New law raises retirement benefits for DFA retirees

MANILA, Philippines — Retired personnel of the Department of Foreign Affairs (DFA) will soon receive higher monthly pensions after the enactment of Republic Act No. 12181, which adjusts their benefits to keep up with the rising cost of living.

Signed into law on May 2, 2025, the measure grants a monthly pension differential to DFA retirees receiving pensions from the Government Service Insurance System (GSIS).

The differential is the gap between the adjusted pension computed by the DFA and the actual amount received from GSIS, multiplied by an adjustment factor set by the DFA.

Sen. Mark Villar, who sponsored the law, highlighted the importance of this adjustment for DFA personnel who served the country for decades.

“Imagine an Ambassador who has spent decades representing our country, safeguarding our national interests abroad, and being the face of the Philippines in foreign lands. Now, picture this same individual after a lifetime of service, struggling to make ends meet for their daily and medical needs,” Villar said.

He also assured that the adjusted benefits would not burden the national budget, as “funding will come from the fees charged for consular services collected under Executive Order No. 906, series of 2010, and not from the General Appropriations Fund.”

The law provides support for the families of deceased DFA retirees. Surviving unmarried legal spouses and qualified dependent children will be entitled to receive 50% of the pension differential that the retiree was receiving or entitled to receive.

“This provision aims to provide financial support to the family members of deceased retirees, ensuring that they are also taken care of after the retiree’s passing,” Villar said.

The law is expected to benefit long-serving diplomats and employees whose pensions have not kept pace with inflation and changes in the cost of living.