Planning to resign soon? Before you submit that resignation letter, it’s important to know how much back pay you’ll receive. In the Philippines, back pay (also known as final pay) includes all the money owed to you by your employer when you leave a company.
This article will guide you on how to compute your back pay accurately — and you can even use our free Back Pay Calculator to get your estimate instantly.
🧾 What Is Back Pay?
Back pay is the total amount an employee receives after resigning or being terminated. It includes unpaid salary, prorated benefits, unused leave credits, and 13th month pay — minus any deductions or liabilities owed to the company.
📋 Components of Back Pay
- Unpaid Salary – Salary for the last days or weeks worked before your resignation date.
- Pro-rated 13th Month Pay – Computed based on the number of months you worked for the year.
- Unused Leave Credits – Converted to cash if you have remaining vacation or sick leaves.
- Tax Refund (if applicable) – Any over-withheld tax amount returned to you upon clearance.
- Deductions or Liabilities – Includes company loans, lost equipment, or unreturned items deducted from the total.
🧮 How to Compute Back Pay (Formula)
Back Pay = Unpaid Salary + Pro-rated 13th Month Pay + Leave Conversion + Tax Refund – Deductions
Example:
- Unpaid Salary: ₱10,000
- 13th Month Pay: ₱5,000
- Leave Conversion: ₱2,000
- Deductions: ₱1,000
Computation:
₱10,000 + ₱5,000 + ₱2,000 – ₱1,000 = ₱16,000 (Back Pay)
📅 When Will You Receive Your Back Pay?
Under DOLE Labor Advisory No. 06-2020, employees should receive their back pay within 30 days after separation from employment, unless there’s a company policy providing a shorter period.
🧠 How to Compute Your Back Pay Instantly
You can use our Back Pay Calculator Philippines 2025 to automatically compute your estimated final pay. Simply enter your last salary, number of months worked, and unused leave credits — and it will show your approximate back pay in seconds.
💼 Tips for Employees Before Resigning
- ✅ Settle all company accountabilities before clearance.
- ✅ Request your Certificate of Employment (COE) and payslip record.
- ✅ Ask HR to confirm the expected release date of your back pay.
- ✅ Keep a copy of your resignation acceptance letter.
🏁 Key Takeaway
Knowing your back pay computation helps you plan your finances better when leaving a job. Always double-check your payslips, deductions, and benefits to ensure accuracy.
👉 Try our Free Back Pay Calculator to estimate your final pay today.