TWENTIETH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez and 
Representative Maximo B. Rodriguez, Jr. 
House Bill No. 2450
EXPLANATORY NOTE 
For years, the government's manpower has been perceived as bloated and overstaffed. 
This has not only become a source of inefficiency caused by red tape, but the link between 
corruption and government service has become inherent. 
In an attempt to address this problem, Congress enacted RA No. 6683 "An Act Providing 
Benefits for Early Retirement and Voluntary Separation from Government Service" which aimed 
to downsize the huge government bureaucracy by providing ample incentives and benefits to 
those who wished to retire and leave government service. 
However, records would show that less than the estimated number of public servants 
availed of the benefits provided by this law. This can be attributed to two reasons: (1) the benefits 
of said law were not remunerative enough to attract government employees to avail of them, 
compared to the benefits which they expect to receive when they reach the mandatory retirement 
age, and (2) the law was enacted at a time when government salaries were scheduled to be 
upgraded. They opted to wait for their salaries to be adjusted based on the computation given by 
the Salary Standardization Law. 
Huge government bureaucracy thus remained and problems related to an overstaffed 
government continued to persist.  
This proposed measure then aims to strengthen RA 6683 by offering not only higher 
benefits but benefits that are computed based on the present salary schedule. Also, one of the 
bigger benefits of this bill is the trimming of the bureaucracy without necessarily creating undue 
insecurity on the part of our civil servants. In fact, the bill gives them several options: whether to 
stay in government service, to leave and enjoy the benefits offered herein, or start a second 
career. 
Hence, the immediate passage of this bill is urged. 
RUFUS B. RODRIGUEZ 
  MAXIMO B. RODRIGUEZ, JR. 
July 29, 2025
12:37 pm


TWENTIETH CONGRESS 
 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session  
 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez and 
Representative Maximo B. Rodriguez, Jr. 
House Bill No. 2450
AN ACT 
PROVIDING 
EARLY 
RETIREMENT 
AND 
VOLUNTARY 
SEPARATION 
FROM 
THE GOVERNMENT SERVICE, PROVIDING A SYSTEM OF FUNDING THEREFOR, AND 
FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Declaration of Policy. It is hereby declared the policy of the State to promote 
economy, efficiency and effectiveness in government operations, particularly in the delivery of 
essential public services. 
For this purpose, the State shall endeavor to streamline government functions and to 
maintain necessary positions to effect a leaner and more efficient bureaucracy. To cushion any 
possible adverse effect on government employees in the process of reducing the number of 
personnel in the government, a safety net shall be created through a more attractive and viable 
retirement and separation program. 
SECTION 2. Coverage. This Act shall cover all appointive officials and employees of the national 
government including government-owned or controlled corporations with original charters, as well 
as the personnel of all local  government units subject to the results of the study by the Special 
Committee on Voluntary Early Retirement of the Legislative Executive Development Advisory 
Council (LEDAC) as provided in Section 3 of this Act. The benefits authorized under this Act shall 
apply to all regular, temporary, casual, and contractual employees, regardless of age, who have 
rendered a total of at least three (3) consecutive years of government service as of the date of 
separation. The term “contractual” as used in this Act does not include experts and consultants 
hired by the agencies for a limited period to perform specific activities or services with definite 
expected output. 
Uniformed personnel of the Armed Forces of the Philippines, including those of the 
Philippine National Police are excluded from the coverage of this Act. 
SECTION 3. Vital and Non-Vital Agencies. The Legislative Executive Development Advisory 
Council (LEDAC) shall create a Special Committee of Voluntary Early Retirement with three (3) 
members from the Executive Branch, and two (2) members from the Congress (one from each 
Chamber) to study and recommend within ninety (90) days after the effectivity of this Act, which 
government agencies and/or units may be considered as essential/vital or non-essential/non-vital 
on the basis of sound management concepts and guiding principles to be agreed within the 
committee. 
The Early Retirement Program shall be automatically offered to all employees of agency 
identified to be non-essential/non-vital. The same program shall be offered to agencies identified 
as essential/vital; Provided, that in no case shall this exceed twenty percent (20%) of the total 


number of employees of said agency; Provided further, That application for early retirement of 
participating employees from essential/vital agencies to be subject to the approval of the agency 
head with the confirmation of the agency’s Board of Directors, Trustees, Administrators or policy 
making councils, as the case may be. 
 
