Final Pay & Separation Pay Calculator (Philippines)
Resigning, laid off, or retiring? Estimate your back pay: unpaid salary, pro-rated 13th month, unused leave, and any separation or retirement pay you're owed, so you know what to expect before HR sends the computation.
Uses Labor Code Articles 297–299 and 302 (RA 7641), PD 851 for the 13th month, and DOLE Labor Advisory No. 06, Series of 2020 for the 30-day release rule. These are legal minimums; your contract or company policy may give more.
Enter your first and last day of work, with the last day on or after the first.
Separation pay by reason for leaving
A fraction of at least 6 months counts as a whole year of service.
| Reason | Separation pay | Note |
|---|---|---|
| Resignation | None by law (check company policy) | — |
| Redundancy or labor-saving devices (Art. 298) | 1 month per year of service | At least 1 month |
| Retrenchment or closure not due to serious losses (Art. 298) | ½ month per year of service | At least 1 month |
| Closure due to serious business losses (Art. 298) | None | — |
| Illness that can’t be cured within 6 months (Art. 299) | ½ month per year of service | At least 1 month |
| Dismissal for just cause (Art. 297) | None | — |
| Retirement at 60–65, 5+ years (RA 7641) | 22.5 days’ pay per year of service | If no better company plan |
Before your last day
- Get your numbers in writing. Ask HR for your leave balance and the final pay computation, and request your Certificate of Employment (due within 3 days of the request).
- Finish clearance early. Return equipment and settle company loans so nothing is held back or deducted.
- Ask for your BIR Form 2316. Your next employer needs it, and the year-end adjustment may give you a tax refund.
- Count the days. Final pay is due within 30 days of separation. If it's late or short, raise it with HR, then DOLE's SEnA desk.
Between jobs? Make the lump sum last: see how many months it covers in the emergency fund guide, park it in a high-interest digital bank, and keep your SSS going as a voluntary member (see the SSS pension calculator). Starting a new job? Check the offer in the take-home pay calculator.
Frequently asked questions
What is included in final pay in the Philippines?
Final pay (back pay) is everything the employer still owes you when you leave: unpaid salary for days already worked, your pro-rated 13th month pay, the cash value of unused leave that company policy or the law makes convertible (including the 5-day service incentive leave), separation or retirement pay if you qualify, and any tax refund from the year-end adjustment. Deductions such as unreturned equipment or loans can be taken out.
How long does the employer have to release final pay?
Within 30 days from the date of separation, under DOLE Labor Advisory No. 06, Series of 2020, unless a more favorable company policy, agreement or CBA applies. The employer must also issue your Certificate of Employment within 3 days of your request.
Do I get separation pay if I resign?
Not under the Labor Code. Separation pay is for authorized causes: redundancy and labor-saving devices (1 month per year of service), and retrenchment, closure not due to serious losses, or illness (½ month per year), with at least 1 month either way. Some companies pay it to resigning employees by policy or contract, so check your handbook.
How is separation pay computed?
Multiply your monthly salary by 1 or ½ (depending on the cause) and by your years of service, where a fraction of at least 6 months counts as a whole year. If the result is less than one month’s pay, you get one month. Example: ₱30,000 a month, 7 years, redundancy = ₱210,000.
How much is retirement pay under RA 7641?
If your company has no retirement plan (or a less generous one), you get at least 22.5 days’ pay for every year of service once you retire at 60 to 65 with at least 5 years with the employer: 15 days, plus 5 days of service incentive leave, plus 1/12 of the 13th month. Workers in retail, service and agricultural businesses with 10 or fewer employees are exempt.
Is final pay taxable?
Separation pay for causes beyond your control (like redundancy, retrenchment, closure or illness) and RA 7641 retirement pay are tax-exempt. The 13th month and other benefits are tax-free up to ₱90,000 a year combined. Unpaid salary and most leave conversions are taxed like regular pay, settled in the year-end adjustment on your BIR Form 2316.
Educational estimate only, not legal advice. Shows statutory minimums for private-sector employees covered by the Labor Code. Excludes company retirement plans, CBA benefits, deductions for loans or accountabilities, and the year-end tax adjustment. Confirm the computation with your HR or DOLE.
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