Computation of back pay may vary depending on your company polices however, the following items should be considered.
1. Last Salary – your last salary may be withheld and will be release as back pay.
2. Pro Rated 13th month pay.
3. Tax Refund
4. Vacation and Sick Leave conversion (if convertible to cash).
5. Other deductions or liabilities – loans or lost equipment (Headset, locker keys, etc.)
Illustration of Last Pay Slip for Back Pay
Most companies will issue your last pay within 30 – 60 business days after your last day of work. However there might be some reasons why it’s delayed.
1. Your manager has not submitted the clearance to HR.
2. The signatory of your last paycheck might not be available.
3. Companies are aware that there is no provision in the labor code in relation to the period of payment of last pay which technically allows them to hold it off.
Though, reason number 3 states that there is no provision in the law that covers the period of payment of last pay, companies should give it within a reasonable time or whatever is stated on the employment contract.
In case the reasonable time has lapsed and you have documented a proof that your previous employer has not given your last salary, you may now file a complaint at the National Labor Relations Commission (NLRC) or Department of Labor and Employment (DOLE).
You can also contact the BPO Workers Organization below which offers assistance to BPO employees.