How to use it
Enter your monthly basic salary and how many months you worked this year. If you started or left partway through the year, enter only the months you worked; half a month is fine (for example 7.5). If pay was cut for unpaid absences or leave without pay, enter the total cut. The 13th month pay appears at once.
Add any other bonuses you got this year, such as a mid-year or Christmas bonus. They share the same ₱90,000 tax-free limit, so the tool can show how much of your 13th month is taxed.
The formula
Under Presidential Decree 851, the 13th month pay is one twelfth of the basic salary you earned in the calendar year:
- basic earned = monthly basic × months worked − unpaid absences
- 13th month pay = basic earned ÷ 12
Example: ₱25,000 a month for all 12 months. ₱300,000 ÷ 12 = ₱25,000.
Resigned at the end of July: ₱25,000 × 7 = ₱175,000. ÷ 12 = ₱14,583.33, paid with your final pay.
Common questions
Who gets 13th month pay?
Every rank-and-file employee in the private sector who worked at least one month in the year, whatever the way they are paid: monthly, daily, piece rate or commission on top of a wage. It must be paid on or before 24 December.
Do I still get it if I resigned or was let go?
Yes. You get the pro-rated amount for the months you worked, whatever the reason you left. It is usually released with your final pay.
What counts as basic salary?
Your basic pay for work done, including paid leave. Overtime, holiday pay, night shift differential, allowances and cash conversion of unused leave are left out, unless your contract or company practice includes them.
Is 13th month pay taxed?
Only the part over ₱90,000. Under the TRAIN law, the 13th month pay and your other bonuses together are tax-free up to ₱90,000 a year. The amount over that is added to your taxable pay for the year.
Are SSS, PhilHealth and Pag-IBIG taken from it?
No. The 13th month pay is not part of the salary those contributions are based on, so nothing is deducted for them.
Last checked: 2026-09-26