Retirement Age Reduced for Surface Mine Workers

Section 2 amends Article 302 of Presidential Decree No. 442 (the Labor Code of the Philippines) on Retirement.
Section 2 provides that any employee may be retired upon reaching the retirement age established in the collective bargaining agreement or other applicable employment contract.
Section 2 requires that, in case of retirement, the employee is entitled to retirement benefits earned under existing laws and the collective bargaining agreement and other agreements.
Section 2 mandates that retirement benefits under collective bargaining and other agreements must not be less than those provided in Article 302.

Section 2 states that, absent a retirement plan or agreement providing retirement benefits in the establishment, an employee may retire upon reaching age sixty (60) years or more, but not beyond sixty-five (65) years, which is declared the compulsory retirement age.
Section 2 requires at least five (5) years of service in the establishment for retirement under the absence-of-plan rule.
Section 2 provides that the employee is entitled to retirement pay equivalent to 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 (1) whole year.

Section 2 defines that, unless the parties provide for broader inclusions, “one-half (1/2) month salary” means:
- fifteen (15) days; plus
- one-twelfth (1/12) of the 13th month pay; plus
- the cash equivalent of not more than five (5) days of service incentive leaves.

Section 2 establishes that an underground or surface mining employee may retire upon reaching age fifty (50) years or more, but not beyond sixty (60) years, which is declared the compulsory retirement age for both underground and surface mine workers.
Section 2 requires at least five (5) years as an underground or surface mine worker for retirement eligibility under the reduced retirement age rule.
Section 2 provides that the mine worker retiring under this rule shall be entitled to all the retirement benefits provided for in Article 302.
Section 2 provides that surface mine workers include mill plant workers, electrical, mechanical, and tailings pond personnel.

Section 2 exempts retail, service and agricultural establishments or operations employing not more than ten (10) employees or workers from the coverage of this provision.

Section 2 declares that violation of this provision is unlawful and is subject to the penal provisions provided under Article 302 of the Labor Code.

Section 2 states that nothing in the amended Article 302 deprives any employee of benefits to which the employee may be entitled under Section 12-B of Republic Act No. 1161 (the Social Security Act of 1997), as amended, and other existing laws or company policies or practices.

Section 3 provides that, for purposes of uniformity, the numerical designation of Title II (Retirement), Book Six of Presidential Decree No. 442 designated as Article 302 in Section 1 of the Act shall be renumbered in accordance with Republic Act No. 10151.
Section 3 provides renumbering will be promulgated by the Department of Labor and Employment in Department Advisory Order No. 01, series of 2015.

Section 4 directs the Secretary of Labor and Employment to promulgate necessary rules and regulations for effective implementation.
Section 4 requires consultation and coordination with the President of the Social Security System.
Section 4 sets a deadline of within thirty (30) days from the effectivity of the Act.

Section 5 amends Section 12-B of Republic Act No. 1161 (the Social Security Act of 1997) to entitle underground or surface mining employees to the benefits provided therein upon reaching the retirement age of fifty (50) years old.
Section 5 repeals or modifies all laws, decrees, executive orders, proclamations, rules and regulations, and other issuances or parts thereof inconsistent with the Act.

Section 6 provides that the Act takes effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation.
The Act was approved on April 08, 2016.
Republic Act No. 10757 is titled: “An Act Reducing the Retirement Age of Surface Mine Workers from Sixty (60) to Fifty (50) Years, Amending for the Purpose Article 302 of Presidential Decree No. 442, as Amended, Otherwise Known as the Labor Code of the Philippines.”