Administrative Code and Law of Public Officers

BOOK IV The Executive Branch 13

ADMINISTRATIVE CODE CHAPTER 1 The Departments 13
and THE LAW OF CHAPTER 2 Secretaries, Undersecretaries, and
Assistant Secretaries 14
PUBLIC OFFICERS CHAPTER 3 Department Services 14
CHAPTER 4 Bureaus 15
Text and Rules CHAPTER 5 Field Offices 15
CHAPTER 6 Powers and Duties of Heads of
E.O. No 292 and R.A. No 6713 Bureaus or Offices
CHAPTER 7 Administrative Relationships
16
17

TABLE OF CONTENTS CHAPTER 8 Supervision and Control 17

CHAPTER 9 Relationships of Government-Owned
BOOK I Sovereignty and General Administration 5 or Controlled Corporations and Regulatory
CHAPTER 1 The National Territory 5 Agencies to the Department 18
CHAPTER 2 The People 6 CHAPTER 10 Appointments and Qualifications 18
CHAPTER 3 State Immunity from Suit 6 CHAPTER 11 Administrative Issuances 18
CHAPTER 4 National Symbols and Official CHAPTER 12 Miscellaneous Receipts 18
Languages 6 CHAPTER 13 Contracts 19
CHAPTER 5 Operation and Effect of Laws 6 CHAPTER 14 Controversies Among Government
CHAPTER 6 Official Gazette 6 Offices and Corporations 20
CHAPTER 7 Regular Holidays and Nationwide TITLE I Foreign Affairs 20
Special Days 6 CHAPTER 1 General Provisions 20
CHAPTER 8 Legal Weights, Measures and Period CHAPTER 2 Department Proper 21
7 CHAPTER 3 Department Services 22
CHAPTER 9 General Principles Governing Public CHAPTER 4 Board of Foreign Service
Officers 7 Administration 22
CHAPTER 10 Official Oaths 8 CHAPTER 5 Board of Foreign Service Examiners
CHAPTER 11 Official Reports 8 22
CHAPTER 12 Public Contracts and Conveyances 8 CHAPTER 6 Attached Agencies 22
CHAPTER 7 The Foreign Service 23
BOOK II Distribution of Powers of Government 8
CHAPTER 8 Attaches and Representatives 23
CHAPTER 1 Basic Principles and Policies 8
CHAPTER 9 Personnel 23
CHAPTER 2 Legislative Power 9
CHAPTER 10 Appointments, Compensation and
CHAPTER 3 Executive Power 9
Benefits 24
CHAPTER 4 Judicial Power 10
CHAPTER 11 Promotions 24
CHAPTER 5 Constitutional Commissions 11
CHAPTER 12 Assignments and Transfers 24
CHAPTER 6 Other Bodies 11
CHAPTER 13 Passport 25
BOOK III Office of the President 11 CHAPTER 14 Miscellaneous Provisions 25
TITLE I Powers of the President 11 TITLE II Finance 25
CHAPTER 1 Power of Control 11 CHAPTER 1 General Provisions 25
CHAPTER 2 Ordinance Power 11 CHAPTER 2 Department Proper 26
CHAPTER 3 Power Over Aliens 11 CHAPTER 3 Department Services 26
CHAPTER 4 Powers of Eminent Domain, Escheat, CHAPTER 4 Bureaus 27
Land Reservation and Recovery of Ill-gotten CHAPTER 5 Regional Offices 30
Wealth 11 CHAPTER 6 Attached Agencies 30
CHAPTER 5 Power of Appointment 12 TITLE III Justice 30
CHAPTER 6 General Supervision Over Local CHAPTER 1 General Provisions 30
Governments 12
CHAPTER 2 Department Proper 31
CHAPTER 7 Other Powers 12
CHAPTER 3 Office of the Government Corporate
TITLE II Organization 12 Counsel 31
CHAPTER 8 Organization of the Office of the CHAPTER 4 National Bureau of Investigation 31
President 12
CHAPTER 5 Public Attorney's Office 32
TITLE III Functions 12
CHAPTER 6 Board of Pardons and Parole 33
CHAPTER 9 Functions of the Different Offices in
the Office of the President Proper 12 CHAPTER 7 Parole and Probation Administration
33
CHAPTER 10 Functions of the Agencies Under the
Office of the President 13 CHAPTER 8 Bureau of Corrections 34
© Compiled by Rehne Gibb Larena | JD-2 | University of San Carlos

ADMINISTRATIVE CODE AND LAW OF PUBLIC OFFICERS TEXT AND RULES
CHAPTER 9 Land Registration Authority 34 CHAPTER 11 Integrated National Police 56
CHAPTER 10 Bureau of Immigration 34 CHAPTER 12 Attached Agencies 57
CHAPTER 11 Commission on the Settlement of SUBTITLE III The National Police Commission 57
Land Problems 34 TITLE IX Health 57
CHAPTER 12 Office of the Solicitor General 34 CHAPTER 1 General Provisions 57
TITLE IV Agriculture 35 CHAPTER 2 Department Proper 57
CHAPTER 1 General Provisions 35 CHAPTER 3 Department Services 58
CHAPTER 2 Department Proper 36 CHAPTER 4 Offices and Bureaus 58
CHAPTER 3 Department Services 37 CHAPTER 5 Field Offices 60
CHAPTER 4 Bureaus and Offices 37 CHAPTER 6 Attached Agencies 61
CHAPTER 5 Regional Offices 38 TITLE X Trade and Industry 61
CHAPTER 6 Attached Agencies 40 CHAPTER 1 General Provisions 61
TITLE V Public Works and Highways 40 CHAPTER 2 Department Proper 62
CHAPTER 1 General Provisions 40 CHAPTER 3 Office of the Undersecretary for
CHAPTER 2 Department Proper 41 Domestic Trade 63
CHAPTER 3 Department Services 41 CHAPTER 4 Office of the Undersecretary for
CHAPTER 4 The Bureau 42 International Trade 63
CHAPTER 5 Regional Offices 43 CHAPTER 5 Office of the Undersecretary for
Industry and Investments 64
CHAPTER 6 Attached Agencies 44
CHAPTER 6 Office of the Undersecretary for
TITLE VI Education, Culture and Sports 44
Regional Operations 65
CHAPTER 1 General Provisions 44
TITLE XI Agrarian Reform 65
CHAPTER 3 Department Services 45
CHAPTER 4 Board of Higher Education 45
CHAPTER 5 State Colleges and Universities 45
CHAPTER 6 Bureaus and Offices 45
CHAPTER 7 Regional Offices 46
CHAPTER 5 Regional and District Offices and
CHAPTER 8 Attached Agencies 46 Attached Agencies 69
CHAPTER 9 Miscellaneous Provisions 46 TITLE XII Local Government 70
TITLE VII Labor and Employment 47 CHAPTER 1 General Provisions 70
CHAPTER 1 General Provisions 47 CHAPTER 2 Department Proper 70
CHAPTER 2 Department Proper 48 CHAPTER 3 Department Services 70
CHAPTER 3 Department Services 48 CHAPTER 4 Bureaus and Offices 71
CHAPTER 4 Bureaus 48 CHAPTER 5 Regional and Field Offices 72
CHAPTER 5 Regional Offices 50 CHAPTER 6 Leagues of Provinces, Cities and
CHAPTER 6 Attached Agencies 50 Municipalities 72
TITLE VIII National Defense 50 TITLE XIII Tourism 72
SUBTITLE I Preliminary Provisions 50 CHAPTER 1 General Provisions 72
CHAPTER 1 National Defense Policies 50 CHAPTER 2 Department Proper 73
CHAPTER 2 National Security Council 50 CHAPTER 3 Department Services 73
CHAPTER 3 National Intelligence CHAPTER 4 Bureaus and Offices 73
Coordinating Agency 51 CHAPTER 5 Foreign and Regional Offices 74
SUBTITLE II Department of National Defense 52 CHAPTER 6 Attached Agencies 74
CHAPTER 1 General Provisions 52 TITLE XIV Environment and Natural Resources 74
CHAPTER 2 Department Proper 52 CHAPTER 1 General Provisions 74
CHAPTER 3 Government Arsenal 52 CHAPTER 2 The Department Proper 76
CHAPTER 4 Office of Civil Defense 52 CHAPTER 3 The Staff Sectoral Bureaus 76
CHAPTER 5 Philippine Veterans Affairs Office CHAPTER 4 The Department Field Offices 78
53
CHAPTER 5 Attached Agencies and Corporations
CHAPTER 6 Armed Forces of the Philippines 78
53
TITLE XV Transportation and Communications 79
CHAPTER 7 General Headquarters 54
CHAPTER 8 Major Services 55
CHAPTER 9 Philippine Military Academy 56
CHAPTER 10 National Defense College of the
Philippines 56

© Compiled by RGL 2 of 162

CHAPTER 5 Regulatory Board 80 CHAPTER 7 Receipt and Disposition of Funds

CHAPTER 6 Attached Agencies 81 and Property 106
TITLE XVI Social Welfare and Development 81 CHAPTER 8 Application of Appropriated
Funds 106
CHAPTER 9 Accountability and Responsibility
for Government Funds and Property 107
CHAPTER 10 Miscellaneous Provisions 107
CHAPTER 4 Bureaus and Offices 83
SUBTITLE C Commission on Elections 107
CHAPTER 6 Provincial/City Offices 83
CHAPTER 2 The Commission Proper 108
CHAPTER 7 Municipal/District Offices 84
CHAPTER 3 The Field Offices 109
TITLE II Other Bodies 110
CHAPTER 9 Fund Drives 84
SUBTITLE A Commission on Human Rights 110
CHAPTER 10 Social Welfare Agencies and
SUBTITLE B Office of the Ombudsman 110
Services 84
SUBTITLE C The National Economic and
TITLE XVII Budget and Management 85
Development Authority 111
CHAPTER 2 NEDA Board 111
CHAPTER 3 NEDA Secretariat 112
TITLE XVIII Science and Technology 86
CHAPTER 1 General Provisions 86 BOOK VI National Government Budgeting 113
CHAPTER 2 Department Proper 87 CHAPTER 1 General Provisions 113
CHAPTER 3 Services 87 CHAPTER 2 Budget Policy and Approach 114
CHAPTER 4 Board, Councils and Institutes 87 CHAPTER 3 Budget Preparation 114
CHAPTER 5 Regional Offices 89 CHAPTER 4 Budget Authorization 116
CHAPTER 6 Attached Agencies 89 CHAPTER 5 Budget Execution 117
CHAPTER 6 Budget Accountability 119
BOOK V 90
CHAPTER 7 Expenditure of Appropriated Funds
TITLE I Constitutional Commissions 90 120
SUBTITLE A Civil Service Commission 90
BOOK VII Administrative Procedure 122
2017 Omnibus Rules on
Appointments and Other Human CHAPTER 1 General Provisions 122
Resource Actions 90 CHAPTER 2 Rules and Regulations 123
2017 Rules on Administrative Cases CHAPTER 3 Adjudication 123
in the Civil Service 90 CHAPTER 4 Administrative Appeal in Contested
CHAPTER 1 General Provisions 90 Cases 124
CHAPTER 2 Coverage of the Civil Service 91
Omnibus Rules Implementing Book V of Executive Order
CHAPTER 3 Organization and Functions of No. 292 and Other Pertinent Civil Service Laws 125
the Civil Service Commission 92
RULE I Coverage and Definition of Terms 125
CHAPTER 4 Interdepartment Relations 94
RULE II Recruitment and Examination 126
CHAPTER 5 Personnel Policies and Standards
94 RULE III Ratings and Eligibilities 127
CHAPTER 6 Right to Self-Organization 97 RULE IV Qualification Standards 127
CHAPTER 7 Discipline 97 RULE V Appointment 128
CHAPTER 8 Prohibitions 99 RULE VI Promotion 129
CHAPTER 9 Leave of Absence 100 RULE VII Other Personnel Actions 131
CHAPTER 10 Miscellaneous Provisions 100 RULE VIII Career and Personnel Development 132
SUBTITLE B The Commission on Audit 100 RULE IX Performance Evaluation 134
CHAPTER 1 General Provisions 100 RULE X Employee Suggestions and Incentive Awards
System 135
CHAPTER 2 Organization of the Commission
on Audit 101 RULE XI Employee Relations and Services 137
CHAPTER 3 Offices 101 RULE XII Complaints and Grievances 137
CHAPTER 4 Jurisdiction, Powers and RULE XIII Right to Self-Organization 138
Functions of the Commission 103 RULE XIV Discipline 138
CHAPTER 5 Decisions of the Commission 105 RULE XV Inspection and Audit 144
CHAPTER 6 Government Auditing and RULE XVI Leave of Absence 145
Accounting 106 RULE XVII Government Office Hours 149

RULE XVIII Prohibitions 150

RULE XIX Miscellaneous Provisions 150
RA No 6713 | Code of Conduct and Ethical Standards for

Public Officials and Employees 151
Rules Implementing The Code of Conduct and Ethical

Standards for Public Officials and Employees 154
RULE I Coverage 154
RULE II Interpretation 155
RULE III Reforms on Public Administrative Systems
155
RULE IV Transparency of Transactions and Access to
Information 155
RULE V Incentives and Rewards System 156
RULE VI Duties of Public Officials and Employees 157
RULE VII Public Disclosure 158
RULE VIII Review and Compliance Procedures 159
RULE IX Conflict of Interest and Divestment 160
RULE X Grounds for Administrative Disciplinary
Action 160
RULE XI Penalties 161
RULE XII Free Voluntary Service 161
RULE XIII Amendment 162
RULE XIV Effectivity 162



individual persons, whose functions are defined by law or
July 25, 1987 regulation.
EXECUTIVE ORDER NO. 292 (10) Instrumentality refers to any agency of the
National Government, not integrated within the
INSTITUTING THE "ADMINISTRATIVE CODE OF 1987"
department framework vested with special functions or
WHEREAS, the Administrative Code currently in force jurisdiction by law, endowed with some if not all
was first forged in 1917 when the relationship between corporate powers, administering special funds, and
the people and the government was defined by the enjoying operational autonomy, usually through a
colonial order then prevailing; charter. This term includes regulatory agencies, chartered
WHEREAS, efforts to achieve an integrative and overall institutions and government-owned or controlled
recodification of its provisions resulted in the corporations.
Administrative Code of 1978 which, however, was never (11) Regulatory agency refers to any agency expressly
published and later expressly repealed; vested with jurisdiction to regulate, administer or
WHEREAS, the effectiveness of the Government will adjudicate matters affecting substantial rights and
be enhanced by a new Administrative Code which interest of private persons, the principal powers of which
incorporates in a unified document the major structural, are exercised by a collective body, such as a commission,
functional and procedural principles and rules of board or council.
governance; and (12) Chartered institution refers to any agency
WHEREAS, a new Administrative Code will be of organized or operating under a special charter, and
optimum benefit to the people and Government officers vested by law with functions relating to specific
and employees as it embodies changes in administrative constitutional policies or objectives. This term includes
structures and procedures designed to serve the people; the state universities and colleges and the monetary
authority of the State.
NOW, THEREFORE, I, CORAZON C. AQUINO, President
of the Philippines, by virtue of the powers vested in me by (13) Government-owned or controlled corporation
the Constitution, do hereby promulgate the refers to any agency organized as a stock or non-stock
Administrative Code of 1987, as follows: corporation, vested with functions relating to public
needs whether governmental or proprietary in nature,
Introductory Provisions and owned by the Government directly or through its
SECTION 1. Title. — This Act shall be known as the instrumentalities either wholly, or, where applicable as in
"Administrative Code of 1987." the case of stock corporations, to the extent of at least
fifty-one (51) per cent of its capital stock: Provided, That
SECTION 2. General Terms Defined. — Unless the government-owned or controlled corporations may be
specific words of the text, or the context as a whole, or a further categorized by the Department of the Budget,
particular statute, shall require a different meaning: the Civil Service Commission, and the Commission on
(1) Government of the Republic of the Philippines Audit for purposes of the exercise and discharge of their
refers to the corporate governmental entity through respective powers, functions and responsibilities with
which the functions of government are exercised respect to such corporations.
throughout the Philippines, including, save as the (14) "Officer" as distinguished from "clerk" or
contrary appears from the context, the various arms "employee", refers to a person whose duties, not being of
through which political authority is made effective in the a clerical or manual nature, involves the exercise of
Philippines, whether pertaining to the autonomous discretion in the performance of the functions of the
regions, the provincial, city, municipal or barangay government. When used with reference to a person
subdivisions or other forms of local government. having authority to do a particular act or perform a
(2) National Government refers to the entire particular function in the exercise of governmental
machinery of the central government, as distinguished power, "officer" includes any government employee,
from the different forms of local governments. agent or body having authority to do the act or exercise
that function.
(3) Local Government refers to the political
subdivisions established by or in accordance with the (15) "Employee" when used with reference to a person
Constitution. in the public service, includes any person in the service of
the government or any of its agencies, divisions,
(4) Agency of the Government refers to any of the
subdivisions or instrumentalities.
various units of the Government, including a department,
bureau, office, instrumentality, or government-owned or
controlled corporation, or a local government or a distinct
unit therein. BOOK I Sovereignty and General
(5) National Agency refers to a unit of the National Administration
Government.
(6) Local Agency refers to a local government or a CHAPTER 1 The National Territory
distinct unit therein.
SECTION 3. What Comprises National Territory. —
(7) Department refers to an executive department The national territory comprises the Philippine
created by law. For purposes of Book IV, this shall include archipelago, with all the islands and waters embraced
any instrumentality, as herein defined, having or assigned therein, and all other territories over which the
the rank of a department, regardless of its name or Philippines has sovereignty or jurisdiction, consisting of
designation. its terrestrial, fluvial, and aerial domains, including its
(8) Bureau refers to any principal subdivision or unit of territorial sea, the seabed, the subsoil, the insular shelves,
any department. For purposes of Book IV, this shall and other submarine areas. The waters around, between,
include any principal subdivision or unit of any and connecting the islands of the archipelago, regardless
instrumentality given or assigned the rank of a bureau, of their breadth and dimensions, form part of the internal
regardless of actual name or designation, as in the case of waters of the Philippines.
department-wide regional offices. SECTION 4. Territorial Subdivision of the Philippines.
(9) Office refers, within the framework of — The territorial and political subdivisions of the
governmental organization, to any major functional unit Philippines are the autonomous regions, provinces,
of a department or bureau including regional offices. It subprovinces, cities, municipalities and barangays.
may also refer to any position held or occupied by


Philippines," or its equivalent in the national language.
CHAPTER 2 The People For the purpose of placing the Great Seal, the color of the
arms shall not be deemed essential.
SECTION 5. Who are Citizens. — The following are the
citizens of the Philippines: SECTION 15. Use and Custody of Great Seal. — The
Great Seal shall be affixed to or placed upon all
(1) Those who are citizens of the Philippines at the time commissions signed by the President and upon such
of the adoption of the Constitution; other official documents and papers of the Republic of
(2) Those whose fathers or mothers are citizens of the the Philippines as may be provided by law, or as may be
Philippines; required by custom and usage. The President shall have
custody of the Great Seal.
(3) Those born before January 17, 1973, of Filipino
mothers, who elect Philippine citizenship upon reaching SECTION 16. Arms, Seals and Banners of Government
the age of majority; Offices. — The various offices of government may adopt
appropriate coat-of-arms, seals and banners.
(4) Those who are naturalized in accordance with law.
SECTION 17. Official Languages. — Until otherwise
SECTION 6. Effect of Marriage. — Citizens of the
provided by law, Pilipino and English shall be the official
Philippines who marry aliens shall retain their citizenship,
languages.
unless by their act or omission they are deemed, under
the law, to have renounced it.
SECTION 7. Natural-born Citizen. — Natural-born CHAPTER 5 Operation and Effect of Laws
citizens are those who are citizens of the Philippines from SECTION 18. When Laws Take Effect. — Laws shall
birth without having to perform any act to acquire or take effect after fifteen (15) days following the completion
perfect their Philippine citizenship. Those who elect of their publication in the Official Gazette or in a
Philippine citizenship in accordance with the Constitution newspaper of general circulation, unless it is otherwise
shall be deemed natural-born citizens. provided.
SECTION 8. Loss or Reacquisition of Citizenship. — SECTION 19. Prospectivity. — Laws shall have
Philippine citizenship may be lost or reacquired in the prospective effect unless the contrary is expressly
manner provided by law. provided.
SECTION 9. Dual Allegiance. — Dual allegiance is SECTION 20. Interpretation of Laws and
inimical to the national interest and shall be dealt with by Administrative Issuances. — In the interpretation of a
law. law or administrative issuance promulgated in all the
official languages, the English text shall control, unless
otherwise specifically provided. In case of ambiguity,
CHAPTER 3 State Immunity from Suit
omission or mistake, the other texts may be consulted.
SECTION 10. Non-suability of the State. — No suit
SECTION 21. No Implied Revival of Repealed Law.—
shall lie against the State except with its consent as
When a law which expressly repeals a prior law is itself
provided by law.
repealed, the law first repealed shall not be thereby
SECTION 11. The State's Responsibility for Acts of revived unless expressly so provided.
Agents. — (1) The State shall be legally bound and
SECTION 22. Revival of Law Impliedly Repealed. —
responsible only through the acts performed in
When a law which impliedly repeals a prior law is itself
accordance with the Constitution and the laws by its duly
repealed, the prior law shall thereby be revived, unless the
authorized representatives.
repealing law provides otherwise.
(2) The State shall not be bound by the mistakes or
SECTION 23. Ignorance of the Law. — Ignorance of
errors of its officers or agents in the exercise of their
the law excuses no one from compliance therewith.
functions.
CHAPTER 6 Official Gazette

CHAPTER 4 National Symbols and Official Languages
SECTION 24. Contents. — There shall be published in
SECTION 12. National Flag. — (1) The flag of the
the Official Gazette all legislative acts and resolutions of a
Philippines shall be red, white and blue, with a sun and
public nature; all executive and administrative issuances
three stars, as consecrated and honored by the people
of general application; decisions or abstracts of decisions
and recognized by law.
of the Supreme Court and the Court of Appeals, or other
(2) The custody, ceremonial use, occasion and manner courts of similar rank, as may be deemed by the said
of display, and the proper care and disposition of the flag courts of sufficient importance to be so published; such
shall be governed by appropriate rules and regulations. documents or classes of documents as may be required
SECTION 13. National Anthem. — Until otherwise so to be published by law; and such documents or classes
provided by law, the musical arrangement and of documents as the President shall determine from time
composition of Julian Felipe is adopted as the national to time to have general application or which he may
anthem. It shall be sung or played upon the opening or authorize so to be published.
start of all state celebrations or gatherings and on such The publication of any law, resolution or other official
other occasions as may be prescribed by appropriate documents in the Official Gazette shall be prima facie
rules and regulations. evidence of its authority.
SECTION 14. Arms and Great Seal of the Republic of SECTION 25. Editing and Publications. — The Official
the Philippines. — (1) The Arms shall have paleways of Gazette shall be edited in the Office of the President and
two (2) pieces, azure and gules; a chief argent studded published weekly in Pilipino or in the English language. It
with three mullets equidistant from each other; and, in shall be sold and distributed by the National Printing
point of honor, ovoid argent over all the sun rayonnant Office which shall promptly mail copies thereof to
with eight minor and lesser rays. Beneath shall be a scroll subscribers free of postage.
with the words "Republic of the Philippines," or its
equivalent in the national language, inscribed thereon.
CHAPTER 7 Regular Holidays and Nationwide Special Days
(2) The Great Seal shall be circular in form, with the
arms as described in the preceding paragraph, but SECTION 26. Regular Holidays and Nationwide
without the scroll and the inscription thereon, and Special Days. — (1) (1) Unless otherwise modified by law,
surrounding the whole, a double marginal circle within order or proclamation, the following regular holidays and
which shall appear the words "Republic of the special days shall be observed in the country:

A. Regular Holidays SECTION 30. Mandatory Nation-wide Use. — The

metric system shall be fully adopted in all agricultural,
New Year's Day January 1 commercial, industrial, scientific and other sectors.
Persons or entities allowed under existing laws to use the
Maundy Thursday Movable Date English system or other standards and weights are given
until the date to be fixed by the Metric System Board to
Good Friday Movable Date adopt the metric system.
Eidul Fitr Movable Date SECTION 31. Legal Periods. — "Year" shall be
understood to be twelve calendar months; "month" of
Eidul Adha Movable Date (as added by thirty days, unless it refers to a specific calendar month in
Republic Act No. 9849, which case it shall be computed according to the number
[December 11, 2009]) of days the specific month contains; "day," to a day of
twenty-four hours; and "night," from sunset to sunrise.
Araw ng Kagitingan Monday nearest April 9
(Bataan and
Corregidor Day) CHAPTER 9 General Principles Governing Public Officers
Labor Day Monday nearest May 1 SECTION 32. Nature of Public Office. — Public office is
a public trust. Public officers and employees must at all
Independence Day Monday nearest June 12 times be accountable to the people, serve them with the
utmost responsibility, integrity, loyalty and efficiency, act
National Heroes Day Last Monday of August with patriotism and justice, and lead modest lives.
Bonifacio Day Monday nearest November 30 SECTION 33. Policy on Change of Citizenship. —
Public officers and employees owe the State and the
Christmas Day December 25 Constitution allegiance at all times, and any public officer
or employee who seeks to change his citizenship or
Rizal Day Monday nearest December 30 acquire the status of an immigrant of another country
during his tenure shall be dealt with by law.
B. Nationwide Special Holidays
SECTION 34. Declaration of Assets, Liabilities and
Founding Anniversary July 27 (as added by Republic Net Worth. — A public officer or employee shall, upon
of Iglesia ni Cristo Act No. 9645, [June 12, 2009]) assumption of office and as often thereafter as may be
required by law, submit a declaration under oath of his
Ninoy Aquino Day Monday nearest August 21 assets, liabilities, and net worth.
All Saints Day November 1 SECTION 35. Ethics in Government. — All public
officers and employees shall be bound by a Code of
Last Day of the Year December 31 Ethics to be promulgated by the Civil Service
Commission.
C. In the event the holiday falls on a Wednesday, the
holiday will be observed on the Monday of that week. If SECTION 36. Inhibition Against Purchase of Property
the holiday falls on a Sunday, the holiday will be at Tax Sale. — No officer or employee of the government
observed on the Monday that follows. shall purchase directly or indirectly any property sold by
the government for the non-payment of any tax, fee or
Provided, That for movable holidays, the President other public charge. Any such purchase by an officer or
shall issue a proclamation, at least six months prior to the employee shall be void.
holiday concerned, the specific date that shall be
declared as a non-working day: SECTION 37. Powers Incidental to Taking of
Testimony. — When authority to take testimony or
Provided, however, That Eidul Adha shall be receive evidence is conferred upon any administrative
celebrated as a regional holiday in the Autonomous officer or any non-judicial person, committee, or other
Region in Muslim Mindanao. body, such authority shall include the power to
(as amended by Republic Act No. 9177, [November administer oaths, summon witnesses, and require the
13, 2002], and Republic Act No. 9492, [July 24, 2007]) production of documents by a subpoena duces tecum.
(2) The terms "legal or regular holiday" and "special SECTION 38. Liability of Superior Officers. — (1) A
holiday", as used in laws, orders, rules and regulations or public officer shall not be civilly liable for acts done in the
other issuances shall be referred to as "regular holiday" performance of his official duties, unless there is a clear
and "special day", respectively. showing of bad faith, malice or gross negligence.
SECTION 27. Local Special Days. — The President may (2) Any public officer who, without just cause, neglects
proclaim any local special day for a particular date, group to perform a duty within a period fixed by law or
or place. regulation, or within a reasonable period if none is fixed,
shall be liable for damages to the private party concerned
SECTION 28. Pretermission of Holiday. — Where the without prejudice to such other liability as may be
day, or the last day, for doing any act required or prescribed by law.
permitted by law falls on a regular holiday or special day,
the act may be done on the next succeeding business (3) A head of a department or a superior officer shall
day. not be civilly liable for the wrongful acts, omissions of
duty, negligence, or misfeasance of his subordinates,
unless he has actually authorized by written order the
CHAPTER 8 Legal Weights, Measures and Period specific act or misconduct complained of.
SECTION 29. Official Use of Metric System. — The SECTION 39. Liability of Subordinate Officers. —No
metric system of weights and measures shall be used in subordinate officer or employee shall be civilly liable for
the Philippines for all products, articles, goods, acts done by him in good faith in the performance of his
commodities, materials, merchandise, utilities, services, as duties. However, he shall be liable for willful or negligent
well as for commercial transactions like contracts, acts done by him which are contrary to law, morals, public
agreements, deeds and other legal instruments publicly policy and good customs even if he acted under orders or
and officially attested, and for all official documents. Only instructions of his superiors.
weights and measures of the metric system shall be
officially sealed and licensed.


conveyance shall be executed in behalf of the
CHAPTER 10 Official Oaths government by the following:
SECTION 40. Oaths of Office for Public Officers and (1) For property belonging to and titled in the name of
Employees. — All public officers and employees of the the Republic of the Philippines, by the President, unless
government including every member of the armed forces the authority therefor is expressly vested by law in
shall, before entering upon the discharge of his duties, another officer.
take an oath or affirmation to uphold and defend the (2) For property belonging to the Republic of the
Constitution; that he will bear true faith and allegiance to Philippines but titled in the name of any political
it; obey the laws, legal orders and decrees promulgated subdivision or of any corporate agency or instrumentality,
by the duly constituted authorities; will well and faithfully by the executive head of the agency or instrumentality.
discharge to the best of his ability the duties of the office
or position upon which he is about to enter; and that he SECTION 49. Authority to Convey Other Property. —
voluntarily assumes the obligation imposed by his oath of Whenever property other than real is authorized to be
office, without mental reservation or purpose of evasion. conveyed, the contract or deed shall be executed by the
Copies of the oath shall be deposited with the Civil head of the agency with the approval of the department
Service Commission and the National Archives. head. Where the operations of the agency regularly
involve the sale or other disposition of personal property,
SECTION 41. Officers Authorized to Administer Oath. the deed shall be executed by any officer or employee
— The following officers have general authority to expressly authorized for that purpose.
administer oaths: President; Vice President, Members and
Secretaries of both Houses of Congress; Members of the SECTION 50. Conveyance of National Government
Judiciary; Secretaries of Departments; provincial Property to Local Governments. — When the real
governors and lieutenant-governors; city mayors; property belonging to the National Government is
municipal mayors; bureau directors; regional directors; needed for school purposes, or other official use by any
clerks of court; registrars of deeds; other civilian officers in local government, the President shall authorize its
the public service of the government of the Philippines transfer, and the department head or other authority
whose appointments are vested in the President and are concerned shall execute in favor of the local government
subject to confirmation by the Commission on the necessary deed of conveyance by way of gift, sale,
Appointments; all other constitutional officers; PAO exchange, or otherwise, and upon such terms as shall be
lawyers in connection with the performance of duty; and for the interest of the parties concerned. Nothing herein
notaries public. (as amended by Republic Act No. 6733, provided shall be deemed to authorize the conveyance of
[July 25, 1989] and Republic Act No. 9406, [March 23, unreserved public land, friar land or any real property
2007]) held by the Government in trust or for a special purpose
defined by law.
SECTION 42. Duty to Administer Oath. — Officers
authorized to administer oaths, with the exception of SECTION 51. Execution of Contracts. — (1) Contracts in
notaries public, municipal judges and clerks of court, are behalf of the Republic of the Philippines shall be
not obliged to administer oaths or execute certificates executed by the President unless authority therefor is
save in matters of official business or in relation to their expressly vested by law or by him in any other public
functions as such; and with the exception of notaries officer.
public, the officer performing the service in those matters (2) Contracts in behalf of the political subdivisions and
shall charge no fee, unless specifically authorized by law. corporate agencies or instrumentalities shall be approved
(as amended by Republic Act No. 9406, [March 23, by their respective governing boards or councils and
2007]) executed by their respective executive heads.
CHAPTER 11 Official Reports

SECTION 43. Annual Reports. — The heads of the
BOOK II Distribution of Powers of
several branches, subdivisions, departments and Government
agencies or instrumentalities of the Government shall
prepare and submit annual reports to the President on or
before the first day of July of each year. CHAPTER 1 Basic Principles and Policies
SECTION 44. Contents of Reports. — The contents of SECTION 1. Guiding Principles and Policies in
the annual report shall be prescribed by law or, in the Government. — Government power shall be exercised in
absence thereof, by executive order. accordance with the following basic principles and
policies:
SECTION 45. Special Reports. — Each chief of Bureau
or other officer of the government shall make such (1) The Philippines is a democratic and republican
special reports concerning the work of his Bureau or State. Sovereignty resides in the people and all
Office as may from time to time be required of him by government authority emanates from them.
the President of the Philippines or Head of Department. (2) The State values the dignity of every human person
SECTION 46. Deposit with Archives. — Official copies and guarantees full respect for human rights.
of annual reports shall be deposited with the National (3) Civilian authority is, at all times, supreme over the
Archives and shall be open to public inspection. military.
(4) The State shall ensure the autonomy of local
CHAPTER 12 Public Contracts and Conveyances governments.
SECTION 47. Contracts and Conveyances. — (5) The territorial and political subdivisions of the
Contracts or conveyances may be executed for and in Republic of the Philippines are the provinces, cities,
behalf of the Government or of any of its branches, municipalities, and barangays. There shall be
subdivisions, agencies, or instrumentalities, including autonomous regions, in accordance with the
government-owned or controlled corporations, whenever Constitution, in Muslim Mindanao and the Cordilleras as
demanded by the exigency or exigencies of the service may be provided by law.
and as long as the same are not prohibited by law. (6) The separation of Church and State shall be
SECTION 48. Official Authorized to Convey Real inviolable.
Property. — Whenever real property of the Government is (7) The right of the people and their organizations to
authorized by law to be conveyed, the deed of effective and reasonable participation at all levels of
social, political, and economic decision-making shall not



be abridged. The State shall, by law, facilitate the pertaining to their departments. Written questions shall
establishment of adequate consultation mechanisms. be submitted to the President of the Senate or the
(8) The powers expressly vested in any branch of the Speaker of the House of Representatives at least three (3)
Government shall not be exercised by, nor delegated to, days before their scheduled appearance. Interpellations
any other branch of the Government, except to the extent shall not be limited to written questions, but may cover
authorized by the Constitution. matters related thereto. When the security of the State or
the public interest so requires and the President so states
in writing, the appearance shall be conducted in
CHAPTER 2 Legislative Power executive session.
SECTION 2. Seat of Legislative Power. — The SECTION 8. Initiative and Referendum. — The
legislative power shall be vested in the Congress of the Congress shall, as early as possible, provide for a system of
Philippines which shall consist of a Senate and a House of initiative and referendum and the exceptions therefrom,
Representatives, except to the extent reserved to the whereby the people can directly propose and enact laws
people by the Constitutional provision on initiative and or approve or reject any act or law or part thereof passed
referendum. by the Congress or local legislative body after the
registration of a petition therefor signed by at least ten
SECTION 3. Inhibitions Against Members of
(10) per centum of the total number of registered voters,
Congress. — (1) No Senator or Member of the House of
of which every legislative district must be represented by
Representatives may hold any other office or
at least three (3) per centum of the registered voters
employment in the Government, or any subdivision,
thereof.
agency, or instrumentality thereof, including
government-owned or controlled corporations or their SECTION 9. Power to Propose Constitutional
subsidiaries, during his term without forfeiting his seat. Amendments. — (1) Any amendment to, or revision of the
Neither shall he be appointed to any office which may Constitution may be proposed by: (a) the Congress, upon
have been created or the emoluments thereof increased a vote of three-fourths (3/4) of all its Members; or (b) a
during the term for which he was elected. constitutional convention. The Congress may, by a vote of
two-thirds (2/3) of all its Members, call a constitutional
(2) No Senator or Member of the House of
convention, or by a majority vote of all its Members,
Representatives may personally appear as counsel before
submit to the electorate the question of calling such a
any court of justice or before the Electoral Tribunals, or
convention.
quasi-judicial and other administrative bodies. Neither
shall he, directly or indirectly, be interested financially in (2) Amendments to the Constitution may likewise be
any contract with, or in any franchise or special privilege directly proposed by the people through initiative upon a
granted by the Government, or any subdivision, agency or petition of at least twelve (12) per centum of the total
instrumentality thereof including any number of registered voters, of which every legislative
government-owned or controlled corporation, or its district must be represented by at least three (3) per
subsidiary, during his term of office. He shall not centum of the registered voters therein. No amendments
intervene in any matter before any office of the under this paragraph shall be authorized within five years
Government for his pecuniary benefit or where he may following the ratification of the 1987 Constitution nor
be called upon to act on account of his office. oftener than once every five years thereafter. The
Congress shall provide for the implementation of the
SECTION 4. Electoral Tribunal. — The Senate and the
exercise of this right.
House of Representatives shall each have an Electoral
Tribunal which shall be the sole judge of all contests SECTION 10. Validity of Constitutional Amendments.
relating to the election, returns, and qualifications of their — (1) Any amendment to or revision of the Constitution
respective Members. Each Electoral Tribunal shall be proposed by Congress or a constitutional convention shall
composed of nine (9) Members, three (3) of whom shall be valid when ratified by a majority of the votes cast in a
be Justices of the Supreme Court to be designated by the plebiscite which shall be held not earlier than sixty days
Chief Justice, and the remaining six (6) shall be Members (60) nor later than ninety days (90) after the approval of
of the Senate or the House of Representatives, as the case such amendment or revision.
may be, who shall be chosen on the basis of proportional (2) Any amendment to or revision of the Constitution
representation from the political parties and the parties directly proposed by the people through initiative shall be
or organizations registered under the party-list system valid when ratified by a majority of the votes cast in a
represented therein. The senior Justice in the Electoral plebiscite which shall be held not earlier than sixty days
Tribunal shall be its Chairman. (60) nor later than ninety days (90) after the certification
SECTION 5. Commission on Appointments. — There by the Commission on Elections of the sufficiency of the
shall be a Commission on Appointments consisting of the petition.
President of the Senate, as ex officio Chairman, and
twelve (12) Senators and twelve (12) Members of the
House of Representatives, elected by each House on the CHAPTER 3 Executive Power
basis of proportional representation from the political SECTION 11. Exercise of Executive Power. — The
parties and parties or organizations registered under the Executive power shall be vested in the President.
party-list system represented therein. The Chairman of SECTION 12. The Vice-President. — There shall be a
the Commission shall not vote, except in case of a tie. The Vice-President who shall have the same qualifications
Commission shall act on all appointments submitted to it and term of office and be elected with and in the same
within thirty (30) session days of the Congress from their manner as the President. He may be removed from office
submission. The Commission shall rule by a majority vote in the same manner as the President.
of all its members.
The Vice-President may be appointed as a Member of
SECTION 6. Legislative Investigation. — The Senate or the Cabinet. Such appointment requires no confirmation.
the House of Representatives or any of its respective
committees may conduct inquiries in aid of legislation in SECTION 13. Vacancy in Office of the President. — In
accordance with its duly published rules of procedure. case of death, permanent disability, removal from office,
The rights of persons appearing in or affected by such or resignation of the President, the Vice-President shall
inquiries shall be respected. become the President to serve the unexpired term. In
case of death, permanent disability, removal from office,
SECTION 7. Appearance of Heads of Departments. — or resignation of both the President and Vice-President,
The heads of departments may upon their own initiative, the President of the Senate or, in case of his inability, the
with the consent of the President, or upon the request of Speaker of the House of Representatives, shall then act as
either House, as the rules of each House shall provide,
appear before and be heard by such House on any matter



President until the President or Vice-President shall have (b) All cases involving the legality of any tax, impost,
been elected and qualified. assessment, or toll, or any penalty imposed in relation
The Congress shall, by law, provide who shall serve as thereto.
President in case of death, permanent disability, or (c) All cases in which the jurisdiction of any lower court
resignation of the Acting President. He shall serve until is in issue.
the President or Vice-President shall have been elected (d) All criminal cases in which the penalty imposed is
and qualified, and be subject to the same restrictions of reclusion perpetua or higher.
powers and disqualifications as the Acting President.
(e) All cases in which only an error or question of law is
SECTION 14. Vacancy in Office of the Vice-President. involved.
— Whenever there is a vacancy in the Office of the
Vice-President during the term for which he was elected, (3) Assign temporarily judges of lower courts to other
the President shall nominate a Vice-President from stations as public interest may require. Such temporary
among the Members of the Senate and the House of assignment shall not exceed six (6) months without the
Representatives who shall assume office upon consent of the judge concerned.
confirmation by a majority vote of all the Members of (4) Order a change of venue or place of trial to avoid a
both Houses of Congress, voting separately. miscarriage of justice.
SECTION 15. Inhibitions Against Executive Officials. (5) Promulgate rules concerning the protection and
— The President, Vice-President, the Members of the enforcement of constitutional rights, pleading, practice,
Cabinet, and their deputies or assistants shall not, unless and procedure in all courts, the admission to the practice
otherwise provided in this Constitution, hold any other of law, the Integrated Bar, and legal assistance to the
office or employment during their tenure. They shall not, underprivileged. Such rules shall provide a simplified and
during said tenure, directly or indirectly practice any inexpensive procedure for the speedy disposition of cases,
other profession, participate in any business, or be shall be uniform for all courts of the same grade; and shall
financially interested in any contract with, or in any not diminish, increase, or modify substantive rights. Rules
franchise, or special privilege granted by the Government of procedure of special courts and quasi-judicial bodies
or any subdivision, agency, or instrumentality thereof, shall remain effective unless disapproved by the Supreme
including government-owned or controlled corporations Court.
or their subsidiaries. They shall strictly avoid conflicts of
interest in the conduct of their office. (6) Appoint all officials and employees of the Judiciary
in accordance with the Civil Service Law.
The spouse and relatives by consanguinity or affinity
within the fourth civil degree of the President shall not SECTION 19. Apportionment of Jurisdiction. —
during his tenure be appointed as Members of the Congress shall define, prescribe and apportion the
Constitutional Commissions, or the Office of the jurisdiction of the various courts but may not deprive the
Ombudsman, or as Secretaries, Undersecretaries, Supreme Court of its jurisdiction enumerated in the
chairmen or heads of bureaus or offices, including immediately preceding section. Neither shall a law be
government-owned or controlled corporations and their passed increasing its appellate jurisdiction as therein
subsidiaries. specified without its advice and concurrence.
No law shall be passed reorganizing the Judiciary
when it undermines the security of tenure of its
CHAPTER 4 Judicial Power
Members.
SECTION 16. Judicial Power. — The judicial power shall
SECTION 20. Administrative Supervision.— The
be vested in one (1) Supreme Court, and in such lower
Supreme Court shall have administrative supervision over
courts as may be established by law. Such lower courts
all courts and the personnel thereof.
include the Court of Appeals, Sandiganbayan, Court of
Tax Appeals, Regional Trial Courts, Shari'a District Courts, SECTION 21. Judicial and Bar Council. — (1) A Judicial
Metropolitan Trial Courts, Municipal Trial Courts and and Bar Council is hereby created under the supervision
Municipal Circuit Trial Courts, and Shari'a Circuit Courts of the Supreme Court composed of the Chief Justice as ex
and they shall continue to exercise their respective officio Chairman, the Secretary of Justice, and a
jurisdictions until otherwise provided by law. representative of the Congress as ex officio Member, a
representative of the Integrated Bar, a professor of law, a
Judicial power includes the duty of the courts of
retired Member of the Supreme Court, and a
justice to settle actual controversies involving rights
representative of the private sector.
which are legally demandable and enforceable, and, in
cases prescribed by law, to determine whether or not (2) The regular members of the Council shall be
there has been a grave abuse of discretion amounting to appointed by the President for a term of four (4) years
lack or excess of jurisdiction on the part of any branch or with the consent of the Commission on Appointments. Of
instrumentality of the Government. the Members first appointed, the representative of the
Integrated Bar shall serve for four (4) years, the professor
SECTION 17. Composition of the Supreme Court. —
of law for three (3) years, the retired Justice for two (2)
The Supreme Court shall be composed of a Chief Justice
years, and the representative of the private sector for one
and fourteen Associate Justices. It may sit en banc or in
(1) year.
its discretion, in divisions of three, five or seven Members.
(3) The Clerk of the Supreme Court shall be the
SECTION 18. Jurisdiction and Powers of Supreme
Secretary ex officio of the Council and shall keep a record
Court. — The Supreme Court shall have the following
of its proceedings.
powers:
(4) The regular Members of the Council shall receive
(1) Exercise original jurisdiction over cases affecting
such emoluments as may be determined by the Supreme
ambassadors, other public ministers and consuls, and
Court. The Supreme Court shall provide in its annual
over petitions for certiorari, prohibition,mandamus, quo
budget the appropriations for the Council.
warranto, and habeas corpus.
(5) The Council shall have the principal function of
(2) Review, revise, reverse, modify, or affirm on appeal
recommending appointees to the Judiciary. It may
or certiorari as the law or the Rules of Court may provide,
exercise such other functions and duties as the Supreme
final judgments and orders of lower courts in:
Court may assign to it.
(a) All cases in which the constitutionality or validity of
SECTION 22. Appointment of Members of Judiciary.
any treaty, international or executive agreement, law,
— The Members of the Supreme Court and judges of
presidential decree, proclamation, order, instruction,
lower courts shall be appointed by the President from a
ordinance, or regulation is in question.
list of at least three (3) nominees prepared by the Judicial



and Bar Council for every vacancy. Such appointments
need no confirmation. CHAPTER 2 Ordinance Power
For the lower courts, the President shall issue the SECTION 2. Executive Orders. — Acts of the President
appointments within ninety (90) days from the providing for rules of a general or permanent character in
submission of the list. implementation or execution of constitutional or
SECTION 23. Prohibition Against Performing statutory powers shall be promulgated in executive
Quasi-Judicial or Administrative Functions. — The orders.
Members of the Supreme Court and of other courts SECTION 3. Administrative Orders. — Acts of the
established by law shall not be designated to any agency President which relate to particular aspects of
performing quasi-judicial or administrative functions. governmental operations in pursuance of his duties as
administrative head shall be promulgated in
CHAPTER 5 Constitutional Commissions administrative orders.
SECTION 24. Constitutional Commissions. — The SECTION 4. Proclamations. — Acts of the President
Constitutional Commissions, which shall be independent, fixing a date or declaring a status or condition of public
are the Civil Service Commission, the Commission on moment or interest, upon the existence of which the
Elections, and the Commission on Audit. operation of a specific law or regulation is made to
depend, shall be promulgated in proclamations which
SECTION 25. Inhibitions Against Constitutional shall have the force of an executive order.
Commissioners. — No member of a Constitutional
Commission shall, during his tenure, hold any other office SECTION 5. Memorandum Orders. — Acts of the
or employment. Neither shall he engage in the practice of President on matters of administrative detail or of
any profession or in the active management or control of subordinate or temporary interest which only concern a
any business which in anyway may be affected by the particular officer or office of the Government shall be
functions of his office, nor shall he be financially embodied in memorandum orders.
interested, directly or indirectly, in any contract with, or in SECTION 6. Memorandum Circulars. — Acts of the
any franchise or privilege granted by the Government, President on matters relating to internal administration,
any of its subdivisions, agencies, or instrumentalities, which the President desires to bring to the attention of all
including government-owned or controlled corporations or some of the departments, agencies, bureaus or offices
or their subsidiaries. of the Government, for information or compliance, shall
SECTION 26. Fiscal Autonomy. — The Constitutional be embodied in memorandum circulars.
Commissions shall enjoy fiscal autonomy. The approved SECTION 7. General or Special Orders. — Acts and
annual appropriations shall be automatically and commands of the President in his capacity as
regularly released. Commander-in-Chief of the Armed Forces of the
SECTION 27. Promulgation of Rules. — Each Philippines shall be issued as general or special orders.
Commission en banc may promulgate its own rules
concerning pleadings and practice before it or before any CHAPTER 3 Power Over Aliens
of its offices. Such rules however shall not diminish,
increase, or modify substantive rights. SECTION 8. Power to Deport. — The President shall
have the power to deport aliens subject to the
SECTION 28. Decisions by the Constitutional requirements of due process.
Commissions.— Each Commission shall decide, by a
majority vote of all its Members, any case or matter SECTION 9. Power to Change Non-Immigrant Status
brought before it within sixty (60) days from the date of of Aliens. — The President, subject to the provisions of
its submission for decision or resolution. A case or matter law, shall have the power to change the status of
is deemed submitted for decision or resolution upon the non-immigrants by allowing them to acquire permanent
filing of the last pleading, brief, or memorandum required residence status without necessity of visa.
by the rules of the Commission or by the Commission SECTION 10. Power to Countermand Decisions of the
itself. Unless otherwise provided by the Constitution or by Board of Commissioners of the Bureau of Immigration.
law, any decision, order, or ruling of each Commission — The decision of the Board of Commissioners which has
may be brought to the Supreme Court on certiorari by jurisdiction over all deportation cases shall become final
the aggrieved party within thirty (30) days from receipt of and executory after thirty (30) days from promulgation,
a copy thereof. unless within such period the President shall order the
contrary.
CHAPTER 6 Other Bodies SECTION 11. Power over Aliens under the General
Principles of International Law. — The President shall
SECTION 29. Other Bodies. — There shall be in exercise with respect to aliens in the Philippines such
accordance with the Constitution, an Office of the powers as are recognized by the generally accepted
Ombudsman, a Commission on Human Rights, an principles of international law.
independent central monetary authority, and a national
police commission. Likewise, as provided in the
Constitution, Congress may establish an independent CHAPTER 4 Powers of Eminent Domain, Escheat, Land
economic and planning agency. Reservation and Recovery of Ill-gotten Wealth
SECTION 12. Power of Eminent Domain. — The
President shall determine when it is necessary or
BOOK III Office of the President advantageous to exercise the power of eminent domain
in behalf of the National Government, and direct the
Solicitor General, whenever he deems the action
TITLE I Powers of the President advisable, to institute expropriation proceedings in the
proper court.
CHAPTER 1 Power of Control SECTION 13. Power to Direct Escheat or Reversion
Proceedings. — The President shall direct the Solicitor
SECTION 1. Power of Control. — The President shall General to institute escheat or reversion proceedings over
have control of all the executive departments, bureaus, all lands transferred or assigned to persons disqualified
and offices. He shall ensure that the laws be faithfully under the Constitution to acquire land.
executed.


