How to use the 13th month pay calculator
- Choose whether your basic pay is given per year or per month, then enter the basic pay. Use basic pay only, before allowances or extra pay.
- Enter the months worked in the year. A full year is 12. Use a decimal for part of a month, such as 7.5.
- Open Advanced options if other monthly pay should be counted in the total for the year but not in the 13th month.
- Read the 13th month payment, the full year amount, the share of the year worked and the total pay for the year with the extra month included. Use Copy, Print or CSV to keep it.
Formula
Full year payment = basic annual pay / 12
Payment for part of a year = full year payment x months worked / 12
Total for the year = basic pay for the months worked + 13th month payment + other monthly pay x months worked
A monthly basic pay is multiplied by 12 to get basic annual pay first. This is the common one twelfth method. A contract can use a different base or count months another way.
$48,000 basic annual pay
With basic annual pay of $48,000, the full year payment is 48,000 / 12 = $4,000. For someone who worked 7.5 months of the year, the payment is 4,000 x 7.5 / 12 = $2,500.
Basic pay for those 7.5 months is 48,000 / 12 x 7.5 = $30,000, so total pay for the year with the extra month is 30,000 + 2,500 = $32,500. If pay were given monthly as $4,000 and the person worked 6 months, the 13th month payment would be $2,000. Pay for a half year earns half of the full amount.
What a 13th month payment is
A 13th month payment is an extra month of pay that some employers give each year, often at the end of the year. The usual idea is that the yearly total is paid in 13 equal parts instead of 12. In some places it is a legal requirement, in others a contract term or a custom, and in many it does not exist at all.
Because arrangements differ, the base can differ too. Some plans use basic pay only, others include fixed allowances, and some pay the extra month in two halves. This tool uses basic pay and a simple scale for the months worked, which matches one common method but not every plan.
Part of a year and leaving a job
Employees who join or leave during the year usually get a proportional amount. The scale of months worked divided by 12 does that, and a decimal lets you count partial months. Whether a partial month counts as a full month, a half or a proportion of days is set by the plan, so check how yours treats it.
The result is before tax and other deductions. To work out the rest of the pay picture, use the gross pay calculator, and to see yearly pay from an hourly wage use the hourly to salary calculator. The severance pay calculator covers a different end of job payment.
Assumptions and limits
- The payment is basic annual pay divided by 12 and scaled by months worked over 12.
- Allowances, overtime and bonuses are not in the base unless you treat them as basic pay.
- Taxes and deductions are not modeled, so the result is a gross amount.
- Whether a 13th month payment is required, and how it is calculated, depends on your contract and the rules where you work. The example pay figures are samples to edit.
Frequently asked questions
How do you calculate 13th month pay?
Divide basic annual pay by 12 for a full year. For part of a year, multiply that by the months worked and divide by 12.
What if I worked only part of the year?
Enter the months you worked, with a decimal for part of a month. The payment scales down in proportion, so 6 months earns half of the full amount.
Is 13th month pay taxable?
That depends on where you live and how the payment is made. This tool shows the gross amount only, and a tax adviser or your payroll department can say how it is treated.
Is a 13th month payment the same as a bonus?
Not necessarily. A bonus is usually tied to performance or results, while a 13th month payment is a fixed extra month based on pay. Some employers call a payment by either name, so read your own agreement.