Free calculator · Philippines
13th Month Pay Calculator (Philippines, 2026)
Compute 13th month pay for a full year, a new hire or a resigned employee, and see how much is tax-exempt under the ₱90,000 ceiling. Runs in your browser; nothing is sent anywhere.
The formula
Months worked is counted in whole months from the start date plus leftover days as a share of the last month. If your payroll shows the exact basic pay earned (after unpaid absences), use the "total basic salary earned" mode instead: that is the exact legal basis.
Tax: the ₱90,000 ceiling
13th month pay plus other benefits (Christmas bonus, incentives) are tax-free up to ₱90,000 a year. A ₱150,000-a-month manager gets a ₱150,000 13th month: ₱90,000 is exempt and ₱60,000 is added to taxable compensation at year-end.
Excel + Google Sheets
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The same verified numbers in a spreadsheet: employee list, semi-monthly or monthly payroll register, automatic SSS / PhilHealth / Pag-IBIG (employee and employer shares), withholding tax, printable payslips, monthly remittance totals, 13th month for everyone (including resigned staff), final pay, a year-end BIR 2316 annualization and a BIR 2307 tracker. Every rate cites its circular. ₱499 for one business, ₱1,499 for bookkeepers (10 clients).
FAQ
13th month pay questions
How is 13th month pay computed in the Philippines?
Add up the basic salary the employee actually earned from January 1 to December 31, then divide by 12 (PD 851 implementing rules, Sec. 2(a)). Basic salary excludes overtime, holiday and night-shift pay, allowances not integrated into basic pay, and unpaid absences.
When must 13th month pay be released?
On or before December 24 of each year (PD 851). Employers may pay half before the school year opens and the rest by December 24.
Is 13th month pay taxable?
Up to ₱90,000 a year of 13th month pay and other benefits (Christmas bonus, productivity incentives) is excluded from taxable income under Sec. 32(B)(7)(e) of the Tax Code as amended by TRAIN. Only the excess over ₱90,000 is taxable.
Do resigned or newly hired employees get 13th month pay?
Yes, in proportion to the time worked: the formula already does this because it only counts basic salary actually earned in the year. Rank-and-file employees who worked at least one month in the year are covered (PD 851 as modified by Memorandum Order No. 28).
Is 13th month pay the same as a Christmas bonus?
No. The 13th month is required by law; a Christmas bonus is voluntary unless it is in a contract or company practice. Both count toward the ₱90,000 tax-exempt ceiling.
Sources
Every number on this page comes from these official documents, checked on September 23, 2026.
- Presidential Decree No. 851 and its Implementing Rules (13th-month pay: 1/12 of basic salary within a calendar year, not later than 24 December; worked at least one month) - text via LawPhil (mirror of the official text; Official Gazette and DOLE sites return HTTP 403 from our network)
- Memorandum Order No. 28 (1986) - all employers must pay ALL rank-and-file employees 13th-month pay (removes the old P1,000 salary cap) - text via LawPhil
- NIRC Sec. 32(B)(7)(e) and (f) - 13th month pay and other benefits exclusion 'shall not exceed Ninety thousand pesos (P90,000)'; GSIS/SSS/Medicare/Pag-IBIG contributions and union dues excluded
- DOLE Revised Guidelines on the Implementation of the 13th Month Pay Law (1987) - pro-rata 13th month for resigned/terminated employees; DOLE Labor Advisory No. 06-2020 - final pay within 30 days of separation UNVERIFIED
For estimation only. This calculator is not legal, tax or accounting advice. Verify with your accountant and with the agency (SSS, PhilHealth, Pag-IBIG, BIR, DOLE) before you pay or file. Rates change; if you spot an outdated figure, tell us through our Gumroad page.