13th month pay calculator
Work out your 13th month pay in the Philippines from the basic salary you earned this year, including part-year and resigned employees, and see how much is tax-free.
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13th month pay
Enter your basic salary to see your 13th month pay.
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How to use the 13th month pay calculator
- Choose how you're paid. Monthly salary for a fixed monthly rate, month by month if your pay changed during the year, or daily rate if you're paid per day.
- Enter your basic salary. Use basic pay only. Leave out overtime, holiday pay, night differential, allowances and COLA.
- Enter the time you worked. Months worked (decimals are fine) or days paid. If you joined or left this year, count only that time.
- Add other bonuses if you want the tax split. A Christmas bonus or productivity incentive shares the same ₱90,000 tax-free limit.
The 13th month pay formula
13th month pay = total basic salary earned in the calendar year ÷ 12.
That is the minimum under Presidential Decree No. 851 and its Revised Guidelines. Basic salary means what your employer paid you for services rendered, without allowances and benefits that aren't part of basic pay. Unpaid leave and absences come off first, because you didn't earn that salary.
For a part year, nothing special is needed: the total for the months you worked, divided by 12, is already the prorated amount. Piece-rate workers use their total earnings for the year, and employees on a fixed wage plus commission use wage and commission together.
Examples
| Situation | Total basic salary | 13th month pay |
|---|---|---|
| ₱20,000 a month, all year | ₱240,000 | ₱20,000.00 |
| ₱20,000 a month, resigned after 6 months | ₱120,000 | ₱10,000.00 |
| ₱18,000 a month, ₱3,000 unpaid leave | ₱213,000 | ₱17,750.00 |
| ₱20,000 to June, ₱22,000 from July | ₱252,000 | ₱21,000.00 |
| ₱645 a day, 312 days paid | ₱201,240 | ₱16,770.00 |
Tax, due date and common mistakes
- Tax-free up to ₱90,000. Section 32(B)(7)(e) of the Tax Code, as amended by RA 10963 (TRAIN), excludes 13th month pay and other benefits from income up to ₱90,000 a year combined. With ₱20,000 of 13th month pay and a ₱75,000 Christmas bonus, ₱5,000 is taxable.
- Due by 24 December. Employers then report compliance to DOLE online by 15 January.
- Don't divide by the months you worked. It is always ÷ 12. Six months of salary ÷ 6 would give a full month's pay, which is twice the legal minimum.
- A Christmas bonus doesn't replace it unless your employer says it is your 13th month pay and it is at least as much.
This calculator gives an estimate of the legal minimum, not legal or tax advice. Your contract or company policy can give more. Rules as of October 2026. Sources: Presidential Decree No. 851; Revised Guidelines on the Implementation of the 13th Month Pay Law; DOLE Labor Advisory No. 16, Series of 2025; RA 10963 (TRAIN), section 32(B)(7)(e); RA 10361 (Kasambahay Law), section 25.
Frequently asked questions
How is 13th month pay computed?
Add up the basic salary you actually earned from January to December, then divide by 12. On ₱20,000 a month for the whole year that is ₱240,000 ÷ 12 = ₱20,000. Unpaid absences lower the total, because they lower the basic salary you earned.
Do I get 13th month pay if I resigned?
Yes. Under the Revised Guidelines on PD 851, an employee who resigned or was terminated before the payout gets 13th month pay in proportion to the time worked that year. Six months at ₱20,000 is ₱120,000 ÷ 12 = ₱10,000. It is usually paid with your final pay.
Is overtime or holiday pay included?
No, unless your company treats it as part of basic salary by contract, policy or long practice. The guidelines leave out overtime, premium pay, night shift differential, holiday pay, cost-of-living allowance and the cash value of unused leave.
When must 13th month pay be paid?
On or before 24 December. An employer may pay half before the school year opens and the rest by 24 December. DOLE does not accept requests to defer or skip it.
Is 13th month pay taxed?
Only above ₱90,000. The Tax Code, as amended by the TRAIN law, exempts 13th month pay and other benefits such as a Christmas bonus or productivity incentive up to ₱90,000 a year in total. The excess is taxed with your regular compensation.
Are managers and kasambahay entitled?
PD 851 covers rank-and-file employees in the private sector who worked at least one month in the year, whatever their position title or how they are paid. Managerial employees are not covered by the decree, though many companies pay them anyway. Domestic workers get 13th month pay under the Kasambahay Law (RA 10361).