PHP 90,000 Tax Exemption on 13th Month Pay Philippines
Published: 2026-05-01 · Updated: 2026-05-01 · SuweldoKo
What is the PHP 90,000 tax exemption in the Philippines?
Under the TRAIN Law, the first PHP 90,000 of combined 13th month pay and other benefits received in a calendar year is income tax-exempt. This ceiling covers 13th month pay, Christmas bonuses, productivity bonuses, loyalty awards, and gifts. Any combined amount above PHP 90,000 is added to taxable income.
What Is Covered Under the PHP 90,000 Ceiling
| Benefit Type | Included in PHP 90,000 Ceiling? |
|---|---|
| 13th Month Pay | Yes |
| Christmas Bonus | Yes |
| Productivity Incentive Bonus | Yes |
| Loyalty Award | Yes |
| Cash Gift | Yes |
| SSS/PhilHealth/Pag-IBIG Contributions | No (separately deductible) |
| De minimis benefits (within limits) | No (separately exempt) |
Computation Example
13th month pay: PHP 50,000. Christmas bonus: PHP 20,000. Productivity bonus: PHP 30,000. Total: PHP 100,000. Exempt: PHP 90,000. Taxable excess: PHP 10,000 added to annual taxable income.
Planning Tip
If your employer gives discretionary bonuses, ask your HR department to confirm how much of your total benefits will be applied against the PHP 90,000 ceiling before year-end, so you can plan for any additional tax liability.
Common Questions
Mga Karaniwang Tanong
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