Separation pay calculator
Find out what the Labor Code requires when employment ends for redundancy, retrenchment, closure, disease, or other causes — with partial years counted the way the law counts them.
Art. 298: At least one month's pay per year of service, or one month's pay, whichever is higher.
Minimum separation pay
₱0.00
- Credited years of service
- 0
- Rate
- 1 month per year
One month's pay × 0 credited years, or one month's pay, whichever is higher. Basis: Labor Code Art. 298.
Planning a redundancy or closure?
Batayan drafts the 30-day notices to the employee and DOLE, and checks each step against the Labor Code.
Try Batayan free for 14 daysGeneral information, not legal or tax advice. Contracts, CBAs, and company policies can grant more; the validity of the dismissal itself is a separate question.
Separation pay rules in the Philippines
Who is entitled to separation pay?
Employees dismissed for an authorized cause: installation of labor-saving devices, redundancy, retrenchment to prevent losses, closure not due to serious losses (Labor Code Art. 298), or disease (Art. 299). Employees dismissed for a just cause, or who resign, are generally not entitled unless a contract, CBA, or company policy grants it.
How much is separation pay?
For redundancy or labor-saving devices: at least one month's pay per year of service, or one month's pay, whichever is higher. For retrenchment, closure not due to serious losses, or disease: one month's pay or half a month's pay per year of service, whichever is higher.
How are partial years counted?
A fraction of at least six months counts as one whole year. Five years and six months of service is treated as six years.
What else is required for an authorized-cause dismissal?
Written notice to the employee and to the DOLE at least 30 days before the intended date of termination (Art. 298), plus good-faith compliance with the legal standards for the cause invoked. Separation pay is part of final pay.