Updated · By John Nazarene Dela Pisa · Rates checked against the law and agency circulars
13th month pay calculator and guide
Your 13th month pay is the basic salary you earned this year, divided by 12. It is required by Presidential Decree 851 for every rank-and-file employee who worked at least a month, due by 24 December, and tax-free up to ₱90,000 a year together with your other bonuses.
The short answer
- Formula: total basic salary earned January to December ÷ 12.
- A full year at ₱25,000 a month: ₱25,000.
- Started in April at ₱25,000: ₱18,750.
- Tax: none on the first ₱90,000 of 13th month and bonuses combined.
The 13th month pay formula
13th month pay = total basic salary earned in the calendar year ÷ 12.
- Counts: basic pay for days worked and for paid leave.
- Doesn’t count (unless your company folds it into basic): overtime, holiday and rest-day premiums, night differential, COLA, allowances, and cash for unused leave.
- Unpaid days (absences, leave without pay, days before you started) aren’t earned, so they lower it.
Worked examples
| Situation | Basic salary earned | 13th month pay |
|---|---|---|
| ₱25,000 a month, January to December | ₱300,000 | ₱25,000 |
| ₱25,000 a month, started in April | ₱225,000 | ₱18,750 |
| ₱25,000 a month, 5 unpaid absences | ₱294,252.87 | ₱24,521.07 |
| ₱700 a day, 6-day week, whole year | ₱210,700 | ₱17,558.33 |
Is 13th month pay taxed?
Only above ₱90,000. The 13th month, the Christmas bonus, productivity incentives and de minimis amounts above their own ceilings share one ₱90,000 exemption a year (NIRC Sec. 32(B)(7)(e)).
- At ₱150,000 a month, the 13th month is ₱150,000: ₱90,000 is tax-free and ₱60,000 is taxed.
- At ₱60,000 a month with a ₱50,000 bonus, the 13th month of ₱60,000 is ₱40,000 tax-free and ₱20,000 taxed, because the bonus used part of the exemption.
Anyone earning up to ₱90,000 a month with no other bonus gets the whole 13th month tax-free. The taxed part usually comes off in December, when payroll squares up the year’s tax; see the withholding tax guide.
Who gets it, and when
- Who: every rank-and-file employee who worked at least a month of the year, including probationary, contractual, project, part-time and kasambahay workers (RA 10361), and people who resigned or were let go.
- When: by 24 December. A half in June and the rest in December is common and allowed.
- Leaving early: the pro-rated amount comes with your final pay.
- Government employees get the Year-End Bonus instead, one month’s basic as of 31 October, in November. See the salary grade guide.
13th month pay questions
How do you compute 13th month pay?
Add up the basic salary you earned from January to December, then divide by 12 (PD 851). Overtime, holiday premiums, night differential and allowances are left out unless your company counts them as basic. Unpaid absences lower it; paid leave does not.
When is the 13th month pay deadline in 2026?
On or before 24 December 2026. Employers may pay half earlier, often in June, and the rest by the deadline. If you leave before December, your pro-rated 13th month is paid with your final pay.
Is 13th month pay taxable?
Only above ₱90,000. Under NIRC Sec. 32(B)(7)(e), the 13th month and all other bonuses together are tax-free up to ₱90,000 a year. The amount above that is added to your taxable pay, usually in December.
Do I get 13th month pay if I resigned or I'm on probation?
Yes. Every rank-and-file employee who worked at least one month of the year gets it, pro-rated: probationary, contractual, project and part-time staff, kasambahay, and anyone who resigned or was let go.
Do government employees get a 13th month?
Their Year-End Bonus is the 13th month: one month's basic salary as of 31 October, paid in November (RA 6686 as amended, DBM Budget Circular 2016-4), plus a ₱5,000 cash gift. It shares the same ₱90,000 tax exemption.
Sources
- Presidential Decree 851 (13th month pay) and its revised guidelines
- NIRC Sec. 32(B)(7)(e), as amended by TRAIN: 13th month and other benefits tax-free up to ₱90,000
- DBM Budget Circulars 2016-4 and 2017-2: Year-End Bonus, Cash Gift and Mid-Year Bonus
Every figure on this page is generated from the same rules file the calculator uses, so the two always agree. PinaSweldo is not affiliated with the BIR, SSS, GSIS, PhilHealth, Pag-IBIG or DOLE. It is an estimate for planning: your employer’s payroll and the agencies have the final word. Spotted a change? Write to [email protected].