13th Month Pay Calculator
Free 13th month pay calculator for the Philippines: enter your monthly basic salary and months worked to compute your mandatory PD 851 year-end pay.
Updated 2026-06-14 · Free · No sign-up · Runs privately in your browser
Show the formula & steps
How the 13th Month Pay Calculator Works
In the Philippines, 13th month pay is a mandatory benefit under Presidential Decree 851 for all rank-and-file employees who worked at least one month in a calendar year. This calculator computes it from your monthly basic salary and the number of months you worked, with an optional field for any unpaid-absence deductions to your basic pay.
The Formula
13th month pay = total basic salary earned during the calendar year ÷ 12
For most employees the total basic salary is simply the monthly basic salary × months worked. Basic salary excludes overtime, holiday premiums, night differential, and allowances. If you worked a full 12 months at a steady rate, your 13th month pay equals exactly one month’s basic salary.
Worked Example
Suppose your monthly basic salary is ₱20,000 and you worked the full 12 months:
- Total basic salary = 20,000 × 12 = ₱240,000
- 13th month pay = 240,000 ÷ 12 = ₱20,000
Now suppose you joined mid-year and worked only 7 months at ₱18,000:
- Total basic salary = 18,000 × 7 = ₱126,000
- 13th month pay = 126,000 ÷ 12 = ₱10,500
Quick Reference
| Monthly basic salary | Months worked | 13th month pay |
|---|---|---|
| ₱15,000 | 12 | ₱15,000 |
| ₱18,000 | 7 | ₱10,500 |
| ₱20,000 | 12 | ₱20,000 |
| ₱25,000 | 10 | ₱20,833 |
| ₱30,000 | 12 | ₱30,000 |
Key Points to Remember
- The benefit is separate from any Christmas bonus, which is discretionary.
- It must be paid on or before December 24.
- The first ₱90,000 of combined 13th month pay and other benefits is tax-exempt.
- Resigned or separated employees are still entitled to a prorated amount for the months they worked.
Frequently asked questions
How is 13th month pay computed in the Philippines?+
Add up all the basic salary you earned during the calendar year and divide it by 12. For a worker earning a steady basic salary every month for the full year, the result equals one month's basic pay. The benefit is required by Presidential Decree 851.
What counts as basic salary for 13th month pay?+
Only your basic monthly salary counts. Overtime pay, holiday and rest-day premiums, night-shift differential, cost-of-living allowances and other monetary benefits are excluded, unless your employer's policy or collective agreement treats them as part of basic pay.
How do I compute prorated 13th month pay?+
Multiply your monthly basic salary by the number of months you actually worked, then divide by 12. If you earned ₱18,000 a month and worked 7 months, your prorated 13th month pay is (18,000 × 7) ÷ 12 = ₱10,500.
Is 13th month pay taxable?+
13th month pay and other year-end benefits are tax-exempt up to a combined ceiling of ₱90,000. Any amount above ₱90,000 is added to your taxable income and taxed under the regular income-tax rules for the year.
When is 13th month pay released?+
Employers must pay it on or before December 24 each year. Some companies split it, releasing half in June and the balance in December, but the full amount must be settled by the December 24 deadline.