Partner offer
Digital bank
Park your take-home pay where it earns
Maya, GoTyme, CIMB, SeaBank — high-yield savings on your idle peso, no maintaining balance.
Compare digital banks →§ 10 · live tool
13th Month / Final Pay
Three calculators in one. Pro-rate your 13th month, total up your final pay, or compute separation pay based on the cause and your years of service.
Formula: total basic salary earned ÷ 12. Excludes OT, allowances, COLA. Tax-free up to ₱90,000 combined with other bonuses.
13th month pay
₱30,000.00
| Total basic earned | ₱360,000.00 |
| Tax-free portion | ₱30,000.00 |
| Taxable excess (above ₱90,000) | ₱0.00 |
Rules reviewed 2026-05-22
Where to next?
Partner offer
Card
Get a credit card matched to your salary
Cashback or miles — match a PH credit card to your take-home and spending habits.
Find a card →Partner offer
Insurance
Term life or health insurance
Protect your family with affordable coverage tuned for PH employed professionals.
Compare quotes →§ 02
How it works
13th month: total basic salary earned in the calendar year ÷ 12. We split out the tax-free portion against the ₱90,000 TRAIN-law ceiling. If you've already received other taxable bonuses this year, the remaining ceiling shrinks accordingly.
Final pay: we sum unpaid wages, leave-day conversion at your daily rate, your pro-rated 13th month portion, and any other earned amounts, then subtract authorized deductions. DOLE rules require release within 30 days of separation.
Separation pay: rate is 1 month per year (redundancy, labor-saving installation, closure not due to losses) or ½ month per year (retrenchment, closure due to losses, disease). Fraction of ≥ 6 months counts as a full year. Minimum: one month's pay.
Wondering how much of your Christmas bonus you'll actually keep? See the Christmas Bonus take-home calculator — same ₱90K ceiling, focused on the bonus take-home question.
§ 03
Frequently asked questions
When does the law require 13th month pay?
All rank-and-file private-sector employees who have worked at least one month within a calendar year are entitled to 13th month pay. It must be paid not later than December 24 of every year. Managerial employees are excluded by law, though many companies extend it as a benefit.
How exactly is 13th month pro-rated?
Formula: total basic salary actually earned within the calendar year ÷ 12. If you worked only 8 months at ₱30,000, you earned ₱240,000 in basic salary, so your 13th month is ₱20,000. Overtime, holiday premium, night-shift differential, allowances, COLA, and profit-sharing are not part of 'basic salary' and don't go into the formula.
Is the ₱90,000 ceiling annual or per-bonus?
Annual. Your 13th month plus all other taxable bonuses (Christmas bonus, performance bonus, productivity incentive, etc.) within one calendar year are added together. The first ₱90,000 of that combined total is tax-free. The excess is added to your taxable income for the year and taxed at your bracket rate.
What goes into final pay vs. separation pay?
Final pay (sometimes 'back pay' or 'last pay') is what's owed to you when you separate from any employer — unpaid wages, the pro-rated portion of your 13th month, cash conversion of unused convertible leave, and any other earned amounts, less authorized deductions. DOLE Labor Advisory No. 06-20 says it must be released within 30 days of separation. Separation pay is a separate amount, only owed when separation is due to an authorized cause (redundancy, retrenchment, closure, etc.) and not when you resign or are terminated for just cause.
When does separation pay apply?
Only for authorized causes under the Labor Code (Arts. 298–299). One month per year of service if separated due to redundancy, installation of labor-saving devices, or closure not due to serious losses. Half a month per year of service if separated due to retrenchment to prevent losses, closure due to serious losses, or disease. A fraction of at least 6 months counts as a full year. Minimum is one month's pay. Resignation and termination for just cause are not entitled.
Does this save or transmit my data?
No. Everything runs in your browser. We don't collect, store, or transmit any of your inputs.
§ refs
Sources & references
From official issuer, regulator, and data-provider sites. Verify any figure against the primary source before acting on it.