13th Month Pay Calculator (2026)

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)