Philippines 13th Month Pay Calculator for Employees

About the Philippines 13th Month Pay Calculator for Employees

Work out the 13th month pay the way Presidential Decree No. 851 and the DOLE define it: at least one twelfth of the total basic salary an employee earned in the calendar year. Enter a monthly salary and the months worked — with any days of unpaid leave or absence — or type what you actually earned in each month, for a year with a raise, unpaid leave or a start or exit part-way through.

The result shows the 13th month pay, what is still due if part was paid early, and how much of it is tax-free: the 13th month pay and other benefits such as a Christmas bonus are excluded from taxable income up to ₱90,000 together. It works for full-year employees, new hires, resigned or separated employees and kasambahay. Everything is worked out in your browser.

Common uses

• Check your 13th month pay before December.
• Work out the pro-rated 13th month pay in a resigned employee’s final pay.
• Plan a payroll’s 13th month pay, including the half paid before the school year.
• See whether a large bonus pushes your benefits over the ₱90,000 tax exemption.

Who gets it, how much, and when

All employers must pay their rank-and-file employees a 13th month pay not later than 24 December, whatever their position, employment status or the way they are paid, provided they worked at least one month in the calendar year (PD 851 and its rules; the original salary ceiling was removed by Memorandum Order No. 28). It is at least one twelfth of the total basic salary earned within the calendar year. An employer may pay half before the opening of the regular school year and the rest by 24 December.

An employee who resigns or is separated before then is still entitled to it in proportion to the time worked: one twelfth of the basic salary earned from January — or the start date — to the last day. Someone working for two or more private employers, full-time or part-time, gets a 13th month pay from each of them, and so does a government employee working part-time for a private employer. Kasambahay are entitled to it too (RA 10361 s. 25).

What counts as basic salary

The DOLE-BWC handbook counts all remuneration the employer pays for services rendered, but not allowances and benefits that are not part of the basic salary: overtime, premium pay, night shift differential and holiday pay, the cost-of-living allowance and the cash value of unused leave — unless the employer, a contract or a collective agreement treats them as basic salary. Commissions on top of a fixed wage are not basic salary either (the handbook cites Boie-Takeda Chemicals v. De la Serna). The salary differential paid during maternity leave counts.

Unpaid leave and absences lower the basic salary earned that month; paid leave does not. The 13th month pay is not part of the regular wage, so it does not raise overtime, SSS, PhilHealth or retirement contributions.

Tax: the ₱90,000 exclusion

The 13th month pay and other benefits — a Christmas bonus, productivity incentives, loyalty awards, cash gifts and similar benefits — are excluded from gross income up to ₱90,000 in total for the year; anything above that is taxable compensation (Tax Code, Section 32(B)(7)(e)). The calculator adds the other benefits you enter to the 13th month pay and shows the exempt and taxable parts. Use the Philippines salary calculator or the income tax calculator to see the tax on a taxable part.

Who is not covered

PD 851 does not cover the government and its political subdivisions, including government-owned and controlled corporations (except those operating essentially as private subsidiaries), or employers of people paid purely by commission, boundary or task, or a fixed amount for a specific job — piece-rate workers are covered. Managerial employees are not rank-and-file employees under the Labor Code, so the law does not require it for them.

A Christmas or mid-year bonus or another cash bonus of at least one twelfth of the basic salary counts as the 13th month pay (its “equivalent”); where it is less, the employer pays the difference. Cost-of-living allowances, other regular allowances and non-cash benefits do not count.

Limitations

• You enter the basic salary earned; the calculator does not decide which of your allowances your employer treats as basic salary.
• Pro-rating a part month is up to the employer’s payroll: in “Month by month” type what was actually earned that month.
• Shows the taxable part of your benefits, not the tax itself; that depends on the rest of your taxable pay.
• Not legal advice. A collective agreement or company policy may give more than the legal minimum; the law sets the floor.

Privacy

Everything happens in your browser. What you enter or open here is not uploaded or stored by MySmartCoPilot.