Labor calc

Separation pay calculator (Philippines)

Authorized-cause separation pay depends on the ground under Arts. 298–299.

Redundancy / labor-saving

Art. 298: at least 1 month pay per year of service (fraction ≥6 months counts as a year).

Higher of 1 month pay or ½ month pay per year of service.

Art. 299: greater of 1 month or ½ month per year.

Last reviewed November 9, 2026. Laws, rules and Bar Bulletins change; if a source above has been amended or superseded, the official text controls.

Include allowances?

Often disputed — start from basic pay and confirm with counsel.

Serious losses closure?

Art. 298 may provide no separation pay when closure is due to serious losses — proof required.

ocoai?

Deterministic calculator shows the formula lines.

P.D. 851 guidelines: 1/12 of basic salary earned in the calendar year.

Five days SIL after one year of service; commutation and exclusions.

Sec. 84 6% rate and Sec. 86 deductions — confirm consolidated text.