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.
Hi sir . Pano po ung sken ,june 2014 aq nagstart nagend of contract po aq ng may 2016 .pero everi dec.po nakakakuha aq ng 13th month pay.pde niu po bang compute magkano ung mkukuha qng backpay? Gang ngaun po kc hnd binibigay
Good day sir what if they forces me to resign and theres no ground i mean its illegal can i still entitled to length of service? My salary is minimum and im 3 yrs in service as line cook in hotel.
hi sir,
good day! hope GOD give you a good health in everyday of your life as you’re helping a lot of people here! enlightening our minds. I wanna ask advise from you sana, I worked with this company (call center company) for close to 5 years, and got terminated for just cause. without any HR hearing made. they send me my back pay with the following details.
EARNINGS
CTL LEAP INCENTIVE PROGRAM 1,434.99
(QWE-D007) CTL OVERTIME INCENT 100.00
Non-taxable 13th mo. 2,896.57
Tax Refund 2016 3,535.63
Gross pay 7,967.19
NOTE: CTL is the account where I workd
my question po, is eto lang po ba talaga ang matatanggap ko for the number of years I served them?
please enlighten me, I feel sooooo broke, I feel I wasted my life with them
GOD BLESS YOU ALWAYS!!!
LRC
If you meet an accident, is the company will pay you on length of service?
I mean if an employee meet an accident and he dies, is the company obliged to pay his length of service?
To all voluntarily resgined employee assking if they claim separation pay also known as “back 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. (Philippine Labor Code)
“Resignation is defined as the voluntary act of an employee who finds himself in a situation where he believes that personal reasons cannot be sacrificed in favor of the exigency of the service and he has no other choice but to disassociate himself from his employment.” (Virgen Shipping Corp. vs. Barraquio, G.R. No. 178127, April 16, 2009 citing Valdez vs. NLRC.) by Atty Persida Acosta
Sir ask ko lang po…sa pag compute ng separation fee kahit ang employee ay nag file ng sick leave and maternity leave ibabawas ba yun sa year of service kahit months lang po?
hi! can i just ask a little help… im handling a case for my new boss… a complaint was failed by former employees which was already been paid separation pay etc… the old company was officially closed dec 2016. the main reason is the old employees was harrasing the business and was anymore doing there duties so the owner decide to close the company and he settled all required payments with them. can the old employees still file a complaint with SENA? thanks!… my boss is a Korean
Paki tulungan po ako sa pag compute ng separation pay ko nag start po ako ng feb.12,2016 tinerminate po ako ng feb.4,2017 magkano po dapat kong makuha
Magandang araw po
Sir/mam
Tatanung ko lng po kubg panu computation nang back pay or separation pay.
Kasi po i hired in my last job
Nung July 2014
And nag end po siya nitong april 2017
Naka 2 years and 8months po ako
Ang binigay lang po saakin 5, 300 anu po kaya yun kasi dko po maintindhan ang nangyari salamat po..
Hi! Magbabago po daw ng cycle ang company namin kaya po force termination po kameng lahat pero babayaran naman daw po kami since day 1 ng ipinasok namin. Tanong ko lang po kung magkano po kaya ang makukuha kong seperation pay for working 5yrs and 7mos? Thank you po.
HI,Ive been working in a company for almost 8 years..i started working as a contructual on year march 2008,and my probitionary started may 1,2009.and my regularization started after 6 months so that is Nov 2009.i resign last dec 2017.how much backpay will i recieve? how to Compute?
Bakit ang dami pa ring nagtatanong kung magkano makukuha after resigning? Di ba nga sabi pag nagresign generally speaking not entitled sa separation pay unless may bargaining agreement sa company. Separation pay is only for those terminated ng company… Am I right? Ako nga nagresign 8years at dahil nabasa ko ito nawalan na ako pag-asa mag-expect backpay dahil wala naman sa benefits ko ang backpay.
Hi po! Mag tatanong lang po nag start po ako mag wodk nung June 2016 pero tinerminate po nila ako ng May 31/2017, wala pong sabi sabi, nung araw po na sinabi nila jn sakin un din po ung araw na trrminate na daw ako, please po pa compute naman po ng seperation pay ko, salamat po!