SECTION 14. Power to Reserve Lands of the Public
and Private Domain of the Government. — (1) The
President shall have the power to reserve for settlement TITLE II Organization
or public use, and for specific public purposes, any of the
lands of the public domain, the use of which is not CHAPTER 8 Organization of the Office of the President
otherwise directed by law. The reserved land shall
thereafter remain subject to the specific public purpose SECTION 21. Organization. — The Office of the
indicated until otherwise provided by law or President shall consist of the Office of the President
proclamation. Proper and the agencies under it.
(2) He shall also have the power to reserve from sale or SECTION 22. Office of the President Proper. — (1) The
other disposition and for specific public uses or purposes, Office of the President Proper shall consist of the Private
any land belonging to the private domain of the Office, the Executive Office, the Common Staff Support
Government, or any of the Friar lands, the use of which is System, and the Presidential Special Assistants/Advisers
not otherwise directed by law, and thereafter such land System;
shall be used for the purposes specified by such (2) The Executive Office refers to the Offices of the
proclamation until otherwise provided by law. Executive Secretary, Deputy Executive Secretaries and
SECTION 15. Power over Ill-gotten Wealth. — The Assistant Executive Secretaries;
President shall direct the Solicitor General to institute (3) The Common Staff Support System embraces the
proceedings to recover properties unlawfully acquired by offices or units under the general categories of
public officials or employees, from them or from their development and management, general government
nominees or transferees. administration and internal administration; and
Within the period fixed in, or any extension thereof (4) The Presidential Special Assistants/Advisers System
authorized by, the Constitution, the President shall have includes such special assistants or advisers as may be
the authority to recover ill-gotten properties amassed by needed by the President.
the leaders and supporters of the previous regime and
protect the interest of the people through orders of SECTION 23. The Agencies under the Office of the
sequestration or freezing of assets or accounts. President. — The agencies under the Office of the
President refer to those offices placed under the
chairmanship of the President, those under the
CHAPTER 5 Power of Appointment supervision and control of the President, those under the
administrative supervision of the Office of the President,
SECTION 16. Power of Appointment. — The President
those attached to it for policy and program coordination,
shall exercise the power to appoint such officials as
and those that are not placed by law or order creating
provided for in the Constitution and laws.
them under any special department.
SECTION 17. Power to Issue Temporary Designation.
— (1) The President may temporarily designate an officer
already in the government service or any other TITLE III Functions
competent person to perform the functions of an office in
the executive branch, appointment to which is vested in
him by law, when: (a) the officer regularly appointed to CHAPTER 9 Functions of the Different Offices in the
the office is unable to perform his duties by reason of Office of the President Proper
illness, absence or any other cause; or (b) there exists a A. Private Office
vacancy;
SECTION 24. Functions of the Private Office. — The
(2) The person designated shall receive the Private Office shall provide direct services to the
compensation attached to the position, unless he is President and shall for this purpose attend to functions
already in the government service in which case he shall and matters that are personal or which pertain to the
receive only such additional compensation as, with his First Family.
existing salary, shall not exceed the salary authorized by
law for the position filled. The compensation hereby B. The Executive Office
authorized shall be paid out of the funds appropriated for SECTION 25. Declaration of Policy. — The Executive
the office or agency concerned. Office shall be fully responsive to the specific needs and
(3) In no case shall a temporary designation exceed requirements of the President to achieve the purposes
one (1) year. and objectives of the Office.
SECTION 26. The Executive Secretary, the Deputy
CHAPTER 6 General Supervision Over Local Executive Secretaries, and the Assistant Executive
Secretaries. — The Executive Office shall be headed by
Governments the Executive Secretary who shall be assisted by one (1) or
SECTION 18. General Supervision Over Local more Deputy Executive Secretaries and one (1) or more
Governments. — The President shall exercise general Assistant Executive Secretaries.
supervision over local governments. SECTION 27. Functions of the Executive Secretary. —
The Executive Secretary shall, subject to the control and
CHAPTER 7 Other Powers supervision of the President, carry out the functions
assigned by law to the Executive Office and shall perform
SECTION 19. Powers Under the Constitution. — The such other duties as may be delegated to him. He shall:
President shall exercise such other powers as are
provided for in the Constitution. (1) Directly assist the President in the management of
the affairs pertaining to the Government of the Republic
SECTION 20. Residual Powers. — Unless Congress of the Philippines;
provides otherwise, the President shall exercise such
other powers and functions vested in the President which (2) Implement presidential directives, orders and
are provided for under the laws and which are not decisions;
specifically enumerated above, or which are not (3) Decide, for and in behalf of the President, matters
delegated by the President in accordance with law. not requiring personal presidential attention;
(4) Exercise supervision and control over the various
units in the Office of the President Proper including their
internal administrative requirements;


(5) Exercise supervision, in behalf of the President, over SECTION 29. Functions of Presidential
the various agencies under the Office of the President; Assistants/Advisers System. — The Special
(6) Appoint officials and employees of the Office of the Assistants/Advisers System shall provide advisory or
President whose appointments are not vested in the consultative services to the President in such fields and
President; under such conditions as the President may determine.
(7) Provide overall coordination in the operation of the

Executive Office; CHAPTER 10 Functions of the Agencies Under the Office
of the President
(8) Determine and assign matters to the appropriate
units in the Office of the President; SECTION 30. Functions of Agencies Under the Office
of the President. — Agencies under the Office of the
(9) Have administrative responsibility for matters in the
President shall continue to operate and function in
Office of the President coming from the various
accordance with their respective charters or laws creating
departments and agencies of government;
them, except as otherwise provided in this Code or by law.
(10) Exercise primary authority to sign papers "By
SECTION 31. Continuing Authority of the President to
authority of the President", attest executive orders and
Reorganize his Office. — The President, subject to the
other presidential issuances unless attestation is
policy in the Executive Office and in order to achieve
specifically delegated to other officials by him or by the
simplicity, economy and efficiency, shall have continuing
President;
authority to reorganize the administrative structure of the
(11) Determine, with the President's approval, the Office of the President. For this purpose, he may take any
appropriate assignment of offices and agencies not of the following actions:
placed by law under any specific executive department;
(1) Restructure the internal organization of the Office
(12) Provide consultative, research, fact-finding and of the President Proper, including the immediate Offices,
advisory service to the President; the Presidential Special Assistants/Advisers System and
(13) Assist the President in the performance of the Common Staff Support System, by abolishing,
functions pertaining to legislation; consolidating or merging units thereof or transferring
functions from one unit to another;
(14) Assist the President in the administration of
special projects; (2) Transfer any function under the Office of the
President to any other Department or Agency as well as
(15) Take charge of matters pertaining to protocol in transfer functions to the Office of the President from
State and ceremonial functions; other Departments and Agencies; and
(16) Provide secretarial and clerical services for the (3) Transfer any agency under the Office of the
President, the Cabinet, the Council of State, and other President to any other department or agency as well as
advisory bodies to the President; transfer agencies to the Office of the President from
(17) Promulgate such rules and regulations necessary other departments or agencies.
to carry out the objectives, policies and functions of the
Office of the President Proper;
(18) Perform such other functions as the President may BOOK IV The Executive Branch
direct.
C. Common Staff Support System CHAPTER 1 The Departments
SECTION 28. Functions of the Common Staff Support SECTION 1. Purpose and Number of Departments. —
System. — The various staff units in the Office of the The Executive Branch shall have such Departments as are
President Proper shall form a common staff support necessary for the functional distribution of the work of
system and shall be organized along the various tasks of the President and for the performance of their functions.
the Office namely:
SECTION 2. Declaration of Policy. — (1) The
(1) The Cabinet Secretariat which shall assist the Departments shall be organized and maintained to
President in the establishment of agenda topics for the insure their capacity to plan and implement programs in
Cabinet deliberations, or facilitate the discussion of accordance with established national policies;
cabinet meetings. It shall have such organization, powers
(2) Bureaus and offices shall be grouped primarily on
and functions as are prescribed by law;
the basis of major functions to achieve simplicity,
(2) The Presidential Management Staff (PMS) which economy and efficiency in government operations and
shall be the primary governmental agency directly minimize duplication and overlapping of activities; and
responsible to the Office of the President for providing
(3) The functions of the different Departments shall be
staff assistance in the Presidential exercise of overall
decentralized in order to reduce red tape, free central
management of the development process. It shall have
officials from administrative details concerning field
such organization, powers and functions as are
operations, and relieve them from unnecessary
prescribed by law;
involvement in routine and local matters. Adequate
(3) General Government Administration Staff which authority shall be delegated to subordinate officials.
shall provide the President with staff support on matters Administrative decisions and actions shall, as much as
concerning general government administration relative feasible, be at the level closest to the public.
to the operations of the national government including
SECTION 3. Department Proper. — (1) Unless
the provision of legal services, administrative services,
otherwise provided in this Code or by law, the
staff work on political and legislative matters, information
Department proper shall include the Office of the
and assistance to the general public, measures toward
Secretary and the staff units directly under it. The Office
resolution of complaints against public officials and
of the Secretary shall consist of the Secretary and the
employees brought to the attention of the Office of the
Undersecretary or Undersecretaries, together with the
President and such other matters as the President may
personnel in their immediate offices;
assign;
(2) Every Secretary shall be assisted by such number of
(4) Internal Administrative Staff which shall render
Undersecretaries as may be provided for by this Code or
auxiliary and support services for the internal
by law;
administration of the Office of the President.
The Undersecretary shall perform the functions as
D. Presidential Assistant/Advisers System
provided in Chapter 2 of this Book;


(3) Whenever necessary, Assistant Secretary position or objectively the performance of the Department and
positions may be created to form part of the Department submit the same annually to the President.
proper; and SECTION 9. Submission of Budget Estimates. — The
(4) In the absence of special provisions, the major staff Secretary shall prepare and submit to the President
units of each department shall be the services which shall through the Department of Budget and Management an
include: the Planning Service, the Financial and estimate of the necessary expenditures of the
Management Service, the Administrative Service, and department during the next fiscal year, on the basis of
when necessary, the Technical and Legal Services. the reports and estimates submitted by bureaus and
SECTION 4. Jurisdiction over Bureaus, Offices, officers under him.
Regulatory Agencies and Government Corporations. — SECTION 10. Powers and Duties of the
Each Department shall have jurisdiction over bureaus, Undersecretary. — The Undersecretary shall:
offices, regulatory agencies, and government-owned or (1) Advise and assist the Secretary in the formulation
controlled corporations assigned to it by law, in and implementation of department objectives and
accordance with the applicable relationship as defined in policies;
Chapters 7, 8, and 9 of this Book.
(2) Oversee all the operational activities of the
SECTION 5. Assignment of Offices and Agencies. — department for which he shall be responsible to the
The President shall, by executive order, assign offices and Secretary;
agencies not otherwise assigned by law to any
department, or indicate to which department a (3) Coordinate the programs and projects of the
government corporation or board may be attached. department and be responsible for its economical,
efficient and effective administration;
CHAPTER 2 Secretaries, Undersecretaries, and Assistant (4) Serve as deputy to the Secretary in all matters
relating to the operations of the department;
Secretaries
(5) Temporarily discharge the duties of the Secretary in
SECTION 6. Authority and Responsibility of the
the latter's absence or inability to discharge his duties for
Secretary. — The authority and responsibility for the
any cause or in case of vacancy of the said office, unless
exercise of the mandate of the Department and for the
otherwise provided by law. Where there are more than
discharge of its powers and functions shall be vested in
one Undersecretary, the Secretary shall allocate the
the Secretary, who shall have supervision and control of
foregoing powers and duties among them. The President
the Department.
shall likewise make the temporary designation of Acting
SECTION 7. Powers and Functions of the Secretary. Secretary from among them; and
— The Secretary shall:
(6) Perform such other functions and duties as may be
(1) Advise the President in issuing executive orders, provided by law.
regulations, proclamations and other issuances, the
SECTION 11. Duties and Functions of the Assistant
promulgation of which is expressly vested by law in the
Secretary. — The Assistant Secretary shall perform such
President relative to matters under the jurisdiction of the
duties and functions as may be provided by law or
Department;
assigned to him by the Secretary.
(2) Establish the policies and standards for the
operation of the Department pursuant to the approved
programs of government; CHAPTER 3 Department Services
(3) Promulgate rules and regulations necessary to SECTION 12. Department Services. — Except as
carry out department objectives, policies, functions, plans, otherwise provided by law, each Department shall have
programs and projects; Department Services which shall include the Planning
Service, the Financial and Management Service, the
(4) Promulgate administrative issuances necessary for Administrative Service, and whenever necessary the
the efficient administration of the offices under the Technical and Legal Services.
Secretary and for proper execution of the laws relative
thereto. These issuances shall not prescribe penalties for SECTION 13. Planning Service. — The Planning Service
their violation, except when expressly authorized by law; shall provide the department with economical, efficient
and effective services relating to planning, programming,
(5) Exercise disciplinary powers over officers and and project development, and discharge such other
employees under the Secretary in accordance with law, functions as may be provided by law. Where the work of
including their investigation and the designation of a the department does not call for substantial planning
committee or officer to conduct such investigation; and programming, the Planning Service shall be
(6) Appoint all officers and employees of the constituted as a single unit without subdivisions. Where
Department except those whose appointments are substantial primary data-gathering is essential to the
vested in the President or in some other appointing operations of the department, a statistical unit may be
authority; Provided, However, that where the Department constituted as part of a technical service.
is regionalized on a department-wide basis, the Secretary SECTION 14. Financial and Management Services. —
shall appoint employees to positions in the second level The Financial and Management Services shall advise and
in the regional offices as defined in this Code; assist the Secretary on budgetary, financial and
(7) Exercise jurisdiction over all bureaus, offices, management matters and shall perform such other
agencies and corporations under the Department as are functions as may be provided by law.
provided by law, and in accordance with the applicable SECTION 15. Administrative Service. — The
relationships as specified in Chapters 7, 8, and 9 of this Administrative Service shall provide the Department with
Book; economical, efficient and effective services relating to
(8) Delegate authority to officers and employees under personnel, legal assistance, information, records, delivery
the Secretary's direction in accordance with this Code; and receipt of correspondence, supplies, equipment,
and collections, disbursement, security and custodial work. It
shall also perform such other functions as may be
(9) Perform such other functions as may be provided provided by law.
by law.
SECTION 16. Technical Service. — Whenever
SECTION 8. Submission of Performance Evaluation necessary, one or more technical services shall be
Reports. — The Secretary shall formulate and enforce a established to take charge of technical staff activities
system of measuring and evaluating periodically and


essential to a department and which cannot be allocated unit performing combined staff functions may be
to the three other services or to the bureaus. provided.
SECTION 17. Legal Service. — A Legal Service shall be
provided where the operations of the department involve CHAPTER 5 Field Offices
substantial legal work, in which case the Administrative
Service shall not have a Legal Division. The Legal Service SECTION 21. Regional Offices. — Regional Offices shall
shall provide legal advice to the department; interpret be established according to law defining field service
laws and rules affecting the operation of the department; areas. The administrative regions shall be composed of a
prepare contracts and instruments to which the National Capital Region and Regions I to XII. Provincial
department is a party, and interpret provisions of and district offices may be established only by law
contracts covering work performed for the Department whenever necessary.
by private entities; assist in the promulgation of rules SECTION 22. Integration of Field Service. — Except as
governing the activities of the department; prepare otherwise provided by law and when the needs of the
comments on proposed legislation concerning the service so require, the department or agency shall
department; answer legal queries from the public; assist organize an integrated regional office on a department or
the Solicitor General in suits involving the Department or agency-wide basis.
its officers, or employees or act as their principal counsel
SECTION 23. Administration of Regional Office. —
in all actions taken in their official capacity before judicial
The regional office shall be headed by a Regional Director
or administrative bodies; and perform such other
who may be assisted by one (1) Assistant Regional
functions as may be provided by law.
Director, except as may otherwise be provided by law. The
Where the workload of the department does not Regional Director shall be responsible for department or
warrant a Legal Service or a Legal Division, there shall be agency functions performed in the region under his
one or more legal assistants in the Office of the Secretary. jurisdiction.
SECTION 24. Supervision of Regional Offices. — (1)
CHAPTER 4 Bureaus Whenever the function or activity of a department or
agency requires central or interregional action, the
SECTION 18. Bureaus in General. — (1) A Bureau is any function may be performed by the regional offices under
principal subdivision of the department performing a the supervision and control of the department proper or
single major function or closely related functions. line bureau concerned.
Bureaus are either staff or line.
(2) The staff bureau or division shall perform primarily
(2) Each bureau shall be headed by a Director who advisory or auxiliary functions and exercise in behalf of
may have one or more Assistant Directors as provided by the department or agency functional supervision over the
law; and regional offices. This shall include authority to develop
(3) Each bureau may have as many divisions as are and set down standards, policies and procedures to be
provided by law for the economical, efficient and effective implemented by operating units, and to evaluate
performance of its functions. continuously such implementation for the purpose of
SECTION 19. Staff Bureau. — (1) A staff bureau shall recommending or when authorized, taking corrective
primarily perform policy, program development and measures.
advisory functions. SECTION 25. Organization of Regional Offices. —
(2) The Director of a staff bureau shall: Regional offices organized on a department-wide basis
shall have units or personnel in which the functional
(a) Advise and assist the Office of the Secretary on areas of the staff bureaus and services in the department
matters pertaining to the Bureau's area of specialization; shall be represented. Regional offices of a line bureau
(b) Provide consultative and advisory services to the may have units or personnel in which the functional areas
regional offices of the department; of the primary units of the bureau are represented.
Related functions of regional units shall be consolidated.
(c) Develop plans, programs, operating standards, and
administrative techniques for the attainment of the SECTION 26. Functions of a Regional Office. — (1) A
objectives and functions of the bureau; and regional office shall:
(d) Perform such other duties as may be provided by (a) Implement laws, policies, plans, programs, rules
law. and regulations of the department or agency in the
regional area;
(3) The staff bureau shall avail itself of the planning,
financial and administrative services in the department (b) Provide economical, efficient and effective service
proper. The bureau may have a separate administrative to the people in the area;
division, if circumstances so warrant. (c) Coordinate with regional offices of other
SECTION 20. Line Bureau. — (1) A line bureau shall departments, bureaus and agencies in the area;
directly implement programs adopted pursuant to (d) Coordinate with local government units in the area;
department policies and plans. and
(2) The Director of a line bureau shall: (e) Perform such other functions as may be provided
(a) Exercise supervision and control over all divisions by law.
and other units, including regional offices, under the (2) District offices may be established only in cases of
bureau; clear necessity.
(b) Establish policies and standards for the operations SECTION 27. Duties of a Regional Director. — The
of the bureau pursuant to the plans and programs of the Regional Director shall:
department;
(1) Implement laws, policies, rules and regulations
(c) Promulgate rules and regulations necessary to within the responsibility of the agency;
carry out bureau objectives, policies and functions; and
(2) Implement agency programs in the region;
(d) Perform such other duties as may be provided by
law. (3) Exercise the management functions of planning,
organizing, directing and controlling;
(3) The line bureau may have staff units, as may be
necessary, corresponding to the services of the (4) Appoint personnel to positions in the first level and
department proper. If the bureau is small, only a single casual and seasonal employees; and exercise disciplinary


actions over them in accordance with the Civil Service be specified by their superiors not otherwise inconsistent
Law; with law;
(5) Approve sick, vacation and maternity leaves of (2) The head of bureau or office may, in the interest of
absence with or without pay, for a period not beyond one economy, designate the assistant head to act as chief of
year; any division or unit within the organization, in addition to
(6) Prepare and submit budget proposals for the his duties, without additional compensation; and
region to the central office, administer the budget of the (3) In the absence of special restriction prescribed by
regional office, authorize disbursement of funds pursuant law, nothing shall prevent a subordinate officer or
to approved financial and work programs, and administer employee from being assigned additional duties by
the budget control machinery in the region; proper authority, when not inconsistent with the
(7) Approve requisition for supplies, materials and performance of the duties imposed by law.
equipment, as well as books and periodicals, and other SECTION 32. Acting Head of Bureau or Office. — In
items for the region, in accordance with the approved case of the absence or disability of the head of a bureau
supply procurement program; or office, his duties shall be performed by the assistant
(8) Negotiate and enter into contracts for services or head. When there are two or more assistant heads, the
furnishing supplies, materials and equipment to the Secretary shall make the designation. In the absence of
regional office involving an amount not exceeding fifty an assistant head, the Secretary may designate any
thousand pesos (P50,000.00) within a given quarter, officer or employee of the bureau or office as acting head
provided that authority in excess of fifty thousand pesos without additional compensation.
(P50,000.00) may be further authorized by the proper SECTION 33. Performance of Duties of Subordinate
department or agency head; Officers Temporarily Absent. — In case of the temporary
(9) Approve claims for benefits under existing laws; absence or disability of any subordinate officer or
employee in any bureau or office, its head may, subject to
(10) Approve requests for overtime services; existing laws, rules and regulations, designate any other
(11) Promote coordination among the regional offices, subordinate officer or employee within the organization
and between his regional office and local government to perform temporarily the duties of the absent or
units in the region; disabled person.
(12) Provide housekeeping services for the regional SECTION 34. Filling of Vacancies. — Vacancies caused
office; by death, resignation or removal of any officer or
subordinate may be temporarily filled in the same
(13) Approve application of personnel for permission to manner as in the case of temporary absence or disability.
teach, exercise a profession, or engage in business The vacancies shall not be filled by permanent
outside of office hours in accordance with standards and appointment until the expiration of any leave allowable to
guidelines of the Civil Service Commission; the predecessor, unless the exigencies of the service
(14) Issue travel vouchers authorizing employees to require that the appointment be made immediately.
travel on official business within the region for a period SECTION 35. Power to Require Bonds. — (1) The head
not exceeding thirty days; of each bureau or office shall, consistent with law, rules
(15) Approve attendance of personnel in conferences, and regulations, prescribe the form and fix the amount of
seminars, and non-degree training programs within the all bonds executed by private parties to the government
region; under the laws pertaining to his bureau or office. He shall
pass on the sufficiency of the security and retain
(16) Authorize the allocation of funds to possession of the bond.
provincial/district offices; and
(2) When it appears that any such bond is insufficient,
(17) Perform such other duties and functions as may the head may require additional security. He may
be provided by law or further delegated by the head of withdraw the privilege secured by the bond upon failure
agency or other proper authorities concerned. of the party to give additional security within the period
SECTION 28. Review of Acts of Regional Director. — fixed in the notice, but such an action shall be without
Nothing in the preceding Section shall be construed as a prejudice to the liability of any person or property already
limitation on the power of the Secretary to review and obligated.
modify, alter or reverse any action of the Regional SECTION 36. Authority to Prescribe Forms and Issue
Director, or to initiate promotions and transfers of Regulations. — (1) The head of a bureau or office shall
personnel from one region to another. prescribe forms and issue circulars or orders to secure the
harmonious and efficient administration of his bureau or
CHAPTER 6 Powers and Duties of Heads of Bureaus or office and to carry into full effect the laws relating to
Offices matters within his jurisdiction. Penalties shall not be
prescribed in any circular or order for its violation, except
SECTION 29. Powers and Duties in General. — The as expressly allowed by law;
head of bureau or office shall be its chief executive officer.
He shall exercise overall authority in matters within the (2) Heads of bureaus or offices are authorized to issue
jurisdiction of the bureau, office or agency, including orders regarding the administration of their internal
those relating to its operations, and enforce all laws and affairs for the guidance of or compliance by their officers
regulations pertaining to it. and employees;
SECTION 30. Authority to Appoint and Discipline. — (3) Regional directors are authorized to issue circulars
The head of bureau or office shall appoint personnel to all of purely informational or implementing nature and
positions in his bureau or office, in accordance with law. orders relating to the administration of the internal affairs
In the case of the line bureau or office, the head shall also of regional offices and units within their supervision; and
appoint the second level personnel of the regional offices, (4) Issuances under paragraphs (2) and (3) hereof shall
unless such power has been delegated. He shall have the not require, for their effectivity, approval by the Secretary
authority to discipline employees in accordance with the or other authority.
Civil Service Law.
SECTION 37. Annual Reports. — (1) All heads of
SECTION 31. Duties of Assistant Heads and bureaus or offices of the national government shall
Subordinates. — (1) Assistant heads and other render annual reports to their respective Secretaries on or
subordinates in every bureau or office shall perform such before the last day of February of each year.
duties as may be required by law or regulations, or as may


(2) The reports shall contain concise statements of through its representative in the board, which shall serve
accomplishments and assessment of the progress as the framework for the internal policies of the attached
attained in terms of approved programs and projects, corporation or agency;
including pertinent financial statements on expenditures (b) Matters of day-to-day administration or all those
incurred in their implementation during the calendar pertaining to internal operations shall be left to the
year. Broad recommendations and plans for undertaking discretion or judgment of the executive officer of the
work during the ensuing period shall be included agency or corporation. In the event that the Secretary
together with matters specifically required by law or and the head of the board or the attached agency or
regulation to be incorporated therein. corporation strongly disagree on the interpretation and
application of policies, and the Secretary is unable to
CHAPTER 7 Administrative Relationships resolve the disagreement, he shall bring the matter to the
President for resolution and direction;
SECTION 38. Definition of Administrative
Relationships. — Unless otherwise expressly stated in the (c) Government-owned or controlled corporations
Code or in other laws defining the special relationships of attached to a department shall submit to the Secretary
particular agencies, administrative relationships shall be concerned their audited financial statements within sixty
categorized and defined as follows: (60) days after the close of the fiscal year; and
(1) Supervision and Control. — Supervision and control (d) Pending submission of the required financial
shall include authority to act directly whenever a specific statements, the corporation shall continue to operate on
function is entrusted by law or regulation to a the basis of the preceding year's budget until the
subordinate; direct the performance of duty; restrain the financial statements shall have been submitted. Should
commission of acts; review, approve, reverse or modify any government-owned or controlled corporation incur
acts and decisions of subordinate officials or units; an operating deficit at the close of its fiscal year, it shall
determine priorities in the execution of plans and be subject to administrative supervision of the
programs; and prescribe standards, guidelines, plans and department; and the corporation's operating and capital
programs. Unless a different meaning is explicitly budget shall be subject to the department's examination,
provided in the specific law governing the relationship of review, modification and approval.
particular agencies, the word "control" shall encompass
supervision and control as defined in this paragraph. CHAPTER 8 Supervision and Control
(2) Administrative Supervision. — (a) Administrative SECTION 39. Secretary's Authority. — (1) The Secretary
supervision which shall govern the administrative shall have supervision and control over the bureaus,
relationship between a department or its equivalent and offices, and agencies under him, subject to the following
regulatory agencies or other agencies as may be provided guidelines:
by law, shall be limited to the authority of the department
or its equivalent to generally oversee the operations of (a) Initiative and freedom of action on the part of
such agencies and to insure that they are managed subordinate units shall be encouraged and promoted,
effectively, efficiently and economically but without rather than curtailed, and reasonable opportunity to act
interference with day-to-day activities; or require the shall be afforded those units before control is exercised;
submission of reports and cause the conduct of (b) With respect to functions involving discretion,
management audit, performance evaluation and experienced judgment or expertise vested by law upon a
inspection to determine compliance with policies, subordinate agency, control shall be exercised in
standards and guidelines of the department; to take such accordance with said law; and
action as may be necessary for the proper performance of
official functions, including rectification of violations, (c) With respect to any regulatory function of an
abuses and other forms of maladministration; and to agency subject to department control, the authority of
review and pass upon budget proposals of such agencies the department shall be governed by the provisions of
but may not increase or add to them; Chapter 9 of this book.
(b) Such authority shall not, however, extend to: (1) (2) This Chapter shall not apply to chartered
appointments and other personnel actions in accordance institutions or government-owned or controlled
with the decentralization of personnel functions under corporations attached to the department.
the Code, except when appeal is made from an action of SECTION 40. Delegation of Authority. — The
the appointing authority, in which case the appeal shall Secretary or the head of an agency shall have authority
be initially sent to the department or its equivalent, over and responsibility for its operation. He shall delegate
subject to appeal in accordance with law; (2) contracts such authority to the bureau and regional directors as
entered into by the agency in the pursuit of its objectives, may be necessary for them to implement plans and
the review of which and other procedures related thereto programs adequately. Delegated authority shall be to the
shall be governed by appropriate laws, rules and extent necessary for economical, efficient and effective
regulations; and (3) the power to review, reverse, revise, or implementation of national and local programs in
modify the decisions of regulatory agencies in the accordance with policies and standards developed by
exercise of their regulatory or quasi-judicial functions; and each department or agency with the participation of the
(c) Unless a different meaning is explicitly provided in regional directors. The delegation shall be in writing; shall
the specific law governing the relationship of particular indicate to which officer or class of officers or employees
agencies, the word "supervision" shall encompass the delegation is made; and shall vest sufficient authority
administrative supervision as defined in this paragraph. to enable the delegate to discharge his assigned
responsibility.
(3) Attachment. — (a) This refers to the lateral
relationship between the department or its equivalent SECTION 41. Line Bureau Authority. — (1) Line bureaus
and the attached agency or corporation for purposes of of a department shall exercise supervision and control
policy and program coordination. The coordination may over their regional and other field offices. They shall be
be accomplished by having the department represented directly responsible for the development and
in the governing board of the attached agency or implementation of plans and programs within their
corporation, either as chairman or as a member, with or respective functional specializations; and
without voting rights, if this is permitted by the charter; (2) The regional and other field offices shall constitute
having the attached corporation or agency comply with a the operating arms of the bureau concerned for the
system of periodic reporting which shall reflect the direct implementation of the plans and programs drawn
progress of programs and projects; and having the up in accordance with approved policies and standards.
department or its equivalent provide general policies As counterparts of the bureau in the region, they shall


undertake bureau operations within their respective Provided, that this limitation shall not apply to ad hoc
jurisdictions, and be directly responsible to their bureau bodies or committees, or to boards, councils or bodies of
director. which the President is the Chairman.
If a Secretary, Undersecretary, Assistant Secretary or
CHAPTER 9 Relationships of Government-Owned or other appointive official of the Executive Department
Controlled Corporations and Regulatory Agencies to the holds more positions than what is allowed in the
preceding paragraph, he must relinquish the excess
Department
positions in favor of a subordinate official who is next in
SECTION 42. Government-Owned or Controlled rank, but in no case shall any official hold more than two
Corporations. — Government-owned or controlled positions other than his primary position.
corporations shall be attached to the appropriate
department with which they have allied functions, as
hereinafter provided, or as may be provided by executive CHAPTER 11 Administrative Issuances
order, for policy and program coordination and for SECTION 50. General Classification of Issuances. —
general supervision provided in pertinent provisions of The administrative issuances of Secretaries and heads of
this Code. bureaus, offices or agencies shall be in the form of
In order to fully protect the interests of the circulars or orders.
government in government-owned or controlled (1) Circulars shall refer to issuances prescribing policies,
corporations, at least one-third (1/3) of the members of rules and regulations, and procedures promulgated
the Boards of such corporations should either be a pursuant to law, applicable to individuals and
Secretary, or Undersecretary, or Assistant Secretary. organizations outside the Government and designed to
SECTION 43. Regulatory Agencies. — (1) A regulatory supplement provisions of the law or to provide means for
agency shall be subject to the administrative supervision carrying them out, including information relating thereto;
of the department under which they are placed, except and
when they are government corporations in which case (2) Orders shall refer to issuances directed to particular
they shall be governed by the provisions of the preceding offices, officials, or employees, concerning specific
section; matters including assignments, detail and transfer of
(2) The heads of regulatory agencies shall submit personnel, for observance or compliance by all
annually, for the approval of the Secretary concerned, concerned.
their budgets and work plans which shall be the basis of SECTION 51. Numbering System of Issuances. —
their day-to-day operations; and Every circular or order issued pursuant to the preceding
(3) The regulatory agencies may avail themselves of section shall properly be identified as such and
the common auxiliary and management services of the chronologically numbered. Each class of issuance shall
department as may be convenient and economical for begin with number 1 for each calendar year.
their operations. SECTION 52. Official Logbook. — Each department,
bureau, office or agency shall keep and preserve a
logbook in which shall be recorded in chronological order,
CHAPTER 10 Appointments and Qualifications
all final official acts, decisions, transactions or contracts,
SECTION 44. Appointment of Secretaries. — The pertaining to the department, bureau, office or agency.
Secretaries of Departments shall be appointed by the Whenever the performance of an official act is in issue,
President with the consent of the Commission on the date and the time record in the logbook shall be
Appointments, at the beginning of his term of office, and controlling. The logbook shall be in the custody of the
shall hold office, unless sooner removed, until the chief Administrative Officer concerned and shall be open
expiration of his term of office, or until their successors to the public for inspection.
shall have been appointed and qualified.
SECTION 53. Government-wide Application of the
SECTION 45. Qualifications of Secretaries. — The Classification of Issuances. — (1) The Records
Secretaries shall be citizens of the Philippines and not less Management and Archives Office in the General Services
than twenty-five years of age. Administration shall provide such assistance as may be
SECTION 46. Appointment of Undersecretaries and necessary to effect general adherence to the foregoing
Assistant Secretaries. — The Undersecretaries and classification of issuances, including the conduct of
Assistant Secretaries of Department shall, upon the studies for developing sub-classifications and guidelines
nomination of the Secretary of the Department to meet peculiar needs; and
concerned, be appointed by the President. (2) All administrative issuances of a general or
SECTION 47. Appointment to other Senior Positions permanent character shall be compiled, indexed and
and their Equivalents. — Directors and Assistant published pursuant to the provisions of this Code.
Directors of Bureaus, Regional and Assistant Regional
Directors, Department Service Chiefs, and their CHAPTER 12 Miscellaneous Receipts
Equivalents shall be appointed by the President in
accordance with law, rules and regulations. SECTION 54. Charges for Property Sold or Services
Rendered; Refunds. — (1) For services required by law to
SECTION 48. Disqualification of the Spouse and be rendered for a fee, for supplies furnished, or articles of
Relatives of the President. — The spouse and relatives by any kind sold to other divisions of the government or to
consanguinity or affinity within the fourth civil degree of any person, the head of bureau, office or agency may,
the President shall not during his tenure be appointed as upon approval of the Secretary, charge and collect the
Secretaries, Undersecretaries, Chairmen or heads of cost of the service, supplies, or articles or other rate in
bureaus or offices including government-owned or excess of cost prescribed by law or approved by the same
controlled corporations and their subsidiaries. authority. For local governments, the rate, except where
SECTION 49. Inhibitions Against Holding More than otherwise prescribed by law, shall be fixed at cost or at
Two Positions. — Even if allowed by law or by the primary such other reasonable rate in excess of cost by the boards
functions of his position, a member of the Cabinet, or councils concerned;
undersecretary, assistant secretary or other appointive (2) The officer authorized to fix the amount to be paid
official of the Executive Department may, in addition to for service rendered and supplies or articles furnished or
his primary position, hold not more than two positions in sold may recommend that the whole or part of any sum
the government and government-owned corporations so paid be refunded, upon approval of the Commission
and receive the corresponding compensation therefor: on Audit.



SECTION 55. Disposition of Miscellaneous Bureau Administration, Light
Receipts. — In the absence of special provision, money Rail Transit Authority
collected for property sold or service rendered, and all and Philippine National
other receipts or earnings of bureaus, offices, and Oil Company)
agencies not derived from taxation, shall accrue to the
general unappropriated funds of the National e. Governing Boards of 7.5 Mil. 1 Mil.
Government. Non-Infrastructure
SECTION 56. Printing of Studies and Researches. — Corporations
With the approval of the Secretary, a bureau, office, or
agency may print its studies, researches and similar
materials for distribution at cost to the public. The Save as provided for above, the approval ceilings
Secretary may authorize the printing or reprinting of the assigned to the departments/agencies involved in
said materials by private persons for sale to the public national infrastructure and construction projects shall
upon payment of such royalties as may be fixed by him, remain at the levels provided in existing laws, rules and
which shall accrue to the general fund. regulations.
SECTION 59. Contracts for Approval by the President.
— Contracts for infrastructure projects, including
CHAPTER 13 Contracts contracts for the supply of materials and equipment to be
SECTION 57. Conveyances and Contracts to which used in said projects, which involve amounts above the
the Government is a Party. — Any deed, instrument or ceilings provided in the preceding section shall be
contract conveying the title to real estate or to any other approved by the President: Provided, That the President
property the value of which does not exceed fifty million may, when conditions so warrant, and upon
pesos (P50,000,000) awarded through public bidding, recommendation of the National Economic and
and five million pesos (P5,000,000) awarded through Development Authority, revise the aforesaid ceilings of
negotiation, shall be executed and signed by the approving authority.
respective Secretary on behalf of the Government of the SECTION 60. Approval of Consultancy Contracts. —
Philippines. Where the value of the property exceeds the All purely consultancy contracts relating to infrastructure
aforesaid ceilings, such deed, instrument or contract shall projects, regardless of amount, shall be approved by the
be executed and signed by the President of the Secretaries concerned, in accordance with the Guidelines
Philippines on behalf of the Government. on the Hiring of Consultants to be promulgated by the
SECTION 58. Ceiling for Infrastructure Contracts. — National Economic and Development Authority: Provided,
The following shall be the ceilings for all civil works, That the National Economic and Development Authority
construction and other contracts for infrastructure shall be furnished by the departments, agencies or
projects, including supply contracts for said projects, government corporations concerned, copies of all
awarded through public bidding or through negotiation, consultancy contracts entered into by them involving an
which may be approved by the Secretaries of Public amount in excess of P1 million for monitoring purposes.
Works and Highways, Transportation and SECTION 61. Delegation of Authority to Governing
Communications, Local Government with respect to Boards of Government Corporations. — The Secretaries
Rural Road Improvement Project, and governing boards are authorized to delegate to the governing boards of
of government-owned or controlled corporations: government-owned or controlled corporations which are
attached to or are under the administrative supervision of
their respective departments, the authority to approve
Awarded Awarded contracts for infrastructure projects entered into by said
through through corporations involving amounts which are beyond the
Public Negotiation ceiling provided for government corporations under
Bidding Section 57 hereof but which are within the approving
a. Secretary of Public P100 Mil. P10 Mil. authority of the Secretaries under the said Section. In the
Works and Highways case of government corporations which are attached to
or under the Office of the President, the delegation shall
b. Secretary of 100 Mil. 10 Mil. be made by the Executive Secretary.
Transportation and SECTION 62. Public Bidding of Contracts; Exceptions.
Communications — As a general rule, contracts for infrastructure projects
shall be awarded after open public bidding to bidders
c. Secretary of Local 100 Mil. 2 Mil. who submit the lowest responsive/evaluated bids. Open
Government with Public Bidding shall be conducted among prequalified
respect to the Rural contractors in accordance with laws, rules and
Road Improvement regulations not inconsistent with the provisions of this
Project Chapter. The award of such contracts through
d. Government Boards of 50 Mil. 5 Mil. negotiation shall only be allowed by the Secretary or
Infrastructure Governing Board of the Corporation concerned within the
Corporations (National limits as stated in Section 57 hereof in the following cases:
Power Corporation, a. In times of emergencies arising from natural
National Irrigation calamities where immediate action is necessary to
Administration, prevent imminent loss of life or property, in which case,
Metropolitan direct negotiation or simplified bidding may be
Waterworks and undertaken;
Sewerage System,
b. Failure to award the contract after competitive
National Housing
public bidding for valid cause or causes, in which case,
Authority, Philippine
simplified bidding may be undertaken; and
Port Authority, National
Electrification c. Where the construction project covered by the
Administration, Export contract is adjacent or contiguous to an on-going project
Processing Zone and it could be economically prosecuted by the same
Authority, Philippine contractor, in which case, direct negotiation may be
National Railways, Local undertaken with the said contractor at the same unit
Water Utilities prices and contract conditions, less mobilization costs,
provided that he has no negative slippage and has



demonstrated a satisfactory performance. Otherwise, the
contract shall be awarded through public bidding. CHAPTER 14 Controversies Among Government Offices
SECTION 63. Contracts for Community Employment and Corporations
and Development Program Projects. — Contracts SECTION 66. How Settled. — All disputes, claims and
covering projects under the Community Employment controversies, solely between or among the departments,
and Development Program of the government shall be bureaus, offices, agencies and instrumentalities of the
awarded through open public bidding: Provided, That the National Government, including government-owned or
invitation to bid for the said projects shall be advertised at controlled corporations, such as those arising from the
least once within one week in a newspaper of local interpretation and application of statutes, contracts or
circulation within the province where the project is agreements, shall be administratively settled or
situated, through posting of notices in the premises of adjudicated in the manner provided in this Chapter. This
the municipal/provincial office, and through other forms Chapter shall, however, not apply to disputes involving
of media, such as radio and television: Provided, further, the Congress, the Supreme Court, the Constitutional
That the deadline for submission of bids for projects Commissions, and local governments.
costing not more than P1 million each may be shortened
to one week after the date of such invitation, posting of SECTION 67. Disputes Involving Questions of Law. —
notices or advertisement through other forms of media. All cases involving only questions of law shall be
submitted to and settled or adjudicated by the Secretary
SECTION 64. Constitution of the Prequalification, of Justice as Attorney-General of the National
Bids, and Awards Committee. — Each department, Government and as ex officio legal adviser of all
office or agency shall have in its head office or in its government-owned or controlled corporations. His ruling
implementing offices a Prequalification, Bids and Awards or decision thereon shall be conclusive and binding on all
Committee which shall be responsible for the conduct of the parties concerned.
prequalification of contractors, biddings, evaluation of
bids and recommending awards of contracts. Each SECTION 68. Disputes Involving Questions of Fact
Prequalification, Bids and Awards Committee shall be and Law. — Cases involving mixed questions of law and
composed of the following: of fact or only factual issues shall be submitted to and
settled or adjudicated by:
a. A Chairman (regular) who should at least be a third
ranking official of the department/agency/implementing (1) The Solicitor General, if the dispute, claim or
Office; controversy involves only departments, bureaus, offices
and other agencies of the National Government as well as
b. An Executive Officer and Secretary (regular) who is a government-owned or controlled corporations or entities
Legal Officer of the department/office/implementing of whom he is the principal law officer or general counsel;
office; and
c. A Technical Member (regular) to be designated by (2) The Secretary of Justice, in all other cases not falling
the Secretary or the head of the under paragraph (1).
office/agency/implementing office;
SECTION 69. Arbitration. — The determination of
d. Two members (provisional) with experience in the factual issues may be referred to an arbitration panel
type of project to be bidded and in project management, composed of one representative each of the parties
duly designated by the Secretary or the head of the involved and presided over by a representative of the
office/implementing office on a project-to-project basis; Secretary of Justice or the Solicitor General, as the case
and may be.
e. A representative from at least one of the following SECTION 70. Appeals. — The decision of the Secretary
organizations who shall be a non-voting member: of Justice as well as that of the Solicitor General, when
1. Philippine Institute of Civil Engineers approved by the Secretary of Justice, shall be final and
binding upon the parties involved. Appeals may, however,
2. Philippine Contractors Association
be taken to the President where the amount of the claim
3. National Confederation of Contractors Associations or the value of the property exceeds one million pesos.
of the Philippines, Inc. The decision of the President shall be final.
4. Philippine Institute of Certified Public Accountants SECTION 71. Rules and Regulations. — The Secretary
The representation in the Prequalification, Bids and of Justice shall promulgate the rules and regulations
Awards Committee of the above-mentioned private necessary to carry out the provisions of this Chapter.
organizations shall be made as follows:
1. During the prequalification stage, the representative TITLE I Foreign Affairs
to be invited shall come from the Philippine Institute of
Certified Public Accountants; and
CHAPTER 1 General Provisions
2. In the bidding, bid evaluation and award stages, a
representative each from the Philippine Institute of SECTION 1. Declaration of Policy. — The State shall
Certified Public Accountants and from the Philippine pursue an independent foreign policy. In its relations with
Contractors Association or the National Confederation of other states the paramount consideration shall be
Contractors Associations of the Philippines, Inc. shall be national sovereignty, territorial integrity, national interest,
invited as non-voting members of the Prequalification, and the right to self-determination.
Bids and Awards Committee without prejudice to inviting SECTION 2. Mandate. — The Department shall be the
another representative/s from any of the other lead agency that shall advise and assist the President in
organizations mentioned above. planning, organizing, directing, coordinating and
SECTION 65. Approval of other types of Government evaluating the total national effort in the field of foreign
Contracts. — All other types of government contracts relations.
which are not within the coverage of this Chapter shall, in SECTION 3. Powers and Functions. — To carry out its
the absence of a special provision, be executed with the mandate and accomplish its mission, the Department
approval of the Secretary or by the head of the bureau or shall:
office having control of the appropriation against which
the contract would create a charge. Such contracts shall (1) Conduct the country's foreign relations;
be processed and approved in accordance with existing (2) Maintain and develop the country's representation
laws, rules and regulations. with foreign governments;


(3) Conduct Philippine representation in the United (d) Develop its own policies, and rules, program of
Nations, the Association of Southeast Asian Nations activities, core staff and consultants, administrative
(ASEAN), and other international and regional structure, operating systems and resources, in order to
organizations; enable it to accomplish competently its activities.
(4) Serve as the channel for matters involving foreign It shall be revitalized as the training, research, and
relations, including official communications to and from career development arm of the Department, in
the Republic of the Philippines; accordance with such rules as may be prescribed by the
(5) Negotiate treaties and other agreements pursuant Secretary. The Institute shall be an integral participant in
to instructions of the President, and in coordination with the planning review process in the Department.
other government agencies; (2) UNESCO National Commission of the Philippines.
(6) Promote trade, investments, tourism and other — The United Nations Educational Scientific and Cultural
economic relations with other countries in cooperation Organization (UNESCO) National Commission of the
with other government agencies; Philippines shall, in coordination with the Office of United
Nations and other international organizations, advise the
(7) Foster cultural relations with other countries and Philippine Government and the Philippine delegation to
protect and enhance the Philippines' image abroad; the UNESCO Conference, on matters relating to UNESCO,
(8) Undertake efforts to inform the international and shall function as a liaison agency on matters
community about the Philippines in cooperation with pertaining to the Commission.
other government agencies; (3) Technical Assistance Council. — The Technical
(9) Protect and assist Philippine nationals abroad; Assistance Council shall continue to perform its present
functions including the conduct and expansion of its
(10) Carry out legal documentation functions as programs.
provided for by law and regulations;
SECTION 6. Undersecretaries. — The Secretary shall
(11) Monitor and analyze events in other countries and be assisted by two (2) Undersecretaries, who shall be
report them, as appropriate, to the President and other appointed by the President, upon the recommendation
government agencies; of the Secretary. The Secretary shall determine and assign
(12) Initiate, formulate, integrate and submit to the the respective functions and responsibilities of the
President short, medium, and long-range foreign policy Undersecretaries. The Secretary shall designate one of
plans and programs in cooperation with other the Undersecretaries as Acting Secretary in his absence.
government agencies; SECTION 7. Assistant Secretaries. — The Secretary
(13) Supervise and direct officials and employees shall be assisted by six (6) Assistant Secretaries who shall
assigned by the Department and other government be appointed by the President upon recommendation by
agencies to Foreign Service establishments abroad in the Secretary. The Secretary shall delineate the respective
accordance with the pertinent laws, rules and areas of responsibility of each Assistant Secretary.
inter-agency agreements; SECTION 8. Home Offices. — (1) Geographical Offices.
(14) Recruit, maintain and develop a professional — The following offices shall be responsible for providing
career foreign service based on merit; and staff support and policy guidance in the coordination,
supervision, monitoring, integration, and reporting of the
(15) Perform such other functions as may be provided activities and operations of Philippine diplomatic
by law. missions and establishments within their geographic
SECTION 4. Organizational Structure. — The coverage:
Department shall have the following units: (a) Office of Asian and Pacific Affairs: Japan and
(1) The Department Proper which shall be composed Northeast Asia, China, Central Asia, Southeast Asia, South
of the Office of the Secretary, the Offices of the Asia and Pacific countries;
Undersecretaries, the Offices of the Assistant Secretaries, (b) Office of Middle East and African Affairs: the Gulf
and the Home Offices; States, Middle East and North Africa, West Africa, and
(2) The Foreign Service Establishments which are the East Africa;
Philippine Embassies, Consulates, Legations and (c) Office of American Affairs: United States of America,
Permanent Missions. Canada, Mexico, the Central American and Caribbean
countries, and South America;
CHAPTER 2 Department Proper (d) Office of European Affairs: Union of Soviet Socialist
SECTION 5. Offices Under the Direct Supervision of Republics, Western Europe, Eastern Europe and Central
the Secretary. — The Secretary shall exercise direct Europe.
supervision over the following: (2) Office of ASEAN Affairs. — The Office of ASEAN
(1) Foreign Service Institute. — The Foreign Service Affairs shall be responsible for Philippine participation
Institute shall continue to operate under its charter, and and negotiation, as well as providing staff support and
shall have the following main objectives and policy guidance in the coordination, supervision,
responsibilities: monitoring, integration, reporting and operations of the
Philippine Government in the ASEAN.
(a) Program, implement, and manage the Career
Foreign Service Development Program (CFSDP) in all of (3) Office of the United Nations and Other
its main components for the purpose of upgrading the International Organizations. — The Office of the United
professional Career Foreign Service Corps; Nations and other International Organizations shall be
responsible for Philippine participation and negotiation
(b) Program, implement and manage complementary as well as providing staff support and policy guidance in
organizational development programs for the the coordination, supervision, monitoring, integration,
Department as well as other training and educational reporting and operations of the Philippine Government in
programs for both its career and non-career personnel, the United Nations, its specialized agencies and other
and personnel of other government agencies assigned to international organizations. It shall also serve as the
foreign missions; secretariat of all Philippine National Commissions and
(c) Program, implement and manage the necessary Councils created pursuant to commitments in the United
supportive plans and operating systems for the Career Nations and its specialized agencies.
Foreign Service Development Programs and (4) Office of International Economic Affairs and
complementary programs; Development. — The Office of International Economic



