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Fiscal Responsibility of Heads of Agencies

Sec. 2 State Audit Code of the Philippines (PD 1445) It is the declared policy of the state that all resources of the government shall be managed, expended or utilized in accordance with law and regulations, and safeguarded against loss or wastage through illegal or improper disposition, with a view to ensuring efficiency, economy and effectiveness in the operations of government. The responsibility to take care that such policy is faithfully adhered to rests directly with the chief or head of the government agency concerned.

Jurisdiction, Powers and Functions of COA

Section 25, PD 1445. In keeping with its Constitutional mandate, the Commission adheres to the following primary objective: 1) To determine whether or not the fiscal responsibility that rests directly with the head of the government agency has been properly and effectively discharged; xxxxx

Fundamental Principles (Sec. 4 PD 1445)

No money shall be paid out of any public treasury or depository except in pursuance of an appropriation law or other specific statutory authority. Government funds or property shall be spent or used solely for public purposes. Trust funds shall be available and may be spent solely only for the specific purpose for which the trust was created or the funds received.

Fundamental Principles (Contd)

Fiscal responsibility shall, to the greatest extent be shared by all those exercising authority over the financial affairs, transactions and operations of the government agency. Disbursements or disposition of government funds or property shall invariably bear the approval of the proper officials. Claims against government funds shall be supported with complete documentation.

Fundamental Principles (Contd)

All laws and regulations applicable to financial transactions shall be faithfully adhered to. Generally accepted principles and practices of accounting as well as of sound management and fiscal administration shall be observed, provided that they do not contravene existing laws and regulations.

Personal Services includes salaries and wages, other compensation, personnel benefits contributions, and other personal benefits.

Basic Concepts
APPROPRIATIONS FOR PERSONAL SERVICES The appropriations for Personal Services of an agency are for Regular Plantilla Items and the Lump Sum Appropriation, for temporary, emergency and contractual employees.

Lump Sum Appropriation

In case of any lump-sum appropriation for salaries and lumpwages of temporary, emergency and contractual employees as provided in any GAA or other Acts, the expenditure of such appropriation shall be limited to the employment of persons paid by the month, by the day, or by the hour. (Sec. 35, Book VI, 1987 Adm. Code) The following are covered by Lump Sum Appropriations:
-Casual/Emergency Employees -Contractual

Personnel -Contract of Service/Job Order


The following are the basic requirements for the payment of salaries and wages: 1. Existence of a legally created position with fixed compensation or emolument attached to the positions. The position should be included in the plantilla of personnel prepared by the Agency and approved by the Compensation and Position Classification Bureau (CPCB) of the Department of Budget and Management (DBM) in accordance with the General Appropriations Act.

2. Issuance of a valid appointment. 3. Rendition of service being paid. The service must be actual and according to prescribed office or work hours, recorded on a time record, certified as correct by the employee concerned, and approved by his immediate supervisor. (Sec. 194, GAAM Vol. 1)

4. Payment to the right person. Payment shall be made directly to such official and employee except when there is an authority to collect the claim due him or her given to another person under a power of attorney or other forms of authority. The following persons are authorized:

immediate member of the family of the official or employee concerned; liaison officer duly designated by the chief or head of unit, office or agency. (COA cir. 85-248, Dec. 18, 1985, 85as amended by COA Cir. 86-248-A, March 17, 1988, Sec. 86-248195, GAAM Vol. 1)



An appointment shall be issued by a person or body authorized by law to make appointments in favor of a person who possesses the qualifications required by law. An appointment issued in accordance with pertinent laws and rules shall take effect immediately upon its issuance by the appointing authority.



It shall be submitted to the Civil Service Commission (CSC) within thirty (30) calendar days from the date of issuance otherwise it shall be made effective thirty (30) days prior to the date of submission to CSC. If the appointee has assumed the duties of the position, he shall be entitled to receive his salary at once without awaiting the approval of his appointment by the Civil Service Commission. His appointment shall remain effective until disapproved.



No official or employee shall be required to assume duty without being furnished with a copy of his appointment after it is issued by the appointing authority. The services rendered by any person who was required to assume the duties and responsibilities of any person without an appointment having been issued by the appointing authority, shall be the personal accountability of the person who made him assume office. (Rule IV, CSC, MC No. 40, as amended).


When an appointment is disapproved, the services of the appointee shall be immediately terminated, unless a motion for reconsideration or appeal is filed. Services rendered by a person for the duration of his disapproved appointment shall not be credited as government service for whatever purpose.


If the appointment was disapproved on grounds which do not constitute a violation of Civil Service law, such as failure of the appointee to meet the Qualifications Standards (QS) prescribed for the position, the same is considered effective until disapproved by the CSC. The appointee is meanwhile entitled to payment of salaries from the government.


The appointing authority shall be personally liable for the salary of appointees whose appointments have been disapproved for violation of pertinent law such as the publication requirement pursuant to RA 7041. The appointee whose appointment was made effective thirty (30) days prior to date of submission to the CSC, shall be entitled to payment of salary from the government immediately following the effectivity of the appointment. The salaries of the appointee for the actual service rendered before the approved effectivity date shall be the liability of whoever caused the delay. (Rule VI, CSC, MC No. 40, as amended; Sec. 193, GAAM Vol. I)


Types of Appointment
For our purpose, we classify the appointments as those which are covered by the regular plantilla and those which are charged against the lump sum appropriation. The appointments covered by the regular plantilla may be original, reinstatement, promotional or transfer.

Original appointment refers to the initial entry into the career service of persons who meet all the requirements of the position. (MC No. 14, s. 1999) Appointment by reinstatement the issuance of an appointment to a person who has been previously appointed to a position in the career service and who has, through no delinquency or misconduct, been separated there from or to one who has been exonerated of the administrative charges unless the decision exonerating him specifies restoration to his previous position. (MC No. 14, s. 1999)

Payment of the salaries of employees originally appointed or reinstated in the service who are already 57 years of age should not be allowed unless his reinstatement is duly approved by proper authorities (AG OM 220, 3-1-63 citing MC 319 Off. Pres., Sec. 12 (g), CA 186, as amended; Sec. 1, P.D. 1502)

Promotional appointment This is the advancement of an employee from one position to another with an increase in duties and responsibility as authorized by law, and usually accompanied by an increase in salary. The movement may be from one department or agency to another or from one organizational unit to another within the same department or agency.

Appointment by transfer a transfer is a movement from one position to another which is of equivalent rank, level or salary without break in service involving the issuance of an appointment. The transfer may be from one organizational unit to another in the same department or agency: Provided, however, that any movement from the nonnon-career service to the career service shall not be considered a transfer (Rule III, Sec. 4(d), CSC MC (Rule No. 40, as amended)

Casual/Emergency Appointment issued only for essential and necessary services where there is not enough regular staff to meet the demands of the service. (MC No. 14, s. 1999) Casual/emergency personnel are employed for a limited period not exceeding six months, or until the completion of a particular project in which their services are hired. They include skilled and unskilled personnel. Their continuance in the service depends on the appointing authority concerned. They are not, therefore compulsory members of the Government Service Insurance System. They are not subject to separation pay even if they are already 65 years of age or over. (Sec. 208, GAAM, Vol. I)

Employees who are paid on a daily wage basis are entitled to salaries or wages during special holidays proclaimed by the President. (P.D. No. 442, as amended; Sec. 205, GAAM Vol. I)

Contractual Appointment - Issued to a person who shall undertake a specific work or job for a limited period not to exceed one year. The appointing authority shall indicate the inclusive period covered by the appointment for purposes of crediting services. (MC No. 14, s. 1999) Contractual employees are those employed in the government in accordance with a special contract to undertake a specific work or job requiring special or technical skills not available in the employing agency, to be accomplished within a specific period, which in no case shall exceed one (1) year and who perform or accomplish the specific work or job under their own responsibility with minimum direction or supervision. (Sec. 6 (4), P.D.; Sec. 209, GAAM Vol. I).

The following rules must be observed in the hiring of contractual personnel:

Contractual personnel may be hired only if they are authorized and funds are available to support the payment of their salaries.

In no case shall contractual appointments or contracts of personnel services be issued to nonnontechnical personnel or those whose duties and functions are clerical or administrative in nature or those who will hold positions in the labor or trades and crafts groups. If such services are needed in support of the job or project, the regular staff or personnel may be augmented by hiring casual or emergency staff.

