G.R. No. 177845 - GRACE CHRISTIAN HIGH SCHOOL, REPRESENTED BY ITS PRINCIPAL, DR. JAMES TAN, VS. FILIPINAS A. LAVANDERA.D E C I S I O N - Supreme Court E-Library

Ruling

accordingly, awarded Filipinas retirement pay differentials based on her latest salary as follows: P18,662.00/30 = P622.06/day P622.06 x 22.5 = P13,996.35 x 20 P279,927.00 _- P136,210.00 P143,717.00 [18] The LA, however, denied Filipinas claims for service allowance, salary increase, and damages for lack of sufficient bases, but awarded her attorneys fees equivalent to five percent (5%) of the total award, or the amount of P7,185.85. [19] Dissatisfied, GCHS filed an appeal before the NLRC. The NLRC Ruling In a Decision [20] dated August 30, 2002 (August 30, 2002 Decision), the NLRC set aside the LAs award, and ruled that Filipinas retirement pay should be computed based on her monthly salary at the time of her retirement on May 31, 1997, i.e. , P13,621.00. Moreover, it held that under Article 287 of the Labor Code, as amended by RA 7641, the retirement package consists of 15 days salary, plus 13 th month pay and SIL pay pro-rated to their one-twelfth (1/12) equivalent . [21] In view of the foregoing, the NLRC awarded Filipinas retirement pay differentials in the amount of P27,057.20 consisting of one-twelfth (1/12) of the 13th month pay and SIL pay based on her salary at the time of her retirement on May 31, 1997, or P13,621.00 multiplied by 20 years. It, however, deleted the award of attorneys fees for failure of Filipinas to show that GCHS had unreasonably and in bad faith refused to pay her retirement benefits. [22] Aggrieved, Filipinas filed a petition for certiorari before the CA. The CA Ruling In a Decision [23] dated April 30, 2007, the CA affirmed with modification the NLRCs Decision. It held that the Court, in the case of Capitol Wireless, Inc. v. Sec. Confesor, [24] has simplified the computation of one-half month salary by equating it to 22.5 days which is arrived at after adding 15 days plus 2.5 days representing one-twelfth of the 13th month pay, plus 5 days of [SIL]. [25] Accordingly, it computed Filipinas retirement benefits differential as follows: Monthly salary P 13,624.00 [26] ÷ 30 days ÷ 30 days Daily rate P 454.13 [27] x 22.5 days x 22.5 days ½ month salary [28] P 10,218.00 x 20 years x 20 years Total amount of retirement benefits P204,360.00 - Amount deposited in trust 136,210.00 Retirement benefits differential P68,150.00 [29] The CA further imposed legal interest at the rate of six percent (6%) per annum on the award reckoned from the date of the filing of the illegal dismissal complaint until actual payment [30] pursuant to the Courts Decision in Manuel L. Quezon University v. NLRC (MLQU v. NLRC) . [31] Unperturbed, GCHS filed the instant petition. The Issue before the Court The essential issue in this case is whether or not the CA committed reversible error in using the multiplier 22.5 days in computing the retirement pay differentials of Filipinas. The Courts Ruling The petition is bereft of merit. RA 7641, which was enacted on December 9, 1992, amended Article 287 of the Labor Code, providing for the r