What is the compulsory retirement age for an employee in the absence of a specific retirement plan or agreement?

The law provides default rules for the retirement of employees if the establishment lacks a formal retirement plan or collective bargaining agreement. An employee who has served at least five years in the establishment may optionally retire upon reaching the age of sixty. However, the law declares the age of sixty-five as the absolute compulsory retirement age for standard private sector employees. Upon reaching this age, they are entitled to a retirement pay equivalent to at least one-half month salary for every year of service. This compulsory retirement framework is detailed in Article 302 Labor Code of the Philippines. “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 whole year.” 02-Jun-26

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