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

If you’ve resigned, were terminated, or your contract ended and your employer hasn’t released your last pay, this guide walks you through what you’re owed, the legal bases, and exactly how to pursue it—first through the Department of Labor and Employment (DOLE), and, if needed, through the National Labor Relations Commission (NLRC).

1) What counts as “final pay”?

“Final pay” (sometimes called “last pay”) is the sum of all amounts due to an employee upon separation, typically including:

Unpaid basic wages up to the last actual day worked
Pro-rated 13th month pay (under P.D. 851)
Conversion to cash of unused Service Incentive Leave (SIL)—at least 5 days per year if you’re covered
Overtime pay, premium pay, night shift differential, and holiday pay that remain unpaid
Allowances or benefits that are wage-integrated or earned (depending on policy/CBA)
Tax refund (if your withholding tax was over-deducted)
Separation pay, if applicable (see below)

Separation pay basics

Separation pay is not automatic. It is due only in specific cases, for example:

Redundancy or installation of labor-saving devices – at least one (1) month pay per year of service (fraction of at least six months counts as a year; “at least” means floor, CBAs or company policy may give more).
Retrenchment to prevent losses or closure not due to serious losses – at least one-half (1/2) month pay per year of service.
Disease (employee found unfit to work by a competent public health authority) – at least one-half (1/2) month pay per year of service.
Illegal dismissal – separation pay may be awarded in lieu of reinstatement by the Labor Arbiter/NLRC/court.

Note: Resignation generally does not entitle you to separation pay unless your CBA or company policy grants it.

When should final pay be released?

As a rule of thumb in practice, within 30 days from separation, subject to clearance procedures that are reasonable and related to legitimate company interests (return of company property, liquidation of advances, etc.). Employers may not forfeit earned wages; deductions must be lawful and authorized in writing, or allowed by law/CBAs.

2) What deductions are allowed?

Employers may deduct from your last pay only if the deduction is:

Required by law (SSS, PhilHealth, Pag-IBIG, taxes);
Authorized in writing by you for a lawful purpose and for your benefit; or
Pursuant to a CBA/company policy consistent with law (e.g., properly documented cash advances, verified property losses/damages after due process).

Security deposits to answer for losses are tightly regulated. Blanket “no clearance, no pay” practices that indefinitely delay wages or impose punitive deductions are unlawful.

3) Prescriptive periods (deadlines to file)

Money claims (unpaid wages, 13th month, SIL, differentials): 3 years from when each claim accrued.
Illegal dismissal: generally 4 years (injury to rights), but money components within an illegal dismissal case still follow the 3-year rule.
Labor standards enforcement by DOLE can still reach back as allowed by law, but don’t rely on it—file early.

Tip: Even if you try conciliation first, keep an eye on the clock. The filing of a formal case stops prescription; a mere demand letter does not.

4) Demand first: a short, written request (optional but smart)

Before escalating, send a clear written demand to HR/payroll. It starts legal interest running and often resolves matters quickly.

One-page demand letter outline:

Date, your full name, position, and employee number
Date of separation and reason (resigned/end of contract/termination)
Itemized amounts you believe are due (last wages, 13th month prorated, SIL, OT/holiday, separation pay if applicable)
Request release within 5–10 business days and issuance of COE
State that you’ll seek assistance from DOLE (and, if needed, NLRC) if not resolved
Your contact details and signature

Keep proof of delivery (email with read receipt, courier acknowledgment, or HR receiving stamp).

5) Route 1: DOLE (conciliation & enforcement)

A) SEnA (Single Entry Approach) – fast conciliation-mediation

What it is: A 30-day, non-litigious conciliation process to settle labor issues quickly.
How to start: File a Request for Assistance (RFA) with the DOLE Regional/Field Office where the employer is located or where you worked. (You may file online where available or walk in.)
What happens: A SEnA Desk Officer schedules conferences, helps compute what’s due, and nudges settlement.
Outcome: If settled, you sign a Compromise Agreement. If not, the officer issues a Referral to the proper forum (often the NLRC).

Bring to SEnA: government ID, employment contract/offer/appointment, payslips or payroll screenshots, resignation/termination papers, clearance status, time records, any computations, and your demand letter.

B) DOLE enforcement (labor standards/inspections)

When used: If there’s a clear labor standards violation (e.g., non-payment of wages/13th month), DOLE may use its visitorial and enforcement powers to require compliance.
Result: DOLE may issue a Compliance Order (with possible assessments/penalties). Employers can seek review/appeal, but many pay at this stage.

Pros of DOLE first: It’s quick, informal, and often gets employers to pay without litigation. Limit: DOLE does not decide illegal dismissal or reinstatement; those are for the NLRC. Large, disputed money claims may still need NLRC adjudication.

6) Route 2: NLRC (formal adjudication)

If SEnA fails or the issue involves illegal dismissal or heavily contested claims, file a case with the NLRC Regional Arbitration Branch where you worked or where the employer is located.

What to file

Complaint (standard NLRC form) identifying parties and causes of action (e.g., unpaid wages, 13th month, SIL, separation pay, illegal dismissal)
Supporting documents (same list as in SEnA, plus government IDs; attach your SEnA referral if any)
Verification and Certification against forum shopping (usually part of the form)

Fees: Employee-complainants generally do not pay filing fees at the start. (Employers appealing a monetary award must post an appeal bond roughly equal to the award.)

