separation Pay Entitlement
In the Philippines, separation pay is mandatory only when termination is due to **authorized causes** (e.g., redundancy, retrenchment, closure) as defined by the Labor Code and DOLE (Department of Labor and Employment).
One Month vs Half Month Rule
- One-Half (1/2) Month Pay per Year: For retrenchment, closure not due to losses, or disease.
- One (1) Month Pay per Year: For redundancy or installation of labor-SAving devices.
Authentic FAQ (search Console Data)
Do I get separation pay if I resign?
Generally, NO. Voluntary resignation does not entitle an employee to separation pay unless it is provided for in the employment contract or collective bargaining agreement.
What if I am fired for "Just Cause"?
Employees terminated for **just causes** (e.g., serious misconduct, neglect of duty, fraud) are NOT entitled to separation pay.
Calculate Your separation Pay
Use our tool to estimate your pay based on the authorized cause for termination.
Open PH Calculator