Legal po ba na magkaroon ng deduction of lates and absences sa computaion ng separation pay. Just to make the amount smaller. Kelan ang start ng computation. Since naging regular ka or since u started working.? What would be the computation if i started working last feb 7 2005. End at july 15,2017.
Hi. I think the base for computation is the actual number of hours worked. So if you only worked 6 hours in one day which is supposed to be 8 hours, the 2 hours will not be counted.
good day
tanong ko lng kung may 2016 to june 2017 mag kano po separation pay niya.sa 2016 317 ang rate,tapos sa 2017 340 na ang rate
salamat po
Hi. You may compute according to the formula above. Sorry, I don’t have a calculator with me now. I cannot also give accurate answer to your computation as we may need more details and time to check it. Thank you.
Hi Sir,
Separation pay is applicable for SSS, PHIL, & Pag Ibig contributions. Please clarify.
Regards,
Annu
Hi. Basically, employers’ contributions to SSS, etc are part of employees’ benefits. It is advisable to get a confirmation from the Department of Labor if those employees’ benefits are part of salary or not for the purpose of computing separation pay.
Good day po.8 years na po ngttrabho ung husbnd ko sa isng restaurnt. Kaso po magkclose na po ito.ang comphtation dw po ng seperation nya ay 1/2 of his slary.pero ang gusto po ng boss nya e hnd po ibbgay ng buo. Gusto po nila gwn e monthly 5000. Posible po ang gnon?hnd po ba dpt ibbgay ang seperation ng buo?at hnd installmnt.. sana po mtulungn nyo kmi..mrming slmt po
Hi the computation is “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.”
You have to have consent for the agreement. To protect yourself from unfair compensation, we advise that you seek help from the DOLE or NLRC.
Hi sir, good afternoon.itatanong ko lang po paano e compute ang separation pay? Nag start po ako ng work noong September 11,2017 tapos tinanggal po ako noong January 31,2018 nang hindi ko po matatanggap ang rason dahil hindi po totoo.ano po ang gagawin ko?
Hello. An employee who was terminated due to just causes, like serious misconduct and other causes as enumerated under Article 282 of the Labor Code, is not entitled to Separation Pay. However, if your separation is a questionable one, you should consult with the DOLE or NIRC to know your rights as a worker and determine how you can get justice.
we have employed our maid on a part time basis for approx. 17 years ( 1 day per week) for 16 years she was paid 500 peso for her days work then for last year we paid her 1000 peso for her work. What is her entitlement for severance pay as we are now leaving the country
Hi. I’m not really sure how separation pay works for household employment. However, recent laws have already provided benefits for household employees, such as maid. So to make sure you don’t incur liabilities, it is strongly advice to see consultation from the Department of Labor and Employment. (DOLE).
Sir,
I just want to ask you if I am elligible to get a back pay from my employer.
I was hired last February 8, 2017, and I voluntarily resign on August 31, 2017. Is it possible to receive a back pay from my employer?
Hi, can you clarify your situation further? And what kind of back pay are you trying to get? If you are talking about separation pay, you are basically not entitled to it if your resignation is voluntary.
Hi ask ko lang like us. We never been regular for almost 8yrs and yearly they just renew our contract then finaly mag ko closed n ung opis nmin at mag ooperate nlng sa ibang bansa. Qualified po ba kmi sa seperation pay ? Salamat
Hi Romel,
I think yes, since business closure is one of the valid reasons for employers to pay their employees separation pay. However, you have to make sure that there is an employee-employer relationship or that the contract is an employment contract. You should not also file resignation letter, since voluntary resigned employees are not entitled to separation pay.
Hi Tama ba ang computation nila sa separation pay ko?
Basic rate sila nag base sa computation.
467 ang per day ko pero ang basic rate ko ay 367
Alin ba ang tama sa pag compute jan salamat
Hi. We have to determine if what is the composition of 467 since regular allowances which form part of the regular salary may be included in the computation. To ensure the accuracy of your computation, please seek consultation with the DOLE. Thank you.
What if 15 years na sa company?
1/2 month parin po ba yung computation ng separation pay? or 1 month na?
Thanks!
Take Note: 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.
If your monthly salary is P10,000, then it should be the higher between the following:
1. One month pay = P10,000
2 One-half (1/2) month pay for every year of service: P5,000 x 15 years = P75,000
sir ? what if abandon po ako sa trabaho ko kasi dami kong absent , meron po ba akong makukuhang separation pay ?
