13th Month Pay Proration Calculator

What is 13th Month Pay?

13th Month Pay is a mandatory benefit in the Philippines required by Presidential Decree No. 851. It's equivalent to one-twelfth (1/12) of an employee's total basic salary earned within a calendar year, and must be paid by employers on or before December 24 of every year.

Who is Eligible?

According to the Department of Labor and Employment (DOLE), all rank-and-file employees who have worked for at least one month during the calendar year are entitled to receive 13th Month Pay, regardless of their employment status (regular, probationary, project-based, seasonal, or part-time).

Special Cases: Resignation & New Hires

If you resigned or were newly hired within the year, your 13th Month Pay should be prorated based on the number of months you actually worked:

• For resignees: Your 13th Month Pay should be computed from January 1 up to your last day of work, and must be paid within 30 days after your separation from the company.
• For new hires: Your 13th Month Pay will be computed from your start date until December 31 of the current year.
• For those with multiple employers: If you worked for more than one employer within the year, each employer must compute your 13th Month Pay separately based on the time you worked for them.

Common Questions

Q: What if my employer refuses to pay 13th Month Pay?
A: You can file a complaint with the DOLE Regional Office having jurisdiction over your workplace. Employers who fail to pay 13th Month Pay may be subject to penalties.

Q: Is 13th Month Pay taxable?
A: According to the Bureau of Internal Revenue (BIR), 13th Month Pay and other benefits totaling up to ₱90,000 are tax-exempt. Amounts exceeding this threshold are subject to withholding tax.

Q: When exactly should it be paid?
A: By law, 13th Month Pay must be paid on or before December 24. For resigning employees, it should be paid within 30 days from your last day of work or by December 24, whichever comes earlier.