How 13th-month pay works
- The formula — total basic salary earned during the year ÷ 12. A full year at a steady basic works out to about one month's basic pay.
- Basic salary only — overtime, holiday premiums, night differential, and allowances are excluded from the computation.
- Tax treatment — it's tax-exempt up to ₱90,000 combined with other benefits; only the excess is taxable.
Frequently asked questions
When must it be paid?
Under PD 851, rank-and-file employees must receive their 13th-month pay on or before December 24 each year.
Is 13th-month pay taxed?
It's exempt up to ₱90,000 when combined with other benefits (like bonuses). Anything above that combined cap is added to your taxable income.
What counts as basic salary?
Your fixed basic pay. Overtime, allowances, and other premiums don't count, so enter basic pay only for an accurate result.
Is my information uploaded?
No. The calculation runs entirely in your browser. Nothing you enter is stored or sent to a server.