Final Pay Calculator Philippines 2026
Use this final pay calculator Philippines to estimate your total back pay when you leave a job — unpaid salary, pro-rated 13th month pay, unused leave conversion and separation pay, added up into one figure.
Last updated: June 2026 · DOLE Labor Advisory 06-20 · Labor Code Arts. 95, 298–299 · PD 851
Got your number? Two things worth checking next
→ Separation Pay Calculator — break down just the separation-pay portion in detail
→ 13th Month Pay Calculator — check your pro-rated 13th month on its own
What is final pay (back pay)?
Final pay — often called back pay or last pay — is the sum of everything your employer still owes you when your employment ends, for any reason. Under DOLE Labor Advisory No. 06-20, it must be released within 30 days from the date your employment is severed, unless a more favorable company policy, contract, or collective agreement provides for an earlier release. It bundles together several distinct amounts: any salary you have already earned but not yet been paid, the portion of your 13th month pay you have built up for the year, the cash value of leave credits you never used, and — only in specific cases — separation pay. This calculator adds those pieces into a single estimate so you know roughly what to expect on your last payslip.
How final pay is computed
Each component follows its own rule. Unpaid salary is simply whatever earned wages have not yet been paid out. Pro-rated 13th month pay is your total basic salary earned during the calendar year divided by 12, so if you leave part-way through the year you still get the share you accumulated. Unused Service Incentive Leave (SIL) — the five days of paid leave per year that rank-and-file employees earn after one year of service — is converted to cash at your daily rate when you separate, if you never used it. Separation pay only applies when the law requires it (see below).
For the leave conversion, the calculator derives a daily rate from your monthly salary using the DOLE factor of 365 for monthly-paid employees (daily rate = monthly × 12 ÷ 365). If you are a daily-paid worker, your actual daily rate already applies. The basis for the conversion is your salary rate on the date of conversion, as set out in the DOLE Handbook on Workers' Statutory Monetary Benefits.
Final pay components at a glance
| Component | Who gets it | Basis |
|---|---|---|
| Unpaid salary | Everyone | Earned wages not yet paid |
| Pro-rated 13th month | Rank-and-file | Basic salary earned ÷ 12 |
| Unused SIL conversion | ≥1 year of service | Daily rate × unused days |
| Separation pay | Authorized-cause exits only | ½ or 1 month × years |
When separation pay applies — and taxes
Separation pay is only due when employment ends through an authorized cause under Articles 298–299 of the Labor Code: installation of labor-saving devices and redundancy pay one month per year of service, while retrenchment to prevent losses, closure not due to serious losses, and disease pay one-half month per year. A fraction of at least six months counts as one whole year, and the law guarantees a minimum of one month's pay. If you resign, or you are dismissed for a just cause such as serious misconduct, no separation pay is due unless your contract or CBA grants it. Separation pay received for an authorized-cause termination is exempt from income tax, and the first ₱90,000 of your 13th month pay is also tax-exempt under the TRAIN Law.
Frequently Asked Questions
When should I receive my final pay?
Within 30 days from the date your employment ends, under DOLE Labor Advisory No. 06-20, unless a company policy, contract, or collective agreement sets an earlier release date.
Do I get separation pay if I resign?
No. Separation pay is only required when employment ends through an authorized cause (redundancy, retrenchment, closure, disease, or labor-saving devices). Resignation and just-cause dismissal carry no separation pay unless your contract or CBA provides it.
Is my final pay taxed?
Unpaid salary is taxed like normal wages. The first ₱90,000 of 13th month pay is tax-exempt, and separation pay for an authorized-cause termination is fully exempt from income tax. The cash value of unused leave is generally part of your taxable income, subject to the ₱90,000 combined cap with your 13th month.
How is my unused leave converted to cash?
Unused Service Incentive Leave is paid at your daily rate on the date of conversion. For monthly-paid staff, the daily rate is your monthly salary × 12 ÷ 365. Only leave that is convertible to cash (such as SIL or company leave with a conversion policy) is included.
Related calculators & guides
📋 Rates verified — Official sources: DOLE Handbook on Workers' Statutory Monetary Benefits · DOLE Labor Advisory 06-20 · Labor Code Arts. 95, 298–299 · PD 851 · NIRC Sec. 32(B)(6)(b)
⚠️ This is general information, not financial, tax, or legal advice. KnowMyGovt is an independent service — not affiliated with or endorsed by the SSS, PhilHealth, Pag-IBIG, the BIR, DOLE, or the Philippine government — and is not liable for decisions made in reliance on it.
