How to Compute 13th Month Pay
If you want to know how to compute 13th month pay in the Philippines, you’re on the right page.
In this guide, I’ll show you the 13th month pay computation process in a simple and easy-to-understand way. Aside from that, you can also use our 13th month pay calculator below to quickly estimate your 13th month pay, whether you worked for 3 months, 6 months, or the full year.
13th Month Pay Calculator
Use this free calculator to estimate your 13th month pay based on your total basic salary earned during the calendar year.
This tool helps employees in the Philippines quickly estimate their 13th month pay. For a more accurate result, enter your actual basic salary earned per month, especially if you had absences, unpaid leave, maternity leave, salary changes, mid-year hiring, resignation, or separation from employment.
13th Month Pay Law
In the Philippines, 13th month pay is a mandatory benefit under Presidential Decree No. 851. In simple terms, employers covered by the rule must give qualified rank-and-file employees a 13th month pay.
Simple formula: add the basic salary you actually earned during the calendar year, then divide the total by 12. This is why the formula still works even if you worked for only 3 months, 6 months, or any partial period within the year.
What is included in basic salary?
For 13th month pay computation, basic salary generally means the pay you receive for services rendered. It usually does not include allowances, overtime pay, premium pay, night differential, holiday pay, unused leave conversion, and similar benefits unless your contract, company policy, CBA, or company practice treats them as part of your basic salary.
13th Month Computation Examples
If your basic salary is ₱20,000 per month and you worked the full 12 months: ₱20,000 × 12 = ₱240,000 ÷ 12 = ₱20,000.
If your basic salary is ₱20,000 per month and you worked for 6 months: ₱20,000 × 6 = ₱120,000 ÷ 12 = ₱10,000.
That is also the reason why searching for how to compute 13th month pay for 6 months usually leads to the same formula. You do not divide by the number of months worked. You still divide the total basic salary earned by 12.
For reference, you can read this detailed LaborLaw PH guide on 13th month pay. You can also check the official DOLE FAQ on 13th month pay and Presidential Decree No. 851.
Who is Eligible for 13th Month Pay
Rank-and-file employees who have worked for at least one month during the calendar year are generally entitled to 13th month pay. This applies regardless of employment status or the method by which wages are paid.
If you are a regular, probationary, casual, project-based, seasonal, or fixed-term employee, the more important question is usually this: are you a rank-and-file employee and did you work for at least one month during the calendar year?
Who are rank-and-file employees?
Rank-and-file employees are employees who are not considered managerial employees. Managerial employees are those who can lay down and execute management policies, hire, transfer, suspend, lay off, recall, discharge, assign, discipline employees, or effectively recommend those actions.
Are resigned or separated employees included?
Yes. If you resigned or were separated before the usual 13th month pay release, you may still be entitled to your proportionate 13th month pay based on the basic salary you earned during the year.
Important: Do not compute using your gross pay if your gross pay includes overtime, allowances, night differential, holiday pay, or other benefits. Use basic salary only, unless those items are treated as part of your basic salary by agreement, company policy, or practice.
13th Month Pay Guidelines for Government Employees
For government employees, the rule is different. The 13th month pay rule under PD 851 generally exempts the government and its political subdivisions, including government-owned and controlled corporations, except corporations operating essentially as private subsidiaries of the government.
In practical terms, many government workers do not use the private-sector 13th month pay computation. They usually receive a year-end bonus and cash gift under DBM rules and the applicable budget circulars.
| Employee Type | What to Check |
|---|---|
| Private-sector rank-and-file employee | Use the 13th month pay formula: total basic salary earned during the calendar year ÷ 12. |
| Government employee | Check DBM rules on year-end bonus and cash gift, plus your agency’s payroll guidelines. |
| GOCC employee | Confirm if your GOCC is covered by the government exemption or operates essentially as a private subsidiary. |
For the latest government-employee benefit schedule, check official DBM updates, such as this DBM release on year-end bonus and cash gift.
My honest advice: if you work in government, do not rely on a private-sector 13th month pay calculator alone. Check your agency HR or payroll office because the basis, timing, and eligibility rules may be different.
When is 13th Month Pay Given Philippines
In the Philippines, 13th month pay should be given not later than December 24 of every year. Some employers may also release it in two parts, such as one-half before the opening of the regular school year and the remaining half on or before December 24.
If you are still employed, ask HR about your company’s release schedule. If you resigned or were separated, your proportionate 13th month pay is usually computed based on the basic salary you earned up to your resignation or separation date.
13th Month Pay FAQ
How do you compute 13th month pay in the Philippines?
Add the total basic salary earned within the calendar year, then divide it by 12. Use basic salary only, meaning the regular pay you earned for work rendered. Do not include overtime, allowances, holiday pay, night differential, bonuses, and similar benefits unless your company treats them as part of basic salary. Example: if your total basic salary for the year is ₱240,000, your 13th month pay is ₱240,000 ÷ 12 = ₱20,000.
How to compute 13th month pay for 6 months?
Multiply your monthly basic salary by 6, then divide the total by 12. For example, ₱20,000 × 6 = ₱120,000. Then ₱120,000 ÷ 12 = ₱10,000.
Does overtime count in 13th month pay computation?
Usually, no. Overtime pay, holiday pay, night differential, allowances, and similar benefits are generally excluded unless they are treated as part of basic salary by agreement, company policy, or practice.