13th month pay calculator for the Philippines.

13th month pay in the Philippines equals your total basic salary for the year divided by 12, and is mandatory for rank-and-file employees under Presidential Decree 851.

By the Orkids payroll engineering team·Reviewed against PD 851, DOLE advisories & the BIR·Updated June 2026

How is 13th month pay computed?

13th month pay is your total basic salary earned during the calendar year, divided by 12. For a constant monthly salary, that is your monthly basic multiplied by the months you worked, divided by 12.

Basic salary is your fixed wage for work done. It excludes allowances, overtime pay, holiday pay, night-shift differential, and cost-of-living allowance (COLA) — unless a collective bargaining agreement (CBA) or long-standing company practice folds them into basic pay.

What counts as basic salary

The exclusions stand unless a collective bargaining agreement or a long-standing company practice has folded those items into basic pay.

Who is entitled to 13th month pay?

All rank-and-file employees who worked at least one month during the calendar year are entitled, regardless of position, designation, or how their wages are paid.

This covers probationary, contractual, and resigned employees. Managerial employees are not legally covered by PD 851, though many employers grant an equivalent benefit by policy.

When must 13th month pay be released?

Employers must release 13th month pay on or before December 24 each year.

Some employers split it — half around mid-year, the balance in December — but the full amount must be settled by the December 24 deadline set by the Department of Labor and Employment (DOLE).

Is 13th month pay taxable?

13th month pay and other benefits are tax-exempt up to ₱90,000; any amount above that is added to taxable income.

The ₱90,000 ceiling comes from the TRAIN law (Republic Act 10963), which amended the National Internal Revenue Code. The excess is subject to withholding tax computed with the rest of your compensation.

13th month pay vs Christmas bonus vs 14th month pay

Only 13th month pay is required by law. A Christmas bonus and a “14th month pay” are both discretionary — the employer chooses whether to give them.

*The ₱90,000 tax-exempt ceiling is shared across 13th month pay and other benefits combined, under the TRAIN law (RA 10963).

13th month pay — frequently asked questions

Is 13th month pay the same as a Christmas bonus?

No. 13th month pay is mandatory under Presidential Decree 851 and is computed as your total basic salary for the year divided by 12. A Christmas bonus is discretionary — an employer chooses whether to give it.

Do resigned or terminated employees still get 13th month pay?

Yes. An employee who worked at least one month during the calendar year is entitled to a pro-rated 13th month pay based on the basic salary actually earned, released as part of their final pay.

Are probationary and contractual employees entitled?

Yes. Any rank-and-file employee who worked at least one month in the calendar year is entitled, regardless of employment status or how wages are paid.

How is 13th month pay pro-rated?

Add up the basic salary you actually earned during the year and divide by 12. An employee who worked six months at ₱25,000 basic earns ₱12,500.

Is 13th month pay taxable in the Philippines?

13th month pay and other benefits are tax-exempt up to ₱90,000 under the TRAIN law (RA 10963). Any amount above ₱90,000 is added to taxable income and subject to withholding tax.

When is the deadline to pay 13th month pay?

Employers must release 13th month pay on or before December 24 each year. Some employers pay half mid-year and the balance in December.

Are managers entitled to 13th month pay?

Managerial employees are not legally covered by PD 851, though many employers grant an equivalent benefit by policy or practice.

Are household workers (kasambahay) entitled to 13th month pay?

Yes. Under the Domestic Workers Act (Republic Act 10361, the Batas Kasambahay), a kasambahay who has rendered at least one month of service is entitled to 13th month pay, released on or before December 24.

Is there a 14th month pay in the Philippines?

No. Only 13th month pay is mandatory, under Presidential Decree 851. A 14th month pay has been proposed in Congress but is not law — any 14th month or extra bonus is given at the employer's discretion.

Key terms

Basic salary.

Your fixed wage for work performed, before allowances, overtime, and premiums.

Rank-and-file employee.

Any employee not vested with managerial authority — all are covered by PD 851.

Pro-rated.

Computed in proportion to the months you actually worked during the calendar year.

PD 851.

Presidential Decree 851 (1975), the law that mandates 13th month pay.

TRAIN law.

Republic Act 10963, which sets the ₱90,000 tax-exempt ceiling on 13th month pay and other benefits.

Sources

• Presidential Decree No. 851 (1975) — the 13th Month Pay Law.
• Department of Labor and Employment (DOLE) — 13th Month Pay labor advisories.
• Republic Act 10963 (TRAIN law) — ₱90,000 tax-exempt cap on 13th month pay and other benefits.
• Estimates are for guidance only. Confirm your computation with DOLE and the BIR.

Last reviewed: June 2026