Applies when employment ends due to authorized causes — not for termination due to misconduct (just cause).
Reason for Separation
Your Employment Details
Monthly Basic Pay
₱
Years of Service
#
Fractions of a year ≥ 6 months automatically round up to 1 full year
Breakdown
✓ Tax-Exempt
Separation pay for authorized causes (redundancy, retrenchment, closure, disease) is fully exempt from income tax under NIRC §32(B)(6)(b), regardless of amount.
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Enter your salary and years of service
Your separation pay computation will appear here
What you need to know
✓ There is always a 1-month pay floor — you get at least 1 month's pay even with under 1 year of service (except serious-loss closures)
✓ Based on latest basic monthly salary — excludes OT, allowances, and bonuses unless company policy states otherwise
✓ Employers must give 30 days' written notice to both employee and DOLE
✓ Does NOT apply to resignation or termination for just cause (misconduct, fraud, etc.)