13th Month Pay Calculator
Calculate your 13th month pay and determine tax implications based on the ₱90,000 tax-exempt threshold under Philippine law.
About 13th Month Pay
What is 13th Month Pay?
The 13th month pay is a mandatory benefit in the Philippines required by Presidential Decree No. 851. It's equivalent to one-twelfth (1/12) of an employee's basic annual salary, paid on or before December 24 each year.
Who is Entitled?
All rank-and-file employees who have worked for at least one month during the calendar year are entitled to 13th month pay. This includes:
- Regular employees
- Probationary employees
- Casual and contractual workers
- Part-time and seasonal workers (on a pro-rata basis)
Tax Exemption Threshold
Under the TRAIN Law (RA 10963), 13th month pay and other benefits are tax-exempt up to ₱90,000. Any amount exceeding ₱90,000 is subject to withholding tax.
Example:
If your 13th month pay is ₱100,000:
- • Tax-exempt: ₱90,000
- • Taxable amount: ₱10,000
How to Compute
Formula:
For employees who worked less than a year:
Legal References
Presidential Decree No. 851
Mandates payment of 13th month pay to all rank-and-file employees in the private sector.
View DOLE Advisory on P.D. 851TRAIN Law (RA 10963)
Tax Reform for Acceleration and Inclusion - establishes the ₱90,000 tax exemption for 13th month pay and other benefits.
View BIR Tax Reform InformationDepartment of Labor and Employment (DOLE)
Official guidelines and implementing rules for 13th month pay computation and distribution.
Visit DOLE Official WebsiteDisclaimer: This calculator provides estimates based on current Philippine labor laws. Your actual 13th month pay may vary depending on company policies and employment terms. Always consult with your HR department for accurate figures.