What is exempt, what shares the limit, and how much tax you pay on the excess.
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.
Up to ₱90,000 of your 13th month pay and other benefits for the year is exempt from income tax under the Tax Code as amended by TRAIN (RA 10963). Only the amount above ₱90,000 is taxed, at your normal rate. The 13th month is also never subject to SSS, PhilHealth or Pag-IBIG contributions.
| Monthly basic | 13th month + bonuses | Taxable | Approx. tax |
|---|---|---|---|
| ₱25,000 | ₱30,000 ₱25,000 + ₱5,000 | ₱0 | ₱0 |
| ₱60,000 | ₱95,000 ₱60,000 + ₱35,000 | ₱5,000 | ₱1,000 at 20% |
| ₱100,000 | ₱100,000 ₱100,000 + ₱0 | ₱10,000 | ₱2,500 at 25% |
Tax estimates assume a full year at the given salary, with SSS, PhilHealth and Pag-IBIG employee contributions deducted from taxable pay, and the TRAIN rates in force since 2023 (0% up to ₱250,000; 15%, 20%, 25%, 30% and 35% above).
Regular allowances (transport, meal, communication) that you receive every payroll aren't in the bucket — they're taxed as part of your compensation unless they're de minimis or liquidated business expenses.
There's no special bonus tax rate. The excess is simply added to your taxable compensation for the year, so it's taxed at your top rate. Payroll handles this in the December annualization, which is why that payslip can show an unusually large withholding even when the 13th month itself was exempt. Everything is summarised in your BIR Form 2316: ₱90,000 (or less) in the non-taxable “13th month pay and other benefits” box, the rest in taxable compensation.
The calculator compares your 13th month plus other bonuses with the ₱90,000 ceiling and estimates any tax.
With no other bonuses, only people earning more than ₱90,000 a month for the full year have a taxable 13th month. Add a typical ₱10,000–₱20,000 Christmas bonus and the threshold drops to roughly ₱70,000–₱80,000 a month. Below about ₱20,800 a month, your yearly taxable pay is under ₱250,000 anyway, so even an excess would be taxed at 0%.
The ₱90,000 figure has been in place since TRAIN took effect on 1 January 2018 (it was ₱82,000 before). The law lets the Finance Secretary raise it to account for inflation, and bills to lift it — most recently House Bill 7661 (₱150,000), filed in February 2026 — keep appearing. As of November 2026 nothing has passed, so the 2026 payout is tested against ₱90,000.
Only the part of your 13th month pay and other benefits above ₱90,000 for the year. The first ₱90,000 is exempt under NIRC Sec. 32(B)(7)(e) as amended by TRAIN.
The 13th month pay and other benefits such as Christmas bonuses, productivity incentives and loyalty awards, plus any de minimis benefits above their own limits.
No, it is per taxpayer per year. If you had two employers, the combined benefits are tested against ₱90,000 in your annual return.
Not as of November 2026. House Bill 7661, filed in February 2026, proposes ₱150,000, but it has not been enacted.
Minimum wage earners are exempt from income tax on their statutory minimum wage, holiday pay, overtime and night differential, but benefits above the ₱90,000 ceiling are taxable income under BIR rules.