⚖️ Labor Code of the Philippines & RA 7641
Philippines Separation Pay & Retirement Pay Calculator
Compute statutory separation pay under Article 298/299 (Redundancy, Retrenchment, Disease) or Retirement Pay under RA 7641 (22.5 days per service year).
📝 Separation / Retirement Grounds
₱
📊 Statutory Settlement Calculation
Total Separation / Retirement Pay
₱0.00
100% Tax-Exempt under BIR NIRC Sec 32(B)
Legal Credited Service 0 Years
Statutory Pay Formula 1 Month per Year
Primary Separation / Retirement Benefit ₱0.00
Unused SIL Leave Encashment ₱0.00
Daily Equivalent Wage Basis ₱0.00 / day
📊 Statutory Comparative Breakdown Matrix
| Labor / Tax Statutory Metric | Calculated Amount |
|---|---|
| Primary Net Entitlement / Remittance | ₱0.00 |
📌 Philippine Labor Code & Retirement Legal Framework
- Redundancy (Article 298): Requires payment of at least 1 month's salary or 1 month's salary for every year of service, whichever is higher. A fraction of at least 6 months is credited as 1 full year.
- Retrenchment & Closure (Article 298): Requires payment of at least 1 month's salary or 0.5 month's salary for every year of service, whichever is higher.
- RA 7641 Retirement Pay: One-half month salary for retirement is legally defined as: 15 days basic salary + 5 days service incentive leave (SIL) + 1/12 of 13th month pay (2.5 days) = 22.5 days salary per year of service.
- Tax Exemption: Separation pay received by an employee due to death, sickness, or authorized causes beyond employee control is 100% exempt from income tax and withholding tax under Section 32(B)(6)(b) of the National Internal Revenue Code.
MS
Engr. Muhammad Shahzad
Principal Financial Systems Architect & Statutory Compliance Specialist
Lead software and systems architect specializing in high-performance browser computing, algorithmic validation, financial models, and zero-telemetry client-side privacy architecture.