13th month pay calculator
Calculate 13th month pay in the Philippines
Total basic salary earned this year, divided by 12. See the amount, every step of the formula, the tax-free portion and the 24 December deadline. Free, no sign-up.
Work out 13th month pay
Enter the basic salary and the months worked this year. Everything updates as you type.
Basic salary only: leave out overtime, holiday pay, night differential and allowances.
12 months worked. Joined or left mid-month? Switch to month by month and enter what was actually earned.
Optional. The pesos deducted for unpaid days off.
Optional. Christmas bonus, incentives and similar benefits share the ₱90,000 exemption.
13th month pay, 2026
Philippines · Presidential Decree 851
| Step | Amount |
|---|---|
| Basic salary earned₱30,000.00 × 12 months, January to December | ₱360,000.00 |
| Less unpaid absencesPay deducted for unpaid days off | ₱0.00 |
| Total basic salary for the year | ₱360,000.00 |
| Divide by 12PD 851: one twelfth of the year's basic salary | ÷ 12 |
13th month pay
Pay by 24 December
13th month pay: ₱30,000.00, from a total basic salary of ₱360,000.00. Taxable excess: ₱0.00.
Estimate under PD 851: total basic salary earned in the calendar year ÷ 12, the legal minimum. Employers can pay more. Nothing you enter is stored or sent.
Tax on 13th month pay
13th month pay and other benefits are tax-free up to ₱90,000 a year in total. Anything above is taxed as compensation.
- 13th month pay
- ₱30,000.00
- Other bonuses and benefits
- ₱0.00
- Tax-freeup to ₱90,000.00
- ₱30,000.00
- Taxable excess
- ₱0.00
The formula
How to compute 13th month pay
The law sets a minimum of one twelfth of the basic salary an employee earned during the calendar year. Three steps get you there.
13th month pay = total basic salary for the year ÷ 12
Add up the basic salary earned
From 1 January, or the first day of work, to 31 December or the last day of work.
Take out what doesn't count
Unpaid absences, overtime, holiday and premium pay, night differential and allowances that aren't part of basic salary.
Divide by 12
The result is the 13th month pay, due by 24 December 2026.
Worked example
Ana joins on 1 April at ₱30,000 a month.
- ₱30,000 × 9 months
- ₱270,000
- ÷ 12
- ₱22,500
Paid by 24 December 2026
Ben resigns on 31 May on ₱25,000 a month.
- ₱25,000 × 5 months
- ₱125,000
- ÷ 12
- ₱10,416.67
Paid with his final pay
Who gets it, and what counts
The rules come from Presidential Decree 851 and its Revised Guidelines, and the tax exemption from the TRAIN law.
- Who is entitled
- Rank-and-file employees who worked at least one month during the calendar year, whatever their salary, employment status or how their wage is paid.
- Who isn't covered
- Managerial employees, government workers, and employees paid purely by commission, boundary or task. Piece-rate workers are covered.
- What counts as basic salary
- The pay for services rendered. Allowances and benefits count only if they are integrated into the basic salary.
- What doesn't count
- Overtime, premium pay for rest days and special days, holiday pay, night differential, the cash conversion of unused leave, and allowances such as COLA that aren't part of basic salary.
- New hires and leavers
- It's pro-rated to the time worked in the year. An employee who resigns or is let go gets their share with their final pay, released within 30 days of separation.
- When it's due
- On or before 24 December. Employers may pay half before the school year opens and the rest by 24 December.
- Tax
- Tax-free up to ₱90,000 a year, counted together with other bonuses and benefits. The excess is taxable compensation income.
Questions about 13th month pay
How do you compute 13th month pay in the Philippines?
Add up the basic salary the employee earned from January to December and divide it by 12. An employee on ₱30,000 a month who started in April earned ₱270,000 over 9 months, so their 13th month pay is ₱22,500.
When is 13th month pay due?
On or before 24 December. An employer may pay half before the school year opens and the other half by 24 December.
Do resigned employees get 13th month pay?
Yes, pro-rated to the time they worked that year. Someone who leaves at the end of May on ₱25,000 a month gets ₱10,416.67, paid with their final pay within 30 days of separation.
Is 13th month pay taxable?
Only above ₱90,000. The 13th month pay and other bonuses and benefits are tax-free up to ₱90,000 a year in total under the TRAIN law; the excess is taxed as compensation income.
Are overtime, holiday pay and allowances included?
No. Overtime, premium pay, holiday pay, night differential, unused leave conversions and allowances such as COLA are left out, unless they have been integrated into the basic salary.
Do unpaid absences reduce 13th month pay?
Yes. It's computed on the basic salary actually earned, so pay deducted for unpaid absences is not part of the base.
Who is not entitled to 13th month pay?
Managerial employees, government workers, and employees paid purely by commission, boundary or task. Rank-and-file employees who worked at least one month in the year are entitled, including piece-rate workers.
Can Flamingo calculate and pay 13th month pay for me?
Yes. With Employer of Record ($599 per employee per month), Flamingo employs your team in the Philippines and includes 13th month pay in your monthly cost and in final pay. With Managed Services ($49 per employee per month), Flamingo runs payroll for your own Philippine entity and computes 13th month pay with it.
Let Flamingo handle 13th month pay
Employ in the Philippines through Flamingo's Employer of Record for $599 per employee per month, with 13th month pay in every monthly cost and final pay. Have your own entity? Managed Services runs its payroll, 13th month pay included, for $49 per employee per month.