In the Philippines, the rights of domestic workers (Kasambahays) are primarily governed by Republic Act No. 10361, otherwise known as the "Domestic Workers Act" or "Batas Kasambahay." While the law elevated the status of domestic work, it also aligned many of its benefits with those in the formal sector—including the entitlement to 13th-month pay.

When a domestic worker resigns, many employers are unsure whether they are still obligated to pay this bonus. Under Philippine law, the answer is a definitive yes.

1. The Legal Basis for Entitlement

The 13th-month pay is not a discretionary Christmas bonus; it is a mandatory statutory benefit. Under Presidential Decree No. 851, all rank-and-file employees are entitled to this benefit provided they have worked for at least one (1) month during the calendar year.

The Batas Kasambahay explicitly extends this right to domestic workers. Section 25 of the law states that a Kasambahay who has rendered at least one month of service is entitled to a 13th-month pay which shall be paid not later than December 24 of every year.

2. Rules on Resignation and Termination

The entitlement does not disappear if the worker resigns before December. Philippine labor rules (specifically the Revised Guidelines on the Implementation of the 13th Month Pay Law) state:

"An employee who has resigned or whose services were terminated at any time before the time for payment of the 13th month pay is entitled to this monetary benefit in proportion to the length of time he worked during the year..."

Regardless of whether the resignation was voluntary or if the worker was terminated for a just cause, the prorated amount must be included in their final pay.

3. How to Calculate Prorated 13th Month Pay

The 13th-month pay is defined as one-twelfth (1/12) of the total basic salary earned by an employee within a calendar year.

The Formula:

What to include in "Basic Salary":

The monthly cash wage agreed upon.
It does not include the cash value of non-monetary benefits (like free board and lodging), allowances, or government contribution subsidies (SSS, PhilHealth, Pag-IBIG).

Example Calculation:

If a Kasambahay earns ₱6,000 per month and resigns effective at the end of July:

Total Basic Salary Earned: ₱6,000 × 7 months = ₱42,000
Calculation: ₱42,000 ÷ 12 = ₱3,500
Result: The worker is entitled to ₱3,500 as prorated 13th-month pay.

4. Comparison: 13th Month vs. Christmas Bonus

It is vital to distinguish between the two:

13th Month Pay: Mandatory by law. It must be paid even upon resignation.
Christmas Bonus: Discretionary. It is a gift from the employer. If an employer gives a "bonus" but fails to pay the "13th month," they may still be liable for labor law violations unless the bonus is specifically stipulated to be in lieu of the 13th-month pay (and meets the minimum amount).

5. Timing of Payment

When a domestic worker resigns, the prorated 13th-month pay is typically released as part of their Final Pay (Backpay). Under DOLE Labor Advisory No. 06, Series of 2020, final pay should generally be released within thirty (30) days from the date of separation or termination of employment, unless a more favorable company policy or agreement exists.

6. Consequences of Non-Payment

Failure to pay the prorated 13th-month pay constitutes a labor standard violation. A domestic worker may file a complaint at the:

Barangay: For initial mediation through the Lupong Tagapamayapa.
DOLE Regional/Field Office: For enforcement and summary proceedings if the barangay mediation fails.

Summary Checklist for Employers

Did the worker stay for at least one month?
Is the calculation based on the total basic salary earned this year?
Is the payment being released within 30 days of resignation?
Have you secured a signed quitclaim/acknowledgment receipt documenting the payment?