Hi. You are not entitled to separation pay if:
1. You have resigned from the company voluntarily
2. You employment was terminated due to the following:
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.
Good day Ma’am/Sir ..
Tanong kulang po if mayroon po ba akong separation pay if abandon ako sa store na pinagtratrabahuan ko if may reresign ako sa agency po namin ?
Hello. Employers are not required to pay separation pay to employees who have voluntarily resigned from their company.
If I rendered 5 years in the company:
– 3 years (Contract)
– 2 years (Regularization)
Is this consider as 5 years count of service rendered?
if current salary is 30k
30,000/2 = 15,000
15,000 x 5 years = 75k ++ 13th month pay?
is this correct po?
thanks in advance po.
Hi. I can’t tell if it’s correct or not since there are other factors to be considered like your actual agreement with your employer. But take note that the separation pay shall be multiplied with the number of years of ACTUAL service. Its computation shall also 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. To make sure, it’s best to consult with DOLE to address your concern.
sir pa compute naman how much is my backpay and seperation pay? the empoyer po ba ay magbibigay pa ng seperation pay even i resigned voluntarily? i started may 2011 and my resignation date is on december 2017, my monthly salary is 13,335.00,how much can i get all in all? thank you
Hello, employers are not required to give you separation pay if you resign voluntarily. However, you may receive separation pay if your employment contract stated that you will be entitled to separation pay even though you resign voluntarily. So check your employment contract. Also, please read the article above.
Hi. Itatanong ko po kng may makukuha ba ako separation pay kasi… basta nlng ako pinauwi at pinaalis ng employer ko dahil nagalit siya at uminit ang ulo.. 17yrs na po Ako sa pinagtatrabahuhan ko na iyon …
Hello. If you are terminated for just causes as enumerated under Article 282 of the Labor code, then you may not be entitled to Separation Pay. If you think your termination is not reasonable and not under due process, then you may visit the National Labor Relations Commission to get some advice.
hi po
nov2010 po ako nag intake then effective date of resignation was aug.31 2017
our basic salary is 9516 a month . b
ung tax ko po ay 13,759.11 bakit po ang laki?
sana po ma tulongan ako..salamat po!
Hello. You may ask for the computation of your income tax withheld together with the BIR Form No. 2316 (Certificate of Compensation Payment / Tax Withheld For Compensation) to check the reasonability of your tax. Your employer is required to give you the certificate if they are withholding income tax from your compensation.
Mam lilipat po Kasi ang boss ko ibang Lugar province na malayo na sa pamilya ko dto ako sa manila na hire kaya magresign na lang ako may makukuha po ba ako na separation pay?
Hi Ariel. I’m afraid employees who are resigning voluntarily are not entitled to separation pay. It will be now up to your employer if he is generous enough to give something after you resign.
Good day sir,
I ask ko lang po minimum wages earner po kasi ako at hindo po ako
nababawasan ng withholding tax …tapos po nag resign po ako at may separation po ako na matatanggap ..kasama po ba sa magiging taxable income ko yong mga kinita ko for the year or yong taxable income ang ang separation pay ko lang?
Hello, exemption of separation pay will depend on the cause of your separation. If you will be separated due to your voluntary resignation, then it will be taxable. Also, employees who voluntary resign are not usually entitled to separation pay – so you have to ask your employer if they will actually provide you separation pay if you will voluntary resign.
Separation pay is only exempt from tax if the cause of separation from employment is due to death, sickness or other physically disability or any other causes beyond employee’s control.
Now, since you’re a minimum wage earner, you might not have actually income tax payable at the end of the year – so see to it that your income tax is properly computed.
Good day,
How about separation pay acquired from the previous employer due to constructive dismissal case, is it taxable?
