13th month pay calculator
Work out the 13th month pay due under Philippine law, including prorated pay for mid-year hires and resignations, unpaid absences, salary changes, and how much of it is tax-exempt.
13th month pay
₱0.00
- Total basic salary earned
- ₱0.00
- Tax-exempt portion
- ₱0.00
- Taxable portion
- ₱0.00
Formula: total basic salary earned ÷ 12. Due on or before December 24.
Basis: PD 851 and its Revised Guidelines; NIRC Sec. 32(B)(7)(e) as amended by RA 10963.
Hiring or paying staff this year?
Draft employment contracts that state pay and benefits correctly, with every rule cited to Philippine law.
Try Batayan free for 14 daysGeneral information, not legal or tax advice. Special arrangements (commission-based pay, collective bargaining agreements, company policies that pay more) can change the amount.
13th month pay rules in the Philippines
Who is entitled to 13th-month pay?
All rank-and-file employees, regardless of how their wages are paid, who have worked at least one month during the calendar year (PD 851 and its Revised Guidelines). Managerial employees are not covered by the law, though many employers pay them one by policy or contract.
What counts as basic salary?
The pay for services actually rendered. It excludes cost-of-living allowances, overtime, premium and holiday pay, night differential, profit-sharing, and the cash value of unused leave, unless these have been integrated into the basic salary by agreement or company practice.
When must 13th-month pay be paid?
On or before December 24 of each year. Employers may pay half before the opening of the school year and the rest by December 24.
What about employees who resigned or were hired mid-year?
They receive a proportionate amount: 1/12 of the basic salary they actually earned during the year, paid when they separate (for resignations) or by December 24.
Is 13th-month pay taxable?
It is tax-exempt up to ₱90,000.00, a ceiling shared with other bonuses and similar benefits received in the same year (NIRC Sec. 32(B)(7)(e), as amended by the TRAIN law). Only the excess is taxable.