1. What is 13th Month Salary?

The 13th month pay is a mandatory benefit in the Philippines equivalent to one-twelfth (1/12) of an employee's total basic salary earned within a calendar year. It is typically given to employees by December 24 of each year.

2. How Does the Calculator Work?

The calculator uses the standard formula:

Where:

• Total Basic Salary — Sum of monthly basic salary for months worked
• 12 — Represents the number of months in a year

Explanation: The calculation is based on the employee's basic salary and does not include allowances, overtime pay, or other bonuses.

3. Legal Basis in the Philippines

Details: The 13th month pay is mandated by Presidential Decree No. 851, which requires all employers to pay their rank-and-file employees a 13th month pay regardless of the nature of their employment.

4. Using the Calculator

Tips: Enter your monthly basic salary in PHP and the number of months you've worked during the year. The calculator will compute your 13th month pay entitlement.

5. Frequently Asked Questions (FAQ)

Q1: Who is entitled to 13th month pay?
A: All rank-and-file employees who have worked for at least one month during the calendar year are entitled to 13th month pay.

Q2: Is 13th month pay taxable?
A: The 13th month pay and other benefits amounting to PHP 90,000 or less are tax-exempt according to Philippine tax laws.

Q3: What if I didn't work the full year?
A: The 13th month pay is computed proportionally based on the number of months you've worked during the year.

Q4: When should 13th month pay be given?
A: Employers are required to pay the 13th month pay on or before December 24 of each year.

Q5: What is included in basic salary for computation?
A: Basic salary includes all remunerations earned but does not include allowances, overtime pay, premiums, and other bonuses.