Separation Pay Calculator

What you are owed when employment ends for an authorised cause — not for misconduct, which carries no separation pay.

Labor Code of the Philippines, Arts. 298 and 299 (formerly 283 and 284)

Why is the employment ending?The ground decides the rate. This is the field people most often get wrong.

Redundancy1 month / yearYour position became superfluous — the work still exists but the role is duplicated or no longer needed.Installation of labor-saving devices1 month / yearMachinery or automation replaced the work you were doing.Retrenchment to prevent losses½ month / yearThe employer cut staff to prevent losses that had not yet become serious.Closure not due to serious losses½ month / yearThe business closed or ceased operations for a reason other than serious financial losses.Closure due to serious business lossesno separation payThe business closed because of serious, proven losses. No separation pay is owed — but the employer must prove the losses with financial statements.Disease / health grounds½ month / yearContinued employment is prohibited or harmful to you or your co-workers, certified by a public health officer.

Monthly payYour latest monthly salary rate.

₱

Completed years of service

Extra months6 or more counts as a whole year.

Your separation pay

₱125,000.00

How this was computed

Years of service credited

5 years

Per-year computation (1 month per year)

₱25,000.00 × 1 × 5

₱125,000.00

One-month floor

₱25,000.00 — the law guarantees at least one month's pay

₱25,000.00

Separation pay (whichever is higher)

The per-year computation is higher than ₱25,000.00

₱125,000.00

Labor Code, Art. 298. Your position became superfluous — the work still exists but the role is duplicated or no longer needed.
Your employer must serve written notice on you and on DOLE at least 30 days before the date this takes effect.
Separation pay is separate from your final pay — unpaid wages, pro-rated 13th-month pay and unused leave are owed on top of this.

Ang nilalaman ng platform na ito ay para lamang sa layuning pang-edukasyon at impormasyon. Hindi ito legal advice o substitute para sa pormal na legal counsel mula sa isang lisensyadong abogado.