13th-month pay calculator
Work out how to compute 13th-month pay from basic salary earned during the year. Adjust for the months worked and compare qualifying benefits with the combined tax exemption.
How this calculation works
For covered private-sector rank-and-file employees with at least one month of service. Gross 13th-month pay is eligible basic salary earned during the calendar year divided by 12. Enter actual basic salary earned, not annualized current salary. The ₱90,000 exemption is shared with eligible other benefits, taxable excess is not the tax amount.
Pay entitlement and tax exemption are different
Presidential Decree 851 and its implementing rules govern covered employees’ 13th-month pay. Basic salary actually earned during the year is divided by 12. The income-tax exclusion under NIRC Section 32(B)(7)(e), amended by TRAIN (RA 10963), is a combined ₱90,000 for 13th-month pay and qualifying other benefits. An amount above that limit is taxable income, not the tax bill itself.
For example, ₱80,000 of 13th-month pay plus ₱30,000 of qualifying other benefits leaves ₱20,000 above the combined exemption. Use the annual income-tax calculator on total annual taxable income, including that excess where applicable. See the DOLE and BIR sources below.
Sources & assumptions
- DOLE: 13th-month pay computation and coverage ↗︎
- BIR: mandatory deductions and the ₱90,000 benefits exemption ↗︎
Rules and sources reviewed 30 September 2026. Estimates are for planning, actual payroll and lender terms can differ.
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