Republic Act No. 1616

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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:

  1. be in government service on or before May 31, 1977
  2. has rendered at least 20 years of service regardless of age and employment status
  3. His/her last 3 years of service prior to retirement must be continuous, except in    cases of death, disability, abolition or phase out of position due to reorganization.

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.