How 13th month pay is computed
Under Presidential Decree 851, rank-and-file employees in the private sector who worked at least one month in the year are entitled to 13th month pay of at least one-twelfth of the basic salary earned during the calendar year:
13th month pay = total basic salary earned ÷ 12
If you worked the whole year at the same salary, that equals one month's basic pay. If you started mid-year, enter the number of months you worked. Deduct unpaid absences, because you didn't earn salary for those days.
What counts as basic salary?
Basic salary generally excludes overtime, night shift differential, holiday pay and allowances, unless your contract or company policy includes them.
Is it taxable?
Under the TRAIN Law, 13th month pay and other benefits are tax-exempt up to a combined ₱90,000 a year. Enter your other bonuses and benefits to see whether any part is taxable. Check the BIR for the latest thresholds.
Frequently asked questions
When must it be paid?
On or before 24 December. Employers may pay it in two instalments as long as the full amount is paid by then.
I resigned before December. Do I still get it?
Yes — a pro-rated amount based on the basic salary you earned, usually released with your final pay.
General information, not legal or tax advice. For your situation, check with DOLE, the BIR or your HR team.