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Christmas Bonus
How much of your Christmas bonus will you actually keep? We add your 13th-month and any other bonuses against the ₱90,000 tax-free ceiling, then withhold on the excess at your bracket.
Performance, productivity, etc. — exclude your 13th-month (we compute it).
All taxable bonuses combined are tax-free up to ₱90,000 per year (TRAIN law). The excess is taxed at your bracket. We approximate your bracket using gross monthly basic × 12.
Net Christmas bonus
₱30,000
You'll receive ₱30,000. Of your Christmas bonus, ₱30,000 is tax-free and ₱0 will be withheld.
| 13th-month pay (computed) | ₱30,000 |
| Bonuses before Christmas (13th + other) | ₱30,000 |
| Tax-free ceiling (per year) | ₱90,000 |
| Tax-free portion of Christmas bonus | ₱30,000 |
| Taxable portion of Christmas bonus | ₱0 |
| Withholding tax | ₱0 |
| Effective tax rate on Christmas bonus | 0% |
As of 2026-05-22
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How it works
Step 1 — compute the 13th-month: monthly basic salary × months worked ÷ 12.
Step 2 — apply the ₱90,000 ceiling: the 13th-month and any other taxable bonuses received earlier in the year consume the ceiling first. Whatever is left of the ₱90,000 cap can absorb your Christmas bonus tax-free.
Step 3 — tax the excess: the taxable portion of the Christmas bonus is added to your annual taxable income and taxed at your bracket rate (BIR graduated schedule under the TRAIN Law). We compute the differential — how much tax the bonus adds — rather than your full annual tax bill.
Need precise contributions? See the Net Pay calculator for SSS, PhilHealth, and Pag-IBIG. For your 13th-month rights, final pay, or separation pay, use the 13th Month / Final Pay calculator.
§ 03
Frequently asked questions
Is my Christmas bonus taxable?
Only the portion above the ₱90,000 combined ceiling. Under the TRAIN Law, your 13th-month plus all other taxable bonuses (Christmas, performance, productivity, etc.) received in the same calendar year are added together. The first ₱90,000 of that combined total is tax-free. Anything beyond is added to your taxable income for the year and taxed at your bracket rate.
Worked example — ₱30K monthly basic, ₱30K Christmas bonus, no other bonuses
Your computed 13th-month is ₱30,000 (₱30K × 12 ÷ 12). Combined with the ₱30K Christmas bonus, your total taxable bonuses are ₱60,000 — well below the ₱90,000 ceiling. The entire Christmas bonus is tax-free. You receive ₱30,000.
Worked example — ₱60K monthly basic, ₱60K Christmas bonus, no other bonuses
13th-month = ₱60,000. Combined with the ₱60K Christmas bonus, total bonuses are ₱120,000. The first ₱90,000 is tax-free (₱60K for 13th-month + ₱30K of the Christmas bonus). The remaining ₱30,000 of the Christmas bonus is taxable. At a ₱720K annual taxable salary (the 20% bracket), withholding on the ₱30K excess is roughly ₱6,000. Net Christmas bonus: ~₱24,000.
Why is this different from the 13th-month calculator?
The 13th-month calculator answers a legal-rights question: how much 13th-month am I owed by law? This calculator answers a take-home question: how much of my Christmas bonus will I keep after tax? Both use the same ₱90,000 ceiling and BIR brackets, but the inputs and outputs are tuned for different decisions.
What counts toward the ₱90,000 ceiling?
13th-month pay, 14th-month pay, Christmas bonus, productivity incentive, performance bonus, profit-sharing, loyalty cash awards, and similar benefits granted by the employer. De minimis benefits (rice subsidy up to ₱2K/month, medical cash allowance ₱3K/year, uniform allowance ₱6K/year, etc.) are separately exempt and don't consume the ₱90K.
Is the Christmas bonus mandatory by law?
No. Only the 13th-month is mandatory (PD 851). The Christmas bonus is a voluntary benefit. Many PH employers grant one, but it's not legally required — and the amount is at the employer's discretion. Once granted, however, the tax rules above apply.
How accurate is the withholding estimate?
We approximate your annual taxable income as gross monthly basic × 12. This excludes the mandatory contributions (SSS, PhilHealth, Pag-IBIG) that the Net Pay calculator handles precisely. The bracket lookup is correct, but at a bracket boundary the actual withholding may differ by a few hundred pesos. Use the Net Pay calculator for a tighter estimate of your annual taxable income.
Does this save or transmit my data?
No. Everything runs in your browser. We don't collect, store, or transmit any of your inputs.
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Sources & references
From official issuer, regulator, and data-provider sites. Verify any figure against the primary source before acting on it.