

trainee;
probationary crew;
reliever;
seasonal probationary;
apprentice, unless a lawful apprenticeship applies;
project-based, if misclassified;
contractual, if actually employees.

The real nature of the employment relationship matters.

XXXVII. Probationary Employees in Schools

Private school employees may have particular employment arrangements depending on academic or non-academic status.

Rank-and-file probationary school employees are generally covered by 13th month pay rules unless excluded by law or covered by a more specific benefit structure.

Teachers, administrative staff, clerks, maintenance workers, and other employees may have different employment terms, but probationary status alone does not remove statutory benefits.

XXXVIII. Probationary Employees in Household Service

Domestic workers, or kasambahays, are governed by special law. They are generally entitled to 13th month pay under the Kasambahay Law.

If a domestic worker is under a trial or probation-like arrangement, the employer should still observe applicable kasambahay rights.

XXXIX. Government Employees

The private-sector 13th month pay law is different from the compensation system for government employees.

Government workers may receive year-end bonuses, cash gifts, or other benefits under civil service, budget, and compensation rules.

A government worker’s entitlement should be analyzed under government compensation law, not simply under the private-sector 13th month pay framework.

XL. Employees Not Covered or Exempt Employers

Some employers or workers may be excluded from the private-sector 13th month pay requirement depending on law and regulations.

Historically recognized exclusions have included certain government employers, certain household employers under older rules, and workers paid purely on commission, boundary, or task basis in particular contexts.

However, exclusions are narrowly applied, and many workers once thought excluded may now be protected under later laws or specific rules.

Employers should be careful before claiming exemption.

XLI. Probationary Employee vs. Trainee

Some employers call new workers “trainees” to avoid paying benefits.

A genuine trainee may be undergoing training without an employment relationship in limited situations. But if the person performs work for the business, follows schedules, receives pay, and is controlled by the employer, they may be an employee regardless of the label.

If the trainee is actually a probationary employee, they may be entitled to 13th month pay.

XLII. Apprentices and Learners

Apprenticeship and learnership are special arrangements regulated by labor law.

If a person is a valid apprentice or learner under the law, specific rules may apply.

However, employers cannot simply label ordinary probationary workers as apprentices or learners to avoid labor standards. The arrangement must comply with legal requirements.

If the arrangement is invalid, the worker may be treated as a regular or probationary employee and may claim statutory benefits.

XLIII. Project-Based Probationary Employees

The phrase “project-based probationary employee” may be confusing because project employment and probationary employment are different concepts.

A project employee hired for a specific project may still be entitled to 13th month pay if covered, computed based on basic salary earned.

If the person is actually performing probationary work toward regular employment, then ordinary probationary rules apply.

The label is less important than the facts.

XLIV. Fixed-Term Probationary Employees

A fixed-term employee may be hired for a definite period. A probationary employee is under evaluation for regularization. Sometimes contracts mix these concepts.

If the employee is rank-and-file and covered, they are entitled to 13th month pay based on basic salary earned, regardless of whether the contract is fixed-term, probationary, or both.

XLV. Seasonal Probationary Employees

Seasonal workers may be entitled to 13th month pay based on wages earned during the season, if covered.

If a seasonal employee is also under probationary assessment, the computation remains based on total basic salary earned during the calendar year.

XLVI. Probationary Employees Terminated for Just Cause

A probationary employee dismissed for just cause may still be entitled to earned 13th month pay.

Example:

A probationary employee worked four months and was dismissed for serious misconduct after due process. The employer may terminate employment if legally justified, but the employee’s earned statutory benefits should still be computed and paid, subject to lawful deductions.

Dismissal for cause does not automatically forfeit 13th month pay unless a valid legal basis exists.

XLVII. Probationary Employees Terminated for Failure to Meet Standards

A probationary employee may be terminated for failure to meet reasonable standards made known at the time of engagement.

Even then, the employee remains entitled to wages and benefits earned before separation.

The employer should include pro-rated 13th month pay in final pay.

XLVIII. Probationary Employees Retrenched or Redundant

If a probationary employee is separated due to authorized causes such as redundancy, retrenchment, closure, or installation of labor-saving devices, the employee may be entitled to:

pro-rated 13th month pay;
separation pay, if required by law;
unpaid salary;
other final pay items.

Probationary status does not automatically remove authorized-cause separation pay if the employee is otherwise covered.

XLIX. Probationary Employees Who Become Regular During the Year

If a probationary employee becomes regular in the same calendar year, there is no separate probationary and regular 13th month pay.