Contractual employees and consultants may be allowed not more than two (2) part-time contracts partwith two (2) government agencies at one time. In no case should they be designated Officers-inOfficers-inCharge or Executive Directors or the like wherein they exercise control or supervision over regular personnel in the hiring agency.

Contract of Services/Job Orders refer to the employment described as follows:


contract covers lump sum or services such as janitorial, security, or consultancy services where no employer-employee relationship exists; employerjob order covers piece of work or intermittent job of short duration not exceeding six months on a daily basis;


Contract of Services/Job-Orders Contract of Services/JobServices/JobServices/Job-Orders as distinguished from contractual personnel need not be submitted to the Civil Service Commission. Services rendered there under are not considered government services.

The contract of services and job orders are not covered by Civil Service Law, Rules and Regulations, but by rules of COA on the payment of a transaction. The employees involved in the contract of services or job orders do not enjoy the benefits enjoyed by government employees, such as PERA, ADCOM and RATA (Rule XI, CSC MC No. 40, as amended.


1. 2. 3. 4. 5. 6.

Certified true copy of duly approved appointment by appointing authority. Certified true copy of oath of office. Evidence of service rendered or daily time record (DTR) Evidence or certificate of compliance with the conditions set forth in approval of the appointment Statement of Asset and Liabilities Certificate/Notice of Assumption (Sec. 197, GAAM Vol. I; COA Circ. No. 92-389) 92-

Promotion/Salary Differential


Copy of approved appointment or notice of salary adjustment Certificate/Notice of Assumption to new position Certificate of service or DTR (Sec. 199, GAAM Vol. I; COA Cir. No. 92-389) 92-

In addition to the documents required for original appointment the following are required:
1. 2. 3.


Copy of authority to transfer Clearance from cash and property accountability Certificate of last salary received from former office certified by the Chief Accountant Certificate showing date when the appointee left his former official station (section. 200, GAAM Vol I COA Cir. No. 92-389) 92-

Casual/Contractual 1. Certified copy of the pertinent contract/appointment/Job Order (First Claim) 2. Certificate or evidence of service rendered or work accomplished 3. DTR


Allowance granted to all appointive national and local government employees occupying itemized plantilla positions, to casual and contractual employees , to uniformed personnel of the Armed Forces of the Philippines, Department of Interior & Local Government and the National Mapping Resource Information Authority, Philippine Coast Guard and the Department of Transportation and Communications pursuant to Sec. 47 of Republic Act (RA) 8250 in the FY 1997 GAA. (P500 per month) It is granted to augment a govt. employees pay due to the rising cost of living.
Computation of PERA paid on daily or part-time basis: partPERA for the Month=P500/mo.. x no. of days worked during the Month=P500/mo.. Work days/mo. month


Amount authorized under Administrative Order No. 53 dated May 17, 1993 granted to all government personnel whether regular or casual; and those on temporary status or contractual personnel whose employment is in the nature of a regular employee. AO No. 144 dated February 28, 2006, authorized the increase from P500.00 per mo. to P1,500.00 per mo. It is granted as a supplement to basic pay.

DBM & DepEd Joint Circular No. 20042004-1

Sec. 4.7 The RPSU of each DepEd-RO shall prepare DepEdthe payroll and other related documents for teachers and other personnel of the SDO including those in the elementary schools and Secondary Schools without financial staff under it. Sec. 4.7.1. Payment of salaries and allowances of teachers and other personnel in the SDO, elementary schools and SSs without financial staff under the coverage of SDOs shall be either through the use of continuous form checks or through ATMs.

REPRESENTATION ALLOWANCE (RA) Amount granted to authorized officials and employees for official entertainment while in the actual performance of their respective functions or duties and responsibilities pertaining to their positions.

TRANSPORTATION ALLOWANCE (TA) Amount granted to authorized officials and employees for transportation expenses which shall be paid from the programmed appropriations provided for their respective offices.

Limitations on RATA The grant of RATA is subject to the following rules: The officials/employees who are entitled to receive RATA are as follows:  Those who are expressly authorized in the GAA and those of equivalent rank as may be determined by the DBM; and  Those who are duly designated by competent/appointing authority to a vacant position which is entitled to RATA

Officials and employees allowed by law to collect monthly commutable representation and transportation allowances shall be paid from the programmed appropriations provided for their respective offices, not exceeding the rates indicated in the current GAA. The grant of commutable transportation allowance must be expressly authorized by law or provided in a budget approved by an appropriating body.

Officials and employees receiving commutable transportation allowance are no longer entitled to the use of any government vehicle in the performance of their official duties except as may be approved by the president. If one is used, a proportionate amount should be deducted.

Commutable RATA, by its very nature, are additional perquisites attached to a position, the enjoyment of which presupposes actual rendition of service incident to or in connection with the discharge of official duties. Hence, the official who is on leave for more than one month is not entitled to collect the same (COA Dec. 290, Sept. 13, 1982).

Documentary Requirements:

Authority to collect Representation and Transportation Allowance Certification for Representation and Transportation Allowance (COA Memo Mo. (COA 88-572) 88-

CLOTHING AND UNIFORM ALLOWANCE The appropriations provided for each department, bureau, office or agency may be used for uniform or clothing allowance of employees at not more than P4,000.00 each per annum which may be given in cash or in kind. It is granted to cover the cost of uniform/clothing of govt. employees to identify them with their mother agency or office. Annual Clothing allowance shall be given to all employees whether employed on permanent or emergency basis, who are in the service for at least six (6) consecutive months, provided he serves the agency for another six (6) months from the day he receives the allowance.

Govt. personnel who are required to wear uniforms at all times in the performance of their functions such as security guards, prison guards, firefighters, teachers, those who are in direct contacts with patients, and others occupying similar positions, shall be granted U/CA whether or not they meet the service requirement.

Amount paid for services rendered by government personnel performing activities or discharging duties in addition to, or over and above their regular functions, and payment for services of personnel with expertise or professional standing in recognition of his broad and superior knowledge in specific fields, provided that the total honorarium granted in any given year shall in no case exceed fifty percent of his annual salary. In the case of salary. personnel involved in government procurement, the honoraria should not exceed twenty-five percent (25%) twentyof the monthly basic salary of the payee.

Coverage:  Agency personnel performing or discharging duties in agency activities or special projects in addition to or over and above their regular functions regardless of the source of fund;  Researchers, experts and specialists who are acknowledged authorities in their field of specialization, other than those paid consultancy fees; and  Military personnel who are rendering security services to the Congress of the Philippines including its committees.

The following are shall continue to be paid honoraria at rates prescribed by existing rules and regulations:

Teaching personnel of the Department of Education, (DepEd) and State Universities and Colleges (SUCs) engaged in actual classroom teaching whose teaching load is outside regular office hours and/or in excess of regular load; Teaching personnel of SUCs designated as heads of department; Government personnel acting as lecturers, resource persons, coordinators and facilitators in seminars, training programs and other similar activities.

HAZARD PAY Hazard Pay is the compensation paid to employees who are working or assigned in difficult, dangerous, strifestrifetorn or embattled areas as certified by the Department of National Defense (DND) and whose lives are directly exposed to work conditions which may cause injury, sickness or death or harmful change in the human organism, such as: exposure to harmful chemicals, wastes and pollutants, micro-organisms and other microharmful elements, or situations that endanger life or health as certified by the authorized government agency. (RA 9336,FY 2005 GAA)

Special Hardship Allowance (IRR of RA 4670)

The superintendent of schools shall report to the Secretary of Education such schools where teachers need special-hardship allowance under the following specialcriteria: - The school is 10 or more kilometers from the poblacion and without means of regular transportation to reach it. - The school is a place declared by the President calamitous. - The travel to the school involves hazards to life, to be determined by the school superintendent.

Payment of Hazard Pay

Hazard pay shall be paid from the savings in the appropriations of the department/agency concerned which shall not be less than nor more than the amount prescribed in the GAA, except in the following cases:  Where the rates are specifically provided for under special laws, charters or enabling acts, in which case such rates shall govern; or  Where more incentives are needed to attract applicants, in which case the sum may be augmented at rates to be determined by the Department Heads.

Hazard pay benefits For Health Workers & Nutrition Personnel Pursuant to RA 7305 Entitled Magna Carta of Public Health Workers (DepEd Order 82, s. 2007)  Cognizant of the positive correlation between good health & academic performance, and the importance & relevance of the services of public health workers towards better health and nutrition to reduce drop-out droprates, and in order to attain the purposes of the law, the payment of hazard pay to all public health workers in the DepEd shall be enforced as provided for in DepEd Order No. 74, s. 2003.

