Dear PAO,
I have a question regarding the retirement age for my employment. I have been a surface mining employee or “mill plant worker” in our company since 2002, and I plan to retire this year. Currently, I am 52 years old, and I asked our Human Resources Division if I can retire this year. They replied in the negative and told me that I should wait until I reached 55 years old. I believe that I can retire as early as 50 years old. Can you enlighten me on this matter?
Hilbert
Dear Hilbert,
Employees in the mining industry face numerous hazards and risks that are not only unavoidable but, at times, unimaginable. These dangers not only jeopardize their physical well-being but also pose significant threats to their overall health and, ultimately, their lives.
Given the demanding and perilous nature of mining work, it is essential to consider measures to protect these workers. One solution is to lower the retirement age for those employed in mining. This adjustment would recognize the unique challenges they face on a daily basis and ensure that they can retire before the cumulative effects of their working conditions take a toll on their health. By prioritizing the well-being of mining workers in this way, we can acknowledge their contributions while also fostering a safer and healthier work environment.
In the year 1998, a law was passed to reduce the retirement age of an underground mining employee from 60 years old to 50 years old. The said law was RA 8558, which amended Article 287 of Presidential Decree 442, otherwise known as the Labor Code of the Philippines. This amendment, however, indirectly left out surface mine employees who are similarly exposed to the hazardous elements and risks as their jobs include sorting out the minerals extracted from the mining pits as well as maintaining the electrical and mechanical equipment and fixtures in the mining sites. Hence, RA 10757 was passed in the year 2016 for fairness among the mining employees. This law amended Article 302 of the Labor Code of the Philippines. It included the surface mine employees in the reduction of the retirement age from 60 years old to 50 years old, viz.:
“Article 302. 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 (1) 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 or surface 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 both underground and surface mine workers, who has served at least five (5) years as underground or surface mine worker may retire and shall be entitled to all the retirement benefits provided for in this Article.
“For purposes of this Act, surface mine workers shall only include mill plant workers, electrical, mechanical and tailings pond personnel. xxx”
In the situation you mentioned, you may retire this year even though you are 52 years old only. It is clear in our law, as mentioned above, that a mining employee, whether surface or underground, who has served at least five (5) years may retire upon reaching the age of fifty (50) years and shall be entitled to all the retirement benefits.
We hope that we were able to answer your queries. Please be reminded that this advice is based solely on the facts you have narrated and our application of the same. Our opinion may vary when other facts are changed or elaborated.
Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected]
