How to Claim Unpaid Final Pay and Your Last Month’s Salary in the Philippines (DOLE & NLRC)

This article explains, end-to-end, how workers in the Philippines can recover unpaid final pay and last month’s salary—what’s legally included, where to file (DOLE vs. NLRC), timelines, proofs, computation tips, and what to expect at each stage.

1) What counts as “final pay”?

When employment ends—whether by resignation, end of contract, redundancy, closure, or dismissal—your employer must settle all amounts legally due to you. Final pay typically includes:

Unpaid wages: Remaining days/hours worked, night shift diff., overtime, premium, and holiday pay not yet paid.
Pro-rated 13th-month pay: For rank-and-file employees, computed from Jan 1 up to your separation date.
Conversion of unused Service Incentive Leave (SIL): Usually up to 5 days per year for eligible employees, converted at your latest daily rate upon separation (subject to coverage rules; certain categories like managerial employees or field personnel may be excluded).
Separation pay (only if legally applicable): For authorized causes (e.g., retrenchment, installation of labor-saving devices, redundancy, closure not due to serious losses), or as provided in CBA/company policy.
Other accrued benefits: Pro-rated allowances or leave credits promised by policy/CBA, commission already earned, reimbursement of business expenses, etc.
Government-mandated contributions & taxes: Employers may make lawful withholdings (taxes, SSS/PhilHealth/HDMF contributions, and authorized deductions with your written consent). Unliquidated cash advances and documented losses/shortages may be offset if lawful and supported.

Key point: Employers may require clearance (return of ID/laptop/tools), but they cannot indefinitely withhold all final pay without basis. Deductions must be lawful, reasonable, and supported.

2) Quick self-check: are you in the right forum?

Pure wage/benefit issues (no reinstatement sought): Start with DOLE via the Single-Entry Approach (SEnA); if unresolved, you may pursue either (a) a DOLE money-claims/inspection route (when suitable) or (b) a formal NLRC complaint.
Illegal dismissal / reinstatement / damages: File with the NLRC after SEnA.
OFWs/seafarers: Money claims and illegal dismissal generally fall under NLRC (with special contract rules for overseas work).

Prescription (deadlines to file)

Money claims: generally 3 years from accrual.

Illegal dismissal: generally 4 years from dismissal. File early; don’t wait for internal processes to stall out your claim.

3) Compute what you’re owed (simple worksheets)

3.1 Unpaid last month’s salary

Daily rate  = Monthly rate ÷ 26 (for daily-paid in some companies) or ÷ 22/21 (for monthly-paid, depending on policy/CEA)
Hourly rate = Daily rate ÷ 8
Unpaid salary = (Unpaid days × Daily rate) + (Unpaid hours × Hourly rate)

(Use your company’s established divisor—check handbook/CEA or past payslips. Apply night diff./OT/holiday premiums, if any.)

3.2 Pro-rated 13th-month

13th month = (Total basic earnings within the year up to separation) ÷ 12

3.3 SIL cash conversion (if eligible)

SIL cash = Unused SIL days × Latest daily rate

3.4 Separation pay (if legally due)

Typical statutory formulas (whichever applies to the cause):

a) Installation of labor-saving devices / redundancy / closure not due to serious losses:
   Separation pay = At least 1 month pay OR 1 month pay per year of service, whichever is higher

b) Retrenchment / disease not curable within 6 months:
   Separation pay = At least 1 month pay OR 1/2 month pay per year of service, whichever is higher

(“Year of service” usually counts a fraction of 6 months or more as one full year. Check your facts; company policies/CBA can grant more.)

4) Step-by-step recovery: DOLE then NLRC

4.1 Send a formal demand to HR/Payroll first (optional but smart)

Brief facts (employment dates, position, separation date).
Itemized computation of amounts owed (attach payslips, time records, email/HR policy extracts).
Give a reasonable deadline (e.g., 5–10 working days).
Request issuance of Certificate of Employment (COE). Employers should issue a COE promptly (commonly within 3 working days upon request).

This demand letter shows good faith, creates a paper trail, and may lead to quick settlement.

