QuestionsQuestions (DOLE LABOR ADVISORY)
All employees in the private sector regardless of position, designation, or status, irrespective of how wages are paid; this includes part-time employees, employees of service and other job contractors, and domestic helpers/persons in the personal service of another.
No. The law does not cover employees of retail, service and agricultural establishments or operations employing not more than ten (10) employees or workers.
No. RA 7641 does not cover employees of the National Government and its political subdivisions, including GOCCs, if they are covered by the Civil Service Law and its regulations.
At least one-half (1/2) month salary for every year of service, with a fraction of at least six (6) months considered as one whole year.
It means fifteen (15) days plus one-twelfth (1/12) of the 13th month pay and the cash equivalent of not more than five (5) days’ service incentive leaves (unless the parties provide broader inclusions).
Yes. The period of employment with the same employer before the effectivity date of the law on January 7, 1993 should be included.
It is considered as one whole year.
Qualified workers are entitled to RA 7641 in the absence of any individual or collective agreement, company policy, or practice. If an agreement/policy/practice provides benefits equal to or superior to RA 7641, that arrangement prevails.
The employer is liable to pay the difference to ensure the employee receives at least the minimum benefits under RA 7641.
The employer has the option to treat the coverage of the PAG-IBIG Fund as a substitute retirement benefit for the employee concerned, subject to the limits and conditions stated in the advisory.
If it does not contravene an existing collective bargaining agreement or other employment agreement and the PAG-IBIG scheme offers benefits which are more than or at least equal to the benefits under RA 7641.
The employer remains obligated to pay the difference between the benefits actually provided and the benefits required under RA 7641.
Only the employer’s contribution and its increments shall be considered for full or partial compliance with RA 7641.
Yes. Where the employee is the lone contributor and the employer is exempted from PAG-IBIG coverage, the employer is under obligation to give retirement benefits under the Act.
The option cannot contravene an existing collective bargaining agreement or other employment agreement; thus, compliance depends on whether the CBA allows or is consistent with such substitution.