Start with the individual amounts
| Item to check | What to compare |
|---|---|
| Unpaid salary | Last paid period against the days or hours still unpaid. |
| Prorated 13th-month pay | Basic salary earned during the calendar year, less any 13th-month amount already paid. |
| Unused leave | The unused balance and the rule making that leave convertible to cash. |
| Separation or retirement pay | The qualifying reason and the applicable benefit or company plan. |
| Other adjustments | Earned incentives, any applicable tax refund, and explained lawful deductions. |
DOLE identifies these as possible final-pay components. An item belongs in your payment only when it applies to you. Ordinary voluntary resignation does not, by itself, create a right to statutory separation pay.
Example of a final-pay calculation
Final-pay breakdown
In this example, payroll has confirmed the amounts below. The employee has no separation or retirement benefit, and the ₱1,000 deduction is lawful and agreed. Tax adjustments are excluded.
- Unpaid salary
- ₱12,000
- Prorated 13th-month pay
- ₱18,000
- Unused leave payable in cash
- ₱2,400
- Deduction
- −₱1,000
Your amount will depend on your payroll records. If the net payment differs from your calculation, ask payroll to identify the deduction or tax adjustment that accounts for it.
Prepare a reconciliation folder
Keep the statement alongside these records. A single total makes errors harder to find. Ask payroll to show the rate, quantity and amount for each line.
- Your final working date and resignation acceptance or termination notice.
- Payslips, including the last period already paid.
- The year's basic-salary record and any earlier 13th-month payment.
- The leave balance and applicable cash-conversion policy.
- Returned-property receipts and the explanation for each deduction.
Follow up using the separation date
Write down your separation date, the expected release date and any earlier deadline in company policy. The general DOLE period runs from separation or termination. If HR gives a different date, ask for the basis in writing.
Complete the employer's reasonable handover process and retain receipts. If clearance or a disputed deduction is delaying payment, ask for the specific unresolved item and take the records to DOLE for guidance. Avoid assuming either that all deductions are valid or that every clearance dispute has the same answer.
Final pay, separation pay and backwages
People often use "back pay" to mean final pay when leaving a job. Ask what the speaker means. Statutory separation pay concerns qualifying termination, while backwages in an illegal-dismissal dispute concern a separate remedy. A final-pay worksheet should not try to decide an illegal-dismissal claim.
If the payment is overdue, follow up with the itemized amount you dispute. DOLE's published contact for delayed final-pay concerns is Hotline 1349.
Sources
- DOLE: Final pay and COE must be released on timeJanuary 2026 reminder of Labor Advisory 06-20
- DOLE Bureau of Labor Relations: Termination of employmentAuthorized causes and separation pay
General educational information. Eligibility, company agreements and the facts of a dispute can change the answer. This guide has not been reviewed by a Philippine labor lawyer. Ask DOLE or a qualified professional about a contested entitlement.