How to compute separation pay in the Philippines according to the Labor Code? Separation, especially when employer-employee relationships are already well-established within the workplace, is one happening that can be heartbreaking. But as the old saying says, “the only permanent thing in this world is change”. People change; people reach the point that they need to take new steps and directions. For this kind of situation, what we can only do is to hope for the best and do the things that are necessary. Thus, employers should take responsibilities and obligations, and give what is lawfully due to their terminated employees. On the other hand, employees, who are terminated or have decided to resign, should know their rights and understand how to exercise them. The following are guidelines on the computation of separation pay.
Who are entitled to separation pay?
Separation pay is given to employees whose services are terminated by their employers for the following reasons as stated by Articles 283 and 284 of the Labor Code as follows:
Art. 283. Closure of establishment and reduction of personnel. The employer may also terminate the employment of any employee due to the installation of labor-saving devices, redundancy, retrenchment to prevent losses or the closing or cessation of operation of the establishment or undertaking unless the closing is for the purpose of circumventing the provisions of this Title, by serving a written notice on the workers and the Ministry of Labor and Employment at least one (1) month before the intended date thereof. In case of termination due to the installation of labor-saving devices or redundancy, the worker affected thereby shall be entitled to a separation pay equivalent to at least his one (1) month pay or to at least one (1) month pay for every year of service, whichever is higher. In case of retrenchment to prevent losses and in cases of closures or cessation of operations of establishment or undertaking not due to serious business losses or financial reverses, the separation pay shall be equivalent to one (1) month pay or at least one-half (1/2) month pay for every year of service, whichever is higher. A fraction of at least six (6) months shall be considered one (1) whole year.
Art. 284. Disease as ground for termination. An employer may terminate the services of an employee who has been found to be suffering from any disease and whose continued employment is prohibited by law or is prejudicial to his health as well as to the health of his co-employees: Provided, That he is paid separation pay equivalent to at least one (1) month salary or to one-half (1/2) month salary for every year of service, whichever is greater, a fraction of at least six (6) months being considered as one (1) whole year.
Who are not entitled to separation pay?
An employee may also be terminated for just causes as enumerated below under Article 282 of the Labor Code. Generally, employees falling under this article are not entitled to separation pay.
Art. 282. Termination by employer. An employer may terminate an employment for any of the following causes:
a. Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work;
b. Gross and habitual neglect by the employee of his duties;
c. Fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized representative;
d. Commission of a crime or offense by the employee against the person of his employer or any immediate member of his family or his duly authorized representatives; and
e. Other causes analogous to the foregoing.
Are employees who voluntarily resign entitled to separation pay?
Generally, an employee who resigns is not entitled to separation pay except when it is stipulated in his employment contract or collective bargaining agreement, or such is an established practice or policy of the company. An employee resignation is presumed to be voluntary.
Is separation pay taxable?
Under Section 32(B)(6)(b) of the 1997 Tax Code, any amount received by an official or employee or by his heirs from the employer as a consequence of separation of such official or employee from the service of the employer due to death, sickness or other physical disability or for any cause beyond the control of the said official or employee is exempt from taxes regardless of age or length of service. The phrase “for any cause beyond the control of the said official or employee” in effect connotes involuntariness on the part of the official or employee. The separation from the service of the official or employee must not be of his own making. (Sec 4(f). Revenue Regulations No 1-68; Sec 2(b)(2), Rev. Regs. No 6-82, as amended). Therefore, separation pay under the foregoing ruling shall not be subject to income tax and consequently to withholding tax.
Other notes in computing Separation Pay
The amount of the separation pay shall be multiplied with the number of years of actual service. In computing the length of service, a fraction of at least six (6) months is considered as one (1) whole year. The computation of separation pay shall be based on the latest salary rate, unless the same was reduced by the employer to defeat the intention of the Labor Code, in which case, the separation pay shall be based on the rate before the deduction.
Disclaimer: New and subsequent issuances, rulings, or laws may cause the whole or part of the article inaccurate or obsolete. It is advised to make inquiries with the Department of Labor and Employment for more information.
