Keywords: 13th month pay Philippines, 13th month calculator
What is 13th Month Pay?
The 13th month benefit in the Philippines is a government-mandated incentive given to rank-and-file employees who have worked for at least one month within the year. This additional pay serves as financial support, usually released before Christmas.
How to Compute 13th Month Pay (Formula)
The standard formula is:
13th Month Pay = Total Basic Salary Earned During the Year ÷ 12
For example:
- If your total basic salary for 2025 is ₱360,000, the year-end pay would be:
₱360,000 ÷ 12 = ₱30,000
Key Notes
- Only the basic salary is considered in the computation.
- Overtime, night differential, and allowances are excluded.
- Employees with less than a year of service will receive a prorated amount.
Use the Free Online Calculator
Instead of manual computation, you can use the free tool here: Suweldo Calculator. It quickly estimates your mandatory 13th month benefit based on salary and months of service.
FAQs
1. Who is covered?
All rank-and-file employees who worked at least one month are entitled.
2. Is it taxable?
Amounts up to ₱90,000 are tax-free. Any excess will be taxed.
3. When is it released?
Employers must release it on or before December 24.
4. Do resigned employees still get it?
Yes, they receive a prorated amount based on their months of service.
5. Is this the same as a Christmas bonus?
No. The 13th month pay is mandatory, while a Christmas bonus is optional.
Final Thoughts
The 13th month benefit helps Filipino workers enjoy the holidays with extra financial support. Whether you’re employed the whole year or only a few months, you can estimate your payout using the Suweldo Calculator.