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The amount of separation pay under the Labor Code depends on the following factors: The employee’s last salary refers to the salary rate of the employee at the time of his termination from service.
It determines the based to be used in the computation of separation pay.
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In May 2014, the maintaining balance for a regular BDO passbook account was increased from 5,000 pesos to 10,000 pesos.
Previously, it was only 5,000 pesos; since May 1, 2014, it has been 10,000 pesos.