Victorino Q. Abrugar is a marketing strategist and business consultant from Tacloban City, Philippines. Vic has been in the online marketing industry for more than 7 years, practicing problogging, web development, content marketing, SEO, social media marketing, and consulting.
dear sir just want to ask a favor if you could please compute my backpay i started last july 2012, and the effectivity of my resignation will be on June 310 2012, i resign voluntarily. my basic gross pay is 25000 a month. i am married with 1 dependent, suppose to be 2 but i have not yet updated my latest dependent on BIR.
could you please atleast give me an estimate. am i entitled for a tax refund since i did not finish the year here in my company? thanks and more power
Started JUly 2012 and resigned on June 2012?
Hello sir/ma’am,
May itatanung lang po ako kung saan mo magstart ng compute sa lenght of service sa date hired or date of regularization? Kc po ngresign po aq sa work ko ang date hired ko po ay aug. 08, 2007 then yung date of regularization ko po ay jan. 01, 2011 nagresign feb. 10, 2017 ngaun po ang computation ng lenght of service ko n kinompute nla ay date of regularization. Tama po b na date of regularization ang start ng lenght of service ko? Wla n po ba akong chance n maitama yung computation nla.. i hope n mkakuha ako ng tamang kaalaman sa problema ko kc marami po aqng mga ksamahan na ganito ang gnawa nla pero yung ibang ngresign na nkausap nmin date of hire ang compute sa knila sila ung nlaban sa management nmin. Ang problema ko lng po kasi nand2 n aq sa taiwan d ko na po mpuntahn yung company nmin after 3 yrs pa kung sakali.. maraming salamat po sa inyong response.
Jovelyn
Date hired.
Good Afternoon Sir, asko k lang po sana kung pano i compute ang separation pay namin. Nawork po ako sa company Aug 1997 tapos ngayong Dec 2018 magsasara na ang kumpanya namin. Meron po ba ibang computation sa 1/2 month salary para sa over 20 years na sa company.
Salamat po
dear sir i just may i request if you could please compute my backpay i started last September 10,2010, and the effectivity of my resignation will be on Nov. 16,2012.
i resign voluntarily. my basic gross pay is 9800 a month. could you please give me an estimated Backpay? thanks and best regards
“At least one month or 1/2 month for every year of service?”
The phrase “at least one month salary or 1/2 month salary for every year of service, whichever is higher”, can be quite confusing. It simply means that the employee is entitled whichever is higher of the employee’s:
1.one month salary; or
2.1/2 month salary for every year of service.
Example: If the retrenched employee’s salary is P8,000, and he has been working for 3 years, he is entitled to separation pay equivalent to whichever is higher of his:
1.one month salary = P8,000; or
2.1/2 month salary for every year of service = (1/2) x P8,000 x 3 years = P12,000.
In the above example, the employee is entitled to P12,000, the higher amount.
Following the same rule, if the length of service is only one year, his separation would be whichever is higher of the following:
1.one month salary = P8,000; or
2.1/2 month salary for every year of service = (1/2) x P8,000 x 1 year = P4,000.
Here, separation pay is P8,000 or one month salary, the higher amount. Actually, we will arrive at the same result even if the length of service is only 10 months or 7 1/2 months, etc., as long as it is 6 months or more. This is because a fraction of at least 6-months is considered as 1 whole year.
Now, what if the employee has served for less than 6 months, how much separation pay will he get? Let’s see.
1.one month salary = P8,000; or
2.1/2 month salary for every year of service = (1/2) x P8,000 x 0 year = 0.
So, it’s still P8,000 or one month salary.
Hi sir,
panu po pag may butal example panu icocompute kung ang length of service nya lang ay 1 year and 3 months
1 year lang. pag umabot 6 months and butal, considered another year.
