R.A. NO. 7641 as amended by R.A. NO.

8558 - RETIREMENT PAY (Separate from the retirement benefit from SSS)
GENERAL RULE PART-TIME UNDERGROUND/SURFACE MINE RACEHORSE Kasambahay / Person in the CBA WORKERS PAID BY
WORKERS EE JOCKEYS Personal Service of Another RESULTS
COVERAGE/ AGE 60 yrs old ≤ EE ≤ 65 yrs old See General Rule (RA 8558, -as
Compulsory amended
not by RAold
beyond 60yrs 10757) COMPULSORY - 55 yrs See General Rule and Retirement age established See General Rule
CONDITIONS (Optional ≤ EE ≤ Compulsory) Optional - upon reaching 50yrs old D.O. No. 20 s. 1994 in the CBA / other applicable
TO BE MET SERVICE At least 5yrs (below 65 yrs old) At least 5 yrs as such EE At least 5yrs as such EE contract
Other No retirement Miner - those employed to extract Jockey has paid
Conditions plan between ER- mineral deposits underground/ in the additional premium to
EE surface or to work in excavations, the SSS
whether abandoned or in use, to search
and extract mineral deposits.
Surface mine workers only include
mill plant workers, electrical, mechanical
& tailings pond personnel
EMPLOYEES NOT * Government Employees
COVERED * EEs of Retail, Service & Agricultural establishmets/operations regularly employing NOT more than 10 Employees
AMOUNT OF *Equivalent to 1/2 mo. salary for every year of service *Retirement benefit accdg. 1/2 MONTH SALARY
RETIREMENT PAY to CBA / Contract = AVE. DAILY SALARY (ADS)
*NOTE: + Cash equiv. of 5 days SIL
A fraction of at least 6 months of service is considered as 1 whole year *CBA/ Contract retirement + 1/12 of 13th month pay
COLA NOT included in computation of retirement pay benefit shall NOT be less
than the retirement pay ADS = Total salary or earnings
1/2 MONTH SALARY required under RA 7641 for the last 12 mos. from the
= 15 days salary based on the latest salary rate + Cash equivalent of 5 days of SIL + 1/12 of 13th month pay (1/12 x 365/12 = 2.5 days) date of retirement / No. of
= 15 + 5 + 2.5 *If retirement benefit under actual working days in that
= 22.5 days the agreement is lesser, ER particular period
shall pay the difference
MIN. RETIREMENT PAY PROVIDED, determination of
= Daily rate x 22.5 days x No. of Years in Service rates of payment by results are
in accordance with established
regulations
OTHER RETIREMENT The proportionate 13th month pay for the CY and to the cash equivalent of accrued leave benefits
BENEFITS
EXEMPTION COVERAGE a. Retirement Benefits received under RA 7641; and
FROM b. Those received by officials and employees of private firms in accordance with a reasonable private benefit plan maintained by the ER
INCOME TAX
(Tax Code) Other 1. Retiring official/EE has been in the service of the ER at least 10 years in service and is not less than 50 years of age at time of retirement; and
Conditions 2. Income tax exemption can be availed of only ONCE

Can ER stipulate lower retirement age? YES. If it is based on CBA or other applicable employment contract