Retirement Pay Calculator 2026 (Philippines): RA 7641
Calculate retirement pay in the Philippines 2026 under RA 7641: 22.5 days of salary per year of service, age 60 to 65 and at least 5 years of service.
A fraction of at least 6 months counts as a whole year. A company retirement plan or collective agreement applies instead if it gives at least as much. Underground and surface mine workers may retire from 50.
What it does
Under RA 7641 (Labor Code art. 302), a private-sector employee who retires at 60 to 65 after at least 5 years with the same employer receives at least half a month of salary for every year of service. The law defines half a month as 22.5 days: 15 days of salary, 5 days of service incentive leave and one twelfth of the 13th month pay.
How to use it
- Type your monthly basic salary, the start date and the retirement date.
- Type your age and the working days a year used for the daily rate.
- Read the retirement pay and the years counted.
The arithmetic runs in your browser. Nothing you type is sent anywhere and nothing is stored, so you can use these with real numbers.
Frequently asked questions
How much is the retirement pay for ₱30,000 after 25 years and 8 months?
The 8 months count as a year, so 26 years. With a daily rate of ₱1,379.31 (₱30,000 × 12 ÷ 261), 26 × 22.5 days = 585 days = ₱806,896.55.
Why 22.5 days and not 15?
The law adds to the 15 days of salary the 5 days of service incentive leave and 2.5 days for one twelfth of the 13th month pay.
Can I retire at 60?
Yes, retirement from 60 is optional for the employee; at 65 it is compulsory. In both cases you need at least 5 years with the employer.
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