How is 13th month pay computed?

The 13th month pay computation follows one formula from the Department of Labor and Employment (DOLE) handbook on workers’ statutory monetary benefits:

13th month pay = Total basic salary earned in the calendar year ÷ 12

Always divide by 12, never by the number of months actually worked — this is the most common mistake in the computation of 13th month pay. For illustration only, ₱180,000 in basic salary for the year gives you ₱15,000 (₱180,000 ÷ 12).

Use the calculator above to compute 13th month pay with your own numbers, or see our Salmon blog article to know more.