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Prorated 13th month pay for resigned and newly hired employees

How to compute 13th month pay for employees who resigned, were separated or were hired mid-year, when to pay it, and how it fits into the final pay.

Updated · 5 min read · Figures computed with the Payslip.ph payroll engine on the 2026 rules

An employee does not have to be on the payroll in December to get a 13th month pay. Anyone who resigns, is separated or is hired during the year is owed a proportionate amount: one-twelfth of the basic salary they actually earned in the year.

In short
  • Same formula for everyone: basic salary earned in the year ÷ 12.
  • Resigned or separated: paid with the final pay, within 30 days.
  • New hires: covered after one month of work in the year.
  • Already paid half in June? Subtract it from the prorated amount.

The formula

Prorated 13th month pay = basic salary earned from 1 January (or the start date) to the last day worked ÷ 12

There is no separate proration step. Because the formula already uses the salary earned, a shorter stay automatically gives a smaller amount. Count partial months by the days actually paid, and leave out unpaid absences.

Example: resigned on 15 August

An employee on ₱20,000.00 a month resigns effective 15 August 2026. They earned seven full months from January to July plus 15 of August's 31 days.

Prorated 13th month pay, resigned 15 August
Basic salary earned, 1 January to 15 August
₱149,677.42
Divided by 12
₱12,473.12
Less half paid in June
-₱10,000.00
Still due with the final pay
₱2,473.12

Without the June payment, the full prorated amount goes into the final pay.

Example: hired mid-year

A new hire starts on 16 March 2026 at ₱20,000.00 a month and stays through December.

Prorated 13th month pay, hired 16 March
Basic salary earned, 16 March to 31 December
₱190,322.58
13th month pay, paid by 24 December
₱15,860.22
On ₱20,000.00 a monthBasic salary earned in 202613th month pay
Resigned 15 August₱149,677.42₱12,473.12
Hired 16 March₱190,322.58₱15,860.22
Hired 1 February, left 31 October₱180,000.00₱15,000.00
Partial months are counted by calendar days, the way the free calculator does it.

Where it goes in the final pay

The prorated 13th month pay is one line of the final pay, next to the unpaid salary, the cash value of unused service incentive leave, any separation pay due and any tax refund from the annualization, less documented accountabilities. DOLE expects the final pay within 30 days of separation.

Issue the 2316 the same day
A separated employee gets their BIR Form 2316 on the day of the final payment. Their 13th month pay goes on it under "13th month pay and other benefits", exempt up to ₱90,000 together with their other bonuses.

Does the reason for leaving matter?

No. Resignation, end of contract, termination for just cause, redundancy and retirement all leave the employee with the 13th month pay they earned. The reason matters for separation pay, not for 13th month pay. See the separation pay calculator for that part.

For coverage and the 24 December deadline, see the 13th month pay law; for what goes into the base, see what counts toward 13th month pay.

13th month pay calculatorFree, no account needed, on the same engine as Payslip.ph.

Common questions

Does an employee who resigned get 13th month pay?

Yes. An employee who resigned or was separated for any reason before the payment date is entitled to 13th month pay in proportion to the basic salary earned during the year up to the last day of work.

When is the prorated 13th month pay of a resigned employee paid?

With the final pay, which DOLE expects within 30 days of the separation date unless a company policy or collective agreement sets a shorter period.

Is a new employee entitled to 13th month pay?

Yes, once they have worked at least one month during the calendar year. They get one-twelfth of the basic salary earned from their start date to December.

What if the employee was paid half the 13th month in June and then resigned?

Compute the prorated amount on the basic salary earned up to the last day, then subtract the half already paid. If the June payment is more than the prorated amount, check your written policy before deducting the difference from the final pay.

Related guides

Year end13th month pay in the Philippines: who gets it, how much and whenRead Year endWhat counts toward 13th month pay, and when it is taxedRead Year endBIR Form 2316: what it is, deadlines and how employers prepare itRead

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