13th Month Pay Calculator
Compute your 13th month pay and check the ₱90,000 tax-exempt ceiling.
Under Presidential Decree No. 851, all rank-and-file employees in the private sector who have worked for at least one month during the calendar year are entitled to 13th month pay, to be paid on or before December 24 each year.
The formula set by DOLE is simple: total basic salary actually earned for the year ÷ 12. This applies even if you didn't work the full year — the total is still divided by 12, never by the number of months you actually worked. "Basic salary" covers your base pay and paid leave conversions, but excludes overtime pay, night shift differential, holiday premiums, allowances, and discretionary bonuses.
13th month pay (combined with other similar benefits, like a Christmas bonus) is tax-exempt up to ₱90,000 per year. Any amount beyond that combined ceiling is added back to your taxable income and subjected to withholding tax.
Who is covered?
Rank-and-file employees in the private sector are generally covered regardless of job title, employment status, or how wages are paid, provided they worked for at least one month in the calendar year. Employees who resign or are terminated can still be entitled to a proportionate amount based on basic salary earned before separation.
What belongs in basic salary?
Overtime, night differential, holiday premiums, most allowances, and cash conversion of unused leave are usually excluded unless an agreement, policy, or established company practice treats a payment as part of basic salary. Covered employers must release the required amount no later than December 24, although part may be paid earlier.
Want your regular monthly breakdown too? Try the Salary Calculator for SSS, PhilHealth, Pag-IBIG, withholding tax, and net take-home pay.
Frequently asked questions
Thirteenth-month pay and other benefits are tax-exempt up to the combined statutory ceiling stored in this calculator, currently ₱90,000. Any amount above the combined ceiling is generally added to taxable compensation, so a separate Christmas bonus can affect how much remains exempt.
A covered rank-and-file private-sector employee who worked at least one month during the calendar year is generally entitled to a proportionate amount even after resignation or termination. It is based on total basic salary actually earned during that calendar year, divided by 12.
Overtime, night differential, holiday premiums, and allowances are generally excluded from basic salary for this calculation. They may be included if an agreement, company policy, or established practice treats a particular payment as part of basic salary.
Covered employers must pay it no later than December 24. An employer may split the payment, but the required balance must still be released by the statutory deadline.