Procedure snapshot

Docketing and summons to the employer.
Mandatory conciliation/mediation conference(s) before the Labor Arbiter (to explore settlement and narrow issues).
Position papers with evidence (no lengthy trials; cases are largely paper-based).
Decision by the Labor Arbiter.
Appeal to the NLRC within 10 calendar days from receipt of the decision (strict timeline).
Entry of judgment and writ of execution if the employer doesn’t comply voluntarily.

Legal interest

Monetary awards typically earn 6% per annum legal interest from the time of judicial or extrajudicial demand (commonly from filing date, unless the decision specifies otherwise) until full satisfaction.

7) Computation guide (quick formulas)

Last wages: Daily rate × actual days worked but unpaid or Monthly rate ÷ 26 (or 30) × days unpaid (use your company’s lawful divisor).
13th month (pro-rated): (Total basic wages earned Jan–Dec) ÷ 12 (if separated mid-year, compute wages earned up to separation ÷ 12).
SIL cash conversion: Daily rate × unused SIL days (at least 5 days per year if covered).
OT/holiday/night premium: Apply the statutory multipliers to your basic rate (e.g., OT = 125% of hourly rate; night diff = +10%; legal holiday = 200% for work on regular holidays; special day = 130%, etc., subject to prevailing rules).
Separation pay (if applicable): (Monthly rate) × (years of service) at 1/2 month or 1 month per year depending on authorized cause (rounding six months up to a year).

Always check your CBA or company policy if it provides a better formula.

8) Evidence checklist (what convinces DOLE/NLRC)

Government ID
Employment contract/offer or any appointment memo
Company ID, payslips, payroll emails/texts, ATM pay records
Resignation letter, acceptance, or termination notice
Clearance forms, return-of-property receipts
Time sheets, schedules, biometrics summaries
Company policies/handbooks, CBA pages on benefits
Your computation sheet and demand letter with proof of delivery

No payslips? Gather indirect proof: chat/email confirming rates or payment dates, bank statements showing past payroll credits, co-worker affidavits, photos of posted rates/schedules, HR memos.

9) Practical strategies

Be specific with numbers. Itemize amounts and attach a computation table—even if approximate—so the officer/arbiter has anchors.
Stay professional. Avoid insults or threats; they don’t help in conciliation.
Mind prescription. If time is running out, file at NLRC to stop the clock, even while pursuing DOLE conciliation.
Group claims. If several employees share the same issue, file together; it strengthens the case and streamlines proceedings.
Watch for offset tactics. Employers sometimes claim unreturned property or losses. Ask for proof, due process records, and lawful written authorizations for any deduction.
Tax notes. 13th month is tax-exempt up to the current statutory cap; separation benefits due to redundancy/retrenchment/closure may be tax-exempt under the Tax Code. Ask payroll to show computations and applied exemptions.

10) Quick decision map

Are you simply missing last wages/13th month/SIL and the employer is responsive? → Send demand letter → If ignored, file SEnA (DOLE) → Settle, or get referral.

Is there illegal dismissal or a large, disputed claim? → SEnA first (required in practice) → Then file NLRC case (illegal dismissal + money claims).

Employer won’t release due to “no clearance”? → Return property, document it, and demand release of wages. If still withheld or deductions are abusive → SEnA/DOLE for labor standards violation and/or NLRC for adjudication.

11) Sample one-page demand (fill-in template)

Subject: Demand for Release of Final Pay and COE

Dear HR/Payroll, I was employed as [Position] from [Start Date] until [Last Day Worked] ([Reason for separation]). My final pay remains unpaid. By my computation, the following are due:

Last wages: ₱[amount]

Pro-rated 13th month: ₱[amount]

Unused SIL (___ days × ₱___): ₱[amount]

OT/holiday/night premiums: ₱[amount]

Separation pay (if applicable): ₱[amount]

Tax refund/other earned benefits: ₱[amount] Total: ₱[amount] (less only lawful, documented deductions).

Kindly release payment within 10 business days and issue my Certificate of Employment. Otherwise, I will seek assistance from DOLE (SEnA) and, if necessary, file a case with the NLRC.

Sincerely, [Your Name] [Mobile/Email] [Address]

12) Frequently asked questions

Q: Can the company delay my last pay until all signatories sign my clearance? A: Reasonable clearance steps are allowed, but indefinite or punitive delays and unauthorized deductions are unlawful. You can seek DOLE assistance.

Q: I resigned without 30-day notice. Can they forfeit my wages? A: They may pursue damages if proven, but earned wages cannot be forfeited. Deductions must meet legal standards (lawful, written authorization, or by law/CBA).

Q: I’m contractual/project-based. Do I still get 13th month? A: Yes, if you’re a rank-and-file employee who earned wages, you’re generally covered by the 13th-month law, regardless of tenure or payment scheme.

Q: What if my employer closed down? A: You may still claim against the employer (or its responsible officers, in proper cases). File through SEnA and/or NLRC promptly.

13) Ready-to-file checklist

☐ Government ID
☐ Contract/appointment or any proof of employment
☐ Payslips/payroll texts/emails, bank proof
☐ Resignation/termination/clearance documents
☐ Computation table (Excel or printed)
☐ Written demand and proof of receipt
☐ SEnA RFA (if already filed) or completed NLRC complaint form

Bottom line

Start with a clear written demand, then proceed to DOLE SEnA for quick conciliation. If unresolved—or if the dispute involves illegal dismissal or complex monetary issues—escalate to the NLRC. Track the 3-year (money claims) and 4-year (illegal dismissal) timelines, keep your documents tight, and present specific computations to maximize your chances of full recovery plus legal interest.