Their entitlement to hazard pay is in consideration of the nature of their work, exposing them to high/low risk areas/workplaces as they provide health services to the school populace. In times of calamities or emergencies, these personnel are in the forefront rendering basic health and nutrition services, and their direct contact with the children, teachers and non-teaching personnel, and their noninterface with the parents during home visitation, highly exposes them to risks.

Duration of Entitlement to Hazard Pay The period of entitlement to hazard pay shall be coterminous with the duration of the actual assignment of the employee in said hardship or difficult area, or with the existence of such danger or peril, but in no case shall it exceed six months unless renewed and subsequent authority is granted therefore, based on the certification of the Secretary of National Defense.

Payment of Overtime Service

The authority to render overtime shall state the period within which such service is to be performed. The authority shall not extend beyond the scheduled date of completion.

As a general rule, the total amount of overtime compensation which may be allowed an employee for a given calendar year shall not exceed fifty percent (50%) of his/her annual basic salary. Overtime Pay shall be computed as follows:

For ordinary work days: Plus 25% of the hourly rate (0.25 x HR) Overtime Pay = 1.25xHRxNo. Of hours of OT services rendered  For rest days, holidays and non-work days: Plus 50% of the nonhourly rate (.50xHR)

Funding Source For NGAs including SUCs, the overtime pay shall be charged against:  The amounts specifically appropriated for the purpose in agency budgets and/or savings from released allotments for current operating expenditures provided that all mandatory expenses as authorized by law have been paid; and

Total overtime payments made in a given calendar year shall not exceed 5% of the total salaries of authorized positions of the agency. Such savings may be used without need for prior authority from the DBM, provided that all the conditions are fully satisfied.

COMPENSATORY TIME-Off TIMESection 1 (d) of AO 103 (Directing the Continued Adoption of Austerity Measures in the Government) dated August 31, 2004, provides for the adoption of a scheme that will allow employees to be compensated through time/days off in lieu of overtime pay. Thus, the Civil Service Commission and DBM Joint Circular No. 2, s. 2004, was issued to implement said provision.

Compensatory Time-off (CTO) refers to the no. of hours or days an employee Timeis excused from reporting for work with full pay and benefits. It is a nonnonmonetary benefit provided to an employee in lieu of overtime pay. GUIDELINES Overtime services which may be compensated through CTO as may be authorized by heads of agencies for the following activities:  Completion of infrastructure and other projects with set deadlines when due to unforeseen events the deadlines cannot be met without resorting to overtime work;

Relief, rehabilitation, reconstruction and other related work or services during calamities and disasters; Work related to school t graduation/registration where the additional work cannot be handled by existing personnel during regular work hours;

Work involving the preparation and administration of government examinations, including the prompt corrections and release of results thereof where existing personnel are not adequate to handle such work during regular work hours; Seasonal work such as budget preparation and rendition of reports to meet scheduled deadlines; Preparation of special/financial/accountability reports required occasionally by central monitoring agencies like Congress of the Philippines, Office of the President, COA, DBM, and NEDA; The provision of essential public services during emergency situations, such as power and energy, water, distribution and control of basic staples, communication and transportation, medical and health services, peace and order and security;

Implementation of special program/projects embodied in Presidential directives and authorizations with specific dates of completion; Legal services to facilitate the dissolution of cases/resolutions/decisions; Services rendered by drivers and other immediate staff of officials when required to keep the same working hours as their superiors; and Such other activities as may be determined by the head of agency.



As a result of services rendered beyond regular work hours, and/or those rendered on Saturdays, Sundays, holidays or scheduled days off without the benefit of overtime pay, an employee earns accrued no. of hours worked. These are collectively referred to as Compensatory Overtime Credit (COC). The COC is expressed in no. of hours and computed as follows: . For overtime services rendered on weekdays and scheduled work days; COC = No. of Hours of Overtime Services x 1.0 off: . For overtime services rendered on weekends, holidays or scheduled days COC = No. of Hours of Overtime Services x 1.5

ACCRUAL AND USE OF COCs Employees may accrue not more than 40 hours of COC in a month. In no instance, however, shall the total COC exceed 120 hours at any given time. COC in excess of the limit shall be forfeited.  COCs shall be used as a time-off within the year they are earned until the timeimmediately succeeding year. Thereafter, any unutilized COCs are deemed forfeited.

The COCs shall be considered as official time for the following purposes: 1. compliance with compensation rules relative to the entitlement to PERA, Adcom, Year-end Benefits, and other benefits received on regular Yearbases; 2. computation of service hours for entitlement to vacation and sick leave credits, and step-increment due to length of service. step-



The COCs cannot be used to offset undertime/s or tardiness incurred by the employee during regular work days. The COCs cannot be converted to cash, hence are not commutative. The COCs cannot be added to regular leave credits of the employee. Hence it is not part of the accumulated leave credits of the employee.

Documentary Requirements:

Certificate of service or DTR Authority to render overtime service Accomplished report signed by employee and supervisor (COA Cir. No. 92-389) 92-

Holiday Pay
YearYear-End Bonus and Cash Gift The year-end bonus equivalent to one(1) month basic salary and yearadditional cash gift of P5,000.00 provided under Republic Act No. 6686 as amended by Republic Act. No. 8441, shall be granted to all national government officials and employees, whether regular, temporary, casual or contractual status, on full-time or part-time basis, who have rendered at fullpartleast a total of four (4) months of service including leaves of absence with pay from Jan. 1 to Oct. 31 of each year, and who are still in the service as of Oct 31 of the same year.

Payment of the authorized benefits shall be made not earlier than May 1 or later than May 31 of the particular year. CASH GIFT The cash gift is granted to all government employees pursuant to Republic Act. No. 6686 as amended by Republic Act. No. 8441. Government personnel who have rendered less than four (4) months of service as of October 31 of the same year shall be entitled solely to the cash gift propro-rated as follows:

Length of Service Percentage 3 months but less than 4 months 2 months but less than 3 months 1 month but less than 2 months Less than 1 month 40% 30% 20% 10%

PROPRO-RATED SHARE IN THE REMAINING BALANCE OF CASH GIFT With the issuance of Budget Circular No. 2003-2, all 2003government personnel who have rendered more than four (4) months of service in a given year before their retirement/separation from service may receive a proportionate share of the remaining balance of the cash gift in addition to the year-end bonus. yearThe pro-rated share of the cash gift follows a twenty percent pro(20%) gradation for every month of service, in excess of the four months service requirements.

Month of retirement/separation from service May June July August September October

Percentage 0% 20 % 40 % 60 % 80 % 100 %

Amount 0.00 500.00 1,000.00 1,500.00 2,000.00 2,500.00


This refers to the incentive benefits given in recognition of the government employees productivity and performance pursuant to Administrative Order No. 161 dated December 6, 1994. LIFE RETIREMENT AND RETIREMENT INSURANCE CONTRIBUTIONS This refers to the government share in premium contributions to the life insurance and retirement funds of the GSIS. These expenses are treated as part of the price of the services of the employees.

Membership in the GSIS Membership in the GSIS shall be compulsory for all employees receiving compensation, irrespective of employment status, who have not reached the compulsory retirement age at the time of election or appointment. (Sec. 2.1.1, Rule III, IRR 1997 GSIS Act)

Contractual and other employees with an employee relationship to an employer are included under compulsory coverage, provided that the following conditions that determine an employee-employer employeerelationship exist:

The person was selected and engaged by an employer as an individual, rather than as representative, assignee or agent of another entity;

The employer pays the salary to the employee as an individual; The employer has power of dismissal; and The employer has the power to control the means and the result of the work to be done. (Sec. 2.1.2, Rule II, IRR 1997 GSIS Act)

Benefit Coverage All members of the GSIS shall be covered with life insurance and social security protection including retirement, disability, survivorship, separation, and unemployment benefits, and such other benefits and protection as may be extended to them by GSIS, subject to the limitations provided by law. (Sec. 2.2.1, Rule II, IRR 1997 GSIS Act)

Amount of Contributions Section 3.1 of the Implementing Rules and Regulations of RA 8291 as amended: Amount of contributions. It shall be mandatory for the covered employee and the employer to pay the monthly contributions specified in the following schedule:

For all employers and employees, except for those Members of the Judiciary and the Constitutional Commissioners: Monthly compensation Employees Share Employers Share (MC) Basic Salary (MC) 9% 12% of MC

For members of the Judiciary and the Constitutional Commissioners:

Monthly Compensation (MC) Employees Share Employers Share

Regardless of the amount



Optional Insurance A member may at any time apply for optional life insurance and pre-need coverage for himself preand/or his dependents.

