Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
‘Second Regular Session

House BILL No. ‘7532

Introduced by Rep. Winston “Winnie” Castelo

EXPLANATORY NOTE

Every worker in government dedicates his/her life to rendering public service over a long period
of time. Throughout that span of time, s/he experiences an opportunity loss like a much better
package of wages and benefits that a counterpart in the private sector has to offer. But public
service being what it is requires of every public servant to be committed to doing their tasks in
order to serve a lot of people well. With this, it is only fitting and proper that when they later
decide to separate or otherwise retire, these government employees should likewise receive the
wages and benefits due them in accordance with sound governmental policy as that the
Government Service Insurance System should aptly provide.

However, there seems to be an overarching concer in the manner such separation or
retirement benefit is being computed. This is that the computation is based rather arbitrarily on
the employee's last position held or occupied entirely disregarding or shelving other relevant
consideration during the span of his/her service or record of service in government especially on
the matter of various positions held or occupied. For example, if Employee A hi so and

i is much lower

held/occupied position. So when such last held/occupied position
previous ones, the computation is based on that which is lower.

way too low than more
This instant bill aims to correct this apparent anomaly in the way puch appurtenant wages and!

for, hence this submission.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

SEVENTEENTH CONGRESS
‘Second Regular Session

7532

HOUSE BILL NO.

Introduced by Rep. Winston “Winnie”Castelo

AN ACT
RATIONALIZING THE COMPUTATION OF SEPARATION OR RETIREMENT BENEFITS FOR
EVERY WORKER IN GOVERNMENT SERVICE, IMPOSING APPROPRIATE SANCTIONS
FOR VIOLATIONS THEREOF AND FOR OTHER PURPOSES

Be it enacted in the Senate and the House of Representatives of the Republic of the Philippines
in Congress assembled:

SECTION 1. This Act shall be known as the Government Service Retirement Benefits

d SEC. 2. It shall be a sound policy of the State to insure that every worker in government

service shall be accorded just fair and corresponding wages, allowances, and pecuniary
benefits in accordance with what shall accrue and due her/him holding or occupying such
position. This extends up to time when s/he separates or retires from the service.

SEC. 3. In no instance shall the computation of separation or retirement benefits takes
in isolation her/her last position held or occupied at the time s/he may have applied for the same
but should include all other previous positions held or occupied to which s/he had been paid the
corresponding wages, allowances and pecuniary benefits to which the appropriate taxes for the
government have also been deducted in the computation thereof.

SEC. 4. The Government Service Insurance System shall insure that every employee of
government who separates or retires from public service gets her/his corresponding,
appropriate and justly-computed rates of separation or retirement benefits based not just on last
Position held or occupied but based likewise on such other previous or earlier positions wherein
s/he may have held or occupied higher position and therefore higher rates of wages and
allowances. All these variables should be factored and incorporated into the computation of
his/her separation or retirement benefits when the same is applied for.

Provided Further That, it shall be deemed arbitrary to effect payment of separation or
retirement benefits that is merely or conveniently based on last position held or occupied
thereby discrediting all the attendant values that may be taken into account from her/his
employment record or history in government service which carries computable refunds or
returns or premiums as just and corresponding gratuity benefits.


SEC. 6. For any or all violations of the principles under this Act, appropriate sanctions
shall be imposed upon the concerned agency found remiss in the compliance of the provisions
of this Act set herewith.

SEC. 7. This Act shall take effect upon its approval, its publication in the Official
Gazette, and in at least three (3) newspapers of general circulation.

Approved,