Dear Atty. Gab

Musta Atty! I’m writing to you because I’m getting close to retirement age and feeling a bit confused about my government service record. From 2005 to 2010, I worked full-time as a “Project Development Consultant” for a regional office of the Department of Public Works and Highways (DPWH) here in Cebu. My work involved evaluating project proposals, coordinating with local government units, preparing progress reports, and ensuring compliance with certain standards. I signed a contract every year and received a fixed monthly payment, which they called a consultancy fee. I didn’t get typical employee benefits like paid leave, 13th-month pay, or GSIS contributions deducted.

Before that DPWH stint, I worked as a public school teacher for about 10 years (1985-1995), so I have that official government service record. Since 2010, I’ve been working in the private sector. Now, I’m hoping to qualify for retirement benefits under the law that requires 15 years of service (I believe it’s R.A. 9946?). If my 5 years with DPWH could be added to my 10 years as a teacher, I would meet the requirement.

My concern is that my supervisor back then just gave me certifications confirming my work period and tasks. I don’t have formal appointment papers like when I was a teacher, only the signed contracts. When I initially inquired with an officer years ago, they mentioned consultancy might not count. Was that correct? Does the nature of my work, which felt like regular employment, matter? Can those 5 years be credited as government service for my retirement? I really hope you can shed some light on this for me.

Salamat po,

Ricardo Cruz
Sent from ricardo.cruz.mustaatty@email.com

Dear Ricardo

Thank you for reaching out, and I understand your concern about ensuring all your hard work is recognized for your retirement benefits. It’s a situation many Filipinos who have rendered service to the government under various arrangements face.

The core issue you’ve raised revolves around whether services rendered under a consultancy or contract of service arrangement, like your time with the DPWH, qualify as creditable government service for retirement purposes under laws like Republic Act No. 910, as amended by Republic Act No. 9946. Generally, the distinction between regular government employment and contractual or consultancy arrangements is crucial in determining eligibility for retirement benefits which typically require a formal employer-employee relationship and appointment to a recognized government position.

Defining ‘Government Service’ for Retirement Eligibility

Understanding what constitutes “government service” under Philippine law is key to your situation. Retirement laws, particularly those applicable to government personnel, are designed to reward individuals who have dedicated a significant portion of their careers to public service, typically as formally appointed or elected officials or employees within the government structure. The required length of service ensures that the benefits are granted to those who have substantially contributed through established government roles.

Republic Act No. 910, as amended by Republic Act No. 9946, indeed allows members of the Judiciary to retire with benefits after meeting certain age and service requirements, including a minimum of fifteen (15) years of creditable service in the government. While your teaching service clearly counts, the status of your consultancy work requires closer examination based on established legal principles and administrative rules.

The primary distinction lies in the nature of the engagement. Regular government employment involves appointment to a specific position within the government’s organizational structure, often requiring taking an oath of office and being subject to civil service rules and regulations. An employer-employee relationship exists, characterized by the government’s power to control the means and methods by which the work is accomplished.

Contrast this with consultancy or contract of service arrangements. The Civil Service Commission (CSC) has consistently maintained that these generally do not establish an employer-employee relationship.

“Consultancy or Contract of Service is not considered government service pursuant to Rule XI (Contract of Services/Job Orders) of the Omnibus Rules Implementing Book V of Executive Order No. 292.”

This rule highlights the general exclusion of such services from the computation of creditable government service. The rationale is that consultants are typically engaged for their specialized expertise for specific projects or outputs, operating with more independence than regular employees. They are not usually considered part of the government plantilla or regular staff.

Furthermore, the definition of a government “employee” or “officer” often implies inclusion within the formal structure of government service.

“Under the old Administrative Code (Act No. 2657), a government ’employee’ includes any person in the service of the Government or any branch thereof of whatever grade or class. A government ‘officer,’ on the other hand, refers to officials whose duties involve the exercise of discretion in the performance of the functions of government, whether such duties are precisely defined or not.”

While this definition is broad, subsequent laws and regulations, particularly Civil Service rules, have refined the concept, often tying creditable service to formal appointment and the existence of an employer-employee relationship. The absence of formal appointment papers, deductions for GSIS, and non-inclusion in the regular plantilla are often indicators that the engagement was intended as a contract of service or consultancy, rather than regular employment.

