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13th month pay calculator 2026

Work out the 13th month pay for each of your employees, or for yourself, the way DOLE computes it: total basic salary earned this year ÷ 12. It must be paid on or before 24 December 2026.

Calculate 13th month pay

Private: everything is worked out on your device. Nothing you type is sent or saved.

  1. How is this employee paid?

    Basic pay only: no allowances or overtime.

    12 if all year. Hired 1 July: 6.

    More options: absences, amount already paid, left the company

    Days absent without pay × the daily rate. Paid leave is not deducted.

    For example, half paid in June.

    Count the pay up to the last day. Due when employment ends.

    Enter the pay above to see this employee's 13th month pay.

Many employees? Paste a list

Copy two columns from your spreadsheet, or type them like: Ana Cruz, 18000

Your payroll

Total 13th month pay (0 employees)
₱0
Already paid
₱0
Balance due by 24 December 2026
₱0

Due on or before 24 December 2026.

  • 1 employee not counted yet: fill in the pay, or fix the field marked in red.
  • Amounts are rounded to the nearest centavo.

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How is 13th month pay computed?

13th month pay is the total basic salary an employee earned from January to December, divided by 12. Every rank-and-file employee in the private sector who worked at least one month in the year is entitled, however they are paid. It must be paid on or before 24 December 2026.

Formula
Total basic salary earned in the year ÷ 12
Who gets it
Rank-and-file employees with at least 1 month of service in the year
Deadline
On or before 24 December 2026; it may be paid in two parts
Tax
Tax-exempt up to ₱90,000, together with other benefits
Left the company?
Pro-rated, and due when employment ends
Legal basis
PD 851 and DOLE's Revised Guidelines on the 13th Month Pay Law

How 13th month pay is computed

Add up the basic salary the employee actually earned from 1 January to 31 December 2026, then divide by 12. Count only what was earned: paid leave counts, unpaid absences don't. For someone who left, count up to their last day.

Full year, monthly salary

  • Monthly basic salary: ₱18,000
  • ₱18,000 × 12 months = ₱216,000

₱216,000 ÷ 12 = ₱18,000

Hired on 1 July

  • Monthly basic salary: ₱18,000
  • ₱18,000 × 6 months = ₱108,000

₱108,000 ÷ 12 = ₱9,000

Daily-paid

  • Daily rate: ₱695, paid for 261 days
  • ₱695 × 261 = ₱181,395

₱181,395 ÷ 12 = ₱15,116.25

With unpaid absences

  • Full year at ₱18,000: ₱216,000
  • 10 unpaid days deducted: − ₱6,900
  • Basic salary earned: ₱209,100

₱209,100 ÷ 12 = ₱17,425

Paid half in June? The ₱18,000 employee above was paid ₱9,000 mid-year, so ₱9,000 is still due by 24 December 2026. The calculator rounds each amount to the nearest centavo.

What counts as basic salary

Only basic salary counts. Most extras are left out, unless a company agreement or long practice treats them as part of the basic salary.

Pay items, and whether each counts toward 13th month pay
Pay itemCounts?Note
Basic salary or wage for work doneYesMonthly, daily or piece-rate.
Paid leave (vacation, sick, service incentive leave used)YesDays on leave with pay count as basic salary earned.
Unpaid absences and leave without payNoThey reduce the basic salary earned.
Overtime payNoUnless your company treats it as part of basic pay.
Night-shift differentialNoUnless treated as basic pay by agreement or practice.
Holiday pay and premium pay (rest days, special days)NoUnless treated as basic pay by agreement or practice.
Allowances and COLANoUnless integrated into the basic salary.
Profit sharingNoNot part of basic salary.
Cash conversion of unused leaveNoConverting leave credits to cash is excluded.
Sales commissionsDependsCommissions that are part of a salesperson's pay have been counted by the Supreme Court; productivity bonuses are not. Ask DOLE for your case.

Who is entitled to 13th month pay

Every rank-and-file employee in the private sector who worked at least one month during the calendar year, whatever their job title or employment status, and however they are paid: by the month, by the day, by the piece, or a fixed wage plus commission. Someone with more than one employer gets it from each of them.

  • Managerial employees are not covered by the law. Many employers give it anyway, by policy or contract.
  • Household workers (kasambahay) with at least one month of service are entitled under the Batas Kasambahay (RA 10361).
  • Not covered: government employees; employers already paying a 13th month pay or its equivalent (at least 1/12 of the basic salary, such as a Christmas bonus); and workers paid purely on commission, boundary or task basis.
  • Under one month of service in the year: not entitled.

The deadline: on or before 24 December 2026

The law requires 13th month pay to be paid not later than 24 December each year. An employer may pay it in two parts, for example half before the school year opens and the other half by 24 December, as long as the full amount is paid by the deadline.

DOLE also asks employers to report their 13th month pay compliance online by 15 January of the following year, through the DOLE Establishment Report System.

Resigned or separated employees

An employee who resigned, was dismissed or otherwise left before the payment date still gets 13th month pay, pro-rated: the basic salary earned from January to the last day of work, divided by 12. It is due when employment ends, usually with the final pay. For example, an employee who left on 31 March at a monthly basic salary of ₱18,000 earned ₱54,000, so the 13th month pay is ₱4,500.