Types of Life Insurance and Pre-Need Products PreAn applicant for optional life insurance may choose ordinary life, limited payment life, and single payment, joint life, endowment, term insurance and such other types of insurance as may be approved by the GSIS. An applicant for pre-need coverage may choose from prethe various types of educational, memorial, hospitalization products as well as other types of prepre-need products that may be approved by the GSIS.

Retirement Benefit under RA 8291 (1997 GSIS Act)

The lump-sum equivalent to sixty (60) months of lumpthe basic monthly pension (BMP) payable at the time of retirement plus an old-age pension benefit oldequal to the basic monthly pension payable for life, starting upon the expiration of the five-years fivecovered by the lump-sum; or lumpA cash payment equivalent to eighteen (18) months his/her basic monthly pension plus monthly pension for life payable immediately.

Conditions for Entitlement to Retirement Benefit: Benefit:


He/she has rendered at least fifteen (15) years of service; He/she is at least sixty (60) years of age at the time of retirement; and He/she is not receiving a monthly pension benefit for permanent total disability

Other Features of the Retirement Benefit:


Retirement shall be compulsory at age 65 Employees who entered the service before June 1, 1977 and who have not received any separation or retirement benefits have the option to retire under Republic Act No. 1616, 660 or 8291 Retirement benefits shall be paid on the last day of service in government if all requirements are submitted to the GSIS at least thirty (30) days prior to the effective date of retirement.

The following documents shall be filed in duplicate with the GSIS Head Office or any Branch Office, as the case may be, at least thirty (30) days before the date or retirement for processing and payment of benefit.

Other Retirement Options The following retirement options are available to those who were in the service before June 1, 1977;


RA 8291 and PD 1146 for those who have rendered at least fifteen (15) years service and are at least sixty (60) years of age upon retirement. RA 1616 for those who have rendered at least twenty (20) years service RA 660 for those who pass the Magic 87, the two options available to them are RA 8291 and PD 1146.

For those who came into the service after May 31, 1977, the two options available to them are RA 8291 and PD 1146; For those who came into the service on or after June 24, 1997, the only option open to them is RA 8291. [Primer on GSIS Act of 1997 (RA No. 8291]

Membership in the PAG-IBIG Fund PAGMembership in the Fund shall be mandatory upon all employees covered by the Social Security System and the Government Service Insurance System, and their respective employers; Provided, however, that coverage of the employees whose monthly compensation is less than four thousand pesos (P4,000.00) shall be voluntary. (Sec. 1, Rule IV, IRR of RA No. 7742) Portability of Membership A member who transfers to another employer or who becomes selfself-employed carries with him his total accumulated value. (Sec. 1, Rule IV, IRR of RA No. 7742)

Return Contributions A member shall be entitled to receive his total accumulated value upon termination of his membership, free from any pending obligation with the Fund or any of its loan Programs. In the event of his death, his legal heirs shall likewise receive the same, free from any pending obligation with the Fund or any of its loan programs.

Optional Withdrawal of Contributions

A new member of the Fund after the effectivity of Republic Act No. 7742 shall be allowed partial withdrawal after ten (10) or fifteen (15) years of continuous membership, provided he has no outstanding housing loan with the fund at the time of withdrawal. This option may be exercised only once and shall not prejudice his continuing membership in the Fund. The exercise of this option by the member shall not be considered as a ground to terminate his membership with the Fund. He shall continue to be mandatorily covered by the Fund and his employer is mandated to deduct and remit the employees required contribution together with his employers contribution pursuant to these Rules.

Termination of Membership Membership shall be terminated anytime upon the occurrence of any of the following:

Membership term maturity Death Retirement Permanent total disability or insanity


Departure from the country permanently Termination from the service by reason of health.

Membership in Philhealth
Applicable Laws, Rules and Regulations: All government employees who entered government service should register with the Philhealth to enable them and their dependent(s) to secure Philhealth Identification Numbers and provide the Philhealth the necessary data and information to facilitate transactions related to their availment of benefits.

The contribution schedule for the payment and collection of contributions to the National Health Insurance Program or NHIP pursuant to PHILHEALTH Circular No. 004-2000 dated March 21, 0042000.

Monthly Salary Range

Salary Base

Monthly Contribution

Employer Share

Employees Share

P 3,499.99 and below 3,500.00 to 3,999.99 4,000.00 to 4,499.00 4,500.00 to 4,999.99 5,000.00 to 5,499.99 5,500.00 to 5,999.99 6,000.00 to 6,499.99 6,500.00 to 6,999.99 7,000.00 to 7,499.99 7,500.00 and up

P 3,000.00 3,500.00 4,000.00 4,500.00 5,000.00 5,500.00 6,000.00 6,500.00 7,000.00 7,500.00

P 75.00 87.50 100.00 112.5 125.00 137.50 150.00 162.50 175.00 187.50

P 37.50 43.75 50.00 56.25 62.50 68.75 75.00 81.25 87.50 93.75

P 37.50 43.75 50.00 56.25 62.50 68.75 75.00 81.25 87.50 93.75


(Rule XVI of the Omnibus Rules Implementing Book V of EO 292, as amended by CSC MC Nos. 41 s. 1998; 6 and 14s 1999) This is the payment for the money value of the total accumulated leave credits of an employee based on the highest salary rate received prior to, or upon retirement date/voluntary separation.

It is applied for by an official or an employee who intends to sever his connection with his employer. Accordingly, the filing of application for terminal leave requires as a condition sine qua non, the employee's resignation, retirement or separation from the service. It must be shown first that public employment ceased by any of the said modes of severances. (Sec. 35, Rule XVI, Omnibus Rules on Leave as amended by CSC MC No. 41 s. 1998)

Approval of Terminal Leave

Application for commutation of vacation and sick leave in connection with separation through no fault of an official or employee shall be sent to the head of department concerned for approval. In this connection, clearance from the Ombudsman is no longer required for processing and payment of terminal leave as such clearance is needed only for payment of retirement benefits. (Sec. 36, Rule XVI, Omnibus Rules on Leave as amended by CSC MC no. 41, s. 1998)

Payment of Terminal Leave Any official/employee of the government who retires, voluntarily resigns, or is separated from the service through no fault of his own, and who is not otherwise covered by special law, shall be entitled to the commutation of his leave credits exclusive of Saturdays, and Holidays without limitation and regardless of the period when the credits were earned. (Sec. 36, Rule XVI, Omnibus Rules on Leave as amended by CSC MC no. 41, s. 1998)

Period within Which to Claim Terminal Leave Pay Request for payment of terminal leave benefits must be brought within ten (10) years from the time the right of action accrues upon an obligation created by law. (Sec. 36, Rule XVI, Omnibus Rules on Leave as amended by CSC MC no. 41, s. 1998)

Basis of computation of Terminal Leave Payment of terminal leave for purposes of retirement or voluntary resignation shall be based on the highest monthly salary received at any time during his period of employment in the government service and not on his latest salary, unless the latter is the highest received by the retiree. (Sec. 36, Rule XVI, Omnibus Rules on Leave as amended by CSC MC no. 41, s. 1998)

Documentary Requirements to Support the Payment of Terminal Leave


Approved application for leave Complete service record Clearance from money, property and legal accountability Statement of Assets and Liabilities

Additional requirements in case of field employees:


Clearance from central office Clearance from office of last assignment



Based on length of service only Step increments for meritorious performance is already considered in the grant of Productivity Incentive Benefits Legal basis: Sec. 13 c of RA 6758 Amount: One step for every three years of continuous satisfactory service in a particular position (based on the Monthly Salary Schedule for Civilian Government Personnel, effective June 1, 2008)


Beneficiaries: Permanent government officials & employees Fund source: Regular Agency Budget(1% of total salaries)

LEAVE BENEFIT Leave benefit is generally defined as a right granted to officials and employees not to report for work with or without pay as may be provided and as the rules prescribed in Rule XVI. (MC no. 41, s. 1998)

The regular leave benefits for government officials and employees are vacation leave, sick leave, maternity leave, paternity leave, and parental leave for solo parent. Vacation Leave refers to leave of absence granted to officials and employees for personal reasons, the approval of which is contingent upon the necessities of the service.

Sick Leave refers to leave of absence granted only on account of sickness or disability on the part of the employee concerned or any member of his immediate family. Immediate family refers to the spouse, children, parents, unmarried brothers and sisters and any relative living under the same roof and dependent upon the employee for support.

