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FOURTEEMTH CONGRESS OF THE REPUBLIC 
)i,c, 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
7 ' JUN 30 P3 :uz 
S E N A T E  
Senate Bill No. 
17 9 
nEeEIVED BY : 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
In the absence of a retirement plan, employment contract, or collective 
bargaining agreement prescribing a retirement age for employees, the Labor 
Code provides that an employee upon reaching the age of sixty (60) years or 
more, but not beyond sixty-five (65) years, which is declared as the compulsory 
retirement age, who has served at least five (5) years'in the said establishment, 
may retire. They 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. 
However, certain classes of employees should be allowed to retire at a 
younger age; and in fact, they should be mandatorily retired upon reaching a 
certain age because requiring them to continue with their employment may be 
either hazardous to their health, prejudicial to the viability of the establishment 
they served, dangerous for their employers' clients, or inimical to public safety. 
The Labor Code already provides for the earlier retirement of underground 
mining employees. Upon reaching the age of fifty (50) years or more, but not 
beyond sixty (60) years, which is declared as the compulsory retirement age for 
underground mine workers, they may retire and shall be entitled to all the 
retirement benefits under the law. 
This bill seeks to afford other em'ployees who are. similarly situated as 
underground mine workers an earlier retirement age pursuant to the tenets of 
social justice and public safety. 
a 
Hence, the immediate passage of this bill is therefore earnestly solicited: 


FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
7 JluJ 30 P3:0., 
S E N A T E  
Senate Bill No. 179 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
AMENDING ARTICLE 287 OF PRESIDENTIAL DECREE NO. 442, AS 
AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE 
PHILIPPINES, BY PROVIDING AN EARLIER AGE OF RETIREMENT FOR 
CERTAIN C1.ASSES OF EMPLOYEES 
He it enacted by the Senate and House of Represenfafives of the Philippines in 
Congress assembled: 
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 (1112) of 
the 13th month pay and the cash equivalent of not more than five (5) days 
of service incentive leaves. 
, 
"An underground mining employee upon reaching the age of fifty 
(50) years or more, but not beyond sixty (60) years which is hereby 
declared the compulsory retirement age for underground mine workers, 
who has served at least five (5) years as underground mine worker, may 


retire and shall be entitled to all the retirement benefits provided for in this 
Article. PROVIDED THAT THE SECRETARY OF LABOR AND 
EMPLOYMENT SHALL, THROUGH THE APPROPRIATE RULES AND 
REGULATIONS, 
DETERMINE 
SUCH 
OTHER 
CLASSES 
OF 
EMPLOYEES SIMILARLY SITUATED AS UNDERGROUND MINING 
EMPLOYEES, WHO MAY AVAIL OF THE EARLiER RETIREMENT AGE 
PROVISION INTENDED FOR UNDERGROUND MINING EMPLOYEES. 
PROVIDED FURTHER THAT THE SECRETARY MAY USE OTHER 
REASONABLE CRITERIA, SUCH AS PERSONAL AND PUBLIC HEALTH 
AND SAFETY CONSIDERATIONS, IN DETERMINING SUCH OTHER 
CLASSES OF ENTITLED EMPLOYEES. 
"Retail, service and agricultural establishments or operations 
employing not more than ten (IO) employees Qr 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. 
"Nothing in this Article shall deprive any employee of benefits to 
which he may be entitled under existing laws or company policies or 
practices." 
SECTION 2. This Act shall take effect fifteen (15) days after its complete 
publication in the Official Gazette or in at least two (2) national papers of general 
circulation, whichever comes earlier. 
Approved,