This article explains your rights, what counts as “final pay,” common causes of delay, lawful and unlawful deductions, timelines, how to compute what you’re owed, and the practical steps to compel payment—without turning a workplace glitch into a multi-month headache. It is general information, not legal advice for a specific case.

1) The baseline rule: wages must be paid in full and on time

Under the Labor Code, “wages” are all remunerations for work performed, payable directly to the employee. Employers may not withhold or delay wages except for deductions expressly allowed by law, government regulation, or a clear and voluntary employee authorization. This principle continues to apply when employment ends, whether by resignation or termination for cause.

Key takeaways

You’re entitled to all earned pay for work already done, even if you resigned.
Any company policy or practice that forfeits earned wages is void.
Clearance procedures may be required, but they cannot be used to unreasonably delay release of earned pay.

2) What’s included in “final pay” after resignation

While the exact label varies by company, final pay typically bundles the items below. Not all items apply to everyone, but none may be arbitrarily withheld once due.

Unpaid basic salary For all days/hours worked up to your last day.
Pro-rated 13th-month pay (PD 851) Common formula: [ \text{13th-month} = \frac{\text{Total basic salary actually earned in the year}}{12} ] If you resign mid-year, you get the proportion corresponding to pay earned from January 1 up to your separation date. (Subject to the prevailing tax-exempt cap on 13th-month and other benefits.)
Conversion to cash of unused Service Incentive Leave (SIL) By law, rank-and-file employees who have completed at least 12 months of service are entitled to 5 days SIL per year, convertible to cash if unused upon separation (or at year-end if the company so provides). Some companies also convert unused vacation/sick leave under policy or CBA.
Overtime, night shift differential, holiday pay, premium pay If earned but unpaid.
Withheld allowances or reimbursements (e.g., approved expense claims, per diems) under company policy.
Tax adjustments If over-withholding occurred (common when separation happens before year-end), your final pay typically includes a tax refund; if there was under-withholding, there may be a tax deduction.
Separation pay Not owed for ordinary resignation unless your contract, company policy, or CBA grants it. Separation pay is generally for authorized causes (e.g., redundancy, retrenchment) initiated by the employer.

3) How soon should final pay be released?

In practice, Philippine employers are expected to release final pay within around 30 days from separation, unless a more favorable company policy or CBA applies. Administrative clearance (return of IDs, tools, laptops, etc.) can be required to determine the exact net amount (e.g., to account for missing equipment), but it cannot be used to indefinitely postpone payment of what is already determinable and due.

Certificate of Employment (COE): Upon request, employers must issue a COE within a few days (commonly observed as three [3] working days). The COE must state your job title, date of hire, and last day; it need not (and should not) contain negative remarks.

4) Lawful vs. unlawful deductions from final pay

Lawful (typical)

Government-mandated contributions, taxes, and court orders (e.g., BIR, SSS/PhilHealth/Pag-IBIG, garnishments).
Employee-authorized deductions (clear, written, and voluntary), such as loans or advances.
Company property not returned, subject to actual, documented value and due process (notice and opportunity to explain). The deduction must be reasonable and traceable to a legitimate loss.
Training bonds or liquidated damages only if there is a valid written agreement, the amount is reasonable (not punitive), and the bond actually applies to your situation.

Unlawful (typical)

Blanket “forfeiture” of earned wages because you did not complete 30-day notice. An employer may seek damages under contract, but cannot confiscate wages already earned as a penalty without legal basis.
Deductions that are undocumented, excessive, or lack due process.
Withholding of wages to force you to sign quitclaims or to settle unrelated disputes.

5) Prescription (deadline to file)**

Money claims (wages, 13th-month, differentials, SIL conversion, etc.) generally prescribe in 3 years from when the cause of action accrued (typically, your separation date or the date the amount should have been paid).
Other causes of action have different periods (e.g., 1 year for unfair labor practice; 4 years for certain damages), but for delayed salary after resignation, treat 3 years as your hard stop. File early.

6) Interest and damages

If your employer unjustifiably delays payment after demand, Philippine jurisprudence typically imposes legal interest (commonly 6% per annum) on the amounts due, computed from the date of default (or filing) until full payment. Moral/exemplary damages and attorney’s fees may be awarded in cases of bad faith or oppressive conduct, but they are not automatic.

7) How to compute what you’re owed (worked example)

Scenario:

Monthly basic salary: ₱30,000
Last day: April 10
Paid semi-monthly (cutoffs 1-15 and 16-EOM)
SIL balance: 3 days
No other premiums this period

A) Unpaid salary Compute daily rate (commonly Monthly Rate ÷ 26 for daily-rated; Monthly Rate ÷ 22 for some monthly-paid policies; or Monthly Rate × 12 ÷ 313/261 depending on payroll practice). If your company uses the Monthly ÷ 26 approach:

Daily rate = ₱30,000 ÷ 26 = ₱1,153.85
If you worked 8 days in April (Apr 1–10 excluding weekends/holidays as applicable): Unpaid salary = 8 × 1,153.85 = ₱9,230.80

B) Pro-rated 13th-month (Jan 1 to Apr 10)

Salary actually earned Jan–Apr 10 = ₱30,000 × 3 full months + ₱9,230.80 = ₱99,230.80
13th-month = 99,230.80 ÷ 12 = ₱8,269.23 (subject to tax rules)

C) SIL conversion

3 days × ₱1,153.85 = ₱3,461.55

Illustrative gross final pay: ₱9,230.80 + ₱8,269.23 + ₱3,461.55 = ₱20,961.58 (Then apply taxes and lawful deductions only.)