Affairs and Development shall be responsible for (4) Establish, develop and maintain the records system
conducting programs and activities of the Department in of the entire Department;
the fields of international trade, finance and economics; (5) Provide technical assistance to any service, office, or
coordinate with the regional offices and the Office of attached agency of the Department, on matters within its
United Nations and International Organizations; and, in competence; and
coordination with the Department of Trade and Industry,
conduct trade and investment promotion activities of the (6) Perform such other functions as may be assigned
Department. by the Secretary.
(5) Office of Cultural Affairs and Public Information SECTION 13. Office of Protocol, State and Official
Services. — The Office of Cultural Affairs and Public Visits. — The Office of Protocol, State and Official Visits
Information Services shall be responsible for promoting shall coordinate preparations for state visits, the reception
the cultural and information program of the Government of Chiefs of State, heads of Government, the highest
abroad and for the development and dissemination of foreign dignitaries visiting the Philippines, as well as
information and the coordination of information activities official visits of Philippine officials abroad, as may be
on the Government's foreign and domestic policies. determined by the President. It shall also be responsible
for handling all activities of the Department concerning
(6) Office of Personnel and Administrative Services. — protocol, ceremonials and socials, the proper observance
The Office of Personnel and Administrative Services shall and enforcement of formalities, courtesies, facilities,
be responsible for the efficient management of human immunities and privileges under the Vienna Convention
resources and administrative support services, and shall on Diplomatic Relations and the Vienna Convention on
make appropriate recommendations, including those Consular Relations, and other applicable conventions and
concerning job classification, salary administration, agreements.
benefits, retirement, and awards to deserving members
of the Foreign Service. SECTION 14. Office of Intelligence and Security. —
The Office of Intelligence and Security shall adopt a
(7) Office of Financial Management Services. — The system of information gathering and analysis, act as
Office of Financial Management Services shall be liaison with the intelligence community, and provide
responsible for budgetary, financial and accounting security services in the Department. It shall also
services in the Department and the Foreign Service. undertake the enforcement and monitoring of security
(8) Office of Consular Services. — The Office of procedures in the Department and Foreign Service
Consular Services shall be responsible for the efficient establishments.
and effective delivery of passport, visa and authentication
services. It shall also extend assistance to Filipino
nationals both here and abroad. CHAPTER 4 Board of Foreign Service Administration
SECTION 9. Advisory Boards and Committees. — The SECTION 15. Composition. — The Board of Foreign
Secretary may create such advisory boards and Service Administration shall be composed of nine (9)
committees as he may deem necessary to assist and members: one (1) Undersecretary as Chairman; the other
provide him with advice in the formulation of policies, as Undersecretary as Vice-Chairman; the six (6) Assistant
well as designate as special advisers such Chiefs of Secretaries and the Legal Adviser, as members.
Mission who are on home assignment on specific areas of SECTION 16. Functions. — The Board shall be
their expertise. responsible for considering and recommending policies
for the efficient and economical discharge of the
Administrative operations of the Department and the
CHAPTER 3 Department Services Foreign Service. It shall also consider and submit
SECTION 10. Office of the Legal Adviser. — The Office recommendations on policy and other matters
of the Legal Adviser shall be headed by a Legal Adviser, concerning personnel, including the appointment,
who shall be a career Chief of Mission. However, the Legal promotion and assignment of Foreign Service Staff
Adviser may be appointed by the President, upon the Officers and Employees, as well as recommend to the
recommendation of the Secretary, from outside the President through the Secretary the appointment and
career service, in which case he shall have the assimilated promotion of Foreign Service Officers, Counselors and
rank of a Chief of Mission. His term shall be co-terminus Chiefs of Mission. It shall also act and submit
with the tenure of the Secretary, unless sooner recommendations on administrative cases involving
terminated, and he is not eligible for foreign assignment. personnel of the Department and the Foreign Service.
The Legal Adviser shall provide legal advice and services
to the Department.
CHAPTER 5 Board of Foreign Service Examiners
SECTION 11. Office of Coordination and Policy
Planning. — The Office of Coordination and Policy SECTION 17. Composition. — The Board of Foreign
Planning shall be headed by the Chief Coordinator. The Service Examiners shall be composed of one (1)
Office of Coordination and Policy Planning shall initiate, Undersecretary as Chairman; and the Assistant Secretary
coordinate and integrate the planning of foreign policy. It for Personnel and Administrative Services and a
shall provide staff support to the Office of the Secretary Commissioner of the Civil Service Commission as
and perform coordinating and such other functions as members. The Board shall be under the administrative
may be prescribed by the Secretary. supervision of such Undersecretary.
SECTION 12. Office of Data Banking and SECTION 18. Functions. — The Board shall be
Communication. — The Office of Data Banking and responsible for planning and administering the Foreign
Communication shall establish and maintain a modern Service Officers Examinations and the Foreign Service
data and communication center in the Department. The Staff Officers and Foreign Service Staff Employees
Office shall: Examinations.
(1) Assist the Secretary on all matters regarding data

banking and information retrieval; CHAPTER 6 Attached Agencies
(2) Establish, develop and maintain a computerized SECTION 19. Attached Agencies. — The Law of the Sea
foreign-relations data bank for the Department; Secretariat, the Inter-Agency Technical Committee on
Economic, Scientific and Technical Cooperation with
(3) Establish, develop and maintain both domestic and Socialist Countries (SOCCOM), the Inter-Agency Technical
foreign service communications systems, including Committee on Technical Cooperation Among Developing
efficient flow systems for all correspondence between Countries (IATC-TCDC), the Permanent Inter-Agency
and among all Department units; Technical Committee on ESCAP Matters (PITCEM), and



other agencies attached to the Department shall Except in extraordinary cases, each foreign service
continue to operate and function in accordance with establishment shall have only military, labor, revenue,
their respective charters or laws creating them, except as tourism, information and commercial attaches.
otherwise provided in this Code. In the event of the actual need for more than one
attache, as determined by the department or agency in
CHAPTER 7 The Foreign Service consultation with the Department of Foreign Affairs, the
succeeding attache shall be accredited as assistant
SECTION 20. Functions of Diplomatic Missions. — The attache.
Diplomatic Missions shall:
SECTION 25. Relationships Between the Chief of
(1) Represent the Philippines abroad and promote Mission and Attaches. — The Chief of Mission shall be
friendly relations with other countries in all fields; responsible for the conduct of affairs of government at
(2) Protect national interests and the interests of the diplomatic posts. All attaches and representatives of
Filipino nationals abroad; other departments, shall during their tour of duty, be
under the immediate control and administrative
(3) Ascertain and evaluate conditions and
supervision of the Chief of Mission where they are
developments abroad and report thereon to the
assigned. They shall be required to submit their reports to
Department Head;
their agencies through the Chief of Mission and the
(4) Serve as channels of communication between the Department of Foreign Affairs, except when national
Government of the Philippines and foreign governments; security requires otherwise. They shall clear with the Chief
and of Mission all their public pronouncements at the
(5) Perform such other functions provided by law. diplomatic post, and all the documents and materials
they send shall be transmitted through the diplomatic
SECTION 21. Functions of Consular Establishments. — pouch.
The consular establishments shall:
The supremacy of the Chief of Mission for the conduct
(1) Protect national interests abroad and promote of foreign relations at the post is established. The Chief of
foreign relations in all fields, particularly in the economic Mission shall have the authority to discipline attaches
and trade areas; within his Mission, including the authority to have them
(2) Ascertain and evaluate conditions and recalled, if necessary.
developments abroad in the commercial, economic, SECTION 26. Assimilated Ranks. — (1) Except as the
cultural and scientific fields and report thereon to the President may appoint, no officer of the Philippine
Department Head; government stationed abroad, outside the Department of
(3) Issue passports and travel documents to Filipino Foreign Affairs, shall be assigned assimilated ranks higher
nationals, and visas or appropriate documents to foreign than Foreign Service Officer Class I.
nationals desiring to travel to the Philippines; (2) The assignment of assimilated rank to personnel of
(4) Protect the interests of Filipino nationals abroad, the Philippine government stationed abroad shall remain
provide necessary services and assistance, and perform with the President who shall act on the basis of
notarial functions allowed by regulations; recommendations of the Department of Foreign Affairs
and the Department of Budget and Management.
(5) Transmit judicial and extra-judicial documents and
execute letters rogatory or commissions to receive (3) The assimilated ranks are for purposes of
evidence abroad for Philippine courts; compensation only and shall not confer diplomatic rank
for purposes of protocol. Civil attaches shall always rank
(6) Supervise and inspect in accordance with laws and after the lowest ranking Foreign Service officer in the
regulations of the Philippines, vessels and aircrafts and post.
their crews; and
SECTION 27. Relationship Between the
(7) Perform such other functions as may be provided Consul-General or the Principal Officer at the Consulate
by law. and the Representative. — The relationship of the
Consul-General or the Principal Officer at the post and
CHAPTER 8 Attaches and Representatives the Representatives assigned to the said post shall be the
same as the relationship between the Chief of Mission
SECTION 22. Attaches of the Department. — The and the attaches.
Department Head shall designate attaches of the
Department from the ranks of Foreign Service Officers SECTION 28. Uniform Rules for Attache Services. — A
and Foreign Service Staff Officers. uniform set of rules and regulations shall govern attache
and representative services. This shall be drafted by an
SECTION 23. Attaches of Other Departments. — The Inter-Department Committee to be composed of the
assignment abroad of personnel in any Department, Undersecretary of Foreign Affairs as Chairman, and the
Bureau or office of the Philippine government as attaches Undersecretaries, or equivalent officials, of the
or representatives shall have the prior clearance of the Departments or agencies with attaches or
Secretary of Foreign Affairs. The clearance shall include representatives abroad, as members.
such matters as the actual need for opening particular
types of attache services, and the specific places where
these services will be made available. CHAPTER 9 Personnel
SECTION 24. Appointment and Accreditation of SECTION 29. Policy. — To enable the Foreign Service to
Attaches. — (1) The authority to appoint attaches shall be effectively serve abroad the interests of the Republic of
vested in the Head of the Department or agency the Philippines, it shall be the policy of the Department
maintaining the attache service, who shall consult with that only persons who are competent, of good moral
the Secretary of Foreign Affairs on such appointments. character, and fully informed of the Philippine History and
current trends in Filipino life shall be appointed to the
(2) A Department or agency shall have only one
service.
attache accredited to it by the receiving government,
except military attaches. SECTION 30. Categories of Officers and Employees.
— The Service shall consist of the following categories of
(3) The designation of attaches shall apply only to
officers and employees:
those serving in diplomatic missions. Those assigned to
consular establishments shall be designated as (1) Chiefs of Missions
representatives. (2) Counsellors


(3) Foreign Service Officers Service Staff Employees who must be in the Philippines
(4) Foreign Service Staff Officers at the time of their original or initial appointment.
(5) Foreign Service Staff Employees SECTION 37. Alien Employees. — The Secretary shall,
upon the recommendation of the head of diplomatic or
(6) Honorary Consuls consular establishment and as much as possible in
(7) Alien Employees accordance with the Civil Service Law, appoint alien
employees who shall be recruited at the post to
SECTION 31. Foreign Service Officers. — There shall be supplement the regular staff of a foreign service
a career service composed of foreign service officers. The establishment.
Service shall consist of six classes of Foreign Service
Officers including Chiefs of Missions and Counsellors. SECTION 38. Compensation and Benefits. — The
salaries, allowances, travel expenses, insurance and other
(1) A Chief of Mission may be assigned as Ambassador benefits of Foreign Service Officers, and Employees shall
Extraordinary and Plenipotentiary, Head of an Office in be as provided by law and regulations.
the Department, or Deputy Chief of Mission.
(2) A Counsellor may be assigned as Executive Officer
CHAPTER 11 Promotions
of an Office in the Department, Counsellor in an Embassy,
or Head of a Consular Post. SECTION 39. Merit Promotion System. — The Board of
the Foreign Service shall establish a merit promotion
(3) The assignments of the other classes of Foreign
system for all officers and employees of the Department.
Service Officers shall be as follows:
SECTION 40. Requirements for Promotion in the

Career Service. — (1) For promotion to Chief of Mission
Home Office Diplomatic Consular Class I, the candidate must have served as a Chief of
Service Service Mission Class II and rendered continuous service as
Foreign Service Officer for at least twelve (12) years;
Class I - Chief of First Secretary Consul
(2) For promotion to Chief of Mission Class II, the
Division
candidate must have served as a Foreign Service Officer
Class II - Chief of Secondary Consul Class I and rendered continuous service as Foreign
Division Secretary Service Officer for at least ten years;
Class III - Chief of Third Secretary Consul (3) For promotion to Foreign Service Officer Class I, the
Division candidate must have served as a Foreign Service Officer
Class II, and rendered continuous service as Foreign
Class IV - Asst. Chief Third Secretary Vice-Consul Service Officer for at least eight years;
of Division (4) For promotion to Foreign Service Officer Class II,
the candidate must have served as a Foreign Service
(4) In the home office, assignment to a position Officer Class III, and rendered continuous service as
requiring a rank higher than the actual rank of the Foreign Service Officer for at least six years;
Foreign Service Officer shall be in an acting capacity. (5) For promotion to Foreign Service Officer Class III,
(5) A Foreign Service Officer in any class may be the candidate must have rendered continuous service as
designated as a special assistant to the Secretary or to an a Foreign Service Officer Class IV for at least two years.
Undersecretary. A Foreign Service Officer below the rank SECTION 41. Promotion of Foreign Service Officers. —
of Class I may be designated as Principal Assistant to a (1) Promotions of Foreign Service Officers from one class
Head of Office. to the next higher class shall be made by the President
SECTION 32. Foreign Service Staff Officers. — There upon the recommendation of the Secretary. All
shall be three classes of Foreign Service Staff Officers to promotions shall be to the lowest grade of the class.
provide the administrative and technical services. (2) Promotion in grade within the class shall be made
SECTION 33. Foreign Service Staff Employees. — by the Secretary upon the recommendation of the Board
There shall be three classes of Foreign Service Staff of Foreign Service Administration.
Employees to provide the clerical, custodial, messengerial SECTION 42. Promotion of Foreign Service Staff
and similar services. Officers, Foreign Service Staff Employees and Alien
SECTION 34. Honorary Consuls. — Honorary consuls Employees. — Promotions of foreign service staff officers
shall be appointed from among qualified private persons and employees and alien employees shall be made by the
to perform certain consular functions on a non-career Secretary, upon recommendation of the Board of the
basis. Foreign Service Administration in accordance with the
promotion system.
CHAPTER 10 Appointments, Compensation and Benefits

CHAPTER 12 Assignments and Transfers
SECTION 35. Foreign Service Officers. — (1) Foreign
Service Officers shall be appointed by the President. SECTION 43. Rotation Plan. — The Secretary shall
establish a system of assignments and transfers to ensure
(2) No person shall be eligible for appointment as that all qualified officers and employees, except the
Foreign Service Officer unless he has passed the employees in the non-career service, shall serve in
competitive examinations given by the Board of Foreign diplomatic and consular establishments in different
Service Examiners and successfully completed his regions of the world. The assignment and transfer of
probationary service. personnel shall follow a regular rotation plan. For
(3) The Secretary shall, upon the recommendation of purposes of assignments, the home office shall be
the Board of Foreign Service, submit to the President considered a post. All personnel shall be available for
names of eligibles for appointment as Foreign Service assignment to any post.
Officers. The initial appointment of Foreign Service SECTION 44. Initial Home Office Requirement. — No
Officers shall only be to Foreign Service Officer Class IV Foreign Service Officer, Staff Officer or Employee shall be
minimum. assigned to any foreign service establishment unless he
SECTION 36. Staff Officers and Employees. — The has rendered continuous and satisfactory service in the
Secretary shall appoint, in accordance with the Civil home office for at least three (3) years.
Service Law, all Foreign Service Officers and Foreign


SECTION 45. Tour of Duty. — (1) The tour of duty of a rendered by the Department relating to passports.
Foreign Service Officer at any post shall be four (4) years However, no fee shall be collected for the issuance of
commencing on the date of his arrival at the post, after passports to government officials proceeding abroad in
which he shall be transferred to another post; the discharge of their official duties attested by regular
(2) The tour of duty of a Foreign Service Staff Officer or travel orders or for those issued to immediate members
Employee at any post shall be for a period of six (6) years of their families on official travel.
commencing on the date of his arrival at the post, after
which he shall be transferred to another post; CHAPTER 14 Miscellaneous Provisions
(3) No Foreign Service Officer, Staff Officer or SECTION 55. Use of Savings. — The Secretary is
Employee shall serve more than two (2) consecutive tours authorized to use any savings in the appropriations for
of duty abroad; the Department for the payment of: (a) expenses for the
(4) No Foreign Service Officer may serve more than evacuation or repatriation to the Philippines, when
four (4) consecutive years in the home office, except necessary due to an emergency, of members of the
when designated as Secretary or Undersecretary. household of the personnel of any diplomatic or consular
establishment as well as the transportation of their
SECTION 46. Retirement. — (1) Any Foreign Service personal effects; (b) actual return passage by the most
Officer, Staff Officer or Employee who has reached the direct and economical means of transportation and the
age of sixty-five (65) shall be compulsorily retired from cost of shipment of the household effects to Manila of any
the service unless his service is extended by the President officer or employee in the Foreign Service, including the
in the interest of the service. Alien employees shall be immediate dependent members of his family, who
allowed to retire from the service at the same age as that resigns or is separated from the service for cause; (c) the
provided for employees of the governments of their cost of preparing and transporting the remains of an
respective countries, provided that retirement age shall officer or employee who is a citizen of the Philippines and
not be beyond sixty-five (65) years. the immediate members of his family who may die
(2) Foreign Service Officers reinstated to the service abroad or while in travel status; or (d) contingent and
after retirement and who are assigned abroad as unforeseen expenses that may arise in connection with
ambassadors or chiefs of mission, and persons who are the operation of the Foreign Service.
appointed as ambassadors without previously serving as SECTION 56. Pool of Foreign Service Officers. — In all
Career Foreign Service Officers shall be considered appropriation acts providing funds for the operation and
automatically separated from the Foreign Service upon maintenance of the Department, the positions of Foreign
termination of their assignment abroad as ambassadors Service Officers, including those who may serve in the
or chief of missions. home office, shall be in a pool grouped according to their
SECTION 47. Resignation. — The Secretary shall have classes with their salaries and allowances indicated in one
authority to accept the resignation of any Foreign Service lump sum for each class, leaving to the head of office the
Officer, Staff Employee, Honorary Consul and Alien discretion to assign or commission those officers
Employee. whenever their services may be utilized to advantage,
subject to the limitations provided by law.
CHAPTER 13 Passport
SECTION 48. Definition. — A Philippine passport is an TITLE II Finance
official document of identity of Philippine citizenship of
the holder issued for travel purposes.
SECTION 49. Persons Entitled. — Only citizens of the
Philippines may be issued passports. A minor may, upon SECTION 1. Declaration of Policy. — It is the policy of
his own application, be issued a passport, except when the State that the Department of Finance shall be
his natural or legal guardian requests that the application primarily responsible for the sound and efficient
be denied. management of the financial resources of the
Government, its subdivisions, agencies and
SECTION 50. Authority to Issue, Restrict, Withdraw or instrumentalities.
Cancel. — The Secretary shall have authority to withhold
the issuance or order the cancellation or restriction of SECTION 2. Mandate. — The Department shall be
passports upon lawful order of the court or when he responsible for the formulation, institutionalization and
deems it necessary in the interest of national security, administration of fiscal policies in coordination with other
public safety or public health, or in cases when a passport concerned subdivisions, agencies and instrumentalities of
was secured through misrepresentation or fraud. government.
SECTION 51. Period of Validity, Extension and Moreover, the Department shall be responsible for the
Renewal. — The original period of validity of a Philippine generation and management of the financial resources
passport is two (2) years. It may be extended for another of government, ensuring that said resources are
two (2) years provided that the application for extension is generated and managed judiciously and in a manner
made before the expiration of four (4) years from the date supportive of development objectives.
of original issue of the passport. However, the validity of a The Department shall be responsible for the
passport may be limited for a certain period or for a supervision of the revenue operations of all local
definite purpose. government units, with the objective of making these
SECTION 52. Supplementary Regulation. — The entities less dependent on funding from the national
Secretary may prescribe supplementary regulations for government.
the issuance, extension or amendment of all kinds of Finally, the Department shall be responsible for the
passports. review, approval and management of all public sector
SECTION 53. Amendments. — Upon application, an debt, whether foreign or domestic, with the end in view
unexpired passport may be amended to reflect the new of ensuring that all borrowed funds are effectively utilized
civil status or new name or surname of the holder, or to and all such obligations are promptly serviced by the
add more pages, or to modify a condition or restriction government.
therein. SECTION 3. Powers and Functions. — To accomplish
SECTION 54. Fees. — The Secretary shall prescribe its goals, the Department shall:
uniform fees for the issuance, extension and amendment (1) Formulate long-range, medium-term and annual
of passports, and such other services that may be plans covering the government's resource mobilization


effort, in coordination with other concerned government (7) Regional Coordination Office.
agencies, and involving all public sector resources SECTION 9. Planning and Policy Research Office. —
whether generated by revenues and operations, foreign The Planning and Policy Research Office shall have the
and domestic borrowings, sale or privatization of following functions:
corporation or assets, or from other sources, and
supervise the implementation of such plans; (1) Formulate long-range and annual projections of
revenue needs, cash position and borrowing capacity of
(2) Formulate, institutionalize and administer fiscal the Government as basis for policy decisions of the
and tax policies; department;
(3) Supervise, direct and control the collection of (2) Supervise policy research and development on
government revenues; fiscal and tax measures undertaken by the operating
(4) Act as custodian and manage all financial bureaus and offices of the department;
resources of the national government; (3) Coordinate with other government agencies on
(5) Undertake and supervise activities related to the policy research and its impact on fiscal and tax measures;
negotiation, servicing and restructuring of domestic and and
foreign debt incurred or guaranteed by the government (4) Perform such other functions as may be assigned
and its instrumentalities, including taking part in by the Secretary or his undersecretaries.
activities which affect the country's capacity to service
foreign debt; SECTION 10. Central Management Information
Office. — The Central Management Information Office
(6) Review and coordinate the policies, plans and shall have the following functions:
programs of government financial institutions and,
thereafter, recommend to them courses of action (1) Establish a Management Information System and
consistent with national government fiscal policies, plans sub-systems for monitoring and evaluation of
and programs; department-wide programs and projects, including those
that are executed by operating Bureaus and Offices;
(7) Ensure the implementation of necessary policies
and measures on local revenue administration; (2) Formulate policies, plans and procedures for data
control and systems management;
(8) Coordinate with other government agencies on
matters concerning fiscal and monetary policies, credit, (3) Act as the central repository of existing and future
economic development, international finance, trade and computer files; and
investment; and (4) Perform such other appropriate functions as may
(9) Perform such other powers and functions as may be assigned by the Secretary or his undersecretaries.
be provided by law. SECTION 11. Central Administration Office. — The
SECTION 4. Organizational Structure. — The Central Administration Office shall have the following
Department shall consist of the Department proper functions:
comprising the Office of the Secretary, the Offices of the (1) Supervise Department-wide services relating to
Undersecretary and Assistant Secretaries, the Economic internal cash management, personnel administration,
Intelligence and Investigation Bureau, the Services, the property and supplies procurement and custody; and
Operations Groups and their constituent units, and the maintenance of central files, and corresponding
Regional Offices. reporting systems;
(2) Assist in the formulation of policies and guidelines
CHAPTER 2 Department Proper on the management of human and physical resources
SECTION 5. Office of the Secretary. — The Office of and general housekeeping activities for uniformity and
the Secretary shall consist of the Secretary, his standardization;
Undersecretaries and their immediate staffs. (3) Serve as a center for the establishment and
SECTION 6. Undersecretaries. — The Secretary shall periodic evaluation of management operation systems,
be assisted by five (5) Undersecretaries appointed by the internal control and work outputs to determine
President upon the recommendation of the Secretary, Department-wide performance efficiency;
each of whom shall head, respectively, the Policy (4) Design and develop training policies and
Development and Management Services Group guidelines, administer and evaluate training programs
mentioned in Section 8 hereof and the four (4) and in coordination with external training institutions,
Operations Groups mentioned in Section 9 hereof. screen and recommend to the Secretary the participation
SECTION 7. Assistant Secretaries. — The Secretary of Department personnel in training programs, seminars
shall also be assisted by five (5) Assistant Secretaries and conferences in the country or abroad;
appointed by the President upon the recommendation of (5) Ensure that Department-wide activities and efforts
the Secretary. The respective assignments of the are focused towards a central direction as embodied in
Assistant Secretaries and the reporting procedures to be the national socio-economic development plans; and
followed by them shall be determined by the Secretary.
(6) Perform such other appropriate functions as may
be assigned by the Department or his Undersecretaries.
CHAPTER 3 Department Services SECTION 12. Central Financial Management Office.
SECTION 8. Policy Development and Management — The Central Financial Management Office shall have
Services Group. — The Policy Development and the following functions:
Management Services Group, which shall be headed by (1) Supervise Department-wide activities relating to
an Undersecretary, shall consist of the following: budget preparation and management, department
(1) Planning and Policy Research Office; accounting, and internal audit;
(2) Central Management Information Office; (2) Perform such other appropriate functions as may
be assigned by the Department or his Secretary or his
(3) Central Administration Office; Undersecretaries.
(4) Central Financial Management Office; SECTION 13. Public Information and Assistance
(5) Public Information and Assistance Office; Office. — The Public Information and Assistance Office
(6) Legal Office; and shall have the following functions:


(1) Provide policy direction and guidance to the framework and guidelines for the proper conduct of
operating Bureaus and Offices of the Department for the intelligence and investigation work;
proper dissemination of appropriate information or (4) Supervise, monitor and coordinate all the
Department- wide programs, operations and activities; intelligence and investigation operations of the operating
(2) Provide the operating Bureaus and Offices with the Bureaus and Offices under the Department;
general framework for rendering direct assistance to the (5) Investigate, hear and file, upon clearance by the
general public; Secretary, anti-graft and corruption cases against
(3) Receive complaints and grievances from the personnel of the Department and its constituent units;
general public; prepare referrals to concerned Bureaus and
and Offices and monitor responses or actions taken; and (6) Perform such other appropriate functions as may
(4) Perform such other appropriate functions as may be assigned by the Secretary or his Undersecretaries.
be assigned by the Secretary or Undersecretary for Policy SECTION 18. The Bureau of Internal Revenue. — The
Development and Management Service. Bureau of Internal Revenue, which shall be headed by
SECTION 14. Legal Office. — The Legal Office shall and subject to the supervision and control of the
have the following functions: Commissioner of Internal Revenue, who shall be
(1) Prepare draft opinions or rulings for the signature of appointed by the President upon the recommendation of
the Department Secretary or his Undersecretaries on the Secretary shall have the following functions:
matters elevated to it by the Bureaus and Offices of the (1) Assess and collect all taxes, fees and charges and
Department; account for all revenues collected;
(2) Conduct legal researches on all matters referred to (2) Exercise duly delegated police powers for the
it by the Secretary or his Undersecretaries; and proper performance of its functions and duties;
(3) Perform such other appropriate functions as may (3) Prevent and prosecute tax evasions and all other
be assigned by the Secretary or his Undersecretaries. illegal economic activities;
SECTION 15. Regional Coordination Office. — The (4) Exercise supervision and control over its
function of the Regional Coordination Office is to constituent and subordinate units; and
coordinate the operations of the Regional Offices. (5) Perform such other functions as may be provided
by law.
CHAPTER 4 Bureaus The Commissioner of Internal Revenue, with the
SECTION 16. Operations Groups. — The Operations approval of the Secretary of Finance, shall draft and
Groups, each of which shall be headed by an prepare the necessary rules and regulations as may be
Undersecretary, shall consist of the following: needed to delineate the authority and responsibility of
the various groups and services of the Bureau.
(1) Revenue Operations Group, composed of the
following: SECTION 19. Deputy Commissioners. — The
Commissioner shall be assisted by two (2) Deputy
(a) Bureau of Internal Revenue; Commissioners. Each Deputy Commissioner shall
(b) Bureau of Customs; supervise one (1) of the groups defined in Sec. 20 below,
to be assigned by the Commissioner.
(c) Revenue Service;
SECTION 20. Composition of the Bureau of Internal
(d) Legal Service;
Revenue. — The Bureau of Internal Revenue shall be
(2) Domestic Operations Group, composed of the composed of the following:
following:
(1) Assessment and Collection Group, headed and
(a) Bureau of Treasury; supervised by a Deputy Commissioner and composed of
(b) Bureau of Local Government Finance; the following services, each of which shall be headed by a
Revenue Chief;
(c) Financial and Fiscal Policy and Planning Office;
(2) Legal and Internal Administration Group, headed
(3) International Finance Group, composed of the and supervised by a Deputy Commissioner and
following: composed of the following services, each of which shall
(a) International Finance Policy Office; be headed by a Service Chief.
(b) International Finance Operations Office. SECTION 21. Appointment by the President. — The
aforementioned Undersecretaries shall be appointed by
SECTION 17. Economic Intelligence and Investigation the President upon the recommendation of the
Bureau. — The Economic Intelligence and Investigation Secretary.
Bureau, which shall be headed by and subject to the
supervision and control of the Commissioner, who shall in SECTION 22. Management and Technical Staff . —
turn be appointed by the President upon the The Commissioner and the two (2) Deputy
recommendation of the Secretary, shall have the Commissioners shall each have a Management and
following functions: Technical Staff to render technical and secretarial support
services.
(1) Receive, gather and evaluate intelligence reports
and information and evidence on the nature, modes and SECTION 23. Bureau of Customs. — The Bureau of
extent of illegal activities affecting the national economy, Customs which shall be headed and subject to the
such as, but not limited to, economic sabotage, management and control of the Commissioner of
smuggling, tax evasion, and dollar-salting, to investigate Customs, who shall be appointed by the President upon
the same and aid in the prosecution of cases; the recommendation of the Secretary and hereinafter
referred to as Commissioner, shall have the following
(2) Coordinate with external domestic or foreign functions:
agencies in monitoring the financial and economic
activities of persons or entities, which may adversely (1) Collect customs duties, taxes and the
affect national financial interest with the goal of corresponding fees, charges and penalties;
regulating, controlling or preventing said activities; (2) Account for all customs revenues collected;
(3) Provide all intelligence units of operating Bureaus (3) Exercise police authority for the enforcement of
or Offices under the Department with the general tariff and customs laws;


(4) Prevent and suppress smuggling, pilferage and all (a) Regularly and consistently gather intelligence
other economic frauds within all ports of entry; information related to customs and economic activities
(5) Supervise and control exports, imports, foreign for proper dissemination to the Customs offices
mails, and the clearance of vessels and aircrafts in all concerned;
ports of entry; (b) Conduct internal inquiry and investigation which
(6) Administer all legal requirements that are may serve as the basis for prosecution;
appropriate; (c) Exercise police authority conferred by the Tariff and
(7) Prevent and prosecute smuggling and other illegal Customs Code or other laws which include the
activities in all ports under its jurisdiction; enforcement of seizures and forfeitures and the
imposition of penalties and fines; and
(8) Exercise supervision and control over its
constituent units; (d) Perform such other appropriate functions
consistent with the assigned tasks of the Group and
(9) Perform such other functions as may be provided others which may be given by the Commissioner.
by law.
SECTION 27. The Collection Districts. — (1) The Bureau
SECTION 24. Composition. — The Bureau of Customs shall have thirteen (13) Collection Districts under the
shall be composed of the following: direct control and supervision by the Commissioner. Each
(1) Customs Revenue Collection Monitoring Group, Collection District shall have as many subports as
headed and supervised by a Deputy Commissioner and necessary to maximize revenue collection and the
composed of Legal, Financial and Collection Services, prevention of smuggling and fraud against customs.
each of which shall be headed by a service chief; Each Collection District shall be headed and supervised
by a District Collector while each subport will be headed
(2) Customs Assessment and Operations Coordinating by a Port Collector. The Collectors shall have the following
Group, headed and supervised by a Deputy functions:
Commissioner and composed of the Imports and
Assessment and Ports Operations Services, each of which (a) Collect duties, taxes, fees, charges, penalties and
shall be headed by a Service Chief; and fines accruing to the Government under the Tariff and
Customs Code and related laws;
(3) Intelligence and Enforcement Group, headed and
supervised by a Deputy Commissioner and composed of (b) Exercise police powers conferred to him/her by the
the Intelligence and Investigation Service and the Tariff and Customs Code or other laws which include the
Enforcement and Security Service. enforcement of penalties and fines;
SECTION 25. Appointment by President. — The (c) Examine goods, assess duties, fees, charges,
aforementioned Deputy and Assistant Commissioners penalties and fines accruing to the Government under
shall be appointed by the President upon the the Tariff and Customs Code and other related laws;
recommendation of the Commissioner of Customs in (d) Supervise the entrance and clearance of vessels
keeping with the intent of Executive Order No. 9. and aircrafts engaged in foreign commerce;
SECTION 26. Definition of Functions. — (1) Customs (e) Supervise and control handling of foreign mails
Revenue Collection Monitoring Group. The Customs arriving in the Philippines; and
Revenue Collection Monitoring Group shall have the
following functions: (f) Supervise all import and export cargoes landed
and/or stored in piers, airports, terminal facilities, yards
(a) Maintain an updated accounting for all Customs and freight stations;
revenues collected;
(2) Perform such other appropriate functions
(b) Administer legal requirements of the Bureau of consistent with the assigned task of the District/Port
Customs to include litigation and prosecution of cases; Collectors and those which may be given by the
(c) Provide the Commissioner of Customs with Commissioner.
accurate and timely information and analysis of collection SECTION 28. Management and Technical Staff . —
statistics; The Commissioner and three (3) Deputy Commissioners,
(d) Conduct continuing audit of liquidated entries and and the Assistant Commissioner shall each have a
outstanding bonds; and Management and Technical Staff, which shall be limited
to a specific number of personnel as determined by the
(e) Perform such other appropriate functions Secretary, to render technical and secretarial support
consistent with the assigned tasks of the group and services.
others which may be given by the Commissioner;
SECTION 29. Bureau of Treasury. — The Bureau of
(2) Customs Assessment and Operations Coordinating Treasury, which shall be headed by and subject to the
Group. The Customs Assessment and Operations supervision and control of the National Treasurer who
Coordinating Group shall have the following functions: shall be appointed by the President upon the
(a) Regularly gather and upon approval of the recommendation of the Secretary, shall have the
Commissioner, publish values of commodities imported following functions:
into the Philippines, such values being the bases for the (1) Act as the principal custodian of all national
computation of customs duties and other revenues; government funds;
(b) Monitor for decision-making purposes the (2) Assist in the formulation of, and execute, policies on
implementation of rules and regulations governing financial management, public borrowings and capital
assessment, warehousing and support operations; market development;
(c) Monitor auction and disposal activities together (3) Formulate, in coordination with government
with port/airport operations related activities for agencies concerned, annual projections of revenue
decision-making purposes; and needs, cash position and borrowing capacity of the
(d) Perform other appropriate functions consistent government;
with the assigned tasks of the Group which may be given (4) Maintain accounts of the financial transactions of
by the Commissioner. all national secretaries, bureaus, agencies and
(3) Intelligence and Enforcement Group. The instrumentalities;
Intelligence and Enforcement Group shall have the
following functions:


(5) Manage the cash resources of the Government and collection enforcement mechanisms, and credit
perform banking functions in relation to receipts and utilization schemes at the local levels;
disbursements of national funds; (4) Provide consultative services and technical
(6) Manage, control and service public debts from assistance to the local governments and the general
domestic or foreign sources; public on local taxation, real property assessment and
(7) Exercise line supervision over its Regional other related matters;
Offices/field units within Department Regional (5) Exercise line supervision over its Regional
Administrative Coordination Offices; and Offices/field units within the Department Regional
(8) Perform such other appropriate functions as may Administrative Coordination Office and the Local Treasury
be assigned by the Secretary or Undersecretary for and Assessment Services; and
Domestic Operations. (6) Perform such other appropriate functions as may
SECTION 30. Composition. — The Bureau of Treasury be assigned by the Secretary or Undersecretary for
shall be composed of the following: Domestic Operations.
(1) Internal Affairs Sub-Sector under the direct SECTION 34. Composition. — The Bureau of Local
supervision and control of an Assistant National Treasurer Government Finance shall be composed of the following:
and composed of the following: (1) Internal Administration Office;
(a) Administrative Service; (2) Policy Enforcement and Special Projects Group;
(b) Financial and Management Service; (3) Field Operations Examination Group.
(c) Management Information and Data Systems SECTION 35. Assistance to the Executive Director. —
Service; The Executive Director shall be directly assisted by the:
(d) Planning and Policy Research Division; (1) Management and Technical Staff, which shall
(e) Public Information and Assistance Division; and perform the functions of rendering technical and
secretarial support services;
(f) Legal Division.
(2) Intelligence and Investigation Office, which shall
(2) National Government Affairs Sub-Sector under the perform the following functions:
direct supervision and control of an Assistant National
Treasurer and composed of the following: (a) Monitor, gather and evaluate reports on financial
and economic activities of persons or entities, foreign and
(a) Public Debt Management Service; domestic, which may adversely affect national financial
(b) Debt Clearing Service; interests;
(c) National Cash Accounts Service; (b) Perform such other appropriate functions as may
be assigned by the Director.
(d) Treasury Banking Service;
SECTION 36. Financial and Fiscal Policy Planning. —
(e) Operations Planning Service; The Financial and Fiscal Policy and Planning Office, which
(f) Regional Offices which shall have under their shall be headed by a Director who shall be appointed by
supervision all provincial offices and shall be under the the President upon the recommendation of the
direct control and supervision of the National Treasurer. Secretary, shall have the following functions:
SECTION 31. Assistance to National Treasurer. — The (1) Coordinate, in consultation with the appropriate
National Treasurer shall be directly assisted by the: government agencies, the formulation of integrated
financial and fiscal plans of the national Government and
(1) Management and Technical Staff, which shall the local governments, consistent with the national
perform the functions of rendering technical and development plan;
secretarial support services;
(2) Monitor and review the implementation of such
(2) Intelligence and Investigation Office, which shall financial and fiscal plans in relation to recent
perform the following functions: developments in the economy;
(a) Monitor, gather and evaluate reports on financial (3) Coordinate with other government agencies
and economic activities of persons or entities, foreign and involved in financial, fiscal and economic planning and
domestic, which may adversely affect national financial policy formulation;
interests;
(4) Undertake special studies and research projects on
(b) Perform such other appropriate functions as may financial and fiscal policies;
be assigned by the National Treasurer.
(5) Coordinate the formulation and assessment of
SECTION 32. Appointment by the President. — The Department policies affecting domestic finance
aforementioned two (2) Assistant National Treasurers operations with the different bureaus and offices of the
shall be appointed by the President upon the Department; and
recommendation of the Secretary.
(6) Perform such other appropriate functions as may
SECTION 33. Bureau of Local Government Finance. — be assigned by the Secretary, the Undersecretary for
The Bureau of Local Government Finance, which shall be Domestic Operations or the Assistant Secretary directly
headed by and subject to the supervision and control of assisting the Undersecretary for Domestic Operations.
an Executive Director who shall be appointed by the
President and upon the recommendation of the SECTION 37. International Finance Policy Office. —
Secretary, shall have the following functions: The International Finance Policy Office, headed by a
Director who shall be appointed by the President upon
(1) Assist in the formulation and implementation of recommendation of the Secretary, shall have the
policies on local government revenue administration and following functions:
fund management;
(1) Monitor and analyze international monetary,
(2) Exercise administrative and technical supervision financial and trade developments and their implications
and coordination over the treasury and assessment for the Philippine economy and evolve proposals for
operations of local governments; appropriate response to said events;
(3) Develop and promote plans and programs for the (2) Provide inputs into the formulation of fiscal,
improvement of resource management systems, monetary, financial, foreign trade and exchange rate
policies as well as budgetary and balance of payments


programming in line with domestic economic goals and Internal Administration. The Secretary shall define the
the external financial and trade environment; appropriate functions to be delegated to the DOF-RACO.
(3) Formulate and monitor a foreign financing The Regional Offices of each operating Bureau under
program on the basis of domestic requirements and the Department, however, shall remain under the
trends in development assistance and other capital flows; technical supervision and control of the head of the
(4) Interact with multilateral, regional and other Bureau to which they belong. For monitoring purposes,
international organizations and formulate in coordination however, each Regional Office shall submit operational
with appropriate agencies Philippine positions on reports to the DOF-RACO as required.
institutional and policy issues taken up in these bodies;
(5) Coordinate with other appropriate secretaries and CHAPTER 6 Attached Agencies
government agencies in areas concerning international SECTION 42. Attached Agencies. — The following
finance and foreign trade; and agencies are hereby attached to the Department:
(6) Perform such other appropriate functions as may (1) Philippine Crop Insurance Corporation;
be assigned by the Secretary or Undersecretary for
International Finance. (2) Philippine Export and Foreign Loan Guarantee
Corporation;
SECTION 38. International Finance Operations
Office. — The International Finance Operations Office, (3) Insurance Commission;
headed by a Director, shall have the following functions: (4) National Tax Research Center;
(1) Assist in the formulation of policies and guidelines (5) Central Board of Assessment Appeals; and
for foreign borrowings including provisions of
(6) Fiscal Incentives Review Board.
government guarantees and monitor compliance with
these policies; SECTION 43. Functions of the Attached Agencies. —
The agencies attached to the Department shall continue
(2) Provide support work for international financial
to operate and function in accordance with the respective
negotiations and participate in such negotiations with
charters, laws, or orders creating them, except as
multilateral financial institutions, bilateral creditors and
otherwise provided in this Code.
donors and commercial creditors. This includes
negotiations for new assistance (grants and loans) as well
as for debt rescheduling;
TITLE III Justice
(3) Monitor implementation of projects funded by
foreign assistance and credits, utilization of such external
resources and compliance with commitments as well as CHAPTER 1 General Provisions
debt repayment obligations; SECTION 1. Declaration of Policy. — It is the declared
(4) Assist in the structuring and conduct of policy of the State to provide the government with a
international conferences and meetings of the principal law agency which shall be both its legal counsel
Department's officers (the term "officer" as used in this and prosecution arm; administer the criminal justice
Executive Order is intended to be within the meaning of system in accordance with the accepted processes
the term "official" as used in the Freedom Constitution) thereof consisting in the investigation of the crimes,
with foreign dignitaries or organizations; and prosecution of offenders and administration of the
correctional system; implement the laws on the
(5) Perform such other appropriate functions as may admission and stay of aliens, citizenship, land titling
be assigned by the Secretary or Undersecretary for system, and settlement of land problems involving small
International Finance. landowners and members of indigenous cultural
SECTION 39. Administrative Staff . — The minorities; and provide free legal services to indigent
Undersecretary for International Finance shall be directly members of the society.
assisted by a Finance Attache Division andAdministrative SECTION 2. Mandate. — The Department shall carry
Staff. out the policy declared in the preceding section.
SECTION 3. Powers and Functions. — To accomplish
CHAPTER 5 Regional Offices its mandate, the Department shall have the following
SECTION 40. Regional Offices. — There shall be a powers and functions:
Regional Office in each region. Each Regional Office shall (1) Act as principal law agency of the government and
be headed by a Regional Director. as legal counsel and representative thereof, whenever so
A Regional Office shall have, within its administrative required;
region, the following functions: (2) Investigate the commission of crimes, prosecute
(1) Implement laws, rules and regulations, policies, offenders and administer the probation and correction
plans, programs and projects of the Department; system;
(2) Provide efficient and effective services to the (3) Extend free legal assistance/representation to
people; indigents and poor litigants in criminal cases and
non-commercial civil disputes;
(3) Coordinate with regional offices of other
departments, offices and agencies in the region; (4) Preserve the integrity of land titles through proper
registration;
(4) Coordinate with local government units; and
(5) Investigate and arbitrate untitled land disputes
(5) Perform such other functions as may be provided involving small landowners and members of indigenous
by law. cultural communities;
SECTION 41. DOF-RACO. — For purposes of achieving (6) Provide immigration and naturalization regulatory
maximum utilization of resources, management services and implement the laws governing citizenship
coordination and administrative integration at the and the admission and stay of aliens;
regional levels, there is hereby created a Department of
Finance Regional Administrative Coordination Office (7) Provide legal services to the national government
(DOF-RACO) in each of the administrative regions of the and its functionaries, including government-owned or
country, to be headed by a Regional Executive Director controlled corporations and their subsidiaries; and
who shall report directly to the Undersecretary for


(8) Perform such other functions as may be provided (2) Implement the provisions of laws, executive orders
by law. and rules, and carry out the policies, plans, programs and
SECTION 4. Organizational Structure. — The projects of the Department relative to the investigation
Department shall consist of the following constituent and prosecution of criminal cases;
units: (3) Assist the Secretary in exercising supervision and
(1) Department Proper; control over the National Prosecution Service as
constituted under P.D. No. 1275 and/or otherwise
(2) Office of the Government Corporate Counsel; hereinafter provided; and
(4) Public Attorney's Office (as an attached agency); (4) Perform such other functions as may be provided
(5) Board of Pardons and Parole; by law or assigned by the Secretary.
(6) Parole and Probation Administration; SECTION 9. Provincial/City Prosecution Offices. —
The Provincial and City Fiscal's Office established in each
(7) Bureau of Corrections; of the provinces and cities pursuant to law, is retained
(8) Land Registration Authority; and renamed Provincial/City Prosecution Office. It shall
be headed by a Provincial Prosecutor or City Prosecutor,
(9) Bureau of Immigration; and as the case may be, assisted by such number of Assistant
(10) Commission on the Settlement of Land Problems. Provincial/City Prosecutors as fixed and/or authorized by
(as amended by Republic Act No. 9406, [March 23, law. The position titles of Provincial and City Fiscal and of
2007]) Assistant Provincial and City Fiscal are hereby abolished.
All provincial/city prosecution offices shall continue to
CHAPTER 2 Department Proper discharge their functions under existing law.
SECTION 5. The Department Proper. — The All provincial and city prosecutors and their assistants
Department Proper shall be composed of the Office of shall be appointed by the President upon the
the Secretary and the Undersecretaries, Technical and recommendation of the Secretary.
Administrative Service, Financial Management Service,
Legal Staff and the Office of the Chief State Prosecutor. CHAPTER 3 Office of the Government Corporate Counsel
SECTION 6. Undersecretaries. — The Secretary shall SECTION 10. Office of the Government Corporate
be assisted by three (3) Undersecretaries. The Secretary is Counsel. — The Office of the Government Corporate
hereby authorized to delineate and assign the respective Counsel (OGCC) shall act as the principal law office of all
functional areas of responsibility of the Undersecretaries, government-owned or controlled corporations, their
provided, that such responsibility shall be with respect to subsidiaries, other corporate offsprings and government
the mandate and objectives of the Department; and acquired asset corporations and shall exercise control and
provided, further, that no Undersecretary shall be supervision over all legal departments or divisions
assigned primarily administrative responsibilities. Within maintained separately and such powers and functions as
his functional area of responsibility, an Undersecretary are now or may hereafter be provided by law. In the
shall have the following functions: exercise of such control and supervision, the Government
(1) Advise and assist the Secretary in the formulation Corporate Counsel shall promulgate rules and regulations
and implementation of the Department's policies, plans, to effectively implement the objectives of the Office.
programs and projects; The OGCC is authorized to receive the attorney's fees
(2) Oversee the operational activities of the adjudged in favor of their client government-owned or
Department; controlled corporations, their subsidiaries, other corporate
(3) Coordinate the programs and projects of the offsprings and government acquired asset corporations.
Department for efficient and effective administration; These attorney's fees shall accrue to a special fund of the
OGCC, and shall be deposited in an authorized
(4) Serve as deputy for the Secretary; government depository as a trust liability and shall be
(5) Perform, when so designated, the powers and made available for expenditure without the need for a
functions of the Secretary, during the latter's absence or Cash Disbursement Ceiling, for purposes of upgrading
incapacity; and facilities and equipment, granting of employees'
incentive pay and other benefits, and defraying such
(6) Perform such other functions as may be provided other incentive expenses not provided for in the General
by law or assigned by the Secretary to promote efficiency Appropriations Act as may be determined by the
and effectiveness in the delivery of frontline services. Government Corporate Counsel.
SECTION 7. Legal Staff . — The Legal Staff shall have
the following functions:
CHAPTER 4 National Bureau of Investigation
(1) Assist the Secretary in the performance of his duties
SECTION 11. National Bureau of Investigation. — The
as Attorney General of the Philippines and as ex-officio
National Bureau of Investigation (NBI) with all its duly
legal adviser of government-owned or controlled
authorized constituent units including its regional and
corporations or enterprises and their subsidiaries;
district offices and rehabilitation centers, shall continue to
(2) Prepare and finally act for and in behalf of the perform the powers and functions as are now vested in it
Secretary on all queries and/or requests for legal advice or under the existing law and such additional functions as
guidance coming from private parties, and minor officials may hereafter be provided by law.
and employees of the government;
SECTION 12. The NBI Director and Other Officials. —
(3) Maintain and supervise the operation of the The NBI shall be headed by a Director assisted by an
Department Law Library as well as its personnel; and Assistant Director and five (5) Deputy Directors, for
(4) Perform such other functions as are now or may Intelligence, Investigation, Technical, Administrative and
hereafter be provided by law or assigned by the Secretary. Comptroller Services, respectively.
SECTION 8. Office of the Chief State Prosecutor. — The NBI is also authorized to continue the operation
The Office of the Chief State Prosecutor shall have the and maintenance of a Regional Office in each of the
following functions: twelve (12) administrative regions of the country, to be
headed by a Regional Director and assisted by an
(1) Assist the Secretary in the performance of powers Assistant Regional Director.
and functions of the Department relative to its role as the
prosecution arm of the government; SECTION 13. Internal Organization and Assignment
of Personnel. — Subject to prior approval of the Secretary



and to the limitations prescribed in the General The Chief Public Attorney shall have the same
Appropriations Act for personnel services expenditures in qualifications for appointment, rank, salaries, allowances,
the NBI, the NBI director may be authorized to determine and retirement privileges as those of the Chief State
the internal organization of the constituent units of the Prosecutor of the National Prosecution Service. The
Bureau including the composition and size thereof and Deputy Chief Public Attorneys shall have the same
the number, classes and level of positions (below the rank qualifications for appointment, rank, salaries, allowances,
of presidential appointees) to be assigned or allocated and retirement privileges as those of the Assistant Chief
thereto. State Prosecutor of the National Prosecution Service.
The services herein created shall each be headed by a
CHAPTER 5 Public Attorney's Office staff director who shall have the same qualifications for
appointment, rank, salaries, allowances and privileges as
SECTION 14. Public Attorney's Office (PAO). — The those of staff director of the National Prosecution Service.
Citizen's Legal Assistance Office (CLAO) is renamed
Public Attorney's Office (PAO). It shall exercise the powers Each of the PAO Regional Offices shall be headed by a
and functions as are now provided by law for the Citizen's Regional Public Attorney who shall be assisted by an
Legal Assistance Office or may hereafter be provided by Assistant Regional Public Attorney. The regional offices
law. shall have such provincial, city and municipal district
offices as may be necessary.
The PAO shall be an independent and autonomous
office, but attached to the Department of Justice in The Regional Public Attorney and the Assistant
accordance with Section 38(3), Chapter 7 of Book IV of Regional Public Attorney shall have the same
this Code for purposes of policy and program qualifications for appointment, rank, salaries, allowances,
coordination. and retirement privileges as those of a Regional State
Prosecutor and the Assistant Regional State Prosecutor of
The PAO shall be the principal law office of the the National Prosecution Service, respectively.
Government in extending free legal assistance to
indigent persons in criminal, civil, labor, administrative The Provincial Public Attorney, City Public Attorney
and other quasi-judicial cases. (as amended by Republic and the Municipal District Public Attorney shall have the
Act No. 9406, [March 23, 2007]) same qualifications for appointment, rank, salaries,
allowances and retirement privileges as those of a
SECTION 14-A. Powers and Functions. — The PAO Provincial Prosecutor and City Prosecutor as the case may
shall independently discharge its mandate to render, free be, of the National Prosecution Service, respectively.
of charge, legal representation, assistance, and
counselling to indigent persons in criminal, civil, labor, The other administrative personnel in the PAO shall
administrative and other quasi-judicial cases. In the have the rank and salaries equivalent to their counterpart
exigency of the service, the PAO may be called upon by in the National Prosecution Service. (as amended by
proper government authorities to render such service to Republic Act No. 9406, [March 23, 2007])
other persons, subject to existing laws, rules and SECTION 16-A. Appointment. — The Chief Public
regulations. (as amended by Republic Act No. 9406, Attorney and the Deputy Chief Public Attorneys shall be
[March 23, 2007]) appointed by the President. The Deputy Chief Public
SECTION 15. Organizational Structure. — The PAO Attorneys and Regional Public Attorneys shall be
shall consist of the following constituent units: appointed by the President upon the recommendation of
the Chief Public Attorney. The Chief Public Attorney,
(1) Office of the Chief Public Attorney and two (2) Deputy Chief Public Attorneys and Regional Public
Deputy Chief Public Attorneys to serve as a 'Deputy Chief Attorneys shall not be removed or suspended, except for
Public Attorney for Administration' and placed in charge cause provided by law: Provided, That the Deputy Chief
of three divisions, namely: Administrative; Financial Public Attorneys, the Regional Public Attorneys and the
Planning and Management; and Executive Division, while Assistant Regional Public Attorneys, the Provincial Public
the other to serve as 'Deputy Chief Public Attorney for Attorneys, the City Public Attorneys, and the Municipal
Operations' and shall be responsible for special and District Public Attorneys shall preferably have served as
appealed cases; legal research; and field services and Public Attorneys for at least five (5) years immediately
statistics upon the designation by the Chief Public prior to their appointment as such. The administrative
Attorney. One of the deputies shall be designated as and support personnel and other lawyers in the Public
Deputy Chief Public Attorney for Luzon and the other Attorney's Office shall be appointed by the Chief Public
Deputy Chief Public Attorney for Visayas and Mindanao. Attorney, in accordance with civil service laws, rules and
(2) Six (6) line divisions in the Central Office, namely: regulations.
Administrative; Financial Planning and Management; SECTION 16-B. Vacancy of Office. — In case of death,
Special and Appealed Cases; Legal Research and permanent incapacity, removal or resignation of the
Statistics; Field Services and Statistics; and Executive incumbent Chief Public Attorney, Deputy Chief Public
Divisions. Attorneys or Regional Public Attorneys or vacancy
(3) Regional, Provincial, City and Municipal District thereof, the President shall appoint a new Chief, Deputy
Offices. (as amended by Republic Act No. 9406, [March Chief or Regional Public Attorney or shall designate one,
23, 2007]) as the case may be, in an acting capacity until a new one
shall have been appointed.
SECTION 16. The Chief Public Attorney and Other
PAO Officials. — The PAO shall be headed by a Chief In case of temporary absence of the Chief Public
Public Attorney and shall be assisted by two (2) Deputy Attorney, the latter may designate an Officer-in-Charge to
Chief Public Attorneys. Each PAO Regional Office be a caretaker of the Office.
established in each of the administrative regions of the SECTION 16-C. Incumbent Officials and Personnel. —
country shall be headed by a Regional Public Attorney The incumbent officials and personnel of the Public
who shall be assisted by an Assistant Regional Public Attorney's Office shall continue holding his/her position
Attorney. The authority and responsibility for the exercise without the need of new appointment.
of the mandate of the PAO and for the discharge of its
powers and functions shall be vested in the Chief Public SECTION 16-D. Exemption from Fees and Costs of the
Attorney. Suit. — The clients of the PAO shall be exempt from
payment of docket and other fees incidental to instituting
The Office of the Chief Public Attorney shall include an action in court and other quasi-judicial bodies, as an
his/her immediate staff, the six (6) line divisions in the original proceeding or on appeal.
Central Office, the Deputy Chief Public Attorneys and the
Regional, Provincial, City and Municipal District Offices. The costs of the suit, attorney's fees and contingent
fees imposed upon the adversary of the PAO clients after



a successful litigation shall be deposited in the National report involving any application for parole, pardon or any
Treasury as trust fund and shall be disbursed for special request for executive clemency for appropriate action by
allowances of authorized officials and lawyers of the PAO. the Board.
SECTION 16-E. Local Government Support. — Local SECTION 21. Board Rules and Regulations. — The
government units, subject to their capabilities, are Board is hereby authorized to establish and prescribe,
authorized to extend financial and other support in the subject to the approval of the Secretary, rules and
form of honoraria, free office space, equipment, furniture, regulations to govern the proceedings of the Board.
stationery, and manpower to the PAO. SECTION 22. Indeterminate Sentence Law. — The
SECTION 16-F. Franking Privilege. — The PAO may provisions of Act No. 4103, otherwise known as the
transmit through ordinary mail and/or registered mail Indeterminate Sentence Law, as amended, shall continue
with return card, free of charge, all official to apply except as otherwise amended, modified or
communications and papers directly connected with the repealed by this Code.
conduct of its duties, functions and/or its exercise of
administrative supervision over its personnel.
CHAPTER 7 Parole and Probation Administration
The envelope or wrapper of the privileged mail matter
shall bear on the left upper corner 'Public Attorney's SECTION 23. Parole and Probation Administration. —
Office' together with its address and on the right upper The Parole and Probation Administration hereinafter
corner, the word 'Private or unauthorized use to avoid referred to as the Administration shall have the following
payment of postage is penalized by fine or imprisonment functions:
or both. (as created by Republic Act No. 9406, [March (1) Administer the parole and probation system;
23, 2007])
(2) Exercise general supervision over all parolees, and
probationers;
(3) Promote the correction and rehabilitation of
CHAPTER 6 Board of Pardons and Parole offenders; and
SECTION 17. Board of Pardons and Parole. — The (4) Such other function as may hereafter be provided
Board of Pardons and Parole shall continue to discharge by law.
the powers and functions as provided in existing law and SECTION 24. Structural and Personnel Organization.
such additional functions as may be provided by law. — (1) The Administration shall be headed by an
SECTION 18. Board Composition. — The Board shall be Administrator who shall be immediately assisted by a
composed of the Secretary as Chairman and six (6) Deputy Administrator. The Administrator and Deputy
members consisting of: The Administrator of the Parole Administrator shall be appointed by the President upon
and Probation Administration as ex-officio member, a the recommendation of the Secretary.
sociologist, a clergyman, an educator, a person with The appointees to the positions of Administrator and
training and experience in correction work, and a Deputy Administrator must be holders of a
member of the Philippine Bar; Provided, that one of them doctoral/masteral degree in public administration and/or
is a woman. The members of the Board shall be lawyers with at least one year of supervisory experience in
appointed by the President upon the recommendation of probation work.
the Secretary and shall hold office for a term of six (6)
years, without prejudice to reappointment. (2) The Administration shall have a Technical Service
under the Office of the Administrator which shall serve as
In case of vacancy by reason of death, incapacity, the service arm of the Board of Pardons and Parole in the
resignation or removal of any of the Board members, the supervision of parolees and pardonees.
Secretary shall have the authority to designate a
temporary member possessing the qualifications of his The Board and the Administration shall jointly
predecessor and to serve out his unexpired term or until determine the staff complement of the Technical Service.
the President shall have appointed a regular member to (3) The Administration shall likewise continue to
fill the vacancy. operate and maintain a Regional Office in each of the
SECTION 19. Executive Director and Board Secretary; administrative regions including the National Capital
Support Staff . — In the performance of his duties as Region and also a probation and parole office in every
Chairman of the Board of Pardons and Parole, the province and city of the country.
Secretary shall be assisted by a staff headed by the The Regional, Provincial and City Offices of the
Executive Director who is at the same time the Secretary Administration shall each be headed by a Regional
of the Board. The Executive Director shall be appointed by Probation and Parole Officer, Provincial/City Probation
the President upon the recommendation of the and Parole Officer, respectively, all of whom shall be
Secretary. The Executive Director shall receive a monthly appointed by the Secretary upon the recommendation of
salary of thirteen thousand five hundred pesos. the Administrator.
The Board Secretary shall prepare and keep the The Provincial or City Probation and Parole Officers
minutes of all the board sessions in a book of records kept shall be assisted by such field assistants and subordinate
for the purpose, as well as all the resolutions and personnel as may be necessary to enable them to carry
recommendations of the Board on all actions involving out their duties and functions. For this purpose, the
parole, pardons and executive clemency to the President; Administrator may appoint citizens of good repute and
authenticate and/or attest all minutes, resolutions and probity to act as Probation and Parole Aides who shall not
recommendations of the Board; prepare and serve all receive any regular compensation for their services
notices of board meetings or sessions to the members of except reasonable travel allowance.
the Board; prepare an annual report of all resolutions and
recommendations for parole or executive clemency and SECTION 25. Applicability of P.D. No. 968, as
other reports that the Department may require. He shall amended. — The Provisions of P.D. 968 otherwise known
also perform such other functions as the Board may from as the Probation Law of 1976 shall continue to govern the
time to time assign to him. operation and management of the Administration
including the enumeration of functions and
SECTION 20. Board Meetings. — The Board shall meet qualifications for appointment of the Administrator,
regularly every week, or as the Board may direct, or upon Deputy Administrators, Regional, Provincial and City
call by the Chairman/Secretary. The members shall act Probation Officers and their assistants and other
only as a Board, and every decision of the majority shall subordinate personnel not inconsistent with this title.
be valid as an act of the Board provided, that the Board
may direct a Board member to prepare and submit a



