13th Month Pay Calculator

About this calculator

13th month pay is a mandatory year-end bonus in countries like the Philippines, calculated as: total basic salary earned during the calendar year divided by 12. Basic salary excludes overtime, allowances and most other premiums, and unpaid absences or leave without pay reduce the basic salary earned for the year, which lowers the resulting 13th month figure proportionally — it isn’t simply one extra month of a fixed salary.

Under Philippine labor law (Presidential Decree No. 851), the first 90,000 pesos of 13th month pay (combined with certain other benefits, depending on current thresholds) is tax-exempt, with any amount above that threshold taxed as ordinary income; the payment must be given to rank-and-file employees on or before December 24 each year. Payroll teams need to split the total into its exempt and taxable portions correctly, since getting that split wrong misstates an employee’s tax withholding for the year.

This calculator takes your basic salary and unpaid absence days and computes your pro-rated 13th month pay, split into the tax-exempt and taxable amounts.