---
title: Why Is There a Negative 13th Month Pay in an Employee’s Final Pay?
---

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1. [Sprout](https://guide.sprout.ph/?hsLang=en)
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3. [13th Month](https://guide.sprout.ph/sprout-payroll?hsLang=en#13th-month)

# Why Is There a Negative 13th Month Pay in an Employee’s Final Pay?

### **Overview**

The **13th Month Pay** included in an employee’s Final Pay is calculated on a **prorated basis**.

A negative 13th Month Pay amount may appear when the **manually added 13th Month Pay exceeds the amount calculated by the system based on the employee’s prorated entitlement**. In this case, the system deducts the excess amount, which may result in a negative 13th Month Pay amount in the Final Pay.

---

### **Resolution**

If an employee should not have a negative 13th month pay in their final settlement, you can disable 13th-month pay from the Final Pay settings in the Company Profile.

***Sprout Payroll\>Setup\>Company Profile\>Payroll Computation\>Final Pay Computation***

![](https://guide.sprout.ph/hs-fs/hubfs/undefined-Oct-09-2026-02-05-29-5164-PM.png?width=532&height=220&name=undefined-Oct-09-2026-02-05-29-5164-PM.png)

Once the setting has been updated:

1. Unpost the Final Pay.
2. Reprocess the Final Pay.
3. Review the Final Pay to confirm that the negative 13th Month Pay is no longer reflected.

---

### **Important Note**

If the negative 13th Month Pay amount is **intended to be deducted from the employee's Final Pay**, no changes are necessary. The negative amount should remain as part of the Final Pay computation.

Before removing or excluding the 13th Month Pay from the Final Pay settings, verify whether the amount should legitimately be deducted based on the employee's 13th Month Pay computation.

---

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