Final pay Computation and others

[simply_meeh27]

Hi,,, just want to ask is there anyone here na naka2alam who can help me understand panu kinocompute *** mga final pays, back pays, tax refund..

I ever u resigned in a company.. anu anu ba *** mgma dapat mo matanggap from them? for example la ka pa 1 year then ng resign ka for example 11mos. Anu dapat mo makuha and how to compute..


Maraming salamat po!

[real madrid]

Hi,,, just want to ask is there anyone here na naka2alam who can help me understand panu kinocompute *** mga final pays, back pays, tax refund..

I ever u resigned in a company.. anu anu ba *** mgma dapat mo matanggap from them? for example la ka pa 1 year then ng resign ka for example 11mos. Anu dapat mo makuha and how to compute..


Maraming salamat po!

alam ko depende yan sa company may mga company na nagbibigay ng separation pay, pero ikaw wala ka pang isang taon wala siguro.

karaniwang binibigay din yung di di nagamit na leave pero depende
pa din yun company.

dont expect much wala ka pang isang taon.

sa tax naman computed pa din yun.

[Dacs]

Ang mga usual na matatanggap mo (depende sa benefits ng company) ay:

1. Last salary mo
2. Unused leaves (kung convertible to cash)
3. Sobrang tax na nakaltas sa iyo
4. 13th month pay (pro rated sa stay mo sa company)

As per exact computation, I cannot answer that, but more or less yan yung mga usual na sinasama sa backpay.

[vinoi]

pano nga ba process nito? assuming ive been with the company for more than 2 years. nakuha ko kakapiranggot sa pagkaka akalang kinaltas na nila yung mga loans ko. then im getting letters from some collection officers that i still have unpaid loans. damn it.

[johnmaxwell]

Try reviewing your last pay documents, nakalagay ba don na deduction existing loan? Kung SSS or Pag-Ibig loans, companies has nothing to do with it. It's between the employee and SSS or Pag-Ibig kaya di yon ikakaltas ng company sa last pay.

BEWARE. Some companies do not remit loan payment on behalf of the employee. Make sure all salary deductions made were reflected in SSS records. I'm not sure if this can still be check online in SSS website.

pano nga ba process nito? assuming ive been with the company for more than 2 years. nakuha ko kakapiranggot sa pagkaka akalang kinaltas na nila yung mga loans ko. then im getting letters from some collection officers that i still have unpaid loans. damn it.

[johnmaxwell]

Last pay normally include:

Last salary
Deduct overuse leave (ex. allowed for 1st year is 5 and you use 5, kung 6 months ka pa lang, i-prorate ng company allowed leave and deduct from last pay, in this example, 2.5 lang allowed VL.)
13th month pay pro-rated
Over deducted w/tax - Annualize your income tax (meaning kung 11 months ka lang nag work for one year, magkano dapat ang w/tax mo using the tax table) then deduct actual deduction made.

Sick Leave is not in Labor law, so most of the time di yan binabayaran unused SL.

Separation Pay? Based on labor law, only termiinated employees will received separation pay. Its unusual for resigned employee to received separation pay.

[Dacs]

Last pay normally include:

Last salary
Deduct overuse leave (ex. allowed for 1st year is 5 and you use 5, kung 6 months ka pa lang, i-prorate ng company allowed leave and deduct from last pay, in this example, 2.5 lang allowed VL.)
13th month pay pro-rated
Over deducted w/tax - Annualize your income tax (meaning kung 11 months ka lang nag work for one year, magkano dapat ang w/tax mo using the tax table) then deduct actual deduction made.

Sick Leave is not in Labor law, so most of the time di yan binabayaran unused SL.

Separation Pay? Based on labor law, only termiinated employees will received separation pay. Its unusual for resigned employee to received separation pay.

I do remember the HR told us this before: After 5 years, we're entitled to a separation pay amounting to # of years x current rate if we decide to resign (5 years at a minimum)

Nasa law daw yun. Anyone confirm if this is true?

[johnmaxwell]

That is not true. It's not in the law. Try searching DOLE website.
Wala talagang nakukuha pag voluntary resignation. But some companies are kind enough to give resigning employees separation pay.