SECTION 4. Early Retirement and Voluntary Separation Benefits. – All appointive government 
officials and employees included in the coverage hereof who voluntarily elect in writing to be 
retired or separated from the service and whose retirement has been approved under the 
provisions of this Act shall be paid retirement or separation benefits equivalent to the following: 
(a) 1.2 months times the basic salary for every year of government service should the total 
be less than ten (10) years; 
(b) 1.4 months times the basic salary for every year of government service should the total 
be equal to ten (10) years to less than fourteen (14) years; 
(c) 1.6 months times the basic salary for every year of government service should the total 
be equal to fourteen (14) years to less than nineteen (19) years;  
(d) 1.8 months times the basic salary for every year of government service should the total 
be equal to nineteen (19) years to less than twenty three (23) years; and 
(e) 2 months times the basic salary for every year of government service should the total be 
twenty-three (23) years or more, or the nearest equivalent fraction thereof favorably to 
them on the basic or the highest salary which they respectively received in the course of 
their employment in the government: 
 
Provided, that the phrase “total number of years of government service” shall mean the 
total cumulative years of service despite any interruption thereof due to resignation, phase out or 
lay-off due to operation of law or reorganization, then followed by subsequent reappointment 
irrespective of the length of interruption. 
Provided, further, that in no case shall the benefit to be paid to any appointive official or 
employee be less than Ten Thousand Pesos (P10,000.00); Provided, finally, that any appointive 
official or employee who has previously been found guilty in an administrative proceeding and 
whose rank or salary has been reduced shall be paid on the basis of his last salary in accordance 
with the imposed sanctions. 
 
SECTION 5. Mode of Payment of Retirement Benefits. This early retirees will receive their 
separation benefits under a staggered payment scheme, as follows: 
(a) Upon approval of the retiree’s application for early retirement, he/she shall receive the 
initial payment in cash, which may be equivalent to, but not exceeding, one-year salary 
including bonuses from the date of approval until the end of the same calendar year. 
 
(b) The balance of computed benefits (net of initial cash benefits) shall be paid with interest-
earning Treasury Bills, each of which shall have a face value of one (1) year salary 
(including bonuses). Each of the Treasury Bills shall mature once. In case of multiple 
Treasury Bills, they shall mature after every succeeding year from the date of approval of 
the early retirement, until the total amount of benefits are received in full. 
 
SECTION 6. Additional Benefits. In addition to the benefits herein authorized, covered 
appointive officials and regular employees who retire or voluntarily elect to be separated from the 
service under this bill shall be entitled to the return of GSIS personal contributions pertaining to 
retirement only and the payment of corresponding share of the government with the interest 
earned pursuant to existing rules and regulations of the GSIS. They shall likewise be entitled to 
the commutation of unused vacation and sick leaves in accordance with existing rules and 
regulations. 


 
SECTION 7. Exclusivity of Benefits. An appointive official or employee who retires or elects to 
be separated from the service under this Act shall not be eligible for optional retirement with 
gratuity under Republic Act Nos. 1616 and 4968 or with pension under Commonwealth Act No. 
186, as amended by FW 660, or under Presidential Decree 1146, as amended, or vice versa. 
 
SECTION 8. Discretion of Agency Heads to Accept Application for Early Retirement. No 
appointive official or employee shall be separated or retired under this Act unless his/her position, 
agency or office shall have been declared as non-vital/non-essential by the President upon the 
recommendation of the LEDAC Special Committee on Voluntary Early Retirement. In case of 
agencies declared as vital or essential, application for early retirement or voluntary separation 
shall have been accepted by the head of the government agency, office or government-owned or 
controlled corporation concerned as the case may be. 
 
SECTION 9. Restriction on the Employment and Replacement of Retired or Separated 
Personnel. Appointive officials and employees who are retired or separated under this Act shall 
not be eligible for employment in the government whether on a permanent, temporary, casual, or 
contractual status within the period of five (5) years after separation unless they refund the 
benefits they have received under this Act. 
 