Boards of Special Inquiry, including the determination of
CHAPTER 8 Bureau of Corrections the size and number of the support staff to be assigned
thereat.
SECTION 26. Bureau of Corrections. — The Bureau of
Corrections shall have its principal task the rehabilitation The Bureau shall be headed by a Commissioner
of prisoners. The Bureau of Corrections shall exercise such assisted by two Associate Commissioners, all of whom
powers and functions as are now provided for the Bureau shall be appointed by the President upon the
of Prisons or may hereafter be provided by law. recommendation of the Secretary.
SECTION 27. Structural and Personnel Organization. The Commissioner and the two Associate
— The Bureau of Corrections shall be headed by a Commissioners shall compose the Board of
Director who shall be assisted by two (2) Assistant Commissioners, a collegial body hereby granted exclusive
Directors, one for Administration and Rehabilitation and jurisdiction over all deportation cases. The Board shall
one for Prisons and Security. The Director and Assistant also have appellate jurisdiction over decisions of the
Directors of the Bureau shall be appointed by the Boards of Special Inquiry and shall perform such other
President upon recommendation of the Secretary. functions as may be provided by law.
The Bureau shall carry out its functions through its Each Board of Special Inquiry shall be composed of a
divisions and its seven (7) Penal institutions namely — Chairman and two members who shall be appointed by
New Bilibid Prisons, Correctional Institution for Women, the Secretary upon the recommendation of the
Iwahig, Davao, San Ramon and Sablayan Prisons and Commissioner.
Penal Farms and the Leyte Regional Prisons. Likewise, the appointment of all the other personnel of
the Bureau including the designation of Acting
CHAPTER 9 Land Registration Authority Immigration Officers shall be vested in the Secretary
upon the recommendation of the Commissioner.
SECTION 28. The Land Registration Authority. — The
Land Registration Authority, hereinafter referred to as the
Authority shall continue to exercise its powers and CHAPTER 11 Commission on the Settlement of Land
functions under existing law on the Land Titles and Problems
Deeds Registration Authority and those which may SECTION 32. Commission on the Settlement of Land
hereafter be provided by law. Problems. — The Commission on the Settlement of Land
SECTION 29. Organizational Structure. — The Problems shall be responsible for the settlement of land
Authority shall be headed by an Administrator who shall problems involving small landowners and members of
be assisted by two (2) Deputy Administrators, all of whom cultural minorities. It shall also perform such other
shall be appointed by the President upon the functions, as are now or may hereafter be provided by
recommendation of the Secretary. law.
SECTION 30. Reorganization of Registry Offices in SECTION 33. Structure and Personnel Organization.
the National Capital Region. — The Registries of Deeds — The Commission, as a collegial body, shall be
in the National Capital Region is hereby reorganized as composed of the Commissioner and two Associate
follows: Commissioners. For administrative purposes, the
Commissioner shall be the head of the Commission and
(1) The Registries of Deeds in the cities of Manila,
the two Associate Commissioners shall be his immediate
Quezon, Pasay and Caloocan shall be maintained;
assistants.
(2) There is hereby created Registries of Deeds in the
The Commissioner and the two Associate
Municipalities of Navotas, Malabon, Valenzuela,
Commissioners shall be appointed by the President upon
Mandaluyong, San Juan, Marikina, Las Piñas and
the recommendation of the Secretary. They shall have the
Parañaque with jurisdiction over their respective
same qualifications for appointment and receive a salary,
municipalities;
retirement benefits, longevity pay and other privileges
(3) The Registry of Deeds of Pasig shall be maintained equivalent to that of an Associate Justice of the Court of
with jurisdiction over the Municipalities of Pasig, Taguig Appeals and a Judge of the Regional Trial Court,
and Pateros; and respectively, as provided in E.O. No. 561.
(4) The Registry of Deeds of Makati shall have The Commission shall have a technical staff which
jurisdiction over the municipalities of Makati and shall be headed by an Executive Director and assisted by
Muntinlupa. a Deputy Executive Director who shall both be appointed
by the President upon the recommendation of the
Secretary. All the other members of the technical staff
CHAPTER 10 Bureau of Immigration shall be appointed by the Secretary upon the
SECTION 31. Bureau of Immigration. — The Bureau of recommendation of the Commissioner.
Immigration is principally responsible for the When conditions in any province so warrant, the
administration and enforcement of immigration, Commission may, subject to the approval of the
citizenship and alien admission and registration laws in Secretary, establish a regional and provincial offices
accordance with the provisions of the Philippine thereat which shall exercise such powers and perform
Immigration Act of 1940, as amended (C.A. No. 613, as such functions as may be assigned to it by the
amended). The following units shall comprise the Commission.
structural organization of the Bureau:
(1) Office of the Commissioner and Associate
Commissioners; CHAPTER 12 Office of the Solicitor General
(2) Board of Commissioners — composed of the SECTION 34. Organizational Structure. — The Office
Commissioner as Chairman and two (2) Associate of the Solicitor General shall be an independent and
Commissioners as members; and autonomous office attached to the Department of
Justice.
(3) Boards of Special Inquiry which are authorized to
be organized in the Commission pursuant to the The Office of the Solicitor General shall be headed by
provisions of the Immigration Act of 1940, as amended. the Solicitor General, who is the principal law officer and
legal defender of the Government. He shall have the
Subject to the provisions of existing law, the Secretary authority and responsibility for the exercise of the Office's
is hereby authorized to review, revise and/or promulgate mandate and for the discharge of its duties and
new rules and regulations to govern the conduct of
proceedings in the Board of Commissioners and the



functions, and shall have supervision and control over the (9) Call on any department, bureau, office, agency or
Office and its constituent units. instrumentality of the Government for such service,
The Solicitor General shall be assisted by a Legal Staff assistance and cooperation as may be necessary in
composed of fifteen (15) Assistant Solicitors General, and fulfilling its functions and responsibilities and for this
such number of Solicitors and Trial Attorneys as may be purpose enlist the services of any government official or
necessary to operate the Office, which shall be divided employee in the pursuit of his tasks.
into fifteen (15) divisions: Provided, That the Solicitor Departments, bureaus, agencies, offices,
General may assign or transfer the Assistant Solicitors instrumentalities and corporations to whom the Office of
General, Solicitors or Trial Attorneys to any of the divisions. the Solicitor General renders legal services are authorized
SECTION 35. Powers and Functions. — The Office of to disburse funds from their sundry operating and other
the Solicitor General shall represent the Government of funds for the latter Office. For this purpose, the Solicitor
the Philippines, its agencies and instrumentalities and its General and his staff are specifically authorized to receive
officials and agents in any litigation, proceeding, allowances as may be provided by the Government
investigation or matter requiring the services of a lawyer. offices, instrumentalities and corporations concerned, in
When authorized by the President or head of the office addition to their regular compensation.
concerned, it shall also represent government-owned or (10) Represent, upon the instructions of the President,
controlled corporations. The Office of the Solicitor General the Republic of the Philippines in international litigations,
shall constitute the law office of the Government and, as negotiations or conferences where the legal position of
such, shall discharge duties requiring the services of a the Republic must be defended or presented.
lawyer. It shall have the following specific powers and (11) Act and represent the Republic and/or the people
functions: before any court, tribunal, body or commission in any
(1) Represent the Government in the Supreme Court matter, action or proceeding which, in his opinion, affects
and the Court of Appeals in all criminal proceedings; the welfare of the people as the ends of justice may
represent the Government and its officers in the require; and
Supreme Court, the Court of Appeals, and all other courts (12) Perform such other functions as may be provided
or tribunals in all civil actions and special proceedings in by law.
which the Government or any officer thereof in his official
capacity is a party. SECTION 36. Appointments. — The Solicitor General
shall be appointed by the President and shall have the
(2) Investigate, initiate court action, or in any manner same qualification for appointment, rank, prerogatives,
proceed against any person, corporation or firm for the and privileges as those of the Presiding Justice of the
enforcement of any contract, bond, guarantee, mortgage, Court of Appeals.
pledge or other collateral executed in favor of the
Government. Where proceedings are to be conducted The Assistant Solicitors General and the Solicitors shall
outside of the Philippines the Solicitor General may be appointed by the President upon recommendation of
employ counsel to assist in the discharge of the the Solicitor General. The Trial Attorneys
aforementioned responsibilities. andadministrative personnel in the Office of the Solicitor
General shall be appointed by the Solicitor General.
(3) Appear in any court in any action involving the
validity of any treaty, law, executive order or proclamation, SECTION 37. Acting Solicitor General. — In case of
rule or regulation when in his judgment his intervention absence or temporary incapacity of the Solicitor General,
is necessary or when requested by the Court. the President shall designate an Acting Solicitor General.
In case of death, permanent incapacity, removal or
(4) Appear in all proceedings involving the acquisition resignation of the Solicitor General, or vacancy thereof,
or loss of Philippine citizenship. the President shall designate an Acting Solicitor General,
(5) Represent the Government in all land registration who shall act as such until a new Solicitor General is
and related proceedings. Institute actions for the appointed, or appoint a new Solicitor General.
reversion to the Government of lands of the public
domain and improvements thereon as well as lands held
in violation of the Constitution. TITLE IV Agriculture
(6) Prepare, upon request of the President or other
proper officer of the National Government, rules and CHAPTER 1 General Provisions
guidelines for government entities governing the
preparation of contracts, making of investments, SECTION 1. Declaration of Policy. — The State shall
undertaking of transactions, and drafting of forms or promote the well-being of farmers, including share
other writings needed for official use, with the end in tenants, leaseholders, settlers, fishermen, and other rural
view of facilitating their enforcement and insuring that workers by providing an environment in which they can
they are entered into or prepared conformably with law increase their income, improve their living conditions,
and for the best interests of the public. and maximize their contributions to the national
economy. Toward this end, the State shall accelerate
(7) Deputize, whenever in the opinion of the Solicitor agricultural development and enhance the production of
General the public interest requires, any provincial or city agricultural crops, fisheries, and livestock by optimizing
fiscal to assist him in the performance of any function or the use of resources and by applying modern farming
discharge of any duty incumbent upon him, within the systems and technology in order to attain food security
jurisdiction of the aforesaid provincial or city fiscal. When for domestic use and expand and diversify agricultural
so deputized, the fiscal shall be under the control and production for export. It shall also encourage private
supervision of the Solicitor General with regard to the initiative in agri-business ventures both in the production
conduct of the proceedings assigned to the fiscal, and he and in the exportation and importation of food and other
may be required to render reports or furnish information allied commodities.
regarding the assignment.
SECTION 2. Mandate. — The Department is the
(8) Deputize legal officers of government government agency responsible for the promotion of
departments, bureaus, agencies and offices to assist the agricultural development by providing the policy
Solicitor General and appear or represent the framework, public investments, and support services
Government in cases involving their respective offices, needed for domestic and export-oriented business
brought before the courts, and exercise supervision and enterprises.
control over such legal Officers with respect to such
cases. In the fulfillment of this mandate, it shall be the
primary concern of the Department to improve farm
income and generate work opportunities for farmers,



fishermen, and other rural workers. It shall encourage SECTION 7. Undersecretaries. — The Undersecretaries
people's participation in agricultural development shall assist the Secretary in the exercise of the mandate
through sectoral representation in agricultural and in the discharge of the powers and functions of the
policy-making bodies so that the policies, plans, and Department.
programs of the Department are formulated and The five (5) Undersecretaries shall be assigned the
executed to satisfy their needs. following functions:
It shall ensure social justice, equity, productivity and (1) The Undersecretary assigned to Regional
sustainability in the use of agricultural resources. Operations shall oversee the implementation of the
SECTION 3. Powers and Functions. — The agricultural plans, policies, programs, and projects of the
Department shall: regional and field offices of the Department;
(1) Provide integrated services to farmers, fishermen, (2) The Undersecretary assigned to Staff Operations
and other food producers on production, utilization, shall provide staff support services, particularly in
conservation, and disposition of agricultural and fishery administration and finance, production, research,
resources; training, and extension;
(2) Be responsible for the planning, formulation, (3) The Undersecretary assigned to Policy and
execution, regulation, and monitoring of programs and Planning shall provide policy and planning support
activities relating to agriculture, food production and services, particularly in policy-formulation, planning, and
supply; agri-business;
(3) Promulgate and enforce all laws, rules and (4) The Undersecretary assigned to Attached Agencies
regulations governing the conservation and proper shall exercise supervision over the attached agencies to
utilization of agricultural and fishery resources; ensure that their operations are in conformity with the
(4) Establish central and regional information systems approved plans and policies of the Department;
to serve the production, marketing, and financing data (5) The Undersecretary assigned to Special Concerns
requirements of the farmers as well as domestic and shall develop and implement agricultural policies and
foreign investors in agri-business ventures; priority projects aimed at improving the quality of life of
(5) Provide comprehensive and effective extension disadvantaged and cultural community groups living in
services and training to farmers and other agricultural lowland and upland areas. In addition, he shall handle
entrepreneurs on the production, marketing, and other special projects as may be identified or directed by
financing aspects of agricultural enterprises; the Department Secretary.
(6) Conduct, coordinate, and disseminate research SECTION 8. Functions of the Undersecretaries. —
studies on appropriate technologies for the improvement With respect to his area of responsibility, an
and development of agricultural crops, fisheries, and Undersecretary shall have the following functions:
other allied commodities; (1) Advise the Secretary in the promulgation of orders
(7) Provide the mechanism for the participation of and other issuances, with respect to his area of
farmers, fishermen, and entrepreneurs at all levels of responsibility;
policy-making, planning and program formulation; (2) Exercise supervision and control over the offices,
(8) Coordinate with and enlist other public and private services, operating units, and officers and employees
agencies for cooperation and assistance on matters under his responsibility;
affecting the policies, plans and programs of the (3) Promulgate rules and regulations, consistent with
Department; the policies of the Department that will efficiently and
(9) Perform such other functions as may be provided effectively govern the activities of the units under his
by law. responsibility;
SECTION 4. Organizational Structure. — The (4) Coordinate the functions and activities of the units
Department shall consist of the Department Proper, the under his responsibility with those of other units under
Bureaus, and the Regional, Provincial, Municipal, and the responsibility of the other Undersecretaries;
Barangay Offices. (5) Exercise delegated authority on matters related to
The Department Proper shall consist of the Office of the functions and activities of the units under his
the Secretary, the Offices of the Undersecretaries and responsibility to the extent granted by the Secretary; and
Assistant Secretaries and their immediate staffs as (6) Perform such other functions as may be provided
determined by them respectively, and the Department by law or assigned by the Secretary.
Services. SECTION 9. Functions of the Assistant Secretaries. —
The Department Services and Bureaus shall be Each of the seven (7) Assistant Secretaries shall head any
grouped as follows: of the following: Production Group, Agri-Business Group,
(1) Production Group; Research, Training and Extension Group, Planning and
Monitoring Group, Support Group, Foreign-Assisted
(2) Research, Training and Extension Group; Projects and the Regional Operations. In connection
(3) Agri-Business Group; therewith, the Assistant Secretaries shall have the
(4) Planning and Monitoring Group; and
(1) The Assistant Secretary assigned to the Production
(5) Support Group. Group shall be responsible for providing services relating
to planning, programming, and project development of
CHAPTER 2 Department Proper agricultural production. This group shall consist of the
Bureau of Animal Industry, Bureau of Plant Industry,
SECTION 5. Office of the Secretary. — The Office of Bureau of Fisheries and Aquatic Resources, and Bureau of
the Secretary shall consist of the Secretary and his Soils and Water Management;
immediate staff as determined by him.
(2) The Assistant Secretary assigned to the
SECTION 6. Assistants to the Secretary. — The Agri-Business Group shall be responsible for assisting
Secretary shall be assisted by five (5) Undersecretaries, farmers and other agri-business ventures by providing
seven (7) Assistant Secretaries, and the heads of the marketing assistance and investment information. This
National Food Authority and the Philippine Coconut group shall consist of the Marketing Assistance Services
Authority who shall have the rank of Undersecretaries. and the Agri-Business Investment Information Services;


(3) The Assistant Secretary assigned to the Research, SECTION 16. Marketing Assistance Service. — The
Training and Extension Group shall be responsible for Marketing Assistance Service shall be responsible for
conducting research and training as well as providing identifying markets for Philippine agricultural products
assistance in the establishment of agricultural and shall assist in the planning of market centers,
cooperatives. This group shall be composed of the Bureau marketing channels, and distribution networks.
of Agricultural Research (BAR), Agricultural Training SECTION 17. Department Services Head. — Each of
Institute (ATI), and Bureau of Agricultural Cooperatives the Services of the Department shall be headed by a Staff
Development (BACOD); Director.
(4) The Assistant Secretary assigned to the Planning
and Monitoring Group shall take charge of developing,
integrating, monitoring and evaluating all plans and CHAPTER 4 Bureaus and Offices
programs of the Department and shall collect, monitor, SECTION 18. Bureau of Animal Industry. — The
and publish agricultural statistics for the Department and Bureau of Animal Industry shall:
its clientele. This group shall be composed of the
(1) Formulate programs for the development and
Planning and Monitoring Services, Computer Services,
expansion of the livestock, poultry, and dairy industries to
and Bureau of Agricultural Statistics;
meet the requirements of the growing populace;
(5) The Assistant Secretary assigned to the Support
(2) Recommend the specific policies and procedures
Group shall take charge of providing staff support
governing the flow of livestock products through the
services in finance, administration, and management.
various stages of marketing, as well as the proper
This shall be composed of the Financial and Management
preservation and inspection of such products;
Services, the Legal Services, and the Administrative
Services; (3) Coordinate and monitor the activities and projects
relating to livestock and allied industries;
(6) The Assistant Secretary assigned to the
Foreign-Assisted Projects shall be responsible for the (4) Prescribe standards for quality in the manufacture,
negotiation and implementation of foreign-assisted importation, labelling, advertising, distribution, and sale
projects of the Department; of livestock, poultry, and allied industries; and
(7) The Assistant Secretary assigned to Regional (5) For its own sector, recommend plans, programs,
Operations shall assist the Undersecretary for Regional policies, rules and regulations to the Secretary and
Operations in the supervision of regional offices including provide technical assistance in the implementation of the
the coordination and implementation of Department same.
plans, policies and programs. SECTION 19. Bureau of Plant Industry. — The Bureau
The seven (7) Assistant Secretaries shall, in addition to of Plant Industry shall:
the abovementioned duties, perform such other (1) Be responsible for the production of improved
functions as may be assigned by the Secretary. They may planting materials, protection of agricultural crops from
also be assigned or placed under the supervision of the pests and diseases, and development and improvement
Undersecretaries at the discretion of the Secretary. of farm equipment and other structures related to the
plant industry;
CHAPTER 3 Department Services (2) Prepare a program for the selection, production
SECTION 10. Planning and Monitoring Service. — The and certification of improved planting materials as well as
Planning and Monitoring Service shall be responsible for guidelines for its implementation;
the formulation and integration of plans and programs, (3) Recommend plant quarantine policies, and
emanating from all units of the Department, including prescribe rules and regulations for the prevention,
the Bureaus, Regional Offices and Attached Agencies. It control, and eradication of pests, diseases, and injuries to
shall also be responsible for data analysis and monitoring plants and plant products; and
of the implementation of said plans and programs
through its management information system. (4) For its own sector, recommend plans, programs,
policies, rules and regulations to the Secretary and
SECTION 11. Computer Service. — The Computer provide technical assistance in the implementation of the
Service shall be responsible for the development and same.
maintenance of the electronic data processing
requirements of the Department. SECTION 20. Bureau of Fisheries and Aquatic
Resources. — The Bureau of Fisheries and Aquatic
SECTION 12. Financial and Management Service. — Resources shall:
The Financial and Management Service shall provide
services relating to budgeting, accounting, and (1) Formulate plans for the proper management,
management. accelerated development, and proper utilization of the
country's fishery and aquatic resources;
SECTION 13. Administrative Service. — The
Administrative Service shall be responsible for providing (2) Undertake studies on the economics of the various
personnel, records, information, training and other phases of the fishing industry, which studies shall form
general services. the bases for the formulation of policies and programs on
fisheries and aquatic resources;
SECTION 14. Legal Service. — The Legal Service shall
handle the legal requirements including those pertaining (3) Render technical assistance and advisory services
to the quasi-judicial and regulatory functions of the in the proper procurement, construction and operation of
Department Proper and its Bureaus. the fishing vessels as well as determination and
designation of fish landing points for all commercial
SECTION 15. Agri-business Investment Information fishing boats; and
Service. — The Agri-business Investment Information
Service shall conduct research, gather and collate data (4) For its own sector, recommend plans, programs,
related to agri-business such as laws and regulations, policies, rules and regulations to the Secretary and
taxation, production technologies, market strategies, provide technical assistance in the implementation of the
competition, foreign assistance, grants, credit, and new same.
venture considerations relating to agri-business and shall SECTION 21. Bureau of Soils and Water
package information on agri-business investment Management. — The Bureau of Soils and Water
opportunities and provide sample feasibility studies for Management shall:
different agricultural products and markets.


(1) Advise and render assistance on matters relative to Regional Office shall have, within its administrative
the utilization and management of soils and water as vital regions, the following duties and responsibilities:
agricultural resources; (1) Provide efficient and effective frontline services to
(2) Formulate measures and guidelines for effective the people;
soil, land, and water resource utilization, as well as soil (2) Implement and enforce in its area the laws and
conservation in croplands and other agricultural areas; policies, plans, programs, projects, rules, and regulations
(3) Undertake soil research programs; issued by the Department including plant and animal
(4) Coordinate with the relevant government agencies quarantine laws, rules and regulations;
in resettlement areas and prepare the necessary plans for (3) Coordinate with regional offices of other
the provision of technical assistance in solving soil departments, offices and agencies in the region;
impounding and the prevention of soil erosion, fertility (4) Coordinate with local government units; and
preservation, and other related matters;
(5) Perform such other functions as may be provided
(5) Engage in rainmaking projects for agricultural by law or assigned appropriately by the Secretary.
areas and watersheds to solve the problem of prolonged
droughts and minimize their effects on standing At the provincial level, policies, plans, programs,
agricultural crops; and projects, laws, rules, and regulations of the Department
shall be implemented by the Provincial Agriculture and
(6) For its own sector, recommend plans, programs, Fisheries Officer and, at the municipal and barangay
policies, rules and regulations to the Secretary and levels, by the Municipal Agriculture and Fisheries Office.
provide technical assistance in the implementation of the
same. SECTION 27. Importation of Plants and Plant
Products. — Subject to such special quarantine orders,
SECTION 22. Bureau of Agricultural Research. — The rules and regulations as may be promulgated by the
Bureau of Agricultural Research shall: Secretary of Agriculture upon recommendation of the
(1) Ensure that all agricultural research is coordinated Plant Quarantine Board, it is prohibited to import or
and undertaken for maximum utility to agriculture; introduce into the Philippines, plants, plant products, soil
(2) Tap farmers, farmers' organizations, and research or packing materials of plants capable of harboring plant
institutions, especially the state colleges and universities, pests or being a source or medium of infection or
in the conduct of research for use of the Department and infestation of plants by pests. For purposes of this
its clientele, particularly the farmers, fishermen and other Chapter, the term "plants" shall refer to living plants and
rural workers. any part thereof, while "plant products" shall mean
products derived from plants either in their natural state
SECTION 23. Bureau of Agricultural Cooperatives or processed form.
and Development. — The Bureau of Agricultural
Cooperatives and Development shall: SECTION 28. Importation of Potential Animal Pests.
— The importation of certain species of animals which are
(1) Formulate an integrated system for development liable to become agricultural crop pests and capable of
and evaluation of agricultural cooperatives; causing injury to agricultural crops is hereby prohibited,
(2) Provide advice and assistance in the establishment except in limited quantities for justifiable purposes and
of agricultural cooperatives in the rural communities; and upon written permission from the Regional Director
concerned or other officials of the Department who may
(3) Evolve a program to promote the economic viability be authorized by the Secretary of Agriculture.
of agricultural cooperatives.
SECTION 29. Plants, Plant Products, and Other
The Bureau shall include in its area of responsibility Materials in Transit. — Commodities mentioned under
non-agricultural cooperatives. the next two preceding sections, including food
SECTION 24. Bureau of Agricultural Statistics. — The provisions and ornaments on board carriers that are in
Bureau of Agricultural Statistics shall: transit, shall be required to get a clearance from the Plant
Quarantine Officer assigned at the port concerned.
(1) Be mainly responsible for the collection,
compilation, and official release of agricultural statistics; SECTION 30. Exportation of Plants and Plant
Products. — The Regional Director concerned, the Plant
(2) Exercise technical supervision over data collection Quarantine Officer or other officials of the Department
centers; who may be authorized by the Secretary of Agriculture
(3) Coordinate all agricultural statistics and economic shall cause the inspection and certification of all plants,
research activities of all bureaus, corporations and offices plant products and other related materials for
under the Department. exportation, capable of harboring plant pests, if the
SECTION 25. Agricultural Training Institute. — The importing country so requires.
Agricultural Training Institute shall: SECTION 31. Inspection of Plants, Plant Products,
(1) Be responsible for the training of all agricultural Potential Animal Pests, and Other Materials. — The
extension workers and their clientele, who are mostly Regional Director concerned or other officials of the
farmers and other agricultural workers; Department who may be authorized by the Secretary of
Agriculture shall cause the appropriate inspection of the
(2) Ensure that training programs address the real commodities mentioned in the next four preceding
needs of the agricultural sectors; and sections and apply the necessary plant quarantine
(3) Ensure that the research results are communicated measures in order to attain the objectives of this Chapter.
to the farmers through the appropriate training and SECTION 32. Domestic Quarantine of Plants and
extension activities. Plant Products. — In order to prevent and arrest the
spread to other areas of injurious plant pests existing in
certain localities within the Philippines, the Regional
CHAPTER 5 Regional Offices
Director concerned, the Plant Quarantine Officer or other
SECTION 26. Functions. — The Department of officials of the Department who may be authorized by
Agriculture is authorized to establish, operate, and the Secretary of Agriculture shall cause the inspection,
maintain a Regional Office in each of the administrative treatment and certification of plants and plant products
regions of the country. Each Regional Office shall be involved in movement from one locality to another within
headed by a Regional Director, to be assisted by three (3) the country.
Assistant Regional Directors, assigned to Operations,
SECTION 33. Appointment of Plant Quarantine
Research, and Support Services, respectively. Each
Officers. — The Secretary shall, upon recommendation of



the Regional Director concerned and in consultation with (2) Importations and exportations of all government
the Director of Plant Industry, appoint Plant Quarantine departments or agencies and government-owned or
Officers to act as his representatives in implementing and controlled corporations, and donations to and for the
enforcing the provisions of this Chapter. account of any duly registered relief organization or any
SECTION 34. Powers and Duties of Plant Quarantine charitable institution certified by the Department of
Officers. — The Plant Quarantine Officers shall have Social Services and Welfare, embassies of foreign
authority to: governments, and those that may be declared by the
President, upon the recommendation of the National
(1) Inspect all carriers, passengers, crew, luggage and Economic and Development Authority in the interest of
incoming mails to determine the presence of plants, economic development, are exempt from payment of the
plant products and other materials capable of harboring fees herein prescribed excluding, however, the expense
plant pests as well as potential animal pests; incurred in commodity treatment.
(2) Enter into and inspect any and all areas where SECTION 39. Overtime Services. — The services of
plants, plant products and other materials capable of Plant Quarantine Officers, fumigators and helpers
harboring plant pests are landed, stored or grown; performed outside office hours and reimbursement of
(3) Examine imported plants, plant products, and other meal, transportation, lodging and other incidental
materials capable of harboring plant pests as well as expenses shall be chargeable to the party or parties
potential animal pests and administer necessary served at the rates to be prescribed by the Secretary of
measures to insure effective implementation of the Agriculture upon recommendation of the Regional
provisions of this Chapter; Director concerned.
(4) Inspect, administer treatment and certify plants, SECTION 40. Cooperating Agencies. — The Secretary
plant products and other related materials intended for of Agriculture may call upon the other government
export, if the importing country so requires; agencies in the implementation of plant quarantine
regulations, and dissemination of information to the
(5) Confiscate and destroy or refuse entry of plants, general public.
plant products and potential animal pests involved in
prohibited importations and deny inspection, SECTION 41. Special Quarantine Orders, Rules and
certification or clearance of the same; and Regulations. — Special quarantine orders, rules and
regulations shall be promulgated by the Secretary of
(6) Perform such other related duties as may be Agriculture upon recommendation of the Plant
provided by law. Quarantine Board to carry out and implement the
SECTION 35. Non-Liability Clause. — (1) All charges for provisions of this Chapter.
storage, demurrage, cartage, labor and delays incident to SECTION 42. Quasi-judicial Authority. — (1) The
inspection, cost of disinfection or disinfestation and other Regional Directors and the other officials of the
post-entry requirements shall be paid by the importer or Department who may be authorized by the Secretary of
exporter as the case may be. Agriculture, after proper hearing, are hereby empowered
(2) The Regional Director and the authorized officials to impose administrative fines for the violation of and
of the Department shall not be held liable for damages to non-compliance with quarantine orders, rules and
the commodity in the course of the implementation of regulations promulgated in accordance with this Chapter.
the provisions of this Chapter. (2) The decision of the Regional Director concerned
SECTION 36. Duties of Importer and Exporter. — The and those of the other authorized officials of the
importers, exporters, or their authorized representatives Department under this section are appealable to the
shall submit a declaration to the Regional Director Secretary of Agriculture whose decision shall be final.
concerned or other authorized officials of the SECTION 43. Plant Quarantine Board. — For the
Department, at or before the time of entry or purpose of carrying out the provisions of this Chapter,
embarkation, of plants and plant products for there shall be a Plant Quarantine Board which shall be
importation or exportation. Such declaration shall composed of the Undersecretary of Agriculture for
indicate the name and address of the consignor or Regional Operations as Chairman; the Director of Plant
consignee, the purpose, nature and quantity of plants Industry, as Vice-Chairman; and the following members:
and plant products, the country or locality where the the Commissioner of Customs, the General Manager of
same was grown, place and date of unloading or the Philippine Ports Authority, the Director of Quarantine,
embarkation and the registered name of the carrier the Director of Animal Industry, the Postmaster General,
carrying the consignment. the Administrator of the Philippine Coconut Authority,
SECTION 37. Entrance and Clearance of Carrier. — (1) the Director of Forest Development or their
The owner, operator, agent or master of carriers plying representatives, the Chief of the Department Legal
international or domestic routes are hereby required to Service, the Chief of the Plant Quarantine Section and the
serve notice of arrival and departure and to provide Chief of the Crop Protection Division of the Bureau of
inward and outward cargo manifests and other Plant Industry, and a representative each from the
declarations of said carriers to the Plant Quarantine National Economic and Development Authority, the
Officer at the post. Prior to departure, the agent or Central Bank of the Philippines, and the Importers' and
master of said carrier must secure a clearance from the Exporters' Confederation, as members.
Plant Quarantine Officer thereat. SECTION 44. Duties of the Board. — The Plant
(2) The Collector of Customs or his authorized agents Quarantine Board shall act as the advisory body to assist
shall require the owner, agent or master of carrier to the Secretary in formulating orders, rules and regulations
submit a copy of the certificate of plant quarantine for the effective implementation of the provisions of this
clearance as a pre-requisite to the issuance of the Chapter.
customs clearance. SECTION 45. Board Meeting. — The Board shall meet
SECTION 38. Collection of Fees. — (1) The Regional once every quarter or may call special meetings when
Director concerned shall, with the approval of the necessary, provided that such special meetings shall not
Secretary of Agriculture, promulgate rules and be held more than four times annually.
regulations governing the collection of regulatory fees for SECTION 46. Quorum. — A majority of the members of
inspection, certification, import permits, commodity the Board shall constitute a quorum.
treatment and others, on commodities described in this
Chapter which shall constitute the revolving fund of the
national plant quarantine service.

CHAPTER 6 Attached Agencies TITLE V Public Works and Highways

SECTION 47. Attached Agencies. — The following
units are hereby attached to the Department:
(1) Agricultural Credit Policy Council
SECTION 1. Declaration of Policy. — The State shall
(2) National Agricultural and Fishery Council maintain an engineering and construction arm and
(3) Philippine Technical and Administrative Committee continuously develop its technology, for the purposes of
for SEAFDEC ensuring the safety of all infrastructure facilities and
securing for all public works and highways the highest
(4) Livestock Development Council efficiency and the most appropriate quality in
(5) National Meat Inspection Commission construction. The planning, design, construction and
maintenance of infrastructure facilities, especially
(6) Fertilizer and Pesticide Authority
national highways, flood control and water resources
(7) Fiber Industry Development Authority development system, and other public works in
(8) National Tobacco Administration accordance with national development objectives, shall
be the responsibility of such an engineering and
(9) Sugar Regulatory Administration construction arm. However, the exercise of this
(10) National Food Authority and its subsidiaries responsibility shall be decentralized to the fullest extent
feasible.
(11) Quedan Guarantee Fund Board
SECTION 2. Mandate. — The Department of Public
(12) Philippine Fisheries Development Authority Works and Highways shall be the State's engineering and
(13) Philippine Rice Research Institute construction arm and is tasked to carry out the policy
enunciated above.
(14) Philippine Coconut Authority and its subsidiaries
SECTION 3. Powers and Functions. — The
(15) National Irrigation Administration
Department, in order to carry out its mandate, shall:
(16) Sacovia Development Authority; and
(1) Provide technical services for the planning, design,
(17) Regional Cooperative Development Assistance construction, maintenance, or operation of infrastructure
Offices (Regions IX and XII). facilities;
SECTION 48. Specific Functions. — (1) The National (2) Develop and implement effective codes, standards,
Agricultural and Fishery Council shall act as an advisory and reasonable guidelines to ensure the safety of all
and coordinative body of the Department. As such, it shall public and private structures in the country and assure
conduct and encourage consultative discussions among efficiency and proper quality in the construction of public
all agricultural sectors at the municipal, provincial, works;
regional and national levels;
(3) Ascertain that all public works plans and project
(2) The Philippine Technical and Administrative implementation designs are consistent with current
Committee for Southeast Asia Fisheries Development standards and guidelines;
Center (SEAFDEC) shall be responsible for the
(4) Identify, plan, secure funding for, program, design,
administration and management of the SEAFDEC
construct or undertake prequalification, bidding, and
Aquaculture Department and shall monitor and assess
award of contracts of public works projects with the
the performance of research projects on fisheries and
exception only of specialized projects undertaken by
aquaculture in accordance with the policies or standards
Government corporate entities with established technical
established by the SEAFDEC International Council and
capability and as directed by the President of the
the Department;
Philippines or as provided by law;
(3) The Livestock Development Council shall be
(5) Provide the works supervision function for all public
responsible for the formulation and establishment of
works constructions and ensure that actual construction
comprehensive policy guidelines for the livestock
is done in accordance with approved government plans
industry, preparation of plans and programs and
and specifications;
evaluation of livestock programs/projects;
(6) Assist other agencies, including the local
(4) The National Meat Inspection Commission shall
governments, in determining the most suitable entity to
conduct actual ante mortem inspection on all animals
undertake the actual construction of public works
presented for slaughter and post mortem inspection on
projects;
all animals presented for slaughter and post mortem
inspection on all carcasses intended for human (7) Maintain or cause to be maintained all highways,
consumption in all abattoirs in the country; render flood control, and other public works throughout the
technical assistance in the construction of meat country except those that are the responsibility of other
establishments (abattoirs, dressing plants, processing agencies as directed by the President of the Philippines
plants and meat markets) particularly on the selection of or as provided by law;
sites, and plant design preparation, equipment design (8) Provide an integrated planning for highways, flood
and test runs; exercise overall supervision and control of control and water resource development systems, and
management and operations of all abattoirs, dressing other public works;
plants, meat processing plants and meat markets.
(9) Classify roads and highways into national, regional,
SECTION 49. Organization and Operation. — The provincial, city, municipal, and barangay roads and
agencies attached to the Department shall continue to highways, based on objective criteria it shall adopt;
operate and function in accordance with their respective provide or authorize the conversion of roads and
charters, laws or orders creating them, except as highways from one category to another; and
otherwise provided in this Code. Any provision of law to
the contrary notwithstanding, the Secretary shall serve as (10) Delegate, to any agency it determines to have the
Chairman of the governing boards of all attached units or adequate technical capability, any of the foregoing
agencies. powers and functions; and
by law.


SECTION 4. Organizational Structure. — The government regulations, and contractual obligations of
Department shall be composed of: the Department;
(1) The Department Proper consisting of the Office of (3) Review and appraise systems and procedures,
the Secretary, the Offices of the Undersecretaries and organizational structure, assets management practices,
Assistant Secretaries, the Internal Audit Service, accounting and other records, reports and performance
Monitoring and Information Service, Planning Service, standards (such as budgets and standard cost) of the
Comptrollership and Financial Management Service, Department Proper, Bureaus and Regional Offices;
Legal Service, and the Administrative and Manpower (4) Analyze and evaluate management deficiencies
Management Service; and assist top management to solve the problems by
(2) The Bureau of Research and Standards, Bureau of recommending realistic courses of action; and
Design, Bureau of Construction, Bureau of Maintenance, (5) Perform such other related duties and
and Bureau of Equipment; and responsibilities as may be assigned or delegated by the
(3) The Field Offices, consisting of fourteen (14) Secretary or as may be required by law.
Regional Offices composed of Region I (Ilocos), Region II SECTION 9. Monitoring and Information Service. —
(Cagayan Valley), Region III (Central Luzon), National The Monitoring and Information Service is hereby created
Capital Region, Region IV-A (Southern Tagalog Mainland to provide the Secretary timely reports on the status of
Provinces), Region IV-B (Southern Tagalog Island various Department projects and activities; and develop
Provinces), Region V (Bicol), Region VI (Western Visayas), and implement information programs for mass
Region VII (Central Visayas), Region VIII (Eastern Visayas), dissemination in coordination with the appropriate
Region IX (Western Mindanao), Region X (Northeastern government agencies. The Monitoring and Information
Mindanao), Region XI (Southern Mindanao), and Region Service shall have the following functions:
XII (Central Mindanao), and their respective District
Offices. (1) Advice the Secretary on all matters relating to
monitoring and public information;
CHAPTER 2 Department Proper (2) Develop and maintain a system for retrieving and
processing monitoring information on all projects and
SECTION 5. Office of the Secretary. — The Office of activities of concern to the Secretary;
the Secretary shall be composed of the Secretary and his
immediate staff. (3) Provide accurate and timely status and exception
reports to the Secretary;
be assisted by not more than five (5) Undersecretaries (4) Generate monitoring reports for the President, the
who shall be appointed by the President upon the Cabinet, or for any other purpose as required by the
recommendation of the Secretary. The Secretary is Secretary;
hereby authorized to delineate and assign the respective (5) Develop and supervise the implementation of
functional areas of responsibility of the Undersecretaries. communications programs to have relevant policies,
Such responsibility shall be with respect to the mandate programs and plans of the Department understood by
and objectives of the Department and no Undersecretary the public;
shall be assigned primarily administrative responsibilities.
(6) Produce and supervise the dissemination of media
Within his functional area of responsibility, an
materials in line with the national government public
Undersecretary shall have the following functions:
information programs;
(1) Advise and assist the Secretary in the formulation
(7) Coordinate with appropriate national government
and implementation of Department policies, plans,
agencies tasked with public information affairs; and
programs and projects;
(8) Perform such other related duties and
(2) Supervise all the operational activities of the units
responsibilities as may be assigned or delegated by the
assigned to him, for which he is responsible to the
Secretary or as may be required by law.
Secretary; and
The existing Infrastructure Computer Center shall be
(3) Perform such other duties and responsibilities as
under the supervision of the Assistant Secretary for
may be assigned or delegated by the Secretary to
Monitoring Information. It shall establish and maintain a
promote efficiency and effectiveness in the delivery of
computerized data bank as a repository of statistics and
public services or as may be required by law.
information on infrastructure operations. It shall also
SECTION 7. Assistant Secretaries. — The Secretary provide computer service to the different offices of the
shall also be assisted by six (6) Assistant Secretaries Department.
appointed by the President of the Philippines upon the
SECTION 10. Planning Service. — The Planning
recommendation of the Secretary; one (1) to be
Service shall provide the Department with the capability
responsible for the Internal Audit Services; one (1) for the
to undertake infrastructure development planning and
Monitoring and Information Service; one (1) for the
programming. For this purpose, it shall have the following
Planning Service; one (1) for the Comptrollership and
functions:
Financial Management Service; one (1) for the Legal
Service; and one (1) for the Administrative and Manpower (1) Advice the Secretary on all matters relating to
Management Service. infrastructure planning;
(2) Formulate strategies and priorities for
CHAPTER 3 Department Services infrastructure development consistent with national
development objectives; and initiate or undertake,
SECTION 8. Internal Audit Service. — The Internal coordinate and review area and sector surveys for
Audit Service shall conduct comprehensive audit of development planning;
various Department activities. Specifically, it shall have
the following functions: (3) Formulate long-range, medium-term and annual
development plans and programs for infrastructure,
(1) Advice the Secretary on all matters relating to especially highways, flood control and water resource
management control and operations audit; development systems, and other public works projects,
(2) Conduct management and operations including phasing of implementation;
performance audit of Department activities and units (4) Identify priority packages for infrastructure
and determine the degree of compliance with development, especially highways, flood control and
established objectives, policies, methods and procedures, water resource development systems, and other public
works projects, undertake or supervise and evaluate the



conduct of feasibility studies and project preparation Department with services relating to human resources
thereof; development, personnel, records, facilities maintenance,
(5) Prioritize project implementation and the allocation medical and dental, security and property and
of funds and other resources and package project procurement services. For such purposes, it shall have the
proposals for funding and implementation; following functions:
(6) Evaluate and appraise all regional and interregional (1) Advise the Secretary, on all matters relating to
infrastructure development plans and programs as to internal administration and human resources
their feasibility and consistency with approved strategies management;
and long and medium-term plans; (2) Prepare and implement an integrated personnel
(7) Initiate regular Department-wide planning exercise plan that shall include provisions on merit promotions,
and act as the secretariat thereof; performance evaluation, job rotation, suggestions and
incentive awards systems and health and welfare services;
(8) Gather, analyze and organize needed statistical
data and information; (3) Provide services related to human resources
training, education, and development, including
(9) Provide technical assistance related to its functions manpower and career planning and forecasting and
to the other Services, Bureaus and the Regional Offices as development of indigenous training materials;
needed; and
(4) Develop, establish and maintain an efficient and
(10) Perform such other related duties and cost-effective property procurement system and facilities
responsibilities as may be assigned or delegated by the and coordinate or otherwise interface with relevant
Secretary or as may be required by law. agencies, whether government or private, for the purpose
SECTION 11. Comptrollership and Financial of developing or upgrading the system;
Management Service. — The Comptrollership and (5) Secure and maintain necessary Department
Financial Management Service shall provide the facilities and develop, establish and maintain an efficient
Department with coordinated services relating to and effective security system covering, among others,
financial systems and procedures, budget, cash, personnel, physical installations, equipment, documents
accounting, and all financial housekeeping matters. For and materials, including the conduct of security
such purposes, it shall have the following functions: investigations;
(1) Advise the Secretary on all matters relating to the (6) Coordinate with the appropriate government
accounting of government expenditures and receipts, agencies for a more efficient conduct of administrative
budgeting and cash management, project finances, and processes;
financial systems and procedures;
(7) Develop, establish and maintain an efficient records
(2) Prepare budget proposals and pursue formal system;
budget authorizations; undertake budget execution, and
prepare and submit all appropriate reports to the proper (8) Provide assistance in its area of specialization to the
offices; Department proper, Bureaus and Regional Offices and,
when requested, the government agencies and
(3) Develop and maintain accounting, financial and corporations attached to the Department; and
assets management systems, procedures, and practices
in the Department proper, Bureaus, and Regional Offices; (9) Perform such other related duties and
(4) Provide assistance in its area of specialization to any Secretary or as may be required by law.
unit of the Department and, when requested, to
government corporations and councils attached to the
Department; and CHAPTER 4 The Bureau
(5) Perform such other related duties and SECTION 14. Bureau Head. — Each Bureau shall be
responsibilities as may be assigned or delegated by the headed by a Bureau Director who shall be responsible for
Secretary or as may be required by law. efficiently and effectively carrying out the functions of the
Bureau.
SECTION 12. Legal Service. — The Legal Service
provides the Department with services on such legal SECTION 15. Bureau of Research and Standards. —
affairs as contract letting and litigation, legal and The Bureau of Research and Standards shall develop and
legislative research, complaints and investigation, legal set effective standards and reasonable guidelines to
counselling and other matters of law. For such purposes, ensure the safety of all infrastructure facilities in the
it shall have the following functions: country and to assure efficiency and proper quality in the
construction of government public works. In pursuit of
(1) Advise the Secretary on all matters relating to legal this task, the Bureau shall engage in research and
affairs; development in all major areas pertinent to infrastructure
(2) Prepare Department contracts and legal development. For such purposes, it shall have the
instruments, review and interpret all contracts and following functions:
agreements entered into by the Department; evaluate all (1) Study, on a continuing basis, and formulate and
legal proposals; recommend guidelines, standards, criteria, and systems
(3) Conduct administrative investigation as well as the for the survey and design, construction, rehabilitation,
review of administrative charges against officers and maintenance and improvement of all public works and
employees of the Department; highways;
(4) Exercise functional jurisdiction over the legal staffs (2) Conduct or sponsor research on construction
of Regional Offices; materials and formulate and recommend policies,
standards and guidelines on materials and quality
(5) Provide legal assistance to the Department proper,
control;
the Bureaus and Regional Offices and, when requested,
the attached corporations; and (3) Undertake or cause to be undertaken specialized
technical studies to advance the inhouse technology of
(6) Perform such other related duties and
the Department and secure the most complete
information for project development and
implementation purposes;
SECTION 13. Administrative and Manpower
(4) Formulate technical training programs for
Management Service. — The Administrative and
Department technical personnel, including the
Manpower Management Service provides the
identification of appropriate local and foreign training



