Last updated: November 9, 2026

Final pay (also called back pay or last pay) is everything an employer still owes you when your employment ends. This guide explains what DOLE Labor Advisory No. 06-20 requires, shows the formula for each component, and gives you a free calculator.

Key Takeaways
  • Final pay is due within 30 days from the date of separation, unless a company policy or agreement gives a shorter period (DOLE Labor Advisory No. 06-20).
  • It covers unpaid salary, pro-rated 13th-month pay, unused service incentive leave, other convertible leave, separation or retirement pay where applicable, excess tax withheld and cash bonds.
  • Pro-rated 13th-month pay is one twelfth of basic salary earned in the calendar year, less any 13th month already paid.
  • Only service incentive leave conversion is set by law. Other leave is paid out only if company policy, contract, CBA or practice allows it.
  • The employer must issue a certificate of employment within 3 days from the employee’s request.

Final Pay Calculator Philippines

Enter the figures from your payroll. Leave a field at 0 if it does not apply.

Earnings
Deductions
Enter the monthly basic salary to see your final pay.
Estimate only. It does not compute withholding tax or contributions on the final payout. Deductions must be lawful and authorized. Not legal advice; confirm details with DOLE or your employer.

Sample Final Pay Computation

Maria earns ₱25,000 a month on a 313-day factor and resigns effective October 15, 2026. She has 11 unpaid working days in October, has worked 9.5 months this year with no 13th month paid yet, has 3 unused service incentive leave days, and owes the company ₱3,000 on a loan.

ComponentComputationAmount
Unpaid salary (Oct 1 to 15)11 days x ₱958.47₱10,543.13
Pro-rated 13th-month pay₱25,000.00 x 9.5 months / 12₱19,791.67
Unused service incentive leave3 days x ₱958.47₱2,875.40
Gross final pay₱33,210.20
Less: company loan balance₱3,000.00
Net final pay₱30,210.20

What Is Included in Final Pay?

  • Unpaid earned salary up to the last day of work.
  • Pro-rated 13th-month pay under PD 851: one twelfth of basic salary earned from January 1 to the last day, less any amount already paid.
  • Service incentive leave (SIL) conversion under Article 95 of the Labor Code for qualified employees: unused days multiplied by the daily rate.
  • Other unused leave, only if company policy, the contract, a CBA or established practice makes it convertible.
  • Separation pay or retirement pay, if legally required or granted by contract, policy or CBA. See our separation pay guide.
  • Excess tax withheld that should be refunded.
  • Cash bonds or deposits held by the employer, and any other agreed compensation.

The 30-Day Rule

Labor Advisory No. 06-20 says final pay must be released within 30 days from the date of separation or termination, unless a more favorable company policy or agreement applies. For a resignation this is usually the effective date after the notice period. The advisory also covers the certificate of employment (COE): the employer must issue it within 3 days from the employee’s request. Commentary on the advisory notes that an employer may hold the release while the employee has genuine pending accountabilities, but that clearance should not become an indefinite excuse. Employers with a clearance policy should build it into the 30 days.

How to Compute Each Component

ComponentFormula
Daily rateMonthly basic salary x 12 / days per year (313, 261 or 365)
Unpaid salaryUnpaid working days x daily rate
Pro-rated 13th monthTotal basic salary earned in the year / 12, less 13th month already paid
SIL conversionUnused SIL days x daily rate
Net final payTotal earnings and refunds less authorized deductions

Use the right daily rate. The minimum for covered employees depends on the region, so for Metro Manila check the NCR minimum wage.

Common Mistakes

  • Forgetting the 13th month for employees who resign before December.
  • Skipping SIL conversion for qualified employees.
  • Counting the clearance period against the employee with no deadline.
  • Deducting unauthorized amounts or amounts that were never agreed in writing.
  • Not issuing the COE within 3 days of the request.

What If Final Pay Is Delayed?

Send a written request to HR first. If it is still unpaid after the 30 days, file a request for assistance at the DOLE Regional, Provincial or Field Office with jurisdiction over your workplace. Disputes usually begin with the Single Entry Approach (SEnA), a conciliation-mediation process. Money claims connected with a dismissal or above the arbiter thresholds go to the NLRC.

Offboarding handled correctly

Asiacruit computes and releases final pay, 13th month and leave conversions on time for every Philippines hire, with or without a local entity.

Explore Employer of Record Philippines

Official sources: DOLE Labor Advisory No. 06-20 (Series of 2020), PD 851 and Article 95 of the Labor Code. Always confirm current rules with the agency before acting.

Frequently Asked Questions

How long does an employer have to release final pay?

Under DOLE Labor Advisory No. 06-20, final pay should be released within 30 days from the date of separation or termination of employment, unless a company policy or agreement provides a shorter period.

What is included in final pay in the Philippines?

Final pay is the total of all wages and monetary benefits due the employee. It generally includes unpaid earned salary, pro-rated 13th-month pay, cash conversion of unused service incentive leave, other leave conversions allowed by company policy or contract, separation or retirement pay where applicable, excess tax withheld, and any cash bonds or deposits owed back.

Is unused vacation leave paid out in final pay?

Unused service incentive leave is convertible to cash under Article 95 of the Labor Code for qualified employees. Other unused vacation or sick leave is paid out only if company policy, the employment contract, a CBA or established practice makes it convertible.

Is the 13th-month pay included when you resign?

Yes, if you earned basic salary during the calendar year. It is pro-rated: one twelfth of the total basic salary earned from January 1 up to your last day, less any 13th-month pay already released.

How soon must the employer issue a certificate of employment?

Within 3 days from the time the employee requests it, according to Labor Advisory No. 06-20. A current employee can request one too.

Where do I complain if my final pay is delayed?

File a request for assistance with the DOLE Regional, Provincial or Field Office that has jurisdiction over your workplace. Disputes usually start with the Single Entry Approach (SEnA), a conciliation-mediation process.

Related: see our BIR Form 2316 guide for how the ₱90,000 exemption and year-end tax adjustment appear on the employee certificate.

Related: need cash before payday? See the SSS salary loan calculator for eligibility, interest and the monthly payment.

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