One month's basic pay, on average
The 13th month pay is a mandatory benefit equal to 1/12 of your basic salary earned in the year. Work the full year and it's roughly a full month's pay; work part of the year and it's prorated. Allowances, overtime and bonuses generally aren't part of the basic-pay computation.
It's tax-free up to ₱90,000 when combined with other benefits — only the excess is taxed.
Common questions
It equals one-twelfth of the total basic salary you earned during the calendar year. If you worked fewer than 12 months, it is prorated.
The 13th month pay and other benefits are tax-free up to ₱90,000 combined. Only the amount above ₱90,000 is taxed.
By law it must be paid on or before 24 December. Some employers split it into two releases during the year.