Separation Pay Calculator Philippines
Estimate possible statutory separation pay in the Philippines based on monthly basic salary, credited years of service and the reason for separation.
Calculate my separation payLast reviewed: September 2026. Estimates only; rules and contribution schedules can change.
Estimate your Philippine separation pay
Choose the reason for separation, enter your monthly pay and length of service, and see the statutory estimate.
For authorized causes, the statutory minimum depends on the ground. Labor-saving devices and redundancy generally use the higher of one month pay or one month pay for every year of service. Retrenchment, qualifying closure/cessation, and qualifying disease use the higher of one month pay or one-half month pay for every year of service. A fraction of at least six months is counted as one whole year.
Voluntary resignation and ordinary just-cause termination do not automatically create a statutory separation-pay entitlement. This calculator therefore shows ₱0 for those selections unless a contract, CBA, established practice, court order, or another applicable rule provides otherwise.
This is an estimate, not legal advice. Separation-pay eligibility can depend on facts, notices, due process, contracts, collective bargaining agreements, and the precise legal ground for termination.
How separation pay is estimated
The amount of statutory separation pay depends on why employment ended. Philippine rules use different bases for different authorized causes, so selecting the correct separation reason is essential before applying a salary-and-service formula.
PaycheckPH uses monthly basic salary, credited years of service and the selected reason to produce an estimate. It does not determine whether the employer has legally established the authorized cause or whether a contract, CBA or company policy provides a more favorable amount.
More PaycheckPH calculators
Check the ground before the amount
- Read the termination notice and identify the stated reason: resignation, just cause, redundancy, labor-saving devices, retrenchment, qualifying closure, disease or another situation.
- Check whether the facts meet the legal requirements. This calculator cannot decide that question.
- Check the monthly pay base and credited service, then compare any contract, CBA or more favorable company policy.
Illustrative comparison
At ₱30,000 monthly pay and five years six months of service, the calculator credits six years. For redundancy or labor-saving devices, the example uses the higher of one month or one month per credited year: ₱180,000. For a qualifying retrenchment or closure ground, it uses the higher of one month or half a month per year: ₱90,000. A voluntary resignation selection shows zero statutory separation pay in this tool, though another entitlement may arise under an agreement or applicable rule.
The estimates assume the chosen ground is valid; they do not assess notice, evidence, due process or exceptions. Keep your notice, contract, CBA, payslips and service records. Final pay may include additional amounts regardless of the separation-pay calculation.
Separation Pay Calculator Philippines: frequently asked questions
What is separation pay in the Philippines?
Separation pay is compensation that may be due when employment is terminated for certain authorized causes. Entitlement and the statutory rate depend on the reason employment ends and the rules that apply to the employee.
Do I automatically get separation pay if I resign?
Generally, voluntary resignation does not by itself create statutory separation-pay entitlement. A payment may still arise from a contract, collective bargaining agreement, company policy or a more favorable employer practice.
How is separation pay calculated for redundancy or labor-saving devices?
For the statutory scenarios modeled by the calculator, redundancy or installation of labor-saving devices can use a one-month-pay-per-year-of-service basis, subject to the governing rules and minimums. Enter the correct reason for separation rather than applying one rate to every case.
How is separation pay calculated for retrenchment or closure?
Retrenchment to prevent losses and certain closures can use a different statutory basis from redundancy. The calculator applies the factor associated with the selected reason, but the actual entitlement still depends on whether the legal requirements for that ground are met.
How are partial years of service counted?
For the statutory separation-pay scenarios modeled by PaycheckPH, a fraction of at least six months is counted as one whole year of service. Shorter fractions are not rounded up in the same way.
Is separation pay the same as final pay?
No. Final pay is the broader settlement of amounts still due when employment ends. Separation pay is one possible component of final pay, but only when the employee is entitled to it.
Official references and important note
PaycheckPH provides estimates, not legal, tax or payroll advice. Always verify current rules and schedules with the relevant Philippine government agency and your employer or qualified adviser when needed.
NWPC Workers’ Statutory Monetary Benefits Handbook · DOLE Bureau of Working Conditions