Hello, the general rule is that separation pay received by an employee because of death, sickness, or other physical disability, or for any “cause beyond the control of the employee”, is exempt from income tax, and consequently from withholding tax. The separation pay acquired due to constructive dismissal may not be ‘beyond the control’ of the employee, thus I’m not sure if it’s taxable or not. Hence, it would be better if you seek a ruling for your case from the BIR to ensure proper treatment.
hi po tanong ko lang po paano ko malalaman yung separation pay o back pay ko po basic ko po ay nasa 17,200 11 months na po ako sa current company ko at magrerender ako for 30 days sa pagrender ko po it will be counted sa makukuha kong separation pay o back pay? salamat po in advance
Hello. Take note that if you’re planning to tender for voluntary resignation, you may not be eligible to receive separation pay. Generally, employers are not required to pay separation pay to employees who have resigned voluntarily except when it is stipulated in his employment contract or collective bargaining agreement, or such is an established practice or policy of the company. Please read the article to learn who are those employees who are entitled for the separation pay.
Paano po kapag 1 year and 5 months?
One month = 9969.50
1/2 per every year of service = 1/2 x 9969.50 x 1 year = 4,984.75
Paano po iccompute yung 5 months? Hindi na po ba kasali?
Please advise.
Salamat!
Hello. A fraction of at least six (6) months shall be considered one (1) whole year. But a fraction of 5 months can be considered 1/2 x 9969.50 x 5/12 year. Please consult the labor department to make sure. Also take note that if your separation is due to voluntary resignation, you may not be entitled to separation pay.
Im already 17 years in the company , with 1.3% for every year of service in my retirement benefit. Assuming my employer offered for early retirement for 1. % for every year of service, will that be on top of my existing of 1.3%? Another question, early retirement is considered tax free by law?
Thanks
Hi. There are minimum requirements under Section 32(B)(6)(a) of the Tax Code for the retirement plan to be exempted from income tax. These are: (1) The retiring official or employee has been in the service of the same employer for at least 10 years; (2) The retiring official or employee is not less than 50 years of age at the time of his retirement. (3) The retiring official or employee should not have previously availed of the privilege under the retirement benefit plan of the same or another employer. Also, you have to know what type of retirement plan your employer has, since the tax exemption may also depend on the type of the plan.
Sir tanung kulang po na terminate po ako dahil sa pag maga ng aking paa. Kaya po naka pasok lang ako ng 9days. nag process na po ako ng backpay ko salary ko po 21k permonth bi weekly sweldo 1st tme ko po kc sa BPO. pwede po ba paki explain sa akin anong process ng pag compute. date hired december 13,2017 date started december 18 2017-termination date january 5 2018.
paxenxa po sa tanung ko.
thankyou po.
gud pm .ask ko lng po regular employee po ako .
bali 3years nko as a regular.
mag papalit n ng pangalan ang kompanya n aking pinapasukan at ng bigay n ng notice of termination dev 29.2017 at last day n nmin jan 29.2018.
ang sbi mag close n ang kompanya.pero magpapalit lng ng pangalan .
anu po b ang mga makukuha ko as aregular . panu po ba ang computation.
sa isang taon po ba magkanu.
ang latest ko n pirmahan ko s contract sahod 14.935 nov 2016.
at di n po ako magpapa absorb skanila gusto ko n bayaran nalang nila ako.
anu po mga makukuha ko separation pay at anu pa po salamat
4yrs na po ako sa company at natapos ko na po ang kontrata na pinirmahan ko…… tanong kp lang po sana if may makukuha ba kong separation or backpay….salamat….
Dear maam/sir
ask ko lan po. Pag hawak po ba ng agency or cooperativa nila na tinatawag?
Ang makukuha ko lang po ba na backpay is yung hinuhulogan ko lang kada cut off?
Sample po.
200 hulog
X12 months
=2400
Yan po ba ang backpay?
Hello. Firstly, what is the reason for your separation from your employer? Backpay is the amount of salary and other benefits that an employee claims that he or she is owed after a wrongful termination. It is usually computed from the date of termination to the date a claim was finalized or judgment was rendered.
We also need to determine what is the 200 you are contributing to the company, as there are many contributions like SSS, Pag-Ibig and Philhealth.
Also, if you are talking about separation pay, employees who voluntarily resigned or have been terminated due to serious misconduct and other reasons as stated in the article, may not be entitled to it.