Appointive officials up to the level of Heads of Executive Departments, Head of Departments, Undersecretaries and employees of the government whether permanent, temporary, or casual, who render work during the prescribed office hours, shall be entitled to 15 days vacation and 15 days sick leave annually with full pay exclusive of Saturdays, Sundays, Public Holidays, without limitation as to the number of days of vacation and sick leave that they may accumulate. (Sec. 1, Rule XVI, CSC Omnibus Rules on (Sec. Leave, as amended by CSC MC Nos. 41, s. 1998; 6 and 14, s. 1999)

Employees rendering services on part-time basis are partentitled to vacation and sick leave benefits proportionate to the number of work hours rendered. A part-time employee who renders four (4) hours of partwork five (5) days a week or a total of 20 hours a week is entitled to 7.5 days sick leave and 7.5 vacation leave annually with full pay. (Sec. 1, MC No. 14, s. 1999)

Employees on rotation basis shall be entitled to vacation and sick leave corresponding to the periods or services rendered by them. If an employee has been allowed to work in two or more shifts or rotation, the periods of actual service covered by each shift or rotation should be added together to determine the number of years, months and days during which leave is earned. (Sec. 5, Rule XVI, Omnibus Rules)

Absence on a regular day for which suspension of work is announced Where an official or an employee fails to report for work on a regular day for which suspension of work is declared after the start of the regular working hours, he shall NOT BE considered ABSENT FOR THE WHOLE DAY. INSTEAD, HE SHALL ONLY BE DEDUCTED LEAVE CREDITS OR THE AMOUNT CORRESPONDING TO THE TIME WHEN OFFICIAL WORKING HOURS START UP TO THE TIME THE SUSPENSION OF WORK IS ANNOUNCED. (Sec. 32, MC No. 14, s. 1999)

Contractual employees are entitled to vacation and sick leave credits as well as special leave privileges. (Sec. 4, Rule XVI, CSC Omnibus Rules on Leave, as amended by CSC MC Nos. 41, s. and 6 14, s. 1999)

Monetization of Leave/Service Credits Officials and employees in the career and non-career nonservice whether permanent, temporary, casual, or co-terminus, who have accumulated fifteen (15) codays of vacation leave credits shall be allowed to monetize a minimum of ten (10) days: Provided, that at least five (5) days is retained after monetization and provided further that a maximum of thirty (30) days may be monetized in a given year.

Monetization of fifty (50%) of all accumulated leave credits may be allowed for valid and justifiable reasons subject to the discretion of the agency head and availability of funds. (Sec. 22-23, Rule XVI of the Omnibus Rules on Leave, as amended 22by CSC MC Nos. 41, s. 1998; 14, s. 1998)

If an officer or employee does not avail of the privilege of monetizing his vacation leave/service credits in a year, it shall be deemed included in his accumulated leave credits.

An officer or employee who availed of the maximum ten (10) vacation leave/service credits can still go on five (5) days forced leave as provided for under EO No. 1077 dated January 9, 1986. Teachers who have accumulated service credits, may also avail of this privilege provided that the service credit shall be converted to vacation and sick leave in accordance with the Conversion Rate of Service Credits prescribed in Sec. 45, Rule XVI, CSC Omnibus Rules on Leave, as amended by CSC MC Nos. 41, s. 1998; 6 and 14, s. 1999.

Funding for the monetization of vacation leave credits/service credits shall be charged against the savings of the department, agency, and government unit concerned. Provided that in utilization of savings, agencies shall give priority to payment of monetized leave credits/service credits and provided further that employees holding positions below salary grade 19 shall be given preference in the availment of the privilege. (Joint CSC and DBM Cir. No. 1, s. 1999)

Forfeiture of Leave Credits

Leave credits cannot be availed of in the following instances:

A person who was separated by virtue of court conviction is not entitled to the commutation of vacation and sick leave to his credit, his separation is considered as though his fault (COA Dec. 217, Aug. 7, 1979)

An official, employee or laborer of the government who upon termination of the administrative case filed against him is considered as involuntarily separated, and is not entitled to the benefits guaranteed under Section 286 of the revised Administrative Code. The separation not being voluntary but for cause, such official, employee or laborer is not entitled to commutation of leave credits immediately upon separation from the service. (opinion of the Sec. of Justice, No. 144, series of 1958; Ex. Sec. 10th Ind., dated August 8, 1995)

An official/employee who reached the compulsory retirement age of 65 but whose services have been extended by the Civil Service Commission for another six (6) months, can no longer earn leave credits (sec. 42, Rule XIV, CSC Omnibus Rules, as amended by CSC MC Nos. 41, s. 1998; 6 and 14, s. 1999)

Maternity Leave Documentary Requirements:  Approved application for leave accompanied by a medical certificate showing that the woman is on the family way and nearing delivery  Clearance, if in excess of thirty days  Marriage contract for first maternity leave (COA Cir. No. 92-389) 92-

Limitations on Maternity Leave:

Permanent and Regular Employees

Every woman in the government service who has rendered an aggregate of two (2) or more years of service, shall, in addition to the vacation and sick leave granted them, be entitled to maternity leave of sixty (60) calendar days with full pay.

Maternity leave of those who have rendered one (1) year or more but less than two (2) years of service, shall be computed in proportion to their length of service, provided, that those who have served for less than one (1) year shall be entitled to 60 days maternity leave with half pay. It is understood that enjoyment of maternity leave cannot deferred but should be enjoyed within the actual period of delivery in a continuous and uninterrupted manner not exceeding 60 calendar days. (Sec. 11, Rule XVI, Omnibus Rules on Leave as amended by CSC MC No. 22, s. 2002)

A married woman may be granted maternity leave more than once a year. It shall be granted to female employees in every instance of pregnancy irrespective of its frequency. (Sec. 13, Rule XVI, Omnibus Rules on Leave as amended by CSC MC No. 22, s. 2002) Maternity leave with pay may be granted even if the delivery occurs not more than 15 calendar days after the termination of employees service as her right thereto has already accrued. (Sec. 15, Rule XVI, Omnibus Rules on Leave as amended by CSC MC No. 41, s. 1998)

Maternity leave of employee with pending administrative case. A married woman employee is entitled to maternity leave of absence with pay even if she has a pending administrative case. (Sec. 17, Rule XVI, Omnibus Rules on Leave as amended by CSC MC No. 22, s. 2002)

Maternity leave of contractual employee. All contractual employees shall be entitled to maternity leave benefits like regular employees. (Sec. 18, Rule XVI, Omnibus Rules on Leave as amended by CSC MC No. 22, s. 2002) Married or unmarried women may go on maternity leave for less than sixty (60) days. When an employee wants to report back for duty before the expiration of her maternity leave, she may be allowed to do so provided she presents a medical certificate that she is physically fit to assume the duties of her position.

The commuted money value of the unexpired portion of the leave need not be refunded and that when the employee returns to work before the expiration of her maternity leave, she may receive both the benefits granted under the maternity leave law and the salary for actual services rendered effective the day she reports for work. (Sec. 14, Rule XVI, Omnibus on Leave, CSC MC No. 41, s. 1998; 14 s. 1999; 22 s. 2002)

Paternity Leave non-cumulative/non-commutative non-cumulative/non Paternity leave of seven (7) days shall be nonnoncumulative and strictly non-commutative. The same nonmay be enjoyed either in a continuous or in an intermittent manner by the employee on the days immediately before, during and after the childbirth or miscarriage of his legitimate spouse. (Provided under CSC MC No. 41, s. 1998 and amended by CSC MC No. 14, s. 1999)


Parental leave shall refer to leave benefits granted to a solo parent to enable said parent to perform parental duties and responsibilities where physical presence is required. COVERAGE Any individual in the government service who falls under any one of the following categories shall be considered a Solo Parent for the availment of Parental Leave.



A woman who gives birth as a result of rape and other crimes against chastity, even without a final conviction of the offender: Provided, that the mother keeps and raises the child; Parent left solo or alone with the responsibility of parenthood due to any of the following circumstances:

 Death of spouse; detention of the spouse or serving sentence for a criminal conviction for at least one (1) year;  Physical/mental incapacity of spouse as certified by a public medical practitioner; Legal separation or de facto separation from spouse for at least one year provided he/she has custody of the children;  Declaration of nullity or annulment of marriage as decreed by a court or by a church, provided, he/she has custody of the children; and Abandonment of spouse for at least one year;

3. Unmarried person who has preferred to keep and rear the children instead of having others care for them or give them up to a welfare institution; 4. Any other person who solely provides parental care and support to a child or children provided said person is duly licensed as a foster parent by the DSWD or duly appointed legal guardian by the court;

5. Any family member who assumes the responsibility of head of family as a result of death, abandonment, disappearance or prolonged absence of the parents or solo parent: Provided, that such abandonment, disappearance, or absence lasts for at least one (1) year.


