For most resigned employees in the Philippines, the practical answer is: your pro-rated 13th month pay should be released as part of your final pay within 30 calendar days from your effective date of resignation, unless your company policy, employment contract, or collective bargaining agreement gives a more favorable timeline. It should not be withheld simply because you resigned before December, failed to finish the whole year, or are no longer in the company when the regular December payout happens.
The Short Answer: Resigned Employees Should Receive It With Final Pay
Under DOLE Labor Advisory No. 06, Series of 2020, “final pay,” also called “last pay” or “back pay,” includes the total wages and monetary benefits due to an employee after separation. DOLE expressly lists pro-rated 13th month pay under Presidential Decree No. 851 as one of the items that may form part of final pay. The same advisory provides that final pay should be released within 30 days from the date of separation or termination of employment, unless a more favorable company policy, individual agreement, or collective agreement applies.
This means that if your resignation became effective on March 31, your employer generally should release your final pay, including your pro-rated 13th month pay, by around April 30. If your company policy says final pay is released within 15 days, that more favorable policy should be followed.
The December 24 deadline is the usual deadline for annual 13th month pay of employees who are still employed, but a resigned employee’s earned portion becomes part of the final pay computation. Presidential Decree No. 851, as modified by Memorandum Order No. 28, requires payment of 13th month pay to rank-and-file employees not later than December 24 every year. (Lawphil)
What Is 13th Month Pay?
13th month pay is a mandatory monetary benefit under Philippine labor law. It is not the same as a Christmas bonus, performance bonus, signing bonus, or gratuity. It is a legal entitlement for covered employees.
The basic formula is:
Total basic salary earned during the calendar year ÷ 12 = 13th month pay
For resigned employees, the computation is pro-rated. You do not need to complete the whole year to earn it. What matters is the basic salary you actually earned during the calendar year up to your last day of employment.
DOLE’s Bureau of Working Conditions explains that rank-and-file employees who worked for at least one month during the calendar year are entitled to 13th month pay, regardless of employment status or method of wage payment. DOLE’s own 13th month pay FAQ also confirms that resigned or separated employees are entitled to 13th month pay. (BWC Dole)
Legal Basis for Resigned Employees’ 13th Month Pay
Presidential Decree No. 851
The original 13th Month Pay Law is Presidential Decree No. 851. It required covered employers to pay 13th month pay not later than December 24 of every year. The original decree had a salary ceiling, but that ceiling was later removed. (Lawphil)
Memorandum Order No. 28, Series of 1986
Memorandum Order No. 28 modified PD 851 so that all employers are required to pay their rank-and-file employees 13th month pay not later than December 24 every year. This is why employees earning more than the old ₱1,000 salary ceiling are now covered. (Lawphil)
Revised Guidelines on the 13th Month Pay Law
The Revised Guidelines on the Implementation of the 13th Month Pay Law state that an employee who resigned or whose services were terminated before the time for payment of the 13th month pay is entitled to the benefit in proportion to the length of time worked during the year, counted from the start of work in that calendar year up to resignation or termination. (Labor Law PH)
DOLE Labor Advisory No. 06, Series of 2020
This is the key rule for timing. DOLE treats pro-rated 13th month pay as part of final pay, and final pay should be released within 30 days from separation, unless a better policy or agreement applies. The advisory also says a Certificate of Employment should be issued within three days from the employee’s request.
Who Is Entitled After Resignation?
A resigned employee is generally entitled to pro-rated 13th month pay if all these are present:
- The worker was a rank-and-file employee in the private sector.
- The worker rendered at least one month of service during the calendar year.
- The amount claimed is based on basic salary earned during that calendar year.
- The benefit has not yet been fully paid.
This applies whether the employee was:
- regular;
- probationary;
- project-based;
- seasonal;
- fixed-term;
- part-time;
- paid daily;
- paid monthly;
- paid on piece-rate basis, if covered;
- paid a fixed or guaranteed wage plus commission, depending on the nature of the commission.
The important point is that resignation does not erase the benefit already earned.
