13th Month Pay Computation & Calculator
Compute your 2026 13th month pay under Presidential Decree 851 — the official formula is total basic salary earned ÷ 12. Includes proration for partial-year employment, unpaid leave deductions, optional 14th and 15th month pay, and the shared BIR ₱90,000 tax-exempt cap.
13th month pay = total basic salary earned for the year ÷ 12. On a ₱30,000 monthly basic salary with a full year worked, that is ₱30,000.00 — tax-free if combined bonuses stay within the ₱90,000 cap. Work only 7 months and it becomes ₱17,500.00. Tax applies only to the part of your combined bonuses above ₱90,000.
13th Month Pay Calculator Philippines
Based on PD 851 and BIR rules · Tax-exempt up to ₱90,000
Excludes allowances, OT, holiday pay, and night differential.
Use 12 for a full calendar year. Use less if you started or resigned mid-year.
Days you were absent without pay (LWOP). Estimated at 22 working days/month.
Counts toward the ₱90,000 cap. Exclude 14th/15th month pay entered separately below.
13th month pay by monthly basic salary (full year, no unpaid leave)
For a complete calendar year, your 13th month pay equals one month of basic salary. All amounts below are tax-free provided no other covered bonuses push the combined total above the ₱90,000 BIR cap.
| Monthly basic salary | Full year (12 months) | 6 months worked | 3 months worked |
|---|---|---|---|
| ₱15,000.00 | ₱15,000.00 | ₱7,500.00 | ₱3,750.00 |
| ₱20,000.00 | ₱20,000.00 | ₱10,000.00 | ₱5,000.00 |
| ₱25,000.00 | ₱25,000.00 | ₱12,500.00 | ₱6,250.00 |
| ₱30,000.00 | ₱30,000.00 | ₱15,000.00 | ₱7,500.00 |
| ₱40,000.00 | ₱40,000.00 | ₱20,000.00 | ₱10,000.00 |
| ₱50,000.00 | ₱50,000.00 | ₱25,000.00 | ₱12,500.00 |
| ₱75,000.00 | ₱75,000.00 | ₱37,500.00 | ₱18,750.00 |
How 13th month pay is computed under PD 851
- 1. Add up your basic salary earnedCount only basic pay for the months you actually worked this calendar year — no allowances, overtime, holiday pay, or night differential.
- 2. Deduct days without payUnpaid leave (LWOP) is not basic salary earned. A 22-working-day month is the common estimate for the daily rate.
- 3. Divide by 12Total basic salary earned ÷ 12 gives your 13th month pay, prorated automatically if you started or resigned mid-year.
- 4. Apply the ₱90,000 tax-exempt capCombine your 13th month pay with other bonuses. Only the amount above ₱90,000 is taxed using the TRAIN Law brackets.
13th month pay computation: 6 worked examples
The formula is always the same — total basic salary earned ÷ 12. These examples show how it plays out in the situations Filipino employees ask about most.
- Full year, ₱30,000 basic₱30,000 × 12 = ₱360,000 basic earned. ₱360,000 ÷ 12 = ₱30,000 13th month pay, fully tax-free.
- Started in July, ₱25,000 basic₱25,000 × 6 months = ₱150,000. ₱150,000 ÷ 12 = ₱12,500 prorated 13th month pay.
- Resigned in September, ₱22,000 basic₱22,000 × 8 months = ₱176,000. ₱176,000 ÷ 12 = ₱14,666.67, paid with your final pay.
- Full year with 10 days unpaid leave, ₱20,000 basicDaily rate ₱20,000 ÷ 22 = ₱909.09. ₱240,000 − (₱909.09 × 10) = ₱230,909.10. ÷ 12 = ₱19,242.43.
- ₱90,000 basic, full year₱1,080,000 ÷ 12 = ₱90,000 — exactly at the cap, so still tax-free if you receive no other bonuses.
- ₱100,000 basic plus a ₱20,000 Christmas bonus13th month pay ₱100,000 + ₱20,000 bonus = ₱120,000 in benefits. ₱30,000 of that exceeds the ₱90,000 cap and is taxed at your bracket.
Frequently Asked Questions
Who is entitled to 13th month pay in the Philippines?
All rank-and-file employees in the private sector who have worked at least one (1) month during the calendar year, regardless of position, employment status, or how their wages are paid.
When is 13th month pay released?
Employers must pay it on or before December 24 each year. Some companies split it into two — half in May/June and the rest in December.
How is 13th month pay computed?
Total basic salary earned during the calendar year ÷ 12. 'Basic salary' excludes allowances, overtime, holiday pay, night differential, and unused leave conversions.
How much is the 13th month pay of a ₱30,000 monthly salary?
If you worked the full year at ₱30,000 basic monthly salary with no unpaid leave, your 13th month pay is ₱30,000 (₱360,000 total basic ÷ 12) and it is tax-free if your total covered bonuses stay within the combined ₱90,000 cap.
How do I compute a prorated 13th month pay?
Multiply your monthly basic salary by the number of months you actually worked, subtract any unpaid leave, then divide by 12. Example: ₱25,000 × 7 months ÷ 12 = ₱14,583.33.
Is 13th month pay taxable?
Yes, but only the portion exceeding ₱90,000 when combined with other bonuses (e.g. Christmas or performance bonus, productivity incentives) is subject to income tax.
What if I resigned before December?
You're still entitled to a prorated 13th month pay based on the number of months you actually worked that year, paid as part of your final pay.
Do unpaid leaves reduce my 13th month pay?
Yes. Days without pay (LWOP) are not part of basic salary earned, so they lower the total that gets divided by 12. This calculator estimates the deduction using a 22-working-day month.
Is 13th month pay the same as a Christmas bonus?
No. 13th month pay is mandatory under PD 851. A Christmas bonus is voluntary and given at the employer's discretion, though both count toward the ₱90,000 tax-exempt cap for benefits.
Are SSS, PhilHealth and Pag-IBIG deducted from 13th month pay?
No. Mandatory contributions are computed on your monthly basic salary, not on your 13th month pay. Only income tax can be withheld, and only on the portion above ₱90,000.
Do government employees get 13th month pay?
Government workers receive a year-end bonus and cash gift under separate laws instead of PD 851. This calculator follows the private-sector PD 851 rules.
Are kasambahay and probationary employees covered?
Yes. Kasambahay (domestic workers) are entitled to 13th month pay under RA 10361, and probationary, contractual, and project-based rank-and-file employees are covered once they have worked at least one month in the year.
Is 14th or 15th month pay mandatory in the Philippines?
Neither is required by PD 851, unlike statutory 13th month pay. They may be enforceable when promised in an employment contract, collective bargaining agreement (CBA), or established company practice.
How are 14th and 15th month pay computed and taxed?
Amounts and proration follow employer terms, not automatically the PD 851 formula. Covered 13th, 14th, and 15th month pay and other covered bonuses share one ₱90,000 annual tax exemption. A ₱50,000 13th month plus a ₱50,000 14th month produces ₱10,000 in taxable excess.
Can an employer cancel 14th or 15th month pay if profits fall?
It depends on the terms. A genuinely discretionary, conditional bonus may depend on profits, but falling profits do not automatically justify removing a contractual, CBA, or established benefit. Check the written terms and consult DOLE about your circumstances.