Compute your 13th-month pay (total basic salary earned ÷ 12) and find how much of your bonuses and de-minimis benefits is tax-exempt against the ₱90,000 combined cap under the TRAIN law — and what, if anything, is taxable.
Your 13th-month pay
Total basic salary earned ÷ 12 (Presidential Decree 851).
Your 13th-month pay and other benefits total ₱30,000.00 — within the ₱90,000 tax-exempt cap, so it is fully tax-exempt.
Under Presidential Decree 851, every rank-and-file employee is entitled to 13th-month pay equal to the total basic salary earned during the calendar year divided by 12. A full year of work gives you one month's basic salary; if you worked part of the year, it is pro-rated. Basic salary excludes allowances, overtime, and other benefits not integrated into the basic wage.
For tax, the TRAIN law (RA 10963) amended NIRC §32(B)(7)(e) so that your 13th-month pay plus other benefits — Christmas bonus, productivity incentives, loyalty awards — are tax-exempt up to a combined ₱90,000 per year. TRAIN raised this cap from the old ₱82,000. Only the amount over ₱90,000 is taxable and added to your taxable compensation income.
total basic salary earned ÷ 12.₱90,000 of 13th-month + other benefits combined.max(0, total benefits − ₱90,000).De-minimis benefits within their own per-benefit ceilings (rice subsidy, uniform/clothing allowance, monetised unused leave, and so on) are fully exempt and do not count toward the ₱90,000 — only the excess over a ceiling spills into the pool. The de-minimis ceilings were last updated by BIR RR 29-2025, effective 6 January 2026. Once you know your taxable excess, fold it into the income tax calculator to see how it stacks on your annual graduated tax.
Your 13th-month pay equals the total basic salary you actually earned during the calendar year divided by 12 (Presidential Decree 851). A full year of work gives you one month's basic salary; if you worked fewer months, it is pro-rated. Basic salary excludes allowances, overtime pay, and other monetary benefits not integrated into the basic wage.
Your 13th-month pay and other benefits are tax-exempt up to a combined ₱90,000 per year under NIRC §32(B)(7)(e), as amended by the TRAIN law (RA 10963). Only the amount over ₱90,000 is taxable and added to your taxable compensation income.
The ₱90,000 ceiling is a combined pool for your 13th-month pay plus other benefits — Christmas bonus, productivity incentives, loyalty awards — and any de-minimis benefits in EXCESS of their individual ceilings. Add them together; only the total above ₱90,000 is taxed.
De-minimis benefits within their own per-benefit ceilings (e.g. rice subsidy, uniform/clothing allowance, monetised unused leave) are fully tax-exempt and do NOT count toward the ₱90,000. Only the excess over a ceiling spills into the ₱90,000 'other benefits' pool. The de-minimis ceilings were last updated by BIR RR 29-2025, effective 6 January 2026.
Yes. The combined 13th-month-and-other-benefits exemption was ₱82,000 until the TRAIN law (RA 10963) raised it to ₱90,000. The ₱90,000 cap applies from the 2018 taxable year onwards.
Informational only — not tax advice. This calculator is a general aid for Philippine 13th-month pay and the ₱90,000 tax-exempt benefits cap. Your exact entitlement and taxable amount depend on your actual earnings, employer policy, and de-minimis treatment. Verify with the Bureau of Internal Revenue (BIR) or a qualified Philippine tax professional. See our full disclaimer.
Source: NIRC §32(B)(7)(e) (TRAIN, RA 10963); Presidential Decree 851; BIR RR 11-2018 & RR 29-2025. As of June 2026.