DOLE issues IRR on retirement rules for surface mine workers

MANILA, Philippines - Surface mine workers nationwide can now opt to retire at the age of 50 and get  their mandated retirement benefits.

Labor Secretary Silvestre Bello said the  Department of Labor and Employment (DOLE) has already issued the necessary implementing rules and regulations (IRR) on a law reducing the retirement age of mine workers.

Under the newly issued IRR, Bello said surface mine workers who have served for at least five years or more can already retire upon reaching the age of 50.

Bello said if there is no existing plan or agreement between employee and employer, the surface mine worker shall be mandatorily retired upon reaching the age of 60.

The minimum length of service of at least five years required for entitlement  pay shall include authorized absences, vacations, holidays and mandatory fulfillment of military or civic duty.

Bello said any surface mine employee may also retire or be retired upon reaching the retirement age established in the collective bargaining agreement or other applicable employment contract.

Surface mine employees, Bello said, shall be entitled to receive retirement benefits as he or she may have carried under existing law, any CBA and other agreement provided it is not less than under the new IRR.

“If such benefits are less, the employer shall pay the difference between the amount due to the employee under this rule and that provided under CBA or other applicable employment contract,” Bello said.

“Where both employer and employee contribute to a retirement fund in accordance with a CBA,  the employers’ total contribution shall not be less than total retirement benefits to which the employee would been entitled had there been no retirement fund,” he said.

The IRR covers surface mine workers, including mill plant workers, electrical, mechanical and tailings pond personnel.

In the absence of a contract, Bello said, a surface mine workers  shall be entitled to retirement pay equivalent to at least one-half month salary for every year of service.

The term salary includes all renumeration paid by the employer during the normal working day and does not include Cost of Living Allowance (COLA), profit sharing payment and other monetary benefits which are not considered as part of an integrated regular salary of employee.

For workers who are paid by results and do have fixed salary, the basis of determination of salary shall be the average daily salary for the last 12 months divided by the number of actual working days.

Upon retirement, surface mine workers are also entitled to benefits under the  Social Security System (SSS). All payment made by  SSS are exempt from taxes, fees or charges.