Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. 2723

Introduced by REP. RODOLFO “OMPONG” M. ORDANES

AN ACT
AMENDING ARTICLE 302 OF PRESIDENTIAL DECREE NO. 442, OTHERWISE
KNOWN AS THE “LABOR CODE OF THE PHILIPPINES”, AS AMENDED, TO
REMOVE COMPULSORY RETIREMENT BASED ON AGE

EXPLANATORY NOTE

The 1987 Constitution mandates the State to give full respect to the dignity of every
human person and to uphold the right of all citizens to equal protection of the law. It
also directs the State to prioritize the needs of the underprivileged, including senior
citizens, in all phases of national development.

Currently, under Article 302 of the Labor Code of the Philippines, the compulsory
retirement age is set at sixty-five (65) years old. While this policy was initially intended
to make room for younger members of the workforce, it has also unintentionally
restricted the rights of senior citizens who are still physically and mentally capable of
gainful employment.

This bill seeks to amend Article 302 to remove the blanket imposition of compulsory
retirement at age sixty-five (65) and instead allow senior citizens to decide whether
they wish to continue working, provided that they remain fit for their duties and meet
the bona fide occupational qualifications of their position. The burden of proving
otherwise rests with the employer.

In an era where people live longer, healthier lives, and in the context of economic
pressures that require continued employment, many senior citizens wish to remain
productive beyond the age of sixty-five (65). Mandatory retirement based solely on
age disregards the individual capacity, experience, and willingness of senior citizens
to contribute meaningfully to society and the economy.


This measure not only promotes the right to equal opportunity in employment but
also aligns with our nation’s goals of inclusivity, productivity, and respect for the
elderly.

Given the foregoing, the immediate passage of this bill is earnestly sought.

RODOLFO “OMPO} M. ORDANES


weraunene

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

2723

HOUSE BILL NO.

Introduced by REP. RODOLFO “OMPONG” M. ORDANES:

AN ACT
AMENDING ARTICLE 302 OF PRESIDENTIAL DECREE NO. 442, OTHERWISE
KNOWN AS THE “LABOR CODE OF THE PHILIPPINES”, AS AMENDED, TO
REMOVE COMPULSORY RETIREMENT BASED ON AGE

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Declaration of Policy. - It is the declared policy of the State to give
full respect to the dignity of every human person and to uphold the right of all citizens
to equal protection of the law. In line with this, the State shall promote and protect the
right of senior citizens to freely determine the length of their productive participation
in the labor force, without discrimination based solely on age. The State also
recognizes the valuable contributions of the elderly and shall prioritize their needs in
all phases of national development, consistent with the principles of social justice and
inclusivity.

‘SEC. 2. Article 302 of Presidential Decree No. 442, as amended, otherwise known
as the “Labor Code of the Philippines”, is hereby amended to read as follows:

“Art. 302. 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.


CaN anuerene

int
12
13
4
15
16
7
18
19

BRERRRREBRRB

30
31

“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-net-beyond

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 (1)
whole year.
Xxx

“AN EMPLOYEE WHO REACHES THE AGE OF SIXTY-FIVE
(65) YEARS SHALL NOT BE MANDATORILY RETIRED SOLELY
ON THE BASIS OF AGE AND MAY CHOOSE TO CONTINUE
THEIR EMPLOYMENT, PROVIDED THAT THEY REMAIN
QUALIFIED UNDER THE BONA FIDE OCCUPATIONAL
QUALIFICATIONS OF THEIR JOB. THE BURDEN OF PROOF TO
JUSTIFY ANY LIMITATION OR TERMINATION BASED ON
AGE SHALL REST WITH THE EMPLOYER.”

Xxx.

SEC. 3, Repealing Clause. - All law, executive orders, rules, and regulations or
any part thereof inconsistent herewith are deemed repealed or modified accordingly.
SEC. 4. Separability Clause. - If any part or provision of this Act shall be
declared unconstitutional and invalid, such declaration shall not invalidate other parts
thereof, which shall remain in full force and effect.
SEC. 5. Transitory Provision. ~ Nothing in this Act shall affect existing
retirement contracts or benefits already granted prior to the effectivity of this Act.
SEC. 6. Effectivity. - This Act shall take effect fifteen (15) days after its complete
publication in the Official Gazette or in at least two (2) newspapers of general
circulation, whichever comes earlier.

Approved,