Am I entitled to separation pay?
Last updated: 2026-07-11 · Educational content; not legal advice.
Short answer
It depends on WHY you left. Separation pay is generally due when you are terminated for an authorized cause under the Labor Code — installation of labor-saving devices or redundancy (Article 298, equivalent to at least one month pay or one month's pay per year of service, whichever is higher), retrenchment to prevent losses or closure not due to serious losses (at least one month pay or one-half month's pay per year of service, whichever is higher), and disease (Article 299, at least one month pay or one-half month's pay per year of service, whichever is higher). If you resign voluntarily or are dismissed for a just cause (your own serious fault), you are generally NOT entitled to separation pay unless a contract, company policy, or CBA grants it. In these formulas, a fraction of at least six months is counted as one whole year.
Primary sources
Frequently asked
Do I get separation pay if I resign?
Generally no. Voluntary resignation does not by itself entitle you to separation pay under the Labor Code; you get it only if a contract, company policy, or CBA provides for it, or in certain forced-resignation (constructive dismissal) situations.
How is separation pay computed?
For redundancy or labor-saving devices (Art. 298): at least one month pay, or one month's pay for every year of service, whichever is higher. For retrenchment, closure not due to serious losses, or disease (Arts. 298–299): at least one month pay, or one-half month's pay per year of service, whichever is higher. A fraction of at least six months counts as one year.
What if the company closes down?
Closure not due to serious business losses carries separation pay of at least one month or one-half month per year of service, whichever is higher. Where closure is due to proven serious losses, separation pay may not be legally required — but the employer must be able to prove the losses.
Take action
Got a similar problem?
File a complaint and we'll pre-fill BSP, SEC, DTI, and small-claims letters for you.
Boses ng kumakayod — your everyday rights as a Filipino worker on pay and dismissal: when your final/back pay must be released (DOLE Labor Advisory 06-20 — within 30 days of separation), 13th-month pay (PD 851 — 1/12 of your basic salary, on or before December 24), legal vs illegal salary deductions, unpaid wages and overtime, the twin-notice due-process rule before you can be dismissed, just causes vs authorized causes, separation pay, your Certificate of Employment (within 3 days of request), resignation notice, the regional minimum wage set by your RTWPB, and how to file with DOLE (SEnA conciliation first) or the NLRC.