Quick answer: Your 13th month pay equals your total basic salary earned during the calendar year divided by 12. If you worked the full year on a ₱30,000 monthly basic salary, you get ₱30,000. If you worked fewer months — or had unpaid absences — you get a prorated amount. Compute yours instantly with our 13th Month Pay Calculator →
📌 13th month pay is mandatory for all rank-and-file employees under Presidential Decree No. 851, regardless of position, as long as you worked at least one month during the year. It must be paid on or before December 24.
The formula
13th Month Pay = Total Basic Salary Earned in the Calendar Year ÷ 12
What counts as “basic salary”: your fixed monthly wage plus the paid leave credits you actually used.
What is excluded:
- Allowances (COLA, transportation, meal, etc.)
- Overtime pay and night-shift differential
- Holiday and premium pay
- Cash conversion of unused leave
- Commissions and profit-sharing bonuses
Worked examples
1. Full year worked
Monthly basic salary ₱30,000 · Months worked 12:
- Total basic salary = ₱30,000 × 12 = ₱360,000
- 13th month pay = ₱360,000 ÷ 12 = ₱30,000
2. Worked only 6 months (mid-year hire or resignation)
Monthly basic salary ₱30,000 · Months worked 6:
- Total basic salary = ₱30,000 × 6 = ₱180,000
- 13th month pay = ₱180,000 ÷ 12 = ₱15,000
This is the most common question (“for 6 months”). The divisor is always 12, not the months worked — that’s what makes it prorated.
3. Worked 3 months
₱30,000 × 3 = ₱90,000 ÷ 12 = ₱7,500
4. Worked 5 months
₱30,000 × 5 = ₱150,000 ÷ 12 = ₱12,500
5. With unpaid absences
If unpaid absences reduced your actual earned basic salary to, say, ₱345,000 for the year:
13th month pay = ₱345,000 ÷ 12 = ₱28,750
See the dedicated guide: 13th month pay with absences →
When your salary varies month to month
If you had a salary increase mid-year, or variable pay, don’t use a single monthly figure — add up your actual basic salary for each of the 12 months and divide by 12. Our calculator has a month-by-month mode for exactly this case (something Google’s quick answer can’t handle): try it →
Is 13th month pay taxable?
The first ₱90,000 of your combined 13th month pay and other benefits is tax-exempt. Anything above that is added to your taxable income. Full breakdown: Is 13th month pay taxable? →
Deadline and who is entitled
- Who: all rank-and-file employees who worked at least one month in the year.
- When: on or before December 24.
- Managerial employees are not legally entitled (but many employers grant it anyway).
Sources: DOLE Presidential Decree No. 851 and the latest Labor Advisory; BIR (tax exemption). For estimation only — confirm with your HR department.