Final Pay, Separation & Retirement Pay Calculator Philippines

Within 30 days from your last day, unless your company policy or contract gives you a shorter period. Your employer must also give you a certificate of employment within 3 days of your request. If there is a problem, you can go to the nearest DOLE office.

Everything your employer still owes you, whatever the reason you left: unpaid earned salary; cash conversion of unused service incentive leave; cash conversion of other unused leaves, if your company policy or agreement provides it; pro-rated 13th month pay; separation pay, if applicable; retirement pay, if applicable; refund of excess income tax withheld, if any; other pay stated in your contract or collective agreement; cash bonds or deposits due back to you. The pro-rated 13th month pay is your basic salary earned this year ÷ 12.

Not under the Labor Code. Separation pay is required only when your employer ends your employment for an authorized cause, such as redundancy, retrenchment or closure. You may still get it if your contract, collective bargaining agreement or company policy provides for it.

It depends on the reason. One month's pay for every year of service for: installation of labor-saving devices; redundancy (your position is no longer needed); reinstatement ordered but no longer possible; and security guard: no assignment because of age. Half a month's pay for every year of service for: retrenchment to prevent losses; closure of the business not due to serious losses; disease (not curable within 6 months); security guard: no assignment for 6 months; and contractor's worker: no assignment for 3 months. Either way you get at least 1 month's pay. A fraction of at least 6 months counts as a whole year, and the computation uses your latest salary including regular allowances.

At least 22.5 days of pay for every year of service: 15 days' salary, 5 days of service incentive leave, and 2.5 days (1/12) of 13th month pay. You qualify at age 60 to 65 with at least 5 years of service, unless your employer is one of the retail, service and agricultural establishments or operations regularly employing not more than ten employees (and the government). A retirement plan or CBA can give more, but not less.

After one year of service you earn 5 days of service incentive leave a year. If you haven't used it when you leave, you are paid its cash value at your current daily rate, including a pro-rated share for the current year. It doesn't apply to: government employees (including government-owned or controlled corporations with original charters); persons in the personal service of another; managerial employees; officers or members of a managerial staff; field personnel and others whose time and performance are not supervised by the employer; employees already enjoying this benefit; employees already given at least 5 days of vacation leave with pay; employees of establishments regularly employing fewer than 10 employees; employees of establishments exempted by the Secretary of Labor because of their viability or financial condition. Managerial employees and managerial staff are left out only if their actual duties fit DOLE's definition of those roles, not just their job title.

Separation pay received because of death, sickness or other physical disability, or any cause beyond your control, is not taxed. Retirement pay under the Labor Code (RA 7641) is not taxed. Retirement benefits from a private plan are tax-free only if the plan qualifies and you are at least 50 years old with at least 10 years of service with the same employer, once in your lifetime.