13th Month Pay Calculator

Under Philippine rules, the minimum 13th month pay for covered rank-and-file employees is generally calculated based on one-twelfth (1/12) of the total basic salary earned during the calendar year.

For example, if your total basic salary earned during the year is ₱600,000:

Your estimated 13th month pay would therefore be ₱50,000.

This is the basic 13th month pay computation used by DOLE. The calculator above applies the same formula to the monthly salary amounts you enter.

For 13th month pay computation, basic salary generally includes remuneration or earnings paid by the employer for services rendered.

Certain allowances and monetary benefits may not be included when they are not considered part of basic salary under the applicable rules, agreement or established company practice.

If your monthly basic salary changed during the year, enter the actual basic salary earned for each month. This makes the calculator useful for employees looking for a more accurate prorated 13th month pay calculation.

Unpaid absences may reduce the basic salary actually earned during a particular month. When this happens, enter the actual basic salary earned for that month rather than your usual full monthly salary.

For example, if your normal monthly basic salary is ₱30,000 but unpaid absences reduce your basic salary earned for a month to ₱28,000, enter ₱28,000 for that month.

Leave with pay may be treated differently. The 2023 DOLE/NWPC Handbook illustrates treatment where the employee receives their full monthly salary during leave with pay.

Employees who worked for only part of the calendar year may receive a prorated 13th month pay based on the basic salary earned during the period covered.

For example, if you joined your employer in July and earned ₱30,000 per month from July through December:

Enter only the months for which you earned basic salary to estimate your prorated 13th month pay.

Under the current tax rules, 13th month pay and other qualifying benefits are generally exempt from income tax up to a combined annual amount of ₱90,000.

Amounts exceeding the applicable threshold may be treated as taxable compensation.

The taxable amount shown by this calculator represents the amount above the ₱90,000 threshold. It is not your final income tax payable.

The tax rules cover 13th month pay together with certain other benefits when determining the ₱90,000 annual exemption.

Examples identified by the BIR include Christmas bonus, productivity incentive bonus, loyalty award, gifts in cash or in kind, and other benefits of a similar nature.

The field in this calculator asks for the total annual amount of qualifying benefits, not a monthly amount or the amount of each individual payment.

Covered rank-and-file employees in the private sector are generally entitled to 13th month pay provided they have worked for at least one month during the calendar year, subject to applicable rules and exclusions.

Covered employers generally must release 13th month pay not later than December 24 of each year.

No. 13th month pay is a mandatory statutory benefit for covered employees, while a Christmas bonus is generally discretionary unless it has become part of an applicable agreement, company policy or established practice.

A Christmas bonus may, however, be relevant when determining the tax treatment of 13th month pay and other benefits if it falls within the benefits covered by the applicable tax rules.

DOLE's published guidance states that the minimum 13th month pay should not be less than one-twelfth (1/12) of the employee's total basic salary earned during the calendar year.

The monthly salary inputs in this 13th month pay computation calculator are designed to apply this formula to your actual basic salary earned throughout the year.