When Exactly Should the Employer Pay?
| Situation | When 13th Month Pay Should Be Paid |
|---|---|
| Employee is still employed during the regular annual payout | On or before December 24 |
| Employee resigned before December payout | With final pay, generally within 30 calendar days from separation |
| Company policy gives an earlier final pay deadline | Follow the earlier, more favorable deadline |
| Employee already received partial 13th month pay earlier in the year | Remaining pro-rated balance should be included in final pay |
| Employee received full projected 13th month pay but resigned before year-end | Employer may adjust based on actual basic salary earned, subject to lawful deduction rules |
A common mistake is when HR says, “13th month is released only in December, so wait until December even if you resigned in March.” For resigned employees, that answer is incomplete. Once employment ends, the earned pro-rated 13th month pay becomes part of final pay, and DOLE’s final pay timeline applies.
How to Compute Pro-Rated 13th Month Pay for a Resigned Employee
Use this formula:
Total basic salary earned from January 1, or start date if hired during the year, up to the last day of employment ÷ 12
Example 1: Monthly-paid employee resigns in August
Mara earns ₱30,000 basic salary per month. She worked from January 1 to August 31 and resigned effective August 31.
| Item | Amount |
|---|---|
| Basic salary earned January to August | ₱240,000 |
| Divide by 12 | ÷ 12 |
| Pro-rated 13th month pay | ₱20,000 |
Mara should receive ₱20,000 as pro-rated 13th month pay, less any lawful tax or payroll adjustments if applicable.
Example 2: Employee resigns mid-month
Paolo earns ₱24,000 basic salary per month and resigns effective May 15. Assume his earned basic salary from January 1 to May 15 is ₱108,000.
| Item | Amount |
|---|---|
| Basic salary earned up to May 15 | ₱108,000 |
| Divide by 12 | ÷ 12 |
| Pro-rated 13th month pay | ₱9,000 |
The computation is based on actual basic salary earned, not simply the number of calendar months printed on the resignation letter.
Example 3: Employee already received half in June
Ana earns ₱36,000 per month. She resigns effective September 30. Her basic salary earned from January to September is ₱324,000.
| Item | Amount |
|---|---|
| Total basic salary earned | ₱324,000 |
| 13th month pay due | ₱27,000 |
| Less amount already paid in June | ₱18,000 |
| Balance payable in final pay | ₱9,000 |
If the employer already paid part of the 13th month pay, only the unpaid balance should be included in final pay.
What Counts as “Basic Salary”?
For 13th month pay purposes, the starting point is the employee’s basic salary earned during the calendar year. The Revised Guidelines and Supreme Court discussions distinguish basic salary from other payments that are not integrated into basic pay.
Generally excluded from the computation are:
- overtime pay;
- premium pay;
- night shift differential;
- holiday pay;
- cost-of-living allowances not integrated into basic salary;
- profit-sharing payments;
- cash conversion of unused vacation or sick leave credits;
- other allowances and monetary benefits not treated as part of basic salary.
However, if a benefit is treated as part of basic salary by company policy, employment contract, collective bargaining agreement, or established company practice, it may have to be included. The Supreme Court in Central Azucarera de Tarlac v. Central Azucarera de Tarlac Labor Union-NLU discussed the rule that salary-related benefits excluded by default may be included if they are treated as part of basic salary by agreement, policy, or practice. (Labor Law PH)
What About Commissions?
Commissions are one of the most misunderstood items.
The Supreme Court has recognized that the treatment of commissions depends on their nature. In Boie-Takeda Chemicals, Inc. v. De la Serna, the Court treated certain commissions as excluded from basic salary. In Philippine Duplicators, Inc. v. NLRC, however, the Court held that sales commissions forming part of the wage or salary structure may be included in the 13th month pay base. (Lawphil)
In practical terms, payroll should not decide by label alone. It should look at whether the commission is a productivity bonus or incentive separate from basic wage, or whether it is part of the employee’s regular wage structure.
Can the Employer Withhold 13th Month Pay Because Clearance Is Not Finished?
Final pay is often delayed because of clearance routing: IT has not signed off, the company laptop was not returned, the manager has not approved the clearance, or payroll is waiting for accounting.
Clearance is a normal administrative process, but it should not be used to indefinitely delay earned wages and benefits. DOLE’s rule is still that final pay should be released within 30 days from separation unless a more favorable policy or agreement applies.
