Impormasyon

It is a lump-sum payment given to an employee who has worked for a considerable period and retires. It is also called retirement allowance, retirement consolation payment, retirement merit compensation, etc. The Labor Standards Act stipulates the minimum standard that the employer shall pay the employee an average wage of 30 days or more per year of continuous service as retirement pay (Labor Standards Act Article 34). Regarding the nature of retirement pay, there are theories such as merit compensation theory, deferred wage theory, and livelihood security theory, but the theories and precedents in our country adopt the deferred wage theory. The basic position of this theory is that retirement pay is a posthumous payment at the time of retirement of wages that were not paid to the employee.