programs, and recommend the selection of Department SECTION 18. Bureau of Maintenance. — The Bureau
personnel for such programs; of Maintenance provides technical services on the
(5) Review and study, for the purpose of recognizing maintenance and repair of infrastructure projects and
new technologies especially those utilizing indigenous facilities. For this purpose, it shall have the following
resources, current national building and construction duties and responsibilities:
standards and procedures and make appropriate (1) Formulate policies relating to the maintenance of
recommendations thereon; infrastructure projects and facilities;
(6) Promote, publish and disseminate technical (2) Review and evaluate maintenance programs,
publications; estimates, and tender and contract documents;
(7) Provide technical assistance to the Department (3) Inspect, check, and monitor maintenance activities
Proper, other Bureaus, Regional Offices and other of implementing field offices for the purpose of ensuring
agencies on matters within its competence, including that such activities are being conducted in accordance
technical assistance in the upgrading or updating of the with the current standards and policies of the
Building Code, and other services; Department;
(8) Cooperate or coordinate with other established (4) Provide specialist support to implementing field
research, development, and engineering centers in areas offices on the maintenance of infrastructure projects and
of common or national interests; and facilities;
(9) Perform such other duties and responsibilities as (5) Perform such other related duties and
may be assigned or delegated by the Secretary or as may responsibilities as may be assigned or delegated by the
be required by law. Secretary or as may be required by law.
SECTION 16. Bureau of Design. — The Bureau of SECTION 19. Bureau of Equipment. — The Bureau of
Design shall ascertain that all government infrastructure Equipment provides technical services on the
project implementation plans and designs are consistent management of construction and maintenance
with current standards and guidelines. For this purpose, it equipment and ancillary facilities. For this purpose, it shall
shall have the following duties and responsibilities: have the following duties and responsibilities:
(1) Conduct or initiate, supervise and review the results (1) Formulate policies relating to the management of
of field surveys for highways, flood control and water infrastructure equipment and ancillary facilities;
resource development systems, and other public works (2) Review and evaluate programs, estimates, tender
projects, including aerial, hydrologic, hydrographic, and contract documents for equipment;
topographic, geotechnical and other investigations;
(3) Inspect, check and monitor the management of
(2) Conduct or initiate, supervise and review the equipment by regional equipment services and area
preparation of schemes, designs, specifications, shops for the purpose of ensuring that such activities are
estimates, tender and contract documents covering the being conducted in accordance with the current
architectural, structural, mechanical, electrical and other standards and policies of the Department;
technical design aspects of highways, flood control and
other projects of the Department or of other (4) Provide specialist support to implementing field
departments upon request or agreement; offices on equipment management; and
(3) Review and evaluate the designs, specifications, (5) Perform such other related duties and
estimates, tender and contract documents covering the responsibilities as may be assigned or delegated by the
architectural, structural, mechanical, electrical and other Secretary or as may be required by law.
technical design aspects of public works projects of all
agencies in accordance with current standards and
guidelines;
SECTION 20. Regional Offices. — Regional Offices
(4) Provide technical assistance in the selection of
shall be responsible for highways, flood control and water
firms or entities that shall undertake actual construction
resource development systems, and other public works
of public works projects via participation in the technical
within the region, except those defined in Section 3, par.
evaluation aspect of the bidding/award process; and
(4) hereof. For this purpose, their duties and
(5) Perform such other related duties and responsibilities shall be as follows:
(1) Undertake and evaluate the planning, design,
construction and works supervision functions of the
SECTION 17. Bureau of Construction. — The Bureau of Department for the above mentioned infrastructure
Construction shall provide technical services on within the region;
construction works for infrastructure projects and
(2) Undertake the maintenance of the above
facilities. For this purpose, it shall have the following
mentioned infrastructure within the region and supervise
duties and responsibilities:
the maintenance of such local road and other
(1) Formulate policies relating to construction infrastructure receiving national government financial
management and contract administration; assistance as the Secretary may determine;
(2) Review and evaluate construction programs, (3) Ensure the implementation of laws, policies,
estimates, tender and contract documents; programs, rules and regulations regarding the above
(3) Inspect, check and monitor construction and works mentioned infrastructure as well as all public and private
supervision activities of field implementing offices for the physical structures;
purpose of ensuring that such activities are being (4) Provide technical assistance related to their
conducted in accordance with the current standards and functions to other agencies within the region especially
guidelines of the Department; the local government;
(4) Provide specialist support to implementing field (5) Coordinate with other departments, agencies,
offices on construction management and contract institutions and organizations, especially local
administration; and government units within the region in the planning and
(5) Perform such other related duties and implementation of infrastructure projects;
responsibilities as may be assigned or delegated by the (6) Conduct continuing consultations with the local
Secretary or as may be required by law. communities, take appropriate measures to make the
services of the Department responsive to the needs of


the general public, compile and submit such information accountable for the efficient and effective conduct of the
to the central office, and recommend such appropriate duties and responsibilities of the District Office of which
actions as may be necessary; and he is the head. Within his defined powers, he shall
(7) Perform such other related duties and exercise functional and administrative supervision over
responsibilities as may be assigned or delegated by the district operations including the authority to recommend
Secretary or as may be required by law. that field resources and personnel be committed to
integrated district-wide development thrusts. He shall
The Department shall retain and have such Project also perform such other related duties and
Management Offices as may be required which shall be responsibilities as may be assigned or delegated by the
under the supervision and control of the appropriate Secretary or as may be required by law.
Regional Director, unless otherwise determined by the
Secretary for reasons of supra-regional scope, magnitude, SECTION 24. Equipment Services. — The Regional
and multi-functional coverage. Equipment Services, including regional depots and area
shops are hereby reorganized to undertake the
SECTION 21. Regional Director. — The Regional Office management, repair, maintenance and rehabilitation of
shall be headed by a Regional Director who shall be construction and maintenance equipment. Each depot or
responsible for efficiently and effectively carrying out the shop shall be operated, to the extent practicable, as a
duties and responsibilities of the Regional Office. Towards profit center. The Regional Equipment Services shall be
this end, and in line with the policy of decentralization, he under the administrative supervision of the Regional
shall, within his defined powers, exercise functional and Director and technical supervision of the Bureau of
administrative supervision over District Offices within the Equipment.
region including the authority to commit their resources
and personnel to integrated province or city-wide
development thrusts. CHAPTER 6 Attached Agencies
He shall also perform such other related duties and SECTION 25. Attached Agencies and Corporations. —
responsibilities as may be assigned or delegated by the Agencies and corporations attached to the Department
Secretary or as may be required by law. shall continue to operate and function in accordance with
their respective charters/laws/executive orders creating
The Regional Director shall be assisted by two (2) them. Accordingly, the Metropolitan Waterworks and
Assistant Regional Directors who shall exercise Sewerage System, the Local Water Utilities
supervision, respectively over: (1) the construction, Administration, the National Irrigation Administration,
maintenance and works supervision functions in the and the National Water Resources Council, among others,
region; and (2) the planning, project design, evaluation shall continue to be attached to the Department; while
and technical assistance functions of the Regional Office. the Metropolitan Manila Flood Control and Drainage
SECTION 22. District Office. — There shall be a District Council, as reorganized, shall be attached to the
Office in each of the provinces and cities throughout the Department.
country to be headed by a District Engineer appointed by
the Secretary. A province or city may, however, be divided
into two (2) or more engineering districts, upon TITLE VI Education, Culture and Sports
determination and issuance of an administrative order by
the Secretary. The District Office shall be responsible for
all highways, flood control and water resource CHAPTER 1 General Provisions
development systems, and other public works within the SECTION 1. Declaration of Policy. — The State shall
district, except those defined under Section 3, par. (4) protect and promote the right of all citizens to quality
hereof. For this purpose, it shall have the following duties education at all levels and shall take appropriate steps to
and responsibilities: make such education accessible to all. Pursuant to this,
(1) Undertake and evaluate the planning, design, the State shall:
construction, and works supervision functions of the 1) Establish, maintain and support a complete,
Department for the above mentioned infrastructure in adequate, and integrated system of education relevant to
the district; the needs of the people and society;
(2) Undertake the maintenance of the 2) Establish and maintain a system of free public
abovementioned infrastructure within the district and education in the elementary and high school levels.
supervise the maintenance of such local roads and other Without limiting the natural right of parents to rear their
infrastructure receiving national government financial children, elementary education is compulsory for all
assistance as the Secretary may determine; children of school age;
(3) Coordinate with other departments, agencies, 3) Establish and maintain a system of scholarship
institutions, and organizations, especially local grants, student loan programs, subsidies, and other
government units within the district in the planning and incentives which shall be available to deserving students
implementation of infrastructure projects; in both public and private schools, especially to the
(4) Provide technical assistance to other agencies at underprivileged;
the local level on public works planning, design, 4) Encourage non-formal, informal, and indigenous
construction, maintenance and other engineering learning systems, as well as self-learning, independent,
matters including securing from the Regional Office or, and out-of-school study programs particularly those that
through the same office, assistance from the respond to community needs; and
Department Proper or Bureaus;
5) Provide adult citizens, the disabled, and
(5) Conduct continuing consultations with the local out-of-school youth with training in civics, vocational
communities, take appropriate measures to make the efficiency, and other skills.
services of the Department responsive to the needs of
SECTION 2. Mandate. — The Department shall be
the general public, compile and submit such information
primarily responsible for the formulation, planning,
to the Regional Office and recommend such appropriate
implementation and coordination of the policies, plans,
actions as may be necessary; and
programs and projects in the areas of formal and
(6) Perform such other related duties and non-formal education at all levels, supervise all
responsibilities as may be assigned or delegated by the educational institutions, both public and private, and
Secretary or as may be required by law. provide for the establishment and maintenance of a
SECTION 23. District Engineer. — The District complete, adequate and integrated system of education
Engineer of or within a province or city shall be relevant to the goals of national development.


its mandate and objectives, the Department shall have CHAPTER 4 Board of Higher Education
the powers and functions of formulating, planning,
implementing and coordinating the policies, plans, SECTION 8. Organization. — The Board shall be
programs and projects for the following: composed of an Undersecretary of the Department of
Education, Culture and Sports designated as Chairman
(1) Elementary, secondary, physical and international and four other members to be appointed by the
education; President of the Philippines upon nomination by the
(2) Non-formal and vocational or technical education; Secretary of Education, Culture and Sports for a term of
four years. The four members shall have distinguished
(3) Higher education; themselves in the field of higher education and
(4) Development of culture; development either in the public or private sector. The
Director of the Bureau of Higher Education shall
(5) Foreign and locally assisted projects and other
participate in the deliberation of the Board but without
activities relative to Subsections (1), (2), (3) and (4); and
the right to vote.
SECTION 9. Functions. — The Board of Higher
by law.
Education shall:
SECTION 4. Organizational Structure. — The
(1) Articulate the policy and support the framework for
Department, aside from the Department Proper, shall
both public and private post-secondary education;
consist of Bureau and Regional Offices.
(2) Make policy recommendations regarding the
planning and management of the integrated system of
CHAPTER 2 Department Proper higher education and the continuing evaluation thereof;
SECTION 5. Office of the Secretary. — The Office of (3) Recommend to the Secretary of Education, Culture
the Secretary shall be composed of the Secretary and his and Sports steps to improve the governance of the
immediate staff. various components of the higher education system at
SECTION 6. Undersecretaries. — The Secretary shall national and regional levels; and
be assisted by five (5) Undersecretaries, each of whom (4) Assist the Secretary of Education, Culture and
shall be responsible for the following: Sports in making recommendations relative to the
(1) Elementary education, secondary education, generation of resources and their allocation for higher
physical education and international education programs education.
and centers; SECTION 10. Staff Assistance. — The Bureau of Higher
(2) Non-formal education, vocational/technical Education shall provide the Board with the necessary
education, and youth organizations; technical and staff support; Provided, That the Board may
create technical panels of experts in the various
(3) Higher education, cultural agencies, and disciplines as the need arises.
foreign-assisted projects;
(4) Internal administration and management, and
regional coordination; and CHAPTER 5 State Colleges and Universities
(5) Legal and legislative affairs, and other attached SECTION 11. Governance. — By virtue of his
agencies and centers. chairmanship of their boards of trustees as provided in
their respective charters, the Secretary, directly or
through his Undersecretaries, shall continue to govern
CHAPTER 3 Department Services state colleges and universities.
SECTION 7. Functions of the Services. — The Services
of the Department shall consist of the following: CHAPTER 6 Bureaus and Offices
(1) The Planning Service shall be responsible for SECTION 12. Bureau of Elementary Education. — The
providing the Department with economical, efficient, and Bureau of Elementary Education shall have the following
effective services relating to planning, programming, and functions:
project development;
(1) Conduct studies and formulate, develop, and
(2) The Financial and Management Service shall be evaluate programs and educational standards for
responsible for providing the Department with staff elementary education;
advice and assistance on budgetary, financial, and
management improvement matters; (2) Undertake studies necessary for the preparation of
prototype curricular designs, instructional materials and
(3) The Administrative Service shall be responsible for teacher training programs for elementary education;
providing the Department with economical, efficient, and
effective services relating to legal assistance, information, (3) Formulate guidelines to improve elementary school
records, supplies, equipment, collection, disbursement, physical plans and equipment, and general management
security and custodial work; of these schools; and
(4) The Human Resources Development Service shall: (4) Perform such other functions as may be provided
by law.
(a) Develop and administer a personal program which
shall include selection and placement, classification and SECTION 13. Bureau of Secondary Education. — The
pay, career and employment development, performance Bureau of Secondary Education shall have the following
rating, employee relations and welfare services; functions:
(b) Act on all matters concerning attendance, leaves of (1) Conduct studies and formulate, develop and
absences, appointments, promotions, and other evaluate programs and educational standards for
personnel transactions; and secondary education;
(c) Conduct training programs in the Department. (2) Develop curricular designs, prepare instructional
materials, and prepare and evaluate programs to upgrade
(5) The Technical Service, which includes the Office of the quality of the teaching and non-teaching staff at the
the Head Executive Assistant and the Information and secondary level;
Publication Service shall take charge of technical staff
activities which cannot be allocated to the four (4) other
services.


(3) Formulate guidelines to improve the secondary responsible for the School Divisions and their
schools physical plants and equipment, and general Superintendents within his administrative region.
management of these schools; and SECTION 19. Functions. — A Regional Office shall have,
(4) Perform such other functions as may be provided within its administrative region, the following functions:
by law. (1) Formulate the regional plan of education based on
SECTION 14. Bureau of Technical and Vocational the national plan of the Department taking into account
Education. — The Bureau of Technical and Vocational the specific needs and special traditions of the region;
Education shall have the following functions: (2) Implement laws, rules, regulations, policies, plans,
(1) Collaborate with other agencies in the formulation programs and projects of the Department;
of manpower plans; (3) Provide economical, efficient and effective
(2) Conduct studies, formulate, develop and evaluate education service to the people;
post-secondary vocational technical staff, and formulate (4) Coordinate with regional offices of other
guidelines to improve the physical plant and equipment Departments, Offices and agencies in the region;
of post-secondary vocational-technical schools; and
(5) Coordinate with local government units; and
(3) Develop curricular designs and prepare
instructional materials, prepare and evaluate programs to (6) Perform such other functions as may be provided
upgrade the quality of teaching and non-teaching staff, by law.
and formulate guidelines to improve the physical plant
and equipment of post-secondary, vocational/technical
CHAPTER 8 Attached Agencies
schools.
SECTION 20. Attached Agencies. — The following
SECTION 15. Bureau of Higher Education. — The
agencies are hereby attached to the Department:
Bureau of Higher Education shall have the following
functions: (1) National Museum;
(1) Develop, formulate and evaluate programs, projects (2) National Library;
and educational standards for higher education; (3) National Historical Institute;
(2) Provide staff assistance to the Board of Higher (4) Institute of Philippine Languages;
Education in its policy and advisory functions;
(5) Instructional Materials Corporation;
(3) Provide technical assistance to encourage
institutional development programs and projects; (6) Instructional Materials Council;
(4) Compile, analyze and evaluate data on higher (7) Educational Development Projects Implementing
education; and Task Force;
(5) Perform other functions provided by law. (8) Educational Assistance Policy Council;
SECTION 16. Bureau of Non-Formal Education. — The (9) National Youth and Sports Development Board;
Bureau of Non-Formal Education shall have the following (10) National Social Action Council;
functions:
(11) National Board of Teachers;
(1) Serve as a means of meeting the learning needs of
those unable to avail themselves of the educational (12) Boy Scouts of the Philippines;
services and programs of formal education; (13) Girl Scouts of the Philippines; and
(2) Coordinate with various agencies in providing (14) Records Management and Archives Office.
opportunities for the acquisition of skills necessary to
SECTION 21. Supervised and Controlled Agencies. —
enhance and ensure continuing employability, efficiency,
The Department shall exercise supervision and control
productivity, and competitiveness in the labor market;
over the following agencies:
and
(1) Health and Nutrition Center; and
(3) Serve as a means for expanding access to
educational opportunities to citizens of varied interests, (2) National Education Testing and Research Center.
demographic characteristics and socio-economic origins SECTION 22. Functions and Duties. — The agencies
or status. attached to as well as those under the supervision and
SECTION 17. Bureau of Physical Education and control of the Department shall continue to operate and
School Sports. — The Bureau of Physical Education and function in accordance with their respective charters or
School Sports shall have the following functions: laws creating them except as otherwise provided in this
Code.
(1) Develop human resources through mass-based
sports education;
(2) Improve the general fitness of the citizenry; CHAPTER 9 Miscellaneous Provisions
(3) Promote social and cultural integration through the SECTION 23. Medium of Instruction. — The
revival of indigenous games and sports; Department shall promulgate rules and the regulations
on the medium of instruction for all schools in
(4) Identify and nurture sports talents and promote accordance with the policy declared in Section 7, Article
excellence in sports, traditional games and other physical XIV of the Constitution.
activities; and
SECTION 24. School Year. — (1) The school year for
(5) Perform such other functions as may be provided public and private schools shall consist of not less than
by law. forty (40) weeks for the elementary and secondary levels,
and thirty-six (36) weeks for the college level or eighteen
CHAPTER 7 Regional Offices (18) weeks a semester.
SECTION 18. Organization. — The Department is 2) The opening date shall be fixed by the Secretary, but

hereby authorized to establish, operate and maintain a it shall not be earlier than the first day of June nor later
Regional Office in each of the administrative regions of than the last day of July of each year unless prevented by
the country. Each Regional Office shall be headed by a fortuitous events.
Regional Director who shall be assisted by an Assistant 3) The long school vacation period shall likewise be
Regional Director. The Regional Director shall be fixed by the Secretary taking into consideration the


convenience of the pupils and the special climatic They shall also participate in policy and decision-making
conditions prevailing during the said period. processes affecting their rights and benefits as may be
4) The dates established for the long school vacation provided by law.
shall not be changed oftener than once every five (5) (2) The State shall promote the principle of shared
years without prior public hearing properly advertised in a responsibility between workers and employers and the
newspaper of general circulation or announced by the preferential use of voluntary modes in settling disputes,
school authorities concerned. including conciliation, and shall enforce their mutual
SECTION 25. School Holidays. — All schools, whether compliance therewith to foster industrial peace.
public or private, shall not hold classes on public holidays, (3) The State shall regulate the relations between
whether regular or special. On holidays especially workers and employers, recognizing the right of labor to
proclaimed by the President, the schools in the its just share in the fruits of production and the right of
municipality, city or province affected by the enterprises to reasonable returns on investments, and to
proclamation shall not hold classes. The Secretary may, by expansion and growth.
reason of public calamity or emergency, order the closure SECTION 2. Mandate. — The Department shall be the
of any school, public or private, as may have been affected primary policy-making, programming, coordinating and
thereby for such period as necessity may demand. administrative entity of the Executive Branch of the
SECTION 26. School Sessions. — The regular daily government in the field of labor and employment. It shall
sessions of all public and private schools shall be held assume primary responsibility for:
during the hours fixed by the Secretary or his duly (1) The promotion of gainful employment
authorized representatives. Except in college, no class opportunities and the optimization of the development
sessions shall be held on Saturdays, Sundays, or holidays and utilization of the country's manpower resources;
unless to offset class sessions suspended by competent
authority. (2) The advancement of workers' welfare by providing
for just and humane working conditions and terms of
SECTION 27. School Rituals. — (1) School rituals employment;
prepared and prescribed by the Secretary shall be
observed in all public and private elementary and (3) The maintenance of industrial peace by promoting
secondary schools in the Philippines. harmonious, equitable, and stable employment relations
that assure equal protection for the rights of all
2) The school rituals shall consist of solemn and concerned parties.
patriotic mass singing of the Philippine National Anthem
and the recitation of prescribed patriotic pledges. SECTION 3. Powers and Functions. — The
Department of Labor and Employment shall:
3) The rituals shall be held in school premises as often
as may be practicable under the direction of the (1) Enforce social and labor legislation to protect the
respective school authorities. working class and regulate the relations between the
worker and his employer;
SECTION 28. Flag Ceremony. — (1) All educational
institutions shall observe a simple and dignified flag (2) Formulate and recommend policies, plans and
ceremony, including the playing or singing of the programs for manpower development, training,
Philippine National Anthem. allocation, and utilization;
2) The flag ceremony shall be conducted under the (3) Recommend legislation to enhance the material,
rules and regulations issued by the Secretary. social and intellectual improvement of the nation's labor
force;
3) Failure or refusal to observe the flag ceremony in
accordance with the rules and regulations issued by the (4) Protect and promote the interest of every citizen
Secretary shall, after proper notice and hearing, subject desiring to work locally or overseas by securing for him
the educational institution concerned and its head to the most equitable terms and conditions of employment,
public censure as an administrative punishment, which and by providing social and welfare services;
shall be published at least once in a newspaper of general (5) Regulate the employment of aliens, including the
circulation. enforcement of a registration or work permit system for
4) Failure to observe for the second time the said flag such aliens, as provided for by law;
ceremony shall, after notice and hearing, be a ground for (6) Formulate general guidelines concerning wage
the cancellation of the recognition or the permit of the and income policy;
private educational institution concerned.
(7) Recommend necessary adjustments in wage
5) Any teacher or student or pupil who refuses to join structures with a view to developing a wage system that
or participate in the flag ceremony may be dismissed is consistent with national economic and social
after due investigation. development plans;
SECTION 29. Local School Boards. — In every (8) Provide for safe, decent, humane and improved
province, city or municipality, there shall be established a working conditions and environment for all workers,
Provincial School Board, City School Board and Municipal particularly women and young workers;
School Board, respectively, whose composition, powers,
functions and duties shall be provided by law. (9) Maintain a harmonious, equitable and stable labor
relations system that is supportive of the national
economic policies and programs;
TITLE VII Labor and Employment (10) Uphold the right of workers and employers to
organize and promote free collective bargaining as the
foundation of the labor relations system;
(11) Provide and ensure the fair and expeditious
SECTION 1. Declaration of Policy. — (1) The State shall settlement and disposition of labor and industrial
afford full protection to labor and promote full disputes through collective bargaining, grievance
employment and equality of employment opportunities machinery, conciliation, mediation, voluntary arbitration,
for all. compulsory arbitration as may be provided by law, and
It shall guarantee the rights of all workers to other modes that may be voluntarily agreed upon by the
self-organization, collective bargaining negotiations, and parties concerned; and
peaceful concerted activities, including the right to strike (12) Perform such other functions as may be provided
in accordance with law. They shall be entitled to security by law.
of tenure, humane conditions of work, and a living wage.



SECTION 4. Organizational Structure. — The involving the Department or its officers or employees or
Department shall consist of the Office of the Secretary, act as their principal counsel in all actions taken in their
and Undersecretaries and Assistant Secretaries, the official capacity or other causes before judicial or
Services and Staff Bureaus, and the Regional Offices. administrative bodies.
SECTION 14. International Labor Affairs Service. —
CHAPTER 2 Department Proper The International Labor Affairs Service shall be
responsible for monitoring the observance and
SECTION 5. Office of the Secretary. — The Office of implementation of all obligations, courtesies, and facilities
the Secretary shall consist of the Secretary and his required by international labor affairs, particularly the
immediate staff. International Labor Organization, the Conference of Asian
SECTION 6. Joint RP-US Labor Committee Staff . — Pacific Labor Ministries, the Association of Southeast
There is hereby created in the Office of the Secretary a Asian Nations Labor Ministers Meeting of which the
Joint RP-US Labor Committee Staff which shall provide Philippines is a member, and related international labor
technical and other necessary services to the Philippine standards and agreements reached in various
panel in the Joint Labor Committee created under the international labor forums, treaties, and other multilateral,
RP-US Base Labor Agreement and for other special bilateral or multi-bilateral agreements in the area of labor
projects. The unit shall be headed by a Head Executive and employment; provide staff support and policy
Assistant who shall be assisted by five (5) staff assistants. guidelines to the Secretary in the supervision, monitoring
and reporting of the activities of the Philippine overseas
SECTION 7. Undersecretary. — The Secretary shall be
labor officers assigned in different countries; serve as the
assisted by not more than four (4) Undersecretaries who
instrumentality of the Department for technical
shall be appointed by the President upon the
cooperation, programs and activities with other countries
recommendation of the Secretary. The Secretary is
and international institutions.
hereby authorized to delineate and assign the respective
functional areas of responsibility of the Undersecretaries. SECTION 15. Information and Publication Service. —
The Information and Publication Service shall be
SECTION 8. Assistant Secretaries. — The Secretary
responsible for rapport and understanding between the
shall likewise be assisted by not more than four (4)
Department and the public through the development of
Assistant Secretaries who shall be appointed by the
public relations programs and the dissemination of
President upon the recommendation of the Secretary.
accurate and updated information on labor and
The Secretary is hereby authorized to delineate and
employment, by means of publications and media
assign the respective areas of functional responsibility of
coverages of special events and related matters on the
the Assistant Secretaries. Within his functional area of
Department's policies, plans, programs, and projects;
responsibility, the Assistant Secretary shall assist the
likewise, it shall be responsible for providing answers to
Secretary and Undersecretaries in the formulation,
queries from the public regarding the Department's
determination and implementation of laws, policies,
policies, rules, regulations, programs, activities and
plans, programs and projects on labor and shall oversee
services.
the day-to-day administration and supervision of the
constituent units of the Department.
CHAPTER 4 Bureaus
CHAPTER 3 Department Services SECTION 16. Bureau of Labor Relations. — The
Bureau of Labor Relations shall set policies, standards,
SECTION 9. Planning Service. — The Planning Service
and procedures on the registration and supervision of
shall provide the Department with efficient, effective and
legitimate labor union activities including denial,
economical services relating to planning, programming,
cancellation and revocation of labor union permits. It shall
project development and evaluation, and the
also set policies, standards, and procedure relating to
development and implementation of a management
collective bargaining agreements, and the examination of
information system.
financial records of accounts of labor organizations to
SECTION 10. Administrative Service. — The determine compliance with relevant laws.
Administrative Service shall provide the Department with
The Bureau shall also provide proper orientation to
efficient, effective and economical services relating to
workers on their rights and privileges under existing laws
records, management, supplies, equipment, collections,
and regulations, and develop schemes and projects for
disbursements, building administration and
the improvement of the standards of living of workers
maintenance, security and custodial work.
and their families.
SECTION 11. Human Resource Development Service.
SECTION 17. Bureau of Local Employment. — The
— The Human Resource Development Service shall
Bureau of Local Employment shall:
provide the Department with a program and
corresponding projects that shall make available training, (1) Formulate policies, standards and procedures on
education and development opportunities needed to productive manpower resources, development, utilization
upgrade the levels of competence and productivity of and allocation;
Department managers and personnel. It shall absorb the (2) Establish and administer a machinery for the
powers and functions of the Administrative Service in effective allocation of manpower resources for maximum
relation to the development and administration of employment and placement;
personnel programs including selection and placement,
development, performance evaluation, employee (3) Develop and maintain a responsive vocational
relations and welfare. guidance and testing system in aid of proper human
resources allocation;
SECTION 12. Financial Management Service. — The
Financial and Management Service shall be responsible (4) Regulate and supervise private sector participation
for providing the Department with efficient, effective and in the recruitment and placement of workers locally
economical services relating to budgetary, financial, under such rules and regulations as may be issued by the
management improvement and internal control matters. Secretary;
SECTION 13. Legal Service. — The Legal Service shall (5) Establish and maintain a registration or work
provide legal advice and service to Department officers permit system to regulate employment of aliens;
and employees; prepare informative or clarificatory (6) Develop and maintain a labor market information
opinions on labor laws, rules and regulations for uniform system in aid of proper manpower and development
interpretation thereof; answer legal queries from the planning;
public; assist the Office of the Solicitor General in suits


(7) Formulate employment programs designed to (3) Prepare rules and regulations, interpretative
benefit disadvantaged groups and communities; and bulletins and legal opinions relating to the administration
(8) Perform other functions as may be provided by law. and enforcement of labor standards; and provide
manuals and plan programs for the training of field
SECTION 18. Bureau of Women and Young Workers. personnel;
— The Bureau of Women and Young Workers shall:
(4) Provide technical and legal assistance to the Labor
(1) Formulate policies and promulgate orders, rules Standards Commission; and
and regulations implementing the provisions of the Labor
Code affecting working women and minors; (5) Perform such other functions as may be provided
by law.
(2) Set standards which shall protect the welfare of the
working women and minors, improve their working SECTION 21. Institute for Labor Studies. — The
conditions, increase their efficiency, secure opportunities Institute for Labor Studies shall be attached to the
for their profitable employment and find ways for their Department of Labor and Employment. For policy and
economic, educational, social and cultural advancement; program coordination and administrative supervision, the
Institute shall absorb the research and publication
(3) Prepare and recommend to the Secretary of Labor functions of the Institute of Labor and Manpower Studies.
and Employment the approval and issuance of such rules The Institute, to be headed by an Executive Director,
and regulations necessary in the interpretation of all laws assisted by a Deputy Executive Director, shall have the
relating to the employment of women and minors; following functions:
(4) Undertake studies and submit recommendations (1) Undertake research and studies in all areas of labor
on the employment of women and minors in and manpower policy and administration;
commercial, industrial and agricultural establishments
and other places of labor; (2) Review the rationale of existing legislation and
regulations and analyze the costs involved in the
(5) Provide legal and technical assistance on matters implementation of such legislation against the benefits
relating to working women and minors; expected to be derived;
(6) Act as the government's clearinghouse of all (3) Study and develop innovative and indigenous
information relating to working women and minors; approaches towards the promotion of harmonious and
(7) Undertake development studies on the training productive labor-management and the improvement of
needs of women and minors and develop programs and workers' welfare services;
projects to enhance their productivity and effective (4) Develop and undertake research programs and
participation in community development; projects in collaboration with other national agencies to
(8) Protect every child employed in the movie, enhance the Department's capability to participate in
television, radio and entertainment industries against national decision and policy making;
exploitation, improper influences, hazards and other (5) Enter into agreements with international or
conditions or circumstances prejudicial to his physical, bilateral agencies for the carrying out of the foregoing
mental, emotional, social and moral development. functions;
(9) Undertake projects and in-service training (6) Expand the scope of its research interests into other
programs for working children to improve their potentials countries and regions;
for employment and their capabilities and physical
fitness, increase their efficiency, secure opportunities for (7) Publish its research studies for dissemination to
their promotion, prepare them for more responsible government as well as to all concerned parties; and
positions, and provide for their social, educational and (8) Perform such other functions as may be provided
cultural advancement, in cooperation with labor and by law.
management; and SECTION 22. Bureau of Labor and Employment
(10) Perform such other functions as may be provided Statistics. — The Bureau of Labor and Employment
by law. Statistics shall:
SECTION 19. Bureau of Rural Workers. — The Bureau (1) Formulate, develop and implement plans and
of Rural Workers shall: programs on the labor statistical system in order to
(1) Assist rural workers, displaced farmers, and provide the government with timely, accurate and
migratory workers in seeking gainful employment; reliable data on labor and employment;
(2) Conduct studies and draw up programs for (2) Conduct nationwide surveys and studies which will
re-training of displaced agricultural workers; generate trends and structures on labor and
employment;
(3) Coordinate with regional offices and local
government units in preparing a census of rural workers (3) Develop and prescribe uniform statistical standards,
seeking employment; and nomenclatures and methodologies for the collection,
processing, presentation and analysis of labor and
(4) Perform such other functions as may be assigned employment data;
by the Secretary.
(4) Establish appropriate mechanisms for the
SECTION 20. Bureau of Working Conditions. — The coordination of all statistical activities in the Department
Bureau of Working Conditions shall: and for collaboration with other government and private
(1) Develop and prescribe safety standards, measures agencies including international research organizations
and devices; promote safety consciousness and habits in the conduct of surveys and studies in the area of labor
among workers; develop and evaluate occupational and employment;
safety and health programs for workers; (5) Disseminate statistical information and provide
(2) Develop plans, programs, standards and statistical services or advice to the users by establishing a
procedures for the enforcement of laws relating to labor data bank and issuing the Bureau's statistical materials
standards, including the operation of boilers, pressure and research findings;
vessels, machinery, internal combustion engines, (6) Develop and undertake programs and projects
elevators, electrical equipment, wiring installations, and geared toward enhancement of the technical
the construction, demolition, alteration and use of competence of the Department on theories, techniques
commercial and industrial buildings and other and methodologies for the improvement of the labor
workplaces; statistical system;


(7) Monitor and exercise technical supervision over the
statistical units in the Department and its agencies; and CHAPTER 5 Regional Offices
(8) Perform such other functions as may be provided SECTION 24. Regional Offices, District Offices and
by law or assigned by the Secretary. Provincial Extension Units. — The Department is hereby
SECTION 23. National Conciliation and Mediation authorized to establish, operate and maintain such
Board. — The National Conciliation and Mediation Board, Department-wide Regional Offices, District Offices and
shall absorb the conciliation, mediation and voluntary Provincial Extension Units in each of the administrative
arbitration functions of the Bureau of Labor Relations. regions of the country, insofar as necessary to promote
The Board shall be composed of an Administrator and economy and efficiency in the delivery of its services. Its
two (2) Deputy Administrators. It shall be an attached Regional Office shall be headed by a Regional Director
agency under the administrative supervision of the who shall have supervision and control thereof. The
Secretary of Labor and Employment. Regional Director, whenever necessary, shall be assisted
by an Assistant Regional Director. A Regional Office shall
The Administrator and the Deputy Administrators shall have, within its regional areas, the following functions:
be appointed by the President upon recommendation of
the Secretary of Labor and Employment. There shall be as (1) Implement laws, policies, plans, programs, projects,
many Conciliators-Mediators as the needs of the public rules and regulations of the Department;
service require, who shall have at least three (3) years of (2) Provide economical, efficient and effective service
experience in handling labor relations and who shall be to the people;
appointed by the Secretary. The Board shall have its main
office in Metropolitan Manila and its Administrator shall (3) Coordinate with regional offices of other
exercise supervision over Conciliators-Mediators and all its departments and agencies;
personnel. It shall establish as many branches as there (4) Coordinate with local government units; and
are administrative regions in the country, with as many
Conciliators-Mediators as shall be necessary for its
by law or assigned by the Secretary.
effective operation. Each branch of the Board shall be
headed by an Executive Conciliator-Mediator.
The Board shall have the following functions: CHAPTER 6 Attached Agencies
(1) Formulate policies, programs, standards, SECTION 25. Attached Agencies. — The following
procedures, manuals of operation and guidelines agencies are attached to the Department for policy and
pertaining to effective mediation and conciliation of labor program coordination and administrative supervision:
disputes; (1) National Wages Council;
(2) Perform preventive mediation and conciliation (2) Philippine Overseas Employment Administration;
functions;
(3) Employees' Compensation Commission (ECC)
(3) Coordinate and maintain linkages with other which shall include the Executive Director of the ECC as
sectors or institutions, and other government authorities an ex officio member of the Commission;
concerned with matters relative to the prevention and
settlement of labor disputes; (4) The National Manpower and Youth Council;
(4) Formulate policies, plans, programs, standards, (5) The National Labor Relations Commission;
procedures, manuals of operation and guidelines (6) Overseas Workers' Welfare Administration;
pertaining to the promotion of cooperative and (7) Maritime Training Council; and
non-adversarial schemes, grievance handling, voluntary
arbitration and other voluntary modes of dispute (8) National Maritime Polytechnic.
settlement;
(5) Administer the voluntary arbitration program; TITLE VIII National Defense
maintain or update a list of voluntary arbitrations;
compile arbitration awards and decisions;
(6) Provide counselling and preventive mediation SUBTITLE I Preliminary Provisions
assistance particularly in the administration of collective
agreements; CHAPTER 1 National Defense Policies
(7) Monitor and exercise technical supervision over the SECTION 1. Declaration of Policies. — (1) The prime
Board programs being implemented in the regional duty of the Government is to serve and protect the
offices; and people. Government may call upon the people to defend
(8) Perform such other functions as may be provided the State and, in fulfillment thereof, all citizens may be
by law or assigned by the Secretary. required, under conditions provided by law, to render
personal military or civil service.
The Tripartite Voluntary Arbitration Advisory Council,
which is attached to the National Conciliation and (2) Civilian authority is, at all times, supreme over the
Mediation Board, shall advise the National Conciliation military. The Armed Forces of the Philippines is the
and Mediation Board on matters pertaining to the protector of the people and the State. Its goal is to secure
promotion of voluntary arbitration as the preferred mode the sovereignty of the State and the integrity of the
of dispute settlement. national territory.
The Tripartite Voluntary Arbitration Advisory Council
shall consist of the Administrator of the National CHAPTER 2 National Security Council
Conciliation and Mediation Board as Chairman, one other SECTION 2. Declaration of Policies. — (1) The
member from the government, two (2) members formulation of integrated and rationalized national,
representing labor, and two (2) other members foreign, military, political, economic, social and
representing management. The members shall be educational policies, programs, and procedures is vital to
appointed by the President to serve for a term of three (3) the security of the state.
years. The Chairman and Members shall serve without
compensation. (2) The national interest requires that an agency exist
to formulate and adopt policies, programs, and
procedures on all matters pertaining to or affecting the
national security so that judgments and actions thereon


by the President may rest on sound advice and accurate on matters pertaining to national security and, whenever
information. directed by the President, see to the implementation of
SECTION 3. Mandate. — The National Security Council decisions and policies adopted by the President or the
shall serve as the lead agency of the government for National Security Council which have implications on
coordinating the formulation of policies, relating to or national security.
with implications on the national security.
SECTION 4. Composition. — The National Security CHAPTER 3 National Intelligence Coordinating Agency
Council, hereinafter referred to as Council, shall be SECTION 9. Functions. — The National Intelligence
composed of the President as Chairman, the Coordinating Agency, hereinafter referred to as the
Vice-President, the Secretary of Foreign Affairs, the Agency, shall:
Executive Secretary, the Secretary of National Defense,
(1) Serve as the focal point for coordination and
the Secretary of Justice, the Secretary of Labor and
integration of government activities involving national
Employment, the Secretary of Local Governments, the
intelligence;
National Security Director, the Chief of Staff of the Armed
Forces of the Philippines (AFP), and such other (2) Prepare intelligence estimates of local and foreign
government officials and private individuals as the situations for the formulation of national policies by the
President may appoint. President; and
SECTION 5. Powers and Functions. — In addition to (3) Provide support and assistance to the National
such specific duties and responsibilities as the President Security Council.
may direct, the Council shall: SECTION 10. The Director-General. — The Agency
(1) Advise the President with respect to the integration shall be headed by a Director-General who shall be
of domestic, foreign, military, political, economic, social, assisted by a Deputy Director-General. Both officials shall
and educational policies relating to the national security be appointed by the President and shall hold office at the
so as to enable all concerned departments and agencies pleasure of the President.
of the government to meet more effectively, problems SECTION 11. The Deputy-Director General. — The
and matters involving the national security; Deputy Director-General shall assist the Director-General
(2) Evaluate and analyze all information, events, and in the performance of official functions and, in his
incidents in terms of the risks they pose or implications absence, perform the functions of the Director-General.
upon or threats to the overall security and stability of the SECTION 12. Organizational Structure. — The
nation, for the purpose of recommending to the organization of the Agency shall consist of the following:
President appropriate action thereon;
(1) The Office of the Director-General which shall
(3) Formulate and coordinate the implementation of undertake the overall management and operation of the
policies on matters of common interest to the various various components of the agency, provide executive staff
departments, and agencies of the government support, public relations, legal service, and internal audit
concerned with the national security, and make for the Agency;
recommendations to the President in connection
therewith; (2) The Directorate for Operations, headed by the
Assistant Director-General for Operations, which shall be
(4) Insure that policies adopted by the Council on responsible for the collection of information;
national security are effectively and efficiently
implemented; and (3) The Directorate for Production, headed by the
Assistant Director-General for Production, which shall be
(5) Make such recommendations or render such other responsible for the preparation of intelligence estimates
reports as the President may from time to time require. and other reports, and the maintenance of automated
SECTION 6. Executive Committee. — The Council shall data processing for the Agency;
have an Executive Committee composed of the President (4) The Directorate for Administration, headed by the
as Chairman, and the Vice-President and Secretary of Assistant Director-General for Administration, which shall
Foreign Affairs, the Executive Secretary, the Secretary of be responsible for personnel and training, transportation
National Defense, the National Security Director, the Chief and communications, supplies and materials, grounds
of Staff of the Armed Forces of the Philippines and such and buildings maintenance, security, and other support
other members or advisers as the President may appoint services;
from time to time.
(5) The Management and Planning Office which shall
The Executive Committee shall review national formulate plans, policies and programs on the direction,
security and defense problems and formulate positions or integration and coordination of national intelligence
solutions for consideration by the Council. It shall activities and on the operation and management
determine the agenda and order of business of the improvement of the Agency;
Council, and shall ensure that decisions of the Council are
clearly communicated to the agencies involved. It shall (6) The Office of the Comptroller which shall provide
advise the President on the implementation of decisions. financial management and control for the Agency; and
To carry out the functions of the Executive Committee, (7) As many Field Stations as may be determined by
the Chairman shall utilize the facilities and expertise of the Director-General which shall undertake intelligence
any of the government agencies and instrumentalities collection activities and provide reports necessary for the
and shall promulgate rules and regulations to govern the preparation of assessments and estimates.
operations of the Executive Committee. The organization and staffing pattern of the Agency
SECTION 7. Secretariat. — The Council shall have a shall be recommended by the Director-General for
permanent Secretariat which shall be under the approval of the President.
supervision and control of the National Security Director. SECTION 13. Administrative Supervision By the
The National Security Director shall be assisted by a National Security Council. — The Agency shall be under
Deputy who, like the National Security Director, shall be the administrative supervision of, and give support
appointed by, and serve at the pleasure of, the President. services to, the National Security Council; however, the
The National Security Director shall attend and agency may report directly to the President, as the
participate in meetings of the Cabinet and have the President may require.
privileges of a member thereof.
SECTION 14. National Intelligence Board. — (1) The
SECTION 8. Duties of Director. — Among other duties, National Intelligence Board shall serve as an advisory
the National Security Director shall advise the President body to the Director of the Agency, on matters pertaining



to the integration and coordination of intelligence Staff for Strategic Assessment, Staff for Comptrollership,
activities, and shall make recommendations on such Staff for Personnel, and the Legal Service.
matters as the Director may from time to time submit to SECTION 22. The Service Staff . — The Service Staff
it for consideration. shall be composed of the Administrative Services Office,
(2) The members of the National Intelligence Board and Information Management Office.
shall be appointed by the President. The National Security SECTION 23. Personal Staff . — There shall be a
Director may sit in all meetings of the Board. Personal Staff as may be determined by the Secretary.
SUBTITLE II Department of National Defense CHAPTER 3 Government Arsenal

SECTION 24. Organization. — The Government
CHAPTER 1 General Provisions Arsenal shall be headed by a Director who shall be
SECTION 15. Declaration of Policy. — The defense assisted by one or more Assistant Directors. It shall have
establishment shall be maintained to maximize its staff and operating units provided by law.
effectiveness for guarding against external and internal SECTION 25. Qualification. — The Director and
threats to national peace and security, and provide Assistant Directors shall have the expertise, training or
support for social and economic development. experience in the field of munitions.
SECTION 16. General Military Council. — The General SECTION 26. Functions. — (1) The Arsenal shall:
Military Council shall advise and assist the Secretary in
the formulation of military policies and shall consider and (1) Establish, operate, and maintain government
report on such other matters as the Secretary may direct. arsenal;
The Council shall be composed of the Secretary as (2) Formulate plans and programs to achieve
Chairman; and the Undersecretary of National Defense, self-sufficiency in arms, mortars and other weapons and
the Chief of Staff, the Vice-Chief of Staff, the Assistant munitions;
Chief of Staff of the Armed Forces of the Philippines, and
(3) Design, develop, manufacture, procure, stockpile,
the Commanders of the Major Services, as members. The
and allocate arms, mortars and other weapons and
Deputy Chief of Staff of the Armed Forces of the
munitions without the necessity of obtaining any permits
Philippines shall be the Secretary of the Council.
or licenses, and devise ways and means for the efficient
SECTION 17. Prohibition on Detail of AFP Personnel. mobilization of civilian industry to augment the
— No member of the armed forces in the active service production of the Arsenal in times of emergency; and
shall, at any time, be appointed or designated in any
capacity to a civilian position in the Government
by law.
including government-owned or controlled corporations
or any of their subsidiaries.
CHAPTER 4 Office of Civil Defense
Department shall be composed of the Secretary, the SECTION 27. Organization. — The Office of Civil
Undersecretary and Assistant Secretaries and their Defense shall be headed by an Administrator who shall
immediate staffs as determined by them respectively, be assisted by a Deputy Administrator. The Office shall
and such other bodies as are provided by law. have staff and operating units as may be provided by law.
The Government Arsenal, Office of Civil Defense, SECTION 28. Functions. — The Office shall:
Philippine Veterans Affairs Office, Armed Forces of the (1) In times of war and other national emergencies of
Philippines, National Defense College of the Philippines equally grave character, coordinate the activities and
and the Integrated National Police shall be under the functions of various government agencies and
supervision and control of the Department, except as instrumentalities, as well as of private institutions and
may be provided by special laws. civic organization devoted to public welfare to maximize
the utilization of the facilities and resources of the entire
CHAPTER 2 Department Proper nation for the protection and preservation of the civilian
population and property;
SECTION 19. Office of the Secretary. — The Office of
the Secretary shall consist of the Secretary and his (2) Establish and administer a comprehensive national
immediate staff as determined by him. civil defense and assistance program to include the
estimation of the total material, manpower and fiscal
SECTION 20. Office of the Undersecretary. — The
requirements for carrying out the said program and
functions of the Undersecretary shall be as follows:
coordinate the allocation to local government units such
(1) Advise and assist the Secretary in the formulation aid in facilities, materials and funds as may be made
and implementation of Department's objectives and available by the national government;
policies;
(3) Furnish guidance and coordinate the activities of
(2) Oversee all the operational activities of the the national government, local governments, private
Department for which he shall be responsible to the institutions and civic organizations for civil preparedness;
Secretary;
(4) Develop and coordinate a program for informing,
(3) Coordinate the programs and projects of the educating and training the public on civil defense
Department, and be responsible for its economical, measures and activities; and
efficient, and effective administration;
(4) Serve as deputy to the Secretary, in all matters by law.
relating to the operations of the Department; and
SECTION 29. Operating Services. — The Administrator
(5) Perform such other functions as may be provided shall, subject to the approval of the Secretary of National
by law. Defense, prescribe the organization, functions, duties and
When the Secretary is unable to perform his duties responsibilities of civil defense units on the national and
owing to illness, absence, or other cause, as in case of local government levels, in connection with the various
vacancy in the Office, the Undersecretary shall operating units for civil defense. Civil defense operating
temporarily perform the functions of said Office. units shall be established for the national and local
government defense organizations. The local units shall
SECTION 21. Executive Staff . — The Executive Staff operate under the supervision and control of the
shall be composed of the Staff for Plans and Programs,
Staff for Installation and Logistics, Staff for Public Affairs,



respective heads of the local government civil defense (2) The Standing Force shall be composed of regular
organizations to which they appertain. officers and enlisted personnel; reservists called to active
SECTION 30. Basic, Technical and Administrative duty; draftees; trainees and government-sponsored
Services. — Filipino cadets enrolled in local or foreign military schools.
In time of peace, the size and composition of the
(1) The basic services of the AFP shall be composed of Standing Force shall be prescribed by the Secretary of
the Major Services. Enlisted personnel of the standing National Defense, upon recommendation of the Chief of
force and the reserve force must belong to one of the Staff.
basic services.
(3) The Citizen Armed Force shall be composed of all
(2) The technical services of the AFP shall be reservists, and officers and enlisted men on inactive
composed of the Medical Corps, Dental Service, Nurse status. All able-bodied citizens shall undergo military
Corps, Veterinary Corps and the Judge Advocate General training, after which they shall become reservists with
Service. appropriate ranks. All reservists in a particular locality
(3) The administrative services shall consist of the shall be organized into reserve geographical units subject
Chaplain Service, Women Auxiliary Corps, Medical to call and mobilization as the need arises, individually or
Administrative Corps and the Corps of Professors. as a unit. The Secretary of National Defense shall
prescribe and implement a continuing program of
(4) Appropriate military occupational specialties may recruitment and training for the Citizen Armed Force to
be prescribed by the Chief of Staff for each of the basic, enable it to respond to all types of threats to national
technical and administrative services. security.
(5) Appointment of officers to the basic, technical and SECTION 35. Organizational Structure. — The AFP
administrative services, and enlistment in the basic shall consist of the General Headquarters; the Major
service shall be governed by rules and regulations Services namely: the Philippine Army, the Philippine Air
prescribed by the Secretary of National Defense. Force, the Philippine Navy and, until otherwise provided
by law, the Philippine Constabulary; and other existing
CHAPTER 5 Philippine Veterans Affairs Office units, services and commands of the AFP. The Secretary
of National Defense may, in accordance with the policies
SECTION 31. Organization. — The Philippine Veterans or directives of the President, create additional units,
Affairs Office shall be headed by an Administrator who services and commands, or reorganize the AFP in
may be assisted by one Deputy Administrator. It shall response to any situation or in pursuance of operational
have staff and operating units provided by law. or contingency plans. No Major Service may be unfilled,
SECTION 32. Functions. — The Office shall: inactivated or merged with another Major Service,
without the approval of the Congress.
(1) Formulate and promulgate, subject to the approval
of the Secretary of National Defense, policies, rules and SECTION 36. Basic, Technical and Administrative
regulations governing the adjudication and Service. — (1) The basic services of the AFP shall be
administration of veterans claims and benefit; composed of the major services. Enlisted personnel of the
standing force and the reserve force must belong to one
(2) Adjudicate and administer benefits, pensions and
of the basic services.
other privileges granted to veterans, their heirs and
beneficiaries; (2) The technical services of the AFP shall be
composed of Medical Corps, Dental Service, Nurse Corps,
(3) Provide medical care and treatment to veterans
Veterinary Corps and the Judge Advocate General
pursuant to existing law;
Service.
(4) Administer, develop, and maintain military shrines;
(3) The administrative service shall consist of the
(5) Formulate policies concerning the affairs, Chaplain Service, Women Auxiliary Corps, Medical
placement and training of ex-servicemen, and assist their Administrative Corps and the Corps of Professors.
widows and dependents, and other retired military
(4) Appropriate military occupational specialties may
personnel; and
be prescribed by the Chief of Staff for each of the basic,
(6) Perform such other functions as may be provided technical and administrative services.
by law.
(5) Appointment of officers to the basic, technical and
administrative services, and enlisted in the basic service
CHAPTER 6 Armed Forces of the Philippines shall be governed by rules and regulations prescribed by
SECTION 33. Functions. — The Armed Forces of the the Secretary of National Defense.
Philippines (AFP) shall: SECTION 37. The Citizen Armed Force. — (1) The
(1) Uphold the sovereignty, support the Constitution, Secretary of National Defense shall cause the
and defend the territory of the Republic of the Philippines organization of the Citizen Armed Force into
against all enemies, foreign and domestic; Geographical Units throughout the country. The Citizen
Armed Force Geographical Units shall consist of cadre of
(2) Promote and advance the national aims, goals, officers and men in the Standing Force and all qualified
interests and policies; reservists residing in a particular locality. The cadre may,
(3) Plan, organize, maintain, develop and deploy its however, be assigned to another unit in the active force
regular and citizen reserve forces for national security; while the Geographical Units to which they are assigned
and are on inactive status.
(4) Perform such other functions as may be provided (2) Whenever dictated by military necessity, and upon
by law or assigned by higher authorities. the recommendation of the Secretary of National
Defense and approved by the President, the Citizen
SECTION 34. Composition. — (1) The AFP shall be Armed Force may be called or mobilized to complement
composed of a citizen armed force which shall undergo the operations of the regular force of the AFP or to
military training and serve, as may be provided by law. It support the regular force formations or units. For this
shall be organized and maintained in a manner that shall purpose, Active Auxiliary Units which shall be part of the
render it capable of rapid expansion from a peacetime Citizen Armed Force Geographical Units, may be utilized,
organization to a wartime or emergency organization. to be constituted out of volunteers to be screened in
The AFP shall keep a regular force necessary for the consultations with the local executives and civic business
security of the State. The officers and men of the regular leaders. The status of Active Auxiliary Units shall be of a
force shall be recruited proportionately from all provinces degree of activation of military reservists short of full
and cities as far as practicable.



