PH Paymath

13th Month Pay Calculator (Philippines)

Compute your 13th month pay under PD 851 (as amended by RA 10653): total basic salary ÷ 12. Applies to all private-sector employees regardless of employer size or income.

The rule: 13th month pay = total basic salary earned in a calendar year ÷ 12. First ₱90,000 is tax-free (covers 13th month + other de minimis together). Excess is taxable as part of the year-end tax return (NOT automatically deducted by employer).

Your fixed monthly basic. Excludes overtime, holiday premium, ND, allowances, commissions, bonuses.
Use 12 for a full year worked. Mid-year joiners get pro-rated.

Result

Total basic salary year-to-date
₱264,000.00
13th month pay (÷ 12)
₱22,000.00
Non-taxable portion (capped at ₱90,000 combined)
₱22,000.00
Taxable excess (NOT auto-deducted; included in year-end tax)
₱0.00

Payment deadline: on or before 24 December each year. The tax computation is OUT OF SCOPE here — it depends on your total taxable income for the year and your TRAIN withholding events. Verify with your employer/HR or a CPA.

How we compute this

  1. Sum your basic salary earned from January 1 (or your start date) up to 24 December.
  2. Divide by 12 (regardless of when in the year you started — pro-rating happens by the input "months worked", not by formula).
  3. Apply the ₱90,000 non-taxable cap if total exceeds it.
  4. Taxable excess is added to your year-end ITR — it is NOT withheld at the source of payment (employers typically pay the full 13th month then you handle the tax in your annual filing).

Frequently Asked Questions

What counts as "basic salary" here?

Basic salary is your fixed monthly pay excluding: overtime, holiday premium (the +30% or +200% rate), night differential (10%), shift differential, commissions, cost-of-living allowances (when itemized), bonuses, and the 13th month itself. If your payslip separates regular basic from allowances, the basic line is what you enter.

I only worked 7 months. How much do I get?

Pro-rated: months worked × monthly basic ÷ 12. Working 7 months at ₱22,000/month → (7 × ₱22,000) ÷ 12 = ₱12,833.33. If you joined March 1 and worked through December (10 months), it would be (10 × ₱22,000) ÷ 12 = ₱18,333.33.

Is the ₱90,000 cap just for 13th month?

No — it’s a combined cap across 13th month + other de minimis benefits (SSS/GSIS, healthcare, etc.) per BIR Rules and RA 10653. Confirm with your accountant or HR before claiming ₱90,000 clean.

When is it paid?

On or before 24 December each year (DOLE Handbook). Some employers split into two halves (e.g., 30 June and 24 December) by CBA — that’s allowed.

Does my employer have a "less than ₱1,500" exemption?

No. The 2021 amendments to PD 851 removed all employer-size and income thresholds. It applies to every private-sector rank-and-file employee.