RA 1616 provides for a gratuity benefit for retiring members who will qualify under this retirement mode. The gratuity is payable by the last employer. The employee shall also be entitled to a Refund of Retirement Premiums paid, personal share with interest and government share without interest.
To qualify under the mode, a retiree must:
What is in store for you
Since RA 1616 is considered as the “Take All Retirement” mode, it provides the following benefits:
1. Gratuity payable by the last employer based on the total creditable service converted into gratuity months multiplied by the highest compensation received. The gratuity months shall be computed as follows:
Years of Service Gratuity Months
First 20 years one (1) month salary
20 years to 30 years 1.5 months salary
Over 30 years two (2) months salary
(There is no limit to the amount of gratuity benefit.) and
2. Refund of retirement premiums consisting of personal contributions of the employee plus interest, and government share without interest, payable by the GSIS.