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🎁 Presidential Decree No. 851 Mandate

13th Month Pay Calculator Philippines

Estimate your mandatory 13th month pay, pro-rated employment earnings, and tax-exempt bonus threshold according to the Department of Labor and Employment (DOLE) guidelines.

DOLE Statutory Rule: Under Presidential Decree No. 851, all rank-and-file employees who have worked for at least one (1) month during the calendar year are entitled to a 13th month pay received on or before December 24.

Enter Annual Employment Details

Excludes allowances and overtime pay.

1 to 12 months in current calendar year.

Salary deductions for leaves without pay.

Official DOLE 13th Month Pay Formula

Under DOLE Labor Guidelines and Presidential Decree No. 851, the 13th month pay is computed as follows:

$$ ext{13th Month Pay} = rac{ ext{Total Basic Salary Earned within the Calendar Year}}{12}$$

The ₱90,000 Tax-Exempt Bonus Ceiling

Under Section 32(B)(7)(e) of the National Internal Revenue Code (as amended by Republic Act No. 10963), total 13th month pay and other benefits up to ₱90,000 are exempt from withholding income tax. Any amount in excess of ₱90,000 is added to taxable income.