If there are accountabilities, such as unreturned equipment, company loans, cash advances, or missing tools, the employer should itemize them clearly. Deductions from wages are regulated under the Labor Code. Article 113 limits wage deductions, while Article 116 prohibits unlawful withholding of wages. (AMSLAW)
A good final pay computation should show:
- unpaid salary;
- pro-rated 13th month pay;
- service incentive leave conversion, if applicable;
- unused leave conversion under company policy, if any;
- tax refund or tax adjustment, if any;
- cash bond or deposit return, if due;
- deductions, with basis and supporting records;
- net amount payable.
Common Scenarios
“I resigned in January. Do I still get 13th month pay?”
Yes, if you worked at least one month during that calendar year. If you resigned effective January 31 and earned one month of basic salary, your pro-rated 13th month pay is your January basic salary divided by 12.
“I was probationary and resigned before regularization.”
Probationary employees are still employees. If you were rank-and-file and worked at least one month during the calendar year, you are generally entitled to pro-rated 13th month pay.
“I went AWOL. Can the company forfeit my 13th month pay?”
Absence without leave may expose the employee to company disciplinary consequences and may affect unpaid salary or accountabilities, but it does not automatically erase earned statutory benefits. The employer should still compute what was earned up to the last day recognized for payroll purposes, subject to lawful deductions and proper documentation.
“I am a foreign employee working in the Philippines.”
Nationality alone does not remove the right to statutory labor benefits. A foreign national who is an employee covered by Philippine labor law may claim earned wages and benefits like other employees. In practice, foreign employees should keep copies of their employment contract, pay slips, Alien Employment Permit or work documents if relevant, passport ID page, final pay computation, and written communications with HR.
If the foreign employee is already abroad and authorizes someone in the Philippines to handle documents or attend proceedings, agencies may require a written authorization or Special Power of Attorney. For documents executed abroad, notarization through the Philippine Embassy or Consulate, or apostille/authentication requirements, may become relevant depending on where and how the document will be used. DFA’s apostille guidance recognizes authorized representatives and document authentication requirements. (DFA Appointment System)
“I am a kasambahay who resigned.”
Domestic workers, or kasambahays, have a separate law: Republic Act No. 10361, also called the Batas Kasambahay. Section 25 states that a domestic worker is entitled to 13th month pay as provided by law. (Labor Law PH Library)
Step-by-Step: What to Do If Your 13th Month Pay Is Not Released
Confirm your effective resignation date. Use the final date accepted by the company or the last day reflected in your clearance, HR acceptance, or payroll records.
Ask for a written final pay computation. Request an itemized computation showing unpaid salary, pro-rated 13th month pay, leave conversion, deductions, tax adjustment, and net pay.
Compute your own estimate. Add your basic salary earned during the calendar year up to your last day, then divide by 12. Deduct any 13th month pay already received.
Check whether the 30-day period has passed. Count from your separation date. If the company has a more favorable policy, use that earlier deadline.
Put the request in writing. A short email is enough: state your last day, ask for the release date, and request the itemized computation of your final pay including pro-rated 13th month pay.
Prepare documents before filing a complaint. Keep your resignation letter, acceptance email, employment contract, payslips, payroll screenshots, company handbook provisions, clearance documents, and HR messages.
Use DOLE’s Single Entry Approach if unresolved. The Single Entry Approach, or SEnA, is a mandatory conciliation-mediation process for labor issues. DOLE describes SEnA as a speedy, impartial, inexpensive, and accessible settlement procedure, generally involving 30 calendar days of conciliation-mediation. (Department of Labor and Employment)
Proceed to the proper labor forum if settlement fails. Depending on the facts, the matter may proceed through DOLE labor standards enforcement or the National Labor Relations Commission, especially if the final pay issue is combined with illegal dismissal, damages, or larger money claims.
Documents Usually Needed
| Document | Why It Matters |
|---|---|
| Resignation letter | Shows intent to resign and notice date |
| Acceptance of resignation or clearance form | Helps establish effective separation date |
| Employment contract or appointment letter | Shows salary, position, and employment terms |
| Payslips or payroll records | Proves basic salary earned |
| Company handbook or CBA | May show more favorable benefits or earlier final pay rules |
| Proof of partial 13th month payment | Avoids double counting and shows unpaid balance |
| HR emails or chat messages | Useful for proving requests and employer responses |
| Valid ID | Usually needed for filing, claiming, or authorizing a representative |
| Special Power of Attorney, if represented | Useful when the employee is abroad or cannot personally appear |
Tax Treatment of 13th Month Pay
13th month pay and certain other benefits are generally excluded from taxable compensation up to the statutory ceiling. Under BIR Revenue Regulations No. 11-2018, the total exclusion for 13th month pay and other benefits is up to ₱90,000; amounts beyond the ceiling may be taxable. (Bir CDN)
For resigned employees, final pay may also include a year-end tax adjustment. This is why final pay computations sometimes show a tax refund, additional withholding, or BIR Form 2316 adjustment. The tax computation is separate from the right to receive the earned 13th month pay.
