14/6/24
April 1, 2026
9
min read
13th Month Pay Calculator Philippines 2026
Compute accurate 13th month pay for full-year, mid-year, and resigned employees. Handles unpaid absences and the ₱90,000 TRAIN Law tax exemption. Free, DOLE-compliant, and based on Presidential Decree No. 851.
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Updated for 2026 · Computation follows DOLE standard rules · Calculations run in your browser; nothing is stored.
How do you compute 13th month pay in the Philippines?
Your 13th month pay equals the total basic salary you earned during the calendar year, divided by 12. A rank-and-file employee who earns the same basic salary for all 12 months receives one full month's basic salary.
13th Month Pay = Total Basic Salary Earned (Jan–Dec) ÷ 12
With absences: (Monthly Basic Salary × Months Worked − Absence Deduction) ÷ 12
Absence Deduction = (Monthly Basic Salary ÷ 26) × Unpaid Days
Here's how our KWSP calculator handles different scenarios:
- Add up your basic salary for the year Multiply your monthly basic salary by the number of months you worked. Use only basic pay, not allowances or overtime.
- Subtract unpaid days Deduct the value of any unpaid absences or undertime, since 13th month pay is based on salary actually earned.
- Divide the total by 12 The result is your 13th month pay. For a full year at a steady salary, this equals one month's basic pay.
- Check the ₱90,000 tax exemption Your 13th month pay plus other bonuses is tax-free up to ₱90,000. Only the amount above that is taxed.
How much is my 13th month pay? Examples by salary
For a full year of work at a steady salary, your 13th month pay equals one month's basic pay. The prorated column shows the amount for an employee who worked only six months (a mid-year hire or resignation). All amounts below are tax-exempt because they fall under the ₱90,000 threshold.
An employee earning ₱18,000 a month for the full year with five unpaid absence days receives ₱17,711.54: the daily rate is ₱18,000 ÷ 26 = ₱692.31, so five days = ₱3,461.54 is deducted from ₱216,000, then divided by 12.
What counts as basic salary?
13th month pay is computed on basic salary only. Knowing what is included and excluded keeps your computation accurate. Items below follow DOLE rules unless your company policy or a collective bargaining agreement integrates them into basic pay.
Included in basic salary
- Regular monthly or daily wage for work performed
- Paid leave that forms part of basic pay
- Cost-of-living allowance only if integrated into basic pay by policy or CBA
- Employer-paid maternity salary differential
Excluded from basic salary
- Overtime pay and premium pay
- Holiday pay and night-shift differential
- Allowances and most cost-of-living allowances
- Pure commissions and profit-sharing
- Cash value of unused leave credits
Who is entitled to 13th month pay?
All rank-and-file employees in the Philippine private sector who have worked at least one month during the calendar year are entitled to 13th month pay under Presidential Decree No. 851, regardless of position, designation, or employment status.
This covers probationary, contractual, project-based, part-time, and household (kasambahay) workers. The amount is prorated for anyone who worked less than a full year.
Who is not entitled?
The following are generally excluded under PD 851:
Excluded groups
- Government employees and GOCCs under separate compensation schemes
- Managerial employees (though DOLE practice has broadened payment in many cases)
- Employers already paying an equivalent benefit
- Purely commission, boundary, or task-basis workers with no fixed wage
Still entitled
- Minimum wage earners
- Resigned or terminated employees (prorated to last working day)
- Workers paid a fixed wage plus commission, computed on the fixed wage
- Employees who worked even one month in the year
Is 13th month pay taxable in the Philippines?
13th month pay is tax-exempt up to ₱90,000 when combined with other benefits such as a Christmas bonus and productivity incentives. Any amount above ₱90,000 is added to your taxable income and taxed at your BIR graduated rate.
The ₱90,000 ceiling was set by the TRAIN Law (Republic Act No. 10963), raising the earlier ₱82,000 limit. Because most rank-and-file employees receive less than ₱90,000 in combined bonuses, their 13th month pay is fully tax-free. The calculator above flags which side of the threshold your result falls on.
When is 13th month pay given?
Employers must pay 13th month pay on or before December 24 each year. It may be released earlier or split into installments during the year, such as half in May and half in December.
DOLE reaffirms this deadline through its annual labor advisories. Employers are also required to report compliance to DOLE after payment.
Special cases and how they are handled
Resignation or termination
You are entitled to a prorated 13th month pay based on the basic salary you earned up to your last working day. It is usually released as part of your final pay.
Mid-year hires
Your 13th month pay is prorated using the basic salary actually earned during the months you worked, divided by 12. An employee hired in July who earns ₱20,000 a month receives ₱10,000.
