Final Pay in the Philippines

Final pay is the last amount an employer owes when employment ends. It is not one formula. It is the unpaid pieces added together, then any tax still due is settled. Use the salary calculator for a normal month and the 13th month calculator for the pro-rated benefit.

What is usually in it

• Unpaid salary up to the last day worked.
• Pro-rated 13th month pay: basic salary earned during the year, divided by 12. The first ₱90,000 of 13th month pay and other benefits is tax-exempt.
• Cash conversion of unused Service Incentive Leave, and any other convertible leave the company policy allows.
• Separation pay, only when the Labor Code requires it for the cause of separation. Resignation and just-cause dismissal generally do not include it.
• A tax refund or a last withholding, from the year-end compensation already paid.

When it is released

Labor Advisory No. 06, series of 2020, tells employers to release final pay within 30 days from separation or termination. A certificate of employment is covered by the same advisory, within three days from the request. Confirm the advisory text with DOLE if a payslip is already past that count.

This page does not estimate a peso total. Leave balances, tax already withheld, and whether separation pay is due all change the number.