Philconsa V. Pedro M. Gimenez G.R. No. L-23326 December 18, 1965

PHILCONSA v. PEDRO M. GIMENEZ G.R. No.
L-23326
December 18, 1965
Facts:
Philippine Constitution Association, Inc (PHILCONSA) assails the validity of RA 3836
insofar as the same allows retirement gratuity and commutation of vacation and sick leave to
Senators and Representatives, and to the elective officials of both Houses (of Congress). The
provision on retirement gratuity is an attempt to circumvent the Constitutional ban on increase of
salaries of the members of Congress during their term of office, contrary to the provisions of Article
VI, Section 14 of the Constitution. The same provision constitutes selfish class legislation because
it allows members and officers of Congress to retire after twelve (12) years of service and gives
them a gratuity equivalent to one year salary for every four years of service, which is not refundable
in case of reinstatement or re election of the retiree, while all other officers and employees of the
government can retire only after at least twenty (20) years of service and are given a gratuity which
is only equivalent to one month salary for every year of service, which, in any case, cannot exceed
24 months. The provision on vacation and sick leave, commutable at the highest rate received,
insofar as members of Congress are concerned, is another attempt of the legislator to further
increase their compensation in violation of the Constitution.
The Solicitor General counter-argued alleging that the grant of retirement or pension benefits
under Republic Act No. 3836 to the officers objected to by the petitioner does not constitute
forbidden compensation within the meaning of Section 14 of Article VI of the Philippine
Constitution. The law in question does not constitute class legislation. The payment of commutable
vacation and sick leave benefits under the said Act is merely in the nature of a basis for computing
the gratuity due each retiring member and, therefore, is not an indirect scheme to increase their
salary.
Issue:
whether Republic Act 3836 violates Section 14, Article VI, of the Constitution which reads
as follows:
The senators and the Members of the House of Representatives shall, unless otherwise provided by
law, receive an annual compensation of seven thousand two hundred pesos each, including per
diems and other emoluments or allowances, and exclusive only of travelling expenses to and from
their respective districts in the case of Members of the House of Representative and to and from
their places of residence in the case of Senators, when attending sessions of the Congress. No
increase in said compensation shall take effect until after the expiration of the full term of all the
Members of the Senate and of the House of Representatives approving such increase. Until
otherwise provided by law, the President of the Senate and the Speaker of the House of
Representatives shall each receive an annual compensation of sixteen thousand pesos.
Held:
Yes. When the Constitutional Convention first determined the compensation for the
Members of Congress, the amount fixed by it was only P5,000.00 per annum but it embodies a
special proviso which reads as follows: No increase in said compensation shall take effect until after
the expiration of the full term of all the members of the National Assembly elected subsequent to
approval of such increase. In other words, under the original constitutional provision regarding the
power of the National Assembly to increase the salaries of its members, no increase would take
effect until after the expiration of the full term of the members of the Assembly elected subsequent to
the approval of such increase.
The Constitutional provision in the aforementioned Section 14, Article VI, includes in the term
compensation other emoluments. This is the pivotal point on this fundamental question as to
whether the retirement benefit as provided for in Republic Act 3836 fall within the purview of the term
other emoluments.
Emolument is defined as the profit arising from office or employment; that which is received
as compensation for services or which is annexed to the possession of an office, as salary, fees and
perquisites.
It is evident that retirement benefit is a form or another species of emolument, because it is a
part of compensation for services of one possessing any office.
Republic Act 3836 provides for an increase in the emoluments of Senators and Members of
the House of Representatives, to take effect upon the approval of said Act, which was on June 22,
1963. Retirement benefits were immediately available thereunder, without awaiting the expiration of
the full term of all the Members of the Senate and the House of Representatives approving such
increase. Such provision clearly runs counter to the prohibition in Article VI, Section 14 of the
Constitution. RA 3836 is therefore unconstitutional.

Philconsa V. Pedro M. Gimenez G.R. No. L-23326 December 18, 1965

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