AppDeep Payroll Free tool · PD 851 rules

How much 13th month pay is actually due?

Basic salary earned in the year divided by 12, with the hire date, separation date, unpaid absences, a mid-year raise, and the ₱90,000 tax ceiling all applied. The same rule AppDeep Payroll runs inside every cutoff.

Employee details

Estimate
Unpaid absences

Deducted at the daily rate: monthly salary × 12 ÷ working days per year. Paid leave is basic salary and stays in.

Mid-year salary change
Tax ceiling

13th month plus other benefits are tax-exempt up to ₱90,000 a year. De minimis benefits have their own limits and are not counted here.

13th month pay
₱0.00
for 12 months · basic earned ₱0.00 ÷ 12
Tax-exempt Taxable excess over ₱90,000
ComputationAmount
Basic salary for months covered
Less: leave without pay
Total basic salary earned
13th month pay earned ÷ 12
Tax treatment
Other benefits already counted
Exempt room remaining under ₱90,000
Tax-exempt portion of 13th month
Taxable excess none

MonthMonthly rateCoverageBasic earned
Less: leave without pay
Total basic salary earned

Partial months are pro-rated by calendar days covered. Your payroll may pro-rate by actual days worked or paid instead; the difference is usually small.

The rules behind the numbers

Under PD 851, 13th month pay is total basic salary earned in the calendar year ÷ 12, due on or before December 24, for all rank-and-file employees who worked at least one month. Allowances, overtime, premiums, and unused leave conversion are excluded. Separated employees receive it pro-rated with their final pay. It is tax-exempt together with other benefits up to ₱90,000; only the excess is taxable.

See the rules in full, with four worked examples.

Your numbers, not sample numbers.

AppDeep Payroll computes 13th month inside every cutoff, from the basic salary actually paid. Before you switch, we run one full month (two cutoffs) of your real payroll side by side with your current system and show finance the match, to the peso.