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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
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First Regular Session 
SENATE 
Senate Bill No. 1 0 6 2 
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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 employees who are similarly situated as 
underground mine workers an earlier retirement age pursuant to the tenets of 
social justice and public safety. 
Hence, the immediate passage of this bill is therefore earnestly solicited. 
GOY EJERCITO ESTRADA 
Senator 


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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
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First Regular Session 
SENATE 
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Senate Bill No. 1 0 6 2 
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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 CLASSES OF EMPLOYEES 
Be it enacted by the Senate and House of Representatives 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 (1/12) 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 (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. 
"Nothing in this Article shall deprive any employee of 
benefits to which he may be entitled under existing laws or 
company policies or 
practices." 
SEC. 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,