How much 13th month pay do Filipinos actually get?
For a full-year employee, 13th month pay equals one month of basic salary — and it's tax-free up to ₱90,000 under the TRAIN law. So only salaries above about ₱100,000/month have any taxable 13th-month, and even then, only the amount above ₱90,000 is taxed. Here's the full breakdown, salary by salary — just in time for release, due by December 24.
13th-month = one month of basic pay for a full-year employee (pro-rated otherwise); tax-free portion per the ₱90,000 TRAIN-law cap. Assumes 13th-month only — other bonuses share the same cap.
The 13th-month line tracks one month of basic pay. Where it rises above the ₱90,000 ceiling (higher salaries), the shaded slice is added to taxable income. Full figures below.
| Monthly salary | 13th month pay | Tax-free | Taxable |
|---|---|---|---|
| ₱15,000 | ₱15,000 | ₱15,000 | ₱0 |
| ₱18,000 | ₱18,000 | ₱18,000 | ₱0 |
| ₱20,000 | ₱20,000 | ₱20,000 | ₱0 |
| ₱25,000 | ₱25,000 | ₱25,000 | ₱0 |
| ₱30,000 | ₱30,000 | ₱30,000 | ₱0 |
| ₱35,000 | ₱35,000 | ₱35,000 | ₱0 |
| ₱40,000 | ₱40,000 | ₱40,000 | ₱0 |
| ₱45,000 | ₱45,000 | ₱45,000 | ₱0 |
| ₱50,000 | ₱50,000 | ₱50,000 | ₱0 |
| ₱60,000 | ₱60,000 | ₱60,000 | ₱0 |
| ₱70,000 | ₱70,000 | ₱70,000 | ₱0 |
| ₱80,000 | ₱80,000 | ₱80,000 | ₱0 |
| ₱90,000 | ₱90,000 | ₱90,000 | ₱0 |
| ₱100,000 | ₱100,000 | ₱90,000 | ₱10,000 |
| ₱120,000 | ₱120,000 | ₱90,000 | ₱30,000 |
| ₱150,000 | ₱150,000 | ₱90,000 | ₱60,000 |
What the numbers reveal
First, most Filipinos' 13th month pay is entirely tax-free. Since it equals one month of basic salary, only earners above about ₱100,000/month cross the ₱90,000ceiling — and even they keep the first ₱90,000 tax-free, with only the excess taxed at their marginal rate.
Second, the ₱90,000 cap is shared. It covers your 13th month PLUS any Christmas bonus, productivity incentives, and other benefits combined. A generous Christmas bonus can therefore push part of an otherwise tax-free 13th month into the taxable slice — worth planning for.
Third, it's a plan, not a treat. Because it arrives once a year in a lump, the 13th month is the single best chance to reset your money: kill high-interest utang first, top up your emergency fund, then grow the rest.
Methodology
13th month pay is computed as total basic salary earned in the year ÷ 12; for a full-year employee that is one month of basic pay, which this report uses. Overtime, allowances, and cash conversions of unused leave are generally excluded from the basic-salary base. The tax-free portion applies the ₱90,000 TRAIN-law ceiling (shared with other bonuses); the taxable portion is the excess above it. For the step-by-step formula and pro-ration, see how to compute your 13th month pay.
Frequently asked questions
How much 13th month pay will I get?
For a full-year employee it equals one month of your basic salary — so a ₱30,000 monthly earner gets about ₱30,000. If you worked only part of the year, it is pro-rated: total basic salary earned that year ÷ 12. Overtime, allowances, and cash equivalents of unused leave are generally excluded from the basic-salary base.
Is my whole 13th month pay tax-free?
Your 13th month pay plus other benefits are tax-free up to ₱90,000 combined per year under the TRAIN law. Because 13th-month equals one month's basic, only salaries above about ₱90,000/month have any taxable 13th-month — and only the amount ABOVE ₱90,000 is added to taxable income and taxed at your marginal rate. A ₱150,000 earner, for example, has ₱90,000 tax-free and ₱60,000 taxable.
When should 13th month pay be released?
By law (Presidential Decree 851), it must be paid on or before December 24 each year. Some employers split it — half mid-year and half in December — but the full amount is due by the 24th.
Is 13th month pay the same as a Christmas bonus?
No. 13th month pay is mandatory for rank-and-file employees under PD 851. A Christmas bonus is discretionary — the employer chooses whether to give one. Both count toward the same ₱90,000 tax-free ceiling, so a large Christmas bonus can push part of your 13th month into the taxable portion.
Plan your bonus & related guides
- How to compute 13th month pay — the formula, pro-ration, and who's covered.
- Money Game Plans — split your bonus: utang, emergency fund, and growth.
- The cost of credit-card debt — why clearing utang with your bonus wins.
- Take-home pay by salary — your net for every monthly salary.
- High-yield savings — where to grow the part you keep.
Educational data only — not tax or payroll advice. 13th month pay rules follow PD 851 and the TRAIN-law ₱90,000tax-free cap; figures assume a full-year employee and 13th-month only (other bonuses share the cap). Your actual amount depends on your basic-salary base, months worked, and total benefits — confirm with your payroll/HR and the BIR.
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