If an employee has actual service years of 3.75,do you round up to 4 years as per Art 283?
isn’t “half-month pay” to be interpreted as 22.5 days? (e.g. 15 days + 5 days SIL + 1/12 of the 13th month).
it’s a common error to treat “half-month” as basically 1/2. You’d be giving separated employees lesser than what’s ought to be given them.
greetings..
may i ask if my calculation is right?
work = call center agent
latest salary = 25k
date of hired, till last day on work = 6yrs and 7months
12.5 x 7 = 87.5(non taxable?)
kindly pls check..
thank you!
correct
Problem solve. Clear as crystal. Thanks for this reply ( E.R ).
Backpay is your last pacy check plus 13th month pay, ITR and convertible leave credits. Di ka makakakuha ng separation pay dahil voluntary resignation ka. Orayt?
Hi Sir, ask lang.. the same lang po ba ang separation pay and backpay? ippa-forced resignation po kasi ako sa employer ko, monthly salary ko po is 10k before hanggang sa naging 13k nung january 2018. How much po ba makukuha ko for separtion pay?
Dear sir,may i request if you could please compute my backpay i started last September 10,2010, and the effectivity of my resignation will be on Nov. 16,2012.
i resign voluntarily. my basic gross pay is 9800 a month. could you please give me an estimated Backpay? thanks and best regards
Dear Sir,
Im an IT, I resigned to my current company. they gave me a tasks until my very last day and i have even extend 1day to just finish it. If ever they have found minor bugs in my work will they have the right to not sign my clearance and hold my last pay?
yes. yes they can.
Dear Sir,
I am contractual employee.I received Tax refund this January 2013 amount of Php 8, 068.98..i this computation correct? I started March 1, 2012 and may total gross is Php 155, 491.87. total w/tax 9,997.75, total 13th month pay 9,550.00, total sss 3, 716.70, total pag-ibig 800.00 total Phic 1,687.50…and i have 4 children (M4)… please advise if i received correct tax refund. thank you very much.
hi sir, can u compute my separation pay i hired last sept 2 2011 and i will voluntary resign last march 30 2013 thanks
you won’t have any. Resigned ka eh.
pano kung ang problem ay hold xa. tas ngOk na ung problem..masasama pb ung days na hold xa sa seperation pay. at pno xa macocompute???
Hello potchie12 . What do you mean he/she is held? If the employee has voluntarily resigned, he/she is basically not entitled to a separation pay. Can you tell more about your situation?
Thank you.
SIR/MAM,
Good afternoon.
My husband was employed 13 years as salesman.He was terminated because he did not remit to office
collection of some accounts receivable by office.1. Is he entitled of separation pay? can he claim? 2. His salary was below minimum, can he file complain?
Thanks.
Nope. Walang backpay si darling. negligence of duty yon and theft. if he signed a contract, nope. walang complaint na pwede.
Sir Vic,
here is the situation, the company (restaurant) was opened in 2010. since its opening, the resto did not earn any income and closed last jun 2, 2013. the company dismissed the 8 employees w/o paying the last 5-7 days of their salaries. w/out the president/owners knowledge I issued certificates of employments to all the employees. I am only acting as a supervisor, and signed the certificate as “ACTING RESTAURANT SUPERVISOR”. the dismissed employees decided to file a case against the owner using the certificate I issued. what is the liability of the owner aside from the 5-7 days unpaid salary? are the dismissed employees entitled to separation pay? the employees salaries are below minimum wage, no SSS and other benefits.
Thank you.
paz
hi sir.. in case the employee has resigned.. is it right to still deduct the sss, pag ibig, philhealth and withholding taxes from their last pay?
Good day!
Sir;
I would just like to ask if am i entitled for separation pay? it is a voluntary resignation. I started working in our company last May 26, 2007 and the effectiveness of my resignation is on December 1, 2013 also I didn’t receive any tax refund from the company even they deducted tax from my salary monthly. It’s just ended this year as I gave birth on my 1st baby. hope for your response. It would be highly appreciated. Thank you..
itatanong ko lang po kung may makukuha ang asawa ko ng seperation pay sa kanilang company, nag voluntary resign po sya 6yrs po syang nagtrabaho doon. inaasahan ko po ang inying tugon sa aking katanungan ipadala nalang po ninyo ang inyong tugon sa aking email… maraming salamat po sa pag basa ninyo!!!!!