SECTION 10. Option for Retirees. Early retirees shall be given opportunities to further earn their 
income after voluntary separation from the government service. They can avail of the following 
opportunities, strictly for early retirees only: 
 
a) The Civil Service Commission (CSC) shall establish and maintain the manpower pool 
database where the early retirees with special skills may register for referral purposes. 
b) The Cooperative Development Authority (CDA) shall establish a special program for early 
retirees who opt to join a cooperative which membership and management shall be limited 
to early retirees under this Act. The retirees shall be provided with necessary orientation 
and training on cooperatives upon request. 
c) The early retirees shall be given the option to continue membership with the GSlS or to 
file membership with the Social Security System (SSS) and enjoy special benefits like 
shorter maturation period. 
d) The Asset Privatization Trust (APT) shall establish a program that will provide early 
retirees the option to convert their retirement or separation benefits or a portion thereof 
into stocks or equity in any of the privatized government owned or controlled operations. 
e) Government Finance Institutions (GFls) shall establish a concessional loan program for 
early retirees who decide to put up business ventures. 
 
SECTION 11. System of Funding. The positions vacated through the early retirement or 
separation of its incumbent shall be temporarily retained until such time that the full amount of 
early retirement benefits has been paid. The offices /agencies where these positions come from 
are authorized to continue to budget for the salaries and benefits of participating employees as 
payment for their initial cash benefits from date of approval of early retirement up to the end of 
the calendar year. 
For employees of government-owned or controlled operations, the benefits herein granted 
shall be paid from the internal funds of the respective corporations. In no case shall the benefits 
paid to the employees of government-owned or controlled corporations be less than the benefits 
granted by their existing corporate programs, if any. 


For employees of local government units, the benefits shall be paid from the available 
funds of each local government unit, provided that the funds are officially appropriated under their 
regular annual budget. 
A special funding shall be appropriated for the study to be conducted by the Special 
Committee on Voluntary Early Retirement. This fund shall be taken from the savings of any of the 
agencies under the Office of the President. 
 
SECTION 12. Penalties. Any government official who compels an employee under any guise 
whatsoever to retire or be separated from the government service by virtue of this Act or 
otherwise, shall be punished by a fine of not exceeding Ten Thousand Pesos (P10,000.00) or by 
imprisonment  not exceeding six (6) months or both such fine and imprisonment at the discretion 
of the court. 
 
SECTION 13. Implementing Rules and Regulations. The implementing rules and regulations 
shall be issued within ninety (90) days from the effectivity of this Act by the Civil Service 
Commission (CSC) in consultation with LEDAC, Department of Budget and Management (DBM), 
GSIS, SSS, GFls, CDA, and APT; Provided, that any provision of the law contrary 
notwithstanding, the only documents or supporting papers to be submitted by appointive officials 
and employees who wish to avail themselves of the benefits under this Act are the following: 
a) A duly approved application under oath for early retirement or voluntary separation in 
accordance with this Act, including a statement of the number of years of service in the 
government and the rate of the highest salary received; 
b) Money and property clearance from the agency concerned; and 
c) A simplified statement of assets and liabilities, net worth and financial and business 
interest in the case of regular employees: Provided, further, that the processing and actual 
payment of benefits to the appointive officials and employees concerned shall be 
completed within fifteen (15) days from the date of submission of the foregoing 
documents. 
 
SECTION 14. Compliance and Reporting. Within six (6) months from the effectivity of this Act 
and every six (6) months thereafter, the Department of Budget and Management (DBM) and the 
CSC shall, on the basis of the reports of the various heads of government offices and agencies, 
render a report to Congress on the number of government employees affected, the type or nature 
of positions involved, the total amount spent and an evaluation thereof. 
 
SECTION 15. Transitory Provisions. In case of salary adjustments brought about by existing 
and new laws (e.g. Salary Standardization Law), the benefits of such salary shall apply to the 
early retirees from the date of effectivity of such law until the year that have full retirement benefits 
shall have been paid. In which case, the cumulation of said additional benefits shall be paid under 
the separate cash or T-bill arrangements. 
 
SECTION 16. Repealing Clause. All laws, rules and regulations or parts thereof, inconsistent 
with the provisions of this Act are hereby repealed or modified accordingly. 
 
SECTION 17. Separability Clause. If any part, section or provision of this Act shall be held invalid 
or unconstitutional, no other part, section or provision thereof shall be affected thereby. 
 
SECTION 18. Effectivity. This Act shall take effect for a period of two (2) years commencing 
upon its publication in at least two (2) newspapers of general circulation. 
 
Approved,