Philippines Gratuity Calculator
Calculate your end-of-service gratuity for Philippines. Free, accurate calculator based on Philippines labor laws.
Calculate Your Gratuity
Basic salary only (excluding allowances)
About Philippines Gratuity
Philippines gratuity calculation is based on local labor laws and regulations.
Calculation Formula
1 month/year (redundancy) or ½ month/year (retrenchment)
0Philippines separation pay under Labor Code Articles 298-299. Applies to authorized termination causes only.
What is Separation Pay in Philippines?
The Philippines does not have mandatory gratuity as in Gulf countries, but has separation pay requirements under the Labor Code (Articles 298-299, formerly 283-284) for authorized termination causes.
Separation pay is required when employees are terminated due to redundancy, retrenchment, installation of labor-saving devices, business closure (not due to serious losses), or disease that prevents employment.
The formula differs by termination reason: one month salary per year for redundancy/closure, or half month per year for retrenchment/disease. Service of 6+ months in a year counts as a full year.
Final pay (unpaid wages, 13th month, unused SIL) is always due regardless of termination reason. Use our Philippines separation pay calculator to estimate your entitlement.
Philippines Separation Pay Formula
Formula
1 month salary per year (redundancy/closure) or ½ month per year (retrenchment/disease)
- Redundancy / Labor-saving devices / Business closure: 1 month salary × years of service (minimum 1 month)
- Retrenchment / Disease: ½ month salary × years of service (minimum 1 month)
- Service ≥6 months in a year rounds up to full year
- Applies only to authorized termination causes—not resignation or dismissal for just cause
- Use our Philippines separation pay calculator: enter salary, years of service, and termination reason for an instant result.
Minimum service: 0 year
Gratuity Calculation Examples
Example: Philippines Separation Pay – Redundancy (5 Years)
Basic Salary: PHP 30,000/month
Years of Service: 5 years
Calculation:
Redundancy formula: 1 month × 5 years = 5 months. Separation pay = 30,000 × 5 = PHP 150,000
Example: Philippines Separation Pay – Retrenchment (3 Years)
Basic Salary: PHP 25,000/month
Years of Service: 3 years
Calculation:
Retrenchment formula: ½ month × 3 years = 1.5 months. Separation pay = 25,000 × 1.5 = PHP 37,500
Example: Philippines – 3 Years 7 Months (Rounds to 4 Years)
Basic Salary: PHP 20,000/month
Years of Service: 4 years
Calculation:
Service ≥6 months rounds up. 3y 7mo = 4 years. Redundancy: 20,000 × 4 = PHP 80,000. Retrenchment: 20,000 × 0.5 × 4 = PHP 40,000
Tips & Best Practices
📋 Know Your Termination Reason
Separation pay amount depends on why you were terminated. Redundancy/closure gets 1 month per year; retrenchment/disease gets ½ month per year.
💰 Final Pay vs Separation Pay
Final pay (unpaid wages, 13th month, unused leave) is always due. Separation pay is additional and only for authorized causes.