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. Each unpaid day costs you about 1/12 of one day’s pay. 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. DOLE’s Revised Guidelines set the benefit at one-twelfth of the basic salary earned in the calendar year.
| 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 |
| Cash conversion of unused leave | Not included unless your policy treats it as basic pay |
Worked example: 8 unpaid days
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.
What different amounts of unpaid leave cost
Using the same ₱30,000 salary and a ₱1,363.64 daily rate:
| Unpaid days in the year | Pay deducted | 13th month pay | Lost vs full |
|---|---|---|---|
| 0 | ₱0 | ₱30,000.00 | ₱0 |
| 5 | ₱6,818.18 | ₱29,431.82 | ₱568.18 |
| 10 | ₱13,636.36 | ₱28,863.64 | ₱1,136.36 |
| 20 | ₱27,272.73 | ₱27,727.27 | ₱2,272.73 |
Your payroll’s daily rate may differ
Employers convert monthly pay to a daily rate with a “factor”, for example 261 days a year for a five-day week or 313 days for a six-day week. With a factor of 261, the daily rate for ₱30,000 a month is (₱30,000 × 12) ÷ 261 = ₱1,379.31, so 8 unpaid days cost ₱11,034.48 and the 13th month pay is (₱360,000 − ₱11,034.48) ÷ 12 = ₱29,080.46. Check your payslip or ask HR which factor is used. The difference from the ÷ 22 estimate is about ten pesos, so either method is fine for planning.
Lates and undertime
Deductions for lates work the same way. At ₱30,000 a month, one hour is about ₱170.45 (₱1,363.64 ÷ 8). Three hours of lates over the year is ₱511.36, so your 13th month pay is (₱360,000 − ₱511.36) ÷ 12 = ₱29,957.39, only ₱42.61 lower.
Leave types that are often confused
- Vacation and sick leave with pay: included, since you were paid your basic salary.
- Service incentive leave (5 days): if used and paid, included.
- Maternity leave: only the pay you actually received counts. DOLE’s yearly advisory lists women on maternity leave who received a salary differential among those entitled, so that differential counts as pay for the period. Pay received from SSS is not salary from your employer; ask HR how your payslip treats those days.
- Suspension and AWOL days: unpaid, so they reduce the total.
The easy way
Rather than tracking each deduction by hand, enter your unpaid absences in pesos in our calculator, or use the month-by-month mode and type what you actually received each month. It sums and divides for you. Open the 13th Month Pay Calculator →
Related reading
- How to compute 13th month pay (full guide)
- Prorated 13th month pay for resigned or new employees
- Is 13th month pay taxable?
Sources: DOLE Presidential Decree No. 851, the Revised Guidelines on the 13th month pay law and the latest Labor Advisory. For estimation only — confirm with your HR department.