active duty status. They shall not be vested with requirements, and general strategic guidance for the
law-enforcement or police functions. development of military force;
(3) All members of the Citizen Armed Force on training (12) Advise and assist the Secretary of National Defense
or service shall be subject to military law and the Articles on research and engineering matters by submitting
of War. periodic reports on board strategic guidance, overall
SECTION 38. Tactical and Territorial Organization. — military requirements, and relative military importance of
Unless otherwise prescribed by law, the major services development activities to meet the needs of the AFP;
and other units of the AFP may be organized into such (13) Prepare and submit to the Secretary of National
commands, forces and organizations as may be Defense recommendations to appropriate agencies
prescribed by the Secretary of National Defense. For this concerning general strategic guidance for the
purpose, the territory of the Philippines may be divided development of industrial mobilization programs;
into such tactical and geographical areas and zones or (14) Formulate policies and guidelines on the
regions and districts as the Secretary of National Defense organization of the Major Services and other elements of
may direct. the military establishment, the training of military forces,
SECTION 39. Organizational Principles. — The the employment of forces in the prosecution of tasks
organizational structure of the AFP shall provide for: required by law, and the employment of forces to assist
(1) Centralized direction and control of General government agencies in the implementation of laws and
Headquarters to insure unity and coordination of efforts regulations when so directed by higher authorities; and
throughout the military establishment; (15) Perform such other functions as may be provided
(2) Decentralized execution of operations to the Major by law or assigned by higher authorities.
Services and other separate units to achieve maximum SECTION 41. Composition. — The General
operational efficiency within the military establishment; Headquarters shall be the command and control element
(3) Common doctrine, standardized procedures and of the AFP. It shall be composed of the Office of the Chief
techniques throughout the military establishment to of Staff, Office of the Vice-Chief of Staff, the AFP General
assure common understanding among all its forces and Staff, and other staff offices and units necessary for
elements, facilitating thereby the attainment of effective command and control of the AFP.
maximum operational efficiency and effectiveness; SECTION 42. The Chief of Staff . — (1) The Chief of
(4) Development of self-reliance concepts for each Staff, under the authority and direction of the President
Major Service to insure national defense and security and and the Secretary of National Defense shall be
maximum utilization of resources; and responsible for the development and execution of the
national defense programs and armed forces mission;
(5) Development of the capability to participate in the and prescribe, in accordance with policies of the
infrastructure projects of the government. Secretary of National Defense, the organization, powers,
functions and duties of the various staffs, services,
CHAPTER 7 General Headquarters installations and other units of the AFP.
SECTION 40. Functions. — The General Headquarters, (2) The President shall nominate and with the consent
AFP, shall: of the Commission on Appointments, appoint the Chief
of Staff from among the general and flag officers of the
(1) Serve as military advisor and staff to the Secretary of basic services. He shall hold the grade of general
National Defense; (Four-Star) and shall if eligible be retired in such a grade,
(2) Prepare strategic plans and provide for the strategic upon relief from his assignment.
direction of the AFP, including the direction of operations (3) The tour of duty of the Chief of Staff shall not
of unified or specified commands; exceed three (3) years. However, in times of war or other
(3) Prepare integrated logistic responsibilities in national emergency declared by the Congress, the
accordance with those plans; President may extend such tour of duty.
(4) Prepare integrated plans for military mobilization; SECTION 43. Vice-Chief of Staff . — The Vice-Chief of
Staff shall be the principal assistant of the Chief of Staff
(5) Provide adequate, timely and reliable joint and shall perform the functions of the Chief of Staff
intelligence for use within the Department; during the latter's absence or disability. He shall be
(6) Review major personnel, material and logistic appointed in the same manner as the Chief of Staff and
requirements of the AFP in relation to strategic and shall hold the grade of Lieutenant General (Three-Star).
logistic plans; He shall be retired in that grade if eligible for retirement
after his relief from his assignment, unless appointed as
(7) Review plans and programs of the Major Services
Chief of Staff.
and separate units to determine their adequacy,
feasibility and suitability for the performance of their SECTION 44. The AFP General Staff . — The AFP
respective detailed plans; General Staff shall advise and assist the Chief of Staff in
the performance of his functions and in the
(8) Participate in the preparation of combined plans or
accomplishment of the tasks of the General
military action in conjunction with the armed forces of
Headquarters. It shall be headed by the Deputy Chief of
other nations;
Staff, who shall be appointed by the Chief of Staff. The
(9) Recommend to the Secretary of National Defense AFP General Staff shall be a joint staff. The various General
the establishment and force structure of unified or Staff Offices shall each be headed by a Deputy Chief of
specified commands; Staff whose appointment and tenure shall be determined
(10) Determine the headquarters support, such as by the Chief of Staff. The organization, functions and
facilities, personnel and communications required by duties of the General Staff shall be prescribed by the
unified or specified commands, and assign the Chief of Staff.
responsibility of providing that support to appropriate SECTION 45. Authority to Reorganize the General
Major Services; Headquarters. — (1) The Secretary of National Defense,
(11) Prepare and submit to the Secretary of National upon recommendation of the Chief of Staff in the interest
Defense for his consideration in the preparation of of efficiency and economy, may:
budgets and statements of military requirements based (a) Establish and organize staffs, offices and units in
upon strategic war plans, tasks, priority of tasks, force the General Headquarters in addition to the Armed


Forces General Staff, and prescribe the titles, functions (5) Perform such other functions as may be provided
and duties of their members; by law or assigned by higher authorities.
(b) Abolish existing staffs, offices and units in the SECTION 52. The Philippine Navy. — The Philippine
General Headquarters not specifically provided in this Navy shall be responsible for the naval defense of the
Chapter or by any other provision of law, or transfer or Philippines. It shall be organized as prescribed by the
consolidate their functions and duties with other staffs, Secretary of National Defense, upon recommendation of
offices or units; and the Chief of Staff.
(c) Abolish the position of any Deputy Chief of Staff or SECTION 53. Functions. — The Philippine Navy shall:
any general staff office and transfer or consolidate its (1) Organize, train and equip forces for prompt and
functions and duties with those of another Deputy Chief sustained naval operations;
of Staff or General Staff Office.
(2) Prepare the necessary naval units for the effective
(2) If the President does not prescribe otherwise, the enforcement of all applicable laws upon the Philippine
organization, functions, and duties of various staffs, seas and waters, the prosecution of national defense
offices and units in the General Headquarters shall plans and programs and armed forces missions, including
continue as provided under existing laws and regulations the expansion of a peacetime navy component to meet
not in conflict with provisions of this Chapter. any emergency;
(3) Formulate and develop doctrines, concepts,
CHAPTER 8 Major Services systems, policies, procedures, strategies, tactics and
SECTION 46. Organization.— The Major Services shall techniques for operations peculiar to the Navy;
be organized by the Chief of Staff in accordance with the (4) Enforce laws and regulations pertaining to
policies laid down by the Secretary of National Defense. navigation safety of life at sea, immigration, customs
The commanders of the Major Services shall hold such revenues, narcotics, quarantine, fishing and neutrality of
grade as provided by law, and shall be appointed by the the territorial contiguous waters of the Philippines;
President upon the recommendation of the Secretary of
National Defense. (5) Organize, train and equip all naval reserve units;
and
SECTION 47. General Provisions. — The Secretary of
National Defense, upon recommendation of the Chief of (6) Perform such other functions as may be provided
Staff, AFP, shall assign to the Major Services specific by law of assigned by higher authorities.
functions in support of the overall responsibilities of the SECTION 54. The Philippine Coast Guard. — The
AFP and the Department. Philippine Coast Guard shall remain as a major
SECTION 48. The Philippine Army. — The Philippine subordinate unit of the Philippine Navy and assigned
Army shall be responsible for the conduct of operations functions pertaining to safety of life at sea as vested in it
on land, in coordination with the other Major Services. It by law.
shall be organized as prescribed by the Secretary of SECTION 55. The Philippine Constabulary. — Unless
National Defense, upon recommendation of the Chief of otherwise provided by law, the Philippine Constabulary,
Staff. as the national police force, shall be primarily responsible
SECTION 49. Functions. — The Philippine Army shall: for the preservation of peace and order and the
enforcement of laws throughout the Philippines. It shall
(1) Organize, train and equip forces for the conduct of be organized, trained and equipped primarily as a law
prompt and sustained operations on land; enforcement agency. It shall be organized as prescribed
(2) Prepare such units as may be necessary for the by the Secretary of National Defense upon
effective prosecution of the national defense plans and recommendation of the Chief of Staff.
programs and armed forces missions, including the SECTION 56. Functions. — (1) The Philippine
expansion of the peacetime army component to meet Constabulary shall:
any emergency;
(a) Prevent and suppress lawless violence, rebellion,
(3) Develop, in coordination with the other Major insurrection, riots, brigandage, breaches of the peace and
Services, tactics, techniques and equipment of interest to other disturbances, and see to it that perpetrators of
the army for field operations; those offenses are brought to justice;
(4) Organize, train and equip all army reserve units; (b) Organize, train, equip and prepare its forces for
and effective law enforcement operations and police duties;
(5) Perform such other functions as may be provided (c) Organize, train and equip constabulary draftees,
by law or assigned by higher authorities. reservists and reserve units;
SECTION 50. The Philippine Air Force. — The (d) Develop tactics, techniques, organization, weapons,
Philippine Air Force shall be responsible for the air equipment and supplies essential to the accomplishment
defense of the Philippines. It shall be organized as of its missions; and
prescribed by the Secretary of National Defense, upon
recommendation of the Chief of Staff. (e) Perform such other functions as may be provided
by law or assigned by higher authorities.
SECTION 51. Functions. — The Philippine Air Force
shall: (2) In times of war or national emergency, the
Philippine Constabulary or any of its subordinate units
(1) Organize, train, and equip forces for prompt and may be employed jointly with, or in support of the
sustained air operations for the defense of the operations of, the other Major Services, as the President
Philippines; may direct.
(2) Organize, train, and equip for airlift, airborne and SECTION 57. Authority of Constabulary Officers and
tactical air operations unilaterally or in coordination with Enlisted Personnel. — (1) Commissioned officers and
surface forces; enlisted personnel of the Philippine Constabulary, as
(3) Formulate and develop doctrines, concepts, peace officers, shall execute lawful warrants and orders of
systems, policies, procedures, strategies, tactics and arrest issued against any person for any violation of law.
techniques for operations peculiar to the Air Force; (2) The Philippine Constabulary shall have police
(4) Organize, train, and equip all air force reserve units; jurisdiction throughout the Philippines.
and (3) When the constabulary forces in any area are
unable to cope effectively with violations of law, the



Secretary of National Defense in accordance with the designated by the President subject to the approval of
policies or directives of the President, may assign or detail the Secretary of National Defense.
commissioned officers and enlisted personnel of the (5) All resource persons of the College including but
Army, Air Force, or Navy, to the Philippine Constabulary or not limited to academic consultants, professors, lecturers,
any of its subordinate units. The officers and enlisted instructors, thesis advisers, members of examining and
personnel so assigned or detailed shall have the authority evaluating panels, examiners, correctors, and technicians
and duties of peace officers and shall be governed by the who are regularly employed in the Government shall, in
provisions of this section for the duration of their addition to their salaries, be entitled to receive honoraria,
assignment or detail. fees and other emoluments fixed by the Secretary of
National Defense.
CHAPTER 9 Philippine Military Academy SECTION 61. Powers and Functions. — (1) The College
SECTION 58. Organization. — (1) The Philippine shall train and develop the skills and competence of
Military Academy is the primary training and educational potential national defense leaders, civilian officials of the
institution of the AFP. It shall be the primary source of different agencies and instrumentalities of the
regular officers of the Standing Force. Government, and selected executives from the private
sector in the formulation and implementation of national
(2) The Academy shall be organized as prescribed by
security policies, and for high command and staff duty.
the Secretary of National Defense, upon
recommendation of the Chief of Staff, AFP. (2) The College shall have the power to confer the
degree of Master in National Security Administration
(3) The student body of the Academy shall be known
(MNSA) upon all its students who have satisfactorily
as the Cadet Corps of the Armed Forces of the Philippines
completed the prescribed course of study.
(CCAFP) and shall have such strength as the Secretary of
National Defense shall determine upon the SECTION 62. Graduates of the Regular Course of the
recommendation of the Chief of Staff, and within the College. — (1) Graduates of the College will receive for
strength limited by the annual Appropriation Act. purposes of promotion to key and sensitive positions in
the military and civilian offices, preferential consideration
(4) There shall be an Academic Board organized by the
and/or credit points in the grade or class of their
Chief of Staff, which shall be composed of not more than
respective positions.
fifteen (15) members selected from the officers of the
Academy upon recommendation of the Superintendent. (2) All civilian graduates who are holders of the degree
The Board shall, in accordance with the rules and of Master in National Security Administration shall qualify
regulations prescribed by the Chief of Staff, have the for appointment to the initial rank of Lieutenant Colonel
power to confer baccalaureate degrees upon the cadets in the reserve force of the Armed Forces of the
who satisfactorily complete the approved course of study. Philippines.
SECTION 59. Functions. — The Academy shall prepare (3) Authority to use with honor the abbreviation MNSA
the candidates for commission in the regular force of the after their names is hereby given to all graduates of the
AFP and shall instruct, train and develop cadets so that regular course of the College.
each graduate shall possess the character, the broad and
basic military skills and the education essential to the CHAPTER 11 Integrated National Police
successful pursuit of a progressive military career.
SECTION 63. Composition. — Unless otherwise
provided by law, the Integrated National Police shall be
CHAPTER 10 National Defense College of the Philippines composed of the Philippine Constabulary as the nucleus,
SECTION 60. Organization and Administration. — (1) and the Integrated Police Force, Fire Services and Jail
The National Defense College of the Philippines, hereafter Management Services as components, under the
referred to as the College, shall be under the direction, Department of National Defense.
supervision and control of the Secretary of National SECTION 64. Organizational Structure. — The Chief of
Defense. Constabulary shall prescribe, subject to the approval of
(2) The College shall be headed by a President who the Secretary of National Defense, the table of
shall administer the affairs of the College with the organization and equipment, ranks and position titles,
assistance of an Executive Vice-President, a functions, duties and powers of the various staffs,
Vice-President for Academic Affairs, a Vice-President for services, installations and other units of the Integrated
Administrative Affairs and a Vice-President for Research National Police. The different headquarters of the
and Special Studies. The Executive Vice-President shall Philippine Constabulary in the national, zone or regional
act for the President in his absence and shall perform and provincial levels shall be the nuclei of the
such other functions as may be assigned to him by the corresponding headquarters of the Integrated National
President. Police. The appropriate offices in the different
headquarters levels may be jointly staffed by the
(3) The Vice-President for Academic Affairs shall be
constabulary, police, jail and fire service officers and
responsible for the development, implementation,
personnel so that an integrated police and public safety
supervision and evaluation of academic programs; the
services would be effectively discharged.
Vice-President for Administrative Affairs, for the overall
administrative support to all the activities of the College; SECTION 65. Head of the Integrated National Police.
and the Vice-President for Research and Special Studies, — The Chief of Constabulary to be known as
on the conduct of research work and special studies. Director-General shall be the head of the Integrated
National Police. He shall have command of all elements
(4) The College shall have an Academic Board to assist
thereof. He may issue from time to time instructions
the President discharge the following functions:
regarding personnel, funds, records, property,
(a) Supervise the academic affairs of the College; correspondence and such other matters to carry out the
(b) Recommend academic consultants, professors, provisions of this Chapter. As Director-General, the Chief
lecturers, instructors, research assistants and other of Constabulary shall be assisted by the Deputy Chiefs of
resource persons of the College; and Constabulary, the general staff and the special,
administrative and technical staffs of the Philippine
(c) Recommend the courses of studies to be Constabulary.
conducted by the College to accomplish its objectives.
SECTION 66. Functions. — The Integrated National
The Board shall be composed of the Vice-President for Police shall:
Academic Affairs as Chairman, and the Heads of the
various academic disciplines as members, who shall be (1) Enforce law and maintain peace and order;


(2) Insure public safety; to all the people at affordable cost; establish and maintain
(3) Prevent and control fires; an effective food and drug regulatory system; and
undertake appropriate health manpower development
(4) Administer city and municipal jails; and and research, responsive to the country's health needs
(5) Perform such other functions provided by law or and problems.
assigned by higher authorities. SECTION 2. Mandate. — The Department shall be
SECTION 67. Authority of the President Over the primarily responsible for the formulation, planning,
Integrated National Police. — In the exercise of its power implementation, and coordination of policies and
to maintain peace, law, order, and public safety, the programs in the field of health. The primary function of
Integrated National Police shall be subject to the the Department is the promotion, protection,
command and supervision and control of the President preservation or restoration of the health of the people
and shall function directly under the Secretary of National through the provision and delivery of health services and
Defense. through the regulation and encouragement of providers
of health goods and services.
CHAPTER 12 Attached Agencies SECTION 3. Powers and Functions. — The
Department shall:
SECTION 68. Attached Agencies. — Agencies which
are attached to the Department shall operate in (1) Define the national health policy and formulate
accordance with their respective organizational and implement a national health plan within the
structures and perform the functions and duties assigned framework of the government's general policies and
to them by law, subject to the requirements of economy, plans, and present proposals to appropriate authorities on
efficiency, and effectiveness. national issues which have health implications;
(2) Provide for health programs, services, facilities and
other requirements as may be needed, subject to
SUBTITLE III The National Police Commission availability of funds and administrative rules and
SECTION 69. Declaration of Policy. — (1) The State regulations;
shall establish and maintain one police force which shall (3) Coordinate or collaborate with, and assist local
be national in scope and civilian in character, to be communities, agencies and interested groups including
administered and controlled by a national police international organizations in activities related to health;
commission and shall provide, by law, the authority of
local executives over the police units in their jurisdiction. (4) Administer all laws, rules and regulations in the
field of health, including quarantine laws and food and
(2) The maintenance of peace and order, the drug safety laws;
protection of life, liberty, and property, and the promotion
of the general welfare are essential for the enjoyment by (5) Collect, analyze and disseminate statistical and
all the people of the blessings of democracy. other relevant information on the country's health
situation, and require the reporting of such information
SECTION 70. The National Police Commission. — from appropriate sources;
Unless otherwise provided by law, the National Police
Commission shall be under the control and supervision of (6) Propagate health information and educate the
the Office of the President and shall continue to operate population on important health, medical and
in accordance with its present organizational structure environmental matters which have health implications;
and perform the functions and duties assigned to it by (7) Undertake health and medical research and
law. conduct training in support of its priorities, programs and
SECTION 71. Powers and Functions. — As provided by activities;
law, the Commission shall exercise the following (8) Regulate the operation of and issue licenses and
functions: permits to government and private hospitals, clinics and
(1) Investigate, decide, and review administrative cases dispensaries, laboratories, blood banks, drugstores and
against members of the Integrated National Police; such other establishments which by the nature of their
functions are required to be regulated by the
(2) Adjudicate death and permanent disability benefit Department;
claims of members of the Integrated National Police;
(9) Issue orders and regulations concerning the
(3) Administer appropriate examinations for the police, implementation of established health policies; and
fire and jail services;
(4) Attest appointments of members of the Integrated by law.
National Police;
(5) Inspect and audit the performance of the Department shall consist of the Department Proper,
Integrated National Police; National Health Facilities, Regional Offices, Provincial
(6) Prepare a National Crime Prevention Program and Health Offices, District Health Offices and Local Health
coordinate its implementation upon approval by the Agencies.
President; and
(7) Perform other duties provided by law or assigned CHAPTER 2 Department Proper
by higher authorities.
SECTION 5. Department Proper. — The Department
Proper shall be composed of the Office of the Secretary,
TITLE IX Health the Office for Management Services, the Office for Public
Health Services, the Office for Hospital and Facilities
Services, the Office for Standards and Regulations, and
CHAPTER 1 General Provisions the Executive Committee for National Field Operations.
SECTION 1. Declaration of Policy. — The State shall SECTION 6. Office of the Secretary. — The Office of
protect and promote the right to health of the people and the Secretary shall be composed of the Secretary of
instill health consciousness among them; adopt an Health and his immediate staff; the Undersecretary
integrated and comprehensive approach to health acting as Chief of Staff in the Office of the Secretary; the
development, with priority for the underprivileged sick, Assistant Secretary for Legal Affairs; the Assistant
elderly, disabled, women, and children; endeavor to make Secretary for Financial, Operations and Front Line
essential goods, health and other social services available Services Audit; and the Staff Services for the Secretary.


SECTION 7. Duties of the Undersecretary Acting as (4) Coordinate the functions and activities of the units
Chief of Staff . — The Undersecretary acting as Chief of under their authority with that of the Undersecretaries
Staff in the Office of the Secretary, shall supervise the and regional health directors;
Assistant Secretary for Legal Affairs, the Assistant (5) Exercise delegated authority on substantive and
Secretary for Financial Operations, and Front Line administrative matters related to the functions and
Services Audit, and the Staff Support Services to the activities of agencies under their office to the extent
Secretary; and head the secretariat of the Executive granted by the Secretary through administrative
Committee for National Field Operations. issuances;
SECTION 8. Duties of the Assistant Secretary for (6) Perform such other functions as may be provided
Legal Affairs. — The Assistant Secretary for Legal Affairs by law or appropriately assigned by the Secretary.
shall head the office that shall provide the Secretary with
legal advice on all policy, program and operational
matters of the Department; act as Counsel for the CHAPTER 3 Department Services
Department in cases in which it is a party; handle
SECTION 12. Office for Management Services. — The
administrative cases against Department personnel and
Office for Management Services, headed by an
submit recommendations pertaining thereto; and review
Undersecretary who shall be supported by an Assistant
legislative proposals.
Secretary, shall include six (6) staff services involved in
SECTION 9. Duties of the Assistant Secretary for providing support services to the Department Proper,
Financial Operation. — The Assistant Secretary for field offices and attached agencies, which are as follows:
Financial Operations, and Front Line Services Audit shall
(1) Financial Services which shall provide the
head the office that shall monitor the Department's
Department with staff advice and assistance on
financial affairs, internal operations, and the delivery of
accounting, budget and financial matters; supervise the
frontline services with a view to assuring the integrity of
coordinated preparation and implementation of annual
the Department's financial operations and the
and long term financial and work plan and budget
requirements of the Commission on Audit; optimizing the
estimates; conduct periodic department-wide
internal operating efficiency of the Department and its
performance and financial reviews; and design and
field offices; and ensuring that the Department's
implement improvements in financial management
constituencies are provided front line services from the
systems, procedures and practices;
Department with the adequacy, quality, and efficiency
that they are entitled to. (2) Management Advisory Service which shall provide
staff advice and assistance on internal control and
SECTION 10. The Staff Support Services. — The
management system improvement, including
following Staff Support Services shall undertake such
management information systems; supervise the
staff services intended to assist the Secretary in
establishment of a management accounting system,
performing his functions;
control procedures and management information
(1) Community Health Service which shall provide systems for improved decision-making;
services related to formulating and implementing plans
(3) Health Manpower Development and Training
and programs for coordinating with local governments
Service which shall formulate plans, policies, programs,
and non-government organizations in health related
standards and techniques for the effective and efficient
activities, programs and projects;
manpower development and training of Department
(2) Public Information and Health Education Service personnel; provide consultative, training and advisory
which shall provide services related to formulating and services to implementing agencies; conduct studies and
implementing plans, programs, and projects for public research related to health manpower development and
education on health and for the timely and accurate training; and develop plans and programs for improved
public communication of Department policy on health recruitment, deployment, development, and
issues; maintenance of personnel;
(3) Health Intelligence Service which shall provide (4) Procurement and Logistics Service which shall
services related to the formulation of disease intelligence, undertake the central procurement of the health care
assessment of the state of health of the country and products and supplies needed by the Department and its
development and maintenance of effective and field offices which are not produced by or beyond the
comprehensive health information systems to support production capacity of its in-house production facilities;
planning and implementation of health programs; and ensure the proper, adequate and timely flow of
(4) Internal Planning Service which shall provide the health products and services to the Department's field
Department with necessary services related to planning, offices;
programming and project development; (5) Biological Production Services which shall
(5) Foreign Assistance Coordination Service which shall formulate plans, policies, programs, standards and
provide staff services related to the development, techniques for the processing, manufacture,
coordination, monitoring, reporting and assessment of standardization, and improvement of biological products
foreign-assisted projects of the Department. for Departmental use; manufacture vaccines, sera,
anti-toxins, and other biologicals; provide consultative,
SECTION 11. Undersecretaries. — The Secretary shall training and advisory services to implementing agencies;
be assisted by five (5) Undersecretaries who shall exercise and conduct studies and research related to biological
the following functions; production, distribution and use;
(1) Advise the Secretary in the promulgation of (6) Administrative Service which shall provide the
Department orders, administrative orders and other Department with efficient and effective services relating
issuances; to personnel, records, collections, disbursements, security,
(2) Exercise supervision and control over the offices, custodial work, and other general services not covered by
services, operating units and individuals under their the preceding Services.
authority and responsibility;
(3) Recommend the promulgation of rules and CHAPTER 4 Offices and Bureaus
regulations, consistent with Department policies, that will SECTION 13. Office for Public Health Services. — The
effectively implement the activities of operating units Office for Public Health Services, headed by an
under their authority and responsibility; Undersecretary, shall include ten (10) staff services
involved in policy formulation, standards development,
program development, and program monitoring of



disease control and service delivery programs assistance in the operations of hospitals and the
implemented by the field offices. The Undersecretary for management of facilities, which are as follows:
Public Health Services, who shall be supported by an (1) Hospital Operations and Management Service
Assistant Secretary, shall supervise the following: which shall formulate and implement plans, programs,
(1) Maternal and Child Health Service which shall policies, standards and techniques related to
formulate plans, policies, programs, standards and management improvement and quality control of
techniques relative to maternal and child health; provide hospital operations; provide consultative, training and
consultative training and advisory services to advisory services to field offices in relation to the
implementing agencies; and conduct studies and supervision and management of hospital components;
research related to health services for mothers and and conduct studies and research related to hospital
children; operations and management;
(2) Tuberculosis Control Service which shall formulate (2) Radiation Health Service which shall formulate and
plans, policies, programs, standards and techniques implement plans, programs, policies, standards and
relative to the control of morbidity and mortality from techniques to ensure radiation health safety; provide
tuberculosis; provide consultative, training and advisory consultative, monitoring, training and advisory services to
services to implementing agencies; and conduct studies private and government facilities with radiation-emitting
and research related to tuberculosis; apparatus; and conduct studies and research related to
(3) Family Planning Service which shall formulate radiation health;
plans, policies, programs, standards and techniques (3) Hospital Maintenance Service which shall formulate
relative to family planning in the context of health and and implement plans, programs, policies, standards and
family welfare; provide consultative, training and advisory techniques related to assuring the proper maintenance of
services to implementing agencies; and conduct studies Department equipment; provide consultative, training
and research related to family planning; and advisory services to implementing agencies in
(4) Environmental Health Service which shall relation to preservation, repair and maintenance of
formulate plans, policies, programs, standards and medical and non-medical equipment of the Department;
techniques relative to environmental health and and conduct studies and research related to equipment
sanitation; provide consultative, training and advisory and facility maintenance;
services to implementing agencies; and conduct studies (4) Health Infrastructure Service which shall formulate
and research related to environmental health; and implement plans, policies, programs, standards and
(5) Nutrition Service which shall formulate plans, techniques related to development and preservation of
policies, programs, standards and techniques relative to health infrastructure; provide consultative, training and
nutrition services in the context of primary health care, advisory services to implementing agencies in relation to
provide consultative, training and advisory services to infrastructure projects to assure economical and efficient
implementing agencies; and conduct studies and implementation; and conduct studies and research
research related to nutrition; related to infrastructure development and utilization.
(6) Dental Health Service which shall formulate plans, SECTION 15. Office for Standards and Regulations. —
policies, programs, standards and techniques relative to The Office for Standards and Regulations, headed by an
dental health services; provide consultative, training and Undersecretary and supported by an Assistant Secretary,
advisory services to implementing agencies; and conduct shall include three (3) bureaus and one (1) national office
studies and research related to dental services; that shall be responsible for the formulation of regulatory
policies and standards over the various areas of concern
(7) Malaria Control Service which shall formulate plans, in the health sector, whose implementation shall be the
policies, programs, standards and techniques relative to general responsibility of the Department's regional field
the control of malaria; provide consultative, training and offices. The same bureaus shall also be responsible for
advisory services to implementing agencies; and conduct those areas of activity covered by regulatory policy to
studies and research to malaria and its control; provide the Secretary with current information on the
(8) Schistosomiasis Control Service which shall status of these regulated areas of activity and to provide
formulate plans, policies, programs, standards and the Secretary with a basis for preliminary evaluation of
techniques relative to the control of schistosomiasis; the efficiency of the Department's field offices in
provide consultative, training and advisory services to performing their regulatory functions. The same bureaus
implementing agencies; and conduct studies and shall conduct studies and research pertinent to their
research related to schistosomiasis and its control; areas of responsibility . In certain instances the bureaus
may also perform consultative, training and advisory
(9) Communicable Disease Control Service which shall services to the practitioners and institutions in the area of
formulate plans, policies, programs, standards and regulated activity. The same bureaus and national office
techniques relative to the control of communicable are the following:
diseases, other than the major causes of mortality and
morbidity, such as leprosy, sexually transmitted diseases, (1) Bureau of Research and Laboratories which shall
filariasis and others; provide consultative, training and develop and formulate plans, standards and policies, for
advisory services to implementing agencies; and conduct the establishment and accreditation and licensing of
studies and research related to these other laboratories; blood banks and entities handling biological
communicable diseases; products; provide consultative, training and advisory
services to public and private laboratories; and conduct
(10) Non-communicable Disease Control Service which studies and research related to laboratory procedures and
shall formulate plans, policies, programs, standards and operations;
techniques relative to the control of non-communicable
diseases; provide consultative, training and advisory (2) Bureau of Food and Drugs which shall act as the
services to implementing agencies; and conduct studies policy formulation and sector monitoring arm of the
and research related to mental illness, Secretary on matters pertaining to foods, drugs,
cardiovascular-disease, cancer, other non-communicable traditional medicines, cosmetics and household products
diseases, and occupational health. containing hazardous substances, and the formulation of
rules, regulations and standards in accordance with
SECTION 14. Office for Hospital and Facilities Republic Act 3720 (1963), as amended by Executive Order
Services. — The Office for Hospital and Facilities Services, No. 175, s. 1987, and other pertinent laws for their proper
headed by an Undersecretary who shall be supported by enforcement; prescribe general standards and guidelines
an Assistant Secretary, shall include four (4) staff services with respect to the veracity of nutritional and medicinal
involved in policy formulation, standards development, claims in the advertisement of food, drugs and cosmetics
program monitoring and provision of specialized in the various media, to monitor such advertisements;



advise the Department's field offices to call upon any Research Institute for Tropical Medicine, National Kidney
erring manufacturer, distributor, or advertiser to desist Institute, and the Philippine Children's Medical Center.
from such inaccurate or misleading nutritional or SECTION 18. Regional Health Offices. — The
medicinal claims in their advertising; should such Department is authorized to establish, operate, and
manufacturer, distributor, or advertiser refuse or fail to maintain a Department-wide Regional Office, in each of
obey the desistance order issued by the Bureau, he shall the administrative regions of the country, under the
be subject to the applicable penalties as may be supervision of an Executive Committee chaired by the
prescribed by law and regulations; the Bureau shall Secretary. Each Regional Office shall be headed by a
provide consultative, training and advisory services to all Regional Director to be appointed by the President, and
agencies and organizations involved in food and drug supported by an Assistant Regional Director. The
manufacturing and distribution with respect to assuring appointment of the Regional Director and Assistant
safety and efficacy of food and drugs; conduct studies Regional Director shall be to the Department-at-large
and research related to food and drug safety; maintain a and assignment shall be by administrative issuances of
corps of specially trained food and drugs inspectors for the Secretary. The Regional Health Office shall be
assignment to the various field offices of the Department; responsible for the field operations of the Department in
while these inspectors shall be under the technical its administrative region and for providing the region
supervision and guidance of the Bureau, they shall be with efficient and effective health and medical services. It
under the Administrative supervision of the head of the shall supervise all Department agencies in its
field offices to which they shall be assigned, the latter administrative region including whatever medical
being responsible for regulatory program centers, regional hospitals, sanitaria, provincial health
implementation within the geographic area of his offices and city health offices are located in the region
jurisdiction; except those placed under the Department Proper.
(3) Bureau of Licensing and Regulation which shall In addition to the foregoing, a Regional Office shall
formulate policies and establish the standards for the have within its administrative region, the following
licensing and regulation of hospitals, clinics and other functions:
health facilities; establish standards that shall be the basis
of inspections and licensure procedures of the (1) Implement laws and rules, regulations, policies,
Department's field offices; and provide consultative, plans, programs and projects of the Department in the
training and advisory services to field offices on the region;
conduct of licensing and regulatory functions over (2) Provide efficient and effective health and medical
hospitals, clinics and other health facilities. services to the people;
(4) National Quarantine Office which shall formulate (3) Coordinate with regional offices of other
and implement quarantine laws and regulations and, departments, offices, and agencies in the region;
through its field offices, exercise supervision over
rat-proof zones in designated international ports and (4) Coordinate with local government units; and
airports and over medical examination of aliens for (5) Perform such other functions as may be provided
immigration purposes. by law.
SECTION 19. Provincial Health Office. — The
CHAPTER 5 Field Offices Provincial Health Office shall be the Department agency
in the province. It shall exercise supervision and control
SECTION 16. Office for National Field Operations. —
over district health offices and other field units of the
The Office for National Field Operations, through an
department in the province, except those otherwise
Executive Committee, shall supervise the operations of
placed under the Department Proper or directly under
the various Regional Field Offices and the National Health
the Regional Health Office.
Facilities, as enumerated in Section 17(3) and further
described in Sections 18, 19 and 20 hereof. The Provincial Health Office shall be headed by a
Provincial Health Officer. Depending on the size,
SECTION 17. Department Field Offices. — The
population, and health facilities of the province as well as
Department field offices, under the supervision and
budgetary provisions, a province may have one Assistant
control of the Executive Committee for National Field
Provincial Health Officer assisting the Provincial Health
Operations, shall be composed of the following:
Officers, or two Assistant Provincial Health Officers, one
(1) Regional Health Offices (other than the National assisting the Provincial Health Officer in public health
Capital Region) and subordinate units that include activities and the other assisting in hospital operations.
regional medical centers, regional hospitals, provincial The Provincial Health Officers and Assistant Provincial
health offices including component hospitals and district Health Officers shall be appointed by the Secretary to a
health offices, city health offices; region, and their assignment to a province shall be made
(2) Regional Health Office for the National Capital by the Secretary on recommendation of the Regional
Region: Municipal Health Offices of Makati, Mandaluyong, Health Director.
Pasig, Marikina, Las Piñas, Muntinlupa, San Juan, SECTION 20. District Health Office. — The District
Valenzuela, Navotas, Malabon, Parañaque, Taguig, Health Office shall exercise supervision and control over
Pateros; district hospitals, municipal hospitals, rural health units,
(3) National Health Facilities which are health facilities barangay health stations and all other Department units
classified as National Health Resources because their in the health district, except those otherwise placed
services and activities accrue to the whole country's directly under the Provincial Health Office, or Regional
health care and infrastructure. These facilities are of two Health Office, or the Department Proper.
classifications: National Medical Centers and the Special The District Health Office shall be headed by a District
Research Centers and Hospitals, which are attached to Health Officer who shall also serve as the Chief of the
the Department: district hospital as well as the head of all field units in the
(a) National Medical Centers: San Lazaro Hospital, district. District Health Officers shall be appointed by the
Tondo Medical Center, Jose Fabella Memorial Hospital, Secretary to a region, and their assignments shall be
Quirino Memorial Hospital, Rizal Medical Center, National made by the Secretary on the recommendation of the
Children's Hospital, Jose Reyes Memorial Medical Center, Regional Health Director.
and the East Avenue Medical Center. SECTION 21. Local Health Agencies. — The
(b) Special Research Centers and Hospitals: Philippine Department shall review and monitor the establishment,
Heart Center, Lung Center of the Philippines, National operation and maintenance of health agencies funded by
Orthopedic Hospital, National Center for Mental Health, local governments. Proposals for integrating locally


funded health agencies under the supervision and The State shall promote industrialization and full
control of the Department without regard to the sourcing employment based on sound agricultural development
of funds shall be made by the Department for the and agrarian reform, through industries that make full
appropriate local government's approval. Any such and efficient use of human and natural resources, and
agreement shall be allowed and, whenever possible, which are competitive in both domestic and foreign
funding from national sources may be extended to markets. It shall protect Filipino enterprises against unfair
achieve a nationally integrated government health foreign competition and trade practices.
service under the Department. In pursuit of these goals, all sectors of the economy
SECTION 22. City Health Officers. — The City Health and all regions of the country shall be given optimum
Officers and Assistant City Health Officers shall be opportunity to develop. Private enterprises, including
appointed by the Secretary. Their compensation shall be corporations, cooperatives, and similar collective
paid out of national funds. organizations shall be encouraged to broaden the base of
SECTION 23. Delegation of Power by Secretary. — their ownership.
The Secretary shall have the authority to delegate such The State shall pursue a trade policy that serves the
substantive and administrative powers and authority as general welfare and utilizes all forms and arrangements
may be necessary to the heads of the Regional Health of exchange on the basis of equality and reciprocity.
Offices, in addition to such administrative authority as The State shall regulate or prohibit monopolies when
have been mandated for delegation for all Departments the public interest so requires. No combinations in
by the President. The Secretary shall also delegate such restraint of trade or unfair competition shall be allowed.
powers and authority to the heads of the Provincial The state shall protect consumers from trade
Health Offices and those of other subordinate units of the malpractices and from substandard or hazardous
Regional Health Offices as in his sound judgment would products.
make for a more efficient and effective administration of
health and medical services. SECTION 2. Mandate. — The Department of Trade and
Industry shall be the primary coordinative, promotive,
facilitative and regulatory arm of the Executive Branch of
CHAPTER 6 Attached Agencies government in the area of trade, industry and
SECTION 24. Attached Entities. — The Philippine investments. It shall promote and develop an
Medical Care Commission and the Dangerous Drugs industrialization program effectively controlled by
Board shall be attached to the Department and shall Filipinos and shall act as catalyst for intensified private
continue to operate and function in accordance with the sector activity in order to accelerate and sustain
law creating them, except as otherwise provided in this economic growth through: (a) comprehensive industrial
Code. growth strategy, (b) a progressive and socially responsible
liberalization program, (c) policies designed for the
SECTION 25. The Philippine Medical Care expansion and diversification of trade, and (d) policies to
Commission. — The Philippine Medical Care Commission protect Filipino enterprises against unfair foreign
shall be composed of the Secretary of Health as competition and trade practices.
Chairman, an Undersecretary of Health designated by the
Secretary as Vice-Chairman, and the following members: SECTION 3. Powers and Functions. — The
the Administrator of the Social Security System, the Department of Trade and Industry shall:
President and General Manager of the Government (1) Formulate and implement policies, plans and
Service Insurance System, the Secretary of Finance, the programs relative to the development, expansion,
Secretary of Local Government, the Secretary of Labor promotion and regulation of trade, industry, and
and Employment, and four (4) other members investments;
representing the beneficiaries, the private employers, the
physicians and the hospitals. The four other members (2) Consolidate and coordinate all functions and efforts
shall be appointed by the President of the Philippines for pertaining to the promotion of exports, diversification
a term of six (6) years. and decentralization of industries, and development of
foreign trade;
The ex officio members may designate their
representatives who shall exercise the plenary powers of (3) Encourage and promote the growth and expansion
their principals as well as enjoy the benefits available to of industries which make full use of human and natural
the latter. resources and which are competitive in domestic and
foreign markets;
SECTION 26. The Dangerous Drugs Board. — The
Dangerous Drugs Board shall be composed of the (4) Adopt and implement measures to protect Filipino
Secretary of Health, who shall be ex officio chairman, an enterprises against unfair foreign competition and trade
Undersecretary of Health designated by the Secretary, practices;
who shall be ex officio Vice-Chairman, an Executive (5) Provide incentives to broaden the base of
Director and the following members: the Secretary of ownership of large-scale industrial enterprises and
Justice or his representative; the Secretary of National accelerate the formulation and growth of small and
Defense or his representative; the Secretary of Education medium-scale enterprises;
or his representative; the Secretary of Finance or his
(6) Regulate the importation of essential consumer
representative; and the Secretary of the Department of
and producer items to maintain their fair and competitive
Social Welfare and Development or his representative.
prices to end-users;
The Director of the National Bureau of Investigation shall
be the permanent consultant of the Board. (7) Protect consumers from trade malpractices and
from substandard or hazardous products;
(8) Adopt and implement measures to prohibit
TITLE X Trade and Industry combinations in restraint of trade and unfair competition;
(9) Develop the capabilities of industry to increase the
CHAPTER 1 General Provisions domestic content of its products and upgrade the quality
SECTION 1. Declaration of Policy. — The State shall of products according to competitive international
develop a self-reliant and independent national economy standards;
effectively controlled by Filipinos. It recognizes the (10) Encourage and support the formation of People's
indispensable role of the private sector, encourages Economic Councils at regional, provincial and municipal
private enterprise, and provides incentives to needed levels as well as other trade, industry and consumer
investments. protection institutions or associations;


(11) Upgrade and develop the manufacture of local Department's operating plans in response to relevant
capital goods and precision machinery components; environment changes; review the Department's
(12) Formulate the appropriate mechanics to guide performance against standards and targets previously
and manage the transfer of appropriate industrial established; and provide staff services related to the
technology in the country; development, monitoring, reporting and assessment of
foreign-assisted projects of the Department;
(13) Formulate country and product export strategies
which will guide the export promotion and development (4) The Office of Legal Affairs shall provide the
thrusts of the government; and implement programs and Secretary with legal advise on all policies, programs, and
activities geared towards the overseas promotion of operational matters of the Department; serve as Counsel
Philippine exports in overseas markets; for the Department in cases in which it is a party; handle
administrative cases against Department personnel and
(14) Take the primary role in negotiating and reviewing submit recommendations pertaining thereto; and review
existing international trade agreements, particularly legislative proposals;
those affecting commodity quotas limiting existing
exports of Philippine products to determine programs for (5) The Human Resource Development Service shall
renegotiations of more favorable terms; design and implement human resource development
plans and programs for the personnel of the Department;
(15) Administratively adjudicate and impose provide for present and future manpower needs of the
reasonable fines and penalties for violation of existing organization; and maintain high morale and favorable
trade and industry laws; employee attitudes towards the organization through the
(16) Prepare, for consideration of the Monetary Board, continuing design and implementation of employee
proposed programs in the commercial banking sector for development programs;
directing commercial lending facilities towards priority (6) The Financial Management Service shall formulate
areas of commercial and industrial development, as well and manage a financial program to ensure availability
as coordinate government direct funding and financial and proper utilization of funds; and provide for an
guarantee programs to achieve trade and industry effective monitoring system of the financial operations of
growth; the Department;
(17) Issue subpoena and subpoena duces tecum to (7) The General Administrative Service shall provide
compel the attendance of witnesses and the production services relative to procurement and allocation of
of the necessary information, papers and documents supplies and equipment, transportation, messengerial
which it may deem necessary in the exercise of its powers work, cashiering, payment of salaries and other
and functions; Department obligations, office maintenance, property
(18) Prescribe and enforce compliance with such rules safety and security, and other utility services; and comply
and regulations as may be necessary to implement the with government regulatory requirements in the areas of
intent and provisions of this Code, which rules and performance appraisal, compensation and benefits,
regulations shall take effect fifteen (15) days following employment records and reports;
their publication in the Official Gazette; and (8) The Management Information Service shall design
(19) Perform such other functions as may be necessary and implement a comprehensive management
or incidental in carrying into effect the provisions of this information system, both computerized and manual, for
Code and as may be provided by law. the Department; provide technical assistance to the
various information generating units within the
SECTION 4. Organizational Structure. — The Department; and establish data exchange linkages with
department shall consist of the offices of the secretary, public and private agencies whenever feasible;
undersecretaries and assistant secretaries, national
service centers, regional offices, and line corporate (9) The Public Relations Office shall perform the
agencies and government entities. Department's public relations function; provide a
two-way flow of information between the Department
and its constituencies; and coordinate the Secretary's
CHAPTER 2 Department Proper regular press conferences and the Department's relations
SECTION 5. Office of the Secretary. — The Office of with the mass media;
the Secretary shall consist of the Secretary, his immediate (10) The Trade and Investment Information Center
staff, the Undersecretary for Policy Planning and Support shall, as the primary information arm of the Department,
Services, and the Offices and Services directly supportive design and operate a computerized system of collection,
of the Office of the Secretary. The functions of the documentation, storage, retrieval, and timely
foregoing shall be as follows: dissemination of comprehensive and relevant
(1) The Undersecretary for Policy Planning and Support information on trade, industry, and investment for use by
Services shall supervise the Office of Policy Research, the other government agencies and the business sector;
Office of Operational Planning, the Office of Legal Affairs, coordinate and monitor the information campaigns on
the Human Resource Development Service, the General the Department's services, programs, and projects;
Administrative Service, the Management Information develop a communications programs to promote
Service, the Financial Management Service and the Philippine investment opportunities and the country's
Public Relations Office; export products which shall be directed at foreign
audiences; and provide creative services to other units of
(2) The Office of Policy Research shall coordinate and the Department in support of their own information
help formulate general trade and industry policies for the programs;
Department; evaluate the effectiveness of trade and
industry programs as such, as their implementation by (11) The National Industrial Manpower Training Council
the Department's Line Operating Units; and research on shall act as the umbrella agency to coordinate and
trade and industry issues for policy analysis and operate the Cottage Industry Technology Center, the
formulation; Construction Manpower Development Foundation, and
the Construction Manpower Development Center and
(3) The Office of Operational Planning shall develop perform other functions such as initiating specialized
operating plans, programs and projects of the industrial training centers and identifying
Department as such; supervise the Annual Trade and supply-demand factors and industrial skills subject to the
Industry Development Planning Conferences between direction formulated by the National Manpower and
government and the private sector; evaluate the Youth Council; and
cost-effectiveness of various projects and activities of the
Department; coordinate the updating of the (12) There is hereby created in the Office of the
Secretary the Office of Special Concerns to attend to



matters that require special attention, whether involving trade practices; monitor the registration of business
a matter that crosses several functional areas, demands names and the licensing and accreditation of
urgent action, or otherwise necessitates, in the establishments and practitioners; protect and safeguard
Secretary's opinion, attention by a special group. the interest of consumers and the public, particularly the
SECTION 6. Undersecretaries. — The Secretary shall health and safety implications of intrinsic product
be assisted by five (5) Undersecretaries. They shall features, product representation, and the like; and
exercise supervision over the offices, services, operating establish the basis for evaluating consumer complaints
units and individuals under their authority and and product utility failures.
responsibility. (2) Bureau of Domestic Trade Promotion. This Bureau
The Secretary may designate any Undersecretary to shall prepare and monitor the implementation of plans
supervise the bureaus, offices, and agencies, including and programs directed at the promotion and
the attached entities, consistent with the mandate of the development of domestic trade, particularly in the area of
Department. efficiency, fairness and balance in the distribution of
essential products and services and in the strengthening
SECTION 7. Assistant Secretaries. — The Secretary of the domestic base for export activities; conceptualize,
shall also be assisted by five (5) Assistant Secretaries who monitor, and evaluate programs, plans and projects
shall be appointed by the President upon the intended to create awareness of domestic marketing
recommendation of the Secretary. The Secretary is opportunities for new projects, new technologies and
hereby authorized to delineate and assign the respective investments.
areas of functional responsibility of the Assistant
Secretaries. Within his functional area of responsibility, an (3) Bureau of Patents, Trademarks, and Technology
Assistant Secretary shall assist the Secretary and the Transfer. This Bureau shall examine applications for grant
Undersecretaries in the formulation, determination and of letters, patent for inventions, utility models and
implementation of laws, policies, plans, programs and industrial designs, and the subsequent grant or refusal of
projects on trade and industry and shall oversee the the same; register trademarks, tradenames, service marks
day-to-day administration of the constituent units of the and other marks of ownership; hear and adjudicate
Department. contested proceedings affecting rights to patents and
trademarks; receive, process for registration and evaluate
SECTION 8. Staff Bureaus and Services. — The technology transfer arrangements as to their
Bureaus and Service Units shall be responsible for appropriateness and need for the technology or industrial
research, formulation of policy, development of standards, property rights, reasonableness of the technology
framing of rules and regulations, program formulation payment, and for the prohibition of restrictive business
and program monitoring, related to the concerns covered clauses, and comply with all its statutory publication
by the Department's mandate, powers, and functions. requirements by publishing the same in a newspaper of
Implementation of such policies, standards, rules and general circulation or in the Official Gazette.
regulations, and programs shall be the responsibility of
the Department's Line Operating Units. (4) Bureau of Product Standards. This Bureau shall
review the products contained in the critical imports list
SECTION 9. Department Line Operating Units. — The in accordance with established national standards or
Department Line Operating Units shall be composed of relevant international standards and buyer-seller
the following: specifications; promulgate rules and regulations
(1) Regional Offices. These are offices which shall be necessary for the country's shift to the international
located in the National Capital Region and each of the system of units; study and carry out research on the
twelve (12) other administrative regions of the country. various reference materials to be used as basis for the
They shall be operated and maintained on a start of whatever analysis or evaluation is demanded by
Department-wide basis, acting as implementing arms in the products under examination or investigation;
the regions under their jurisdiction, of the Department's establish standards for all products of the Philippines for
policies, programs, rules and regulations as well as those which no standards have as yet been fixed by law,
laws which the Department is mandated to enforce. executive order, rules and regulations and which
products are not covered by the standardization activities
(2) Line Corporate Agencies and Government Entities. of other government agencies; participate actively in
These are the government entities and the international activities on standardization, quality control
government-owned or controlled corporations under the and metrology; ensure the manufacture, production, and
administrative supervision of the Department which are distribution of quality products for the protection of
deemed to be integral parts of the Department structure consumers; test and analyze standardized and
notwithstanding their organizational form, and which unstandardized products for purposes of product
perform a focal and implemental role in the standard formulation and certification; extend technical
Department's programs for the development of trade, assistance to producers to improve the quality of their
industry and investments. products; check length, mass and volume measuring
instruments; and maintain consultative liaison with the
CHAPTER 3 Office of the Undersecretary for Domestic International Organization for Standardization, Pacific
Area Standards Congress, and other international
Trade
standards organizations.
SECTION 10. Office of the Undersecretary for
(5) Video Regulatory Board. This Board shall regulate
Domestic Trade. — The Office of the Undersecretary for
videogram establishments; prevent unfair practices,
Domestic Trade shall include all the staff bureaus and
unfair competition, pirating of legitimately produced
services involved in policy formulation, standards
video products, and other deceptive, unfair and
development, programs development, and program
unconscionable acts and practices to protect the viewing
monitoring of the development, regulatory, and service
public and the general public.
delivery programs pertinent to domestic trade and
commerce being implemented by the Department's line
operating units. The Undersecretary for Domestic Trade CHAPTER 4 Office of the Undersecretary for International
shall supervise the following: Trade
(1) Bureau of Trade Regulation and Consumer SECTION 11. Office of the Undersecretary for
Protection. This Bureau shall formulate and monitor the International Trade. — The Office of the Undersecretary
implementation of programs for the effective for International Trade shall include all the units involved
enforcement of laws, correct interpretation and adoption in policy formulation, standards development, program
of policies on monopolies and restraint of trade, development, and program monitoring of the
mislabelling, product misrepresentation and other unfair development, regulatory, and service delivery programs



of the Department pertinent to international trade and international market for specific products where the
commerce being implemented by the Department's line Philippines has or can develop a comparative advantage;
operating units. The Undersecretary for International recommend to the Bureau of Customs the licensing of
Trade shall supervise the following: bonded manufacturing facilities and monitor all bonded
(1) Bureau of International Trade Relations. This Bureau manufacturing sites, with the objective of ensuring
shall be the primary agent responsible for all matters operational efficiency; identify and designate sites where
pertaining to foreign trade relations, whether bilateral, export bonded manufacturing sites shall be located with
regional or multilateral, especially market access and a view of dispersal to the regions; and initiate studies on
market access related matters; formulate positions and the development and maintenance of the country's
strategies for trade negotiations, consultations and competitive advantage in export products.
conferences as well as supervise trade negotiations, (5) Philippine Shippers' Council. This Council shall
consultations and conferences; coordinate with other represent Philippine shippers in international liner
Departments and agencies of the Philippine government conferences and negotiate in their behalf, for more
with the view of assuring consistency in the government's favorable freight and shipping rates; evaluate and issue
positions in trade negotiations and on other activities waivers to the use of Philippine flag carriers; and provide
pertaining to foreign trade relations; consult with industry assistance and information to Philippine shippers,
groups and provide technical advice and information on specially exporters, in matters related to shipping.
the above matters and activities; identify tariff and (6) Philippine Trade Training Center. This Center shall
non-tariff barriers affecting products of export interest to develop training modules on export and import
the Philippines, and negotiate measures for liberalizing techniques and procedures; raise the level of awareness
them at bilateral, regional and multilateral form; and of Philippine businessmen of export opportunities and
evaluate and submit recommendations on existing and the availability of alternative sources of import products
proposed commercial policies of the Philippines. or diversified markets for exports; offer specialized
(2) Bureau of Export Trade Promotion. This Bureau courses for specific industry groups directed at
shall formulate and monitor programs, plans, and overcoming barriers to overseas market penetration; and
projects pertinent to the development, promotion, and conduct training programs in international trade
expansion of the foreign trade of the Philippines; practices, inspection techniques and exhibitions
formulate country and product export strategies; conduct mounting.
research on new product development and adaptation (7) Product Development and Design Center of the
opportunities in the export markets, as well as identify Philippines. This Center shall provide product
the domestic supply base for such products, prepare identification, research, and development services to the
situation reports on all export production; prepare and private sector; conduct seminars and workshops on
update country and regional market profiles; maintain an product design and development; set up design
integrated information system on all aspects of the exhibitions; publish product design related materials; and
products and commodities relevant to export marketing; conduct continuing research on product and product
formulate, plan, supervise, coordinate and monitor the packaging design trends and processing technologies.
implementation of both private and official incoming and
outgoing missions, and review the results of such;
promote and coordinate international subcontracting CHAPTER 5 Office of the Undersecretary for Industry and
arrangements between and among foreign and Investments
Philippine investors whereby production operations and
facilities may be located in the Philippines; formulate and SECTION 12. Office of the Undersecretary for Industry
monitor the implementation of policies and guidelines and Investments. — The Office of the Undersecretary for
for the registration and certification of bona fide Industry and Investments shall supervise all agencies
exporters eligible for the various export incentive involved in the formulation and implementation of
programs of the Philippines; and review and identify programs and projects pertinent to the development of
appropriate measures to minimize or deregulate domestic industries and the promotion of investments in
export-import procedures and other foreign trade laws activities or enterprises critical to the Department's trade
necessary to stimulate the international marketing of and industry development program.
Philippine products. (1) Bureau of Small and Medium Business
(3) Foreign Trade Service Corps. This Corps shall assist Development. This Bureau shall formulate and monitor
Philippine businessmen, producers, and exporters with development programs for private institutions involved in
marketing information, project development support, assisting the trade and industry sector, delivery
and liaison with foreign government agencies; develop mechanisms and linkages for marketing, financial and
marketing and commercial intelligence for dissemination subcontracting services, and development programs for
to Philippine businessmen through the Trade and livelihood and micro, small and medium enterprises.
Investment Information Center; provide direct support to (2) Board of Investments, whose functions are defined
the Department's overseas promotional programs; assist below.
Philippine businessmen handle trade complaints against
(3) Export Processing Zone Authority, whose functions
foreign firms and governments; support Department
are defined below.
units in import and export administration, monitoring of
trade agreements, and investments promotion; and be (4) Bureau of Import Services. This Bureau shall
accountable for establishment of foreign investment and monitor import levels and prices, particularly liberalized
export targets for their respective areas of responsibility. items; analyze and forecast import levels; analyze and
publish import return statistics; perform annual reviews
In addition to the existing Foreign Trade Service Corps,
of the substantive components of the Philippine Tariff
the President may appoint Trade Commissioners with the
System and submit recommendations thereon; perform
rank of Assistant Secretary to coordinate trade and
such other functions on import transactions as the
investment matters in the various continents to which
President or the Central Bank of the Philippines shall
they are assigned for the purpose of increasing trade and
delegate or authorize; and ensure that the Department's
investments.
views on goods under the jurisdiction of other
(4) Bonded Export Marketing Board. This Board shall Departments are taken into consideration.
promote the establishment of bonded manufacturing
(5) Iron and Steel Authority.
and trading facilities for the re-export of those products
where a clear net value added may be generated based (6) Construction Industry Authority of the Philippines.
on the emerging comparative advantage of the
Philippine export industry; study and analyze the


