AN ACT AMENDING ARTICLE 287 OF PRESIDENTIAL DECREE NO. 442

Case Overview and Summary

Summary of Republic Act No. 8558

Amends Article 287 of the Labor Code of the Philippines on Retirement:

- Retirement Age and Benefits:
    • Employees may retire upon reaching the retirement age set in the collective bargaining agreement or employment contract. (Section 1)
    • Retirement benefits shall not be less than those provided in the law. (Section 1)

- Retirement Pay for Employees without Retirement Plan:
    • At age 60-65 years, with at least 5 years of service, entitled to retirement pay equivalent to at least 1/2 month salary for every year of service. (Section 1)
    • 1/2 month salary = 15 days + 1/12 of 13th month pay + cash equivalent of up to 5 days of service incentive leaves. (Section 1)

- Underground Mine Workers:
    • At age 50-60 years, with at least 5 years as underground mine worker, entitled to retirement benefits provided in the law. (Section 1)

- Exemptions:
    • Retail, service, and agricultural establishments with not more than 10 employees are exempted. (Section 1)

- Penalties:
    • Violation of the law is unlawful and subject to penal provisions under Article 288 of the Labor Code. (Section 1)

- Effectivity:
    • The law takes effect 15 days after publication in the Official Gazette or two national newspapers, whichever comes earlier. (Section 2)