Retirement Pay Calculator (RA 7641)
Estimate retirement pay under Republic Act 7641 — the Philippine Retirement Pay Law.
About RA 7641 Retirement Pay
Retirement Pay = Daily Rate × 22.5 days × Years of ServiceUnder RA 7641, private sector employees who reach 60 years old (optional) or 65 years old (compulsory) and have served at least 5 years are entitled to retirement pay. The rate is at least 22.5 days for every year of service, where a "day" is based on the latest salary rate. The 22.5 days is equivalent to 15 days salary + 5 days of service incentive leave + 1/12 of 13th month pay.
Legal basis: Republic Act No. 7641, Labor Code Art. 302 (Retirement)
Read our complete Retirement Pay guide →Frequently Asked Questions
How is retirement pay computed under RA 7641?
Under RA 7641, retirement pay equals at least 22.5 days of pay for every year of service. The 22.5 days is computed as: 15 days salary + 5 days service incentive leave + 1/12 of the 13th month pay (equivalent to 2.5 days). The latest monthly salary or daily rate is used as the basis.
What is the retirement age in the Philippines?
Under RA 7641, the optional retirement age is 60 years old and the compulsory retirement age is 65 years old. To qualify, the employee must have served at least 5 years with the same employer.
Is retirement pay taxable in the Philippines?
Retirement benefits received under RA 7641 are generally tax-exempt, provided the retiring employee is at least 50 years old at the time of retirement, has been in service for at least 10 years, and the benefit is availed of only once.