Wala. Voluntary resignation po eh.
Sir pa help po. Mach 2013 start work ko 20,000 salary until june 2018.mgkano po mkuha ko separation pay?thank u po
Healthy Day!
Sir may I request in your good consideration to please compute my separation pay I work from February 2010 to Dec 2012. And I have a total of 10 Unused Vacation leave and sick leave.
Wishing for your kind consideration to help me.
Thank you and God Bless!
Dear Sir/Mam,
Nais ko po sana magtanong kung pano ang computation ng seperation pay pag daily pay ang sahod Ilang araw po ba ang computation pag sinabing half month pay?
Maaari po bang bigyan mo ako ng sample computation upang macheck ko yung natanggap kong seperation pay. Inaasahan ko po ang malugod nyong tugon sa aking katanungan.Pakipadala po sa email lo ang inyong tugon salamat po
how to compute separation pay for retirement?
Hi Sir/Mam,
Good day.
I just wanted to ask regarding my back pay. I was hired October 2,2013 and will voluntarily resign. May last day at work would be this May 25,2014. My net pay is 11623.96 per month (I already deducted the SSS, PAG-IBIG etc). However, the company declined the employment date that I was hired dated October 2,2013 due to the reason that they (Company) were not yet registered from that month. The company was just registered last January 2014. So therefore the company said that my actual hiring date started January, where in the company was just registered from that month. The company started deducting SSS, PAG-IBIG ect since January too. Can you please help me compute my back pay? Hoping to hear from you soon. Thanks in advance.
Last cut-off pay+convertible leave credits+ITR+pro-rated 13th month pay. That’s it. It’s a voluntary resignation so separation pays would not be given unless otherwise stated in your employment contract.
Hi good day magsasara na po yung company na pinag tatrabahuhan ko, bale 1 year and 3 months na po ako doon, may aasahan po ba dapat ako na seperation pay? Dahil wala naman po silang nababanggit tungkol dito, ano po ba ang maari kong gawin? Thank you and more power !
maghanap na ng company at yes, may separation pay ka.
Sir,
My case is an illegal dismissal by my employer.
I am certain that the termination is without basis and did not follow standard process of procedures as according to Philippine Labor Laws.
I filed my case in NLRC and my employer is trying to settle in amicable settlement during the 1st preliminary meeting. I told them my “demand” for payment of unexpired portion of the contract. They re-set a 2nd conciliatory meeting to submit their counteroffer.
Here are my questions:
1. How much is the reasonable settlement that is considered “fair” for both parties?
2. Can i demand for Moral and Exemplary Damages brought by this bad experience and unfair labor practice by suffering depression and humiliation ?
3. If they made counter offer which is unacceptable, is is wise to pursue the case? and hire a Lawyer/COunsel?
4. How much is normal fees for Legal Counsel to help me on this case?
5. How long will it take us to resolve this kind of case?
Thank you in advance and More power!
Emerson
Hi! In case of a deceased employee but the death didn’t occur during working hours or work related accident, is the employer obliged to give separation pay? Thank you
Hi,
Greetings..
I just wanted to ask about separation pay filing duration.. I was employed from a company, way back year 1997 and was illegally terminated without reason on year 2000. The question is, can i still claim my separation pay today year 2015?
Thank you and more power..
filven
Good am..pls. Compute howmuch backpay can i get… I work for d co. Since jan.20,2003-march 10,2015. My monthly basic is 19740. I voluntary resign from the company. Hoping for your quick response. Thank you
Sir,
I just want to ask what you can advise me in my situation.
I worked in a private company (Contractor) for 2 1/2 years (May 29, 2012 – December 30, 2014), they paid me 20k per month for my service without any benefits. Last January 2015, i decided to step out from the company because i don’t like the new management, but i didn’t send them a letter of resignation for i don’t also have any signed contract with them. am i entitled for a separation pay? or can I file them a case to chase for benefits?
Nope. you’re not employed technically.