The parental leave of seven (7) days in addition to existing leave privileges shall be granted to any solo parent employee subject to the following conditions: 1. The solo parent must have rendered government service for at least one (1) year, whether continuous or broken, reckoned at the time of the effectivity of RA 8972 on Sept. 22, 2002 and regardless of employment status.

2. The parental leave shall be availed of every year and shall not be convertible to cash unless specifically agreed upon previously. If not availed of within the calendar year, said privilege shall be forfeited within the same year.

3. The parental leave shall be availed of on a staggered or continuous basis, subject to the approval of the head of agency/office. In this regard, the solo parent shall submit the application for parental leave at least one (1) week prior to its availment, except on emergency cases. 4. The solo parent employee may avail of parental leave under any of the following circumstances:


attend to personal milestones of a child such as birthdays, first communion, graduations and other similar events; perform parental obligations such as enrollment and attendance in school programs, PTA meetings and the like; attend to medical, social, spiritual and recreational needs of the child; and other similar circumstances necessary in the performance of parental duties and responsibilities, where physical presence of a parent is required.


Changes in the status and family situation of a solo parent such as: marriage or the concerned parent is no longer left alone with the responsibility of parenthood. However, the termination shall be without prejudice to reapplication should circumstances warrant. The head of agency/office concerned may determine whether granting of parental leave is proper or may conduct the necessary investigation to ascertain if grounds for termination and withdrawal of the privilege exist.

Special leave privileges in addition to the vacation, sick, maternity and paternity leave, officials and employees with or without existing or approved Collective Negotiation Agreement (CNA), except teachers and those covered by special leave laws, are granted the special leave privileges subject to the following stated conditions:

Personal milestones such as birthdays/wedding/wedding anniversary celebrations and other similar milestones, including death anniversaries. Parental obligations such as attendance in school programs, PTA meetings, graduations, first communion; medical needs, among others, where a child of the government employee is involved.

Filial obligations to cover the employees moral obligation toward his parents and siblings for their medical and social needs. Domestic emergencies such as sudden urgent repairs needed at home, sudden absence of a yaya or maid, and the like

Personal transactions to cover the entire range of transactions an individual does with government and private offices such as paying taxes, court appearances, arranging a housing loan, etc. Calamity, accident, hospitalization leave pertain to force majeure events that affect the life, limb, and property of the employee or his immediate family.


employee can still avail of his birthday or wedding anniversary leave if such occasion falls on either a Saturday, Sunday or Holiday, either before or after the occasion. applying for special privilege leaves shall no longer be required to present proof that they are entitled to avail of such leaves.


 Three-day Three-

limit for a given year shall be strictly observed: an employee can avail of one special privilege leave for three (3) days or a combination of any of the leaves for maximum of three days in a given year. Special leave privileges are nonnoncumulative and strictly non-convertible to cash. non-

Service Fees, Incentives or Commissions

Granting of service fees, incentives or commissions - this kind of extra compensation is granted by the GSIS and other government offices as authorized by the Office of the President for the remittance of premiums, amortization, interests, etc. due these offices. (Sec. 65, PD 1177; Sec. 6, CA 186, as amended; Sec. 290, GAAM Vol. 1)

Deposit of service fees collected service fees collected shall be deposited with the national or public financial institution treasury and shall accrue in the general fund pursuant to Sec. 50 of PD 1177 (Sec. 44, Bk. VI, EO 292). Such fees may be made 292). available for payment of incentive or service fees to employees who are actually and directly involved in the collection: Provided however, that the share of any employee may not, in the aggregate, exceed fifty (50%) percent of his annual salary.

Quarters Allowance quarters have been construed to include the place of lodging and the actual and necessary cost of illumination and water. It also includes use of electric power for the use of radio or refrigerator or any electrical device used in the home.

Loyalty Cash Gift

Civil Service Commission Memorandum Circular No. 06s. 2002 provides that the payment of loyalty cash gift shall not be less than P500.00 but not more than P1,000.00 for every year of service to qualified officials and employees. DedEd Order No. 55 s. 2003 has set the amount of P500.00 as loyalty cash gift to be given to DepEd officials and employees.

Anniversary Bonus

The Anniversary Bonus (AB) is a financial incentive authorized under Administrative Order No. 263 dated March 28, 1996, to be granted to government employees on the occasion of their agencies milestone years.

All government personnel whether employed on full-time or fullpartpart-time bases under permanent, temporary or casual status, elective or appointive, including contractual personnel whose employments are in the nature of regular employees who have rendered at least 1 year of service in the same agencies as of the date of milestone years and continue to be employed in the same government entities as of the occasion of their milestone anniversaries.

Not Covered

Those absent without leave as of the date of the milestone year for which the anniversary bonus is being paid; Those who are no longer in the service in the same government entity as of the date of the milestone year; and Those Consultants, laborers of contracted projects (pakyaw), student laborers, apprentices, mail contractors, those paid on piecework bases and others similarly situated.

Rules and Regulations

The anniversary bonus shall be paid at P3,000.00 per personnel, provided that he/she has rendered at least 1 year of service in the same agency. In case of insufficiency of funds, a lesser but uniform amount of anniversary bonus may be paid to the personnel entitled thereto. A milestone year refers to the 15th anniversary and to every 5th year thereafter.

The counting of milestone years shall start from the year the government entity was created regardless of whether it was subsequently renamed or reorganized, provided that its original primary functions have not substantially changed. Otherwise, the counting of milestone years shall start from the date the functions were substantially changed.


The counting of the milestone years of merged agencies shall start from the date they were merged. Officials and employees in government entities attached to or placed directly under a department or department level entity and which creations are not through charters, may be considered as organic personnel of the mother department/department level entity, for purposes of the grant of the anniversary bonus.

The anniversary bonus shall be granted only during milestone years and shall be received by the employee only once every 5 years, regardless of transfer from one government entity to another. Govt. personnel who were found guilty of any offense in connection with their work during the 5-year interval 5between milestone years shall not be entitled to the immediately succeeding anniversary bonus.

Funding Source

For NGAS including SUCs, the amounts shall be solely charged against savings for released allotments for current operating expenses, provided that all authorized mandatory expenses shall have been paid first.

Those who thank God Even in trials turn the burden into blessings So, keep your faith close to your heart And God shall provide the comfort you need

Traveling Expenses
Include expenses incurred in the movement of persons whether employed in the government or not , such as transportation, subsistence, lodging and travel per diems, hire of guides or patrol; transportation of personnel baggage or household effects; bus, railroad, airline and steamship fares, tips, transfers, etc. of persons while on official travel whether foreign or local; charter of boats, launches, automobiles, etc. nonnon-commutable transportation allowances, road tolls, parking fees and other expenses. Rates of allowances for official local and foreign travels of government personnel are provided under EO 248 as amended by EO 298.

Approval of Travel
Under EO 298, official local travel shall be approved as follows: Less than thirty (30) days Thirty (30) days or more Head office/Bureau or equivalent Department Secretary or equivalent (to be construed as Approved by Budget Secretary)

Allowable Travel Expenses

Pursuant to EO 298, the allowable travel expenses are as follows: Total Per day P800.00 Hotel/ Lodging Meals Incidental Expenses

50% - P400 30% - P240 20% -P160

Allowable Travel Expenses (contd.)

Claims for reimbursement of actual travel expenses in excess of the travel expenses authorized may be allowed upon certification of the head of the agency concerned as absolutely necessary in the performance of assignment and presentation of bills and receipts. Provided that, certification or affidavit of loss shall not be considered as appropriate replacement for the required hotel/lodging bills and receipts.