The employer simply computes total basic salary earned during the year and divides by 12.

Example:

January to June probationary salary: ₱18,000/month July to December regular salary after increase: ₱20,000/month

Total basic salary:

₱18,000 × 6 = ₱108,000 ₱20,000 × 6 = ₱120,000 Total = ₱228,000

13th month pay:

₱228,000 ÷ 12 = ₱19,000

The salary increase is reflected because actual basic salary earned changed during the year.

L. Salary Increase During Probation

If a probationary employee receives a salary increase before regularization or upon regularization, the computation should use actual basic salary earned at each rate.

The employee is not automatically entitled to 13th month pay based only on the latest salary unless company policy provides a more generous formula.

The statutory formula is based on total basic salary earned during the calendar year divided by 12.

LI. Unpaid Suspension and 13th Month Pay

If a probationary employee was placed on unpaid suspension, the period without salary generally reduces total basic salary earned, thus lowering 13th month pay.

However, if the suspension was illegal and the employee later recovers backwages or salary for that period, the corrected salary amounts may affect the computation.

LII. Absences, Tardiness, and Undertime

Absences without pay, tardiness deductions, and undertime deductions reduce actual basic salary earned.

Because the formula uses total basic salary earned, these deductions may reduce the 13th month pay.

However, employers must apply deductions lawfully and accurately.

LIII. Paid Leave and 13th Month Pay

If the employee is on paid leave and receives basic salary, that salary is generally included in total basic salary earned.

If the leave is unpaid, no basic salary is earned for that period.

LIV. Work Suspension and No Work

If the employer suspends operations and employees are unpaid under a lawful no-work-no-pay arrangement, the unpaid period may reduce the total basic salary earned.

If employees are paid despite work suspension, the paid basic salary is included.

LV. Employees Paid by Results

Some employees are paid by output, piece rate, task, commission, or similar methods.

Entitlement to 13th month pay depends on coverage rules and whether the compensation is treated as basic wage.

For probationary employees paid by results, the computation may require examination of payroll records and actual wage structure.

LVI. Minimum Wage Earners

Minimum wage probationary employees are entitled to 13th month pay if covered.

An employer cannot say that because the employee is already paid minimum wage, 13th month pay is unnecessary. The benefit is separate from minimum wage.

LVII. 13th Month Pay vs. Christmas Bonus

13th month pay and Christmas bonus are different.

13th month pay

mandatory for covered employees;
based on law;
computed as total basic salary earned divided by 12;
must generally be paid by December 24;
applies to probationary rank-and-file employees if covered.

Christmas bonus

generally discretionary unless made demandable by contract, policy, CBA, or practice;
amount may vary;
may be subject to company conditions;
may be given only if employer chooses, unless legally or contractually obligated.

An employer cannot treat a discretionary Christmas bonus as a substitute for unpaid statutory 13th month pay unless it clearly satisfies legal requirements.

LVIII. 13th Month Pay vs. 14th Month Pay

There is no general statutory 14th month pay requirement for all private-sector employees.

If an employer gives 14th month pay, it is usually because of company policy, contract, CBA, or voluntary practice.

Probationary employees may or may not be included in 14th month pay depending on the terms of the policy. This is different from statutory 13th month pay, which cannot be denied to covered probationary rank-and-file employees.

LIX. Can 13th Month Pay Be Paid in Installments?

Employers may pay 13th month pay in installments if the full required amount is paid by the deadline.

A common arrangement is:

half in May or June;
half in December.

For probationary employees who separate before the second installment, the employer should compute the earned pro-rated amount and settle any balance in final pay.

LX. Overpayment of 13th Month Pay

If an employer paid an advance 13th month amount and the probationary employee resigns before year-end, there may be an overpayment.

Example:

Employee received half-month 13th month advance in June but resigned in July. If the actual pro-rated entitlement is lower than the advance received, the employer may seek to offset the overpayment against final pay, if lawful and properly documented.

Deductions should be transparent and not arbitrary.

LXI. Underpayment of 13th Month Pay

Underpayment happens when the employer:

excludes probationary service months;
computes only from regularization date;
excludes salary earned before regularization;
applies an unauthorized minimum service requirement;
uses net pay instead of basic salary;
deducts absences twice;
excludes covered employees;
treats 13th month as discretionary;
withholds payment after resignation.

Employees may question the computation and request a breakdown.

LXII. Computing from Date of Hiring, Not Date of Regularization

For probationary employees who later become regular, the computation should count basic salary earned from the start of employment within the calendar year, not only from the date of regularization.

