https://laborlaw.ph/retirement-pay/

Hello. I'd like to clarify something about this law please.

Retirement pay is an additional pay provided to a covered employee who is retiring. In the private sector, the ½ month pay in retirement pay is equivalent to 22.5 days. Retirement pay requires at least five (5) years of service. Retirement is optional at sixty (60) years old, while mandatory at sixty-five (65) years old.

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.

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.

1. Does this apply to all businesses operating locally? Be it a small retailer or a large MNC?
2. Is this supposed to be an alternative to retirement plans (like the US' 401k) or does it still apply even if the company offers said retirement plan, i.e. I get the benefit of the plan and a retirement pay?

Idk if the flair is correct, since ang dami kong tanong, rant, at need ng tips from you guys most especially from people who have years of work experiences. But please I need your answers and matino po sana. Much appreciated and thank you very much if mero'n po!

For starters, I was recently hired as automotive sales (probation) 2 weeks ago from this not very known local/filipino engineering and automation company. Sa sobrang hirap ng job market ngayon grinab ko na talaga.

First week ko palang pero feel ko na toxic side ng office namin. You heard that right, office lang namin. Very jerk head manager na kahit small thing lang for everyone super big deal for him at galit na galit sya sakin 2 days after I got hired and already gave anxiety if ever I need to speak or ask on something again. Sobrang tahimik sa office, tipong kabilang cubicle lang need mo pa i-gmail dm mga inquiries mo. Kapag may tanong ka naman, nasasagot naman pero 'yung tipong piling araw lang dipende pa sa mood. Imagine my supervisor just inboxed my inquiries 4 days from now at lastly I feel like I don't belong. So I feel like even for the shortest period of time there, I want to quit already.

But then time came on Monday that someone messaged me on my gmail if I'm interested in their company's position which is really related to my degree which is about financial/banking research. I immediately said I'm interested then they already scheduled me for an initial interview this Friday through online and I already planned to take leave that day. My big issue naman on this one was when I fill their application form, I put that I was employed and needed to render at least 30 days which I shouldn't put kasi nga 'di ba almost 3 weeks palang ako huhu. Idk if they will ask me that on Friday but if ever Idk if I'm going to be honest cuz I know that will affect my application with them and might have a high chance na 'di ako ipasa to the next steps.

Please, I don't want to stay in my company na. Taena nakapag bpo naman ako pero 'di naman 'yung tipong ganito ka-toxic. Totoo pala talaga na iba environment sa mga Filipino owned companies, hindi ko nilalahat pero I'm already experiencing it right now in my current.

Again, tips and answers would be much appreciated and really meaningful to me po. Thank you!