13th Month Pay Calculator 2026
Calculate your 13th month pay including pro-rated computation for partial year work.
How 13th Month Pay is Computed
13th Month Pay = (Total Basic Salary Earned During the Year) ÷ 12All rank-and-file employees who have worked for at least one month are entitled to 13th month pay, which must be paid on or before December 24 of each year. Only basic salary is included — overtime, holiday pay, night differential, and other allowances are excluded.
The first ₱90,000 of the 13th month pay (and other benefits like bonuses) is tax-exempt. Any amount exceeding ₱90,000 is subject to income tax.
Legal basis: Presidential Decree No. 851, as amended by Memorandum Order No. 28
Read our complete 13th Month Pay guide →Frequently Asked Questions
How is 13th month pay calculated in the Philippines?
13th month pay is calculated as the total basic salary earned during the calendar year divided by 12. For employees who worked less than 12 months, it is pro-rated based on the number of months worked. Only basic salary is included — overtime, holiday pay, and allowances are excluded.
When must 13th month pay be given?
Under PD 851, employers must pay the 13th month pay on or before December 24 of each year. Some employers give half in June and the remaining half in December.
Is 13th month pay taxable?
The first PHP 90,000 of 13th month pay and other benefits combined is tax-exempt. Any amount exceeding PHP 90,000 is subject to income tax.