13th month pay in the Philippines: one twelfth of the basic salary earned this year
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 16 Oct 2026.In the Philippines the 13th month pay is one twelfth of the basic salary earned in the calendar year. An employee on ₱25,000 a month for the whole year gets ₱25,000; someone who worked 9 months with ₱2,400 of unpaid absences gets ₱18,550. Up to ₱90,000 of it, with other bonuses, is tax-free.
2026 · Rates and rules read from the sources listed on this page (the earliest on 16 Oct 2026); they may have changed since.
Type your monthly basic salary, without allowances.
Enter the months you worked this calendar year, and any unpaid absences deducted.
Add other bonuses received this year to see the tax-exempt part.
Read your 13th month pay and how much of your benefits is taxable.
Every rank-and-file employee in the Philippines who worked at least a month in the year is owed a 13th month pay by 24 December. This page computes it the way the law defines it.
The rule (PD 851). The 13th month pay is one twelfth of the basic salary an employee earned within the calendar year. Basic salary is the pay for work done. Cost-of-living allowances, profit-sharing and allowances that are not part of the basic salary do not count. Overtime, holiday and night-shift premiums are usually left out too, unless your employer's practice includes them.
Pro-rated by itself. Because it is a twelfth of what you earned this year, someone who joined in April or resigned in September gets a smaller amount without any extra step. Unpaid absences and tardiness lower the salary earned, so they lower the 13th month pay as well.
Who is covered. Memorandum Order No. 28 of 1986 removed the old ₱1,000 salary ceiling: all rank-and-file employees are covered, whatever they earn, however they are paid. Managerial employees are not covered by the decree, although many employers pay them too.
Tax. The 13th month pay and other benefits such as a Christmas bonus or productivity incentive are tax-free up to ₱90,000 in total for the year, under the TRAIN law. Type your other bonuses to see the taxable part. If the ceiling changes, type the new one under the tax options.
Not included. The income tax on the taxable part, and commissions or allowances that your company treats as basic salary. An estimate from the law, not legal advice.
Everything runs in your browser; nothing you type is sent anywhere.
Add up the basic salary you earned from January to December, after deductions for unpaid absences, and divide by 12. On ₱25,000 a month for the whole year that is ₱300,000 / 12 = ₱25,000.
The same rule does it: one twelfth of the basic salary earned in the calendar year. Six months at ₱25,000 is ₱150,000 earned, so ₱12,500. A resigned employee receives it with the final pay.
Only above ₱90,000. The 13th month pay and other benefits such as a Christmas bonus or productivity incentive are tax-free up to ₱90,000 in total a year (NIRC section 32(B)(7)(e), as amended by the TRAIN law). The excess is added to taxable pay.
Not later than 24 December. An employer may pay half before the school year opens and the rest by 24 December; a union agreement can set another schedule. The amount is one twelfth of the basic salary earned in the calendar year.
All rank-and-file employees in the private sector who worked at least one month during the calendar year, whatever their salary or how they are paid. Managerial employees and government workers are not covered by PD 851.
No. The decree counts basic salary only: cost-of-living allowances, profit-sharing and allowances that are not part of the basic salary are excluded, and premiums such as overtime are usually left out unless company practice includes them.
Rates and rules change; check the source before you rely on a figure.
Still stuck? Ask about Philippines 13th Month Pay Calculator and anybody who knows can answer. No account needed.
Same job, other tools: Retrenchment Pay Calculator (Philippines) – Retrenchment pay in the Philippines: half a month per year of service, at least one month · Holiday Pay Computation Philippines – Holiday pay computation: 200% on a regular holiday, 130% on a special day, more at night · BIR Tax Calculator 2026 (Withholding Tax) – BIR tax calculator: the Annex E withholding table on your salary after contributions · Salary After Tax Calculator – Old regime or new regime, and what each leaves you every month · PF Calculator – What your PF account will hold when you retire.
On the related tools: SSS Contribution Calculator 2026 – SSS contribution 2026: your Monthly Salary Credit, 5% from you, 10% from the employer.
More for Philippines: all 5 Philippines calculators.