The short version
Three things worth knowing about the year-end pay everyone waits for.
The formula
Total basic salary earned within the calendar year, divided by 12. Nothing more elaborate than that.
salary × months ÷ 12The deadline
Employers are required by Presidential Decree 851 to release it on or before December 24 each year.
Dec 24The tax rule
Exempt up to ₱90,000 combined with other bonuses. Anything above that joins your taxable income.
₱90,000 exemptQuestions people ask
answered in plain wordsTotal basic salary earned during the year divided by 12. If you worked the full year, it is simply one month of basic salary. If you joined mid-year, it is proportional to the months you actually worked.