Yung 5 years minimum, if an employee was terminated, below 5 years will be 1/2 of current salary x 5 years.

If 10 years and above, 100% current salary x years of service.

But, if you will be terminated below 5 years but not lower than 12 months, an employee is entitled to 1 month salary as separation pay.

Based on my personal experience, my employer terminated me due to company financial problems after thirteen months of service. They planned to give me 1/2 of my salary as separation pay, but I showed them the labor law that 1/2 salary is only applicable if the service is below 12 monhts. That I'm entitled to 1 month separation pay. Wala silang nagawa, they paid the 1 month separation pay.

I do remember the HR told us this before: After 5 years, we're entitled to a separation pay amounting to # of years x current rate if we decide to resign (5 years at a minimum)

Nasa law daw yun. Anyone confirm if this is true?

[johnmaxwell]

Another personal experience was when I resigned after 9 years of service, the company gave me 1/2 of my current salary x years of service. But it is not given to everybody, others who resigned with the same circumstances in my company did not get anything.

Parang goodwill lang nila yon sa mga performing employees and of course if they like you. Minsan kasi "good riddance" yung resignation, so wala talaga silang ibibigay.

I'm quite familiar with this, kasi during the Asian Crisis (yes medyo matanda na ko) our company terminated some managers and they made sure that they follow the law, especially because their stock is trading in the Stock Exchange.

[johnmaxwell]

oooppps... correcting myself . 1/2 monthly salary lang pala kahit 10 years of service. meaning goodwill na 1 month x years of service bigay previous company ko pag 10 years of service.

Not unless, my CBA yung previous company mo.

IF TERMINATED

Art. 283. Closure of establishment and reduction of personnel. The employer may also terminate the employment of any employee due to the installation of labor-saving devices, redundancy, retrenchment to prevent losses or the closing or cessation of operation of the establishment or undertaking unless the closing is for the purpose of circumventing the provisions of this Title, by serving a written notice on the workers and the Ministry of Labor and Employment at least one (1) month before the intended date thereof. In case of termination due to the installation of labor-saving devices or redundancy, the worker affected thereby shall be entitled to a separation pay equivalent to at least his one (1) month pay or to at least one (1) month pay for every year of service, whichever is higher. In case of retrenchment to prevent losses and in cases of closures or cessation of operations of establishment or undertaking not due to serious business losses or financial reverses, the separation pay shall be equivalent to one (1) month pay or at least one-half (1/2) month pay for every year of service, whichever is higher. A fraction of at least six (6) months shall be considered one (1) whole year.

ON RETIREMENT

Art. 287. Retirement. Any employee may be retired upon reaching the retirement age established in the collective bargaining agreement or other applicable employment contract.

In case of retirement, the employee shall be entitled to receive such retirement benefits as he may have earned under existing laws and any collective bargaining agreement and other agreements: Provided, however, That an employee’s retirement benefits under any collective bargaining and other agreements shall not be less than those provided therein.

In the absence of a retirement plan or agreement providing for retirement benefits of employees in the establishment, an employee upon reaching the age of sixty (60) years or more, but not beyond sixty-five (65) years which is hereby declared the compulsory retirement age, who has served at least five (5) years in the said establishment, may retire and shall be entitled to retirement pay equivalent to at least one-half (1/2) month salary for every year of service, a fraction of at least six (6) months being considered as one whole year.

Unless the parties provide for broader inclusions, the term ‘one-half (1/2) month salary’ shall mean fifteen (15) days plus one-twelfth (1/12) of the 13th month pay and the cash equivalent of not more than five (5) days of service incentive leaves.

Retail, service and agricultural establishments or operations employing not more than ten (10) employees or workers are exempted from the coverage of this provision.

Violation of this provision is hereby declared unlawful and subject to the penal provisions under Article 288 of this Code.

FOR MORE INFO

http://www.dole.gov.ph/faq/details.asp?id=F0000053

[council]

I do remember the HR told us this before: After 5 years, we're entitled to a separation pay amounting to # of years x current rate if we decide to resign (5 years at a minimum)

Nasa law daw yun. Anyone confirm if this is true?

