GSIS Benefits and Contributions Under RA 8291
Government Service Insurance System · benefits
Quick answer
GSIS covers government employees. Under RA 8291 the member pays 9.0% of monthly compensation and the employer 12.0%. Retirement is compulsory at age 65 with at least 15 years of service. Separation, unemployment, survivorship and funeral benefits each have their own statutory formula.
Every figure on this page is from official published documents: LawPhil Project and Government Service Insurance System.
Last verified 2 sources, listed below
LawPhil Project | Republic Act No. 8291, the GSIS Act of 19971 · Government Service Insurance System | Enhanced Conso-Loan Plus2. PHGuides is independent and not affiliated with GSIS.
GSIS, the Government Service Insurance System, is the government sector’s counterpart to SSS. Its charter is Republic Act No. 8291, approved on 30 May 1997, and almost every figure below is written into that statute rather than set administratively.
Contributions
Section 5 makes payment mandatory for both member and employer, on this schedule.
| Monthly compensation | Payable by member | Payable by employer |
|---|---|---|
| At the Maximum Average Monthly Compensation limit and below | 9.0% | 12.0% |
| Over the limit, up to the limit | 9.0% | 12.0% |
| Over the limit, on the excess | 2.0% | 12.0% |
| Judiciary and constitutional commissioners, life insurance | 3% | 3% |
At the AMC limit and below the combined rate is 21.0% of monthly compensation, of which the member carries 9.0 points and the employer 12.0. That addition is arithmetic on the statute’s two figures.
Retirement
Section 13(b) makes retirement compulsory at 65 years of age with at least 15 years of service, unless appropriate authorities extend the service. Section 13(a) then gives two ways to take the benefit.
| Option | Paid at retirement | Then |
|---|---|---|
| 1 | Lump sum as defined in the Act | Old-age pension equal to the basic monthly pension, monthly for life, starting after the 5-year guaranteed period the lump sum covers |
| 2 | Cash equal to 18 months of basic monthly pension | Monthly pension for life payable immediately, with no 5-year guarantee |
Option 1 front-loads a guaranteed period. Option 2 starts the pension at once and gives up that guarantee. The statute states both without preferring either.
The other benefits
| Benefit | Section | What the statute provides |
|---|---|---|
| Separation | 11 | 100% of average monthly compensation for each year of paid contributions, not less than ₱12,000, payable at 60 or on separation, whichever is later, where service is at least 3 years but under 15 years; or 18 times basic monthly pension plus an old-age pension where service is longer |
| Unemployment | 12 | 50% of average monthly compensation, monthly, for involuntary separation through abolition of the office or position, needing at least 1 year of integrated contributions |
| Survivorship | 20 | Basic survivorship pension of 50% of the basic monthly pension, plus a dependent children’s pension not exceeding 50% of it |
| Funeral | 23 | Set by GSIS rules but not less than ₱12,000.00, and to be increased to at least ₱18,000.00 |
How the pension itself is computed
Section 9 fixes the formula, and it is one of the few pension formulas in Philippine law written directly into the statute rather than left to rules.
37.5% of the revalued average monthly compensation, plus 2.5% of that same revalued average for each year of service in excess of 15 years, capped at 90% of the average monthly compensation.
So the cap binds at 36 years of service: 15 years earns the base 37.5%, and the next 21 years add 2.5 points each, which is 52.5 points, for exactly 90.0%. That arithmetic is this page’s, not the statute’s, but the three percentages it uses are all in Section 9.
Section 10 counts service from the date of original appointment or election, including service at different times under one or more employers and service performed overseas under the authority of the Republic of the Philippines. Section 14 then allows periodic adjustment of every monthly pension, including survivorship pensions, on the GSIS actuary’s recommendation with Board approval.
