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13th month pay
in the Philippines.

SALARY PAYMENT IN Philippine Peso (₱)

CONTRACT LANGUAGES Tagalog / English

PAYROLL TAX 11.75% + Provident Fund

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours

Is there a 13th month pay in the Philippines?

Yes, there is 13th month pay in the Philippines.

Is the 13th month pay in the Philippines mandatory or standard?

13th month pay in the Philippines is a mandatory requirement of Philippines labor law. It is mandated by Presidential Decree No. 851.

How is the 13th month pay calculated in the Philippines?

13th month pay is 1/12th of the employee’s normal salary. 

When is the 13th month salary paid in the Philippines?

13th month salary is usually paid before the Christmas holiday (25 December). 

Does the 13th month salary amount to any extra payment by the employer?

Yes, 13th month pay is an extra payment by the employer in addition to the employee’s salary.

Is the 13th month salary taxable in the Philippines?

The 13th-month pay is exempt from income tax up to a certain threshold. The maximum amount of the 13th-month pay that is exempt from income tax is PHP 90,000. This means that if an employee’s 13th-month pay is equal to or less than PHP 90,000, the entire amount is not subject to income tax.

Hiring in the Philippines, Made Easy

Your business can easily hire employees in the Philippines without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

13th month pay in the Philippines is mandatory. 

It is not mandatory however, in addition to the 13th-month pay, some employers in the Philippines may also provide their employees with other types of bonuses and benefits. Other types of bonuses include things like Christmas bonuses and performance bonuses.

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