13th Month Pay Calculator (Philippines)
Find out how much 13th month pay you'll get — pro-rated for the months you worked, with the ₱90,000 tax-free limit applied.
Compute your 13th-month pay
| 13th-month pay | |
|---|---|
| + Other bonuses this year | |
| Taxable portion (over ₱90,000) |
13th-month pay = total basic salary for the year ÷ 12 (pro-rated if you worked less than 12 months). It excludes allowances and overtime. 13th-month pay plus other bonuses are tax-free up to ₱90,000 per year; only the excess is taxed.
How 13th month pay is computed
Your 13th month pay is your total basic salary for the year ÷ 12. If you worked all 12 months at the same basic salary, that simply equals one month's pay. If you started mid-year, it's pro-rated:
13th month pay = (monthly basic × months worked) ÷ 12
It's based on basic salary only — it excludes overtime, allowances, and other monetary benefits. It's mandatory for rank-and-file employees and must be paid on or before December 24.
The divisor is always 12, never the number of months you worked. That single detail is what makes the benefit proportional: each month of service earns you one-twelfth of a month's basic pay, so 6 months of service earns half a month's basic, not a whole one.
Example: ₱25,000.00 salary, full year
- 13th month pay = ₱25,000 × 12 ÷ 12 = ₱25,000.00
- Well under the ₱90,000 cap → fully tax-free.
Worked example: resigning mid-year
Say you earn a ₱32,000.00 monthly basic and resign at the end of July, having worked 7 months of the calendar year. Your 13th month pay does not disappear — it is pro-rated:
- Total basic earned. ₱32,000.00 × 7 = ₱224,000.00.
- Divide by 12. ₱224,000.00 ÷ 12 = ₱18,666.67.
- Check against the cap. ₱18,666.67 is far below ₱90,000, so the taxable portion is ₱0.00 — you receive it in full.
The same arithmetic works in reverse for a new hire: someone who joined in June and worked 7 months to December on the same basic salary arrives at the identical ₱18,666.67. What matters is months of service in the calendar year, not which months they were.
13th month pay by months worked
Each row is the benefit earned after that many months of service, at three common basic salaries. Notice how linear it is — every extra month adds exactly one-twelfth of a month's basic pay.
| Months worked | ₱15,000 basic | ₱25,000 basic | ₱40,000 basic |
|---|---|---|---|
| 1 month | ₱1,250.00 | ₱2,083.33 | ₱3,333.33 |
| 3 months | ₱3,750.00 | ₱6,250.00 | ₱10,000.00 |
| 6 months | ₱7,500.00 | ₱12,500.00 | ₱20,000.00 |
| 9 months | ₱11,250.00 | ₱18,750.00 | ₱30,000.00 |
| 11 months | ₱13,750.00 | ₱22,916.67 | ₱36,666.67 |
| 12 months | ₱15,000.00 | ₱25,000.00 | ₱40,000.00 |
Is it taxed?
13th month pay and other bonuses are tax-free up to ₱90,000 per year combined. Only the portion above ₱90,000 is taxable, so most employees receive their 13th month pay in full. The threshold is a combined one: it covers your 13th month plus every other bonus of the same kind you received that year.
Case 1 — a high basic salary. On a ₱120,000.00 monthly basic worked for the full year, the 13th month pay is ₱120,000.00. That is ₱30,000.00 above the cap. At this income the marginal TRAIN rate is 25%, so roughly ₱7,500.00 in tax applies to the excess, leaving about ₱112,500.00 net. A basic salary of exactly ₱90,000 a month is the break-even point: below it, a full year's 13th month pay is always tax-free on its own.
Case 2 — a modest salary plus a large bonus. A ₱25,000.00 basic earns ₱25,000.00 of 13th month pay, well inside the cap. Add a separate ₱70,000.00 performance bonus and the combined total becomes ₱95,000.00 — so ₱5,000.00 becomes taxable even though the 13th month pay by itself never came close to the ceiling. This is why the calculator asks for other bonuses received during the year.
What counts as "basic salary" — and what this tool assumes
Basic salary means basic salary. Overtime pay, holiday and night-differential premiums, allowances, commissions, and other monetary benefits sit outside the base. If you regularly work overtime, your 13th month pay will look small next to your usual take-home — that is expected, not an error. See the holiday & overtime pay calculator for how those premiums are computed separately.
The calculator assumes a constant monthly basic. The legal formula is total basic earned during the year ÷ 12. If you had a mid-year raise, a promotion, unpaid leave, or unpaid absences, add up what you actually earned in basic pay and divide that total by 12 instead — the tool's "monthly basic × months worked" shortcut only matches when the rate never changed.
Months are whole months. The months-worked field takes 0 to 12 and does not model part-months, so a hire date mid-month needs the total-basic-earned approach above.
It shows the taxable portion, not the tax. The calculator tells you how much of your benefits crosses the ₱90,000 line; the actual tax on that excess depends on your marginal rate, as in Case 1 above. Mandatory contributions are computed from your monthly basic salary, so none are applied to the 13th month figure itself.
Common mistakes
- Dividing by the months worked instead of by 12. Seven months of service is ₱224,000.00 ÷ 12 = ₱18,666.67, not ₱32,000.00.
- Using gross pay as the base. Overtime and allowances are excluded. Feeding a payslip gross into the formula overstates the benefit.
- Assuming resigning forfeits it. The benefit is earned month by month, so a partial year still produces a pro-rated amount.
- Forgetting other bonuses when checking the cap. The ₱90,000 ceiling is combined, as Case 2 shows — ₱5,000.00 became taxable on a ₱25,000.00 salary.
- Treating the whole amount as taxed once you cross the cap. Only the excess is taxable; the first ₱90,000 stays exempt.
- Counting a mid-year raise at the new rate for the whole year. Only the basic pay actually earned at each rate counts toward the total.
Frequently asked questions
I resigned in July — do I still get 13th month pay?
Yes, pro-rated for the months you worked. On a ₱32,000.00 basic with
7 months of service that is ₱18,666.67,
computed exactly the same way as a full year's.
Does overtime increase my 13th month pay?
No. The base is basic salary only, so overtime, night differential, holiday
premiums, and allowances are all excluded — no matter how much of your monthly
pay they represent.
Is my 13th month pay taxed?
Only if your 13th month pay plus other bonuses exceed ₱90,000
for the year. Below that, nothing is withheld. Above it, only the excess is
taxable at your marginal rate.
At what salary does 13th month pay become taxable?
On its own, a full year at a monthly basic above ₱90,000 does
it. At ₱120,000.00 a month, ₱30,000.00 of the
₱120,000.00 benefit is taxable. Other bonuses can push you
over the line at a much lower salary.
Is 13th month pay the same as a Christmas bonus?
No. The 13th month is a mandatory benefit with a fixed formula; a Christmas
bonus is discretionary and set by your employer. They are separate payments,
but both count toward the same ₱90,000 exempt ceiling.
Does my 13th month pay change my monthly take-home?
No. It is a separate payment, and your monthly SSS, PhilHealth, Pag-IBIG, and
withholding tax are all computed from your monthly basic salary. Your regular
net pay is unchanged — see the
Take-Home Pay Calculator.
See your regular monthly net pay with the Take-Home Pay Calculator, or thinking of saving your bonus? Project it with the compound interest calculator and compare where to park it in our digital bank rate comparison.
Last updated: 2026-07-08. Based on Presidential Decree 851 (13th month pay) and the ₱90,000 tax-exempt cap under RA 10963 (TRAIN). Informational only, not financial or legal advice.