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| The 13th month pay is a mandatory benefit given to employees. You can use our calculator to determine the amount of annual employment benefits you will receive. |
As a hardworking employee in the Philippines, you deserve to be rewarded for your contributions to the economy and your employer. The government does this in part by enacting the 13th-Month Pay Law, which was introduced in 1975 as part of Presidential Decree No. 851, to ensure that employers pay their employees.
The 13th month pay is a benefit given to employees to help them have extra money during the holiday season. This benefit is calculated based on the employee's annual salary and is equal to one-twelfth of their basic salary.
It is typically paid in December so that employees have additional funds to celebrate the holidays with their loved ones.
To make it easier to calculate the 13th month pay, we have developed a calculator tool that allows you to quickly and easily determine how much you are entitled to receive. Simply input your total annual salary and our calculator will do the rest. If you don't know your annual salary, you can use our annual salary calculator to determine it:
13th Month Pay Calculator
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What is 13th Month Pay?
The 13th month pay as a government-mandated benefit given to eligible employees in many countries, including the Philippines. This benefit is intended to provide additional income to employees during the holiday season, and employers are required by law to provide it on or before the 24th of December each year.
The 13th month pay is typically calculated as one-twelfth of an employee's basic salary, and is paid in addition to their regular monthly wages. This benefit is intended to help employees cover the additional expenses that often come with the holiday season, such as gifts and travel.
In some countries, the calculation of the 13th month pay may vary depending on the specific laws and regulations in place. For example, in the Philippines, the 13th month pay is calculated based on the employee's basic salary and does not include allowances and other monetary benefits (this can include items such as the cash equivalent of unused vacation and sick leave credits, overtime pay, premium pay for working certain shifts, night differential pay for working overnight, and holiday pay).
The 13th month pay is an important benefit for employees and is intended to provide additional income during the holiday season. Employers are required by law to provide this benefit to eligible employees, and failure to do so can result in penalties and fines.
How to compute 13th Month Pay?
It is calculated as 1/12 of the employee's total basic salary for the year, or the employee's basic monthly salary multiplied by 12 months and divided by 12. This means that if an employee has a basic monthly salary of PHP 15,250, their 13th month pay would be PHP 15,250 x 12 months / 12 = PHP 15,250.
The basic salary earned in a full calendar year should be totaled and then divided by twelve.
Is 13th Month Pay same as Christmas Bonus?
No, 13th Month Pay is a mandatory benefit given to employees in the Philippines by their employer.
Christmas Bonus, on the other hand, is an additional payment that employers may choose to give their employees as a bonus or gift, typically during the Christmas season. It is not required by law, but may be given as a way for employers to show appreciation for their employees' work throughout the year.
Who are eligible to receive 13th Month Pay?
All rank-and-file employees, regardless of the nature of their employment and the method by which they are paid, are entitled to receive a 13th month pay as long as they have worked for at least one month during the calendar year.
The following categories of employees are eligible for 13th month pay:
- Employees paid by results or on a piece work basis
- Employees who are paid a fixed or guaranteed wage plus commission
- Government employees working part time in private enterprises, including private educational institutions
- Employees working in two or more private firms, full or part time
- Private school teachers, including faculty members of universities and colleges
- Resigned or separated employees with at least one month of service within a year
Are employees on probation eligible for this benefit?
Probationary employees who have been with the company for at least one month are eligible to receive this benefit. During this probationary period, employees must demonstrate their abilities and commitment to the company in order to be considered for permanent employment and continue to be eligible for this benefit.
I have already resigned from my job. Am I still eligible for this benefit?
If you have already resigned from your job, you are still entitled to receive your 13th month pay as long as you meet the eligibility requirements for the benefit. The amount of the 13th month pay that you are entitled to receive may be pro-rated depending on the amount of time you spent working for the company during the year.
Is it okay for employers to postpone its release?
It is not okay for employers to delay the release of the 13th month pay. The 13th month pay is a mandated benefit in the Philippines, and under the law, it must be paid to employees on or before December 24th of each year.
Delaying the payment of the 13th month pay beyond this date is a violation of the law and can be reported to the Department of Labor and Employment (DOLE) through their hotline at 7349.
It is important for employees to be aware of their rights and to report any violations to the appropriate authorities.
Is the 13th Month Pay subject to tax?
Under the Tax Reform for Acceleration and Inclusion (TRAIN) law, the 13th month pay and other benefits received by an employee are taxable if the total amount exceeds the threshold of P90,000 per year.
This means that if an employee receives a 13th month pay of less than P90,000, it is not subject to income tax. However, if the total amount of the 13th month pay and other benefits exceeds P90,000, the amount in excess of the threshold will be subject to income tax.