Example:

Hired February 1, regularized August 1. The employee’s 13th month pay should count salary from February through December, not only August through December.

LXIII. Employees Hired in December

A probationary employee hired in December may still earn 13th month pay if they worked during that calendar year and meet the applicable minimum service threshold.

Example:

Hired December 1. Monthly salary: ₱18,000. Basic salary earned in December: ₱18,000.

13th month pay:

₱18,000 ÷ 12 = ₱1,500

If hired very late in December and worked less than one month, entitlement may depend on the specific interpretation, company policy, and payroll treatment, but many employers compute proportionately for actual salary earned to avoid disputes.

LXIV. Employees Who Resign Before Completing One Month

If a probationary employee resigns before completing one month, the statutory entitlement may be disputed because the standard rule refers to employees who have worked for at least one month during the calendar year.

However, a company policy, contract, or more generous practice may still grant pro-rated 13th month pay even for shorter service.

Employers may also choose to pay a proportionate amount to avoid labor disputes.

LXV. Probationary Employee Paid Weekly

For weekly-paid probationary employees, add all basic weekly wages earned during the calendar year and divide by 12.

Example:

Weekly basic pay: ₱4,500 Weeks worked: 10 Total basic salary: ₱45,000

13th month pay:

₱45,000 ÷ 12 = ₱3,750

LXVI. Probationary Employee Paid Semi-Monthly

For semi-monthly employees, add all basic semi-monthly pay earned during the year and divide by 12.

Example:

Semi-monthly basic pay: ₱12,000 Employee worked 8 semi-monthly periods. Total basic salary: ₱96,000

13th month pay:

₱96,000 ÷ 12 = ₱8,000

LXVII. Probationary Employee with Variable Monthly Salary

If salary varies because of changes in rate, unpaid absences, partial months, or work schedule, use total basic salary actually earned.

Example:

January basic salary earned: ₱18,000 February: ₱18,000 March: ₱15,000 due to unpaid absences April: ₱20,000 after increase May: ₱20,000

Total: ₱91,000

13th month pay:

₱91,000 ÷ 12 = ₱7,583.33

LXVIII. Treatment of Training Period

If the probationary employee underwent paid training as part of employment, the basic pay earned during training should generally be included.

If the employer calls the first weeks “training” but the person is already required to report, follow company rules, perform tasks, and receive wages, those paid amounts are part of the employment compensation.

Unpaid training arrangements should be examined carefully because they may violate labor standards if the person is actually performing compensable work.

LXIX. Effect of Illegal Dismissal on 13th Month Pay

If a probationary employee is illegally dismissed and later awarded backwages, the backwages may include benefits the employee would have earned, including 13th month pay components.

For example, if a probationary employee was illegally terminated after two months and should have been retained or regularized, the labor tribunal may compute monetary awards based on lost wages and benefits.

The exact award depends on the findings.

LXX. Claims for Non-Payment

An employee may file a complaint for non-payment or underpayment of 13th month pay.

Possible venues include:

Department of Labor and Employment mechanisms;
Single Entry Approach, or SEnA;
National Labor Relations Commission, especially if connected with illegal dismissal or other money claims.

For current employees, labor standards complaints may be handled differently from cases involving dismissal. The correct route depends on the amount, employment status, and related claims.

LXXI. Prescriptive Period

Money claims under the Labor Code generally have a prescriptive period. Employees should not delay asserting unpaid 13th month pay.

If the claim is connected with illegal dismissal, different claims may have different prescriptive periods. Prompt action is best.

LXXII. Evidence for Employees

A probationary employee claiming unpaid or underpaid 13th month pay should gather:

employment contract;
appointment letter;
company ID;
payslips;
payroll records;
bank credit records;
time records;
resignation or termination documents;
final pay computation;
clearance documents;
employee handbook;
messages from HR;
proof of start date;
proof of salary rate;
proof of unpaid absences or deductions;
email or chat confirming employment.

The computation is easier if the employee has payslips and payroll records.

LXXIII. Evidence for Employers

An employer defending its computation should maintain:

payroll register;
payslips;
attendance records;
salary rates;
employment contracts;
proof of payment;
final pay computation;
quitclaim or release, if any;
company policy;
explanation of excluded items;
proof of lawful deductions.

Employers should be able to show how the amount was computed.

LXXIV. Requesting a Computation

A separated probationary employee may send a written request such as:

I respectfully request the release of my final pay computation, including unpaid salary, pro-rated 13th month pay, unused leave conversion if applicable, and any deductions. Please provide the breakdown of the computation and expected release date.

