Compute your 13th month pay in seconds using the exact rule from Presidential Decree 851: total basic salary earned this year ÷ 12 — including prorated amounts if you didn't work the full year, and the ₱90,000 tax-free check.
Basic salary only — no overtime, allowances, or premiums.
Use decimals for partial months, e.g. 7.5.
This calculator applies the standard rules under PD 851 and its DOLE guidelines. Your company may have more generous policies; your payslip and HR remain the final word.
The rule comes from Presidential Decree 851 and its implementing guidelines from the Department of Labor and Employment (DOLE), and it's simpler than most people think:
If you worked the whole year at the same basic salary, the answer is exactly one month's pay. If you started mid-year, resigned, took unpaid leave, or got a raise, the same formula handles it automatically — you just divide what you actually earned by 12.
| Situation | Basic salary earned in the year | 13th month pay |
|---|---|---|
| Full year at ₱25,000/month | ₱300,000 | ₱300,000 ÷ 12 = ₱25,000 |
| Started July 1 at ₱25,000/month (6 months) | ₱150,000 | ₱150,000 ÷ 12 = ₱12,500 |
| Full year, one month unpaid leave | ₱275,000 | ₱275,000 ÷ 12 = ₱22,916.67 |
There's no separate "prorated formula" — proration is built into the main rule. Whatever basic salary you earned before resigning (or after being hired) is divided by 12. Someone who earned ₱100,000 from January to April and then resigned gets ₱100,000 ÷ 12 = ₱8,333.33, payable as part of final pay.
Use the Exact (per month) tab above to compute this precisely — enter only the months you were actually paid.
Under the TRAIN law, 13th month pay and "other benefits" are tax-exempt up to ₱90,000 combined per year. "Other benefits" includes things like Christmas bonuses and productivity incentives. Only the amount above ₱90,000 gets added to your taxable income.
The calculator above flags this automatically when your result crosses the cap.
Total basic salary earned during the calendar year ÷ 12. Full year at one salary = one month's basic pay; fewer months = automatically prorated.
On or before December 24, every year. Companies may release it in two halves — both count toward the same legal obligation.
All private-sector rank-and-file employees with at least one month of service during the year, regardless of status — plus kasambahay under the Batas Kasambahay.
Tax-free up to ₱90,000 (combined with other benefits) under the TRAIN law. Only the excess above ₱90,000 is taxed.
Your base pay actually earned. Overtime, holiday premium, night differential, and allowances are excluded unless your company includes them by policy or practice.
Yes, prorated: the basic salary you earned before leaving ÷ 12, included in your final pay.
Yes — the formula uses salary actually earned, so unpaid days lower the total. Paid leaves still count in full.
The legal mandate covers private-sector rank-and-file only. Many companies extend it to managers voluntarily; government workers have a separate year-end bonus system.