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13th Month Pay Calculator

Calculate the 13th month pay you have actually earned once unpaid days are deducted from your basic salary.

How it is calculated

The tool takes basic monthly salary only (no overtime or allowances). The daily rate is salary ÷ working days per month. The deduction for unpaid absence is daily rate × unpaid days. Basic salary earned is salary × months worked − deduction, never below zero, and the 13th month pay is basic earned ÷ 12. The result is then split at the exemption cap you enter: the taxable part is the pay above the cap and the exempt part is the rest. Months worked must be between 0 and 12. The cap is an input because it differs by country and year; the tool does not know which one applies to you, and it does not calculate the tax itself. Whether a 13th month is mandatory at all depends on the country.

Worked example

Monthly salary is 30000, worked 12 months, with 4 unpaid days and 22 working days per month. Daily rate = 30000 ÷ 22 = $1,363.64. Deduction = 4 × 1363.64 = $5,454.55. Basic earned = 30000 × 12 − 5454.55 = $354,545.45. The 13th month pay is 354545.45 ÷ 12 = $29,545.45. With an exemption cap of 90000, the pay is below the cap, so the whole $29,545.45 is exempt and the taxable part is $0.00. Without the absences it would have been exactly 30000, one full month's salary.

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Common mistakes

  • Entering total pay including overtime and allowances as the monthly salary: the calculation is meant for basic salary only, so the result will be too high.
  • Leaving out the working days per month: it is required, and a wrong value (30 calendar days instead of 22 working days) shrinks the daily rate and the deduction.
  • Entering unpaid days for the whole year but a monthly-based number of workdays, or the reverse; the tool divides the monthly salary by the workdays, so days must be counted the same way.
  • Entering more unpaid days than there are working days in the period: the engine just clamps the pay to $0.00 without warning.
  • Assuming a fixed exemption cap: it is whatever you type, so an old or wrong number gives a wrong exempt/taxable split.

Sources

About this calculator

13th month pay is a mandatory year-end bonus in countries like the Philippines, calculated as: total basic salary earned during the calendar year divided by 12. Basic salary excludes overtime, allowances and most other premiums, and unpaid absences or leave without pay reduce the basic salary earned for the year, which lowers the resulting 13th month figure proportionally — it isn’t simply one extra month of a fixed salary.

Under Philippine labor law (Presidential Decree No. 851), the first 90,000 pesos of 13th month pay (combined with certain other benefits, depending on current thresholds) is tax-exempt, with any amount above that threshold taxed as ordinary income; the payment must be given to rank-and-file employees on or before December 24 each year. Payroll teams need to split the total into its exempt and taxable portions correctly, since getting that split wrong misstates an employee’s tax withholding for the year.

This calculator takes your monthly basic salary, months worked, unpaid absence days, working days per month and the tax-exempt limit, and computes your pro-rated 13th month pay, split into the tax-exempt and taxable amounts. You type the exempt limit yourself, so enter the current figure that applies to you.

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