Your last pay after resigning, step by step
Resigning is a big step, and it helps to know exactly what money is still coming to you. The short version: you don’t get separation pay when you resign, but you do keep everything you’ve already earned. Here’s a worked example. You earn ₱20,000 a month, work 5 days a week, started on 1 March 2023, and your last day is 30 November 2026. You have 10 working days not yet paid and 5 unused leave days your company converts to cash.
- Daily rate: ₱20,000 × 12 ÷ 261 working days = ₱919.54. If you work 6 days a week, your company probably uses 313 instead; change it in the calculator.
- Unpaid salary: 10 days × ₱919.54 = ₱9,195.40.
- Pro-rated 13th month: from 1 January to 30 November you earn about ₱219,616.44 in basic salary. Divide by 12: ₱18,301.37. If your payslips show a slightly different total (for example because of unpaid absences), type it into “Basic salary earned this year”.
- Unused leave: 5 days × ₱919.54 = ₱4,597.70. By law you get at least 5 days of service incentive leave a year after one year of service, and unused SIL must be converted to cash.
- Separation pay: none for resignation, unless your contract, CBA or company policy gives it.
Total: ₱32,094.47 before tax. Your 13th month (₱18,301.37) is tax-free because it is under the ₱90,000 ceiling. The unpaid salary and leave conversion (₱13,793.10) are taxable, but at ₱20,000 a month your annual pay is below the ₱250,000 tax-free level, so in most cases there is little or no tax to withhold.
Same dates, other salaries
Resignation, start 1 March 2023, last day 30 November 2026, 10 unpaid days and 5 leave days:
| Monthly salary | Unpaid salary | Pro-rated 13th month | Leave | Total final pay |
|---|---|---|---|---|
| ₱15,000 | ₱6,896.55 | ₱13,726.03 | ₱3,448.28 | ₱24,070.86 |
| ₱18,000 | ₱8,275.86 | ₱16,471.23 | ₱4,137.93 | ₱28,885.02 |
| ₱20,000 | ₱9,195.40 | ₱18,301.37 | ₱4,597.70 | ₱32,094.47 |
| ₱25,000 | ₱11,494.25 | ₱22,876.71 | ₱5,747.13 | ₱40,118.09 |
| ₱30,000 | ₱13,793.10 | ₱27,452.05 | ₱6,896.55 | ₱48,141.70 |
A few friendly tips
- Render your 30 days. The Labor Code asks you to give at least one month’s written notice. Leaving without it can lead to a claim for damages, so try to agree on your last day with HR.
- Finish your clearance early. Return your ID, laptop and other items. Your employer has to release final pay within 30 days from separation, and a quick clearance helps it go smoothly.
- Ask for your Certificate of Employment. It must be issued within 3 days of your request (DOLE Labor Advisory No. 06-2020).
- Check your BIR Form 2316. Your new employer will need it, and any excess tax withheld this year should be refunded with your final pay.
FAQ
How much is my final pay if I resign with a ₱20,000 salary?
With a start date of 1 March 2023, a last day of 30 November 2026, 10 unpaid days and 5 unused leave days, final pay is about ₱32,094.47: ₱9,195.40 unpaid salary, ₱18,301.37 pro-rated 13th month and ₱4,597.70 for leave.
Do I get separation pay if I resign?
No, not by law. Separation pay is for authorized causes like redundancy, retrenchment, closure or disease. Your contract, CBA or company policy may still grant it.
Is my final pay taxable after resigning?
Partly. The pro-rated 13th month (₱18,301.37 here) is tax-free up to ₱90,000. Unpaid salary and leave conversion are taxable compensation, but with a ₱20,000 salary your yearly pay usually stays under the ₱250,000 tax-free level.
Sources (checked 5 November 2026): Labor Code of the Philippines, Arts. 95, 297, 298 and 299 (renumbered, DOLE Department Advisory No. 01-2015); PD 851 and its revised guidelines; DOLE Labor Advisory No. 06, series of 2020 (dole.gov.ph); NIRC Sec. 32(B)(6)(b) and 32(B)(7)(e) as amended by RA 10963 (TRAIN), bir.gov.ph.