Tip: Ask HR/payroll which divisor and daily rate formula they use, and request the computation sheet. Consistency with company policy (so long as it complies with law) is key.

8) Practical steps to compel payment

Step 1 — Do the basics (fast)

Submit your clearance promptly and keep dated proof (screenshots, receiving copies).
Request your COE and final pay computation in writing.
Return company property with an itemized turn-over report and photos.
If there’s a claim about unreturned items, ask for documented valuation and due process (notice, chance to contest).

Step 2 — Send a formal demand letter

Keep it polite but firm; set a clear deadline (e.g., 5 or 7 business days).
Attach your resignation, acceptance (if any), clearance receipts, payslips, time records, and your own computation.
Request bank transfer details (or specify your bank) and ask for the computation sheet and BIR-2316 at year-end.

Short template you can adapt:

Subject: Demand for Release of Final Pay and Employment Documents Dear [HR/Payroll/Company], I resigned effective [date]. To date, my final pay has not been released. I respectfully demand payment of my unpaid salary, pro-rated 13th-month pay, and cash conversion of unused leaves, less lawful deductions, within [5/7] business days from receipt of this letter. Please email the computation sheet and arrange deposit to my account [details]. Kindly also provide my COE and any tax documents due. Absent timely payment, I will seek assistance from DOLE and, if necessary, file a money claim. Thank you. Sincerely, [Name] | [Contact]

Step 3 — Seek DOLE conciliation (SEnA)

File a Request for Assistance (RFA) at the DOLE Field Office where the employer is located or where you worked.
SEnA is a 30-day conciliation-mediation process designed to quickly settle disputes without a full case. Bring your documents and computation. Many delayed-pay cases end here.

Step 4 — File a money claim if unresolved

File a complaint with the NLRC (National Labor Relations Commission) for money claims. Include interest and, where justified, damages and attorney’s fees.
Keep track of the 3-year prescriptive period; filing stops the clock.

9) Evidence that helps you win

Employment contract, handbook, CBA (for benefits and deductions rules)
Resignation letter and employer’s acceptance (or proof of tender)
Clearance forms and property turn-over receipts
Payslips, timekeeping logs, payroll emails, bank credit records
Leave ledger or HR portal screenshot showing SIL and other leave balances
Any written authorization you did or did not sign for deductions
Your demand letter and proof it was received

10) Common pain points (and how to respond)

“We’re still waiting for clearance from IT/Finance.” – Reply that clearance should not indefinitely delay determinable earned wages; ask for partial release of uncontested items and a date for final reconciliation.

“You didn’t serve 30 days; we’re forfeiting your final pay.” – Forfeiture of earned wages is unlawful. If there’s a valid liquidated-damages clause, the employer must show the agreement and the computation; it cannot impose arbitrary penalties or deny all wages.

“We deducted the full laptop price because the box is missing.” – Deductions must reflect actual loss and observe due process. Challenge excessive or undocumented amounts and demand supporting documents.

“We’ll release final pay only if you sign this quitclaim.” – Quitclaims must be voluntary, for a reasonable consideration, and executed without deceit or coercion. You cannot be forced to waive claims as a condition for wages already earned.

11) Quick checklist before you file

I computed my claims (salary, 13th-month, SIL, premiums).
I gathered proof of work/attendance and leave balances.
I returned all company property and kept receipts.
I sent a dated demand letter with a clear payment deadline.
I’m within 3 years from separation or due date.
I’m ready to file SEnA at DOLE, and NLRC if needed.

12) Frequently asked mini-Q&A

Q: Can my employer offset my unserved 30-day notice against my final pay? A: They may seek liquidated damages if there’s a valid clause, but cannot unilaterally confiscate earned wages absent a legal basis and proper computation. Any offset must be lawful, reasonable, and supported.

Q: Am I entitled to separation pay if I resigned? A: Generally no, unless your contract, CBA, or policy grants it.

Q: Do I still get 13th-month pay if I leave in June? A: Yes, pro-rated based on actual basic pay earned from January 1 to your last day.

Q: What interest applies to delayed payment? A: Courts routinely impose legal interest (often 6% p.a.) on monetary awards from default or filing until full payment.

Q: Can HR withhold my COE until I settle a laptop dispute? A: No. COEs are ministerial; they should be issued promptly upon request.

13) One-page action plan

Document everything (clearance, returns, emails).
Compute your entitlements with the company’s divisor and your own check.
Demand politely in writing with a short deadline.
SEnA at DOLE if no payment.
NLRC money claim before 3 years lapse; include interest.

Final word

Delayed final pay after resignation is usually a fixable process issue. When you organize your documents, state your claim clearly, and use the DOLE/NLRC channels, employers typically settle swiftly. Stay factual, keep receipts, and don’t let the 3-year clock run out.