13th Month Pay Guide 2026: Rules & Computation
The 13th-month pay is a mandatory statutory benefit in the Philippines protected by Presidential Decree No. 851. Unlike a discretionary "Christmas Bonus," the 13th-month pay is a legal right for all rank-and-file employees in the private sector.
How to Calculate Your 13th Month Pay
The standard formula is the total basic salary you earned during the calendar year divided by 12 months.
13th Month Pay = Total Basic Salary Earned within the Year / 12
What counts as "Basic Salary"?
To get an accurate result from our calculator, you should include:
I. Your monthly basic pay.
II. Paid leaves (Sick Leave, Vacation Leave, or Maternity Leave differential).
III. Any salary adjustments or increases received during the year.
What is excluded?
Under DOLE Labor Advisory No. 16 (Series of 2025), overtime pay, night differentials, holiday pay, and unused leave encashments are generally not included in the 13th-month computation unless they are part of your integrated basic salary by contract.
Source: PRESIDENTIAL DECREE No. 851
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