How long the unemployment benefit runs
Section 12 sets duration by contributions made.
| Contributions made | Benefit duration |
|---|---|
| 1 year but less than 3 years | 2 months |
| 3 years or more but less than 6 years | 3 months |
| 6 years or more but less than 9 years | 4 months |
| 9 years or more but less than 11 years | 5 months |
| 11 years or more but less than 15 years | 6 months |
The first payment is equivalent to two monthly benefits, and a 7-day waiting period applies to each succeeding monthly payment. All accumulated unemployment benefits paid across the member’s entire GSIS membership are deducted from voluntary separation benefits later on, so the benefit is closer to an advance against separation pay than to a standalone entitlement.
Loans: the Enhanced Conso-Loan Plus
GSIS publishes the credit limit as a multiple of basic monthly salary, rising with paid premiums.
| Minimum premium payments required | Maximum loan amount |
|---|---|
| 25 years | 14-month loan |
| 15 years | 12-month loan |
| 10 years | 10-month loan |
| 5 years | 7-month loan |
| 40 months | 4-month loan |
| 20 months | 3-month loan |
GSIS notes that the previous credit limit for the longest-serving members was only 10 times salary, and that the maximum payment term was extended from six to 10 years for members with not less than 10 years of paid premiums. Alongside the Conso-Loan, GSIS lists a Policy Loan, an Emergency Loan and a Special Emergency Package for calamities, with a separate published list of areas eligible for the Emergency Loan.
What this page does not cover
RA 8291 refers to a Maximum Average Monthly Compensation limit but the statute does not fix its peso value, and GSIS sets it by board resolution, so no figure for it is stated here. This page also does not carry the current interest rates on any GSIS loan, the eCard or UMID application process, the premium-based policy values, or the GSIS Touch app, none of which were read for it. The GSIS website blocks automated access, so the loan figures above come from the one product page that could be read directly.
Related
The SSS contribution table and the SSS retirement pension guide cover the private sector equivalents, and the valid IDs guide lists the GSIS eCard among accepted government identification.
Frequently asked questions
- How much is the GSIS contribution?
- Under Section 5 of RA 8291 the member pays 9.0% of monthly compensation and the employer 12.0%, at the Maximum Average Monthly Compensation limit and below. On compensation above that limit the member pays 2.0% on the excess and the employer still 12.0%. Members of the judiciary and constitutional commissioners pay 3% with a matching 3% employer share for life insurance.
- When can a government employee retire?
- Retirement is compulsory at 65 years of age with at least 15 years of service, unless the service is extended by appropriate authorities. That is Section 13(b).
- What are the two retirement options?
- Section 13(a) gives a choice: a lump sum payable at retirement plus an old-age pension starting after the 5-year guaranteed period the lump sum covers; or a cash payment equal to 18 months of basic monthly pension plus a monthly pension for life payable immediately with no 5-year guarantee.
- What if I leave government before retiring?
- Section 11 pays a separation benefit. With at least 3 years but less than 15 years of service, it is a cash payment equal to 100% of average monthly compensation for each year of paid contributions, but not less than ₱12,000, payable on reaching 60 or on separation, whichever comes later.
- Is there a GSIS unemployment benefit?
- Yes, for involuntary separation. Section 12 pays monthly cash equal to 50% of average monthly compensation to a permanent employee separated because the office or position was abolished, usually through reorganisation, provided at least 1 year of integrated contributions. Duration runs from 2 months to 6 months by length of contribution.
- How much is the GSIS funeral benefit?
- Section 23 states the amount is set by GSIS in its rules but shall not be less than ₱12,000.00, and shall be increased to at least ₱18,000.00. The statute fixes the floor, not the current figure.
- How much can I borrow from GSIS?
- Under the Enhanced Conso-Loan Plus, the credit limit is expressed in months of basic monthly salary and rises with paid premiums: 3 months at 20 months of premiums, up to 14 months at 25 years of service. GSIS extended the maximum payment term to 10 years for members with at least 10 years of paid premiums.
- Is GSIS the same as SSS?
- No. GSIS covers government employees under RA 8291; SSS covers private sector and voluntary members under its own charter. The contribution rates, benefit formulas and loan products are different, and a worker moving between the two sectors deals with both systems separately.