Final Pay Calculator (Philippines)
Updated November 2026 · Free · No sign-up
Calculate your Philippine final pay (back pay) — last salary, prorated 13th month, unused leave conversions, tax refund, minus deductions — and the DOLE 30-day release rule employers must follow.
Quick answer: Final pay = last unpaid salary + prorated 13th month + unused SIL/vacation leave conversion + pro-rated bonuses + any tax refund − (loans, accountabilities). DOLE Labor Advisory 06-20 requires release within 30 days of separation. Resigning Sep 30 on ₱30,000: typically ₱45,000-55,000.
What Goes Into Final Pay
| Component | Formula |
|---|---|
| Unpaid salary | Daily rate × days worked since last payroll |
| Prorated 13th month | Basic × months worked ÷ 12 — owed regardless of resignation (full math) |
| Leave conversions | Unused Service Incentive Leave (5 days/yr statutory) and convertible VL × daily rate |
| Pro-rated bonuses/allowances | Per policy/CBA |
| Tax refund | Over-withheld tax from annualization — common for mid-year leavers |
| Separation pay | ONLY for authorized-cause terminations (redundancy, retrenchment...) — not resignations |
| − Deductions | SSS/company loans, unreturned property, unserved notice (if policy provides) |
Worked Example — Resigned September 30, ₱30,000
15 unpaid days (₱15,000) + 13th month 30,000 × 9 ÷ 12 (₱22,500) + 5 unused SIL days (₱6,818, at ÷22 basis) + tax refund (say ₱2,000) − ₱3,000 laptop accountability = ₱43,318, releasable by October 30 under the DOLE advisory.
The 30-Day Rule and Its Realities
- Labor Advisory 06-20: final pay within 30 days from separation unless a better CBA/policy applies — clearance processes do NOT justify indefinite delays.
- Certificate of Employment: due within 3 days of request — independent of clearance.
- Clearance offsets must be real: only documented accountabilities deduct; blanket "pending clearance" withholding past 30 days is complaint-ready at DOLE (SEnA single-entry assistance is free and fast).
- Tax annualization: the employer recomputes your year's tax at exit — mid-year leavers with standard withholding usually get refunds; year-end leavers sometimes owe.
Resignation vs Authorized-Cause Separations
Resignation earns everything above but NOT separation pay. Authorized causes add it: redundancy/labor-saving devices = 1 month per year of service; retrenchment/closure = ½ month per year (fraction ≥6 months rounds to a year) — minimum one month either way. Illegal-dismissal disputes change the whole computation (backwages + reinstatement) — different battlefield, NLRC jurisdiction.
Getting Paid On Time (Practical Sequence)
- Serve the 30-day notice properly (or negotiate a shorter handover in writing).
- Complete clearance fast — return assets with receipts; photograph everything.
- Day 31 without pay: a polite written demand citing Labor Advisory 06-20.
- Still nothing: DOLE SEnA request — most final-pay disputes settle in the mandatory conference within 30 days.
- Check the math here first — including the holiday premiums and ND from your final weeks.
Frequently Asked Questions
What is included in final pay in the Philippines?
Unpaid salary, prorated 13th month, unused SIL/convertible leave, pro-rated bonuses, and any tax refund — minus documented loans and accountabilities.
How long can an employer hold back pay?
30 days from separation under DOLE Labor Advisory 06-20 — clearance procedures don't justify longer; SEnA complaints resolve most delays quickly.
Do I get 13th month pay if I resign?
Yes — prorated by months worked in the calendar year, payable in the final pay regardless of resignation.
Do resigned employees get separation pay?
No — separation pay attaches to authorized-cause terminations (redundancy: 1 month/year; retrenchment/closure: ½ month/year), not voluntary resignation.
Why is there a tax refund in my back pay?
Exit triggers annualization — withholding assumed a full year of income, so mid-year leavers were usually over-withheld; the excess refunds in final pay.
Can my employer deduct unserved notice from final pay?
If policy/contract provides and the amounts are documented — alongside genuine accountabilities. Arbitrary or undocumented deductions are contestable at DOLE.
✓ Formula verified • Last updated: November 3, 2026