Separation pay calculator (DOLE Philippines)
Calculate statutory separation pay under the Philippine Labor Code (Articles 298/299) for retrenchment, redundancy, or business closure. Free.
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DOLE: 6+ months counted as 1 full year
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About this tool
Calculate tax-exempt statutory separation pay under DOLE labor regulations for retrenchment, redundancy, and illness.
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 tax-exempt in the Philippines?
Yes, statutory separation pay received due to authorized causes is 100% exempt from income and withholding tax under BIR regulations.
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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