Salary2 min read · Updated October 21, 2026
How to compute your 13th month pay
The formula for 13th month pay, who gets it, the 24 December deadline, and worked examples for a full year and a part year.
The formula
Add up the basic salary you earned from 1 January to 31 December, then divide by 12. Basic salary does not include allowances, overtime, holiday pay or night shift pay.
Examples
| ₱25,000 a month, 12 months | ₱25,000 |
| ₱25,000 a month, 6 months | ₱12,500 |
| ₱150,000 a month, 12 months | ₱150,000 (₱60,000 over the tax-free limit) |
Who gets it
Rank-and-file employees in the private sector who worked at least one month in the year. Managerial staff and government workers are not covered by this rule.
When it is paid
By 24 December. Employers may split it into two payments if the full amount is paid by then.
Common questions
What is the formula for 13th month pay?
Total basic salary earned in the calendar year, divided by 12.
When must it be paid?
By 24 December.
Do allowances count?
No. Only basic salary counts.