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This webpage features the full text of
Republic
Act No. 7641
December 9, 1992
The Retirement Pay Law
_________________________
REPUBLIC
ACT NO. 7641
December
9, 1992
RETIREMENT
PAY LAW
AN ACT
AMENDING ARTICLE 287 OF PRESIDENTIAL DECREE NO. 442, AS AMENDED,
OTHERWISE
KNOWN AS THE LABOR CODE OF THE PHILIPPINES, BY PROVIDING FOR RETIREMENT
PAY TO QUALIFIED PRIVATE SECTOR EMPLOYEES IN THE ABSENCE OF ANY
RETIREMENT
PLAN IN THE ESTABLISHMENT
Section 1.
Article 287 of Presidential Decree No. 442, as amended, otherwise known
as the Labor Code of the Philippines, is hereby amended to read as
follows:
"Art.
287. Retirement. - Any employee may be
retired upon reaching the
retirement
age established in the collective bargaining agreement or other
applicable
employment contract.
"In case of
retirement, the employee shall be entitled to receive such retirement
benefits
as he may have earned under existing laws and any collective bargaining
agreement and other agreements: Provided, however, That an employee's
retirement
benefits under any collective bargaining and other agreements shall not
be less than those provided herein.
"In the
absence
of a retirement plan or agreement providing for retirement benefits of
employees in the establishment, an employee upon reaching the age of
sixty
(60) years or more, but not beyond sixty-five (65) years which is
hereby
declared the compulsory retirement age, who has served at least five
(5)
years in the said establishment, may retire and shall be 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 being considered as one
whole year.
"Unless the
parties provide for broader inclusions, the term one-half (1/2) month
salary
shall mean fifteen (15) days plus one-twelfth (1/12) of the 13th month
pay and the cash equivalent of not more than five (5) days of service
incentive
leaves.
"Retail,
service
and agricultural establishments or operations employing not more than
(10)
employees or workers are exempted from the coverage of this provision.
"Violation
of this provision is hereby declared unlawful and subject to the penal
provisions provided under Article 288 of this Code."
Sec. 2.
Nothing in this Act shall deprive any employee of benefits to which he
may be entitled under existing laws or company policies or practices.
Sec.
3.
This Act shall take effect fifteen (15) days after its complete
publication
in the Official Gazette or in at least two (2) national newspapers of
general
circulation, whichever comes earlier.
Approved:
December 9, 1992
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