Hi Sir,
I just want to ask, how long does it usually take to process a separation pay or back pay?, It’s been more than 100 days when I left my company and I was also done with my clearance Jan.20,2015, but until now i haven’t receive my separation pay . My previous company kept on delaying my last pay or separation pay, they’ve actually providing me incorrect amounts of my last pay check or separation pay, that causes to delay my last pay or separation pay, even my Manager nor my Supervisor was not helping me either, when I asked them they will just inform me to get in touch with the payroll department, but when I spoke with payroll department, they will inform me to contact my Manager or Supervisor for my dispute . I have a strong feeling that there’s something going wrong inside our company, It makes me think that my manager, the payroll department and the finance department has a conspiracy to make illegal money. I never tried to file or to make a legal complain and really don’t know how to start or where to start. Please advise me the steps that I should do 1st. My previous company was Wells Fargo, it is a U.S Bank, it is a big company, to think that there’s corruption or conspiracy going on inside.
May I respectfully inquire if redundancy is solely the prerogative of the employer? Can an employee request for redundancy if circumstances of his/her employment are pointing towards being a floating or unnecessary body? Practically no work is coming my way and I have even been relegated to working from home (2 years), although now, (local) HR says I need to start reporting on site — but my own boss (in the US) is ignoring that directive. Is it illegal for an employee to request for such and then bargain for a larger (say 3x the legal computation)? In my case, after almost 10 years of continuous employment without respect to my position’s need for constant, if not regular skill upgrades — I am now unable to successfully apply at another company of the same position or level of compensation. Sincerely and desperately appreciate your reply/advice.
Pls answer po ask lang ako ngastart po ako sa restaurant na pinagtatrabhuhan ko March 2009 ako nag start At nag close na po yun ngayon lang May 16 2015 bali 6years din po ako ngtrabaho doon as regular cook. ang salary ko po ay minimum 53.25 per hour at 8 hours po pasok ko a day. magkano po ang legal na separation pay na makukuha ko para mat knowledge ako. pls answer po salamat.
hi there. Kindly compute if magkano magiging backpay ko. I was employed for 4 years at my former agency, im earning P21,000 per month how much will be my backpay?
what was the difference in computing backpay and cash bond? im employed for 4 years and every month we are deducted P100 for cash bond. my question is how much cash bond will I get?
HI sir,
I would like to ask, is the computation of lastpay will based on the company policy? Kasi in my case, I resign in a company (Oct 2011 to April 2015) and then length of service ko is 3.5. years. I do have pag-ibig loan and a credit card that was directly deducted on my salary, I was not paid for a half month kasi daw it will be included on my lastpay. when I get my last pay I only received 3+ thousand. My basic salary is 10k. I do have sick leave. They said, they deduct the Pag-ibig loan which is 2.7k and then my credit card fo 1.5k tapos deduct p nla and monthly benefits contribution. In addition, meron pa ako prorated 13th month. Ask lang ako tama lang b ang n receive ko n lastpay? Please enlighten me po.
Hello Sir,
I just want to ask if the employees just like me have to right to demand the computation for the separation pay? My company is closing and have already sent us the 30 days notice. However, we got almost less than 15 working days now and still they don’t want to tell us the computation of our separation pay. Is there any law regarding that? so that we can demand. The company want to give the computations on the day that they give us the separation pay. If there are any discrepancies on it, we cannot chase them anymore for the company is already closed by that time.
Thank you
hi sir,
Hi sirwhat if 5months lang , tpos company nag end ng contract, pero 6months pinirmahan na contract. Pano po cocomputin back pay nun. Thanks
dear sir,
greetings of peace! i<ve been in this institution from june 8,1994-2015. i would like to ask a favor from you to please compute my 21 yrs in service if ever i resign or can i claim of the whole amount?my salary is 18,000/month.
thank you and God bless
Good evening! I want to ask if legal po ba na magdeduct Ang payroll Sa separation pay if may naoverlook sila na advance payment Sa employees nila. It’s hard to remember po if may nareceive Kami na advance payment because it’s already 2 years ago. And legal po ba na after 8 months pa po Nila naibgay Yung separation pay with lots of deductions . I hope you can help me
Dear Sir,
i was retrenched last January 5,2016 and effective Feb 5,2016.
