13th Month Pay Calculator

Your 13th month pay under PD 851, prorated if you started mid-year or resigned.

13th month pay

13th month pay₱10,500.00Your employer must pay it by December 24. All of it is tax-free.

Basic pay this year: ₱126,000.00
Divided by: 12
13th month pay: ₱10,500.00
Tax check
With other bonuses: ₱10,500.00
Tax-free ceiling: ₱90,000.00
Tax-free portion: ₱10,500.00
Taxable excess: ₱0.00
All of it is tax-free.

Uses official rates last checked 2026-10-07. How it’s computed · Sources · Change your numbers

13th month pay₱10,500.00

How to use this calculator

Enter your monthly basic salary. If it changed this year, use the average.
Enter months worked and any pay lost to unpaid absences.
Add other bonuses to see if your total passes the tax-free limit.

How it’s computed

13th month pay = total basic salary earned during the calendar year ÷ 12.

Total basic salary = monthly basic salary × months worked − deductions for unpaid absences.

Tax: if your 13th month pay plus other benefits exceeds ₱90,000.00 for the year, only the excess is taxable.

Example

Ana earns ₱18,000.00 a month and started on June 1, so she works 7 months this year.

Basic salary earned: ₱18,000.00 × 7 = ₱126,000.00.
13th month pay: ₱126,000.00 ÷ 12 = ₱10,500.00, all tax-free.
Next year, working all 12 months, she gets ₱18,000.00, a full month’s salary.

Rates and sources used

13th month pay, effective 1975-12-16. All rank-and-file employees who worked at least one month in the calendar year, regardless of salary or how they are paid. Source: Presidential Decree No. 851 and its Revised Guidelines: https://lawphil.net/statutes/presdecs/pd1975/pd_851_1975.html.Last checked 2026-10-07
Tax-free ceiling, effective 2023-01-01. 13th month pay and other benefits are tax-free up to ₱90,000.00 a year combined. Source: RA 10963 (TRAIN) Sec. 24(A)(2)(a) and NIRC Sec. 32(B)(7)(e): https://lawphil.net/statutes/repacts/ra2017/ra_10963_2017.html.Last checked 2026-10-07

Frequently asked questions

When should the 13th month pay be released?

On or before December 24. Employers may pay half before the opening of the school year and the rest by December 24.

I resigned before December. Do I still get it?

Yes. Employees who resign or are separated get a prorated 13th month pay for the basic salary they earned during the year, usually included in their final pay.

Is overtime included in the 13th month pay?

No. Only basic salary counts. Overtime, holiday and premium pay, night differential, and allowances are excluded unless your company treats them as part of basic pay.

Do managers get 13th month pay?

The law covers rank-and-file employees. Many companies still give it to managers as a company benefit.

When is the 13th month pay taxed?

Only the amount above ₱90,000, counting your 13th month pay together with other bonuses and benefits for the year. The excess is added to your taxable compensation.

This calculator provides estimates for informational purposes only. Actual payroll, taxes, contributions, loan charges, and utility costs may vary depending on your employer, provider, government rules, or specific circumstances.