Am I Entitled to 13th Month Pay If I Resigned?

Yes, you are entitled to pro-rated 13th month pay even if you resigned. Under Presidential Decree No. 851, all rank-and-file employees who have worked at least one month during the calendar year are entitled to 13th month pay — regardless of whether they resigned, were terminated, or are still employed at the time of payment. Your employer must include the pro-rated amount in your final pay.

The Legal Basis

Presidential Decree No. 851 (signed December 16, 1975) mandates the payment of 13th month pay to all rank-and-file employees. Section 3 of PD 851, as clarified by the Revised Guidelines on the Implementation of the 13th Month Pay Law (DOLE), explicitly covers employees who have resigned or separated before the payment date:

"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, reckoned from the time he started working during the calendar year."

This means there is no minimum service period within the year other than having worked at least one month. Whether you resigned in February or November, you are entitled to a pro-rated amount.

The Formula

The computation for pro-rated 13th month pay is:

13th Month Pay = Total Basic Salary Earned During the Year / 12

"Total Basic Salary Earned" means the sum of all basic salary you received from January 1 (or your start date, if later) through your last day of work. It excludes:

• Overtime pay
• Holiday premium pay
• Night differential
• Cost-of-living allowances (COLA)
• Cash equivalents of unused vacation and sick leave
• Other monetary benefits not considered part of basic salary

Worked Example

Employee profile:

• Monthly basic salary: ₱30,000
• Start of year: January 1, 2026
• Resignation effective date: August 31, 2026
• Months worked: 8 (January through August)

Computation:

Step	Detail	Amount
Total basic salary earned	₱30,000 x 8 months	₱240,000.00
Divide by 12	₱240,000.00 / 12	₱20,000.00

The resigned employee receives ₱20,000.00 as pro-rated 13th month pay.

Partial Month Example

If the employee resigned on August 15 instead of August 31:

Step	Detail	Amount
Full months (Jan-Jul)	₱30,000 x 7 months	₱210,000.00
Partial month (Aug 1-15)	₱30,000 x (15/31)	₱14,516.13
Total basic salary earned		₱224,516.13
Divide by 12	₱224,516.13 / 12	₱18,709.68

The exact amount depends on the company's payroll cut-off and how partial months are computed.

When Should You Receive It?

Your pro-rated 13th month pay should be included as part of your final pay. Under DOLE Labor Advisory No. 06-20, the employer must release final pay within 30 days from the date of separation, unless a company policy or CBA provides a shorter period.

Final pay typically includes:

• Unpaid salary up to the last day of work
• Pro-rated 13th month pay
• Cash conversion of unused leave credits (if provided by company policy)
• Other amounts due under the employment contract or CBA

Tax Treatment

Under the TRAIN Law (Republic Act No. 10963), the 13th month pay and other benefits are tax-exempt up to ₱90,000 per calendar year. Any amount exceeding ₱90,000 is subject to income tax.

For most employees who resign mid-year, the pro-rated 13th month pay will fall below the ₱90,000 threshold. In the example above, the ₱20,000 pro-rated 13th month pay is well within the exempt limit.

What If Your Employer Refuses?

If your employer refuses to pay your pro-rated 13th month pay:

1. Send a written demand — Document your request in writing (email or letter) citing PD 851
2. File a complaint with DOLE — You can file a complaint at the nearest DOLE Regional Office. Non-payment of 13th month pay is a labor standards violation
3. NLRC complaint — For money claims, you may also file a case before the National Labor Relations Commission

Employers who fail to pay 13th month pay face administrative penalties and may be required to pay the amount due plus legal interest.

Related Guides

• 13th Month Pay Guide (Philippines) — Complete guide covering the full computation, deadlines, and compliance requirements
• 13th Month Pay Calculator — Compute your pro-rated 13th month pay instantly
• Final Pay Computation (Philippines) — Full checklist of what's included in final pay
• Separation Pay Computation — When separation pay is required and how to compute it

Legal References

• Presidential Decree No. 851 — Requiring all employers to pay 13th month pay to rank-and-file employees
• Revised Guidelines on the Implementation of the 13th Month Pay Law (DOLE) — Section 3 on pro-rating for separated employees
• Republic Act No. 10963 (TRAIN Law) — ₱90,000 tax exemption for 13th month pay and other benefits
• DOLE Labor Advisory No. 06-20 — 30-day release period for final pay

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This guide is for informational purposes only and does not constitute legal, tax, or financial advice. While we strive for accuracy by citing official Philippine laws and government circulars, regulations change. Consult a qualified professional or the relevant government agency for advice specific to your situation.