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13th Month Pay Calculator Philippines

Calculates your mandatory 13th month pay based on your basic salary, months worked, and unpaid absences. Compliant with PD 851 and TRAIN Law tax exemption.

Your details

Select how your basic salary is defined.

Enter your basic monthly salary or daily wage in Philippine Pesos (₱). Do not include allowances, overtime, or other benefits.

Enter the total number of months you worked or will work for the employer within the calendar year. For partial months, count the full month if you worked at least 15 days in that month. Otherwise, do not count it. The calculator uses this count directly.

Enter the total number of days you were absent without pay during the period you worked. Only include days you did not receive any salary.

Result

Gross 13th Month Pay (Rounded) ₱30,000.00

Your 13th month pay before any applicable withholding tax on the taxable excess. Consult your employer or accountant for the exact net amount after tax.

How it is calculated

Total Basic Salary Earned Total basic salary for the period worked. For monthly earners: monthly salary times months worked. For daily earners: daily wage times an average of 26 working days per month, times months worked.
₱360,000.00
Deduction for Unpaid Absences Salary equivalent of days absent without pay, calculated using the daily rate.
₱0.00
Gross 13th Month Pay One-twelfth (1/12) of the total basic salary earned, minus deductions for unpaid absences.
₱30,000.00
Taxable Excess (if any) The portion of your 13th month pay that exceeds the ₱90,000 tax exemption threshold. This excess is subject to income tax.
₱0.00
Keep in mind
  • This calculator provides an estimate. The final computation is subject to your employer's specific payroll policies and the exact application of tax laws.
  • For daily wage earners, the calculation uses an average of 26 working days per month as a standard. Some employers or Collective Bargaining Agreements (CBAs) may use a different divisor or the actual number of days worked.
  • The ₱90,000 tax exemption applies to the combined total of your 13th month pay and other benefits (e.g., productivity incentives, Christmas bonus).
  • Partial months are typically counted as full months if you worked at least 15 days in that month. The calculator uses the 'Months Worked' input for this purpose; you must apply the 15-day rule yourself before entering the value.
  • The daily rate for monthly earners is computed as (Monthly Salary * 12) / 365 days, in line with common DOLE computation guidelines for 13th month pay deductions.

Indicative result, calculated from the details and the rules listed below. It does not replace an official calculation or advice from a professional.

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The editor opens with the calculator details already entered.

Employment Contract
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What is 13th Month Pay in the Philippines?

13th month pay is a mandatory benefit granted to all rank-and-file employees in the private sector in the Philippines, as mandated by Presidential Decree No. 851. It is equivalent to one-twelfth (1/12) of an employee's total basic salary earned within a calendar year. The law requires employers to pay this benefit on or before December 24 of every year.

How is 13th Month Pay Calculated?

The fundamental formula for computing the 13th month pay is: (Total Basic Salary Earned During the Year) / 12.

Total Basic Salary Earned includes only the basic salary or wage. It does not include allowances, overtime pay, holiday pay, night shift differential, and other monetary benefits which are not considered part of the basic salary.

For employees who have not worked a full calendar year, the pay is prorated based on the number of months they have worked. Furthermore, deductions are made for periods of unpaid absences.

Step-by-Step Computation

  1. Determine the Total Basic Salary Earned: For monthly-paid employees, multiply the monthly basic salary by the number of months worked. For daily-paid employees, multiply the daily wage by the standard number of working days per month (commonly 26) and then by the number of months worked.
  2. Calculate the Daily Rate for Deductions: For monthly earners, the daily rate used to deduct unpaid absences is computed by annualizing the salary (multiplying by 12) and dividing by 365 days. For daily earners, the daily wage is the daily rate.
  3. Deduct for Unpaid Absences: Multiply the daily rate by the total number of unpaid absence days and subtract it from the total basic salary earned.
  4. Compute the Gross 13th Month Pay: Divide the result from Step 3 by 12.
  5. Apply the Tax Exemption: Under the TRAIN Law (BIR Revenue Regulations No. 11-2018), the first ₱90,000 of an employee's combined 13th month pay and other benefits is exempt from income tax. Any amount exceeding this threshold is subject to withholding tax.

Example Calculation

Maria is a monthly-paid employee with a basic salary of ₱25,000. She worked from January 1 to October 31 (10 months) and had 3 days of unpaid leave.

  • Total Basic Salary Earned: ₱25,000 x 10 months = ₱250,000
  • Daily Rate: (₱25,000 * 12) / 365 = ₱821.92
  • Deduction for Unpaid Absences: ₱821.92 x 3 days = ₱2,465.76
  • Adjusted Total Salary: ₱250,000 - ₱2,465.76 = ₱247,534.24
  • Gross 13th Month Pay: ₱247,534.24 / 12 = ₱20,627.85
  • Since this amount is below ₱90,000, the entire sum is tax-exempt. Maria's gross 13th month pay is ₱20,627.85.

Frequently Asked Questions

Who is entitled to 13th month pay?

All rank-and-file employees in the private sector who have worked for at least one month during the calendar year are entitled, regardless of their employment status (e.g., regular, probationary, project-based).

Is 13th month pay taxable?

The first ₱90,000 of the combined total of your 13th month pay and other benefits (like productivity bonuses) is exempt from income tax. Only the excess amount is taxable.

What if I resign before December?

You are still entitled to a prorated 13th month pay. It should be released upon the final settlement of your accounts (final pay), not necessarily in December.

Can an employer not give 13th month pay?

No. Payment of 13th month pay is mandatory under Philippine law. Employers who fail to pay may be reported to the Department of Labor and Employment (DOLE).

Preparing Employment Documents

After calculating your entitlement, it's important to have clear employment records. For new hires, a comprehensive Employment Contract should explicitly state the basic salary, which is the foundation for computing this benefit. For employees leaving a company, a Resignation Letter or Employment Termination Letter should be prepared, and the final pay—including any prorated 13th month pay—should be clearly itemized and settled.

Frequently asked questions

How is 13th month pay computed for daily wage earners?

For daily wage earners, your total basic salary is computed by multiplying your daily rate by an average of 26 working days per month and then by the number of months worked. Unpaid absences are deducted by multiplying the daily rate by the number of unpaid days. The result is then divided by 12.

Are allowances and overtime included in the 13th month pay computation?

No. Only the basic salary or wage is used in the computation. Allowances, overtime pay, holiday pay, and other similar benefits are excluded by law.

When should a resigned employee receive their 13th month pay?

A resigned employee should receive their prorated 13th month pay as part of their final pay, which by law should be given within 30 days from the date of separation or termination.

What is the deadline for employers to pay the 13th month pay?

For continuing employees, the mandatory deadline for payment is on or before December 24 of each year.

Is there a minimum salary requirement to be entitled to 13th month pay?

No. There is no minimum salary threshold. All rank-and-file employees are entitled, regardless of how much they earn.

How is the tax on 13th month pay calculated?

If your total 13th month pay and other benefits exceed ₱90,000, only the excess amount is subject to the applicable graduated income tax rates. Your employer will withhold this tax.

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