About Republic Act 7641 (R.A. 7641)

        Republic Act No. 7641 made it mandatory for all private employers (with certain exceptions) to provide retirement benefits to employees who, upon reaching the age of sixty (60) years or more, but not beyond sixty-five (65) years, have served at least five (5) years in the said establishment. The amount of retirement benefit was defined as "...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." Furthermore, "one-half month salary" was defined to include all of the following:

                 (A) Fifteen (15) days salary of the employee based on his latest salary   rate;

                 (B) The cash equivalent of five (5) days of service incentive leave;

                 (C) One-twelfth (1/12) of the 13th month pay due the employee, and

                 (D) All other benefits that the employer and employee may agree upon that  should be included in the computation of the employee's retirement pay

          The above minimum benefit is also applicable to early or optional retirement benefits whenever these are provided in a retirement plan.

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