The nature of the tasks you performed (evaluating proposals, coordinating, reporting) might seem similar to those of regular employees. However, the legal determination often hinges more on the formal basis of the engagement (the contract, lack of appointment, absence of control typical of employment) rather than solely on the tasks performed. Even if the work rendered was substantial and necessary, the contractual basis often prevents it from being classified as formal government service for retirement purposes.

While the Supreme Court has occasionally exercised liberality in interpreting retirement laws, this is typically done on a case-by-case basis, often involving unique circumstances or substantial proof of service that closely mirrors formal employment, despite technical deficiencies.

“The Supreme Court has unquestionably followed the practice of liberal treatment in passing upon retirement claims of judges and justices, thus: … (5) considering legal counselling work for a government body or institution as creditable government service.”

However, applying this liberality often requires strong evidence demonstrating that the service rendered, despite its contractual label, functionally constituted regular employment within the government structure. The lack of formal appointment documents and GSIS records presents a significant hurdle, as these are standard proofs of government employment.

Here’s a comparison table that might help clarify the typical distinctions:

Feature	Regular Government Employee	Consultant / Contract of Service
Basis of Engagement	Formal Appointment to a Plantilla Position	Contract for Specific Output/Service
Employer-Employee Relationship	Exists (Subject to government control)	Generally Does Not Exist (More independence)
Governing Rules	Civil Service Law and Rules	Terms of the Contract; Procurement Law (if applicable)
Benefits	Entitled to GSIS, Leave Credits, Bonuses, etc.	Generally Limited to Contract Fee; No employee benefits
Creditable Service for Retirement	Yes	Generally No (per CSC Rules)
Required Documentation	Appointment Paper, Oath of Office, Service Record	Contract, Certifications, Output Documents

Therefore, based on standard rules, your 5-year consultancy work with DPWH, undertaken through renewable contracts without formal appointment or GSIS coverage, is unlikely to be automatically credited as government service for meeting the 15-year requirement under R.A. 9946. The certifications from your supervisor, while helpful in proving work was done, may not be sufficient to overcome the lack of formal appointment and the nature of the contractual engagement.

Practical Advice for Your Situation

• Gather All Documentation: Collect every contract, certification, accomplishment report, payroll slip (even if for ‘consultancy fee’), and any communication related to your DPWH engagement. Thorough documentation is crucial.
• Check GSIS Records Carefully: Obtain your official GSIS service record. Confirm that no contributions were made during your DPWH consultancy period (2005-2010), as this reinforces the contractual nature of the service.
• Inquire Directly with CSC and GSIS: Formally write to both the Civil Service Commission and the Government Service Insurance System. Present your specific situation and documentation, and ask for a definitive ruling on whether your DPWH service can be credited under current rules or any specific resolutions.
• Highlight Nature of Work (But Manage Expectations): While the nature of your work felt like regular employment, emphasize the contractual basis in your inquiries but also detail the functions performed. Understand, however, that the formal classification (contract vs. appointment) often carries more weight.
• Explore R.A. 9946 Specifics: Review the exact provisions of R.A. 9946 and its implementing rules. While it primarily amended R.A. 910 regarding judicial retirement, check if its principles have broader application or if specific clauses address service types like yours.
• Consult a Legal Expert: Seek advice from a lawyer specializing in government retirement laws and administrative law. They can assess your specific documents and advise on the viability of pursuing the crediting of your consultancy service, perhaps through an appeal for liberal interpretation, though success is challenging.
• Prepare for Non-Crediting: Realistically assess your retirement options based solely on your 10 years of credited teaching service. Understand the benefits available for that period under applicable laws (which might differ from R.A. 9946 if it exclusively applies to the judiciary).

Navigating the rules on creditable government service can be complex, especially when dealing with non-traditional work arrangements. While the general rule often excludes consultancy, thoroughly exploring all avenues and obtaining official rulings from the CSC and GSIS is essential.

Hope this helps!

Sincerely,
Atty. Gabriel Ablola

For more specific legal assistance related to your situation, please contact me through gaboogle.com or via email at connect@gaboogle.com.

Disclaimer: This correspondence is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please schedule a formal consultation.