When December comes around, one of the most awaited questions among employees is: “How much is my 13th month pay?” It’s that extra financial boost that helps us prepare for holiday expenses, pay off bills, or simply reward ourselves after a year of hard work.
But do you know how to compute 13th month pay in the Philippines correctly? Many employees rely on HR or online tools to do the math, but understanding the computation helps you make sure you’re getting what you truly deserve — especially if you’ve had absences, just started your job, or resigned mid-year.
What Is 13th Month Pay and Who Is Entitled to It
In the Philippines, 13th month pay is a mandatory benefit given to all rank-and-file employees, as stated under Presidential Decree No. 851.
Employees are eligible for 13th month pay regardless of their job title or employment type, provided they have worked at least one month in a calendar year.
Who is entitled:
- Regular employees
- Probationary employees
- Part-time employees
- Contractual employees
- Resigned or separated employees (if they’ve worked for at least a month)
Who may not be entitled:
- Government employees
- Employees paid purely on commission or boundary system (e.g., drivers, agents, freelancers)
- Household helpers and workers are paid by results (unless their employer voluntarily gives it)
In short, if you’re receiving a monthly basic salary, then you are entitled to a 13th month pay in the Philippines.
Formula: How to Compute 13th Month Pay Yourself
Now let’s get into the math. Don’t worry — it’s very straightforward.
Here’s the official formula according to the Department of Labor and Employment (DOLE):
13th Month Pay = (Total Basic Salary Earned for the Year ÷ 12)
This means you add up all your monthly basic salaries for the entire year and divide the total by 12.
Example:
If your monthly basic salary is ₱20,000 and you’ve been working the entire year:
₱20,000 × 12 months = ₱240,000
₱240,000 ÷ 12 = ₱20,000 (your 13th month pay)
Simple. But what if you didn’t work the whole year, had absences, or joined mid-year? Let’s go through those scenarios next.
Common Computation Scenarios for 13th Month Pay
Not all employees have the same working conditions, so the computation can vary depending on your situation. Here’s how to compute 13th month pay in different cases.
| Scenario | Details | Computation Example |
| 1. Full-time employee (12 months) | Worked the entire year with full attendance | ₱20,000 × 12 months ÷ 12 = ₱20,000 |
| 2. Worked for 6 months only | Example: Hired in July | ₱20,000 × 6 months ÷ 12 = ₱10,000 |
| 3. Worked for 3 months only | Example: Joined in October | ₱20,000 × 3 months ÷ 12 = ₱5,000 |
| 4. With absences or unpaid leaves | Absent days or unpaid leaves reduce total basic salary | ₱110,000 (actual salary earned) ÷ 12 = ₱9,166.67 |
| 5. Resigned mid-year | Computed based on months worked before resignation | ₱90,000 ÷ 12 = ₱7,500 |
| 6. Prorated 13th month pay | Applies if you didn’t complete the year or started mid-year | (Total salary earned ÷ 12) = Prorated amount |
Note:
When calculating how to compute 13th month pay with absences, remember that only your basic salary is counted — allowances, overtime, holiday pay, and bonuses are excluded unless stated in your company policy.
So if you had unpaid absences, your total basic pay for the year will be less, resulting in a slightly lower 13th month pay.
Tools to Help You Calculate Easily
Not great with numbers? No problem. There are plenty of quick and reliable ways to compute your 13th month pay without using Excel.
1. Online Calculators
Search for “how to compute 13th month pay Philippines calculator” and you’ll find free tools that instantly show your pay once you enter your salary and months worked. Just make sure they follow DOLE’s formula and exclude allowances.
2. HR or Payroll Apps
Many companies now use platforms like Sprout Solutions, Salarium, or PayrollHero that automatically compute your 13th month pay based on attendance and total earnings.
3. Budgeting and Finance Apps
Apps like GCash or Money Manager can help you estimate and plan how to use your 13th month pay. While they’re not calculators, they’re great for tracking and budgeting your bonus.
Whichever tool you use, always double-check with the formula:
13th Month Pay = Total Basic Salary Earned ÷ 12
That’s it — fast, simple, and accurate.
Once you know your 13th month pay, you can also start thinking about next year’s opportunities. Use top job search sites in the Philippines to explore jobs with better pay and benefits.
Bonus: Find a Job That Rewards You Better
Now that you know how to compute your 13th month pay, think of it not just as an annual bonus but as a reminder of your growth and financial goals. Your 13th month pay can be a stepping stone toward better opportunities if you use it wisely.
Here are a few simple ways to make the most of it:
- Save or invest part of it. Keep some of your 13th month pay aside for unexpected expenses or small financial goals. Even a few thousand pesos can grow over time.
- Use it for skill improvement. Enroll in a short online course or workshop to make yourself more competitive in your field.
- Review your career path. Ask yourself if your current job gives you room to grow — not just in salary, but in experience and satisfaction.
- Plan your next move. If you’re ready for a change, research the most in-demand and high-paying careers in the country.
To get started, check out this guide on the Top 8 High-Paying Jobs in the Philippines (2025 Reference) — it’s a great reference to help you discover which industries and roles could bring you a more rewarding career and a bigger 13th month pay in the future.
FAQs About 13th Month Pay in the Philippines
Let’s answer some of the most common questions employees ask about their 13th month pay.
Is 13th month pay taxable?
Generally, 13th month pay is not taxable if it doesn’t exceed ₱90,000 (based on current BIR guidelines). If your total 13th month pay and other bonuses go beyond ₱90,000, the excess amount is subject to income tax.
Does 13th month pay include allowances or overtime?
No, it doesn’t. The computation is based only on your basic salary. That means your transportation allowance, meal allowance, incentives, or overtime pay are not included unless your company specifically includes them in the computation.
Do resigned employees get 13th month pay?
Yes, they do. As long as you have worked for at least one month during the year, you are entitled to a prorated 13th month pay. For example, if you resigned after working 6 months with a ₱25,000 monthly salary:
₱25,000 × 6 ÷ 12 = ₱12,500.
When should employers release the 13th month pay?
By law, employers must release the 13th month pay on or before December 24 every year. Some companies even release it in two parts — half in June and the remaining half in December — to help employees budget better.
Is 14th month pay required in the Philippines?
No, the 14th month pay is not mandatory. Some companies give it as an additional incentive or performance-based bonus, but only the 13th month pay is required by law.
Additional Tips When Checking Your 13th Month Pay
- Review your payslips – Always check if your total basic pay for each month is correctly reflected.
- Clarify deductions – Absences or unpaid leaves can reduce your 13th month pay, so confirm with HR how these are factored in.
- Understand prorated pay – If you’re new or resigned, your pay will be prorated based on actual months worked.
- Keep documentation – Retain your payslips or contract for transparency in case you need to verify your computation.
- Plan your finances – Use your 13th month pay wisely and consider saving part of it or using it for meaningful investments.
The Bottom Line
Your 13th month pay is not just a legal benefit — it’s a reflection of your year’s hard work. Knowing how to compute 13th month pay in the Philippines gives you the power to track your income accurately and ensure you’re getting what’s rightfully yours.
Whether you’ve worked the full year, only a few months, or had absences, the computation remains fair and transparent as long as it follows the DOLE formula.If you’re planning to switch jobs or level up your income this coming year, you can explore opportunities at Bossjob. This platform connects Filipino professionals with top employers in the country.
