1) The short answer in Philippine terms

It depends. Under Philippine labor law, age 60 is generally the “optional” retirement age, while age 65 is the “compulsory” retirement age for employees in the private sector by default.

So:

If there is NO valid company retirement plan, collective bargaining agreement (CBA), or employment contract setting retirement at 60: An employer generally may NOT force an employee to retire at 60. The employee may choose to retire, but cannot typically be compelled.
If there IS a valid retirement plan/CBA/contract/company policy that clearly sets 60 as compulsory retirement (and it is lawful and properly implemented): Mandatory retirement at 60 can be legal.

The real legal question is not “Is 60 allowed?” but “Is there a valid, enforceable basis making 60 compulsory in this workplace for this employee?”

2) Governing law: the baseline rule in the Labor Code (private sector)

For private sector employees, the Labor Code (as amended, and as commonly applied) establishes:

Optional retirement: at least 60 years old
Compulsory retirement: 65 years old

This baseline assumes no other controlling retirement plan or agreement.

What “optional at 60” means

“Optional” means the employee may retire at 60 (if they also meet any service requirements for retirement pay under law or the company plan), but the employer does not automatically get to force retirement at 60 just because the employee turned 60.

What “compulsory at 65” means

At 65, retirement becomes compulsory as the default legal rule—meaning employment may be ended on that ground, provided retirement benefits are properly handled.

3) When can mandatory retirement at 60 be legal?

Mandatory retirement at 60 is most defensible when it is anchored on a valid and enforceable source, such as:

A) A Collective Bargaining Agreement (CBA)

A CBA may set a retirement age and terms. If it clearly provides compulsory retirement at 60, it can be enforced against employees covered by the bargaining unit—subject to general legality and fairness requirements.

B) A company retirement plan / retirement policy

A company may adopt a retirement plan/policy that sets compulsory retirement at 60, especially if:

It is clear and consistently applied
It is made known to employees
It is not contrary to law, morals, or public policy
Employees have accepted it (often inferred when the policy is communicated and employees continue working under it, though disputes can arise if implementation is questionable)

C) An employment contract

An individual contract can specify retirement terms, including an agreed retirement age—again subject to legality and public policy.

D) Special rules for specific occupations/industries

Certain roles (especially those involving safety, fitness standards, or statutory regimes) may have distinct retirement ages set by regulation, company manuals approved under relevant frameworks, or industry standards—but these require careful legal grounding.

4) When is forcing retirement at 60 likely illegal?

Mandatory retirement at 60 is legally risky—often treated as illegal dismissal—when:

There is no retirement plan/CBA/contract/policy clearly making retirement at 60 compulsory; and
The employer ends employment simply because the employee reached 60.

In that scenario, the employee can argue:

They did not apply for retirement (optional at 60), and
The employer had no right to treat 60 as compulsory.

Key concept: Early/optional retirement is generally not a unilateral employer prerogative unless the workplace rules validly make it compulsory.

5) What makes a “retirement-at-60” policy enforceable in practice?

Philippine jurisprudence generally evaluates early compulsory retirement policies using themes like consent/acceptance, clarity, reasonableness, and uniform application. The employer is on stronger ground when it can show:

Clarity and communication

The policy is written, explicit, and accessible (handbook, retirement plan documents, CBA text).
Employees were informed (orientation, acknowledgments, postings, intranet distribution).

Acceptance / binding effect

The policy forms part of the terms and conditions of employment (e.g., signed contract, CBA coverage, acknowledged handbook, or long-standing plan applied consistently).

Reasonableness and legitimacy

The retirement age and rationale are not arbitrary.
It is not used as a pretext to remove a specific employee.
It aligns with the business context (and where relevant, fitness/safety demands).

Consistent and non-discriminatory application

Applied uniformly to similarly situated employees.
Not selectively enforced.

If a “mandatory at 60” rule exists only on paper but is inconsistently applied, selectively enforced, or suddenly invoked against one employee, it becomes much harder to defend.

6) How does the Anti-Age Discrimination law affect retirement at 60?

The Anti-Age Discrimination in Employment Act (RA 10911) generally prohibits age-based discrimination in hiring, promotion, training, termination, etc.

However, retirement is a unique area because:

Philippine labor law itself recognizes retirement ages, and
Retirement plans and CBAs are legally recognized mechanisms that can set retirement terms.

Practical takeaway: RA 10911 increases the risk of liability where “retirement” is used as a cover for age-based exclusion or differential treatment, but it does not automatically invalidate bona fide retirement systems. The safer the employer is on clear policy basis + uniform application + proper benefits, the lower the risk.

7) Retirement pay: what must be paid if retirement happens at 60?

A) If there is a company retirement plan

If a company has a retirement plan, the employee is generally entitled to the benefits under that plan, provided they meet eligibility requirements.

The law tends to treat the statutory retirement benefit as a floor: retirement plans should not provide less than the legal minimum (unless a legally recognized exception applies).

