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Free tool · updated 3 Nov 2026

13th month pay, worked out.

One twelfth of the basic salary you earned in the year. Pick how you pay, type the numbers, see the amount.

The rule in four lines

  • Every rank-and-file employee who worked at least one month in the calendar year gets one: the law is Presidential Decree 851.
  • The amount is one twelfth of the basic salary actually earned in the year. Overtime, holiday and night pay, and allowances that are not part of the basic are not counted.
  • It is paid on or before 24 December. Someone who leaves earlier gets their share in the final pay.
  • The 13th month, together with other benefits, is tax-free up to ₱90,000. Only the part above that is taxed.
Done for you. ClockIN works the 13th month out for every person from the pay runs, so it is ready before December, with the final pay for anyone who leaves. See the plans.

Questions

Do I count overtime?

No. The 13th month is one twelfth of the basic salary earned. Overtime, holiday pay, night differential and most allowances are left out.

What about someone who started in the middle of the year?

They get one twelfth of the basic salary they earned from their first day. Use the months they worked, or the total they earned.

What about a person paid by the day?

Count the days that were paid. Pick a daily rate above and type the number of days paid in the year.

Do it for every person, every pay day

ClockIN works these out from the clock-ins and prints the payslips. Free through your first full pay period, no card.

Made by ClockIN, by Strong Media Corp, Metro Manila. These tools are a guide, not legal or tax advice. Rates and rules change, so confirm against the agency’s current circular or with your accountant before you pay or file.