4.2 File a SEnA Request for Assistance (RFA) with DOLE

What SEnA is: A mandatory conciliation-mediation step for labor disputes. It’s fast, non-adversarial, and free.

Where to file: The DOLE Regional/Field Office where the company is located or where the work was performed (you can also coordinate with the office convenient to you; they’ll route it as needed).

What to bring:

Valid ID
Employment proof (contract/appointment letter, IDs, company emails)
Payslips, time records, computation sheet, resignation/notice/termination papers
Demand letter (if any) and proof of delivery
Company policy or CBA pages supporting your claim

Process & timeline:

Fill out the RFA form (state the amounts and relief you want).
A SEnA Officer sets mediation conferences (often within days).
The SEnA window is generally up to 30 calendar days from filing.
If you reach a Settlement Agreement, it’s documented and binding; non-compliance can be enforced through DOLE/NLRC mechanisms.

If settlement fails: You’ll receive a referral/endorsement stating SEnA failed. Use this to file in the proper forum (DOLE money-claims/visitorial enforcement when applicable, or NLRC).

4.3 Choosing your next step after SEnA

A) DOLE (Regional Office) money-claims / labor standards route

Use when:

The dispute is primarily labor standards (unpaid wages, 13th month, SIL, underpayment).
There’s no complex issue on employment relationship (e.g., clear you’re an employee, not a contractor).
You’re not seeking reinstatement or damages for illegal dismissal.

How it proceeds:

You submit a complaint or DOLE conducts an inspection/visitorial action.
The Regional Director (or authorized officer) may issue compliance orders compelling payment of deficiencies.
Remedies/appeals are available to both sides.

Tip: This route can be powerful if your company has broader compliance issues (wage orders, benefits, OSH). Inspectors’ findings can cover you and similarly situated co-workers.

B) NLRC (Labor Arbiter) complaint

Use when:

You seek illegal dismissal remedies (reinstatement/backwages) or damages; or
The case involves complex factual/legal issues, or the amount/relief goes beyond the DOLE summary jurisdiction.

How it proceeds:

File a Verified Complaint at the proper NLRC Regional Arbitration Branch (RAB) where you worked or where the employer is located. Filing fees apply for money claims (modest; indigent exemptions possible).
Mandatory Conference: The Labor Arbiter (LA) holds one or more conferences for settlement/clarification.
Position Papers: Both sides submit affidavits and documentary evidence.
Decision: The LA issues a written decision.
Appeal:
- 10 calendar days to appeal to the NLRC Commission.
- Employers appealing monetary awards must post a cash/surety bond roughly equal to the award.
Finality & Execution: Once final, the LA issues a Writ of Execution; the NLRC Sheriff can garnish bank accounts, levy properties, or serve a notice of garnishment on the employer’s clients (for receivables), as allowed.

5) Evidence that helps you win

Employment proof: ID, emails, schedule assignments, company memos, HRIS screenshots, group chats (if relevant and authentic).
Hours & pay: Payslips, daily time records (DTR), biometrics logs, overtime approvals, shift notices, payroll emails, commission ledgers.
Policies: Employee handbook, HR policies/CBA pages on 13th month, leave, separation, clearance, and final pay timelines.
Separation documents: Resignation letter, acceptance, termination notice, clearance form, quitclaim drafts.
Your computation: Clear worksheets showing how you arrived at totals.

Burden of proof note: Employers are legally obliged to keep payroll and time records. If they fail to produce them, credible employee evidence and consistent sworn statements carry weight.

6) Quitclaims, waivers, and “release” documents

Voluntariness: Must be signed freely (no coercion/duress).
Clear consideration: The amount paid must be reasonable and clearly for specific claims.
Not contrary to law: You can’t waive mandatory benefits below minimum standards.
Still challengeable: Courts/NLRC can invalidate unconscionable or coerced quitclaims and still award deficiencies.

Practical tip: If offered a quitclaim, you may (a) negotiate the figure, (b) add wording that it does not waive claims for underpayment/unknown deficiencies, or (c) receive “under protest” and continue your claim (seek legal advice for wording).

