QuestionsQuestions (BSP CIRCULAR NO. 362)
The rule applies to all underground mine employees contemplated under RA 8558. An underground mine employee is any person employed to extract mineral deposits underground or to work in excavations/workings such as shafts, winzes, tunnels, drifts, crosscuts, raises, and working places beneath the earth’s surface for searching for and extracting mineral deposits.
An underground mine employee may retire upon reaching age 50 or more if he has served for at least 5 years as an underground mine employee or in underground mine of the establishment.
An underground mine employee shall be retired upon reaching age 60.
Yes. The minimum length of service of at least 5 years includes authorized absences and vacations, holidays, and mandatory fulfillment of a military or civic duty.
Any underground mine employee may retire or be retired upon reaching the retirement age established in the CBA or other applicable employment contract, subject to the rules on payment of retirement benefits (Section 4).
If benefits under the CBA/contract are less, the employer must pay the difference between what the employee is due under the DOLE rule and what is provided under the CBA/contract.
At least one-half (1/2) month salary for every year of service, with a fraction of at least 6 months considered as one whole year.
It includes: (1) 15 days salary based on latest salary rate (as defined, excluding COLA, profit-sharing, and other benefits not integrated into regular salary); (2) cash equivalent of 5 days service incentive leave; (3) one-twelfth of the 13th month pay due; and (4) all other benefits agreed upon that should be included.
Use the average daily salary (ADS) as basis for the 15 days: ADS = average salary for the last 12 months reckoned from the date of retirement divided by actual working days in that period. The ADS is then used to compute the 15 days component, consistent with the cited wage rules.
They are not included. The rule states that salary includes remuneration for normal working days/hours and the fair value of food/lodging/customarily furnished, but excludes COLA, profit-sharing payments, and other monetary benefits not considered part of or integrated into regular salary.
No. Section 7 explicitly states that nothing in the rule justifies an employer from withdrawing or reducing any benefits, supplements, or payments provided in existing laws, individual or collective agreements, or employment practices/policies.
They are repealed or modified accordingly.
No. The retirement pay provided in the Act may be exempted from tax consistent with requirements set by the Bureau of Internal Revenue.
It is unlawful to circumvent or render ineffective the provisions of the Act; violations are subject to the penal provisions under Article 288 of the Labor Code.
It took effect on March 22, 1998 when RA 8558 went into force, though the order was adopted on 04 May 1998.