Common Employer Mistakes
Waiting Until December for All Resigned Employees
This is one of the most common errors. If the employee already resigned, the pro-rated 13th month pay should be treated as part of final pay, subject to the 30-day final pay rule.
Computing Based Only on Completed Months
The law refers to total basic salary earned during the calendar year. If the employee worked until the middle of a month and earned salary for that period, that earned basic salary should be part of the base.
Excluding Employees Because They Were Probationary or Project-Based
Coverage is not limited to regular employees. Rank-and-file employees who worked at least one month during the calendar year may be covered regardless of employment status.
Forfeiting 13th Month Pay as a Penalty
The 13th month pay is a statutory benefit earned from service already rendered. Employers should not treat it as a discretionary reward that disappears because the employee resigned.
Refusing to Give a Computation
Employees often cannot verify final pay because payroll gives only a net amount. A clear breakdown helps prevent disputes and is consistent with good payroll practice.
Frequently Asked Questions
Should resigned employees receive 13th month pay immediately?
Not necessarily on the exact last working day. In practice, it is usually released with final pay. Under DOLE Labor Advisory No. 06, Series of 2020, final pay should be released within 30 days from separation unless a more favorable company policy or agreement applies.
Can my employer tell me to wait until December?
For an active employee, the annual deadline is December 24. For a resigned employee, the earned pro-rated 13th month pay is part of final pay, so the 30-day final pay rule generally applies.
How much 13th month pay do I get if I resign?
Add all basic salary you earned during the calendar year up to your last day, then divide by 12. If you already received partial 13th month pay, deduct what was already paid.
Am I entitled if I worked for less than one year?
Yes, if you worked for at least one month during the calendar year and are otherwise covered. You receive a pro-rated amount, not the full-year amount.
Does the 30-day final pay rule include weekends and holidays?
DOLE uses “30 days” from separation. In ordinary HR practice, this is treated as 30 calendar days, not 30 working days, unless a more favorable company policy gives an earlier release.
Can the company deduct unreturned equipment from my 13th month pay?
Only lawful and properly supported deductions should be made. The employer should itemize the alleged accountability and basis for deduction. The Labor Code restricts wage deductions and prohibits unlawful withholding of wages. (AMSLAW)
Do managerial employees receive 13th month pay after resignation?
The mandatory 13th month pay law covers rank-and-file employees. Managerial employees may still receive an equivalent benefit if granted by contract, company policy, CBA, or established practice.
Is 13th month pay the same as separation pay?
No. 13th month pay is a mandatory benefit based on basic salary earned. Separation pay is different and is usually due only in specific situations, such as authorized causes under the Labor Code, company policy, contract, or agreement.
What if my employer still refuses to pay?
The usual first step is to file a Request for Assistance under DOLE’s SEnA process. If unresolved, the matter may proceed to DOLE enforcement or the NLRC depending on the nature and amount of the claims.
How long do I have to claim unpaid 13th month pay?
Money claims arising from employer-employee relations generally prescribe in three years under Article 306 of the Labor Code, formerly Article 291. (Labor Law PH Library)
Key Takeaways
- Resigned employees are entitled to pro-rated 13th month pay if they are covered rank-and-file employees who worked at least one month during the calendar year.
- The usual timing is with final pay within 30 calendar days from separation, unless a more favorable company policy, contract, or CBA applies.
- The computation is total basic salary earned during the calendar year up to the last day of employment divided by 12.
- Employers should not make resigned employees wait until December if the 13th month pay is already part of final pay.
- Clearance issues may justify proper accounting, but they should not be used to indefinitely withhold earned wages and benefits.
- Employees should ask for an itemized final pay computation and keep resignation, payroll, clearance, and HR communication records.
- Unpaid 13th month pay disputes commonly start with DOLE’s SEnA conciliation process.
- Labor money claims generally must be filed within three years from accrual.