Default Retirement Age and Retirement Pay
- In establishments without retirement plans or agreements, employees aged between 60 and 65 (compulsory retirement age) who have served at least 5 years may retire.
- Such employees are entitled to retirement pay equivalent to at least one-half (1/2) month salary for every year of service.
- A fraction of at least six (6) months is considered as one whole year.
Definition of One-Half Month Salary for Retirement Pay
- One-half month salary means 15 days' pay plus one-twelfth (1/12) of the 13th month pay and cash equivalent of not more than 5 days of service incentive leave.
- Parties may agree to broader inclusions beyond this.
Special Provisions for Underground Mine Workers
- Retirement age for underground mine workers is reduced to between 50 and 60 years, where 60 is the compulsory retirement age.
- Underground miners with at least 5 years of service may retire at 50 years or older.
- They are entitled to all retirement benefits as specified in this Article.
Exemptions
- Retail, service, and agricultural establishments employing not more than 10 employees are exempt from these retirement provisions.
Penalties and Legal Enforcement
- Violation of this provision is unlawful and punishable under Article 288 of the Labor Code.
Preservation of Additional Benefits
- Employees are not deprived of benefits to which they are entitled under other laws or company policies.
Effectivity
- The Act takes effect 15 days after publication in the Official Gazette or in two national newspapers, whichever is earlier.