Republic of the Philippines

Congress of the Philippines

Metro Manila
Ninth Congress
Republic Act No. 7641 December 9 199!
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.e it enacte3 b4 the *enate an3 +ouse of Representati5es of the Philippines in Congress
assemble366
*ection 1. Article !'7 of Presi3ential Decree No. 44! as amen3e3 other7ise 8no7n as the &abor
Co3e of the Philippines is hereb4 amen3e3 to rea3 as follo7s6
9Art. !'7. Retirement. : An4 emplo4ee ma4 be retire3 upon reaching the retirement age
establishe3 in the collecti5e bargaining agreement or other applicable emplo4ment contract.
9$n case of retirement the emplo4ee shall be entitle3 to recei5e such retirement benefits as he
ma4 ha5e earne3 un3er e;isting la7s an3 an4 collecti5e bargaining agreement an3 other
agreements6 Pro5i3e3 ho7e5er "hat an emplo4ee<s retirement benefits un3er an4 collecti5e
bargaining an3 other agreements shall not be less than those pro5i3e3 herein.
9$n the absence of a retirement plan or agreement pro5i3ing for retirement benefits of emplo4ees
in the establishment an emplo4ee upon reaching the age of si;t4 =6>? 4ears or more but not
be4on3 si;t4@fi5e =6A? 4ears 7hich is hereb4 3eclare3 the compulsor4 retirement age 7ho has
ser5e3 at least fi5e =A? 4ears in the sai3 establishment ma4 retire an3 shall be entitle3 to
retirement pa4 eBui5alent to at least one@half =1C!? month salar4 for e5er4 4ear of ser5ice a
fraction of at least si; =6? months being consi3ere3 as one 7hole 4ear.
92nless the parties pro5i3e for broa3er inclusions the term one@half =1C!? month salar4 shall
mean fifteen =1A? 3a4s plus one@t7elfth =1C1!? of the 1Dth month pa4 an3 the cash eBui5alent of
not more than fi5e =A? 3a4s of ser5ice incenti5e lea5es.
9Retail ser5ice an3 agricultural establishments or operations emplo4ing not more than =1>?
emplo4ees or 7or8ers are e;empte3 from the co5erage of this pro5ision.
90iolation of this pro5ision is hereb4 3eclare3 unla7ful an3 subEect to the penal pro5isions
pro5i3e3 un3er Article !'' of this Co3e.9
*ection !. Nothing in this Act shall 3epri5e an4 emplo4ee of benefits to 7hich he ma4 be entitle3
un3er e;isting la7s or compan4 policies or practices.
*ection D. "his Act shall ta8e effect fifteen =1A? 3a4s after its complete publication in the (fficial
%aFette or in at least t7o =!? national ne7spapers of general circulation 7hiche5er comes earlier.
Appro5e36 December 9 199!.la7phi1G