📅 Deadline Dec 24, 2026
💰 Tax-Free Up To ₱90,000
👷 Min. Service 1 Month

13th Month Pay Calculator

Basic salary only — excludes overtime, holiday pay, and allowances.
Count months where you worked at least 1 day.
Date you started, or Jan 1 if employed from start of year.
Dec 31 if still employed. Your resignation date if separated.

Enter your actual basic salary earned each month. Enter 0 for months not yet worked or on unpaid leave.

Total basic earned: ₱0.00
Your 13th Month Pay
₱0.00
Based on DOLE official formula
✅ Tax-Exempt Portion
₱0.00
⚠️ Taxable Portion
₱0.00

The Official Formula & What Counts as Basic Salary

Under Presidential Decree No. 851 and DOLE guidelines, 13th month pay is computed as:

The most common confusion is what qualifies as "basic salary." DOLE's definition is strict:

✅ Include in Basic Salary ❌ Exclude from Calculation
✔ Base hourly, daily, or monthly wage✘ Overtime (OT) pay
✔ Night shift differential (if regular)✘ Holiday pay & premium pay
✔ Paid vacation & sick leave (paid days)✘ Unused leave cash-out / conversion
✔ COLA (if integrated into salary policy)✘ Rice, clothing & de minimis allowances
✔ Maternity leave differentials✘ Christmas bonus (discretionary)
✔ Salary differentials & adjustments✘ SSS, PhilHealth & Pag-IBIG employer share
Mid-year hires & resignations: Only the months you actually worked count. Dividing by 12 automatically yields the correct prorated amount — this is the official DOLE method.

Tax Implications for 2026

The ₱90,000 Rule: Your 13th month pay is completely income tax-exempt up to ₱90,000 under the TRAIN Law (RA 10963). This limit applies to the combined total of 13th month pay and other bonuses.

What happens above ₱90,000?

Any amount exceeding the ₱90,000 ceiling is combined with your other taxable bonuses and added to your gross taxable compensation. Your employer will include this in your year-end BIR tax adjustment (BIR Form 2316), due in January of the following year.

Maximizing the tax-free ceiling

Employers can maximize de minimis benefits — such as rice allowance (up to ₱3,000/month) and uniform/clothing allowance (up to ₱6,000/year) — under BIR Revenue Regulations RR No. 29-2025. Structured de minimis benefits keep more of the 13th month pay below the ₱90,000 threshold.

Note for employers: De minimis benefits are non-taxable and do not count toward the ₱90,000 limit. Optimizing them is a legitimate and common practice under DOLE and BIR guidelines.

Frequently Asked Questions

👥 For Employees
Yes. All rank-and-file employees in the private sector who have worked for at least one (1) month during the calendar year are legally entitled to 13th month pay — regardless of employment status (regular, probationary, project-based, seasonal, or contractual).
Yes. You are entitled to a prorated 13th month pay covering January to your last day of work. This is typically released as part of your final pay or backpay within 30 days of your separation date, per DOLE Labor Advisory No. 06-20.
No. They are two separate things. The 13th month pay is a legal mandate under PD 851 — every covered employer must pay it. A Christmas bonus is purely discretionary, depending on company performance or goodwill. One does not replace the other.
Unpaid absences directly reduce your actual basic salary earned for those months. For example: ₱30,000 monthly rate but two weeks of unpaid leave in October means your October earnings are about ₱15,000. The Month-by-Month tab handles this exactly — enter the actual amount received each month.
PD 851 covers the private sector only. Government employees receive a Year-End Bonus (YEB) equivalent to one month’s basic salary, governed by separate DBM rules. It functions similarly but is a different legal entitlement.
Yes. Employers may pay in two tranches — for example, half in June and the balance in December — as long as the full amount is paid on or before December 24. Many companies split as an added benefit. The law only mandates the total and the final deadline.
🏢 For Employers
All covered employers must pay on or before December 24. A compliance report is due to DOLE on or before January 15 of the following year via the DOLE Online Compliance System (ols.dole.gov.ph).
No. DOLE does not allow exemptions or waivers regardless of company size or financial losses. Even micro-businesses and loss-incurring companies must comply. The only exempt employers under PD 851 are: the national government & GOCCs, household employers of kasambahay, and employers already providing an equivalent or better benefit.
Employers must file a 13th Month Pay Compliance Report through the DOLE Online Compliance Portal on or before January 15 of the following year. The report confirms total amount paid and number of employees covered. Non-filing is subject to DOLE sanctions.
For time-and-output workers (e.g., daily rate), compute the total basic wages actually earned during the year and divide by 12. Commissions are generally excluded unless they form a fixed part of the basic wage by company policy or contract. When in doubt, use the month-by-month approach and consult DOLE.

How to File a DOLE Complaint for Non-Payment

If your employer fails to pay, underpays, or delays your 13th month pay past December 24, you can file a complaint through the DOLE Single Entry Approach (SEnA) — a fast administrative remedy through mediation.

Gather documentation: Collect payslips, your employment contract, and any written communication showing the unpaid or short-paid amount.
File online or in-person: Go to the nearest DOLE Regional, District, or Provincial Office with jurisdiction over your workplace, or initiate online at sena.dole.gov.ph.
SEnA mediation: A DOLE Desk Officer will call both parties to a conference within 5 working days. Most cases resolve through mediation without formal litigation.
If unresolved: After 30 days, the case may be referred to the appropriate DOLE office or the National Labor Relations Commission (NLRC) for formal adjudication.
Employer penalties: Failure to comply with PD 851 is a criminal offense punishable by fines and/or imprisonment. DOLE conducts routine compliance inspections, especially in Q4.