Unpaid absences and undertime
Unpaid days reduce the basic salary you actually earned, so they lower your 13th month pay proportionally. The calculator above deducts the daily rate for each unpaid day automatically.
Maternity leave: Days covered by the SSS maternity benefit are excluded because no company salary is earned during that period. However, the employer-paid salary differential is part of basic salary and is included in the 13th month computation, under DOLE Department Advisory No. 01, Series of 2019. This is the single most commonly missed rule.
Commission earners
Employees who receive a guaranteed fixed wage plus commission are entitled, with the 13th month pay computed on the fixed wage only. Workers paid purely on commission with no fixed wage are generally excluded.
What if an employer does not pay 13th month pay?
Non-payment or underpayment of 13th month pay can trigger a DOLE compliance order and double indemnity under Republic Act No. 8188, meaning the employer may owe twice the deficiency, plus possible fines.
Employees who are not paid by December 24 can file a complaint with the nearest DOLE field office. Employers computing for a full team should automate the calculation to avoid errors across mid-year hires, resignations, and varied salary histories.
Is 13th month pay the same as a Christmas bonus?
No. 13th month pay is a mandatory benefit required by law for rank-and-file employees. A Christmas bonus is voluntary and given at the employer's discretion.
Both count toward the ₱90,000 tax-exempt ceiling. The 13th month pay is fixed by the legal formula, while a Christmas bonus has no set amount and is not guaranteed.
Frequently Asked Questions
(FAQs)
How is 13th month pay calculated in the Philippines?
The formula is total basic salary earned during the year divided by 12. For a full-year employee earning ₱25,000 a month, the 13th month pay is ₱25,000. For mid-year hires, only the months actually worked are counted.
How much is my 13th month pay if my salary is ₱20
If you earned ₱20,000 a month for the full year, your 13th month pay is ₱20,000. If you worked only six months, it is prorated to ₱10,000.
Is 13th month pay taxable in the Philippines?
Under the TRAIN Law (RA 10963), 13th month pay is tax-exempt up to ₱90,000 combined with other bonuses. Amounts above ₱90,000 are subject to withholding tax at your graduated rate.
Is 13th month pay mandatory?
Yes. Presidential Decree No. 851 requires all private-sector employers to pay 13th month pay to rank-and-file employees who worked at least one month in the calendar year.
Who is entitled to 13th month pay?
All rank-and-file private-sector employees who worked at least one month during the year, including probationary, contractual, part-time, and household workers. The amount is prorated for less than a full year.
Who is not entitled to 13th month pay?
Government employees, managerial employees, employers already paying an equivalent benefit, and purely commission or task-basis workers with no fixed wage are generally excluded under PD 851.
When is 13th month pay given?
It must be paid on or before December 24 each year. Employers may pay it earlier or in installments during the year.
How is 13th month pay computed if you resigned?
You receive a prorated amount based on the basic salary you earned up to your last working day, divided by 12. It is usually included in your final pay.
How is 13th month pay prorated for mid-year hires?
Multiply your monthly basic salary by the months you worked, then divide by 12. Someone hired in July earning ₱20,000 a month receives ₱20,000 × 6 ÷ 12 = ₱10,000.
Do unpaid absences affect 13th month pay?
Yes. Unpaid absences reduce the total basic salary earned. The daily rate (monthly salary ÷ 26) is deducted for each unpaid day, lowering the base used in the calculation.
Are probationary and contractual employees entitled?
Yes. Employment status does not matter under PD 851. Probationary, contractual, project-based, and part-time employees are all entitled as long as they worked at least one month.
Does 13th month pay include allowances or overtime?
No. It is computed on basic salary only. Overtime, holiday pay, night-shift differential, allowances, and most cost-of-living allowances are excluded unless integrated into basic pay by company policy or a CBA.
Do minimum wage earners get 13th month pay?
Yes. Minimum wage earners are rank-and-file employees and are entitled to 13th month pay just like other covered workers.
How does maternity leave affect 13th month pay?
SSS-paid maternity days are excluded since no company salary is earned then, but the employer-paid salary differential is included, under DOLE Department Advisory No. 01, Series of 2019.
What is the penalty if an employer does not pay?
Non-payment can lead to a DOLE compliance order and double indemnity under RA 8188, meaning the employer may owe twice the deficiency, plus possible fines. Employees can file a complaint with their nearest DOLE office.
Automate 13th month pay across your whole team
Omni HR computes 13th month pay, processes payroll, and keeps you DOLE-compliant for your Philippine employees automatically, even with mid-year hires and resignations.
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