Keywords: 13th month pay calculator, 13th month pay computation 2025, how to compute 13th month pay with absences, salary computation Philippines, 13th month pay formula, 13th month pay law
💡 What is 13th Month Pay?
The 13th month pay is a mandatory benefit given to all rank-and-file employees in the Philippines under Presidential Decree No. 851. It must be released on or before December 24 each year.
This benefit is equivalent to one-twelfth (1/12) of the total basic salary earned by the employee within a calendar year — excluding allowances, overtime pay, and other incentives.
You can easily check your computation using the Suweldo Calculator — a free salary and benefits computation tool for Filipino employees.
🧾 13th Month Pay Formula
Formula:
13th Month Pay = (Total Basic Salary Earned for the Year) ÷ 12
If you have absences or unpaid leaves, your total basic salary will be lower, which means your 13th month pay will also decrease.
📉 How Absences Affect 13th Month Pay
Unpaid absences, tardiness, or leave without pay reduce your total earnings for the year. Since the computation is based only on your actual salary earned, these deductions result in a smaller 13th month pay.
🪜 Step-by-Step: How to Compute 13th Month Pay with Absences (2025 Example)
Step 1: Get your total basic salary per month
Example: ₱20,000 monthly basic salary from January to December 2025.
Step 2: Deduct unpaid absences
Suppose you had 3 unpaid absences in July.
Daily rate = ₱20,000 ÷ 26 = ₱769.23 per day
Unpaid absences = 3 × ₱769.23 = ₱2,307.69
July salary = ₱20,000 − ₱2,307.69 = ₱17,692.31
Step 3: Compute total basic salary earned for the year
11 full months + 1 month with absence:
(₱20,000 × 11) + ₱17,692.31 = ₱237,692.31
Step 4: Apply the formula
₱237,692.31 ÷ 12 = ₱19,807.69
✅ Your 13th Month Pay = ₱19,807.69
You can double-check this amount using the 13th Month Pay Calculator Philippines 2025 to see how your absences affect your total pay.
📅 13th Month Pay Coverage
- Coverage period: January 1 to December 31, 2025
- Payment deadline: On or before December 24, 2025
- Applies to: All rank-and-file employees who worked for at least one month in 2025
⚖️ 13th Month Pay vs Bonus
| Category | 13th Month Pay | Bonus |
|---|---|---|
| Mandatory? | Yes (by law) | No |
| Computation Basis | 1/12 of annual basic salary | Company discretion |
| Release Date | On or before Dec 24 | Anytime (optional) |
📌 Important Reminders (DOLE Guidelines)
- Overtime pay, night differential, and allowances are not included in the computation.
- Resigned or terminated employees are still entitled to a pro-rated 13th month pay.
- Absences and unpaid leaves directly reduce total salary and affect your computation.
🧠 Quick Tip
If you want to see your exact 13th month pay or net take-home pay after taxes, visit SuweldoCalculator.com — it’s free, fast, and designed for Filipinos working in the private sector.
🏁 Example Summary
| Scenario | Computation | Result |
|---|---|---|
| Full attendance (₱20,000/month) | ₱240,000 ÷ 12 | ₱20,000 |
| With 3 unpaid absences | ₱237,692 ÷ 12 | ₱19,807.69 |
Your absences directly affect your 13th month pay because it depends on your total actual salary earned for the year.