Final Pay / Separation Pay Calculator 2026
Calculate final pay including leave conversion, pro-rated 13th month, and separation pay.
About Final Pay in the Philippines
Final pay (also called last pay or back pay) must be released within 30 days from the date of separation or termination. It typically includes unpaid salary, pro-rated 13th month pay, cash conversion of unused leave credits, and separation pay (if applicable).
Separation pay is only required for authorized causes under the Labor Code (redundancy, retrenchment, closure, or disease). Voluntary resignation does not entitle the employee to separation pay unless stated in the employment contract or company policy.
Legal basis: Labor Code Art. 298-299 (Authorized Causes), DOLE Labor Advisory No. 06-2020 (Release of Final Pay)
Read our complete Separation Pay guide →Frequently Asked Questions
What is included in final pay in the Philippines?
Final pay (also called last pay or back pay) includes unpaid salary, pro-rated 13th month pay, cash conversion of unused leave credits, separation pay (if applicable), and any other unpaid benefits. Tax refunds or adjustments may also be included.
When must an employer release final pay?
Under DOLE Labor Advisory No. 06-2020, employers must release the final pay within 30 days from the date of separation or termination, unless a more favorable company policy or collective bargaining agreement exists.
Who is entitled to separation pay?
Separation pay is required when termination is due to authorized causes such as redundancy (1 month per year of service), retrenchment or closure (1/2 month per year), or disease (1 month per year). Employees who resign voluntarily are generally not entitled to separation pay unless stated in their contract.