I started last October 31,2013 sir and per our HR computation is 1/2 month/year of service. Isn’t it shud be sir 1month/year? my salary is Php9,400..
may i seek your k ind assistance sir how much it will cost for my separation fee?
Hoping for your kind help on this.
Thank you
Sir,
Pwede po ba ako makuha ng seperation pay kahit na voluntarily resign aq.. hired po aq last april 2 2007. effectivity ng resignation ko feb. 20, 2016. if makakakuha magkano po.. basic ko ngaun 19k lang.
thank you.
Sir,
I’ m not sure if this is related to your topic. I just wanted to know, if a department of a company go to a process of spin off , wherein this department will go stand alone and change it’s name. Should the employees get paid? What would be the computation for this?
Dear Sir,
I am Fransisco Tan, I work as a care taker in a 7.5 hectare land with a salary of php 100/day since 2000. Now my employer terminate me for incapability of giving me salary every month. My question sir is this, how much is my separation pay from them, and is it possible for me to get the payment from the difference of minimum wage and my fixed salary rate? What will be the bases for my separation pay computation? Is it the minimum wage when I started or the minimum now that I was being terminated? Thank you sir in advance for your answer.
HI Sir,
I’m a regular employee in a private company for 7months now. I am entitled with 15 sick and 15 vacation leaves. When I resign, can I file those days (total of 30) as leave so I don’t need to render 30days anymore?
Hi, i need someone who can help me regarding my last pay. I was hired in a BPO industry and my basic pay is P12,500 last July 6, 2015 and ended last January 5, 2016. Regarding to my problem, i was wondering my last pay was only P1342.65 . Have i receive the exact amount that i should receive for my last pay ?
-Thanks
I can’t figure how they arrive in the computation of P1342.65 but if you were referring to Last Pay as the (13th month Pay) you should at least receive an average of P6250 for your total service of 6mons from Jul 6, 2015 to Jan. 05, 2016. but probably, the company already given the first 5 mons of that 13th month before the year end which is December, it is most probably amounting to P5,208.33 that you get from them before year end and the remaining 1 mon. was given to you after the termination of your work (Jan. 05, 2016)which is P 1,041.66. these computation is just Basic Pay if you have any night differential Pay or Overtime pay the computation will be added to the basic pay that will give you a bit higher on the last PAY.
sir, good day.. pa help compute naman please…monthly salary is 17,000(not yet deducted from Phil healt,pag.ibig,et) , i served in the company 3 years… how much should i get in my separation pay?
Dear Sir, Mam
I am foreigner, worked for one company in 3 years, entitled to get separation pay for 3 years
My cash compensation is 65,000 peso that is summarized by Basic Salary 34,500 and Basket Allowance 7,800, Language Allowance 20,000 and Variable Pay 2,700. How much would I get according to Labor Code of Philippines, The pay is cover all or just for basic salary only.
Please reply.
Good day.
8years na po kaming nagttrabaho pero under agency po.
Kung sakaling tangalin kami Gusto lang po namin malaman kung mkakakuha po kami ng separation pay Sa company pinapasukan namin.
Thank you.
Good day! Ask ko lang po. Re-hire aq s current company q, I work in a BPO and currently with a different account, I first served the company back in Dec 2013 and resigned in Dec 2014, ngresign aq dahil na disclosed ng dti kong mga superiors ko yung medical files q, nagkaron aq ng maselan na operation kaya nirequest q na maging confidential yung medical condition q. Nagfile aq ng immediate resignation dahil wala silang resolution na naging favorable sa end ko. Inaccept nila ung resignation ko and provided me a clearang notification stating n cleared na ako sa company pero after nung waiting period na 45 days to get what I’m expecting, sabi nila hinold daw nila yung final pay ko. Tama po ba na ihild nila yung final pay ko or separation pay ko since it was not in my intention to resign since kasalanan ng opisina na nadisclosed nila medical file ko? I hope for your reply. Thank you in advance!
