13th Month Pay Calculator Philippines 2025-2026
Calculate your 13th month pay based on PD 851. Includes pro-rated computation for partial year. Tax-free up to P90,000.
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Your fixed monthly basic pay (excluding allowances, OT, etc.)
13th Month Pay in the Philippines
The 13th month pay is a mandatory benefit for private sector employees in the Philippines, established under Presidential Decree No. 851. It's essentially an extra month's pay given as a year-end bonus.
13th Month Pay Formula
13th Month Pay = Total Basic Salary Earned ÷ 12
For full-year employees: Monthly Salary × 12 ÷ 12 = Monthly Salary
For partial-year: Monthly Salary × Months Worked ÷ 12
Who Is Entitled?
- All rank-and-file employees in the private sector
- Employees who worked at least one month during the calendar year
- Regular, probationary, casual, and project-based employees
- Fixed-term and seasonal workers (pro-rated)
Who Is NOT Entitled?
- Government employees (covered by different rules)
- Managerial employees (executives, supervisors with hiring/firing powers)
- Household helpers (kasambahay) - separate rules apply
- Workers paid purely on commission basis
What's Included in Basic Salary?
| Included | Excluded |
|---|---|
| Fixed monthly salary | Overtime pay |
| COLA (if fixed) | Holiday pay premium |
| Night differential | |
| Commissions | |
| Allowances (transportation, meal) | |
| Performance bonuses |
Tax Treatment
- First ₱90,000 of 13th month pay and bonuses is tax-exempt
- This limit covers ALL bonuses (13th month + Christmas bonus + other bonuses)
- Any amount above ₱90,000 is added to taxable income
Payment Schedule
- Deadline: On or before December 24
- Optional: Some companies give 50% by May 31 (mid-year bonus)
- Penalty: Non-compliance can result in fines and legal action
Tip: Keep your payslips as proof of basic salary. If there's a dispute about
your 13th month pay computation, you can file a complaint with DOLE.
Frequently Asked Questions
How is 13th month pay calculated?
The 13th month pay is calculated by dividing your total basic salary earned during the year by 12. For employees who worked less than 12 months, it's pro-rated based on actual months worked.
Is 13th month pay taxable?
The 13th month pay is tax-free up to ₱90,000. Any amount exceeding this threshold becomes part of your taxable income. This limit includes other bonuses and benefits received during the year.
When should 13th month pay be given?
By law, 13th month pay must be given on or before December 24 of each year. Some employers release half by May 31 (mid-year bonus) and the balance by December 24.
Who is entitled to 13th month pay?
All rank-and-file employees in the private sector who have worked at least one month during the calendar year are entitled to 13th month pay. This includes regular, probationary, and casual employees.
What is included in basic salary for 13th month computation?
Basic salary includes only your fixed monthly pay for regular work hours. It excludes overtime pay, holiday pay, night differential, allowances, commissions, and other variable compensation.