13th Month Pay Calculator
Calculate your 13th month pay under Philippine law (PD 851). Enter your monthly basic salary and months worked to see your entitlement and tax status.
What is 13th Month Pay?
The 13th month pay is a mandatory monetary benefit in the Philippines, established under Presidential Decree No. 851 (PD 851) signed in 1975. It requires all employers to pay their rank-and-file employees an additional month's salary, equivalent to one-twelfth (1/12) of the total basic salary earned during the calendar year.
This benefit must be paid on or before December 24 of each year. It applies to all rank-and-file employees who have worked for at least one month during the calendar year, regardless of the nature of their employment or the method by which their wages are paid. Managerial employees are not covered, though many employers extend this benefit to all staff as a matter of practice.
Employees who have not worked the full 12 months — whether due to resignation, termination, or starting mid-year — are entitled to a pro-rated 13th month pay based on the number of months they actually worked.
PD 851 — 13th Month Pay Requirements
Presidential Decree No. 851 and its Revised Guidelines set the rules for 13th month pay in the Philippines. Here are the key provisions:
| Provision | Details |
|---|---|
| Who is eligible | All rank-and-file employees who have worked at least one month during the calendar year |
| Calculation basis | Total basic salary earned during the year divided by 12 |
| Payment deadline | On or before December 24 of each year |
| Tax exemption | Exempt up to PHP 90,000 under the TRAIN Law (RA 10963) |
| Pro-rating | Employees who worked less than 12 months receive a proportional amount |
| Exclusion | Managerial employees are not covered under PD 851 |
Employees who have not completed 12 months of service receive a proportional 13th month pay based on the number of months actually worked during the calendar year.
Employers must pay 13th month pay on or before December 24. Some employers split the payment, giving half in June and the remainder by December 24.
Under the TRAIN Law, 13th month pay is tax-exempt up to PHP 90,000. Any amount exceeding this threshold is subject to regular income tax withholding.
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Frequently Asked Questions
About 13th month pay in the Philippines
All rank-and-file employees in the Philippines who have worked for at least one month during the calendar year are entitled to 13th month pay. This applies regardless of employment status (regular, probationary, fixed-term, project-based, or seasonal) and regardless of the method of computing wages. Managerial employees are the only exception under PD 851.
Under Presidential Decree No. 851, employers are required to pay 13th month pay on or before December 24 of each year. Some employers choose to split the payment — giving half in June and the other half in December — but the full amount must be received by December 24 at the latest.
The 13th month pay is tax-exempt up to PHP 90,000 under the TRAIN Law (Republic Act No. 10963). Any amount exceeding PHP 90,000 is subject to income tax. This threshold applies to the combined total of 13th month pay and other benefits received during the year.
The 13th month pay is computed based on the employee's basic salary. Basic salary does not include allowances, overtime pay, holiday pay, night shift differential, premium pay, or other monetary benefits. Commission-based employees use their basic salary portion, not commissions.
Employees who resign or are separated from service before December are still entitled to a pro-rated 13th month pay. The amount is calculated based on the number of months they actually worked during the calendar year. Employers must include the pro-rated 13th month pay in the employee's final pay.