good afternoon admin,
thank you for your very informative articles regarding on the withholding tax computation, i also print the tax table so that i have a reference on every salary computation, it is a great help for me to understand the details of computation..can i asked what are the privileged of a resigned employee? aside from 13th month pay computation, is there any other benefit entitled like back pay (length of service / separation pay)
Good day!! Last April 15, 2016 nag effect po ang resignation ko sa kumpanyang pinapasukan ko 23years po ako sa serbisyo nag resigned po ako dahil sa may sakit ako na accute gouty arthritis 42yrs. Old na po ako ngayon pinag submit po ako ng personnel namin ng lahat ng medical records at certification galing sa duktor ko Mag two months na po ako naghihintay kung may makukuha po ako na separation pay. Paki explain naman po kung ano ang karapatan ko bilang nag resigned dahil sa hirap na ako magtrabaho lalo na kung madalas ako sumpungin ng sakit ko. Ilang buwan po ba dapat ma process and separation pay?
Good day!
Can I ask someone…? I am a promodizer here in divisoria I started April 25,2010 my salary is 200/day and now my salary is 300/day (I have sss,pagibig,Phil. Health) until now I still work here.. my question is if ever I resign in this company until the end of the year because I’m pregnant, are they (company) should give separation pay for me? How much should it be?
With my experience as worker, if you resigned the company will just give you the last pay, meaning the numbers of days you work during that cut off. That’s all. There is no package nothing.
The separation fee is usually if the company decide to end your work because the business is down or what ever reason, Yes only in that case they can give you 1 Month salary per year or work. That’s what I know
Usually, a resigning employees has backwages or backpay (unpaid days of work, pro- rated 13th month pay and tax refund). I would like to ask if the basic pay still has to be deducted by tax? I’m assuming there shouldn’t be, that’s why there’s a tax refund. Thank you.
I have a question which I’m not sure if this was asked to you before, if the employee is terminated due to fraud or offense, is the employee still eligible to receive the TAX REFUND & PRO- RATED 13th MONTH PAY. Reason for me asking is that the tax refund is deducted from previous months’ salaries of the employee within the calendar year and under the tax code of the BIR while the pro-rated 13th month pay is based on the computation of the employees work depending on the months within the calendar year. I believe these 2 are loopholes in the Labor Code of the Philippines which needs to be addressed. Thanks!
Hello Sir,
I’m a regular employee in a private company for 11 YEARS now. I am entitled with 26 days for vacation leaves. I just want to ask if the employees right to demand the computation for the separation pay? My company is already sent us the 30 days notice of termination due to closure pero wala naman akong nakita na nag notice sila sa labor para mag closed. However, we got almost less than 15 working days now and still they don’t want to tell us the computation of our separation pay. Is there any law regarding that? so that we can demand. The company want to give the computations on the day that they give us the separation pay. If there are any discrepancies on it, we cannot chase them anymore.
Thank you
Hello po,
Magtatanong lang po. Kung Bi-monthly po ang nakalagay sa kontratang pinirmahan namin at halimbawa po ang sahod ko ay 15,000 per month, hindi po ba na tama lang na sa 7,500 ang magiging gross pay ko dapat? Ang ginagawang computation kasi ng kumpanya namin, kung sa isang cut-off ay may 10 days kaming ipinasok (dalawa po ang rest days namin sa isang linggo), yun lang ang nagiging basehan ng gross pay namin. Sa halip po na 7,500 dapat ang makuhang gross pay, nagiging 6,896.50 po lamang. Naaayon po ba sa batas ang ganitong computation ng sahod?
Sana makasagot po kayo agad, maraming salamat po.
Sir/ maam, do you mind computing my back separation pay? I was a contractual employee from february 2 til the end of july.. my average monthly salary was 9k i also havent got my 13th month pay because the accountant said that it will be given together with the backpay.. i am single.. 20 years old.. thank you..
good day sir…i have to ask f we have the right to claim our termination pay even we have misconduct in the company like we use the money of the company..im recently work at the lending..