Question & AnswerQ&A (EXECUTIVE ORDER NO. 279)
Republic Act No. 8558, enacted on February 26, 1998, amended Article 287 of the Labor Code to reduce the retirement age of underground mine workers from sixty (60) to fifty (50).
The new compulsory retirement age for underground mine workers is fifty (50) years but not beyond sixty (60) years.
The compulsory retirement age is sixty-five (65) years for employees other than underground mine workers.
The employee must have reached the retirement age established by contract or law and must have served at least five (5) years in the establishment.
Retirement pay is equivalent to at least one-half (1/2) month salary for every year of service, with a fraction of at least six (6) months being considered as one whole year.
It includes fifteen (15) days salary plus one-twelfth (1/12) of the 13th month pay and the cash equivalent of not more than five (5) days of service incentive leaves.
No, these establishments or operations employing not more than ten (10) employees are exempted from the coverage of the retirement provisions.
Violation of the retirement provisions is declared unlawful and is subject to the penal provisions under Article 288 of the Labor Code.
Yes, employees may retire upon reaching the retirement age established in the collective bargaining agreement or employment contract, which can be earlier than the compulsory age.
Yes, nothing in Article 287 as amended shall deprive any employee of benefits to which he may be entitled under existing laws or company policies or practices.