DOLE Labor Advisory No. 06-2020

Philippines Final Pay (Backpay) Calculator

Compute your complete backpay estimate — unpaid salary, pro-rated 13th month, unused SIL leave conversion, separation pay, and clearance deductions.

Separation & Salary Details

₱

Computed Daily Rate: ₱1,609.20 / day

10 days
0 days15 days (half-month)31 days
7 months
1 mo6 mos12 mos
5 days
0 days5 days (statutory SIL)30 days
₱

E.g. Company loans, cash advances, unreturned laptop or badges.

+₱11,908.75
₱
Estimated Net Final Pay (Take-Home Backpay)₱56,463.35Mandatory release within 30 calendar days per DOLE LA 06-2020
Unpaid Salary₱16,091.9510 days rendered
Pro-Rated 13th Month₱20,416.677/12 months
Leave Conversion (SIL)₱8,045.985 unused days
Tax Refund (BIR 2316)+₱11,908.75Year-End Annualization

Itemized Final Pay Breakdown

Daily: ₱1,609.20
Earned Unpaid Salary (10 days × ₱1,609.20):+₱16,091.95
Pro-Rated 13th Month Pay (7/12 months):+₱20,416.67
Unused Leave Cash Encashment (5 days):+₱8,045.98
Annualization Tax Refund:+₱11,908.75
Total Net Backpay to Receive:₱56,463.35

DOLE Final Pay & Clearance Rights:

  • 30-Day Mandatory Release: Employers must release your final pay within 30 calendar days from your separation date.
  • Certificate of Employment (COE): Must be issued within 3 business days from your request.
  • Quitclaim & Release: Signing a quitclaim is valid only if the settlement amount is fair and fully paid.

How Final Pay (Backpay) is Computed

Components mandated under DOLE Labor Advisory No. 06-2020 & the Philippine Labor Code

DOLE Final Pay Total Equation

Net Final Pay = (Unpaid Wages + Pro-Rated 13th Month + Unused Leaves + Separation Pay + Tax Refund) − Clearance Deductions
Pillar 1

Unpaid Earned Wages

Earned salary for all days worked from the start of the last payroll cut-off up to your official last day.

Daily Rate × Days Rendered
Pillar 2

Pro-Rated 13th Month

Pro-rated proportion of 13th month pay based on total months rendered in the current calendar year.

(Basic Salary × Months) ÷ 12
Pillar 3

Unused Leaves (SIL)

Cash conversion of accumulated unused Service Incentive Leaves (5 days min) and convertible vacation leaves.

Unused Leave Days × Daily Rate
Pillar 4

Clearance Deductions

Deductions for legitimate accountabilities (e.g. SSS/company loans, unreturned laptop or ID badges).

Total Liabilities Deducted

DOLE Labor Advisory No. 06-2020 Statutory Guidelines

ComponentCalculation BasisStatutory Rule
Unpaid SalaryDays worked × Daily RateEarned wages for actual days rendered before separation date.
Pro-Rated 13th Month(Monthly Basic × Months Worked) ÷ 12Mandatory pro-rated payout for all months rendered in calendar year (PD 851).
Unused Leave (SIL)Unused Days × Daily RateMandatory cash conversion of at least 5 days Service Incentive Leave (Labor Code Art. 95).
Separation Pay0.5 to 1.0 Month Salary per YearRequired for authorized causes (redundancy, retrenchment, closure, disease).
Release Deadline30 Calendar DaysMandatory release timeline under DOLE Labor Advisory No. 06-2020.

Frequently Asked Questions

Everything you need to know about DOLE backpay rules, the 30-day release timeline, certificate of employment, and deductions.

References & Legal Sources

Formulas and rules are based on official DOLE Labor Advisories, the Labor Code of the Philippines, and Presidential Decrees.

  1. 1.
    DOLE Labor Advisory No. 06-2020 — Guidelines on Payment of Final Pay and Issuance of Certificate of Employment

    Department of Labor and Employment (DOLE)

  2. 2.
    Presidential Decree No. 851 — 13th Month Pay Law (Pro-rated for Separated Employees)

    Office of the President / DOLE

  3. 3.
    Labor Code of the Philippines — Article 95 (Service Incentive Leave Encashment)

    Department of Labor and Employment (DOLE)

  4. 4.
    Labor Code of the Philippines — Article 287 (Separation & Retirement Benefits)

    Department of Labor and Employment (DOLE)