Final Pay / Back Pay Calculator Philippines

Final pay — also called back pay or last pay — is the sum of all wages and monetary benefits still owed to you when your employment ends, whatever the cause of separation. DOLE Labor Advisory No. 06-20 treats final pay, last pay and back pay as the same concept.

Within 30 days from your date of separation, per DOLE Labor Advisory No. 06-20, unless a more favorable company policy, individual agreement, or CBA applies. Your Certificate of Employment must be issued within 3 days of your request.

Typical components: unpaid earned salary; the cash value of unused Service Incentive Leave (and other convertible leave); pro-rated 13th month pay; separation pay if the separation cause requires it; retirement pay if qualified; tax refund if over-withheld; and return of deposits or cash bonds. Deductions for loans and accountabilities may be subtracted.

Total basic salary you earned during the calendar year up to your last day, divided by 12. Example: resigned June 30 after earning ₱20,000 monthly → ₱120,000 ÷ 12 = ₱10,000 pro-rated 13th month pay.

Generally no — voluntary resignation does not entitle you to separation pay unless your company policy, contract, or CBA grants it. Separation pay is required for authorized causes such as retrenchment, redundancy, closure not due to serious losses, or disease (½ to 1 month pay per year of service depending on the cause).

It depends on the authorized cause. Redundancy or installation of labor-saving devices: one month pay per year of service. Retrenchment, closure not due to serious losses, or disease: one-half month pay per year of service. In every case the minimum is one month pay, and a fraction of at least six months counts as a full year (Labor Code Arts. 298–299). No separation pay is required for resignation, just-cause dismissal or closure due to serious losses.

Add (1) unpaid salary for days worked since the last payroll — daily rate × days; (2) unused Service Incentive Leave and other convertible leave × daily rate; (3) pro-rated 13th month pay — basic salary earned this year ÷ 12; and (4) any tax refund or returnable deposit. Then subtract loan balances and documented accountabilities. Separation pay is not included on resignation unless policy or a CBA grants it. The employer must release the result within 30 days of your last day.

Employees who have worked at least one year are entitled to five days of Service Incentive Leave per year (Labor Code Art. 95). Unused SIL is convertible to cash at the end of the year, and any remaining balance is paid in your final pay: unused days × your daily rate. Company vacation or sick leave beyond the five statutory days follows company policy.

Idagdag ang (1) hindi pa bayad na sahod para sa mga araw na pumasok ka — daily rate × araw; (2) cash conversion ng hindi nagamit na Service Incentive Leave; (3) pro-rated 13th month pay — kabuuang basic salary ngayong taon ÷ 12; at (4) tax refund kung sobra ang kaltas. Bawasin ang loan at accountabilities. Halimbawa: ₱26,100 monthly, 10 araw na hindi pa bayad (₱12,000), 5 araw na SIL (₱6,000), 8 buwang 13th month (₱17,400), less ₱2,000 loan = ₱33,400 na back pay, dapat ibigay sa loob ng 30 araw.

Within 30 days from the date of separation or termination, unless a more favorable company policy, contract or CBA applies (DOLE Labor Advisory No. 06-20). Clearance processing does not extend the 30-day rule; if it is late, you may file a request for assistance with the nearest DOLE office.

Oo. Final pay is due whether you resigned or were terminated: unpaid salary up to your last day, pro-rated 13th month pay, cash conversion of unused service incentive leave (or company leave, if policy converts it), and any other amounts due. Separation pay is the exception — it is not owed on voluntary resignation unless company policy or a CBA grants it.