Quick answer: Yes, unpaid absences reduce your 13th month pay. Since the benefit is based on the basic salary you actually earned during the year, any day you weren’t paid for lowers your total — and therefore your 13th month pay. Paid leaves, however, are included. Compute it with absences factored in →
Why absences matter
The formula divides your total basic salary earned by 12:
13th Month Pay = Total Basic Salary Earned ÷ 12
“Earned” is the key word. If you went on leave without pay (LWOP), were absent without a paid leave credit, or had pay deducted for tardiness, those amounts were never added to your basic salary — so they shrink the total you divide by 12.
| Situation | Counts toward 13th month? |
|---|---|
| Regular working days | ✅ Yes |
| Paid leave (used leave credits) | ✅ Yes |
| Unpaid absence / leave without pay | ❌ No |
| Tardiness / undertime deductions | ❌ No (reduces basic earned) |
| Overtime, allowances, bonuses | ❌ Never included |
Worked example
An employee earns ₱30,000/month (₱360,000 for a full year), but took 8 days of leave without pay. With a daily rate of about ₱1,363 (₱30,000 ÷ 22 working days), that’s roughly ₱10,904 in unpaid absences:
- Total basic salary earned = ₱360,000 − ₱10,904 = ₱349,096
- 13th month pay = ₱349,096 ÷ 12 = ₱29,091
Compared to ₱30,000 for a perfect-attendance year, the 8 unpaid days cost about ₱909 of 13th month pay.
The easy way
Rather than tracking each deduction by hand, use the month-by-month mode of our calculator: enter what you actually received each month, and it sums and divides for you. Open the 13th Month Pay Calculator →
Related reading
Sources: DOLE Presidential Decree No. 851 and the latest Labor Advisory. For estimation only — confirm with your HR department.