Monthly Retirement Benefits

Monthly retirement pay shall be fifty percent (50%) of the base pay and longevity pay of
the retired grade in case of twenty (20) years of active service., increasing by two and one-half
percent (2.5%) for every year or active service rendered beyond twenty (20) years to a
maximum of ninety percent (90%) for thirty-six (36) years of active service and over.
Provided, that the uniformed personnel shall have the option to receive in advance and
in lump sum his retirement pay for the first three (3) years. Provided further, that payment of
the retirement benefits in lump sum shall be made within six (6) months from effectivity date of
retirement and/or completion.
Provided, finally, that retirement pay of the officers and non-officers of the PNP shall be
subjected to adjustments based on the prevailing scale of base pay of police personnel in the
active service.
Should such member who has been retired under permanent physical disability under
the section within five (5) years from his retirement, his surviving legal spouse or if there be
none, the surviving dependent legitimate children shall be entitled to the pension for the
remainder of the five (5) years guaranteed period.

Requirements in Retirement
For purposes of compulsory retirement, the following documents should be submitted
as required for the processing and release of thirty-six (36) months lump sum.
1. Retirement Order
2. Updated Service Record
3. Directorate for Logistics (DL) Clearance.
4. Certification of Last Payment from Finance Service or
its Counterpart in the Regional Police Office (RPO).
5. Directorate for Comptrollership (DC) Clearance.
6. Ombudsman Clearance
7. NAPOLCOM Clearance.
8. Internal Affairs Service (IAS) Clearance.
9. Latest Statement of Assets and Liabilities.
a. Latest Promotion Order/Rank Adjustment Order
/Absorption Order, as the case may be.
Computation of Retirement Gratuity
Hereunder is a simple computation of thirty-six months lumpsum:
Computed as Three (3) Years Lump Sum

Base Pay xx,xxx.xx

Long Pay (+) x,xxx.xx
========
xx,xxx.xx
Percentage Allocated to the Service
(x) xx.xx
Monthly Pension xxx,xxx.xx
(x) 36 mos.
=========
xxx,xxx.xx

Rank: P/Lieutenant
One rank higher: P/Captain
Status of Appointment: Permanent
Length of Service: 29 years, 5 months, and 20 days

Base Pay ₱56,582.00

Long Pay (+) ₱28,291.00
========
₱84,873.00
Percentage Allocated to the Service
(x) 0.7366
Monthly Pension ₱62,517.45
(x) 36 mos.
=========
₱2,250,628.20

= (29 x 0.025) + (5 x 0.00208) + (20 x 0.00006)

= 0.725 + 0.0104 + 0.0012
= 0.7366
 Length of service is broken down as follows, i.e.., years x 2.5% + Months x 0.208% + days
x 0.006%.
Example:
Compulsory retired with the rank of P/Master Sergeant based on one (1) rank higher of
P/Senior Master Sergeant. The length of Service (LOS) is twenty-seven (27) years, six (6)
months, and eight (8) days, and with 5th Long pay.

Base Pay (P/Sr Master Sgt) ₱34,079.00

Long Pay (+) 17,039.50
========
₱51,118.50
50,116.50
Percentage Allocated (x) 0.68796
to the Service ========
Monthly Pension ₱35,167.48
Lump Sum (x) 36 mos.
=========
₱1,266,029.28
Three Years Lump Sum
= (27 x 0.025) + (6 x 0.00208) + (8 x 0.00006)
= 0.675 + 0.01248 + 0.00048
= 0.68796
Percentage allocated in the service is twenty-seven years (27) x 2.5% + six (6) months x
0.208% + eight (8) days x 0.006% = 68.796%
Computation of Long Pay

5th Longevity Pay (25 y) (x) 50.00%

4th Long Pay (20 years) (x) 48.41%
3rd Long Pay (15 years) (x) 33.10%
2nd Long Pay (10 years) (x) 21.00%
1st Long Pay (5 years) (x) 10.00%

Computation of Commutation of Leave

Base Pay – POLICE INSPECTOR 49,528.00

Long Pay (+) 24,764.00
=========
74,292.00
Constant Factor (x) 0.0478087
=========
3,551.80
Number of Leave Credits (x) 993 days
=========
Commutation of Leave Amount ₱3,526,937.40