Question 1

What is included in final pay?

Accepted Answer

Final pay, also called back pay or last pay, brings together everything still owed to you when you leave: any salary from your last cutoff that has not been paid, the cash value of your unused leave credits, your prorated 13th month pay for the year, and a year-end tax adjustment. Outstanding company loans or cash advances are deducted from the total.

Question 2

Why is my final pay higher than my normal salary?

Accepted Answer

Usually because of the tax refund. Your monthly withholding tax is charged as if you would earn the same salary for all twelve months of the year. When you leave mid-year, your actual annual income is lower, so the tax that was withheld is more than the tax you really owe. The difference is refunded with your final pay, on top of your prorated 13th month, which is why the amount can be a pleasant surprise.

Question 3

Are SSS, PhilHealth, and Pag-IBIG deducted from final pay?

Accepted Answer

Not from all of it. Your 13th month pay, unused leave conversion, and tax refund are never part of the contribution base, so no SSS, PhilHealth, or Pag-IBIG is taken from them. Only the salary portion can carry contributions, and only if your final month's share was not already deducted from your regular payslips. Contributions are fixed monthly amounts usually taken through normal payroll before you leave, so most people will not see them again on the final pay. The calculator has an option, under the panel, to deduct one month if yours was still outstanding.

Question 4

How is the prorated 13th month computed?

Accepted Answer

It is your basic salary times the number of months you worked this year, divided by 12. If you worked five months before resigning, your 13th month is roughly five twelfths of one month's basic salary, released with your final pay instead of in December.

Question 5

My payroll is semi-monthly. Why was my last regular pay only half?

Accepted Answer

On a semi-monthly scheme you are paid twice a month, so each payout covers one cutoff, roughly half the month. Your last regular payslip covers only the cutoff that had already closed. The days you worked in the next, still-open cutoff are not in that payslip; they are owed to you separately in your final pay as unpaid salary. Pick your pay frequency in the calculator and enter those unpaid days, or tap Fill one full cutoff, so the estimate includes that half.

Question 6

How is unused leave converted to cash?

Accepted Answer

Each unused leave day is paid at your daily rate, which this calculator takes as your monthly salary divided by your working days per month. Company policy varies on which leave types are convertible, so check your handbook or with HR for the exact days that qualify.

Question 7

When should I receive my final pay?

Accepted Answer

Under DOLE Labor Advisory No. 6, series of 2020, final pay should be released within 30 days from the date of separation, unless a more favorable company policy, contract, or agreement applies. Some companies take longer in practice while clearance is completed, which is why a wait of a month or two is common.

Question 8

Is this the exact amount I will receive?

Accepted Answer

It is a close estimate. The tax adjustment here is computed on your regular monthly salary, and the real payslip can differ slightly depending on how your employer handles leave conversion and other benefits during annualization. Treat it as a guide and confirm the final figure with your HR team.

Question 9

Is anything I enter saved or sent anywhere?

Accepted Answer

No. Every calculation runs privately on your device. Nothing you type is stored, tracked, or sent to a server.

Final Pay
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Final PayCalculator

Where the number comes from

Questions people ask

The other calculators

Final Pay
Calculator