Entitlement to Travel Expenses

Particulars Percentage To Cover Hotel/lodgingHotel/lodging- 50% MealsMeals- 20% Incidental Expenses- 20% Expenses-

Arrival not later than 12:00 noon Arrival after 12:00 noon Departure before 12:00 noon Departure at 12:00 and later



Hotel/lodgingHotel/lodging- 50% MealsMeals- 10% Incidental Expenses- 20% Expenses-


BreakfastBreakfast- 10% Incidental Expenses- 20% ExpensesBreakfastBreakfast- 10%


LunchLunch- 10% Incidental Expenses- 20% Expenses-

Specific Guidelines on Local Travel


The amount of transportation expenses allowable shall be the actual rates of the authorized means of transportation plus other incidental expenses: expenses:
1.a From the office or residence to the point of embarkation; embarkation; 1.b From the point of embarkation to the point of debarkation in the place of destination; destination; 1.c From the point of debarkation to the office or destination or temporary residence in the place of assignment in the field and return. return.

Specific Guidelines on Travel

2. The allowable transportation expenses shall not include local or inland transportation and other expenses after arrival in the office or temporary residence in the place of assignment in the field which are contemplated to be covered by the travel allowance. allowance. 3. Only ordinary public conveyance or customary modes of transportation shall be used. used.

Specific Guidelines on Travel

4. Payment of travel expenses for travel/ assignment to places within the fifty (50) kilometer radius from the last city or municipality covered by the MMA, or the city or municipality wherein their permanent official station is located in the case of those outside the MMA, shall be allowed only upon presentation of bills or invoices with official receipts of expenses that they stayed in the place of their assignment for the duration of travel.

Specific Guidelines on Travel

4. continuation. - If they commute daily from the place of their assignment to the place of their residence or permanent official station, they shall be allowed only the reimbursement of actual fare and cost of meals and incidental expenses which shall in no case exceed four hundred pesos (P400.00) per day.

Specific Guidelines on Travel

5. Where government vehicles are used, the officials and employees are not entitled to the transportation expenses. expenses. 6. No reimbursement of the cost of gasoline and oil shall be allowed where a private vehicle is used. used.

Specific Guidelines on Travel

7. The travel allowance shall not be allowed in

cases where the fare includes meals and quarters en route, or where meals and lodging are paid for or furnished by the government. government.

No portion of the actual cost of the travel expenses allowed to Dept. Secretaries, UnderDept. Undersecretaries, Asst. Secretaries, & equivalent shall Asst. cover the expenses of any staff accompanying said officials, otherwise, such staff shall not be allowed any of the allowances authorized. authorized.

Documentary Requirements for Cash Advance Voucher

Travel order properly approved in accordance with Section 5 of E.O. 248, as amended; Approved itinerary of travel detailing the transportation expenses and travel expenses to be incurred as basis for determining the amount of cash advance. (COA Circular Nos. 92-389 and 9296-004). 96-

General Guidelines on Cash Advances (Official Local Travel)


Local travels shall be treated and accounted for as cash advances. Under the NGAS the account to be used is Due from Officers and Employees.

2. No cash advance shall be granted to any official or employee unless a proper accounting of the previous cash advance given to him for travel is first made or the same is first liquidated and/or settled.

3. Proper accounting shall mean the receipt by the Accountant of the prescribed liquidation documents although not yet recorded in the books of accounts nor audited by the auditor. 4. Liquidation shall mean the recording of the liquidation documents in the books of accounts by the accountant as a credit to the cash advance account after verifying the same although not yet audited by the auditor.

Liquidation of Cash Advance after the Trip

1. Cash advance for local travel shall be liquidated strictly within thirty (30) days after return to permanent official station as required under Section 16 of Executive Order No. 248 as amended otherwise, payment of salary shall be suspended until compliance therewith.

2. Documents supporting Liquidation Voucher * Certificate of travel completed * Used tickets * Certification of the head of the agency as to the absolute necessity of the expenses together with the corresponding bills and receipts, if the expenses incurred for official local travel exceed the prescribed rate of P800.00 per day.

* Certificate of appearance or copy of report duly noted by agency head or authorized representative * Where a trip is cancelled, the amount paid in advance shall be refunded in full. * When a trip exceeds the approved itinerary, the additional travel expenses due shall be paid upon submission of a written justification to the agency head.

In-house training programs of agency personnel Inwith minimal expenses for: 1. Supplies and materials; 2. Materials reproduction (hand-outs); (hand3. Rental for training venues/facilities for offices/agencies which do not have any; 4. Resource persons services; and 5. Communication and transportation expenses

1. 2.


Bills shall be attached. Rates are those allowed under existing regulations. Any significant increase in consumption is caused by operations and not by any defect in the service.

1. 2.


Telephone rentals must conform to the prevailing rates. Long distance calls for official business shall be limited to urgent and absolutely necessary business of the government. All officers placing long distance calls should certify to the official nature of the conversation including the name and address and the official designation of the party called.




Number of days of interruption in the telephone service should be recorded and deducted from the telephone service bills. Unless authorized by law or regulation, no government official is entitled to telephone service at his residence and payment of bills thereto. Telegrams, cables and wireless charges must conform by invoices/receipts and a copy of the message sent.


8. 9.

Telegrams, radiograms, cablegrams and all other wireless messages official in nature shall be used only for matters of urgent importance. The message transmitted must be brief and concise. Any personal matter contained in an official message which no bearing thereon should be charged against the sender.

10. Messages covering request or authorization for leave of absence, personal business or greetings for birthdays, anniversaries, etc., should not be charged to the government funds.

The agency head shall approve the subscription. Library materials such as technical magazines, periodicals, documents and other reading matters may be ordered provided the funds are available therefor and that these are kept in the agencys library or research center for reference

Auditing Services

Expenses incurred by any government agency or the amount due to the Commission on Audit for auditing services rendered.

Building Maintenance

Cost of repairing and maintaining buildings owned by the government Before prosecution of work by Administration or by Contract, there must be: 1. A certificate of availability of appropriations free from other obligations, issued by the Chief Accountant of the agency concerned. 2. A program and estimate of work prepared by the project engineer 3. Prosecution by contract shall follow the requirements of Contracts

Motor Vehicles Maintenance


This is the cost of repairing and maintaining motor vehicles owned by the government. General Rules and Requirements for Payment: 1. Requests for repair and/or servicing of vehicle should be approved by proper authorities; 2. If the repair involves replacement of spare parts, a Report of Waste Materials should be prepared upon submission of the wornworn-out spare parts. 3. Certificate of the Property Officer must state that the vehicle belongs to or is used by the agency, and the repair is necessary, and that the defect in the vehicle is incurred through normal wear and tear and not due to the fault or negligence of any official or employee.

Motor Vehicle Maintenance (Contd)

Additional requirements in the case of a major repair such as general reconditioning, overhauling, repainting, etc.: - Canvass from at least three (3) repair shops or public bidding if the amount involved is more than P50,000.00. - The repair shop to which the contract is awarded should be duly accredited by the Department of Trade and Industry, except in places where there is no accredited shop in the locality or where the accredited shop does not have sufficient facilities or where the cost of services of the accredited shop is relatively high or completion of repairs will suffer delays as certified by the head of the agency.

- The job contract should be very clear as to the specific job to be undertaken, the specifications of materials to be used, the period within which the job is to be completed, etc. - Warranty certificate of the repair shops shall be as clear to coverage and period. - The certificate of acceptance by the Property Officer should be clear that the work or service done is in conformity with the specifications of the contract and accomplished within the specified period of time.


An application of the employee concerned giving facts of the offense he was charged with and approved by the proper Department Head concerned and passed upon by the COA Chairman. Copies of decisions exonerating him from administrative or criminal liability. Receipts of actual and related expenses incurred. Certificate of availability funds.

Legal Expenses (Contd)

As a general rule, government officials and employees who are criminally prosecuted for acts committed in the performance of their duties may be allowed reimbursement of reasonable attorneys fees including the bail bond premiums incurred in connection with their defense, only upon their acquittal from such criminal cases.

These are the expenses incurred for or during meetings, seminars, and conferences, official entertainment of a government official or through his authorized representative, public relations, educational, athletic and cultural activities, contributions to civic or charitable institutions, membership fees in government associations and national professional organizations duly accredited by the PRC. No portion of the amounts authorized and fixed by law shall be used for salaries, wages, allowances and intelligence and confidential expenses

1. 2.


Asset cost- Purchase amount of the asset. costEstimated salvage value- estimated valueamount that the asset can be sold at the end of its estimated life. Estimated useful life- estimated period lifethat the agency can make use of the asset.


Definition Expendable commodities acquired or ordered for immediate use in connection with government operations. They include, but are not restricted to items normally consumed within one year after being put into use, or converted in the process of manufacture or construction, having a life expectancy of more than one year but which shall have decreased substantially in value after being put into use in only one year.

