01
Full year
Maria earns ₱30,000 a month and worked the whole year with no unpaid absences.
- 12 months · ₱30,000.00 × 12
- ₱360,000.00
- Total basic salary for the year
- ₱360,000.00
- ÷ 12
- ₱30,000.00
13th month pay calculator
Enter the monthly basic salary and the months worked this year. You get the 13th month pay, the computation step by step, and how much of it is tax-free.
- PD 851
- DOLE Labor Advisory 16-25
- TRAIN ₱90,000 exemption
₱
Basic pay only: no overtime, holiday pay, night differential or allowances.
Time worked in 2026
months
Half months are fine, for example 6.5.
13th month pay · 2026
₱30,000.00 Pay on or before December 24, 2026
Computation
- 1Basic salary earned₱360,000.00
- 12 months · ₱30,000.00 × 12₱360,000.00
- 2Total basic salary for the year₱360,000.00
- 3Divided by 12₱360,000.00 ÷ 12 = ₱30,000.00
Tax
Tax-exempt
₱30,000.00
Taxable
₱0.00
13th month pay and other benefits are tax-free up to ₱90,000.00 a year combined.
An estimate for guidance, not legal or tax advice. Your employer’s payroll records and company policy decide the final amount.
How to compute
How to compute 13th month pay
Add up the basic salary actually earned from January to December, then divide by 12. That is the minimum the law requires: one twelfth of the total basic salary earned within the calendar year.
Total basic salary earned in the year÷ 12= 13th month pay
Worked examples
02
Hired mid-year (6 months)
Jun started on 1 July at ₱24,000 a month. He worked 6 months this year, so his 13th month is prorated.
- 6 months · ₱24,000.00 × 6
- ₱144,000.00
- Total basic salary for the year
- ₱144,000.00
- ÷ 12
- ₱12,000.00
03
Resigned in April
Ana earned ₱20,000 a month and resigned; her last day was 30 April. She gets a prorated 13th month with her final pay.
- Jan–Apr · 4 × ₱20,000.00
- ₱80,000.00
- Total basic salary for the year
- ₱80,000.00
- ÷ 12
- ₱6,666.67
04
With a raise
Carlo earned ₱25,000 a month until June and ₱28,000 from July. Add each month as it was actually paid.
- Jan–Jun · 6 × ₱25,000.00
- ₱150,000.00
- Jul–Dec · 6 × ₱28,000.00
- ₱168,000.00
- Total basic salary for the year
- ₱318,000.00
- ÷ 12
- ₱26,500.00
05
With unpaid leave
Liza earns ₱26,100 a month, works Monday to Friday (261 days a year) and took 5 days of leave without pay.
- 12 months · ₱26,100.00 × 12
- ₱313,200.00
- Less unpaid absences · 5 × ₱1,200.00 a day
- − ₱6,000.00
- Total basic salary for the year
- ₱307,200.00
- ÷ 12
- ₱25,600.00
Your own numbers
Open any example, then change the salary, the dates or a single month. The link keeps your inputs, so you can send it to HR or payroll.
The rules
Who gets it, what counts, and when
Who is entitled
- All rank-and-file employees in the private sector who worked at least one month in the calendar year, whatever their position, employment status or how they are paid.
- Probationary, contractual, part-time and piece-rate workers. Employees with two or more private employers get it from each of them.
- Employees paid a fixed or guaranteed wage plus commission.
- Employees who resigned or were terminated during the year, in proportion to the time worked.
- Kasambahay (domestic workers), under the Batas Kasambahay.
Not covered by PD 851
- Managerial employees (many companies still give it by policy).
- Government employees, who get year-end benefits under a separate law.
- Workers paid purely by commission, boundary or task, or a fixed amount per job regardless of time spent (piece-rate workers are covered).
What counts as basic salary
- Regular pay for work done, including paid leave days
- COLA and other allowances only if integrated into basic pay
- Sales commissions that are part of the pay for the work
Not part of basic salary
- Overtime, premium pay and night differential
- Holiday pay
- Cost-of-living allowance (COLA) and other allowances
- Cash conversion of unused vacation and sick leave
- Profit sharing, productivity bonuses and incentive-type commissions
Anything on the “not” list is included if a contract, CBA or company practice treats it as part of basic salary. Unpaid absences reduce the basic salary earned, so they reduce the 13th month too.
When it must be paid
- On or before 24 December every year. DOLE allows no deferral.
- An employer may pay half before the school year opens and the rest by 24 December.
- Resigned or separated employees can ask for their prorated amount with their final pay.
- Employers report compliance on the DOLE Online Compliance Portal by 15 January of the following year.
Tax on 13th month pay
- 13th month pay and other benefits (bonuses, mid-year and Christmas bonuses, productivity incentives) are tax-free up to ₱90,000 a year combined.
- Only the amount above ₱90,000 is taxable, and it is added to regular taxable pay.
- Example: ₱40,000 of other benefits during the year, then a ₱60,000 13th month. ₱50,000 of the 13th month is tax-free and ₱10,000 is taxable.
- 13th month pay is not counted as regular wage for SSS and PhilHealth contributions, so none are deducted from it.
FAQ
Questions people ask
How do you compute 13th month pay in the Philippines?+
Add up the basic salary earned from January to December and divide it by 12. For an employee on ₱30,000 a month who worked the whole year, that is ₱360,000 ÷ 12 = ₱30,000. Overtime, holiday pay, night differential and allowances are left out; unpaid absences come off the basic salary first.
How is 13th month pay computed for 6 months of work?+
The same way: basic salary earned in those 6 months, divided by 12. At ₱24,000 a month, 6 months is ₱144,000, and ₱144,000 ÷ 12 = ₱12,000. This is the prorated 13th month for someone hired on 1 July or who left at the end of June.
Do resigned employees get 13th month pay?+
Yes. An employee who resigned or was terminated before December gets a prorated 13th month: one twelfth of the basic salary earned from January up to the last day of work. It can be claimed with the final pay.
Do unpaid absences and leave without pay reduce 13th month pay?+
Yes. Only basic salary actually earned counts, so days of leave without pay lower the total. Paid leave counts as earned salary, so it does not reduce the 13th month.
When is the deadline for 13th month pay?+
On or before 24 December each year. Employers may pay half before the opening of the school year and the other half by 24 December. DOLE does not allow deferral or exemption requests.
Is 13th month pay taxable?+
It is tax-free up to ₱90,000 a year, together with other benefits such as bonuses. Only the part above ₱90,000 is taxable. SSS and PhilHealth contributions are not deducted from it.
Is a Christmas bonus the same as 13th month pay?+
A Christmas bonus, mid-year bonus or other cash bonus can count as the 13th month if it is at least one twelfth of the basic salary for the year. If it is less, the employer pays the difference. Cash and stock dividends, allowances and non-cash benefits do not count.
Are managers entitled to 13th month pay?+
The law covers rank-and-file employees. Managerial employees, those who can hire, fire or discipline, or effectively recommend it, are not covered by PD 851, though many companies include them by policy.
Stop computing it by hand.
Causaro accrues the 13th month from basic pay every cutoff, prorates it in final pay and tracks the ₱90,000 exemption across the year.