Salary2 min read · Updated October 21, 2026

Is 13th month pay taxed? The ₱90,000 limit

Repo-linked (EBLR): your rate rises by the same 0.25% at the next reset date, unless your lender holds back some of it. Resets happen at least once every three months, so expect the change within about three months of 7 October.
MCLR-linked: your lender's own cost of funds drives the rate and it resets on its own date, often every six or twelve months. The effect arrives later and may be smaller. Our guide to [[blog:eblr-vs-mclr-home-loan|EBLR and MCLR]] explains the difference.
Fixed rate: nothing changes until the fixed period ends.

Your 13th month pay and other benefits are tax-free up to ₱90,000 a year. Here is what happens above it.

The rule

Add your 13th month pay to other bonuses and benefits. The first ₱90,000 is tax-free. Anything above it is added to your taxable income for the year.

₱25,000 a month	No tax on the 13th month pay
₱150,000 a month	₱60,000 over the limit, about ₱15,000 tax

Is 13th month pay taxable?

Only the part of 13th month pay and other benefits above ₱90,000 a year.

Published October 21, 2026. Estimates, not tax or mortgage advice.