Under Philippine law, retirement age is established through collective bargaining agreements (CBAs), employment contracts, or default ages in the Labor Code. CBAs and contracts can set retirement as early as age 50 based on years of service or a combination of age and tenure. For those without CBAs or contracts, voluntary retirement is between 60-65 years old with 5+ years of service, while compulsory retirement is at 65. Upon retirement, employees are entitled to retirement pay of at least half a month's salary for every year of service, with fractions of 6 months or more counting as a whole year.
Under Philippine law, retirement age is established through collective bargaining agreements (CBAs), employment contracts, or default ages in the Labor Code. CBAs and contracts can set retirement as early as age 50 based on years of service or a combination of age and tenure. For those without CBAs or contracts, voluntary retirement is between 60-65 years old with 5+ years of service, while compulsory retirement is at 65. Upon retirement, employees are entitled to retirement pay of at least half a month's salary for every year of service, with fractions of 6 months or more counting as a whole year.
Under Philippine law, retirement age is established through collective bargaining agreements (CBAs), employment contracts, or default ages in the Labor Code. CBAs and contracts can set retirement as early as age 50 based on years of service or a combination of age and tenure. For those without CBAs or contracts, voluntary retirement is between 60-65 years old with 5+ years of service, while compulsory retirement is at 65. Upon retirement, employees are entitled to retirement pay of at least half a month's salary for every year of service, with fractions of 6 months or more counting as a whole year.
Employee Discipline and Termination, Employee Wages and Benefits 2014-02-21
Retirement Age Retirement is one of the modes of termination of employment. By retirement, the employment is terminated when the employee has reached a certain age, or after he has completed a certain number of years of service. Under the Labor Code (Art. 287), an employee may be retired upon reaching the retirement age established in the collective bargaining agreement (CBA) or other applicable employment contract. In the absence of such agreement, the employee may retire upon reaching the age of 60 or more, but not more than 65, provided he has served at least 5 years or more in the same establishment. The age 60 or more, but below 65, is considered as the voluntary retirement age. Sixty-five is considered as the compulsory retirement age. A company may have CBA or employment contract setting a retirement age different (higher or lower) from that fixed by law. For example, the CBA may fix the retirement age at 50. The CBA or employment contract may also establish a retirement age based on years of service of the employee. For example, it may provide that the employee may be retired after 20 years of service. The retirement age may also be established based on the combination of the age and tenure of the employee. For example, the contract may provide that the employee may retire upon reaching the age of 50, or after 20 years of service, whichever comes earlier. For underground mining employees, the voluntary retirement age under the Labor Code is 50 years or more, but not beyond 60. The compulsory retirement age is set 60. It is important to note that the company cannot unilaterally fix the retirement age of employee. Retirement age may be established only by a valid CBA or employment contract, or in the absence of both, by the law. Another thing, the retirement age fixed by law applies only when no CBA or employment contract setting the retirement age exist. If there is such agreement or contract, the retirement age fixed by law wont apply. Retirement Pay If the establishment has a CBA or employment contract providing for a retirement plan or benefits to employees, the employee shall be entitled to receive the benefits as provided in the said CBA or contract. However, such benefits must not be less than that provided under the Labor Code. Under the Labor Code, the retirement pay is equivalent to at least one-half month salary for every year of service, a fraction of at least six months being considered as one whole year. The
term one-half month salary shall mean 15 days plus 1/12 of the 13th month pay and the cash equivalent of not more than 5 days of service incentive leaves.
Lorie Marie Tomas Callo vs. Commissioner Jaime H. Morente, Bureau of Immigration, OIC Associates Commissioners, Bureau of Immigration, and Brian Alas, Bureau of Immigration