13th Month Pay Calculator (Philippines)
This 13th month pay calculator applies the rule of Presidential Decree No. 851: one-twelfth of the basic salary you earned within the calendar year. Enter your monthly basic salary and the months you worked, your daily rate and paid days, or simply the total from your payslips. Absences without pay, a mid-year start or a resignation are covered – the pay is prorated automatically.
Example: How do you want to enter your pay: Monthly basic salary × months worked · Monthly basic salary 20,000 ₱ · Months worked this calendar year 12 · Deductions for absences without pay, lates and undertime 0 ₱ → Result: 13th month pay: ₱20,000.00. Source: Presidential Decree No. 851; Revised Guidelines on the Implementation of the 13th Month Pay Law, Department of Labor and Employment, Bureau of Working Conditions: Handbook on Workers’ Statutory Monetary Benefits, chapter 13 “Thirteenth-Month Pay” (amount, basic salary, computation, time of payment, resigned or separated employees). Updated: .
How it is calculated
13th month pay = total basic salary earned during the calendar year ÷ 12. That is the rule of Presidential Decree No. 851 as explained in the DOLE Handbook on Workers’ Statutory Monetary Benefits: the pay “shall not be less than one-twelfth (1/12) of the total basic salary earned by an employee in a calendar year”. If you worked the whole year without unpaid absences, it equals one month of basic salary.
How to compute 13th month pay
- Add up the basic salary you actually earned from January to December – or from your first day to your last day if you did not work the whole year.
- Divide the total by 12.
Examples
- Full year: ₱20,000 a month × 12 months = ₱240,000; ÷ 12 = ₱20,000.
- Prorated, 6 months: ₱20,000 × 6 months = ₱120,000; ÷ 12 = ₱10,000.
- With absences: ₱20,000 × 12 months − ₱4,600 for unpaid absences = ₱235,400; ÷ 12 = ₱19,616.67.
- Daily rate: ₱610 a day × 313 paid days = ₱190,930; ÷ 12 = ₱15,910.83.
- DOLE’s illustration: a minimum-wage earner whose basic pay over the twelve months, with ten days of leave without pay in September and one in November, adds up to ₱177,438.32 receives ₱177,438.32 ÷ 12 = ₱14,786.53.
What counts as basic salary?
According to the DOLE handbook, basic salary includes “all remunerations or earnings paid by his or her employer for services rendered”, but not allowances and monetary benefits that are not part of the regular or basic salary, such as:
- the cash equivalent of unused vacation and sick leave credits,
- overtime, premium, night shift differential and holiday pay,
- cost of living allowance (COLA).
These are included only if they are treated as part of the basic salary by agreement, company practice or policy. Leave with pay does not reduce the total; absences without pay, lates and undertime do, because that salary was not earned.
Who is entitled?
All rank-and-file employees in the private sector, whatever their position, employment status or method of pay, provided they worked for at least one month during the calendar year. Managerial employees are not covered by the law, and neither are government employees; some employers pay them a 13th month anyway. Domestic workers (kasambahay) were excluded by the 1975 decree but have had their own right to a 13th month pay since the Domestic Workers Act (Republic Act No. 10361, the “Batas Kasambahay”, 2013), once they have rendered at least one month of service.
Resigned or separated during the year?
You still get it, in proportion to the time worked. The handbook’s example: someone who worked only from January to September receives one-twelfth of the total basic salary earned in that period. In the calculator, enter 9 months – or the total from your payslips up to your last day.
When is it paid?
Not later than 24 December of every year. An employer may pay half before the opening of the regular school year and the rest on or before 24 December.
Tax
Under the tax code as amended by the TRAIN law, 13th month pay and other benefits are exempt from income tax up to a combined ceiling of ₱90,000 a year; only the excess is taxable. This calculator shows the gross amount.
Related: hourly to salary calculator and overtime calculator.
Frequently asked questions
How is 13th month pay computed in the Philippines?
Add up the basic salary you earned during the calendar year and divide by 12. With ₱20,000 a month for the full year that is ₱240,000 ÷ 12 = ₱20,000.
How do I compute prorated 13th month pay?
Use the same formula with the basic salary earned in the months you actually worked. Six months at ₱20,000 give ₱120,000 ÷ 12 = ₱10,000. In the calculator, set “Months worked” to 6.
Do absences reduce my 13th month pay?
Absences without pay, lates and undertime do, because the formula uses the basic salary actually earned. Leave with pay does not. Enter the total deducted during the year in the deductions field.
Is overtime included in 13th month pay?
No. Overtime, premium pay, night shift differential, holiday pay, COLA and the cash value of unused leave are not part of the basic salary for this purpose, unless your employer treats them as basic salary by agreement or practice.
How do I compute 13th month pay from a daily rate?
Multiply your daily basic rate by the number of days you were paid during the year, then divide by 12. Example: ₱610 × 313 days = ₱190,930, and ₱190,930 ÷ 12 = ₱15,910.83.
I resigned in the middle of the year. Do I still get 13th month pay?
Yes. A resigned or separated employee is entitled to it in proportion to the time worked during the year – one-twelfth of the basic salary earned up to the last day.
Is 13th month pay taxable?
Together with other benefits it is exempt up to ₱90,000 a year; any amount above that ceiling is taxable. The calculator shows the amount before tax.
When should the 13th month pay be given?
Not later than 24 December each year. Employers may also pay it in two halves, the first before the regular school year opens.
Sources and legal basis
- Presidential Decree No. 851; Revised Guidelines on the Implementation of the 13th Month Pay Law: Department of Labor and Employment, Bureau of Working Conditions: Handbook on Workers’ Statutory Monetary Benefits, chapter 13 “Thirteenth-Month Pay” (amount, basic salary, computation, time of payment, resigned or separated employees)
- P.D. 851: Presidential Decree No. 851 (16 December 1975): Requiring all employers to pay their employees a 13th-month pay
As of: · Editorial policy
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