Bureau of Labor Relations 3rd Floor DOLE Building Muralla Street Intramuros, Manila
Attention: HON. TERESITA S. CUCUECO
Director IV Bureau of Working Conditions
Re: “Retirement Benefits”
Dear Director Cucueco:
We respectfully request your opinion/position on the following query relative to Republic
Act No. 4917 (AN ACT PROVIDING THAT RETIREMENT BENEFITS OF EMPLOYEES OF A PRIVATE FIRMS SHALL NOT BE SUBJECT TO ATTACHMENT, LEVY, EXECUTION OR ANY TAX WHATSOVER).
1. Can a resigning employee who is entitled to retirement
benefits under his employer’s retirement plan avail thereof tax free?
2. Will the provision under RA 4917 in this regard apply even
if the employer’s retirement plan does not explicitly provide that the retirement benefit is tax free?