Philippines and other countries, particularly coffee
CHAPTER 6 Office of the Undersecretary for Regional quotas.
Operations (4) Philippine International Trading Corporation. This
SECTION 13. Office of the Undersecretary for Corporation, which shall be supervised by the
Regional Operations. — The Office of the Undersecretary Undersecretary for International Trade, shall only engage
for Regional Operations shall exercise supervision and in both export and import trading on new or
control over the Department's Regional Offices, non-traditional products and markets not normally
described in Section 9, par. 1 hereof. It shall be responsible pursued by the private business sector; provide a wide
for the field operations of the Department, ensuring full range of export oriented auxiliary services to the private
compliance with Department policies, rigorous sector; arrange for or establish comprehensive systems
implementation of Department rules and regulations, and physical facilities for handling the collection,
and proper implementation of Department plans and processing, and distribution of cargoes and other
programs by the Regional Offices in their respective commodities; monitor or coordinate risk insurance
administrative jurisdictions. services for existing institutions; promote or organize,
whenever warranted, production enterprises and
SECTION 14. Regional Offices. — The Department is industrial establishments and collaborate or associate in
hereby authorized to establish, operate and maintain a joint venture with any person, association, company, or
Department-wide regional office in each of the country's entity, whether domestic or foreign, in the fields of
administrative regions. Each Regional Office shall be production, marketing, procurement, and other related
headed by a Regional Director who shall be assisted by an businesses; and provide technical, advisory, investigatory,
Assistant Regional Director. A Regional Office shall have, consultancy, and management services with respect to
within its administrative region, the following functions: any and all of the functions, activities, and operations of
(1) Implement pertinent laws, and the rules, the corporation.
regulations, policies, plans, programs and projects of the (5) Board of Investments. This Board, which shall be
Department; supervised by the Undersecretary for Industry and
(2) Provide efficient and effective service to the people; Investments shall be responsible for coordinating the
formulation and implementation of short, medium and
(3) Coordinate with the regional offices of other long term industrial plans as well as promoting
departments, offices and agencies in the region; investments in the Philippines in accordance with
(4) Coordinate with the local government units; and national policies and priorities; register, monitor, and
grant investment incentives to individual enterprises;
formulate policies and guidelines aimed at creating an
by law or appropriately assigned by the Secretary.
environment conducive to the expansion of existing
investments or attracting prospective investments in the
CHAPTER 7 Attached Agencies Philippines, Provided, That the Board shall place primary
emphasis on its promotive functions.
SECTION 15. Line Corporate Agencies and
Government Entities. — The following are the Line (6) Export Processing Zone Authority. This Authority
Corporate Agencies and Government Entities that will which shall be supervised by the Undersecretary for
perform their specific regulatory functions, particular Industry and Investments, shall develop and manage
developmental responsibilities, and specialized business export processing zones, in consonance with Department
activities in a manner consonant with the Departments' policies and programs.
mandate, objectives, policies, plans, and programs: (7) The Center for International Trade Expositions and
(1) National Development Company. This Company Missions, Inc. is hereby merged with the Philippine Trade
shall promote investments in or establish enterprises for Exhibition Center. The latter shall be the surviving entity
the express purposes of encouraging the private sector to and is hereby renamed "Center for International Trade
follow suit by proving the financial viability of such Expositions and Missions."
enterprises; or of filling critical gaps in the input-output
structure of Philippine commerce and industry when the
private sector is unwilling or unable to engage in such TITLE XI Agrarian Reform
enterprises because of the magnitude of investments
required or the risk complexion of the undertaking.
(2) Garments and Textile Export Board. This Board,
which shall be supervised by the Undersecretary for SECTION 1. Declaration of Policy. — The State shall
International Trade, shall oversee the implementation of undertake an agrarian reform program founded on the
the garment and textile agreements between the right of farmers and regular farmworkers who are
Philippines and other countries, particularly garments landless to own directly or collectively the lands they till
and textiles quotas; approve quota allocations and export or, in the case of other farmworkers, to receive a just share
authorizations; issue export licenses and adopt of the fruits thereof.
appropriate measures to expedite their processing; The State shall recognize the right of farmers,
provide the necessary information and statistics relating farmworkers, and landowners, as well as cooperatives,
to the administration of garments and textiles export and other independent farmers' organizations to
quotas and the flow of garments and textiles exports for participate in the planning, organization and
monitoring purposes and for negotiations with other management of the land reform program, and shall
countries; implement rules and regulations for the provide support to agriculture through appropriate
administration of all international textile agreements technology and research, and through adequate
entered into between the Philippines and importing financial, production, marketing, and other support
countries; and fix and collect reasonable fees for the services.
issuance of export quotas, export authorizations, export The State shall provide incentives for voluntary
licenses, and other related services, in accordance with land-sharing. It may resettle landless farmers and
the Department policies, rules and regulations. farmworkers in its own agricultural estates which shall be
(3) International Coffee Organization-Certifying distributed to them in the manner provided by law.
Agency. This Agency, which shall be supervised by the SECTION 2. Mandate. — The Department shall provide
Undersecretary for International Trade, shall oversee the central direction and coordination to the national
implementation of the coffee agreements between the agrarian reform program extended to transform farm
lessees and farm tenants into owner-cultivators of


economic family-size farms to improve their living industrial conversions in accordance with the existing
conditions. provisions of law;
The Department shall formulate and implement (14) Undertake land use management studies;
policies, plans and programs for the distribution and (15) Compensate the landowners covered by agrarian
cultivation of all agricultural lands, including sugar and reform;
coconut lands, with the participation of farmers,
farmworkers, landowners, cooperatives, and other (16) Integrate and synchronize program
independent farmers' organizations. It shall provide implementation of the Land Bank of the Philippines and
leadership in developing support services to other relevant civilian and military government and
tenant-owners, farm managers, and other cultivators private entities involved and mandated to support the
through appropriate research and development agrarian reform program through Inter-Agency
programs, and shall render adequate assistance in Committees and Agrarian Reform Coordinating Councils;
finance, marketing, production and other aspects of farm and
management. (17) Perform such other functions as may be provided
SECTION 3. Powers and Functions. — To accomplish by law.
its mandate, the Department shall: SECTION 4. Organizational Structure. — The
(1) Implement laws, programs and policies for the Department shall consist of the Office of the Secretary,
acquisition and distribution of all agricultural lands as the Undersecretary, the Assistant Secretary, the Services
provided by laws; and Staff Bureaus, the Regional Offices, the Provincial
Offices, and the Team Offices.
(2) Resettle landless farmers and farmworkers in
government-owned agricultural estates which shall be
distributed to them as provided by law; CHAPTER 2 Department Proper
(3) Recommend and provide incentives for voluntary SECTION 5. Office of the Secretary. — The Office of
sharing of lands by owners of agricultural lands; the Secretary shall consist of the Secretary and his
(4) Acquire, determine the value, subdivide into immediate staff.
family-size farms, develop and distribute to qualified SECTION 6. Undersecretary. — The Secretary shall be
tillers, actual occupants and displaced urban poor, private assisted by one (1) Undersecretary who shall perform the
agricultural lands regardless of area and crops planted; following functions:
(5) Administer and dispose of, under a settlement (1) Oversee the operational activities of the
scheme, all portions of the public domain declared as Department delegated to him by and for which he shall
alienable and disposable lands for speedy distribution to be responsible to the Secretary;
and development by deserving and qualified persons
(2) Coordinate programs and projects within the DAR
who do not own any land and under such terms and
and with other government agencies and farmer
conditions as the Department may prescribe, giving
organizations when so delegated by the Secretary;
priority to qualified and deserving farmers in the province
where such lands are located; (3) Assist the Secretary in matters relating to the
operations of the Department;
(6) Provide free legal assistance to farmers covered by
agrarian reform and expedite the resolution of agrarian (4) Assist the Secretary in the preparation of reports;
conflicts and land tenure problems either through and
conciliatory or adversary proceedings; (5) Perform such other duties and functions as may be
(7) Provide creative, responsive and effective provided by law or assigned by the Secretary.
information, education and communication programs SECTION 7. Assistant Secretary. — The Secretary shall
and projects both for the tenant beneficiaries, be assisted by one Assistant Secretary.
landowners, the government and private sectors and the
general public, thereby generating a broad spectrum of
support and understanding of the new agrarian reform CHAPTER 3 Department Services
program; SECTION 8. Management and Executive Services. —
(8) Strengthen agrarian reform beneficiaries The Management and Executive Services shall have the
organizations to a degree of national viability that would following functions:
enable them to share in the shaping of government (1) Recommend the implementation of appropriate
policies and institutionalize farmers' participation in systems and procedures as it relates to the overall
agrarian reform policy formulation, program monitoring and feedback mechanisms required by the
implementation and evaluation; Office of the Secretary;
(9) Promote the organization and development of (2) Gather, consolidate, appraise, prepare and submit
cooperatives of agrarian reform beneficiaries and register regular top management reports pertaining to the
the same; Department and overall administration, financial,
(10) Implement all agrarian reform laws and for this programs and projects implementation status for
purpose issue subpoena, subpoena duces tecum, and decision making purposes;
writs of execution of its orders, and decisions and other (3) Design and maintain a program/project display
legal processes to ensure compliance from all parties center(s) that will showcase the Department's various
concerned for successful and expeditious program plans, programs and accomplishments;
implementation;
(4) Prepare and review office orders, memoranda and
(11) Undertake land surveys on lands covered by other communications;
agrarian reform, and issue patents to farmers covered by
agrarian reform, both on private and public lands; (5) Provide secretariat support during meetings and
conferences including international conferences and
(12) Develop, implement and undertake alternative seminars relative to agrarian reform;
and innovative land development schemes and land
tenure systems such as, but not limited to land (6) Supervise the implementation of department-wide
consolidation, land forming, cooperative farming and records management and disposal system;
agro-industrial estates; (7) Develop alternative management systems which
(13) Approve or disapprove conversion of agricultural will increase efficiency in the delivery of services, attain
lands to non-agricultural uses such as residential and


better means of control, maximize use of available human requirements of all operating units for their effective
and physical resources; functioning;
(8) Conduct periodic systems and procedures audit of (8) Undertake repair and maintenance of all
the various units of the Department; equipment furniture, building facilities and grounds of
(9) Prepare news items on agrarian reform the Department; and
accomplishments and handle press and media relations (9) Manage and maintain an inventory of physical
work for the Secretary; and assets in the Department's Central and Regional Offices.
(10) Perform such other functions as may be assigned SECTION 12. Administrative and Personnel Service. —
by the Secretary. The Administrative and Personnel Service shall exercise
SECTION 9. Legal and Public Assistance Service. — the following functions:
The Legal and Public Assistance Service shall have the (1) Formulate and implement policies and guidelines
following functions: on personnel placement, appraisal and action;
(1) Prepare legal decisions and resolutions of (2) Formulate and implement policies and guidelines
administrative cases and render legal opinions, on employee services, employee relations management
interpretation of contracts, laws, rules and other and staff development;
administrative issuances; (3) Service the reproduction, utility and messengerial
(2) Prepare legal decisions and resolutions of requirements of all Departmental groups and offices;
administrative cases; and (4) Provide the major operating units of the
(3) Provide public assistance services. Department with basic equipment, supplies and
SECTION 10. Research and Strategic Planning materials including logistical support;
Service. — The Research and Strategic Planning Service (5) Engage in general canvassing and purchasing of
shall have the following functions: supplies, materials and equipment;
(1) Review, analyze and integrate submitted plans and (6) Implement guidelines with respect to procurement
programs and special project proposals by Bureaus, services; and
services, and field offices and determine if plans and (7) Perform such other functions as the Secretary may
programs are in accordance with priorities set for assign.
budgetary support;
(2) Review, coordinate and integrate all
recommendations for reprogramming and revision of CHAPTER 4 Bureaus
work programs of the Department to support fund SECTION 13. Bureau of Agrarian Legal Assistance. —
releases or requests; The Bureau of Agrarian Legal Assistance shall have the
(3) Initiate, integrate, or prioritize research studies and following functions:
recommend for funding in coordination with units (1) Formulate guidelines, plans and programs for the
concerned and review and interpret research findings for effective delivery of legal assistance to the clientele;
policy applicability;
(2) Adopt the process of mediation and conciliation to
(4) Conduct researches or case studies for policy judiciously settle agrarian problems;
recommendations and application;
(3) Investigate cases, review recommendations, and
(5) Coordinate, integrate and assist in the assessment prepare orders, decisions and resolutions on matters
of programs and projects against plans, costs and involving agrarian dispute;
resources, standards and performance targets;
(4) Maintain a docket of cases on claims and conflicts
(6) Coordinate, integrate and analyze periodic and issue clearance in relation thereto;
accomplishment reports of the Department as may be
(5) Provide legal information and prepare materials for
required or necessary;
publication;
(7) Maintain liaison with public and private
(6) Conduct and compile legal research and studies on
development and planning bodies, public and private;
agrarian reform and maintain a law library;
and
(7) Prepare legal opinions on matters pertaining to
agrarian reform program implementation;
(8) Represent agrarian reform beneficiaries or
SECTION 11. Finance and Physical Assets
members of their immediate farm households before all
Management Service. — The Finance and Physical
courts and quasi-judicial and administrative bodies, in
Assets Management Service shall have the following
civil, criminal or administrative cases instituted by or
functions:
against them, arising from or are connected with, an
(1) Prepare, execute and administer the Department's agrarian dispute;
budget including standards and guidelines;
(9) Develop, maintain and coordinate para-legal
(2) Monitor and evaluate the implementation of the services for agrarian reform clientele;
Central and Regional budget;
(10) Advise and assist the Office of the Secretary and
(3) Process all money claims related to all types of field offices in agrarian legal matters;
Department expenditures including personal services,
(11) Conduct a continuing follow-up and evaluation of
maintenance and other operating expenses and capital
the handling and disposition of judicial cases, claims and
outlays;
conflicts adjudication, legal information and para-legal
(4) Prepare financial reports and maintain books of services of the Department; and
accounts;
(12) Perform such other functions and duties as may
(5) Prepare, release and control check disbursements be provided by law.
and index or monitor check payments;
SECTION 14. Bureau of Land Development. — The
(6) Implement proper internal control mechanisms; Bureau shall have the following functions:
(7) Formulate and implement policies and systems on (1) Draw up plans and programs of land surveys and
the disposition of supplies, materials and equipment determine which land survey projects can be done by
administration or by contract;


(2) Develop and prescribe procedures and techniques (9) Identify areas of research relevant to land tenure,
on land surveys in accordance with approved standards; determine priority needs, and prepare land tenure
(3) Develop plans and programs, guidelines, research designs/proposals;
procedures and techniques for soil surveys and (10) Undertake operational research and evaluation
classification and for complete aerial photogrammetry; studies on land tenure programs and projects;
(4) Analyze and compile soil data and survey reports (11) Monitor research findings on land tenure and other
essential for the production of soil maps and identify related studies by various research agencies;
particular areas for soil research; (12) Review and evaluate documents for the
(5) Develop land use patterns, procedures and compile generation, registration, and issuance of Emancipation
adequate maps for proper land use; Patents/Title, land valuation, and landowners
(6) Draw up plans, programs and designs for compensation claims as to its completeness, accuracy
agricultural development under the scheme of land and validity;
consolidation; (13) Initiate verification and/or investigation of
(7) Formulate policies, guidelines and procedures for questionable or inconsistent documents as well as data
the regulation of conversion of private agricultural lands or information critical for expeditious disposition of land
to non-agricultural use, in accordance with the provisions transactions by authorities concerned; and
of existing laws, as amended, and other related issuances; (14) Perform such other functions as may be provided
(8) Establish a schedule of priorities in the construction by law.
of houses, waterworks, irrigation systems and other SECTION 16. Bureau of Agrarian Reform Information
community facilities; Education. — The Bureau shall have the following
(9) Formulate policies and guidelines in the functions:
procurement, maintenance or rehabilitation of (1) Provide policy guidance and develop plans and
agricultural machinery and equipment, and review, and programs for effective and continuing information,
evaluate plans, programs, specifications, and cost education and promotional activities of the Department;
estimates of land development projects; (2) Develop, conduct, assist and coordinate training
(10) Provide functional and technical assistance on the and education programs to increase farmer, DAR and
implementation of land development; other governmental personnel participation in program
(11) Monitor and evaluate activities of field offices on implementation;
land development; and (3) Coordinate or implement linkage training or
(12) Perform such other functions as may be provided education programs and projects;
by law. (4) Integrate agrarian reform concepts into all levels of
SECTION 15. Bureau of Land Tenure Development. — the national education system;
The Bureau shall have the following functions: (5) Develop appropriate communication materials or
(1) Develop policies, plans and programs, and standard aids to support agrarian reform promotion and training;
operating procedures in the acquisition and distribution (6) Produce and disseminate media materials to
of public and private agricultural lands, including implement the information programs of the Department;
measures to ensure that the lands distributed by the (7) Maintain and update a library of materials on
government to the beneficiaries of the agrarian reform agrarian reform;
program shall be subsequently transferred or sold only to
qualified tenant-tillers, agricultural workers and other (8) Provide for the establishment of a center for
landless citizens; agrarian reform studies;
(2) Design socio-economic survey plans and prescribe (9) Provide functional and technical assistance on
standards, guidelines and procedures in the conduct of farmer education and public information;
such surveys in areas sought to be acquired or (10) Coordinate and evaluate training programs and
administered by the Department of Agrarian Reform; activities undertaken by the regional offices and other
(3) Develop standards for the valuation of lands placed units of the Department; and
under the agrarian reform program and formulate (11) Perform such other functions as may be provided
appropriate land compensation schemes for affected by law.
landowners;
SECTION 17. Bureau of Agrarian Reform
(4) Formulate general policies and guidelines in the Beneficiaries Development. — The Bureau shall have the
identification of tillers and agricultural lands to be following functions:
purchased or expropriated, subject of petitions or
applications for the exercise of the right of pre-emption or (1) Formulate plans, programs, policies and guidelines
redemption, or voluntarily offered for coverage under the for the development of agrarian reform areas into viable
agrarian reform program, and portions of the public agro-industrial estates, the promotion of cooperative
domain which may be opened for settlement; systems of production, processing, marketing,
distribution, credit and services;
(5) Maintain a current inventory of tillers, landowners,
landholdings, including crops and production thereon (2) Formulate policies, programs and guidelines for the
and other related records; development and management of resettlement areas
and landed estates;
(6) Streamline procedures governing the titling of
lands transferred to the beneficiaries of agrarian reform (3) Promote the organization and participation of
and the documentation of leasehold and other tenurial agrarian reform beneficiaries to enhance the dignity and
arrangements; welfare of the beneficiaries and to serve as sources of
development information inputs and feedback as basis
(7) Develop alternative tenurial or working for policy formulation;
arrangements or relationships in agrarian reform areas
aimed at ensuring security of tenure and equitable (4) Serve as liaison between the DAR and the
distribution of income; legitimate organizations of agrarian reform beneficiaries
and serve as receiving zone for request and proposals
(8) Formulate policies, guidelines, standards, from legitimately organized agrarian reform beneficiaries
procedures and programs in the development and associations for appropriate action by any of the Bureaus
conduct of land tenure research; or Services;


(5) Develop and undertake research and pilot studies (15) Submit periodic feedback and recommend policy
of alternative land tenure systems such as agro-industrial changes and/or modification of procedures on program
estates, cooperative farming and other implementation; and
cooperative-cultivatorship schemes; (16) Perform such other functions as may be necessary
(6) Develop project models such as but not limited to in the service of the clientele.
compact farms, and other income generating projects, SECTION 19. Provincial Offices. — The Agrarian
and undertake research and pilot studies on these Reform Provincial Office is responsible for the direction
models and other innovative schemes in coordination and coordination of the operation and activities of the
with field offices; Agrarian Reform Teams operating within the province
(7) Establish linkages with concerned agencies for and has the following functions:
farm support services and to ensure immediate and (1) Set priorities, specific targets, schedules and
effective project implementation; deadlines for the execution of approved plans, programs
(8) Provide functional and technical assistance on and projects on:
development and management of resettlement areas a. land acquisition, distribution, transfer of land
and landed estates, organization of agrarian reform ownership to actual tillers, including land
beneficiaries and implementation of economic projects; tiller-landowners identification, tenurial security and
(9) Monitor and evaluate the activities of field offices leasehold arrangements, land surveys, land valuation and
on the development and management of resettlement landowners compensation;
areas and landed estates, and agrarian reform b. continuing information and education programs on
beneficiaries development; and agrarian reform;
(10) Perform such other functions as may be provided c. organization and development of Agrarian Reform
by law. Beneficiaries Cooperatives and institutionalizing
farmers-government partnership in agrarian reform
CHAPTER 5 Regional and District Offices and Attached policy formulation and program implementation;
Agencies d. landowner's compensation and diversion of
SECTION 18. Regional Office. — The Regional Office landowner's capital to industrial development;
shall be responsible for supporting the field units and e. development and implementation of alternative
supervising program implementation of the Department land tenure systems such as cooperative farming,
within the region. It shall: agro-industrial estates and cooperative-cultivatorship
(1) Implement laws, policies, plans, rules and schemes;
regulations of the Department in the regional area; f. land use management;
(2) Develop and implement a regional personnel g. compact farming, land consolidation, land
management program; reclamation, integrated farming systems, sloping
(3) Prepare, submit, execute and control the budget for agricultural land technology, and other land conservation
the region; measures in agrarian reform covered areas;
(4) Prepare and properly maintain books of accounts; h. legal services to farmers covered by agrarian reform
and resolution of agrarian conflicts and land tenure
(5) Pay salaries and wages and other approved problems;
vouchers;
(2) Provide administrative services to the Agrarian
(6) Provide administrative services to the regional and Reform Teams within the province;
provincial offices;
(3) Provide legal services to agrarian reform
(7) Prepare and submit plans and programs for the beneficiaries in cases arising from or are connected with
region on: agrarian disputes, handling of expropriation proceedings,
a. land tenure development registering cooperatives organized by Agrarian Reform
Teams and reviewing and acting on all matters initially
b. information and education investigated and elevated by Agrarian Reform Teams;
c. land use management and land development (4) Provide technical assistance to the Agrarian Reform
d. legal services Teams in the implementation of approved plans and
programs;
e. agrarian reform beneficiaries development
(5) Coordinate with government, private agencies and
(8) Provide technical assistance to the provincial
farmer organizations at the provincial level to carry out
offices and agrarian reform teams in the implementation
programs;
of approved plans and programs;
(6) Conduct periodic performance audit surveys in
(9) Extend effective legal assistance, advice or service
collaboration with the regional office, and monitor
to agrarian reform beneficiaries;
agrarian reform program accomplishments of Agrarian
(10) Conduct operations research and evaluation of Reform Teams including operational problems and
agrarian reform program implementation within the constraints and recommended appropriate remedial
region; measures for effective program implementation; and
(11) Coordinate with other government and private (7) Perform such other functions as may be necessary
agencies and farmer organizations at the Regional level in the service of the clientele.
through the Agrarian Reform Coordinating Council, to
SECTION 20. Team Offices. — The Agrarian Reform
carry out programs/projects for the general welfare of the
Team shall be responsible for directly implementing the
agrarian reform beneficiaries;
agrarian reform programs and delivering expected
(12) Coordinate para-legal services; results. It shall:
(13) Maintain a data-based information system in (1) Implement policies and programs on land
coordination with the established monitoring system; acquisition, and distribution, and transfer of land
(14) Review documents submitted by the Provincial ownership to actual tillers, including farmer-landowner's
and Team Offices or by the clientele; identification, leasehold arrangements, land valuation
and landowners compensation and transfer actions;


(2) Undertake continuing information and education (2) Establish and prescribe rules, regulations and other
programs on agrarian reform among the beneficiaries; issuances and implementing laws on the general
(3) Promote the organization and development of supervision of local government units and on the
agrarian reform beneficiaries and assist in the registration promotion of local autonomy and monitor compliance
of organized cooperatives; thereof by said units;
(4) Institutionalize farmers participation in agrarian (3) Provide assistance in the preparation of national
reform policy formulation and program implementation; legislation affecting local government units;
(5) Organize and establish compact farms, land (4) Establish and prescribe plans, policies, programs
consolidation, integrated farm systems, sloping and projects to strengthen the administrative, technical
agricultural land technology and other and fiscal capabilities of local government offices and
cooperative-cultivatorship schemes; personnel;
(6) Provide assistance in agrarian reform research; (5) Formulate and implement policies, plans, programs

and projects to meet national and local emergencies
(7) Provide assistance to various legal services, arising from natural and man-made disasters; and
including legal information and legal counselling,
documentation and preliminary processing of (6) Perform such other functions as may be provided
applications for free patent and applications to purchase by law.
lots, preliminary investigation of conflicting claims on lot SECTION 4. Organizational Structure. — The
boundaries and appraisal of properties, and mediation of Department, shall be composed of the Office of the
different problems arising from tenancy relationship, Secretary, and the staff and line offices which shall consist
execution and registration of lease contracts, initial of the following:
investigation of administrative cases, and other legal (1) Bureau of Local Government Supervision;
services;
(2) Bureau of Local Government Development;
(8) Provide assistance on project identification,
formulation and development that would uplift the (3) National Barangay Operations Office;
socio-economic status of the beneficiaries including (4) Project Development Services;
projects that would divert landlord capital to industrial
development; (5) Department Services;
(9) Coordinate with other government and private (6) Office of Public Affairs; and
agencies and farmer organizations within the area of (7) Regional and Field Offices.
coverage for effective program/project implementation;
(10) Submit periodic reports on program/project CHAPTER 2 Department Proper
accomplishments including problems identified and
recommended solutions thereto; SECTION 5. Office of the Secretary. — The Office of
the Secretary shall consist of the Secretary and his
(11) Implement DAR commitment programs immediate staff.
supportive of national priority programs; and
SECTION 6. Undersecretaries and Assistant
(12) Perform such other functions as may be assigned Secretaries. — The Secretary shall be assisted by not
from time to time. more than three (3) Undersecretaries and three (3)
SECTION 21. Attached Agencies. — The following Assistant Secretaries who shall be appointed by the
agencies are attached to the Department for President upon the recommendation of the Secretary.
administrative supervision and policy coordination: The Secretary is hereby authorized to delineate and
assign the respective functional areas of responsibility of
(1) Land Bank of the Philippines
the Undersecretaries and Assistant Secretaries.
(2) Agricultural Credit Administration
(3) Agrarian Reform Coordinating Council CHAPTER 3 Department Services
SECTION 7. Planning Service. — The Planning Service
TITLE XII Local Government shall be responsible for providing the Department with
efficient and effective services relating to planning,
programming, research and statistics.
CHAPTER 1 General Provisions SECTION 8. Financial and Management Service. —
SECTION 1. Declaration of Policy. — The State shall The Financial and Management Service shall be
ensure the autonomy of local governments. For this responsible for providing the Department with efficient
purpose, it shall provide for a more responsive and and effective staff advise and assistance on budgetary,
accountable local government structure instituted financial and management improvement matters.
through a system of decentralization. The allocation of SECTION 9. Legal Service. — The Legal Service shall be
powers and resources to local government units shall be responsible for providing the Department with efficient
promoted, and inter-local government grouping, and effective legal counselling services, assistance to the
consolidation and coordination of resources shall be Secretary in the review or determination of subordinate
encouraged. The State shall guarantee the local bodies or agencies, collaboration with Solicitor General in
government units their just share in national taxes and handling cases affecting the Department, and
their equitable share in proceeds from the use of natural investigation of administrative cases involving
resources, and afford them a wider latitude for resources Department personnel and local officials;
generation.
SECTION 10. Administrative Service. — The
SECTION 2. Mandate. — The Department shall assist Administrative Service shall be responsible for providing
the President in the exercise of general supervision over the Department with efficient and effective services
local governments and in ensuring autonomy, relative to personnel, information, records, supplies,
decentralization and community empowerment. equipment, collection, disbursements, security and
SECTION 3. Powers and Functions. — To accomplish custodial work, and other kinds of services not related to
its mandate, the Department shall: the other services above enumerated.
(1) Advise the President on the promulgation of SECTION 11. Electronic Data Processing Service. —
policies, rules, regulations and other issuances relative to The Electronic Data Processing Service shall be
the general supervision of local government units; responsible for providing adequate and up-to-date data


and management information inputs, including (1) Provide technical assistance in the modernization
monitoring of all field operations, to serve as basis for and maintenance of a Department-wide
effective planning, management and control, policy micro-telecommunications systems;
formulation and decision-making. (2) Provide mechanisms for the operationalization of
the intent of the provisions of public information,
CHAPTER 4 Bureaus and Offices coverages and documentation of the activities of the
Department;
SECTION 12. Bureau of Local Government
Supervision. — The Bureau of Local Government (3) Perform functional supervision over regional
Supervision, to be headed by a Bureau Director appointed information centers in providing the citizenry with
by the President upon the recommendation of the relevant information on the program of the Department
Secretary, shall have the following functions: and the Government's thrust towards the participation of
the citizens in the democratic processes;
(1) Advise and assist the Secretary in the exercise of the
power of general supervision of the President over the (4) Formulate plans and programs to implement the
local government units, particularly in the formulation administrative and technical capabilities of public officers
and implementation of national laws, policies, and and personnel both on the central and regional levels;
standards concerning local government operations and (5) Establish and prescribe guidelines in the
their personnel; administration of Information and Public Assistance
(2) Establish and prescribe guidelines for the Services;
administration of the Katarungang Pambarangay Laws; (6) Extend consultation services and advice in the
(3) Monitor compliance with national laws and policies implementation of Regional Information Services;
by local government units; (7) Assess information needs of the people through
(4) Provide assistance in the preparation of national opinion polls and surveys;
legislation affecting local government units and in the (8) Provide assistance on various public programs of
promotion of local autonomy; the Department;
(5) Extend consultation service and advice to local (9) Establish and implement policies, plans, programs
government units involved in promoting local autonomy; and projects to meet local emergencies arising from
and natural and man-made disasters; and
(6) Provide assistance to local governments in the (10) Perform such other duties and responsibilities and
promotion of citizens participation in local government projects assigned or delegated by the Secretary in the
activities; effective delivery of public services or as may be required
(7) Provide technical and financial assistance, as well by law.
as secretariat services to the Leagues of Provinces, Cities, SECTION 15. Local Government Academy. — The
and Municipalities; and Local Government Academy shall be responsible for
(8) Perform such other functions as may be provided human resource development and training of local
by law. government officials and Department personnel. The
Academy shall be under the direct supervision of a Board
SECTION 13. Bureau of Local Government of Trustees composed of the Secretary of Local
Development. — The Bureau of Local Government Government as Chairman and four (4) other members to
Development, to be headed by a Bureau Director be appointed by the President upon recommendation of
appointed by the President upon the recommendation of the Secretary. The structure and staffing pattern of the
the Secretary, shall have the following functions: Local Government Academy shall be prescribed and
(1) Establish and prescribe plans, policies, programs, approved by the Secretary.
and projects to strengthen the administrative and SECTION 16. National Barangay Operations Office. —
technical capabilities of local government offices and The National Barangay Operations Office which shall be
personnel; headed by a Director to be appointed by the President
(2) Provide technical assistance to enhance the upon the recommendation of the Secretary, shall have
administrative, fiscal and technical capabilities of local the following functions:
government officers and personnel; (1) Formulate policies, plans and programs that will
(3) Formulate, prescribe and periodically evaluate local promote community and citizen participation in the
development policies, plans, programs and projects political development of the barangay through the
designed to enhance the participation of local mobilization and participation of barangay assemblies;
government units in planning and implementation; (2) Initiate projects on innovative barangay
(4) Establish a system of incentives and grants to local development strategies and approaches in close
governments and prescribe policies, procedures and coordination with the Bureau of Local Government
guidelines in the implementation of self-help assistance Development;
projects; (3) Provide secretariat services to the Association of
(5) Formulate and develop models, standards and Barangay Councils and serve as a clearing house on
technical materials on local government development; matters affecting barangay officials' insurance,
hospitalization, educational and other benefits as
(6) Extend consultation service and advice to local
provided by law;
government units involved in development programs;
(4) Provide continuing information dissemination to
(7) Establish a viable system of strategies and
barangay units on national development efforts and
approaches for local governments anchored on citizen
issues in order for barangay assembly members to
participation within a wholistic and integrated framework
participate meaningfully in national development;
for the development of communities; and
(5) Establish and maintain masterlists of barangays,
barangay officials and barangay socio-economic profiles;
by law.
(6) Provide situational and political analysis for the
SECTION 14. Office of Public Affairs. — The Office of
Secretary on barangay affairs; and
Public Affairs shall have the following functions:
(7) Perform other functions as may be delegated by
the Secretary or as provided for by law.


SECTION 17. Office of Project Development Services. convenient, enjoyable stay and travel of the foreign and
— The Office of Project Development Services shall have local tourists in the country.
the following functions: SECTION 3. Powers and Functions. — The
(1) Formulate innovative approaches and strategies Department shall have the following powers and
designed to promote technical capabilities of local functions:
governments; (1) Formulate policies, plans, programs and projects for
(2) Assist in the development of program components the development of the tourism industry;
for the implementation of tested and appropriate (2) Administer, coordinate and supervise all activities of
systems and processes at the local levels; and the Government concerning tourism;
(3) Perform other functions as may be delegated by (3) Advise the President on the promulgation of laws
the Secretary or as provided by law. relative to the policy, plans, programs and projects
designed to promote and develop the tourism industry;
CHAPTER 5 Regional and Field Offices (4) Effect the removal of unnecessary barriers to travel,
SECTION 18. Regional and Field Offices. — The the integration and simplification of travel regulations as
Secretary is authorized to establish, operate and maintain well as their efficient, fair and courteous enforcement to
one Regional Office in each of the administrative regions assure expeditious and hospitable reception of all tourists
established by law. A Regional Office shall have, within its and travelers;
administrative region, the following functions: (5) Represent the government in all such conferences
(1) Implement laws, rules, and regulations, other and meetings concerning tourism and travel and
issuances, policies, plans, programs and projects of the discharge such responsibilities of the government as may
Department; arise from treaties, agreements and other commitments
on tourism and travel to which it is signatory;
(2) Provide efficient and effective service to local
government; (6) Formulate standards for tourism-oriented
establishments that will prescribe minimum levels of
(3) Coordinate with regional offices of other operating quality and efficiency in order to ensure that
departments, offices and agencies affecting local facilities, personnel and services are maintained in
administration and development; accordance with acceptable local and international
(4) Assist local government units in developing their norms in the operations of tourism-oriented
capabilities for local government administration and establishments;
development; and (7) Approve the construction standards of accredited
(5) Perform such other functions as may be delegated tourism-oriented establishments including hotels, resorts,
by the Secretary or as provided by law. inns, motels and other related facilities and services and
prescribe information reporting on the purchase, sale or
lease of the said establishments and facilities;
CHAPTER 6 Leagues of Provinces, Cities and Municipalities
(8) Provide the protection, maintenance and
SECTION 19. Leagues of Provinces, Cities and preservation of historical, cultural and natural assets
Municipalities. — There is hereby created the Leagues of which are tourist attractions with the appropriate
Provinces, Cities and Municipalities. government agencies or with the private sector or with
The functions, budget and records of the Katipunan the owners of said assets or attractions;
ng mga Sanggunian National Secretariat and the (9) Undertake research studies and surveys for the
Pambansang Katipunan ng mga Punong Bayan sa continuing analysis of economic conditions and trends
Pilipinas, shall be transferred to the Leagues of Provinces, relating to tourism and maintain a statistical data bank
Cities and Municipalities. The Leagues shall be under the on the tourism industry;
supervision of the Bureau of Local Government
Supervision. (10) Design programs to encourage private-sector
investment and participation in tourism activities and
The Secretary is hereby authorized to promulgate the projects;
necessary implementing rules that will activate these
Leagues. (11) Set up and organize foreign field offices for the
purpose of overseeing all marketing and promotional
activities and implementing programs of the
TITLE XIII Tourism Department;
(12) Arrange, whenever deemed appropriate, for the
reclamation of any land adjacent to or adjoining a tourist
CHAPTER 1 General Provisions zone in coordination with appropriate government
SECTION 1. Declaration of Policy. — The State shall agencies;
promote, encourage and develop tourism as a major (13) Delegate any specific powers and functions in
national activity in which private sector investment, effort favor of the regional offices to promote efficiency and
and initiative are fostered and supported, and through effectiveness in the delivery of public service;
which socio-economic development may be accelerated,
foreign exchange earned, international visitors offered the (14) Enlist the aid, assistance and support of any and all
opportunity to travel to the Philippines and appreciate its government agencies, civil or military, in the
natural beauty, history and culture, and Filipinos implementation of the provisions of laws pertaining to
themselves enabled to see more of their country and the Department or of its rules and regulations;
imbued with greater pride in and commitment to the (15) Exercise such powers and functions as may be
nation. necessary, proper, or incidental to the attainment of its
SECTION 2. Mandate. — The Department of Tourism mandate;
shall be the primary government agency charge with the (16) Perform such other functions as may be provided
responsibility to encourage, promote and develop by law.
tourism as a major socio-economic activity to generate
foreign currency and employment and to spread the SECTION 4. Organizational Structure. — The
benefits of tourism to a wider segment of the population Department shall consist of the Department Proper,
with the support, assistance and cooperation of both the Department Services, Bureaus and Offices, Regional
private and public sectors, and to assure the safe, Offices and Foreign Field Offices.


The Department Proper shall consist of the Offices of (4) Plan promotional campaigns through advertising
the Secretary and Undersecretaries which shall be and publicity and coordinate promotional efforts with the
responsible for the preparation and development of private sector through sales campaigns and information
policies, plans, programs and projects of the Department. dissemination; and
(5) Organize special events for the promotion of local
CHAPTER 2 Department Proper destinations.
SECTION 5. Office of the Secretary. — The Office of SECTION 13. Bureau of International Tourism
the Secretary shall consist of the Secretary and his Promotions. — The Bureau of International Tourism
immediate staff. promotions shall have the following functions:
SECTION 6. Undersecretaries. — The Secretary shall (1) Generate favorable publicity on the Philippines;
be assisted by four (4) Undersecretaries, namely: (2) Disseminate current information on the country
(1) Undersecretary for Planning, Product Development and its tourist products;
and Coordination, who shall be responsible for the Office (3) Provide support for the private sector in the
of Tourism Development Planning, Office of Product promotional campaign;
Development and Office of Tourism Coordination;
(4) Organize special events to promote the country as
(2) Undersecretary for Tourism Services and Regional a tourist destination;
Offices, who shall be responsible for the Office of Tourism
Standards and all Regional Offices; (5) Gather market intelligence and research
information on tourist markets through the Foreign Field
(3) Undersecretary for Tourism Promotions, who shall Offices;
be responsible for the Bureau of International Tourism
Promotion, Bureau of Domestic Tourism Promotions and (6) Monitor trends and developments in international
Office of Tourism Information; and tourism through the Foreign Field Offices;
(4) Undersecretary for Internal Services, who shall be (7) Organize, set up and participate in international
responsible for the Financial and Management Service, meetings, conferences and conventions on tourism; and
Administrative Service and Legal Service. (8) Supervise foreign field offices charged with
coordinating and assisting in the marketing and
promotional activities and programs of the Department.
CHAPTER 3 Department Services
SECTION 14. Office of Tourism Information. — The
SECTION 7. Department Service Character and Office of Tourism Information shall have the following
Head. — The Department Services shall be essentially functions:
staff in character, each of which shall be headed by a
Service Chief. [(1987), Sec. 14] (1) Promote a continuing wholesome and informative
relationship between the Department and the travelling
SECTION 8. Financial and Management Service. — public;
The Financial and Management Service shall provide the
Department with staff advice and assistance on (2) Cause the widest publicity of existing and
budgetary, financial and management matters and shall forthcoming activities and programs of the Department
perform such other related functions as may be assigned through a functional relationship with the media; and
or delegated to it by the Secretary. (3) Organize and disseminate promotional and tourist
SECTION 9. Administrative Service. — The information materials to various tourist assistance
Administrative Service shall provide the Department with centers.
staff advice and assistance on personnel information, SECTION 15. Office of Tourism Standards. — The
records, communications, supplies, equipment, Office of Tourism Standards shall have the following
collection, disbursements, security, other custodial work functions:
and such other related duties and responsibilities as may
be assigned or delegated to it by the Secretary. (1) Approve the construction standards of
tourism-oriented establishments including hotels, resorts,
SECTION 10. Legal Service. — The Legal Service shall inns, motels, and other related facilities and services,
provide the Department with staff advice and assistance prescribe information reporting on purchase, sale or lease
on all legal matters affecting the Department and of accredited tourism-oriented facilities and ensure a
perform such other related functions as may be assigned harmonious, positive and constructive development of
or delegated to it by the Secretary. the tourism industry;
(2) Formulate operating standards for
CHAPTER 4 Bureaus and Offices tourism-oriented establishments including hotels and
SECTION 11. Bureau and Office Character and Head. resorts, restaurants, inns, motels, and other related
— The Bureaus and Offices shall be essentially staff in facilities and services, that will prescribe minimum levels
character, each of which shall be headed by a Staff of operating quality and efficiency in order to ensure that
Director. facilities, personnel and services are maintained in
accordance with acceptable local and international
SECTION 12. Bureau of Domestic Tourism Promotions norms in the operations of tourism-oriented
and Information. — The Bureau of Domestic Tourism establishments;
Promotions and Information shall have the following
functions: (3) Regulate and issue licenses to qualified travel
agencies in accordance with the rules and regulations
(1) Organize and coordinate programs of public promulgated by the Secretary;
relations, promotions, and publicity; encourage domestic
tourism and encourage overseas visitors to travel (4) Encourage formation of industry associations for
throughout the Philippines; accreditations by the Department;
(2) Design and provide support for dissemination of (5) Assist in auditioning Filipino entertainers in order to
materials for publicity as tourist attractions in the project properly and enhance the Filipino image in the
Philippines; promote educational and cultural tours to entertainment field and thereby gain better international
increase travel within the country; respect and reputation; and
(3) Promote, organize and provide support for tourist (6) Coordinate with all agencies concerned on the
councils; enforcement of rules and regulations promulgated by the
Department.


SECTION 16. Office of Tourism Development (3) Enlist the assistance and support of any or all of the
Planning. — The Office of Tourism Development government agencies in the implementation of the
Planning shall have the following functions: policies of the Department; and
(1) Formulate plans and policies for the development of (4) Provide support to all tourism-related activities of
the tourism industry, including but not limited to national the private sector needing government assistance.
tourism plans and the identification of master physical
plans for tourism zones within the country;
CHAPTER 5 Foreign and Regional Offices
(2) Monitor and evaluate plans, programs and projects
of the Department to ensure their effective SECTION 19. Foreign Field Offices. — Subject to the
implementation; approval of the President, the Department shall have
foreign offices as may be necessary in the marketing and
(3) Undertake research studies and surveys for the promotion of the Philippines as an international tourist
continuing analysis of the tourism industry; destination, which shall oversee and implement the
(4) Compile and integrate statistical data on the marketing and promotional programs of the
tourism industry and publish the same; Department.
(5) Coordinate and assist in the implementation of SECTION 20. Regional Office. — The Department is
tourism-oriented projects, plans or operations of local authorized to establish, operate and maintain a Regional
governments, governmental agencies, public Office in each of the administrative regions of the
corporations, and where clearly necessary and feasible, country, under the immediate supervision of the
those of private entities so as to make possible the Assistant Secretary for Tourism Services and Regional
accelerated and balanced growth and development of Offices. A Regional Office shall be headed by a Regional
tourism in the Philippines which is responsible to the Director and shall, within its administrative region, have
needs of targeted travel markets, domestic and foreign, the following functions:
and beneficial to a greater number of Filipino (1) Implement laws, policies, plans, programs, rules and
communities; regulations of the Department;
(6) Analyze specific geographical areas with potential (2) Provide economical, efficient and effective service
tourism value leading to the preparation of a national to the people;
tourism development plan which will establish the order
of priority for the development plan of tourist zones; (3) Coordinate with regional offices of other
departments, bureaus and agencies;
(7) Formulate a government plan for each zone in
coordination with other government agencies and local (4) Coordinate with local government units; and
government units exercising political jurisdiction over the (5) Perform such other functions as may be provided
area, provided, that the plan of the zone to be developed by law.
shall cover specifically those aspects pertaining to
tourism; provided further, that the tourism development
plan is fully coordinated and integrated with other CHAPTER 6 Attached Agencies
sectoral plans for the area; and SECTION 21. Attached Agencies. — The Philippine
(8) Coordinate with appropriate local government Tourism Authority, and Philippine Convention Bureau,
units and other government agencies to assist in Intramuros Administration, and National Parks
formulating and implementing zone regulations, Development Committee are hereby attached to the
including building codes, hotel standards and such other Department and shall continue to operate and function
restrictions as may be necessary within a tourist zone to in accordance with the respective charters/laws/orders
control its orderly development; preserve such historical, provided in this Code.
cultural or natural assets or relics giving the zone its
tourism value and significance; and assure adherence to
approved zone development plans; TITLE XIV Environment and Natural Resources
(9) Ensure through proper coordination with
appropriate government agencies and local private CHAPTER 1 General Provisions
agencies the social growth of the community within a SECTION 1. Declaration of Policy. — (1) The State shall
tourist zone; carefully control possible negative social ensure, for the benefit of the Filipino people, the full
impact brought about by tourism development. exploration and development as well as the judicious
SECTION 17. Office of Product Development. — The disposition, utilization, management, renewal and
Office of Product Development shall have the following conservation of the country's forest, mineral, land, waters,
functions: fisheries, wildlife, offshore areas and other natural
(1) Develop and conceptualize new products which can resources, consistent with the necessity of maintaining a
lead to the enhancement of tourist sites and facilities; sound ecological balance and protecting and enhancing
the quality of the environment and the objective of
(2) Undertake pilot tests for testing the viability and making the exploration, development and utilization of
acceptability of new tourism-related products and such natural resources equitably accessible to the
programs; and different segments of the present as well as future
(3) Encourage and promote joint undertakings with generations.
the private sector of new tourism-related products and (2) The State shall likewise recognize and apply a true
programs. value system that takes into account social and
SECTION 18. Office of Tourism Coordination. — The environmental cost implications relative to the utilization,
Office of Tourism Coordination shall have the following development and conservation of our natural resources.
functions: SECTION 2. Mandate. — (1) The Department of
(1) Initiate and coordinate with all sectors, both Environment and Natural Resources shall be primarily
government and private, the development of the national responsible for the implementation of the foregoing
tourism plans and policies; policy.
(2) Coordinate priority activities and projects of the (2) It shall, subject to law and higher authority, be in
Department, and other government agencies, and the charge of carrying out the State's constitutional mandate
private sector; to control and supervise the exploration, development,
utilization, and conservation of the country's natural
resources.