7) Clearance, property returns, and “holds” on pay

Employers may require the return of company property and settlement of accountabilities.
They cannot keep all your final pay indefinitely over minor items; deductions must be lawful, documented, and agreed (or adjudged).
If an employer insists on a blanket hold without basis, bring it up at SEnA; mediators often craft practical step-downs (e.g., return of items on a set date vs. release of uncontested amounts).

8) Taxes, SSS/PhilHealth/Pag-IBIG, and certificates

BIR: Final pay components are taxable per normal rules; 13th-month pay is tax-exempt up to the statutory cap, with any excess taxable.
SSS/PhilHealth/HDMF: Ensure contributions are properly posted through your separation month; unpaid employer remittances can be pursued via DOLE and the agencies.
COE: Must be issued promptly upon request (commonly within 3 working days).
Payslip/Alphalist: Ask HR for your final payslip and for year-end certificates (e.g., BIR Form 2316) for tax reconciliation.

9) Timelines & expectations

Internal settlement: Often within 5–15 working days after a firm demand and completed clearance, if the employer is cooperative.
SEnA: Target within 30 days from filing, with 1–3 mediation conferences.
DOLE compliance route: Weeks to months, depending on inspections and orders.
NLRC case: Several months at the LA level; longer if appealed.
Execution: Can be fast if the employer pays; longer if garnishment/levy is needed.

10) Practical templates you can adapt

10.1 Demand letter bullet points

Your name, position, employment dates, separation date.
Concise facts: unpaid last wages, unissued 13th-month, SIL conversion, separation pay (if applicable).
Your computations with attachments.
Request for COE and final payslip.
Reasonable payment deadline and bank details.
Professional tone; avoid threats—save those for formal filings.

10.2 Computation checklist

Salary rate/divisor verified from payslips/HR policy
Days/hours unpaid + premiums correctly tallied
Pro-rated 13th-month computed from basic pay only
SIL eligibility and unused balance verified
Separation pay cause and rate verified
Lawful deductions applied and supported
Net payable clearly shown

11) Where to file & what to ask for (quick guide)

Situation	Start	Then
Pure unpaid wages/benefits	SEnA (DOLE)	DOLE compliance/money-claims or NLRC (if broader issues)
Illegal dismissal (want reinstatement/backwages)	SEnA (DOLE)	NLRC complaint before the Labor Arbiter
OFW/seafarer money claims	SEnA (through DOLE/POLO as routed)	NLRC
Employer refuses to issue COE/payslips	SEnA	DOLE directive; include in NLRC claim if part of larger dispute

12) FAQs

Q: My employer says I’ll get final pay only after “system cutoff” two months later. Legal? A: Employers should release final pay within a reasonable period after separation—weeks, not months—and certainly not indefinitely. Use a demand letter, then SEnA if needed.

Q: They deducted a big amount for a “lost tool” without proof. A: Deductions must be lawful, supported, and usually with your written authorization. Challenge unsupported deductions at SEnA/DOLE/NLRC.

Q: I signed a quitclaim because I needed money. Can I still claim underpayments? A: Potentially yes if the quitclaim was coerced, for grossly inadequate consideration, or waives non-waivable statutory benefits. Bring it to NLRC.

Q: I’m a probationary/contractual worker. Do I still get 13th-month and SIL cash conversion? A: Yes, if you’re a rank-and-file employee and otherwise eligible; 13th-month is for rank-and-file regardless of status. SIL coverage depends on category and length of service; some categories are excluded by law.

13) Clean, actionable next steps (checklist)

Itemize your claim with computations and documents.
Send a demand to HR/Payroll (keep proof).
File SEnA at the DOLE office covering your workplace.
If unresolved, choose DOLE (for clear labor-standards underpayments) or NLRC (for illegal dismissal/complex claims).
Prepare sworn statements and organize evidence for position papers.
Track deadlines: 10 days for NLRC appeals; prescription periods (3 years money claims; 4 years illegal dismissal).
Pursue execution if you win and the employer delays payment.

Final word

You don’t have to tolerate unpaid final pay. The law provides a free, fast conciliation route (SEnA) and strong adjudicatory/enforcement mechanisms via DOLE and the NLRC. With a clear computation, proper documents, and timely filing, you can recover what’s due and prevent further delays.