What additional benefits may be included in an employee's retirement pay?

The inclusion of service incentive leave and thirteenth-month pay as part of an employee's retirement pay is rooted in the recognition of these benefits as forms of financial compensation that can support an employee during retirement.

Service incentive leave allows employees to have paid time off that can be used for various personal needs, ultimately contributing to their overall well-being. This benefit acknowledges the employee's long service and dedication, making it a valuable addition to retirement compensation.

Thirteenth-month pay is a financial benefit that grants employees an extra month’s salary at the end of the year, which can significantly bolster their savings for retirement. It is often mandated by law in various jurisdictions, serving as an additional layer of financial security that employees can rely on when they retire.

In contrast, while options such as bonus pay, health insurance, vacation days, pension funds, stock options, and performance bonuses can be beneficial in the overall compensation package, they may not be standard components of retirement pay or may not specifically relate to the retirement phase. For example, stock options and performance bonuses are typically seen as short-term incentives linked to current performance rather than long-term retirement benefits.