13th Month Pay Calculator

What 13th month pay is

13th month pay is a mandatory benefit in the Philippines: every rank-and-file employee who has worked at least one month in a calendar year is entitled to it, and employers must pay it on or before December 24. It is separate from any Christmas bonus, which is given at the employer's discretion.

How it's calculated

The legal formula is simple — your total basic salary earned during the year, divided by 12:

13th month pay = total basic salary earned ÷ 12

If you worked the full year at a steady salary, that works out to exactly one month's basic pay. This calculator estimates it from your monthly basic salary and the number of months you worked, so if you joined partway through the year you still get the correct prorated amount. For example, ₱20,000 a month for 6 months is ₱120,000 total basic, giving ₱10,000 of 13th month pay.

What counts as "basic salary"

Only basic salary counts. By law, these are generally excluded from the computation:

• Overtime pay, holiday pay, and night-shift differential
• Allowances and cash-equivalent benefits not part of basic pay
• Unused leave conversions and other monetary benefits

If your pay varied month to month, add up only the basic-salary portion you actually earned and divide by 12 for the exact figure.

Is 13th month pay taxed?

13th month pay and other benefits are tax-exempt up to a combined ceiling of ₱90,000. Only the amount above ₱90,000 is added to your taxable income. For most employees the full 13th month pay falls under the exemption.

FAQ

Who is entitled to it?

All rank-and-file employees, regardless of position or how they're paid, as long as they worked at least one month during the calendar year. Managerial employees are not legally covered, though many companies still grant it.

What if I resigned during the year?

You're still entitled to a prorated 13th month pay for the months you worked, usually released as part of your final pay.

Is this 13th month pay calculator free and private?

Yes, it's free with no sign-up, and your salary figures are calculated in your browser. Nothing you enter is sent to a server or stored.

Is 13th month pay the same as a Christmas bonus?

No. 13th month pay is a legally mandated benefit that every covered rank-and-file employee must receive on or before December 24. A Christmas bonus is separate and given purely at the employer's discretion, so you can receive both.

Is overtime or holiday pay included in the computation?

No. Only basic salary counts. Overtime pay, holiday pay, night-shift differential, allowances, and unused leave conversions are excluded, so enter only the basic-salary portion you earned during the year.

Is 13th month pay taxable?

It's tax-exempt up to a combined ceiling of ₱90,000 for 13th month pay and other benefits. Only the amount above ₱90,000 is added to your taxable income, so for most employees the full benefit is tax-free.

This is an estimate for guidance only — confirm exact figures with your employer or the DOLE.