Is it still required to follow the DOLE Implementing Rules on R.A. 7641 in Computing retirement benefits?
In computing retirement benefits, it is no longer required to follow the DOLE Implementing Rules on R.A. 7641, which interpreted the law to mean more or less 22.5 working days for every year of service. The National Labor Relations Commission, in 2 resolutions issued last August 29, 1996 in Alita v. Dominican School NLRC NCR CA No. 009555-95 and last August 30, 2002 in Lavandera v. Grace Christian High School NLRC NCR CA No. 031379-02, clarified that the lump sum retirement pay under R.A. 7641 is still one-half-month for every year of service, the half-month consisting of (a) the salary for fifteen (15) calendar days (not working days), (b) one-twelfth (1/12) of the cash equivalent of the five (5) days service incentive leave, and (c) one-twelfth (1/12) of the 13th month pay.
