13th month pay calculator
Work out your 13th month pay from your basic salary, including partial years and unpaid absences. See how much is tax-free under the ₱90,000 cap.
Your 13th month pay
—
| Total basic salary earned | |
| 13th month pay (÷ 12) | |
| Other bonuses and benefits | |
| Tax-free portion (up to ₱90,000) | |
| Taxable excess | |
| Estimated tax on the excess | |
| Estimated 13th month after tax |
Estimate only. Tax on the excess uses TRAIN brackets on your basic salary and ignores SSS, PhilHealth, and Pag-IBIG, so actual withholding may be a little lower. Employers must pay 13th month pay on or before December 24.
Next: see your full take-home in the tax calculator, or grow your 13th month with the MP2 calculator.
How 13th month pay is computed
The formula under Presidential Decree 851 is simple: total basic salary earned in the year ÷ 12. "Earned" matters. Unpaid absences and lates come off, and if you started or left mid-year you only count the months you worked.
| Situation | Basic salary earned | 13th month pay |
|---|---|---|
| ₱25,000 a month, full year | ₱300,000 | ₱25,000 |
| ₱25,000 a month, started in April (9 months) | ₱225,000 | ₱18,750 |
| ₱20,000 Jan–Jun, then ₱24,000 Jul–Dec | ₱264,000 | ₱22,000 |
| ₱30,000 a month, full year, ₱6,000 unpaid absences | ₱354,000 | ₱29,500 |
The ₱90,000 tax-free cap
The TRAIN Law (RA 10963 (TRAIN)) exempts up to ₱90,000 a year of 13th month pay and other benefits combined, such as a Christmas bonus or productivity incentive. Most employees earning up to ₱90,000 a month in basic salary, with no other bonuses, receive their whole 13th month tax-free. If the total goes over ₱90,000, only the excess is taxed at your regular income tax rate.
Want to see what's left of your regular salary after tax and contributions? Use the tax calculator. Planning to save your 13th month? The MP2 calculator shows how it could grow with Pag-IBIG MP2.
Frequently asked questions
How is 13th month pay computed?
Add up the basic salary you actually earned from January to December, then divide by 12. If your basic salary is the same every month and you worked the whole year, your 13th month pay equals one month's basic salary.
Who is entitled to 13th month pay?
All rank-and-file employees in the private sector who worked at least one month during the calendar year, regardless of how they are paid, under Presidential Decree 851. Managerial employees are not covered by the law, though many companies pay them anyway.
When must 13th month pay be released?
On or before December 24 of each year. Employers may pay it in two parts, for example half in June and half in December.
Is 13th month pay taxable?
Under the TRAIN Law, 13th month pay and other benefits are tax-free up to ₱90,000 a year combined. Only the amount above ₱90,000 is added to your taxable compensation.
I resigned or started mid-year. Do I still get 13th month pay?
Yes. You get a pro-rated amount: the basic salary you earned during the months you worked, divided by 12. Choose the number of months you worked, or enter each month's salary.
Are overtime, night differential, and allowances included?
Usually not. 13th month pay is based on basic salary only. Overtime, holiday pay, night differential, and allowances are excluded unless your employment contract or company policy treats them as part of basic pay.
Do unpaid absences reduce my 13th month pay?
Yes. Unpaid leaves, absences, and tardiness reduce the basic salary you earned, so they also reduce your 13th month pay. Paid leaves do not.