Is 13th month pay taxable?

Not up to ₱90,000. Under the TRAIN law (RA 10963), the 13th month pay and other benefits (such as a Christmas bonus, productivity incentives and gifts) are excluded from the employee's taxable income up to ₱90,000 in total for the year. Only the part above ₱90,000 is taxed. This is general information: your payroll applies the BIR's withholding rules.

What to do if your employer doesn't pay

Raise it with your employer or HR first. If it stays unpaid, you can file a free Request for Assistance under DOLE's Single Entry Approach (SEnA) at the nearest DOLE office. SEnA is a conciliation process of up to 30 days that aims to settle the claim without a case. For questions, call the DOLE Hotline 1349.

Paano kinukuwenta ang 13th month pay

Pagsamahin ang lahat ng basic salary na kinita ng empleyado mula Enero hanggang Disyembre (o hanggang sa huling araw niya sa trabaho), at hatiin ito sa 12. Kasama ang mga leave na may bayad. Ibinabawas naman ang mga absent na walang bayad.

Hindi kasama ang overtime, night differential, holiday pay at premium pay, mga allowance at COLA (maliban kung bahagi na ito ng basic salary), profit sharing, at ang cash conversion ng hindi nagamit na leave.

Halimbawa: kung ₱18,000 ang buwanang basic salary at buong taon nagtrabaho, ₱216,000 ÷ 12 = ₱18,000. Kung nagsimula noong Hulyo 1, ₱108,000 ÷ 12 = ₱9,000.

May karapatan dito ang lahat ng rank-and-file na empleyado na nakapagtrabaho nang hindi bababa sa isang buwan sa loob ng taon, anuman ang paraan ng pagbabayad sa kanila. Dapat itong maibigay nang hindi lalampas sa Disyembre 24.

FAQ

13th month pay questions

Short answers, from PD 851 and DOLE's guidelines.

How do I compute 13th month pay?

Add up the basic salary the employee actually earned from 1 January to 31 December (or to their last day), then divide by 12. For a monthly basic salary of ₱18,000 for the whole year: ₱216,000 ÷ 12 = ₱18,000. Leave out overtime, night differential, holiday and premium pay, allowances and COLA (unless integrated), profit sharing and cash conversion of unused leave.

Who is entitled to 13th month pay?

All rank-and-file employees in the private sector who worked at least one month in the calendar year, whatever their status or how they are paid: monthly, daily, piece-rate, or a fixed wage plus commission. Managerial employees are not covered by the law, though many employers give it anyway. Household workers (kasambahay) are covered under the Batas Kasambahay (RA 10361).

When must 13th month pay be paid?

On or before 24 December every year: for 2026, by 24 December 2026. An employer may pay it in two parts, for example half before the school year opens and the rest by 24 December, as long as the full amount is paid by then.

Is 13th month pay taxable?

Not up to ₱90,000. Under the TRAIN law (RA 10963), the 13th month pay and other benefits, such as a Christmas bonus, are excluded from taxable income up to ₱90,000 in total for the year. Only the part above ₱90,000 is taxed.

Do resigned or separated employees get 13th month pay?

Yes. An employee who resigned or was separated before the payment date is entitled to a pro-rated 13th month pay: the basic salary earned from January to their last day, divided by 12. It is due when employment ends, usually with the final pay.

How much do I pay an employee hired in the middle of the year?

Only what they earned while employed, divided by 12. Someone hired on 1 July at a monthly basic salary of ₱18,000 earns ₱108,000 by 31 December, so their 13th month pay is ₱9,000. Under one month of service, there is no entitlement.

Are overtime, allowances and holiday pay included?

No. 13th month pay is based on basic salary only. Overtime, premium, night-differential and holiday pay, allowances and COLA, profit sharing and the cash value of unused leave are left out, unless your company's agreement or practice treats them as basic salary. Paid leave counts; unpaid absences reduce the basic salary earned.

What can I do if my employer doesn't pay my 13th month pay?

Raise it with your employer or HR first. If it stays unpaid, you can file a free Request for Assistance under DOLE's Single Entry Approach (SEnA) at the nearest DOLE office, a conciliation process of up to 30 days. For questions, call the DOLE Hotline 1349.

Sources

  1. Presidential Decree No. 851 (13th Month Pay Law), Official Gazette
  2. DOLE Handbook on Workers' Statutory Monetary Benefits (2023 edition), chapter on 13th month paySets out the Revised Guidelines on the Implementation of the 13th Month Pay Law (1987), with a worked example.
  3. DOLE Bureau of Working Conditions: labor advisories on 13th month payLabor Advisory No. 16, Series of 2025, on the payment of 13th month pay.
  4. Republic Act No. 10361 (Batas Kasambahay), Official Gazette
  5. BIR Revenue Regulations No. 11-2018 (TRAIN law, RA 10963): the tax-exempt ceiling
  6. DOLE Single Entry Approach (SEnA)

Checked against these sources on 31 October 2026.

This page and calculator are general information, not legal or tax advice. For a specific case, ask DOLE or a lawyer.