13th Month Pay Calculator
Updated August 2026 · Free · No sign-up
Calculate your 13th month pay — the Philippines' mandatory year-end benefit: total basic salary ÷ 12, prorated for months worked, with the ₱90,000 tax exemption and the December 24 payment deadline.
Quick answer: 13th month pay = total basic salary earned in the calendar year ÷ 12. A ₱25,000/month employee who worked all 12 months gets ₱25,000; one who worked 7 months gets ₱14,583. Mandatory for rank-and-file in the Philippines, payable by December 24, tax-exempt up to ₱90,000.
The Formula (PD 851)
13th Month Pay = Total Basic Salary Earned During the Year ÷ 12
Equivalently: monthly basic × months worked ÷ 12. The base is basic salary only — excluding overtime, holiday premiums, night differential, allowances, and unused-leave conversions (unless company practice includes them). Every rank-and-file employee who has worked at least one month qualifies, regardless of position, designation, or how they are paid.
Worked Examples
Example 1 — full year. ₱25,000 basic × 12 ÷ 12 = ₱25,000 — a full extra month, due by December 24.
Example 2 — mid-year hire. Joined June 1 (7 months): 25,000 × 7 ÷ 12 = ₱14,583.
Example 3 — resigned in September. Proration applies at exit too: 8.5 months worked → 25,000 × 8.5 ÷ 12 = ₱17,708, payable with the final pay — not forfeited by resignation. Combine with the rest of your last check via the final paycheck calculator.
Example 4 — salary changed mid-year. Use actual earnings: 6 months at ₱22,000 + 6 at ₱26,000 = ₱288,000 ÷ 12 = ₱24,000.
The Rules That Answer 90% of Disputes
| Rule | Detail |
|---|---|
| Who qualifies | All rank-and-file with ≥1 month of service in the year — probationary, contractual, and resigned employees included (prorated) |
| Deadline | On or before December 24; many employers split (half in June, half in December) — allowed |
| Tax | Exempt up to ₱90,000 (combined with other bonuses); excess is taxable income |
| Base pay items excluded | OT, premiums, night differential, allowances, monetized leave — unless company policy/practice includes them |
| Maternity leave months | SSS maternity benefit months are generally excluded from "basic salary earned" (no employer salary was paid) |
| Managerial employees | Not legally entitled — but most employers extend it by policy |
13th Month vs Christmas Bonus vs 14th Month
The 13th month is a legal obligation; a Christmas bonus is voluntary generosity on top; a 14th month is a contractual/company benefit some employers add (often mid-year). Tax note: the ₱90,000 exemption pools ALL of these together — a ₱30,000 13th month + ₱70,000 in other bonuses exceeds the ceiling by ₱10,000, and that excess is taxed as ordinary compensation (the withholding mechanics resemble the US bonus math, though the exemption structure is uniquely Filipino).
Beyond the Philippines: The 13th-Salary World Map
| Country | Status |
|---|---|
| Philippines | Mandatory (PD 851), by Dec 24 |
| Brazil, Mexico (aguinaldo), Argentina | Mandatory — Mexico: minimum 15 days' pay by Dec 20 |
| Indonesia (THR) | Mandatory before religious holidays |
| Greece, Spain, Portugal | Mandatory/customary 13th-14th salaries built into annual pay |
| Germany, Austria | Common by collective agreement (Weihnachtsgeld) |
| India | Different instrument: statutory bonus 8.33-20% under the Bonus Act |
Planning Around It
- Employees: the December payment is your salary's deferred 8.33% — budgeting it for planned expenses beats treating it as windfall. Job-switchers: your old employer owes the prorated share with final pay; your new one restarts the count.
- Employers: accrue 1/12 of basic payroll monthly instead of discovering a December cash cliff; proration math for joiners/leavers follows the same logic as the prorated salary calculator.
Frequently Asked Questions
How is 13th month pay calculated?
Total basic salary earned in the calendar year ÷ 12 — equivalently, monthly basic × months worked ÷ 12. A ₱25,000 earner with a full year gets ₱25,000.
Who is entitled to 13th month pay?
All rank-and-file employees in the Philippines with at least one month of service in the year — probationary, contractual, and resigned staff included, prorated.
Is 13th month pay taxable?
Exempt up to ₱90,000 combined with other bonuses; anything above the ceiling is taxed as regular compensation.
Do I get 13th month pay if I resign?
Yes — prorated to months worked, payable with your final pay. Resignation does not forfeit it.
When is 13th month pay due?
On or before December 24. Employers may pay half mid-year and the balance in December.
Does overtime count in 13th month pay?
No — the base is basic salary only, excluding OT, premiums, night differential, and allowances (unless established company practice includes them).
✓ Formula verified • Last updated: August 20, 2026