REPUBLIC ACT NO. 7641
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
Be it enacted by the Senate and House of Representatives of the Philippines in the congress assembled:
SECTION 1. Article 287 of the 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 the 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 ten (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.
REPUBLIC ACT NO. 4917
AN ACT PROVIDING THAT THE RETIREMENT BENEFITS OF EMPLOYEES OF PRIVATE FIRMS SHALL NOT BE SUBJECT TO ATTACHMENT, LEVY, EXECUTION, OR ANY WHATSOEVER.
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
SECTION 1. Any provision of law to the contrary notwithstanding the retirement benefits receive by officials and employees of private firms, whether individual or corporate, in accordance with a reasonable private benefit plan maintained by the employer shall be exempt from all taxes and shall not be liable to attachment, garnishment, levy or seizure by or under any legal or equitable process whatsoever except to pay a debt of the official or employee concerned to the private benefit plan or that arising from liability imposed in criminal action: Provided: That the retiring official or employee has been in the service of the same employer for at least (10) years and it is not less than fifty years of age at the time of his retirement: Provided Further: That the benefits granted under this Act shall be availed of by an official or employee only once: Provided Finally: That in case of separation of an official or employee from the service of the employer due to death, sickness or other physical disability or for any cause beyond the control of the said official or employee, any amount received by him or by his heirs from the employer as a consequence of such separation shall likewise be exempt as hereinabove provided.
As used in this Act, the term “reasonable private benefit plan” means a pension, gratuity, stock bonus or profit sharing plan maintained by an employer for the benefit of some or all of his officials and employees wherein contributions are made by such employer or officials and employees, or both, for the purpose of distributing to such officials and employees the earnings and principal of the fund thus accumulated, and wherein it is provided in said plan that at no time shall any part of the corpus or income of the fund be used for or be diverted to any purpose other than for the exclusive benefit of the said officials and employees.
SECTION 2. This Act shall take effect upon its approval
Approved, June 17, 1967