Quick answer: your employer must release your final pay within 30 days from your last day, and give your Certificate of Employment (COE) within 3 days of your request, unless your contract or company policy gives you something better. Final pay covers your unpaid salary, prorated 13th month pay, cash for unused leave and any separation pay. Compute yours with the final pay calculator →
This guide covers your rights and the process. For the numbers, open the final pay calculator.
What the 30-day rule says
DOLE Labor Advisory No. 06, Series of 2020 asks employers to release final pay within 30 days from the date of separation or termination, no matter the reason: resignation, end of contract, redundancy, retirement or dismissal. A different period is allowed only if a company policy, employment contract or collective agreement gives a more favorable one. For a resignation, the clock starts on your last day of work, not on the day you submit your resignation letter.
What counts as final pay?
- Unpaid salary up to your last day.
- Prorated 13th month pay. See how it is computed.
- Cash conversion of unused leave (service incentive leave, and company leave if the policy converts it).
- Separation pay or retirement pay, if you are entitled to it.
- Tax refund, if your withholding was too high.
- Other benefits in your contract, a CBA or company policy, such as commissions or pro-rated bonuses.
Deductions are possible for company loans, cash advances and unreturned equipment, but only for amounts you really owe.
Who gets separation pay?
| Reason for leaving | Separation pay |
|---|---|
| Resignation | None, unless company policy gives it |
| Dismissal for just cause | None |
| Redundancy, labor-saving devices | 1 month per year of service (minimum 1 month) |
| Retrenchment, closure not due to serious losses, disease | 1/2 month per year of service (minimum 1 month) |
| Closure due to serious losses | None required |
| Retirement (RA 7641) | 22.5 days per year of service |
A fraction of at least 6 months counts as a full year. The calculator applies this for you.
Clearance: what employers can and cannot do
Most employers require a clearance before releasing final pay: return your ID, laptop, tools and uniforms, and settle any cash advance. The Supreme Court has recognized this as a reasonable practice. But:
- Clearance cannot be used to hold your pay forever or for amounts you do not owe.
- If you return everything and your employer keeps delaying, you have a complaint.
- Your COE does not depend on clearance.
The Certificate of Employment (COE)
You are entitled to a COE showing your dates of employment and positions held, and the employer must issue it within 3 days from your request. It does not need to mention your salary unless you ask for that. Ask for it in writing or by email so you have proof of the date. You need it for your next job, for the SSS unemployment benefit and for loan applications.
Is final pay taxable?
- Separation pay for a cause beyond your control (redundancy, retrenchment, closure, illness) is tax-exempt.
- Your 13th month pay plus other benefits are exempt up to ₱90,000 a year. See is 13th month pay taxable?
- Unpaid salary is taxable compensation and your employer adjusts the withholding.
What to do if your final pay is late
- Check the date. Count 30 days from your last day, and check whether your contract gives a different period.
- Send a written follow-up to HR with your computation (the calculator output helps) and ask for the release date. Keep a copy.
- Finish the clearance items you are responsible for, and keep proof.
- File a request for assistance through SEnA at the nearest DOLE Regional, Provincial or Field Office. SEnA is free and aims to settle the matter within 30 days.
- If conciliation fails, the case can proceed to the NLRC for a money claim. Free legal help is available from DOLE and the Public Attorney’s Office for qualified workers.
Quick example
Rina resigns with a last day of 30 June 2026. Her employer should release her final pay by 30 July 2026. If HR still says “wait for the next payroll” on 1 August and she has finished her clearance, she can file a SEnA request.
Related reading
- Final pay calculator
- Prorated 13th month pay
- SSS unemployment benefit
- SSS salary loan calculator to check any loan balance before you leave
Sources: DOLE Labor Advisory No. 06, Series of 2020 (see DOLE and the Bureau of Working Conditions); Labor Code Arts. 298, 299 and 302 (lawphil.net); DOLE Handbook on Workers’ Statutory Monetary Benefits. Not legal advice. Confirm with DOLE or your HR department.