0.5 Month Pay per Year of Service
- Retrenchment to prevent losses
- Closure or cessation of operations (not due to bankruptcy)
- Disease / Incurable Illness (Article 299)
- Minimum: 1 full month salary
1.0 Month Pay per Year of Service
- Redundancy of position
- Installation of labor-saving devices / automation
- Impossible reinstatement
- Minimum: 1 full month salary
The 6-Month Fractional Service Rounding Rule
Under the Labor Code, any fractional service of at least six (6) months is rounded up to one (1) whole year. For example, an employee with 3 years and 6 months of service is credited with 4 years of service for separation pay computation.
Compute your final pay with our DOLE Separation Pay Calculator.