BIR Ruling

October 19, 1973 Mr. Felipe O. Gumba 2630-7 Dimasalang Street Pasay City S i r : This refers to your letter dated October 11, 1973 requesting information on whether or not, as an employee of this Bureau who resigned but is not retireable, you are entitled to the gratuity provided under paragraph 4 of Memorandum Circular dated June 30, 1973 of the President of the Philippines, the pertinent portion of which is quoted hereunder as follows: "4. Laid off personnel shall be paid their terminal leave. . . . In the case of personnel who are not eligible to retire under any existing retirement law, they shall be paid gratuity equivalent to one month salary for every year of continuous service but not to exceed twelve months on the basis of the last salary received." In reply thereto, I have the honor to inform you that under the aforequoted provisions the gratuity provided is only for employees who have been involuntarily separated by being eliminated or reorganized out of the service. Since your separation from the service was voluntary, you are not covered by the aforesaid provision. aisadc In view thereof, your query is answered in the negative. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5