1 have worked 4 years and 4 mos. I was aiming for the company’s 5yr retirement bonus. I understand that i wont qualify anymore. just want to ask if by “prorated years of service” means that my backpay would be computed 1/2 x 4 years OR just 1month salary and unused leaves. im worried /disheartened if its the second one
Hello, first of all, an employee who voluntarily resigned is usually not entitled to separation pay, unless there is an agreement with your employer. If you are separated due to the reasons enumerated in the article above that may entitle you to a separation pay, then whichever is higher on your computation will be awarded to you. Backpay may only occur when the termination is wrongful.
talaga bang pag resign ang makukuha lang ay (leave credits+13 month pay+tax refund+last salary if applicable)?? what if i resigned due to health issue?? hindi pdn b aq entitled for seperation pay??
Hello, did you voluntary resigned due to healthy issue or did your employer terminate your employment due to health issue? If that is the latter then Article 284 of the Labor Code will apply. According to Art. 284 of the Labor Code, 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.
Tanong lang po if naterminate by misconduct due to late po and I’ve been in there company for 3 years am i still entitled for separation pay, also its been three months and i haven’t got my last salary + 13month pay. I was terminated last Nov 2017
Hello. An employee terminated for just causes as enumerated under Article 282 of the Labor Code (please see article above) is not entitled to separation pay. In your case, it still needs to be proven. Your 13th month pay for 2017 should have been paid on or before December 24 last year since it is the deadline for employers to pay 13th month pay. Also the purpose of 13th month pay is to give employees a cash benefit they can use during the Holidays.
Good morning sir, ask ko lang po sana kasi po 3 years and 8 months na po ako sa work ko then ang company namin were totally closing this march 2017..my salary is 11,200 per month..magkano po ba ang dapat kung makuha na separation galing sa kompanya sa loob ng 3 years and 8 months for service at kung meron paba akong makukuha na additional 13th month..iba po kasi ang cumputation nila kaya gusto ko malaman?thanks and godbless..
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.
The computation of separation pay is usually equivalent to one (1) month pay or at least one-half (1/2) month pay for every year of service, whichever is higher. If your monthly pay is 11,200, then it will usually be 11,200 or 22,400 = (11,200/2 X 4 years), whichever is higher. Your 8 months is considered as one whole year.
13th month pay is computed proportionately – from January to March.
where can we base the monthly salary from the recent ba for example? January 1-31, 20178 if he is going to be laid off for the month of february?
Hello. The computation of separation pay shall be based on the latest or most recent 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.
Sir , mag papacumpute po ako ng separation fee.ng papa ko..34years po sya nagtrabaho.sa company..mula ..nagretire po sya noong January 08 2018 ..maraming salamat po
Hello, how old is your father? Maybe do you mean computation of retirement pay, instead of separation pay? Separation pay is covered by RA No. 7641 – please read https://businesstips.ph/how-to-compute-retirement-pay-in-the-philippines/
Hello. The computation of separation pay shall be based on the latest or most recent 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.
Hi good AM, pls advice, I am a private employee that was hired April 1999. our company has established retirement benefit schedule which depends on the # of years employed.
in my case , if I retire now the rate I am going to have is 180% . Is it computed this way?
1. monthly salary x rate x # of yrs employed?
2. Is it tax free?
Thanks for your assistance.
paano po yung sa akin, sa Results companies po ako nag work recently resigned, immediate po. 18700 po for 3 years ako. Feb 16 2015, ako talaga nahire, per pinalabas nila na Arpil 16 2015 ako na hire pero nalipat lang ako ng account. Resigned last March 11 2018 efectivity. anopong computation, may makukuha po ba ako,
Hi Phebe. Employees who have tendered voluntary resignation are not usually entitled to separation pay, except when it is stipulated in your employment contract or collective bargaining agreement, or such is an established practice or policy of your company. If you tendered a resignation, it is presumed that your resignation is voluntary. Remember that only terminated employees due to the reasons as stated by Articles 283 and 284 of the Labor Code are entitled to a separation pay, unless you qualify for the exemption as I stated earlier.
Hi?? how to compute back pay po if wala pa pong 1 year? for 10 months only. and a month salary is 16k
Hello. Backpay is the amount of salary and other benefits that an employee claims that he or she is owed after a wrongful termination. It is usually computed from the date of termination to the date a claim was finalized or judgment was rendered.
First, we have to know if your separation is due to your voluntary resignation or due to termination. If your separation is due to voluntary resignation, then you are basically not entitled to separation pay or back pay, since they are only entitled to terminated employees as stated in Articles 283 and 284 of the Labor Code .