Keeping the request polite and written helps create a record.

LXXV. Sample Pro-Rated 13th Month Pay Computation Table

Situation	Basic Salary Earned	Formula	13th Month Pay
Worked full year at ₱20,000/month	₱240,000	₱240,000 ÷ 12	₱20,000
Worked 6 months at ₱20,000/month	₱120,000	₱120,000 ÷ 12	₱10,000
Worked 3 months at ₱18,000/month	₱54,000	₱54,000 ÷ 12	₱4,500
Worked 5 months at ₱25,000/month	₱125,000	₱125,000 ÷ 12	₱10,416.67
Earned ₱80,000 due to absences	₱80,000	₱80,000 ÷ 12	₱6,666.67

LXXVI. Common Employer Mistakes

Employers often make mistakes such as:

excluding probationary employees;
computing only from regularization date;
requiring six months of service;
requiring employment until December;
treating 13th month as discretionary;
using net pay after deductions instead of basic salary earned;
refusing payment after resignation;
deducting unliquidated amounts without basis;
failing to include paid training salary;
failing to provide computation.

These mistakes may lead to labor complaints.

LXXVII. Common Employee Misunderstandings

Employees may also misunderstand the benefit.

Common misconceptions include:

“I should receive one full month salary even if I worked only three months.”
“13th month pay is based on gross pay including overtime.”
“Allowances are always included.”
“I lose 13th month pay if I resign.”
“Only regular employees receive it.”
“I must be employed in December.”
“13th month pay is the same as Christmas bonus.”

The statutory amount is based on total basic salary earned during the calendar year divided by 12.

LXXVIII. Practical Advice for Probationary Employees

Probationary employees should:

keep copies of employment documents;
save payslips and payroll credits;
confirm start date and salary rate;
ask HR for final pay computation upon separation;
check whether salary before regularization was included;
verify that deductions are explained;
avoid signing quitclaims without understanding;
file a complaint promptly if unpaid.

LXXIX. Practical Advice for Employers

Employers should:

include probationary employees in 13th month pay computation;
compute from actual start date, not regularization date;
base computation on total basic salary earned;
pay by December 24;
include pro-rated amount in final pay;
document deductions;
issue payslips and computation sheets;
train HR and payroll personnel;
avoid policies that exclude probationary employees;
keep payroll records ready for inspection or dispute resolution.

LXXX. Frequently Asked Questions

Are probationary employees entitled to 13th month pay?

Yes, if they are covered rank-and-file employees and have worked for at least one month during the calendar year.

Is the 13th month pay of a probationary employee pro-rated?

Yes, if the employee did not work the full calendar year. It is computed as total basic salary earned during the year divided by 12.

Can an employer deny 13th month pay because the employee was not regularized?

No. Failure to regularize does not erase earned statutory benefits.

Can a probationary employee who resigned get 13th month pay?

Yes. A resigned probationary employee is generally entitled to pro-rated 13th month pay based on basic salary earned before resignation.

Can a terminated probationary employee get 13th month pay?

Yes. Termination does not automatically forfeit earned 13th month pay.

Is completion of six months required?

No. The employee does not need to complete the probationary period to earn pro-rated 13th month pay.

Is employment until December required?

No. Separated employees are still entitled to the proportionate amount earned.

What is the formula?

Total basic salary earned during the calendar year divided by 12.

Are overtime and allowances included?

Generally, overtime and non-basic allowances are excluded. The computation is based on basic salary, unless a more favorable policy or agreement includes them.

When should it be paid?

For active employees, generally not later than December 24. For separated employees, it should be included in final pay.

Can the employer deduct accountabilities?

Only lawful, documented, and valid deductions may be made. Arbitrary deductions may be challenged.

What if the employee worked less than one month?

The statutory rule generally refers to employees who worked at least one month during the calendar year. Company policy may provide a more favorable benefit.

LXXXI. Conclusion

Probationary employees in the Philippines are generally entitled to pro-rated 13th month pay if they are rank-and-file employees who worked for at least one month during the calendar year. The benefit is computed by dividing the employee’s total basic salary earned during the calendar year by 12.

Probationary status, non-regularization, resignation, or termination before December does not automatically remove the right to earned 13th month pay. Employers must include the proper pro-rated amount in payroll or final pay, subject only to lawful deductions.

The central rule is simple: 13th month pay follows earned basic salary, not regularization status. A probationary employee who worked and earned wages during the year generally earned a corresponding share of the 13th month pay.