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Separation Pay for Retrenchment or Closure

Retrenchment, closure without serious losses or illness: half a month's pay per year, at least one month. Compute yours free.

1. Your job

Why did the job end?

2. What else you're owed

Your final pay

₱0.00

Unpaid salary₱0.00
Pro-rated 13th month pay₱0.00
Unused leave converted to cash₱0.00
Separation pay (½ month per year, at least 1 month)₱0.00
Total before tax₱0.00

📅 Enter your first and last day of work to see separation and retirement pay.

The rules

  • ✔Your employer must release your final pay within 30 days of your last day, unless a contract or policy is better. Your Certificate of Employment is due within 3 days of asking.
  • ✔Redundancy or labor-saving devices: at least one month's pay per year of service. Retrenchment, closure without serious losses or illness: half a month per year, at least one month.
  • ✔For separation and retirement pay, 6 months or more counts as a full year.
  • ✔Retirement pay (if there's no better company plan): 22.5 days' pay per year of service, at age 60 to 65 with at least 5 years of service.
  • ✔Separation pay for an authorized cause and retirement pay meeting the legal conditions are generally not taxed.

Estimate under the Labor Code, RA 7641 and DOLE Labor Advisory 06-20. Rules last checked: October 2026. Not paid after 30 days? Request assistance through DOLE's SEnA (hotline 1349), which is free. Not legal advice. 🔒 Everything stays on your device.

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Questions people ask

What is included in final pay?+

Unpaid salary, your pro-rated 13th month pay, the cash value of unused service incentive leave (and other convertible leave), and separation or retirement pay if you're entitled, minus valid deductions.

How long can my employer take to release my final pay?+

Within 30 days from your last day, under DOLE Labor Advisory No. 06, Series of 2020, unless your contract or company policy is more favourable.

Do I get separation pay if I resign?+

Not by law. Separation pay is for authorized causes such as redundancy or retrenchment. Your contract, company policy or CBA may still give it.

How is separation pay computed?+

Redundancy: one month's pay per year of service (at least one month). Retrenchment, closure without serious losses or illness: half a month per year (at least one month). Six months or more counts as a full year.

What can I do if my final pay isn't released?+

Write to your employer first. If it's still unpaid, file a free request for assistance with DOLE through SEnA (Single Entry Approach), hotline 1349.

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