13th Month Pay Calculator (2026)
Free calculator for Filipino 13th month pay per Presidential Decree 851. Pro-rated for partial year, tax-exempt up to ₱90,000.
Quick 13th Month Pay Calculator
What is 13th month pay?
Mandated by Presidential Decree 851 (1975), 13th month pay is a statutory benefit for all rank-and-file Filipino employees who have worked at least one month during the calendar year. It must be paid on or before December 24 of each year.
This is non-negotiable. Employers cannot waive it through contract. Failure to pay incurs DOLE penalties + employee money claims.
Computation formula
The DOLE-mandated formula:
What "basic salary" includes: Regular monthly base pay only.
What "basic salary" EXCLUDES:
- Overtime pay
- Holiday pay
- Night differential
- Allowances (transportation, meal, etc.)
- Cost-of-living allowances (COLA)
- Bonuses (Christmas bonus, performance bonus, mid-year bonus)
- Cash equivalent of unused leave
Tax exemption rules
Per BIR Revenue Regulations 4-2018 (TRAIN Law implementation):
- 13th month pay + other benefits up to ₱90,000/year: TAX-EXEMPT
- Amount above ₱90,000/year: SUBJECT TO INCOME TAX
Important: The ₱90K cap covers 13th month + ALL other "de minimis" benefits combined. If you give a Christmas bonus on top of 13th month, both count toward the ₱90K limit.
Withholding: For employees whose 13th month exceeds ₱90K, employer must withhold tax on the excess at the employee's applicable bracket rate.
Common scenarios
Scenario 1: Full-year employee earning ₱30K/month
- Total basic earned: ₱30,000 × 12 = ₱360,000
- 13th month: ₱360,000 ÷ 12 = ₱30,000
- Tax-exempt (under ₱90K cap): YES, full amount tax-free
Scenario 2: Employee hired in July, earning ₱25K/month
- Total basic earned (Jul-Dec): ₱25,000 × 6 = ₱150,000
- 13th month: ₱150,000 ÷ 12 = ₱12,500
- (Pro-rated for partial year)
Scenario 3: High earner with ₱150K/month + ₱50K Christmas bonus
- Total basic earned: ₱150,000 × 12 = ₱1,800,000
- 13th month: ₱1,800,000 ÷ 12 = ₱150,000
- 13th month + bonus = ₱200K → tax-exempt up to ₱90K, taxable above
- Taxable portion: ₱110,000 (subject to BIR withholding at applicable bracket)
Frequently asked questions
Is 13th month pay mandatory in the Philippines?
Yes, required by PD 851. All rank-and-file employees who worked at least 1 month during the calendar year are entitled. Cannot be waived.When is the deadline to pay 13th month?
On or before December 24 each year. Some companies pay early-December for cash flow.Can my employer split 13th month into installments?
Yes, common practice is half in May/June, half in November/December. As long as full payment is on or before Dec 24.Are managers entitled to 13th month?
Per PD 851, only "rank-and-file" employees are mandated. Managers are technically not entitled by law but most companies pay them anyway as policy.How does WORKSPHR handle 13th month?
Auto-computed each cycle. Tracks YTD basic salary. Payout in payroll automatically before Dec 24. Learn more →