Title
Ligot vs. Mathay
Case
G.R. No. L-34676
Decision Date
Apr 30, 1974
A former congressman sought retirement gratuity based on a salary increase he never received during his term, but the Supreme Court ruled it unconstitutional, affirming benefits must align with actual earnings.

Case Summary (G.R. No. L-34676)

Legal Background

The legal context revolves around Commonwealth Act No. 186 and its amendments, as well as Republic Act No. 4134, which increased the salaries of members of Congress from P7,200.00 to P32,000.00 per annum. This salary increase, however, was subject to the provisions of the 1935 Constitution, primarily the prohibition against any increase in compensation for members of Congress during their term of office.

Case Details and Procedural History

Following the conclusion of his term, Ligot claimed retirement gratuity under Commonwealth Act No. 186 which requires a minimum of twenty years of continuous service for eligibility. A treasury warrant was initially issued in Ligot's favor, calculated based on the increased salary from Republic Act No. 4134. However, this warrant was not signed by Auditor Velasco pending clarification from the Auditor General regarding similar claims.

The Auditor General later denied Ligot's claim, reaffirming that the retirement gratuity for individuals whose terms ended on December 30, 1969, should be based on the salary of P7,200.00 per annum, the salary legally applicable during their service.

Legal Arguments and Decision

Ligot's appeal hinged on the assertion that since the salary increase to P32,000.00 became operative upon the expiration of his term, his retirement gratuity should reflect this higher rate. However, the Court dismissed this notion, emphasizing adherence to the constitutional prohibition against salary increases during the terms of incumbents.

The Court reiterated that allowing Ligot to claim a retirement gratuity based on an increased salary would essentially circumvent the constitutional restrictions intended to prevent salary inflation among current officials, thus defying Article VI, Section 14 of the 1935 Constitution.

Key Findings

  1. The law explicitly stipulated that salary increases for members of Congress could only take effect after the expiration of all terms of the Congress members who approved the increase.
  2. Ligot was legally entitled to only the P7,200.00 per annum figure during his terms, which remained consistent even after his retirement.
  3. Any retirement benefit derived from th

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