🇵🇭 Nov 2026
13th month pay · 2026

13th month pay for ₱40,000 monthly salary

How much you get, how to pro-rate it, and whether any of it is taxed — with a worked example.

ESTIMATE

Guide and estimates as of 3 November 2026, for information only — not legal or tax advice. Rules: PD 851 and its 1987 Revised Guidelines, DOLE Labor Advisory No. 16, Series of 2025 (issued late November 2025), the ₱90,000 exemption under RA 10963 (TRAIN). The 2026 DOLE advisory had not been published when this was written; the rules have been the same every year.

At ₱40,000 a month, a full year of work gives ₱40,000 in 13th month pay — tax-free, with ₱50,000 of room left under the ₱90,000 ceiling for a Christmas bonus or other benefits.

13th month pay on a ₱40,000 monthly salary: ₱40,000 for a full year, ₱3,333.33 for each month worked; highlighted months show the example in this article 13TH MONTH PAY · 2026 ₱40,000FULL YEAR · ON OR BEFORE 24 DEC JanFebMarAprMayJunJulAugSepOctNovDec PER MONTH WORKED₱3,333.33 TAX₱0 (exempt)

₱40,000 salary at a glance

13th month pay = basic salary earned in 2026 ÷ 12.

₱40,000 full year₱20,000 6 months₱3,333.33 per month₱153.26 per unpaid day₱50,000 tax-free room left

Pro-rated 13th month pay on ₱40,000 by start month

Each full month of basic salary adds ₱3,333.33. The table assumes you started on the 1st or left on the last day of the month with no unpaid days; for a mid-month start, add the days actually paid.

Pro-rated 13th month pay on ₱40,000 a month: from ₱3,333.33 for one month to ₱40,000 for twelve123456789101112₱40kmonths of basic salary earned in the year →
Each bar is one-twelfth of basic salary earned; gold bars match the example above.
MonthsWorked13th month (of basic earned)
12from 1 January (full year)₱40,000
of ₱480,000
11from 1 February
or Jan to end of November		₱36,666.67
of ₱440,000
10from 1 March
or Jan to end of October		₱33,333.33
of ₱400,000
9from 1 April
or Jan to end of September		₱30,000
of ₱360,000
8from 1 May
or Jan to end of August		₱26,666.67
of ₱320,000
7from 1 June
or Jan to end of July		₱23,333.33
of ₱280,000
6from 1 July
or Jan to end of June		₱20,000
of ₱240,000
5from 1 August
or Jan to end of May		₱16,666.67
of ₱200,000
4from 1 September
or Jan to end of April		₱13,333.33
of ₱160,000
3from 1 October
or Jan to end of March		₱10,000
of ₱120,000
2from 1 November
or Jan to end of February		₱6,666.67
of ₱80,000
1from 1 December
or Jan to end of January		₱3,333.33
of ₱40,000

An example from payroll

Mark does IT support for a bank's back office in Ortigas, on ₱40,000 a month. In December he gets his 13th month of ₱40,000, a ₱10,000 Christmas bonus, and in June he received a ₱5,000 anniversary bonus.

All three go into the same ₱90,000 bucket: ₱40,000 + ₱10,000 + ₱5,000 = ₱55,000. That's ₱35,000 below the ceiling, so none of it is taxed and his December payslip shows no extra withholding. He could receive up to ₱35,000 more in bonuses this year before a single peso becomes taxable.

What else shares the ₱90,000 ceiling

The exemption isn't just for the 13th month. Under the tax code it covers the 13th month pay and other benefits — Christmas bonuses, productivity incentives, loyalty or anniversary bonuses, and the part of de minimis benefits above their own limits. Regular allowances that are part of your monthly compensation are not in the bucket; they're taxed with your salary.

At ₱40,000 a month, your taxable pay is roughly ₱444,600 a year after contributions, which puts you in the 20% bracket. So if your bonuses ever went over the ceiling, each extra ₱1,000 would cost you about ₱200 in tax.

Work out your own 13th month pay

Enter your monthly basic salary, the months you worked and any unpaid absences — the calculator also shows how much falls under the ₱90,000 tax-free ceiling.

Open the 13th month calculator →

Unpaid days and your 13th month

A day without pay reduces basic salary by one daily rate (₱1,839.08 on a 5-day week using the 261-day factor, ₱1,533.55 on a 6-day week using 313). The 13th month moves by one-twelfth of that.