The 5-year thingy mentioned above (na nasa law) would probably refer to, at best, provisions related to Article 287 of the LC.

http://www.council.ph/2008/07/21/lab...87-retirement/

"In the absence of a retirement plan or agreement providing for retirement benefits of employees in the establishment, an employee upon reaching the age of sixty (60) years or more, but not beyond sixty-five (65) years which is hereby declared the compulsory retirement age, who has served at least five (5) years in the said establishment, may retire and shall be entitled to retirement pay equivalent to at least one-half (1/2) month salary for every year of service, a fraction of at least six (6) months being considered as one whole year.

This seems to have an implied "and" clause and not an "or" clause - both premises are required:

• age at least 60
• at least 5 years in the said establishment

[council]

Based on my personal experience, my employer terminated me due to company financial problems after thirteen months of service. They planned to give me 1/2 of my salary as separation pay, but I showed them the labor law that 1/2 salary is only applicable if the service is below 12 monhts. That I'm entitled to 1 month separation pay. Wala silang nagawa, they paid the 1 month separation pay.

[council]

Wala talagang nakukuha pag voluntary resignation. But some companies are kind enough to give resigning employees separation pay.

It really depends on the company policy - some have retirement programs for those who have been with the company for 5 years or more.

Dati sa amin merong vesting:

5 - 9 yrs = 25% of monthly salary x number of years in service
10 - 14 yrs = 50% of monthly salary x number of years in service
15 - 19 yrs = 75% of monthly salary x number of years in service
20 and ups = 100% of monthly salary x number of years in service

Pero kung pinaka-basic lang talaga, separation pay is really for those covered under Article 283 and 284 lang.

[yakisobaaa]

paano kung non-regularization po sa company at 5 months siya dun? yung usual lang ba makukuha niya kagaya ng last pay, 13th month etc.

[council]

paano kung non-regularization po sa company at 5 months siya dun? yung usual lang ba makukuha niya kagaya ng last pay, 13th month etc.

yes the "usual" lang.

13th month pro-rated
final salary
tax refund/adjustment

plus any other benefits at the discretion of management

[yakisobaaa]

yes the "usual" lang.

13th month pro-rated
final salary
tax refund/adjustment

plus any other benefits at the discretion of management

thanks po sa reply

[diwata123]

di ko na mahanap yung thread about tax computation kaya dito na lang ako tanong.

30k lang ba ang non-taxable na 13th month pay?
meaning kung 35k ang 13th month ko, 5k lang ang taxable. at kung may 14th maonth pay, lahat yon taxable na kase ang total na bonus ko e 70k na for that year, tama ba yon?

example:
13th: May: 35,000 ---> 5k lang ang taxable
14th: Nov: 35,000 ---> 35000 buo taxable (~9k na tax bawas dito)
______
combines bonus (13 at 14) 70k

[johnmaxwell]

You're correct. Total bonus 70K less 30K non-taxable, 40K ang taxable.

di ko na mahanap yung thread about tax computation kaya dito na lang ako tanong.

30k lang ba ang non-taxable na 13th month pay?
meaning kung 35k ang 13th month ko, 5k lang ang taxable. at kung may 14th maonth pay, lahat yon taxable na kase ang total na bonus ko e 70k na for that year, tama ba yon?

example:
13th: May: 35,000 ---> 5k lang ang taxable
14th: Nov: 35,000 ---> 35000 buo taxable (~9k na tax bawas dito)
______
combines bonus (13 at 14) 70k

[diwata123]

^^^
e kaso di naman sya bonus, 13th at 14th month pay... di ba ang bonus lang naman e yung performance bonus, naguguluhan lang ako sa mundo?

[council]

^^^
e kaso di naman sya bonus, 13th at 14th month pay... di ba ang bonus lang naman e yung performance bonus, naguguluhan lang ako sa mundo?

isipin mo na lang na sa lahat ng pera na matatanggap mo sa company, 30k lang max ang non-taxable, kahit na ano pa ang tawag sa mga bonus or whatever. All others are taxable.