Philippines 13th Month Pay Calculator
Work out an employee's 13th month pay for 2026, whether they worked the full year, joined midway or have left. Add unpaid absences and other bonuses to see how much is tax-free under the ₱90,000 ceiling.
13th month pay · PD 851
Tax exemption · Tax Code Sec. 32(B)(7)(e)
₱90,000 ceiling · TRAIN Law
Final pay · Labor Advisory 06-20
Step 1
Your pay
Monthly basic salary
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Basic pay only. Leave out overtime, night differential, holiday pay and allowances.
Unpaid absences and leaveOptional
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Salary deducted this year for unpaid days or undertime. Paid leave doesn't count.
Other bonuses this yearOptional
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Christmas, mid-year or performance bonuses. They share the ₱90,000 tax-free limit.
2026 rules: 13th month pay is total basic salary earned in the year ÷ 12 (PD 851), due by 24 December. Up to ₱90,000 of it and other bonuses combined is tax-free. Estimates only, not tax advice.
Step 2
Results
For calendar year 2026
13th month pay · 2026
₱0.00
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Tax-exempt
₱0
After tax
₱0
Pay by
24 Dec 2026
Tax-free ceiling left
₱0
Step 3
Breakdown
Every line behind the result
How it's computed
Tax treatment
13th month pay and other bonuses share one ₱90,000 exemption a year
Tax on any excess is estimated at the employee's marginal rate. See how each figure is worked out.
Payroll with ZingHR
Pay 13th month on time, every December
ZingHR accrues 13th month pay every pay run and releases it with the right tax treatment for your whole team.
Prorated amounts for new joiners and leavers, worked out automatically
₱90,000 exemption tracked across 13th month pay and every bonus
Final pay for separated employees, including their 13th month share
How these numbers were worked out
Every figure above, worked out from your salary using 2026 rules.
13th month pay in the Philippines, explained
Presidential Decree 851 requires every private-sector employer to give rank-and-file employees a 13th month pay each year. It equals one-twelfth of the basic salary the employee actually earned during the calendar year, and it has to be paid on or before 24 December.
Because the divisor is always 12, the amount prorates on its own. Someone who joined in July and earned ₱20,000 a month for six months has earned ₱120,000, so their 13th month pay is ₱10,000. Dividing by six instead would double it, which is the most common mistake.
Every rank-and-file employee who worked at least one month in the year qualifies, whether regular, probationary, project-based, seasonal or fixed-term. Managerial employees, government employees and workers paid purely on commission or by task are not covered by PD 851, though many employers pay them a 13th month anyway.
What counts as basic salary
Included
Not included
Basic monthly or daily pay
Overtime pay
Paid leave (vacation and sick leave with pay)
Night shift differential
Employer's maternity leave salary differential
Holiday and rest day premiums
Any pay the company treats as basic salary by policy, CBA or practice
COLA, allowances, cash conversion of unused leave and the SSS maternity benefit
Prorated 13th month pay at this salary
Months worked
Basic salary earned
13th month pay
Based on your monthly basic salary with no unpaid absences.
Annual income tax brackets (TRAIN Law)
Only the part of 13th month pay and bonuses above ₱90,000 is taxed, at the rate for the employee's total taxable income for the year.
Annual taxable income
Tax due
Up to ₱250,000
0% (exempt)
₱250,001 to ₱400,000
15% of the excess over ₱250,000
₱400,001 to ₱800,000
₱22,500 + 20% of the excess over ₱400,000
₱800,001 to ₱2,000,000
₱102,500 + 25% of the excess over ₱800,000
₱2,000,001 to ₱8,000,000
₱402,500 + 30% of the excess over ₱2,000,000
Over ₱8,000,000
₱2,202,500 + 35% of the excess over ₱8,000,000
Highlighted: the bracket for the salary above.
When 13th month pay must be paid
Situation
Deadline
Full payment
On or before 24 December
Split payment (optional)
Half before the school year opens, the rest by 24 December
Resigned or terminated employees
With final pay, within 30 days of the last working day
Compliance report to DOLE
By 15 January of the following year
Frequently asked questions
How is 13th month pay computed?
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Add up the basic salary the employee earned from January to December, then divide by 12. For someone on a fixed monthly salary who worked the whole year without unpaid absences, that's simply one month's basic salary.
How much do I get if I only worked six months?
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Multiply your monthly basic salary by the months you worked, then divide by 12. Six months at ₱20,000 is ₱120,000 earned, so your 13th month pay is ₱10,000. The divisor stays at 12 no matter how many months you worked.
Is 13th month pay taxable?
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Only if it pushes your total bonuses over ₱90,000. 13th month pay, Christmas bonuses, mid-year bonuses and similar benefits share one ₱90,000 tax-free limit each year. Anything above it is added to your taxable income and taxed at your normal rate.
When does it have to be paid?
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On or before 24 December. Employers may pay half earlier in the year, typically before the school year opens, as long as the balance is paid by 24 December.
Do resigned or terminated employees get 13th month pay?
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Yes. They're entitled to a prorated amount based on the basic salary they earned up to their last day, paid with their final pay within 30 days of separation.
Do absences reduce 13th month pay?
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Unpaid absences and undertime do, because they lower the basic salary actually earned. Paid leave doesn't, since it's paid at the basic rate.
Is a Christmas bonus the same as 13th month pay?
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No. 13th month pay is required by law; a Christmas bonus is up to the employer. A bonus can't replace 13th month pay unless it's at least equal to it, and both count towards the same ₱90,000 tax-free limit.
How does maternity leave affect it?
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The SSS maternity benefit isn't basic salary, so it's left out. The salary differential the employer pays on top of it is included, so months on maternity leave still count, but usually for less than a full month's salary.
Can ZingHR handle 13th month pay for my whole team?
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Yes. ZingHR accrues 13th month pay every pay run, prorates it for joiners and leavers, applies the ₱90,000 exemption across all bonuses and pays it out by December. Request a demo to see it with your own data.
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