Dear Attorney,

I have been employed with my company for over 13 years and would like to inquire if I am entitled to retirement pay. I have not received any such compensation upon my retirement. Could you please provide clarification on my rights and what steps I can take to claim any retirement benefits due to me?

Sincerely,
A Long-Term Employee

Insights

Under Philippine law, retirement benefits are governed by Article 287 of the Labor Code, as amended by Republic Act No. 7641. Employees who have rendered at least five (5) years of service, and who meet the age or conditions set forth by the law or company policy, are entitled to receive retirement pay. In the absence of a company retirement plan, the law prescribes that employees, upon reaching the age of 60 but not beyond 65, should be paid a retirement benefit equivalent to at least one-half month’s salary for every year of service.

The term "one-half month salary" includes the following:

Fifteen (15) days’ worth of salary;
The cash equivalent of five (5) days of service incentive leave;
One-twelfth (1/12) of the employee’s 13th-month pay.

For establishments with less than ten (10) employees, however, the employer may be exempt from paying the statutory retirement benefits under the Labor Code.

If the employer has failed to provide these benefits, the employee may file a complaint with the National Labor Relations Commission (NLRC) or seek assistance from the Department of Labor and Employment (DOLE) for mediation and possible settlement.