Philippines separation pay calculator
Calculate statutory separation pay under DOLE Labor Code (Articles 298/299) for retrenchment, redundancy, or disease closures.
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DOLE: 6+ months counted as 1 full year
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About this tool
Calculate statutory separation pay under Articles 298 and 299 of the Philippine Labor Code. Computes exact legal entitlements for retrenchment, business closure, redundancy, or disease with full tax exemption.
How to use it
- 1 Enter your latest monthly basic salary.
- 2 Enter your completed years of service and extra months.
- 3 Select the authorized cause of separation.
Questions
Is separation pay taxable in the Philippines?
No. Statutory separation pay granted due to authorized causes (retrenchment, redundancy, closure, disease) is 100% exempt from Philippine income tax.
How is a fraction of a year counted for separation pay?
Under the DOLE Labor Code, a fraction of at least 6 months is considered as one whole year of service.
Is my data uploaded?
No. This tool runs in your browser, so your text and files never reach our server.
Is this tool free?
Yes. It’s free to use with no sign-up and no limits for normal use.
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