Separation Pay Calculator (Philippines)

How separation pay works in the Philippines

Separation pay is money owed to an employee who is let go through no fault of their own — an "authorized cause" under the Labor Code, such as redundancy, retrenchment, or business closure. The amount depends on the cause and your length of service.

The two rates

• One month's pay per year of service — for redundancy or installation of labor-saving devices.
• Half a month's pay per year of service — for retrenchment to prevent losses, closure not due to serious losses, or separation due to disease.

In both cases the minimum is one month's pay. A fraction of service of at least six months is counted as one whole year — so 4 years and 7 months counts as 5 years.

When there's no separation pay

Employees dismissed for a just cause (serious misconduct, fraud, etc.) generally receive no separation pay, and neither do most who resign voluntarily — though final pay (unpaid wages, pro-rated 13th-month, unused leave) is still owed.

FAQ

How is separation pay calculated?

It is based on your length of service and the cause of separation: one month's pay per year of service for redundancy or labor-saving devices, or half a month's pay per year for retrenchment, closure not due to serious losses, or disease. In every case the minimum is one month's pay.

How is a partial year of service counted?

A fraction of at least six months is rounded up and counted as one whole year. So 4 years and 7 months of service counts as 5 years, while 4 years and 4 months counts as 4.

Do I get separation pay if I resign?

Generally no, since resignation is voluntary and separation pay applies to authorized-cause terminations. You are still owed your final pay, which includes unpaid wages, pro-rated 13th-month pay, and any unused leave conversions.

What if I was dismissed for a just cause?

Employees dismissed for a just cause such as serious misconduct or fraud usually receive no separation pay. Final pay items like earned wages and benefits may still be due.

Is this calculator accurate, free, and private?

It is a free estimate that runs entirely in your browser, so your figures are never uploaded, and it works on phones too. Because actual entitlement depends on your contract and the specific cause, confirm your exact amount with DOLE or a labor lawyer.

This is a general estimate, not legal advice. Confirm your exact entitlement with DOLE or a labor lawyer.