Are all establishments mandated to provide retirement benefits to their eligible retiring employees?
While the law mandates retirement pay for most private sector employees, it provides specific exemptions for certain small businesses,. Retail, service, and agricultural establishments are not required to provide these mandatory retirement benefits if they meet a specific size criteria. To qualify for this exemption, the establishment or operation must employ not more than ten employees or workers. This exemption helps small businesses that might struggle with the financial burden of statutory retirement pay. This rule is specified under Article 302 Labor Code of the Philippines. “Retail, service and agricultural establishments or operations employing not more than ten (10) employees or workers are exempted from the coverage of this provision.” 02-Jun-26About Nicolas and De Vega Law Offices
Nicolas and De Vega Law Offices is a full-service law firm in the Philippines. You may visit us at the 16th Flr., Suite 1607 AIC Burgundy Empire Tower, ADB Ave., Ortigas Center, 1605 Pasig City, Metro Manila, Philippines. You may also call us at +632 84706126, +632 84706130, +632 84016392 or e-mail us at [email protected]. Visit our website https://ndvlaw.com/.
