Separation pay and retirement pay under the Philippine Labor Code — the amount depends on the cause of separation.
Figures in PHP. Estimate only.
| Service | Entitlement |
|---|---|
| Redundancy / labour-saving | 1 month pay per year |
| Retrenchment / closure / disease | ½ month pay per year |
| Minimum separation pay | 1 month |
| Retirement (60–65, 5+ yrs) | 22.5 days pay per year |
| Voluntary resignation | Generally none |
Separation pay applies to authorized-cause dismissals, not voluntary resignation. A part-year of 6 months or more counts as a full year. Source: Philippine Labor Code.
For authorized-cause dismissals: one month's pay per year of service for redundancy or labour-saving devices, or half a month per year for retrenchment, closure or disease — with a one-month minimum. A part-year of six months or more counts as one year.
Generally no. Voluntary resignation does not entitle you to separation pay unless your contract or CBA provides it.
For employees aged 60–65 with at least five years of service, retirement pay is 22.5 days of pay per year of service (half-month salary equivalent).
A fraction of at least six months is counted as one whole year.