The Official DOLE PD 851 Formula
$$\text{13th Month Pay} = \frac{\text{Total Basic Salary Actually Earned in Calendar Year}}{12}$$
What is Excluded from Total Basic Salary?
The basic salary for 13th month pay computation includes regular basic earnings but excludes unpaid absences, tardiness deductions, overtime pay, night shift differential, holiday pay, and discretionary allowances.
Tax Exemption Threshold
Under Republic Act No. 10963 (TRAIN Law), 13th month pay and other benefits up to ₱90,000.00 are completely exempt from income tax and withholding tax.
Calculate your pro-rated bonus with our 13th Month Pay Calculator.