1. What is 13th Month Pay?

13th Month Pay is a mandatory benefit in the Philippines where employees receive an additional month's salary equivalent to one-twelfth of their total basic salary earned during the calendar year. It is typically given before Christmas.

2. How Does the Calculator Work?

The calculator uses the standard formula:

Where:

• Total Basic Salary — The sum of basic salary earned during the calendar year

Explanation: The calculation is straightforward - simply divide the total annual basic salary by 12 to get the 13th month pay amount.

3. Importance of 13th Month Pay Calculation

Details: Accurate calculation of 13th month pay is crucial for employers to comply with Philippine labor laws and for employees to understand their rightful benefits. It provides financial support during the holiday season.

4. Using the Calculator

Tips: Enter the total basic salary earned during the calendar year in dollars. The value must be greater than zero. The calculator will automatically compute the 13th month pay amount.

5. Frequently Asked Questions (FAQ)

Q1: Who is entitled to 13th month pay in the Philippines?
A: All rank-and-file employees who have worked for at least one month during the calendar year are entitled to 13th month pay, regardless of their employment status.

Q2: When should 13th month pay be given?
A: Employers are required to pay the 13th month pay on or before December 24 of every year.

Q3: Are bonuses and allowances included in the calculation?
A: No, only basic salary is included. Overtime pay, allowances, and other bonuses are excluded from the calculation.

Q4: What if an employee worked for less than a full year?
A: The 13th month pay is computed proportionally based on the number of months worked during the calendar year.

Q5: Is 13th month pay taxable?
A: 13th month pay and other benefits amounting to PHP 90,000 or less are tax-exempt under Philippine law.