Final Pay Calculator
DOLE
Add up final pay under DOLE Labor Advisory 06-20, with the nine listed components, the 13th month pro-rated on salary earned, and the 30-day deadline.
This calculator does not carry current agency interest or dividend rates. You enter the rate, so a result is only as current as the figure you typed.
It is an estimate for planning, not an official quotation, and DOLE's own computation is what governs. Confirm the figures before you commit to anything.
Every figure on this page is from DOLE's own published documents.
Last verified 1 source, listed below
Labor Advisory No. 06, Series of 20201. PHGuides is independent and not affiliated with DOLE.
What this calculator does
Labor Advisory No. 06, Series of 2020 defines final pay as the sum of all wages and monetary benefits due an employee regardless of the cause of the termination, and lists nine components. This adds them up.
Two of the nine are arithmetic the advisory itself defines, so the calculator computes them. The other seven are amounts owed under a contract, a company policy, a separate statute or a tax reckoning: the advisory names them but fixes no formula, so you supply the figure.
The nine components
| Component | Source | |
|---|---|---|
| (a) | Unpaid earned salary | you supply |
| (b) | Cash conversion of unused Service Incentive Leave | computed, Article 95 |
| (c) | Cash conversion of other unused vacation, sick or other leave | company policy |
| (d) | Pro-rated 13th month pay | computed, PD 851 |
| (e) | Separation pay | Articles 298-299, if applicable |
| (f) | Retirement pay | Article 302, if applicable |
| (g) | Income tax claim for excess taxes withheld | if applicable |
| (h) | Other compensation under an agreement | if any |
| (i) | Cash bonds or deposits due for return | if any |
The 13th month is pro-rated on salary earned, not on annual salary
The advisory defines it as one-twelfth (1/12) of the total basic salary earned by an employee within the calendar year. The word earned does the work: a partial year is divided by 12, not by the months worked.
| Months worked | Basic salary earned | Pro-rated 13th month |
|---|---|---|
| 3 | ₱66,000.00 | ₱5,500.00 |
| 6 | ₱132,000.00 | ₱11,000.00 |
| 9 | ₱198,000.00 | ₱16,500.00 |
| 12 | ₱264,000.00 | ₱22,000.00 |
Every row is this calculator’s own output at a ₱22,000.00 monthly basic salary. Someone who leaves in month 8 receives ₱14,666.67, not a full month’s pay, and not one eighth of anything.
Unpaid absences come off the salary earned before the division, so ₱8,000.00 of unpaid absences on ₱176,000.00 earned reduces the 13th month from ₱14,666.67 to ₱14,000.00.
A worked example
An employee on ₱22,000.00 a month and a ₱1,000.00 daily rate, leaving after 8 months, with ₱15,000.00 of unpaid salary and 5 unused SIL days:
| Component | Amount |
|---|---|
| Unpaid earned salary | ₱15,000.00 |
| SIL conversion, 5 days × ₱1,000.00 | ₱5,000.00 |
| Pro-rated 13th month | ₱14,666.67 |
| Total | ₱34,666.67 |
Add a redundancy separation pay of ₱120,000.00, a ₱2,500.00 tax refund and a ₱4,000.00 cash bond return and the same employee’s final pay is ₱161,166.67. Separation pay is usually the largest single component when it applies, and it has its own statutory formula in the separation pay calculator.
The two deadlines
| Obligation | Deadline |
|---|---|
| Release of final pay | within thirty (30) days of the date of separation or termination |
| Issuance of a Certificate of Employment | within three (3) days of the request |
The 30 days runs from separation, not from when you ask, and the advisory allows a more favorable company policy or agreement to shorten it, never to lengthen it.
The Certificate of Employment is a separate right on a separate clock, and the advisory is explicit that an employee whose employment is not yet terminated may also request one.
Service incentive leave
Article 95 grants five days of paid service incentive leave a year to an employee who has rendered at least one year of service. Converted at the daily rate, that is worth:
| Daily rate | 3 days | 5 days | 10 days | 15 days |
|---|---|---|---|---|
| ₱600.00 | ₱1,800.00 | ₱3,000.00 | ₱6,000.00 | ₱9,000.00 |
| ₱800.00 | ₱2,400.00 | ₱4,000.00 | ₱8,000.00 | ₱12,000.00 |
| ₱1,000.00 | ₱3,000.00 | ₱5,000.00 | ₱10,000.00 | ₱15,000.00 |
| ₱1,200.00 | ₱3,600.00 | ₱6,000.00 | ₱12,000.00 | ₱18,000.00 |
Every row is this calculator’s own output. Leave carried across several years is where this component stops being small: 15 accumulated days at ₱1,200.00 is ₱18,000.00, more than a month’s pay for that employee.
The calculator takes the days you actually have unused rather than assuming 5, because leave already taken is not convertible. The entitlement itself is covered in the service incentive leave guide.
If the employer does not pay
The advisory routes disputes to conciliation: any issue or claim relating to the payment of final pay or the issuance of a certificate of employment is filed before the nearest DOLE Regional, Provincial or Field Office with jurisdiction over the workplace.
What this calculator does not do
It does not decide whether separation pay or retirement pay is owed to you, and it does not compute either. It does not calculate your tax refund, which depends on your withholding across the year, and it does not know your company’s leave policy.
It also applies regardless of the cause of termination, which is the advisory’s own wording. That means final pay is owed even where separation pay is not, and the two questions should not be confused: the 13th month component in the 13th month pay calculator is due whether you resigned or were dismissed.
The nine components, the 30-day release period and where to file when it does not arrive are covered in the final pay guide. The component with its own statutory formula is in the separation pay guide.
Sources
- DOLE | Labor Advisory No. 06, Series of 2020, retrieved