Separation pay computation strictly relies upon the employee’s absolute latest salary rate under the Labor Code of the Philippines.
What salary rate is used for separation pay computation? Read More »
Regular allowances must be actively integrated into the basic salary base for separation pay calculation under the Labor Code.
Must regular allowances be included in separation pay? Read More »
Separation pay financially compensates employees terminated due to authorized causes strictly under Articles 298 and 299 of the Labor Code.
What is separation pay? Read More »
Employers must formally issue a one-month written termination notice to the employee and DOLE under the Labor Code.
What are the notice requirements for authorized termination? Read More »
Employees facing authorized termination under Articles 298 and 299 of the Labor Code are legally covered to receive separation pay.
Who is covered by separation pay? Read More »
Retrenchment to prevent losses requires a separation pay rate of one-half month per year of service under the Labor Code.
What is the separation pay for retrenchment? Read More »
Employers can efficiently submit termination notices physically using RKS Form 5 or via the DOLE Establishment Report Systems.
How can employers submit the termination notice? Read More »
Establishment closure not due to losses mandates one-half month pay per year of service under the Labor Code.
What is the separation pay for establishment closure? Read More »
An employee with an incurable disease securely receives one-half month pay per year of service under the Labor Code.
Is separation pay required for an incurable disease? Read More »
Separation pay from causes completely beyond an employee’s control is totally tax-exempt under Section 32 of the Tax Code.
Is separation pay subject to income tax? Read More »
