13th month pay and other benefits: tax-free up to ₱90,000

Under the TRAIN Law (R.A. 10963), which amended Section 32(B)(7)(e) of the Tax Code, the 13th month pay and other benefits are excluded from gross income — but the total exclusion shall not exceed ₱90,000.

Example

Illustrative example only. Basic pay ₱30,000 a month → 13th month ₱30,000. Christmas bonus ₱10,000. Total ₱40,000 — all within ₱90,000, so walang tax dito.

Illustrative example only. 13th month ₱80,000 + bonus ₱20,000 = ₱100,000. Only the excess, ₱10,000, is added to taxable income.

Important

The ₱90,000 is one ceiling for the 13th month and the other benefits together — not ₱90,000 each.

Before December 24

• ☐ Compute your 13th month (basic pay ÷ 12 for the year)
• ☐ Add bonuses and other benefits
• ☐ Compare the total with ₱90,000
• ☐ Check the tax line on your payslip

Compute your 13th month — and request it in writing if it's late 👇

Basis: R.A. 10963 (TRAIN Law), amending Sec. 32(B)(7)(e) of the NIRC; P.D. 851 and its implementing rules.