13th Month Pay Calculator (Philippines)

Work out your 13th month pay. It equals the total basic salary you earned during the year divided by 12 — pro-rated if you worked less than the full year.

In the Philippines, 13th month pay is a mandatory benefit for rank-and-file employees under Presidential Decree 851. It equals one-twelfth of the total basic salary you earned during the calendar year. If you worked the full year at a steady basic salary it comes to exactly one month's basic pay; if you joined partway through or had unpaid periods, it is pro-rated.

How 13th month pay is calculated

13th month pay = total basic salary earned in the year ÷ 12
= monthly basic × months worked ÷ 12
Monthly basic ₱20,00013th month pay
12 months₱20,000.00
9 months₱15,000.00
6 months₱10,000.00
3 months₱5,000.00

Worked example

If your monthly basic is ₱18,000 and you worked 8 months, your total basic earned is ₱144,000, so your 13th month pay is 144,000 ÷ 12 = ₱12,000.00.

What counts and when it is paid

Only basic salary counts — overtime, holiday premiums, night differential, allowances and cash bonuses are excluded. Absences without pay reduce the basic earned and therefore the 13th month pay. Employers must pay it on or before 24 December each year. The benefit is tax-exempt up to ₱90,000 combined with other 13th-month and "other benefits".

Frequently asked questions

How is 13th month pay computed?
Add up your basic salary for the year and divide by 12. A full year at a steady basic equals one month's pay.
Does overtime count toward 13th month pay?
No. Only basic salary is included; overtime, allowances and bonuses are excluded.
Is 13th month pay taxable?
It is tax-free up to ₱90,000 combined with other 13th-month pay and benefits; any excess is taxable.
When must it be paid?
On or before 24 December each year.

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Estimates for general guidance, not legal or tax advice. Company policy and rules can vary; confirm with your employer or the current DOLE guidelines.
Written by the CalcPine team · Reviewed for accuracy · Last updated 16 July 2026 · Method: total basic salary earned in the year ÷ 12.