Unpaid days5-day week6-day week
1 day₱39,846.74
−₱153.26		₱39,872.20
−₱127.80
3 days₱39,540.23
−₱459.77		₱39,616.61
−₱383.39
5 days₱39,233.72
−₱766.28		₱39,361.02
−₱638.98
10 days₱38,467.43
−₱1,532.57		₱38,722.04
−₱1,277.96

Where ₱40,000 sits against the tax-free limit

13th month pay of ₱40,000 plus a ₱10,000 bonus compared with the ₱90,000 tax-free ceiling: ₱40,000 of room left₱90,000 tax-free ceilingTotal ₱50,000 — ₱40,000 of tax-free room left13th monthChristmas bonus (example)
The ceiling covers the 13th month and other benefits combined, per taxpayer per year (NIRC Sec. 32(B)(7)(e), as amended by TRAIN).

A full-year 13th month of ₱40,000 is entirely exempt. You still have ₱50,000 of tax-free room for a Christmas bonus, productivity incentive or other benefits paid in 2026. A ₱10,000 Christmas bonus would still leave ₱40,000 of room.

The 13th month is never subject to SSS, PhilHealth or Pag-IBIG contributions. Tax estimates assume a full year at ₱40,000 with employee contributions of about ₱2,950 a month deducted.

Neighbouring salaries

Full-year 13th month pay for monthly salaries near ₱40,000: ₱30,000 gives ₱30,000, ₱35,000 gives ₱35,000, ₱40,000 gives ₱40,000, ₱45,000 gives ₱45,000, ₱50,000 gives ₱50,000₱30,000/mo₱30,000₱35,000/mo₱35,000₱40,000/mo₱40,000₱45,000/mo₱45,000₱50,000/mo₱50,000
Full-year amounts. For a pro-rated figure, divide by 12 and multiply by months worked.
Monthly basicFull yearPer month worked
₱30,000₱30,000₱2,500
₱35,000₱35,000₱2,916.67
₱40,000₱40,000₱3,333.33
₱45,000₱45,000₱3,750
₱50,000₱50,000₱4,166.67
Ways to picture a ₱40,000 13th month: 53.0 days of NCR minimum wage, ₱3,333.33 accrued per month, 8.33% of annual basic salary53.0 daysof NCR minimumwage (₱755/day)₱₱3,333.33set aside for youeach month worked8.33%of a year'sbasic salary
Fun equivalents. NCR minimum wage: ₱755 a day for non-agriculture workers under Wage Order NCR-28 (from 26 September 2026).

Practical tips

Keep a running total of bonuses received during the year — if you change jobs, the ₱90,000 ceiling applies to you, not to each employer.
Keep the employer's computation. If you were paid less than one-twelfth of your basic salary for the year, a written query to HR settles most cases before DOLE is needed.
Payday falls on a weekend or holiday? 24 December 2026 is a Thursday, so there's no excuse for “we'll pay after Christmas”. Employers may — and many do — pay earlier.

FAQ

Is ₱40,000 13th month pay taxable?

No. It is below the ₱90,000 ceiling. Only if your 13th month plus other bonuses for the year exceed ₱90,000 is the excess taxed.

Does my Christmas bonus count toward the ₱90,000 limit?

Yes. The ceiling is shared by the 13th month and other benefits such as Christmas, productivity and anniversary bonuses.

When is the 13th month pay deadline in 2026?

On or before 24 December 2026 under PD 851. Employers may pay earlier, and may pay half before the school year opens and the rest by 24 December.

Do I need to work a minimum period to get it?

Yes — at least one month during the calendar year. Below that, there is no entitlement under PD 851.

Related 13th month pay guides

How to compute 13th month payFormula, payslip examples, mistakesIs 13th month pay taxable?₱90,000 ceiling under TRAINPro-rated 13th month payResigned, new hires, final payWhat counts as basic salary?OT, night diff, COLA, commissions13th month pay deadline 2026On or before 24 December13th month pay for minimum wage earners (NCR)₱695 → ₱755 in 202613th month pay on ₱30,000₱30,000 for a full year · ₱2,500/month worked13th month pay on ₱35,000₱35,000 for a full year · ₱2,916.67/month worked13th month pay on ₱45,000₱45,000 for a full year · ₱3,750/month worked

Sources

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