COVERAGE

1. RA 8972 – The Solo Parents’

Welfare Act of 2000

2. RA 7641 - The Retirement

Pay Law

Solo Parents’ Welfare Act of 2000 (RA 8972)

What is the Solo Parents’ Welfare Act?

- Provides for benefits and privileges to solo

parents and their children.

- Aims to develop a comprehensive

package of social development and welfare

services for solo parents and their children.

When did RA 8972 take effect?

RA 8972 was signed into law on

November 7, 2000 and took effect on

November 28, 2000.

Its implementing rules and regulations

(IRR) was approved in April 2002.

Who are considered as solo

parent?

Solo Parent is any individual who falls under

any of the following categories:

1. A woman who gives birth as a result of

rape and other crimes against chastity

even without a final conviction of the

offender, provided that mother keeps and

raises the child.

2. Parent left solo or alone with the

responsibility of parenthood due to the

following circumstances:

a. Due to death of spouse

b. Spouse is detained or is serving sentence

c. Physical or mental incapacity of spouse

d. Legal or de facto separation from spouse

e. Declaration of nullity or annulment of marriage

3. Unmarried mother/father who has preferred

to keep and rear her/his child/children instead

of having others care for them or give them up

to a welfare institution..

4. Any other person who solely provides

parental care and support to a child or

children. (foster parent or legal guardian)

5. Any family member who assumes the

responsibility of head of family as a result of

the death, abandonment, disappearance or

prolonged absence of the parents or solo

parent.

What are the benefits available

to a solo parent?

a. Flexible work schedule;

b. Parental leave of not more than seven (7)

working days;

c. Educational benefits;

d. Housing benefits on liberal terms in low-

cost government housing; and

e. Medical Assistance.

What is Flexible Work-schedule?

is the right granted to a solo parent

employee to vary his/her arrival and

departure time without affecting the

core work hours as defined by the

employer;

What is Parental leave?

• leave benefits granted to a solo parent to

enable him/her to perform parental duties

and responsibilities where physical

presence is required.

• Not more than 7 working days every year;

• Non-cumulative;

• Not convertible to cash, if unused.

What are the conditions to be

entitled to parental leave?

a. have rendered at least 1 year of service,

whether continuous or broken.

b. give prior notice to the employer within

reasonable time period; and

c. present his Solo Parent ID Card to the

employer.

Housing benefits

• given allocation in government low-cost

housing projects on liberal terms of

payment.

Conditions:

a. meet the qualification criteria for housing

assistance under the Urban Development

and Housing Act.

b. file directly with NHA projects offices.

Educational benefits

(a) Scholarship programs for qualified solo

parents and their children in institutions of

basic, tertiary and technical/skills

education;

(b) Non-formal education programs

appropriate for solo parents and their

children.

Educational benefits

(a) Scholarship programs for qualified solo

parents and their children in institutions of

basic, tertiary and technical/skills

education;

(b) Non-formal education programs

appropriate for solo parents and their

children.

Medical Assistance

Only solo parents whose income are below

the poverty threshold as set by NEDA are

eligible.

Procedure in Accessing Services

a. Visit the Social Welfare and Development office to

manifest need for assistance;

b. Fill up application form

c. Undergo Assessment process

d. Social Worker to prepare a Social Case

Study Report

e. Forward study report with referral to the

concerned agency.

f. Issuance of Solo Parent ID Card within 30 days

Procedure in Accessing Services

f. Issuance of Solo Parent ID Card within 30 days

. Fill up application form

c. Undergo Assessment process

d. Social Worker to prepare a Social Case

Study Report

e. Forward study report with referral to

concerned agency.

RETIREMENT PAY LAW

(RA 7641)

enacted on 09 December 1992

A. withdrawal from one's position or

occupation or from active working life

B. The period of a person's life during

which he/she is no longer working, or

the commencement of that period.

RETIREMENT

DEFINED:

GENERAL RULE: R.A. 7641

a. OPTIONAL at 60 years with

minimum 5 years of service

b. MANDATORY at 65 years,

no service requirement

EXCEPTION: Where the company provides

for a Retirement Plan with

earlier retirement age, then the

company’s Retirement Plan will apply

GENERAL RULE: R.A. 7641

½ month for every year of service

EXCEPTION: Where the company provides for a

Retirement Plan with better benefits,

then the company’s Retirement Plan

will apply

1. WHO MAY BENEFIT?

• ALL EMPLOYEES IN THE PRIVATE COMPANY,

REGARDLESS OF POSITION AND CLASSIFICATION. They shall include part-time employees, employees of service and other job contractors and domestic helpers or persons in personal service of another.

2. WHO MAY NOT BENEFIT?

• GOVERNMENT EMPLOYEES

• EMPLOYEES OF RETAIL AND AGRICULTURAL

ESTABLISHMENTS EMPLOYING TEN OR LESS

EMPLOYEES

3. PARAMETERS FOR AVAILMENT

• MANDATORY AT 65 YEARS OF AGE, NO

SERVICE REQUIREMENT

• OPTIONAL AT AGE 60, WITH FIVE (5) YEARS

SERVICE REQUIREMENT

• IF COMPLIED WITH, BENEFITS ARE TAX-EXEMPT.

HOW MUCH IS THE BENEFIT?

4.1 FOR THOSE PAID REGULARLY -- ONE-HALF

MONTH SALARY COMPUTED AT 22.5 DAYS PER

CAPITOL WIRELESS VS. CONFESOR CASE. (REITERATED IN STA. CATALINA SCHOOL VS. NLRC 2003 CASE)

• Components of one-half month salary = 15 days x latest salary per day)

+ 5 days leave x latest salary per day)

+ 1/12 of 13th month pay

+ All other benefits that the employer and

employee may agree upon that should be included

in the computation of the employee’s retirement

pay.

IS THE RETIREMENT PAY UNDER RA

7641 TAX-EXEMPT?

YES, any retiree who satisfies the requirements

of R.A. No. 7641 (retirement under a CBA or

other applicable employment, and service for at

least five years) is entitled to the tax exemption, • even if he is a member of a reasonable private benefit

plan established by his employer and approved by the

BIR, • PROVIDED that the retirement benefit he receives

from the Plan is equal to or less than the minimum

requirement benefit provided by R.A. No. 7641

REQUIREMENTS FOR TAX

EXEMPTION UNDER RA 7641

• There is no collective bargaining agreement or

other applicable employment contract providing

for retirement benefits for an employee; OR there

is a collective bargaining agreement or other

applicable employment contract providing for

retirement benefits for an employee, but it is below

the requirements set for by law.

• Employees reached the age of 60 years or more,

but not beyond 65 years

• Employees rendered at least 5 years in service