Final Pay Calculator

You've resigned. How much is your back pay?

You've rendered your 30 days, returned your laptop, and signed your clearance. Now you're waiting for your final pay, and you want to know if the amount HR gives you is right. Final pay, also called back pay or last pay, is everything your employer still owes you when you leave: the salary you haven't been paid yet, your prorated 13th month, your unused leave, and separation pay if the reason you left calls for it.

This calculator adds those up from your basic salary and your dates. It also tells you the date your final pay should be released. It can't see your payroll records, so treat the result as a figure to check against, not the final word.

How to use the calculator

The result shows each part of your final pay and the release date. Open How each amount was computed to see the math. Reset restores the example.

What's included in your final pay

DOLE Labor Advisory No. 06, series of 2020 defines final pay as all the wages and monetary benefits due to you, whatever the reason your employment ended. It usually includes:

• Unpaid salary for the days you worked up to your last day.
• Prorated 13th month pay for the basic salary you earned this year.
• Cash conversion of unused leave. Unused service incentive leave (SIL) must be paid. Other vacation or sick leave is paid only if your company policy, contract or CBA says so.
• Separation pay, if you were let go for an authorized cause.
• Retirement pay, if you are retiring and qualify.
• Tax refund, if more tax was withheld from you this year than you actually owe.
• Any other benefit promised in your contract, company policy or CBA.

Your employer can subtract what you owe, such as a company loan balance or the value of equipment you didn't return. Ask for an itemized list if you see a deduction you don't recognize.

How final pay is computed

Almost every part starts from your daily rate. For a monthly-paid employee, it comes from your salary and the paid days in a year.

For the 13th month, the calculator counts your basic salary from January 1, or your start date if you joined this year, up to your last day. A partial month counts by calendar days, so 30 days of a 31-day month is 30/31 of your monthly salary. Unpaid absences are taken off at your daily rate. For a month-by-month computation, use the 13th Month Pay Calculator.

Example: resigning after 4 years on ₱20,000 a month

Let's say you started on March 1, 2022 and resigned with October 30, 2026 as your last day. You earn ₱20,000 a month on a Monday-to-Friday schedule. Your last payslip covered up to October 15, so you have 11 unpaid workdays from October 16 to 30. You still have 5 days of SIL.

Because you resigned, there's no separation pay. Your final pay should be released by November 29, 2026. If your position had been declared redundant instead, you would also get 1 month's pay for each year of service. Your 4 years and 7 months count as 5 years, so that's ₱100,000 more, for a total of ₱131,325.55.

The calculator keeps the daily rate unrounded and rounds only the peso results, so your hand math may differ by a centavo.

Do you get separation pay?

Only if your employer ended your employment for an authorized cause under Articles 298 and 299 of the Labor Code. If you resigned, your contract ended, or you were dismissed for a just cause such as serious misconduct, the law doesn't require separation pay. Your contract or company policy might still give it.

A fraction of at least 6 months counts as one whole year. So 4 years and 6 months is 5 years, but 4 years, 5 months and 29 days is still 4. Service is counted from your start date through your last day.

If you're retiring at 60 or older with at least 5 years of service and your company has no better retirement plan, RA 7641 gives at least 22.5 days of pay per year of service. That's 15 days of salary, 5 days of SIL and 2.5 days for the 13th month. The calculator uses your daily rate for this, and the same 6-month rule applies.

When should you receive your final pay?

Within 30 days from the date of separation, under Labor Advisory No. 06-20. Your company can release it sooner if its policy, your contract or a CBA says so. The same advisory requires your Certificate of Employment within 3 days of asking for it, and you can request one even before you leave.

Most companies ask you to finish clearance first, and the Supreme Court has allowed employers to hold final pay while your accountabilities are being settled. So return your company items and get your clearance signed early. If your final pay is late with no clear reason, you can bring it to the DOLE regional or field office that covers your workplace.

Is final pay taxed?

Some of it. Your unpaid salary is taxed like regular pay. Your 13th month and other benefits are tax-free up to ₱90,000 for the year. Monetized unused vacation leave of up to 12 days is also tax-free. Separation pay for causes beyond your control, like redundancy, retrenchment or disease, is exempt from income tax.

Payroll redoes your tax for the whole year when you leave. If too much was withheld, the refund goes into your final pay. If too little was withheld, the balance is deducted. Ask for your BIR Form 2316, because your next employer will need it.

Before you sign the quitclaim

• Ask for the itemized final pay computation, not just the total.
• Check the factor (261, 313 or 365) used for your daily rate.
• Check that the 13th month counts every month up to your last day, less any amount already paid.
• Count your unused leave and ask which types your company converts to cash.
• Ask what each deduction is for.
• If you were let go, check the reason in your notice. It decides your separation pay.

A quitclaim usually says you've received everything owed to you. Read it and compare the amount with your own computation before you sign.

Questions about final pay

Related calculators

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• Undertime Deduction Calculator

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• Weekdays Calculator

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