Final pay: due within 30 days of your last day
Resigned, end of contract, or let go — whatever the reason, the money still owed to you has a deadline. DOLE Labor Advisory No. 06, Series of 2020 says the final pay shall be released within thirty (30) days from the date of separation, unless a company policy, individual or collective agreement gives you something better.
Ano ang kasama sa final pay?
The advisory lists what "final pay", "last pay" or "back pay" covers, whatever the cause of separation:
- Unpaid salary you already earned
- Cash conversion of unused Service Incentive Leave (5 days a year after one year of service, Labor Code Art. 95)
- Cash conversion of other unused leaves, if company policy or your contract says so
- Pro-rated 13th month pay (P.D. 851)
- Separation pay or retirement pay, if applicable
- Tax refund for excess tax withheld, if any
- Cash bond or deposit to be returned, and anything else in your contract or CBA
Example: Maria resigned, last day Nov 13
Illustrative example only. Basic pay ₱18,000 a month, salary for Jan–Oct already paid, no 13th month advance yet, 5 unused SIL days. Daily rate used here: ₱18,000 ÷ 22 = ₱818.18 — your company's divisor may differ.
| Item | How | Amount |
|---|---|---|
| Unpaid salary, Nov 2–13 | 10 working days × ₱818.18 | ₱8,181.82 |
| Pro-rated 13th month | (₱180,000.00 + ₱8,181.82) ÷ 12 | ₱15,681.82 |
| Unused SIL, 5 days | 5 × ₱818.18 | ₱4,090.91 |
| Final pay | ₱27,954.55 |
Separation: Friday, November 13, 2026. Thirty days later is Sunday, December 13, 2026 — that is the latest date, so ask HR now which payroll date they will use.
⚠️ Tandaan. The advisory counts the 30 days from the date of separation. It does not say "30 days after clearance". If HR says clearance is not done, ask in writing which item is still pending and who signs it — so the release is not stuck. And the Certificate of Employment has its own, shorter deadline: 3 days from your request.
Checklist kung empleyado ka
- ☐ Write down your separation date and the date 30 days after
- ☐ Ask HR for a written computation of your final pay, item by item
- ☐ Check the pro-rated 13th month and unused leaves against your payslips
- ☐ Return company property and finish clearance steps — with receiving copies
- ☐ Request your COE and BIR Form 2316 in writing
- ☐ Day 31 and still nothing: send a demand letter; next step is the nearest DOLE Regional, Provincial or Field Office
Libre ang demand letter
The letter already cites the 30-day and 3-day rules and has a table for every final pay item — salary, pro-rated 13th month, SIL, tax refund, cash bond. Fill in your dates and amounts, keep a receiving copy.
Open the final pay demand letter →
Legal basis: DOLE Labor Advisory No. 06, Series of 2020 (January 31, 2020), Parts I–IV; Labor Code of the Philippines (P.D. 442), Art. 95; P.D. 851 — lawphil.net.