Find out how much 13th-month pay you should receive this year, including pro-rated amounts if you joined or left mid-year, and whether any part is taxable.
13th-month pay₱25,000.00due on or before 24 December
Tax-free part (with other bonuses)
₱25,000
Taxable part
₱0
Basic salary earned this year
₱300,000
÷ 12
₱25,000.00
Only basic salary counts: overtime, holiday pay, night differential, allowances and commissions that are not part of basic pay are excluded.
Employees who resign or are dismissed during the year receive it pro rata, usually with their final pay.
This is an estimate based on published rates, not tax or financial advice. Your payslip or assessment may differ. We are an independent site, not affiliated with any government agency.
The formula
13th-month pay = total basic salary earned in the calendar year ÷ 12
Unpaid absences, lates and unpaid leave reduce the basic salary earned, so they reduce the 13th-month pay too.
Worked example
₱25,000 a month, joined in June (7 months)
Seven months of basic pay is ₱175,000, so the 13th-month pay is ₱175,000 ÷ 12 = ₱14,583.
13th-month pay₱14,583.33due on or before 24 December
Tax-free part (with other bonuses)
₱14,583
Taxable part
₱0
Basic salary earned this year
₱175,000
÷ 12
₱14,583.33
Tax
13th-month pay, Christmas bonuses, productivity incentives and other benefits are tax-free up to a combined ₱90,000 a year. With a monthly basic salary above ₱90,000, or large additional bonuses, the excess is added to your taxable compensation and taxed at your graduated rate – usually through the December payroll.
Questions people ask
How is 13th-month pay computed?
Add up the basic salary you actually earned during the calendar year and divide by 12. A full year at ₱25,000 a month gives ₱25,000.
Is 13th-month pay taxable?
Not up to ₱90,000, counted together with other bonuses and benefits for the year. Only the excess is added to your taxable income.
Do I get 13th-month pay if I resigned?
Yes, pro rata – one-twelfth of the basic salary you earned in the year up to your last day, usually paid with your final pay.
Are overtime and allowances included?
No. Only basic salary counts – overtime, holiday pay, night differential and allowances are excluded unless your employer treats them as part of basic pay.
This is an estimate based on published rates, not tax or financial advice. Your payslip or assessment may differ. We are an independent site, not affiliated with any government agency. Read the full disclaimer.
