Free tool · Philippine pesos
How much is your 13th month pay?
Enter a monthly salary and the months worked, or each month's pay if it changed. See the amount, how it was computed, and whether any of it is taxed.
Your 13th month pay
₱30,000
Tax-free: it is within the ₱90,000 exemption for the 13th month and other benefits.
- Basic salary earned
- ₱360,000
- Due on or before
- December 24
How it was computed
(₱360,000) ÷ 12 = ₱30,000
Total basic salary earned in the calendar year, less unpaid absences, divided by twelve.
Follows PD 851 and the ₱90,000 exemption. Your employer's policy may be more generous.
The math
How 13th month pay is calculated
Add up the year
Basic salary, Jan to Dec
Only basic salary counts: not allowances, overtime, holiday pay, or night differential, unless your company includes them.
Remove unpaid absences
Earned − unpaid leave
Days you were not paid for are not salary earned. Paid leave still counts.
Divide by twelve
₱360,000 ÷ 12 = ₱30,000
A full year at ₱30,000 a month gives a ₱30,000 13th month pay. Six months gives ₱15,000.
Questions
Frequently asked questions
- How is 13th month pay computed?
- Add up the basic salary earned during the calendar year, subtract unpaid absences, and divide by 12. An employee who earned ₱30,000 a month all year receives ₱30,000.
- Who is entitled to 13th month pay?
- Under Presidential Decree 851, all rank-and-file employees who worked at least one month during the calendar year, however they are paid. Managerial employees are not covered by the law, though many employers give it anyway.
- When must 13th month pay be released?
- On or before December 24. Employers may pay it in two parts, for example half in June and the rest before December 24.
- Is 13th month pay taxable?
- Not up to ₱90,000. The exemption covers the 13th month pay and other benefits such as bonuses combined, so only the part above ₱90,000 is added to taxable income.
- Do resigned employees and new hires get 13th month pay?
- Yes, in proportion to the basic salary they earned during the year. A resigned employee receives it with their final pay; a new hire receives it in December based on the months they worked.
- Are allowances and overtime included?
- Generally not. 13th month pay is based on basic salary, which excludes overtime, holiday pay, night differential, and allowances, unless the company treats them as part of basic salary by policy or practice.
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