Entitlement to Retirement Benefits
- Employees retiring are entitled to retirement benefits earned under laws, collective agreements, or other applicable contracts.
- Retirement benefits under collective bargaining agreements cannot be less than those established by law.
Retirement Pay Computation and Components
- Retirement pay for employees retiring at compulsory age (60 to 65 years) with at least five years service is at least one-half (1/2) month salary per year of service.
- A fraction of at least six (6) months of service is considered as a whole year for computation.
- "One-half month salary" includes fifteen (15) days pay, one-twelfth (1/12) of the 13th month pay, and cash equivalent of up to five (5) days of service incentive leave.
Specific Provisions for Underground Mine Workers
- Underground mine workers may retire at fifty (50) years or older but before sixty (60) years.
- They must have served at least five (5) years in underground mining work.
- Entitled to the same retirement benefits as other employees under this Article.
Scope and Exemptions
- Retail, service, and agricultural establishments with not more than ten (10) employees are exempt from these retirement provisions.
Legal Enforcement and Penalties
- Violation of the retirement provisions constitutes an unlawful act.
- Penalties for violations are governed by Article 288 of the Labor Code.
Preservation of Other Employee Benefits
- Nothing in the Article extinguishes other benefits the employee is entitled to under existing laws or company policies.
Effectivity
- The Act takes effect fifteen (15) days after publication in the Official Gazette or two national newspapers, whichever occurs first.