COA Circular 2005-002 2005Small tangible items with estimated useful life of more than one year shall be recorded as inventories upon acquisition and expense upon issuance. Ex.: Black board/white board, cutter, desk tray, miniminicalculators, pen, puncher, sharpener, stapler, water jug, water hose, weighing scale, screen projector, mouse, emergency light, extension cord, wooden chairs, desks, tables, blanket, etc. - For monitoring, control and accountability, an Inventory Custodian Slip (ICS) shall be prepared upon issuance of small tangible items covered by approved Requisition and Issue Slip (RIS)/

General Guidelines in Procurement




Agencies shall procure common-use supplies, commonmaterials and equipment from the Procurement Service (PS) which is attached to DBM. Procurement of supplies, materials and equipment shall be through competitive public bidding Appropriated funds shall be available for locally manufactured goods.

Documentary Requirements
1. 2. 3. 4. 5.

Purchase Request Purchase Order/Letter Order/Contract Original copy of the dealers/suppliers invoice Acceptance and Inspection (AIR) Result of test/analysis by proper government agency if articles are subject to test.

General Procedures in Procurement



3. 4. 5.

Procurement Planning and the Preparation of the Annual Procurement Plan (APP); Requisitioning or Preparation of Supplies Availability Inquiry (SAI) Approval of Requisition Preparation of Obligation Request (ObR) Preparation, Approval and Delivery of Purchase Order/ Letter Order/Contract

General Procedures in Procurement



Delivery, Inspection and Acceptance of the Items Payment for the Items delivered.

Preparation of Purchase Order

The PO/LO/Contract is the document evidencing a transaction for the purchase of supplies and materials. It shall indicate: - Office to which account shall be charged - Requisition Number - Name and Address of the contractor/supplier - Complete description and specifications of the supplies

- Other information and data needed to enable agency officials and all others concerned to determine: a. Nature, quality of the items purchased b. Quantity and unit price of the items c. Period of delivery d. Shipping terms e. Provisions on penalties for late or no delivery

COA Circular 96-10 96

A copy of any letter or purchase order irrespective of amount, and all supporting documents thereto shall be submitted to the Unit or Agency Auditor concerned within five (5) days from issuance The agency official responsible for accepting deliveries of procured items shall, within 24 hours from such acceptance, notify the Auditor of the time and date of the scheduled deliveries.

Section 465 of GAAM Vol. I

Report of Inspection of all consumables shall be submitted to the COA Auditor within 24 hours after delivery.

Purchase of Supplies, Materials and Equipment Spare Parts for Stock

The inventory of supplies, materials and equipment spare parts to be procured out of available funds shall in no time exceed the normal three-month requirement, subject to pertinent rules and threeregulations issued by competent authority: Provided, that heads of departments, bureaus, offices or agencies and other instrumentalities of government may increase their inventory of critical supplies and materials in anticipation of cost increases, of if necessitated by a national emergency or an impending shortage in the items concerned, specifying maximum quantities of individual items. Unless otherwise approved by the President of the Philippines, upon the joint recommendation of the Secretary concerned and the Chairman of the COA, these stocks shall not exceed one years requirement.

Acceptance or Rejection of Deliveries

Where a trend of shortage in quantity, or deficiencies/defects in quality is established, the inspector may recommend for rejection or reduction in price. price. After consideration of tolerable allowance, supplies or property tested and found to be in accordance with the required specifications shall be accepted. accepted. Supplies with deficiency of less than 10% may be accepted 10% provided that the contract price is reduced according to the deficiency noted. noted. Supplies whose quantity is short by volume, weight, actual count, shall be subject to reduction in contract price at an amount equivalent to the shortage, provided said deliveries are acceptable to the agency or unit. unit.

Basic Requirements in the Payment of Supplies and Materials


Duly approved Purchase Request Purchase Order/Letter Order/Contract Original Copy of the Dealers/Suppliers Invoice Acceptance and Inspection Report (IAR) Result of Analysis if articles are subject to test

Other Activities After Procurement

1. Property Records to be Maintained * Stock Card 2. Recording of Deliveries of Supplies or Property in the Books of Accounts * Supplies Ledger Card * Equipment Ledger Card 3. Report of Supplies and Materials Issued (RSMI)

Measure of Liability of Persons Accountable for Supplies or Property

The person in possession of or having custody or control of supplies or property is immediately accountable therefor and shall be liable for its money value in case of illegal, improper or unauthorized use or misapplication thereof, by himself or any other person for whose acts he may be responsible.

Receipts/Income Collections and Deposits System

covers the processes of acknowledging and reporting income/collections, deposits of collections with Authorized Government Depository Bank (AGDB) or through the AGDB for the account of Treasurer of the Philippines, and recording of collections and deposits in the books of accounts of the agency. agency.

Deposit of Collections
All Collecting Officers shall deposit intact all their collections, as well as collections turned over to them by sub-collectors/tellers, with AGDB daily or subnot later than the next banking day. They shall day. record all deposits made in the Cash Receipts Record. Record.

Reporting of Collections and Deposits

At the close of each business day, the Collecting officers shall accomplish the Report of Collections and Deposits (RCD) in accordance with the instructions provided in Volume II of the NGAS Manual for the RCD. All collections RCD. shall be deposited with AGDB for the account of the agency or the Treasurer of the Philippines daily or not later than the next banking day. day.

Types of Collections as to authority to use


Without authority to use. With authority to use Authority with limitations Income from sale of equipment Grants and donations intended for agency use Miscellaneous collections

Without Authority to Use

As a general rule, all revenues, regardless of amount and frequency of collection are to be remitted to the National Treasury. Such income Treasury. shall be recorded by the collecting agency in a separate book of accounts, the National Government (NG) Books. Books.

With Authority to Use

Agencies, which are authorized to use income for their operations shall record their collections in the Regular Agency Books (RA). Since said (RA). collections may be used by the agency for their operations, no remittance to the National Treasury shall be required. required.

Authority With Limitations

If the authority is subject to the limitations that any excess collection shall be remitted to the National Treasury, such as collections from seminar and convention fees, the same shall be recorded in the Regular Agency Books (RA). (RA). The expenses shall be journalized, and whatever excess shall be transferred to NG Books and remitted to National Treasury. Treasury.


Sec. 12. 2008 General Appropriations Act Sale of Non-Serviceable, Obsolete or Unnecessary Equipment. NonDepartments, bureaus, offices or agencies are hereby authorized to sell non-serviceable, obsolete, or unnecessary equipment nonincluding cars, vans and the like pursuant to the provisions of Section 79 of PD No.1445 and EO No. 309 s. 1996. The proceeds from the sale of such equipment shall be deemed automatically appropriated for the purchase of new ones, and for the repair or rehabilitation of existing vital equipment, subject to the submission of a Special Budget pursuant to Sec. 35, Chapter 5, Book VI of EO No. 292.


Provided, that the purchase of such new cars and vans shall be subject to prior authority pursuant to pertinent laws, rules and regulations; Provided, further, that the agency concerned shall submit to the DBM, the House Committee on Appropriations and the Senate Committee on Finance a report on the types of equipment sold and the utilization of the sales proceeds.

Grants and Donations

All income from grants and donations shall be receipted by national government agencies and remitted to the National Treasury, unless it is authorized by the donor/grantor that the same shall be deposited with the Authorized Government Depository Bank (AGDB). Account Income from Grants and Donations shall be used to record receipt of the grants/donations whether to be remitted to the National Treasury or deposited to AGDB.

Grants and Donations Remitted to the National Treasury

Special Allotment Receipt Order (SARO) and Notice of Cash Allocation (NCA) shall be requested by the recipient agency from the DBM before utilization of the grants and donation. The receipt of NCA shall be recorded in the RA books as credit to Subsidy Income from the National Government

Grants and Donations Deposited with AGDB

A Special Budget shall be prepared in accordance with the Memorandum of Agreement or Deed of Donation for approval of Head of the Agency or its approving body. The approved Special Budget shall be entered in the Registry of Budgeted Income and Utilization.

DepEd Order No. 19 s. 2008

Implementation of No Collection Policy in all Public Elementary and Secondary Schools Pursuant to the Constitutional mandate for the provision of free public education at the elementary and secondary levels and to meet the countrys targets in the Education for All Plan 2015 and the Millennium Development Goals (MDGs) with respect to primary school participation, there is an urgent need to remove obstacles to the enrolment of school-age children. schoolThese obstacles include the out-of-pocket costs which out-offamilies have to bear in the course of sending their children to school.

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