B) If there is NO retirement plan (statutory minimum)

When there is no retirement plan, the statutory retirement pay framework generally provides:

The employee must have at least 5 years of service to be entitled to retirement pay under the statutory scheme.
The minimum retirement pay is commonly computed as at least one-half (1/2) month salary for every year of service, with a fraction of at least 6 months counted as one whole year.

“One-half month salary” is commonly understood in labor practice to include components such as:

15 days basic salary, plus
the cash equivalent of certain benefits typically factored into the statutory minimum computation (often expressed in practice as a minimum equivalent of 22.5 days per year, depending on how “1/2 month” is interpreted under implementing rules and applicable benefits).

Because retirement computations can vary by compensation structure (monthly-paid vs daily-paid, inclusion of allowances, whether SIL is already exhausted/commuted, etc.), disputes often arise in how the retirement pay is computed—so documentation matters.

C) Retirement pay vs. SSS/GSIS benefits

SSS/GSIS benefits are separate from employer retirement pay.
An employee may receive SSS old-age pension/lump sum (if qualified) and still be entitled to employer retirement pay, depending on the applicable retirement scheme.

8) SSS retirement (private sector) and the significance of age 60

In SSS practice:

Retirement eligibility can begin at 60 for qualified members who are separated from employment and meet contribution requirements.
At 65, retirement becomes the compulsory age threshold under SSS rules.

This is one reason age 60 is widely treated as a functional retirement milestone in the Philippines, even though labor law’s default compulsory retirement age is 65 absent a valid plan.

9) Due process: does an employer need notice and procedure?

Retirement is not a disciplinary action, so the classic “two-notice rule” for dismissal due to just causes doesn’t strictly apply the same way. Still, good practice (and risk control) strongly favors:

Advance written notice that the employee is being retired under the applicable plan/policy/CBA,
A clear explanation of the basis (plan provisions),
A computation and breakdown of benefits,
Release of retirement pay within a reasonable time, and
Proper documentation (clearances, turnover, certificates of employment, tax forms as applicable).

Poor process doesn’t automatically make retirement illegal, but it can:

trigger money claims,
create doubts about whether retirement was validly invoked, and
strengthen a claim that “retirement” was a pretext for dismissal.

10) Common scenarios and how Philippine law typically treats them

Scenario 1: No retirement plan; employee turns 60; employer ends employment

High risk of illegal dismissal. At 60, retirement is generally optional for the employee, not compulsory for the employer.

Scenario 2: CBA clearly says compulsory retirement at 60

Usually defensible, if the employee is covered by the CBA and the CBA provision is lawful and consistently applied.

Scenario 3: Company handbook says compulsory at 60, but it was never communicated, or selectively enforced

Legally vulnerable. Enforceability depends heavily on proof of communication, acceptance, and uniform practice.

Scenario 4: Employee applies for retirement at 60 and employer accepts

Generally valid (assuming eligibility and benefits are correctly paid).

Scenario 5: Employer pressures employee to “voluntarily retire” at 60

This can be attacked as involuntary retirement (constructive dismissal theory) if evidence shows coercion, misrepresentation, or lack of genuine consent.

11) Remedies if retirement at 60 is challenged

If forced retirement at 60 is found improper, the dispute often becomes an illegal dismissal case, where potential consequences may include:

Reinstatement (or separation pay in lieu of reinstatement, depending on circumstances),
Full backwages (subject to legal rules and case outcomes),
Payment of unpaid retirement benefits (if any),
Damages and attorney’s fees in appropriate cases.

On the other hand, if retirement at 60 is upheld as valid:

The case typically narrows to money claims (e.g., underpayment of retirement pay, incorrect computation, delayed release).

12) Practical compliance guidance

For employers

If you want a compulsory retirement age of 60, ensure there is a clear written basis (retirement plan/CBA/contract/policy).
Make sure it is communicated and uniformly implemented.
Keep proof: acknowledgments, plan documents, board approvals, CBA provisions, employee handbook receipts.
Compute and release retirement benefits correctly and promptly.

For employees

Ask for the exact document that the employer relies on (retirement plan, handbook section, contract clause, CBA article).
Check whether it was implemented consistently (how the employer treated other employees who reached 60).
Review the retirement pay computation and compare it with statutory minimums and company plan terms.
If you did not consent and there is no clear policy basis, consider that the separation may be legally treated as dismissal rather than retirement.

13) Bottom line

Mandatory retirement at age 60 is not automatically legal in the Philippines.

Without a valid retirement plan/CBA/contract/policy, age 60 is generally optional, and forcing retirement at 60 is legally risky and often challengeable as illegal dismissal.
With a valid, clearly communicated, and uniformly applied retirement plan/CBA/contract that makes 60 compulsory, mandatory retirement at 60 can be legal, provided retirement benefits are properly paid and retirement is not used as a pretext for discrimination or dismissal.

If you want, tell me the setting (private company vs government; with/without CBA; what the handbook says), and I can map the most likely legal outcome and the usual arguments on both sides.