Separation Pay Calculator 2026 (Philippines): Final Pay
Calculate separation pay and final pay in the Philippines 2026: redundancy, retrenchment or closure, prorated 13th month pay and unused leave.
| Item | Detail | Amount |
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A fraction of at least 6 months counts as a whole year. Separation pay for causes beyond the employee's control is exempt from income tax. The final pay must be released within 30 days from the separation (DOLE Labor Advisory 06, series of 2020).
What it does
When a Philippine employer ends a job for an authorized cause it pays separation pay: one month of salary per year of service for redundancy or labor-saving devices, and half a month per year for retrenchment, closure not due to serious losses or disease, with a minimum of one month. Every employee who leaves also receives the final pay: unpaid salary, the prorated 13th month pay and unused leave that can be converted to cash.
How to use it
- Type your monthly basic salary and the dates.
- Choose the reason and type unpaid salary days, unused leave and the 13th month already received.
- Read the separation pay, each item of the final pay and the total.
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 do I receive for redundancy with ₱30,000 after 7 years and 10 months?
From 1 January 2019 to 15 November 2026 the 10 months round up to 8 years: separation pay 8 × ₱30,000 = ₱240,000. With a prorated 13th month pay of ₱26,250, 10 unpaid days (₱13,793.10) and 5 days of leave (₱6,896.55) at a daily rate of ₱1,379.31, the final pay is ₱286,939.65.
And for retrenchment?
Half a month per year: 8 × ₱15,000 = ₱120,000, but never less than one month's salary.
What do I receive if I resign?
No separation pay, unless your contract or company policy grants it, but you still receive the final pay: unpaid salary, the prorated 13th month pay and convertible unused leave, within 30 days.
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