Probationary and resigned employees can qualify
Regularization is not a prerequisite under the general rule. A covered probationary employee can qualify, and a covered employee who resigns or is separated before the payment date remains entitled to the proportion earned.
Managerial employees do not fall within the same statutory rank-and-file coverage, though a contract or employer policy can grant a benefit. Check actual duties and the applicable benefit terms when employment classification is disputed.
Use the basic salary actually earned
Start with the year's payroll record. Basic salary can change during the year because of a raise, joining partway through the year or unpaid absences. A current monthly salary multiplied by twelve can therefore misstate the base.
Overtime, premiums and allowances are not automatically part of basic salary for this calculation. Check whether an item is integrated into basic salary under the applicable agreement or practice. Ask payroll to identify what it included.
Example: a midyear start and a salary increase
Six months of pay with a salary increase
Assume three months at ₱24,000 basic salary and three months at ₱27,000, with no unpaid absences in those months. The basic salary earned is ₱153,000.
(₱24,000 × 3 + ₱27,000 × 3) ÷ 12 = ₱12,750
Using only the final monthly rate for all six months would overstate the result. Use the calculator for an estimate and compare it with the actual basic-salary ledger.
Check the amount when leaving the job
Record the basic salary earned up to separation and deduct any 13th-month amount already paid for the same year. Ask payroll to show the unpaid balance separately in final pay.
A final-pay statement can include several benefits with different rules. Keep the gross 13th-month computation separate from tax adjustments and other deductions so you can see what changed the take-home amount.
If the number looks wrong
Send the disputed month and amount to payroll with the relevant payslip. For tax treatment of the benefit and other bonuses, use the calculator's separate tax estimate and its cited tax guidance.
- Does the payroll base include every month you worked in the calendar year?
- Were salary changes and unpaid absences reflected correctly?
- Was an earlier installment deducted only once?
- Is the payslip showing the gross benefit or the net payment after adjustments?
- Which written rule explains any disputed inclusion or exclusion?
Sources
- DOLE: Give 13th-month pay on timeCoverage, basic salary, payment deadline and resigned employees
- DOLE: Final pay and COE must be released on timeJanuary 2026 reminder of Labor Advisory 06-20
General educational information. Eligibility, company agreements and the facts of a dispute can change the answer. This guide has not been reviewed by a Philippine labor lawyer. Ask DOLE or a qualified professional about a contested entitlement.