SECTION 3. Guidelines for Implementation. — In the (e) Maintenance of a wholesome natural environment
discharge of its responsibility the Department shall be by enforcing environmental protection laws; and
guided by the following objectives: (f) Encouragement of greater people participation and
(1) Assure the availability and sustainability of the private initiative in rural resource management;
country's natural resources through judicious use and (10) Promulgate rules and regulations necessary to:
systematic restoration or replacement, whenever
possible; (a) Accelerate cadastral and emancipation patent
surveys, land use planning and public land titling;
(2) Increase the productivity of natural resources in
order to meet the demands for the products from forest, (b) Harness forest resources in a sustainable manner,
mineral, land and water resources of a growing to assist rural development, support forest-based
population; industries, and provide raw materials to meet increasing
demands, at the same time keeping adequate reserves
(3) Enhance the contribution of natural resources for for environmental stability;
achieving national economic and social development;
(c) Expedite mineral resources surveys, promote the
(4) Promote equitable access to natural resources by production of metallic and non-metallic minerals and
the different sectors of the population; and encourage mineral marketing;
(5) Conserve specific terrestrial and marine areas (d) Assure conservation and judicious and sustainable
representative of the Philippine natural and cultural development of aquatic resources.
heritage for present and future generations.
(11) Assess, review and provide direction to, in
SECTION 4. Powers and Functions. — The coordination with concerned government agencies,
Department shall: energy research and development programs, including
(1) Advise the President and the Congress on the identification of sources of energy and determination of
enactment of laws relative to the exploration, their commercial feasibility for development;
development, use, regulation and conservation of the (12) Regulate the development, disposition, extraction,
country's natural resources and the control of pollution; exploration and use of the country's forest, land, water
(2) Formulate, implement and supervise the and mineral resources;
implementation of the government's policies, plans, and (13) Assume responsibility for the assessment,
programs pertaining to the management, conservation, development, protection, licensing and regulation as
development, use and replenishment of the country's provided for by law, where applicable, of all energy and
natural resources; natural resources; the regulation and monitoring of
(3) Promulgate rules and regulations in accordance service contractors, licensees, lessees, and permit for the
with law governing the exploration, development, extraction, exploration, development and use of natural
conservation, extraction, disposition, use and such other resources products; the implementation of programs and
commercial activities tending to cause the depletion and measures with the end in view of promoting close
degradation of our natural resources; collaboration between the government and the private
(4) Exercise supervision and control over forest lands, sector; the effective and efficient classification and
alienable and disposable public lands, mineral resources sub-classification of lands of the public domain; and the
and, in the process of exercising such control, impose enforcement of natural resources and environmental
appropriate taxes, fees, charges, rentals and any such laws, rules and regulations;
form of levy and collect such revenues for the exploration, (14) Promulgate rules, regulations and guidelines on
development, utilization or gathering of such resources; the issuance of licenses, permits, concessions, lease
(5) Undertake the exploration, assessment, agreements and such other privileges concerning the
classification and inventory of the country's natural development, exploration and utilization of the country's
resources, using ground surveys, remote sensing and marine, freshwater, and brackish water and over all
complementary technologies; aquatic resources of the country and shall continue to
oversee, supervise and police our natural resources;
(6) Promote proper and mutual consultation with the cancel or cause to cancel such privileges upon failure,
private sector on matters involving natural resources non-compliance or violations of any regulation, order, and
exploration, development, use and conservation; for all other causes which are in furtherance of the
(7) Undertake geological surveys of the whole country conservation of natural resources and supportive of the
including its territorial waters; national interest;
(8) Issue licenses and permits for activities related to (15) Exercise exclusive jurisdiction on the management
the use and development of aquatic resources, treasure and disposition of all lands of the public domain and
hunting, salvaging of sunken vessels and other similar serve as the sole agency responsible for classification,
activities; sub-classification, surveying and titling of lands in
consultation with appropriate agencies;
(9) Establish policies and implement programs for the:
(16) Implement measures for the regulation and
(a) Accelerated inventory, survey and classification of supervision of the processing of forest products, grading
lands, forest and mineral resources, using appropriate and inspection of lumber and other forest products and
technology, to be able to come up with a more accurate monitoring of the movement of timber and other forest
assessment of resource quality and quantity; products;
(b) Equitable distribution of natural resources through (17) Promulgate rules and regulations for the control of
the judicious administration, regulation, utilization, water, air and land pollution;
development and conservation of public lands, forest,
water and mineral resources (including mineral (18) Promulgate ambient and effluent standards for
reservation areas), that would benefit a greater number water and air quality including the allowable levels of
of Filipinos; other pollutants and radiations;
(c) Promotion, development and expansion of natural (19) Promulgate policies, rules and regulations for the
resource-based industries; conservation of the country's genetic resources and
biological diversity, and endangered habitats;
(d) Preservation of cultural and natural heritage
through wildlife conservation and segregation of national (20) Formulate an integrated, multi-sectoral, and
parks and other protected areas; multi-disciplinary National Conservation Strategy, which


will be presented to the Cabinet for the President's laws, policies, plans, and programs and projects, also be
approval; assisted by seven (7) Assistant Secretaries who shall be
(21) Perform such other functions as may be provided responsible for the following: one (1) for Policy and
by law. Planning Studies, one (1) for Foreign-Assisted and Special
Projects, one (1) for Field Operations in Luzon, one (1) for
SECTION 5. Organizational Structure. — The Field Operations in the Visayas, and one (1) for Field
Department shall consist of the Department Proper, the Operations in Mindanao, one (1) for Legal Affairs, and one
Staff Offices, the Staff Bureaus, and the Regional Offices, (1) for Management Services.
Provincial Offices and Community Offices.
SECTION 11. Public Affairs Office. — The Public Affairs
Office, under the Office of the Secretary, shall be headed
CHAPTER 2 The Department Proper by a Director to be assisted by an Assistant Director, and
shall serve as the public information arm of the
SECTION 6. Composition. — The Department Proper
Department. It shall be responsible for disseminating
shall be composed of the Office of the Secretary, the
information on natural resources development policies,
Offices of the Undersecretaries and Assistant Secretaries,
plans, programs and projects and respond to public
and the Public Affairs Office, Special Concerns Office, and
queries related to the development and conservation of
the Pollution Adjudication Board.
natural resources.
SECTION 12. Special Concerns Office. — The Special
the Secretary shall consist of the Secretary and his
Concerns Office, also under the Office of the Secretary,
immediate staff.
shall be headed by a Director to be assisted by an
SECTION 8. The Secretary. — The Secretary shall: Assistant Director, and shall be responsible for handling
(1) Advise the President on the promulgation of rules, priority areas or subjects identified by the Secretary
regulations and other issuances relative to the which necessitate special and immediate attention.
conservation, management, development and proper use SECTION 13. Pollution Adjudication Board. — The
of the country's natural resources; Pollution Adjudication Board, under the Office of the
(2) Establish policies and standards for the efficient Secretary, shall be composed of the Secretary as
and effective operations of the Department in Chairman, two Undersecretaries as may be designated by
accordance with the programs of the government; the Secretary, the Director of Environmental
Management, and three others to be designated by the
(3) Promulgate rules, regulations and other issuances Secretary as members. The Board shall assume the
necessary in carrying out the Department's mandate, powers and functions of the Commission/Commissioners
objectives, policies, plans, programs and projects. of the National Pollution Control Commission with
(4) Exercise supervision and control over all functions respect to the adjudication of pollution cases under
and activities of the Department; Republic Act 3931 and Presidential Decree 984,
particularly with respect to Section 6 letters (e), (f), (g), (j),
(5) Delegate authority for the performance of any (k) and (p) of P.D. 984. The Environmental Management
administrative or substantive function to subordinate Bureau shall serve as the Secretariat of the Board. These
officials of the Department; and powers and functions may be delegated to the regional
(6) Perform such other functions as may be provided officers of the Department in accordance with rules and
by law or assigned by the President. regulations to be promulgated by the Board.
be assisted by five (5) Undersecretaries upon the CHAPTER 3 The Staff Sectoral Bureaus
recommendation of the Secretary. The Secretary is
hereby authorized to delineate, assign and/or reassign the SECTION 14. Forest Management Bureau. — The
respective functional areas of responsibility of each Forest Management Bureau shall be headed by a Director
Undersecretary, Provided, That such responsibility shall and assisted by an Assistant Director, and shall integrate
be with respect to the mandate and objectives of the and absorb the powers of the Bureau of Forest
Department; and Provided, further, That no Development and the Wood Industry Development
Undersecretary shall be assigned primarily administrative Authority which were abolished by Executive Order No.
responsibilities. Within his functional area of 131, except those line functions and powers thereof which
responsibility, an Undersecretary shall have the following are transferred to the regional field office.
functions: It shall advise the Secretary on matters pertaining to
(1) Advise the Secretary in the promulgation of forest development and conservation. As its primary
Department orders, administrative orders and other functions, it shall:
issuances, with respect to his area of responsibility; (1) Recommend policies and/or programs for the
(2) Exercise supervision and control over the offices, effective protection, development, occupancy,
services, operating units and officers and employees management and conservation of forest lands and
under his responsibility; watersheds, including the grazing and mangrove areas;
reforestation and rehabilitation of critically denuded or
(3) Promulgate rules and regulations, consistent with degraded forest reservations, improvement of water
Department policies, that will efficiently and effectively resource use and development, development of national
govern the activities of units under his responsibility; parks, preservation of wilderness areas, game refuges and
(4) Coordinate the functions and activities of the units wildlife sanctuaries, ancestral lands, wilderness areas and
under his responsibility with those of other units under other natural preserves, development of forest
the responsibility of other Undersecretaries; plantations, including rattan, bamboo, and other valuable
non-timber forest resources; and rationalization of the
(5) Exercise such authority on substantive and wood-based industries, regulation of the utilization and
administrative matters related to the functions and exploitation of forest resources, including wildlife, to
activities of units under his responsibility to the extent ensure continuous supply of forest and goods and
granted by the Secretary through administrative services;
issuances; and
(2) Advise the regional offices in the implementation
(6) Perform such other functions as may be provided of the above policies and/or programs;
(3) Develop plans, programs, operating standards and
SECTION 10. Assistant Secretaries. — The Secretary administrative measures to promote the Bureau's
and the Undersecretaries shall, in the formulation, objectives and functions;
management and implementation of natural resources



(4) Assist in the monitoring and evaluation of forestry (6) Develop and promulgate standards and operating
and watershed development projects to ensure efficiency procedures on mineral resources development and
and effectiveness; geology;
(5) Undertake studies on the economics of forestry and (7) Supervise and control the development and
forest-based industries, including supply and demand packaging of nationally applicable technologies on
trends on the local, national and international levels, geological survey, mineral resource assessment, mining
identifying investment problems and opportunities in and metallurgy; the provision of geological, metallurgical,
various areas; and chemical and rock mechanics laboratory services; the
(6) Perform such other functions as may be provided conduct of marine geological and geophysical survey and
by law or assigned by the Secretary. natural exploration drilling programs; and
SECTION 15. Lands Management Bureau. — The (8) Perform such other functions as may be provided
Lands Management Bureau, to be headed by a Director by law or assigned by the Secretary.
and assisted by an Assistant Director, shall absorb the SECTION 17. Environmental Management Bureau. —
functions and powers of the Bureau of Lands abolished The Environmental Management Bureau, to be headed
by Executive Order No. 131, except those line functions by a Director who shall be assisted by an Assistant
and powers thereof which are transferred to the regional Director shall, subject to the provisions of this Code
field offices. relative to the Pollution Adjudication Board, absorb and
It shall advise the Secretary on matters pertaining to integrate the powers and functions of the National
rational land management and disposition and shall have Environmental Protection Council, the National Pollution
the following functions: Control Commission, and the Environmental Center of
the Philippines which are hereby abolished.
(1) Recommend policies and programs for the efficient
and effective administration, surveys, management and It shall advise the Secretary on matters relating to
disposition of alienable and disposable lands of the public environmental management, conservation, and pollution
domain and other lands outside the responsibilities of control, and shall:
other government agencies, such as reclaimed areas and (1) Recommend possible legislation, policies and
other areas not needed for or are not being utilized for programs for environmental management and pollution
the purposes for which they have been established; control;
(2) Advise the Regional Offices on the efficient and (2) Advise the Regional Offices in the efficient and
effective implementation of policies, programs and effective implementation of policies, programs, and
projects for more effective public lands management; projects for the effective and efficient environmental
(3) Assist in the monitoring and evaluation of land management and pollution control;
surveys, management and disposition of lands to ensure (3) Formulate environmental quality standards such as
efficiency and effectiveness thereof; the quality standards for water, air, land, noise and
(4) Issue standards, guidelines, regulations and orders radiations;
to enforce policies for the maximization of land use and (4) Recommend rules and regulations for
development; environmental impact assessments and provide technical
(5) Develop operating standards and procedures to assistance for their implementation and monitoring;
promote the Bureau's objectives and functions; and (5) Formulate rules and regulations for the proper
(6) Perform such other functions as may be provided disposition of solid wastes, toxic and hazardous
by law or assigned by the Secretary. substances;
SECTION 16. Mines and Geo-Sciences Bureau. — The (6) Advise the Secretary on the legal aspects of
Mines and Geo-Sciences Bureau, to be headed by a environmental management and pollution control and
Director and assisted by an Assistant Director shall absorb assist in the conduct of public hearings in pollution cases;
the functions of the Bureau of Mines and Geo-Sciences, (7) Provide secretariat assistance to the Pollution
Mineral Reservations Development Board, and the Gold Adjudication Board;
Mining Industry Development Board which were (8) Coordinate the inter-agency committees that may
abolished by Executive Order No. 131, except line functions be created for the preparation of the State of the
and powers thereof which are transferred to the regional Philippine Environment Report and the National
field offices. Conservation Strategy;
It shall advise the Secretary on matters pertaining to (9) Provide assistance to the Regional Offices in the
geology and mineral resources exploration, development, formulation and dissemination of information on
utilization and conservation and shall: environmental and pollution matters to the general
(1) Recommend policies, regulations or programs public;
pertaining to mineral resources development and (10) Assist the Secretary and the Regional Officers by
geology; providing technical assistance in the implementation of
(2) Advise the Secretary on the granting of mining environmental and pollution laws; and
rights and contracts over areas containing metallic and (11) Provide scientific assistance to the Regional Offices
non-metallic mineral resources; in the conduct of environmental research programs.
(3) Advise the Regional Offices on the effective SECTION 18. Ecosystems Research and Development
implementation of mineral development and Bureau. — The Ecosystems Research and Development
conservation programs as well as geological surveys; Bureau, to be headed by a Director and assisted by an
(4) Recommend policies, regulations and oversee the Assistant Director, shall absorb the powers and functions
development and exploitation of mineral resources of the of the Forest Research Institute and the National
sea within the country's jurisdiction such as silica sand, Mangrove Committee, which are hereby abolished.
gold placer, magnetic and chromite sand, etc; It shall:
(5) Assist in the monitoring and evaluation of the (1) Formulate and recommend an integrated research
Bureau's programs and projects to ensure efficiency and program relating to Philippine ecosystems and natural
effectiveness thereof; resources such as minerals, lands, forests, as holistic and
interdisciplinary fields of inquiry;


(2) Assist the Secretary in determining a system of under the supervision and control of the Undersecretary
priorities for the allocation of resources to various for Field Operations and shall be headed by a Regional
technological research programs of the department; Executive Director (with the rank of Regional Director)
(3) Provide technical assistance in the implementation who shall be assisted by five (5) Assistant Regional
and monitoring of the aforementioned research Technical Directors, (with the rank of Assistant Regional
programs; Director), one (1) each for Forestry, for Lands
Management, for Mines and Geo-Sciences,
(4) Generate technologies and provide scientific Environmental Management and Ecosystems Research,
assistance in the research and development of respectively, and who shall be Career Executive Service
technologies relevant to the sustainable uses of Officers.
Philippine ecosystems and natural resources; and
An Environment and Natural Resources Regional
(5) Assist the Secretary in the evaluation of the Office shall be located in the identified regional capital
effectiveness of the implementation of the integrated and shall have the following functions:
research program.
(1) Implement laws, policies, plans, programs, projects,
The Ecosystems Research and Development Bureau rules and regulations of the Department to promote the
shall directly manage and administer the Forest Research sustainability and productivity of natural resources, social
Institute Research Offices, laboratories, and forest equity in natural resource utilization and environmental
experiment stations located at UP Los Baños and such protection;
other field laboratories as the Secretary may assign to its
direct supervision. The Bureau shall coordinate all (2) Provide efficient and effective delivery of services to
technological researches undertaken by the field offices, the people;
assess and translate all recommendable findings and (3) Coordinate with regional offices of other
disseminate such findings for all possible users and departments, offices, agencies in the region and local
clientele. government units in the enforcement of natural resource
SECTION 19. Protected Areas and Wildlife Bureau. — conservation laws and regulations, and in the
The Protected Areas and Wildlife Bureau, to be headed by formulation/implementation of natural resource
a Director and assisted by an Assistant Director, shall programs and projects;
absorb the Division of Parks and Wildlife and the Marine (4) Recommend and, upon approval, implement
Parks Program of the Bureau of Forest Development as programs and projects on forestry, minerals, and land
well as the Calauit Game Preserve and Wildlife Sanctuary, management and disposition;
Presidential Committee on the Conservation of Tamaraw, (5) Conduct a comprehensive inventory of natural
Ninoy Aquino Parks and Wildlife Center (formerly Parks resources in the region and formulate regional short and
and Wildlife Nature Center), shares in Kabuhayan long-term development plans for the conservation,
Program and Agro Forestry State Projects of the KKK utilization and replacement of natural resources;
Processing Authority, all national parks, wildlife
sanctuaries and game preserves previously managed and (6) Evolve respective regional budget in conformity
administered by the Ministry of Human Settlements with the priorities established by the Regional
including National Parks Reservation situated in the Development Councils;
provinces of Bulacan, Rizal, Laguna and Quezon formerly (7) Supervise the processing of natural resources
declared as Bagong Lipunan Sites of said Ministry, Magat products, grade and inspect minerals, lumber and other
Forest Reservation and Mt. Arayat National Park, formerly wood processed products, and monitor the movement of
with the Ministry of Tourism. these products;
The Bureau shall: (8) Conduct field researches for appropriate
(1) Formulate and recommend policies, guidelines, technologies recommended for various projects; and
rules and regulations for the establishment and (9) Perform such other functions as may be provided
management of an Integrated Protected Areas Systems by law or assigned by the Secretary.
such as national parks, wildlife sanctuaries and refuge,
marine parks, and biospheric reserves; SECTION 22. Provincial and Community Offices. —
The Natural resources provincial and community offices
(2) Formulate and recommend policies, guidelines, shall each be headed by a provincial natural resource
rules and regulations for the preservation of biological officer and community natural resource officer,
diversity, genetic resources, the endangered Philippine respectively. They shall take over the functions of the
flora and fauna; district offices of the former Bureau of Forest
(3) Prepare an up-to-date listing of endangered flora Development, Bureau of Lands, and Bureau of Mines and
and fauna and recommend a program of conservation Geo-Sciences.
and propagation of the same;
(4) Assist the Secretary in the monitoring and CHAPTER 5 Attached Agencies and Corporations
assessment of the management of the Integrated
SECTION 23. Attached Agencies and Corporations. —
Protected Areas System and provide technical assistance
The following agencies and corporations shall be
to the Regional Offices in the implementation of
attached to and under the administrative supervision of
programs for these areas; and
the Department:
(1) National Mapping and Research Information
Authority;
(2) National Electrification Administration; and
CHAPTER 4 The Department Field Offices
(3) National Resources Development Corporation.
SECTION 20. Field Offices of the Department. — The
field offices of the Department are the Environmental The agencies attached to the Department shall
and Natural Resources Regional Offices in the thirteen continue to operate and function in accordance with the
(13) administrative regions of the country; the respective laws creating them, except as otherwise
Environment and Natural Resources Provincial Office in provided in this Code.
every province, and the Community Office in every
municipality, whenever deemed necessary.
SECTION 21. Environment and Natural Resources
Regional Office. — A Regional Office shall be directly


domestic and overseas services that are necessary with
due consideration for advances in technology;
TITLE XV Transportation and Communications
(11) Establish and prescribe rules and regulations for
the issuance of certificates of public convenience for
CHAPTER 1 General Provisions public land transportation utilities, such as motor
SECTION 1. Declaration of Policy. — The State is vehicles, trimobiles and railways;
committed to the maintenance and expansion of viable, (12) Establish and prescribe rules and regulations for
efficient, fast, safe and dependable transportation and the inspection and registration of air and land
communications systems as effective instruments for transportation facilities, such as motor vehicles,
national recovery and economic progress. It shall not trimobiles, railways and aircraft;
compete as a matter of policy with private enterprise and
shall operate transportation and communications (13) Establish and prescribe rules and regulations for
facilities only in those areas where private initiatives are the issuance of licenses to qualified motor vehicle drivers,
inadequate or non-existent. conductors and airmen;
SECTION 2. Mandate. — The Department of (14) Establish and prescribe the corresponding rules
Transportation and Communications shall be the primary and regulations for enforcement of laws governing land
policy, planning, programming, coordinating, transportation, air transportation and postal services,
implementing, regulating and administrative entity of including the penalties for violations thereof, and for the
the Executive Branch of the government in the deputation of appropriate law enforcement agencies in
promotion, development and regulation of dependable pursuance thereof;
and coordinated networks of transportation and (15) Determine, fix or prescribe charges or rates
communications systems as well as in the fast, safe, pertinent to postal services and to the operation of public
efficient and reliable postal, transportation and air and land transportation utility facilities and services,
communications services. except such rates or charges as may be prescribed by the
SECTION 3. Powers and Functions.— To accomplish Civil Aeronautics Board under its charter and, in cases
its mandate, the Department shall: where charges or rates are established by international
bodies or associations of which the Philippines is a
(1) Formulate and recommend national policies and participating member or by bodies or associations
guidelines for the preparation and implementation of recognized by the Philippine government as the proper
integrated and comprehensive transportation and arbiter of such charges or rates;
communications systems at the national, regional and
local levels; (16) Establish and prescribe the rules, regulations,
procedures and standards for the accreditation of driving
(2) Establish and administer comprehensive and schools;
integrated programs for transportation and
communications, and for this purpose, it may call on any (17) Administer and operate the Civil Aviation Training
agency, corporation or organization, whether public or Center (CATC) and the National Telecommunications
private, whose development programs include Training Institute (NTTI); and
transportation and communications as integral parts (18) Perform such other powers and functions as may
thereof, to participate and assist in the preparation and be provided by law.
implementation of such programs; SECTION 4. Organizational Structure. — The
(3) Assess, review and provide direction to Department shall consist of the Department Proper, the
transportation and communications research and Department Regional Offices, the Land Transportation
development programs of the government in Franchising and Regulatory Board, and the Attached
coordination with other institutions concerned; Agencies.
(4) Administer and enforce all laws, rules and
regulations in the field of transportation and CHAPTER 2 Department Proper
communications;
(5) Coordinate with the Department of Public Works the Secretary shall consist of the Secretary, his immediate
and Highways in the design, location, development, staff, the Franchising Review Staff and the Investigation,
rehabilitation, improvement, construction, maintenance Security and Law Enforcement Staff.
and repair of all infrastructure projects and facilities of the
Department. However, government corporate entities The Franchising Review Staff shall be headed by a
attached to the Department shall be authorized to Review Staff Director with the same rank, salary and
undertake specialized telecommunications, ports, privileges of a Department Regional Director who shall be
airports and railways projects and facilities as directed by appointed by the President upon the recommendation of
the President of the Philippines or as provided by law; the Secretary. The Franchising Review Staff shall assist
the Secretary in the review of cases and matters
(6) Establish, operate and maintain a nationwide pertaining to, among others, grants of franchises and the
postal system that shall include mail processing, delivery regulation thereof.
services and money order services and promote the art of
philately; The Investigation, Security and Law Enforcement Staff
shall be headed by a Staff Director with the same rank,
(7) Issue certificates of public convenience for the salary and privileges of a Department Service Chief. The
operation of public land and rail transportation utilities Investigation, Security and Law Enforcement Staff shall
and services; be responsible for: (a) providing security and intelligence
(8) Accredit foreign aircraft manufacturers or for the Department; (b) coordinating security and
international organizations for aircraft certification in intelligence activities of security units of its offices and
accordance with established procedures and standards; attached agencies; and (c) undertaking law enforcement,
functions and activities relating to land transportation.
(9) Establish and prescribe rules and regulations for
identification of routes, zones or areas of operation of SECTION 6. Undersecretaries. — The Secretary shall
particular operators of public land services; be assisted by four (4) Undersecretaries. Each
Undersecretary shall have control and supervision over
(10) Establish and prescribe rules and regulations for the respective offices and services assigned to him by the
the establishment, operation and maintenance of such Secretary.
telecommunications facilities in areas not adequately
served by the private sector in order to render such SECTION 7. Assistant Secretaries. — The Secretary
shall also be assisted by eight (8) Assistant Secretaries



each of whom shall be responsible for the four (4) staff all reasonable means to ascertain the facts in each case
offices and four (4) line offices. Each Assistant Secretary shall be used without regard to technicalities of law and
shall report to the respective Undersecretary to whom he procedures but all in the interest of due process; and
is assigned by the President. (5) To perform such other functions and duties as may
SECTION 8. Staff Offices. — The Department shall be provided by law, or as may be necessary, or proper or
have the following staff offices: incidental to its powers and functions.
(1) The Office of the Assistant Secretary for
Administrative and Legal Affairs composed of the CHAPTER 3 Department Services
Administrative Service and the Legal Service;
SECTION 13. Department Services. — The Department
(2) The Office of the Assistant Secretary for Finance Services shall include the following:
and Comptrollership composed of the Finance and
Management Service and the Comptrollership Service; (1) Administrative Service;
(3) The Office of the Assistant Secretary for Planning (2) Legal Service;
and Project Development composed of the Planning (3) Finance and Management Service;
Service and the Project Development Service; and
(4) Comptrollership Service;
(5) Planning Service;
Management Information and Project Management
composed of the Management Information Service and (6) Project Development Service;
the Project Management Service. (7) Management Information Service; and
SECTION 9. Line Offices. — The Department shall have (8) Project Management Service.
the following line offices:
Each of the above named services shall be headed by
(1) The Office of the Assistant Secretary for Land a Service Chief appointed by the President upon the
Transportation; recommendation of the Secretary.
(2) The Office of the Assistant Secretary for Postal
Services;
Telecommunications; and SECTION 14. Regional Offices. — The Department
shall have three (3) Regional Offices in each of the
(4) The Office of the Assistant Secretary for Air administrative regions of the country: the Regional Office
Transportation. for Land Transportation, the Regional Office for
The line offices shall each have an Executive Director Telecommunications and the Regional Office for Postal
who shall assist the respective Assistant Secretary in the Services. Each Regional Office shall be headed by a
implementation and enforcement of the policies, Regional Director to be assisted by an Assistant Regional
programs and projects, and the pertinent laws on their Director.
respective areas of responsibilities. The Regional Offices shall essentially be line in
SECTION 10. Service Units in the Office of the character and shall be responsible for the delivery of all
Assistant Secretary for Land Transportation. — There front line services of the Department.
shall be two service units in the Office of the Assistant For such purposes, the Regional Offices shall have,
Secretary for Land Transportation, namely: within their respective administrative regions, the
(1) Law Enforcement Service, and following functions:
(2) Traffic Adjudication Service. (1) Implement laws, policies, plans, programs, projects,
rules and regulations of the Department;
Each of the aforesaid service units shall be headed by a
Service Chief to be appointed by the President upon (2) Provide efficient and effective service to the people;
recommendation of the Secretary of Transportation and (3) Coordinate with regional offices of other
Communication. departments, offices and agencies;
SECTION 11. Functions of the Law Enforcement (4) Coordinate with local government units; and
Service. — The Law Enforcement Service shall have the
same functions and powers as those that the former Law (5) Perform such other functions as may be provided
Enforcement Division in the Office of the Assistant by law.
Secretary for Land Transportation exercised. The Office of the Secretary shall have direct line
SECTION 12. Functions of the Traffic Adjudication supervision and control over Regional Offices.
Service. — The Traffic Adjudication Service shall have the
following powers and functions: CHAPTER 5 Regulatory Board
(1) To hear and decide cases involving violations of SECTION 15. Land Transportation Franchising and
laws, rules and regulations governing land transportation Regulatory Board. — The quasi-judicial powers and
and to impose fines and/or penalties therefor; provided functions with respect to land transportation shall be
that violations resulting in damage to property and/or exercised through the Land Transportation and
physical injuries or violations constituting offenses Regulatory Board, hereinafter referred to as the "Board".
punishable under the Revised Penal Code and other
penal laws shall be under the jurisdiction of the regular SECTION 16. Composition of the Board. — The Board
courts; shall be composed of a Chairman and two (2) members
with the rank, salary and privileges of an Assistant
(2) To order the impounding of motor vehicles and Secretary, all of whom shall be appointed by the
confiscation of plates or the arrest of violators of laws, President of the Philippines upon recommendation of
rules and regulations governing land transportation; the Secretary of Transportation and Communications.
(3) To issue subpoena and subpoena duces tecum and One (1) member of the Board shall be a member of the
to summon witnesses to appear in any proceedings Bar and shall have been engaged in the practice of law in
thereof, and to administer oaths and affirmations; the Philippines for at least five (5) years, another a holder
of a degree in civil engineering, and the other a holder of
(4) To promulgate rules and regulations governing the a degree in economics, finance or management both
proceedings before it; provided that except with respect with the same number of years of experience and
to paragraph C, the rules of procedure and evidence practice.
prevailing in the courts of law shall not be controlling and



SECTION 17. Executive Director and Support Staff of and rules and regulations requiring operators of any
the Board. — The Board shall have an Executive Director public land transportation service to equip, install and
who shall also be appointed by the President of the provide in their utilities and in their stations such devices,
Philippines upon the recommendation of the Secretary of equipment, facilities and operating procedures and
Transportation and Communications. He shall have the techniques as may promote safety, protection, comfort
rank, salary and privileges of a Department Service Chief. and convenience to persons and property in their charges
He shall assist the Board in the performance of its powers as well as the safety of persons and property within their
and functions. areas of operation;
The Board shall be supported by the Technical (12) Coordinate and cooperate with other government
Evaluation Division, Legal Division, Management agencies and entities concerned with any aspect
Information Division, Administrative Division and Finance involving public land transportation services with the end
Division. in view of effecting continuing improvement of such
SECTION 18. Supervision and Control Over the Board. services; and
— The Secretary of Transportation and Communications, (13) Perform such other functions and duties as may
through his duly designated Undersecretary, shall be provided by law, or as may be necessary, or proper or
exercise administrative supervision and control over the incidental to the purposes and objectives of the
Land Transportation Franchising and Regulatory Board. Department;
SECTION 19. Powers and Functions of the Land SECTION 20. Decisions of the Board; Appeals
Transportation Franchising and Regulatory Board. — therefrom or Review Thereof . — The Board, in the
The Board shall: exercise of its powers and functions, shall sit and render
(1) Prescribe and regulate routes, economically viable its decision en banc. Every such decision, order, or
capacities, and zones or areas of operation of public land resolution of the Board must bear the concurrence and
transportation services provided by motorized vehicles in signature of at least two (2) members thereof.
accordance with the public land transportation The decision, order or resolution of the Board shall be
development plans and programs approved by the appealable to the Secretary within thirty (30) days from
Department of Transportation and Communications; receipt of the decision. However, the Secretary may motu
(2) Issue, amend, revise, suspend or cancel Certificates proprio review any decision or action of the Board before
of Public Convenience or permits authorizing the the same becomes final.
operation of public land transportation services provided SECTION 21. Regional Franchising and Regulatory
by motorized vehicles, and prescribe the appropriate Offices. — There shall be a Regional Franchising and
terms and conditions therefor; Regulatory Office in each of the administrative regions of
(3) Determine, prescribe, approve and periodically the country which shall be headed by a Regional Director
review and adjust reasonable fares, rates and other having the rank, salary and privileges of a Department
related charges, relative to the operation of public land Assistant Regional Director. The Regional Franchising and
transportation services provided by motorized vehicles; Regulatory Offices shall hear and decide uncontested
applications/petitions for routes, within their respective
(4) Issue preliminary or permanent injunction, whether administrative regions but that applications/petitions for
prohibitory or mandatory, in all cases in which it has routes extending beyond their respective territorial
jurisdiction and in which cases the pertinent provisions of jurisdiction shall be heard and decided by the Board.
the Rules of Court shall apply;
SECTION 22. Appeals. — The decisions, orders or
(5) Punish for contempt of the Board, both direct and resolutions of the Regional Franchising and Regulatory
indirect, in accordance with the pertinent provisions of, Offices shall be appealable to the Board within thirty (30)
and the penalties prescribed by, the Rules of Court; days from receipt of the decision.
(6) Issue subpoena and subpoena duces tecum and to
summon witnesses appear in any proceedings of the CHAPTER 6 Attached Agencies
Board, to administer oaths and affirmations, and, in
appropriate cases, to order the search and seizure of all SECTION 23. Attached Agencies and Corporations. —
vehicles and documents, upon probable cause and as The following agencies and corporations are attached to
may be necessary for the proper disposition of the cases the Department: The Philippine National Railways, the
before it; Maritime Industry Authority, the Philippine National
Lines, the Philippine Aerospace Development
(7) Conduct investigations and hearings of complaints Corporation, the Metro Manila Transit Corporation, the
for violation of the public service laws on land Office of Transport Cooperatives, the Philippine Ports
transportation and of the Board's rules and regulations, Authority, the Philippine Merchant Marine Academy, the
orders, decisions or rulings and to impose fines or Toll Regulatory Board, the Light Rail Transit Authority, the
penalties for such violations; Transport Training Center, the Civil Aeronautics Board,
(8) Review motu proprio the decisions/actions of the the National Telecommunications Commission and the
Regional Franchising and Regulatory Offices; Manila International Airport Authority.
(9) Promulgate rules and regulations governing SECTION 24. Functions of Attached Agencies and
proceedings before the Board and the Regional Corporations. — The Agencies attached to the
Franchising and Regulatory Office. However, except with Department shall continue to operate and function in
respect to paragraphs 4, 5, 6 and 7 hereof, the rules of accordance with the respective charters or laws creating
procedure and evidence prevailing in the courts of law them, except when they conflict with this Code.
should not be controlling but rather the spirit and
intention of said rules. The Board and the Regional
Franchising and Regulatory Offices shall use every and all TITLE XVI Social Welfare and Development
reasonable means to ascertain facts in each case speedily
and objectively and without regard to technicalities of law
and procedures, all in the interest of due process; CHAPTER 1 General Provisions
(10) Fix, impose and collect, and periodically review SECTION 1. Declaration of Policy. — The State is
and adjust, reasonable fees and other related charges for committed to the care, protection, and rehabilitation of
services rendered; individuals, families and communities which have the
least in life and need social welfare assistance and social
(11) Formulate, promulgate, administer, implement work intervention to restore their normal functioning and
and enforce rules and regulations on land transportation enable them to participate in community affairs.
public utilities, standards of measurements or design,



SECTION 2. Mandate. — The Department shall provide (16) Deputize local government units and other
a balanced approach to welfare whereby the needs and agencies of government as are necessary in providing
interests of the population are addressed not only at the disaster relief;
outbreak of crisis but more importantly at the stage (17) Coordinate all activities pertaining to the
which would inexorably lead to such crisis. Following such implementation of programs and services for the
strategy, the Department's objectives shall be to: disabled, the aging and other socially disadvantaged; and
(1) Care for, protect and rehabilitate the physically and (18) Perform such other functions as may be provided
mentally handicapped and socially disabled constituents, by law.
for effective social functioning;
SECTION 4. Organizational Structure. —The
(2) Provide an integrated welfare package to its Department, aside from the Department Proper
constituents on the basis of their needs and coordinate comprising the Office of the Secretary, the Offices of the
the service facilities required from such departments or Undersecretaries and Assistant Secretaries and the
agencies, governmental and non-governmental, which Services, shall consist of the Bureaus, Regional Offices,
can best provide them; Provincial/City Offices and Municipal/District Offices.
(3) Arrest the further deterioration of the socially
disabling or dehumanizing conditions of the
disadvantaged segment of the population at the CHAPTER 2 Department Proper
community level; and SECTION 5. Office of the Secretary. — The Office of
(4) Advocate for policies and measures addressing the Secretary shall consist of the Secretary and the
social welfare concerns. Secretary's immediate staff, and the Public Affairs and
Liaison Service.
its mandate and objectives, the Department shall: SECTION 6. Undersecretaries. — The Secretary shall
be assisted by two (2) Undersecretaries, at least one of
(1) Formulate, develop and implement plans, programs whom must belong to the career executive service. One
and projects in the field of social welfare and Undersecretary shall supervise internal operations while
development; the other Undersecretary shall handle the liaison
(2) Adopt policies to ensure effective implementation between the Secretary and the attached agencies of the
of programs for public and private social welfare services; Department.
(3) Promote, support and coordinate the SECTION 7. Assistant Secretaries. — The Secretary
establishment, expansion and maintenance of shall also be assisted by three (3) career Assistant
non-governmental social welfare facilities, projects and Secretaries who shall respectively perform the following
services; functions:
(4) Establish, operate, maintain and otherwise support (1) Supervise the Personnel Development Service;
institutional facilities, projects and services for its Administrative Service and Financial Service;
constituents; (2) Supervise the Bureau of Child and Youth Welfare;
(5) Promote, build and strengthen people's Bureau of Women's Welfare; Bureau of Family
organizations for a self-directing welfare system at the Community Welfare; Bureau of Emergency Assistance;
grassroots level; and Bureau of Disabled Persons' Welfare;
(6) Promote, support and coordinate networks and (3) Supervise the Planning and Monitoring Service and
facilities for the identification and delivery of appropriate the Legal Service, and assist the Undersecretary and the
interventions to its welfare constituents; Secretary in matters pertaining to regional or field
operations.
(7) Accredit institutions and organizations engaged in
social welfare activities and provide consultative and
information services to them; CHAPTER 3 Department Services
(8) Undertake researches and studies on matters SECTION 8. Services of the Department. —The
pertaining to its constituency; Services listed in Section 7(1) and (3) hereof and the Public
(9) Initiate, promote and maintain bilateral and Affairs and Liaison Service shall respectively have the
multilateral linkages, for technical cooperation, in following functions:
coordination with the Department of Foreign Affairs; (1) The Personnel Development Service shall provide
(10) Provide advisory services and develop and the Department with services relating to manpower,
implement training standards and programs for career planning and development, personnel
personnel, social workers and students and third-country transactions, and employee welfare;
participants for career and staff development in social (2) The Financial Service shall provide the Department
welfare activities; with services relating to budget, collection, disbursement,
(11) Disseminate information and publish technical and other financial matters;
bulletins on social welfare and development; (3) The Administrative Service shall provide the
(12) Deputize law enforcement agencies to assist in the Department with services relating to records,
implementation of laws, rules and regulations for the correspondence, supplies, property and equipment,
protection of the rights of the exploited, abused and security and general services;
disadvantaged; (4) The Planning and Monitoring Service shall provide
(13) Regulate fund drives, public solicitations and technical services to the Department in the areas or
donations for charitable or welfare purposes; overall policy formulation, strategic and operational
planning, management systems or procedures, and the
(14) Set standards, accredit and monitor performance evaluation and monitoring of Department programs,
of all social welfare activities in both public and private projects and internal operations;
sectors;
(5) The Legal Service shall provide the Department
(15) Exercise functional and technical supervision over with services on legal matters, especially on proposed
social workers in other government settings or agencies legislations;
like courts, hospitals, schools and housing projects;
(6) The Public Affairs and Liaison Service in the Office
of the Secretary shall provide public information services
and publications as well as coordinate and mobilize


volunteers, non-governmental organizations and eradication of exploitation of women in any form, such as
cause-oriented groups in partnership with the but not limited to prostitution and illegal recruitment; as
Department. well as the promotion of skills for employment and
Each of the Services shall be headed by a Staff Director self-actualization;
and may have divisions whenever necessary for the (5) Bureau of Child and Youth Welfare — care and
performance of its functions. protection of abandoned, neglected, abused or exploited
children and youth, delinquents, offenders, the disturbed,
street children, victims of prostitution and others, for their
CHAPTER 4 Bureaus and Offices social adjustment and economic self-sufficiency.
SECTION 9. Composition. — The Staff bureaus listed in
Section 7(2) hereof shall be essentially staff in character
and as such shall exercise technical supervision over the CHAPTER 5 Regional Offices
Regional Offices; shall be primarily involved in the SECTION 12. Regional Office. — The Department is
development of policies and programs within their hereby authorized to establish, operate and maintain a
respective functional specializations; and shall formulate Regional Office in each of the administrative regions of
and develop related policies, guidelines and standards the country.
necessary in guiding the Regional Offices in the proper SECTION 13. Functions. —A Regional Office shall:
implementation of such policies and programs.
(1) Provide within the region efficient and effective
SECTION 10. Functions. — Each of the staff bureaus services to its constituents; and for such purposes,
shall: establish, operate, promote and support, at the
(1) Formulate programs, policies, rules, regulations and minimum, the following welfare facilities:
standards relative to the implementation of their (a) Vocational Rehabilitation and Special Education
respective functional specialization; Center for the Handicapped;
(2) Initiate and administer pilot or special projects for (b) Reception and Study Center;
demonstration of the corresponding policies, programs,
services, strategies, methods, procedures and guidelines (c) Rehabilitation Center for Youth Offenders;
prior to nationwide implementation; (d) Day Care Centers;
(3) Audit, evaluate, and provide technical assistance (2) Ensure the implementation of laws, policies,
and consultative services to operating units and field programs, rules, and regulations regarding social welfare
offices and local government welfare departments on and development within the region;
program implementation;
(3) Secure effective coordination with other
(4) Develop standards and assess agencies for departments, agencies, institutions and organizations,
licensing and accreditation; especially local government units within the region;
(5) Review applications for regulatory purposes (4) Conduct continuing studies and planning, to
including tax exemptions for foreign donations; improve its services to its constituents.
(6) Provide advisory services to non-governmental SECTION 14. Welfare Facilities. — The Regional
agencies implementing programs and services for Offices are hereby authorized to establish, operate, and
welfare and development; maintain the following, insofar as necessary and
(7) Formulate the substantive content of, and assist in authorized by the Secretary:
the orientation and training on, the bureaus' programs, (1) Other Vocational Rehabilitation and Special
services, strategies, procedures, methods and guidelines; Education Centers for the Handicapped;
(8) Develop indigenous literature and other media (2) "Street Children" Centers;
materials for clients, volunteers and other audiences;
(3) Centers for Youth with Special Needs;
(9) Promote and develop a system of networking and
coordination with relevant welfare councils; (4) Other Centers for Youth Offenders;
(10) Undertake studies and action researches on (5) Homes for the Aged;
matters pertaining to client welfare and development (6) Homes for Unwed Mothers;
and propose relevant policies and amendments for
legislation; (7) Drug Abuse Centers;
(11) Maintain linkages relative to welfare programs or (8) Other Reception and Study Centers; and
projects for national, regional and interregional (9) Such other facilities as may be necessary to assist
cooperation. the socially disadvantaged.
SECTION 11. Areas of Specialization. — The SECTION 15. Regional Director. — The Regional Office
substantive/functional areas of specialization of the staff shall be headed by a Regional Director who shall be
bureaus shall be: responsible for efficiently and effectively carrying out its
(1) Bureau of Emergency Assistance — relief and functions. Toward this end, and in line with the policy of
rehabilitation of victims of natural calamities and social decentralization, the Regional Director shall be vested
disorganization and of cultural communities and other with the authority to exercise functional and
distressed and displaced persons; administrative supervision over Department provincial
operations as delegated by the Secretary including the
(2) Bureau of Family and Community Welfare — authority to contribute resources and personnel to
assistance to socially disadvantaged families and integrated region and province-wide development
communities including family planning, planning thrusts.
outreach programs to develop their capability in defining
needs and formulating solutions as well as setting up The Regional Director shall be assisted by two (2)
viable community structures which bring about desired Assistant Regional Directors, one for programs and one
social changes; for administration.
(3) Bureau of the Disabled Person's Welfare —

disability prevention and rehabilitation of the physically, CHAPTER 6 Provincial/City Offices
mentally and socially disabled persons; SECTION 16. Provincial/City Office. — The Department
(4) Bureau of Women's Welfare — promoting women's is hereby authorized to establish, operate and maintain
welfare, with specific attention to the prevention or Provincial/City Offices throughout the country with



jurisdiction over all municipalities/districts within the authorized representative may, for the protection of the
province. The Provincial/City Offices shall have the public, likewise investigate the books, papers, affairs and
following functions: activities related to the aforestated purposes of any such
(1) Formulate and coordinate the implementation of person, corporation, organization, or association:
operational, field-level plans/programs of the Provided, however, That the provisions of the preceding
Department; Section shall not apply to any organization or institution
established for charitable or public welfare purposes in its
(2) Provide specialized services and comprehensive campaign for raising funds or soliciting public
assistance to other department/agency units whenever subscriptions or any means for collecting funds which has
necessary; been authorized by Executive Proclamation.
(3) Secure all pertinent feedback and information from SECTION 22. Fees. — Upon approval of the application
field units as well as appropriate department/agency for a solicitation permit, a fee of Twenty-Five Pesos
units, particularly local government units, and (P25.00) shall be paid to the cashier of the Department.
communicate the same regularly to the Regional Office; The money collected as fee for the issuance of solicitation
(4) Establish and maintain a vocational rehabilitation permits shall accrue to the Department as aid for the
and special education program for the handicapped in maintenance of its institutions and social services for its
the form and magnitude appropriate for the needs of the clientele.
province.
SECTION 17. Provincial/City Welfare Office. — The CHAPTER 10 Social Welfare Agencies and Services
Provincial/City Office shall be headed by a Provincial/City SECTION 23. Social Welfare Services by Others. —
Social Welfare Officer who shall be accountable for the Social welfare services by the Department shall be
efficient and effective performance of its functions and without prejudice to similar efforts by any local
implementation of programs of the Department, within government unit or private agency, institution or group.
the province. The Provincial/City Social Welfare officer All Department units shall actively promote and extend
shall exercise functional administrative supervision over maximum assistance, including the provision of
field operations of the Department, including the counterpart or supplementary funds and resources, upon
authority to recommend that field resources and approval by the Secretary, to such efforts.
personnel be contributed to integrated,
municipality-wide development efforts. SECTION 24. Social Work Agency. — (1) No social work
agency shall operate and be accredited as such unless it
is registered with the Department which shall issue the
CHAPTER 7 Municipal/District Offices corresponding certificate of registration.
SECTION 18. Municipal/District Office. — The (2) Before any social work agency shall be duly
Department is hereby authorized to establish, operate registered, the following requirements must have been
and maintain a Municipal/District Office to service a complied with:
municipality or city district which shall be headed by the
Supervising Social Welfare Officer and shall be primarily (a) The applicant must be engaged mainly or generally
responsible for the efficient and effective implementation in social work activity or social services;
of the Department's field programs in the municipality or (b) The applicant has employed a sufficient number of
city, under the supervision of the Provincial/City Office. duly qualified and registered social worker to supervise
and take charge of its social service functions in
accordance with accepted social work standards;
CHAPTER 8 Attached Agencies
(c) The applicant must show, in a duly certified
SECTION 19. Agencies Under Administrative financial statement that at least sixty (60) percent of its
Supervision and Attached Agencies. — The Population funds are disbursed for direct social work services; and
Commission Council for the Welfare of Children, National
Nutrition Council and the National Council for the Welfare (d) The applicant keeps a social work record of all cases
of Disabled Persons and the agencies attached to the and welfare activities handled by it.
Department shall continue to operate and function in (3) A certificate of registration may be revoked if after
accordance with their respective charters or laws creating due investigation, the Department finds that the social
them, except as otherwise provided in this Code. work agency has failed to perform its function or has
violated existing laws, rules and regulations.
CHAPTER 9 Fund Drives SECTION 25. Child Welfare Agency. — (1) No person,
SECTION 20. Solicitation. — Any person, corporation, natural or juridical, shall establish any child welfare
organization, or association desiring to solicit or receive agency without first securing a license from the
contributions for charitable or public welfare purposes Department. Such license shall not be transferable and
shall first secure a permit from the Regional Offices of shall be used only by the person or institution to which it
the Department. Upon the filing of a written application was issued at the place stated therein. No license shall be
for a permit in the form prescribed by the Regional granted unless the purpose or function of the agency is
Offices of the Department, the Regional Director or his clearly defined and stated in writing. Such definition shall
duly authorized representative may, in his discretion, include the geographical area to be served, the children
issue a permanent or temporary permit or disapprove the to be accepted for care, and the services to be provided.
application. In the interest of the public, he may in his If the applicant is a juridical person, it must be
discretion renew or revoke any permit issued under Act registered in accordance with Philippine laws.
4075. (2) The work of all registered and licensed child welfare
SECTION 21. Requirements. — The Regional Director agencies shall be supervised and coordinated by the
of the Department may require the person, corporation, Department.
organization or association duly authorized to solicit (3) The Department may, after notice and hearing,
contributions for the above mentioned purposes to suspend or revoke the license of a child welfare agency
submit from time to time a verified report or information on any of the following grounds:
regarding their activities, the period covered by the
report, the collection and expenditures made and the (a) That the agency is being used for immoral
names and addresses of the contributors and persons to purposes;
whom assistance was rendered from the funds obtained.
This report or information shall be open for inspection of
the general public. The Regional Director or his duly



(b) That said agency is insolvent or is not in a financial
position to support and maintain the children therein or CHAPTER 2 Department Proper
to perform the functions for which it was granted;
(c) That the children therein are being neglected or are the Secretary shall consist of his immediate staff, the
undernourished; Budget Control Staff, Research Staff, a Regional
(d) That the place is so unsanitary as to make it unfit Coordination Staff for Luzon, and a Regional Coordination
for children; Staff for Visayas and Mindanao.
(e) That said agency is located in a place or community SECTION 5. Undersecretaries. — The Secretary shall
where children should not be, or is physically dangerous be assisted by five (5) Undersecretaries, who shall all be
to children or would unduly expose children to crime, appointed by the President upon the recommendation of
vice, immorality, corruption or severe cruelty; or the Secretary. They shall exercise supervision over the
offices, services, operating units and individuals under
(f) That said agency has by any act or omission shown their authority and responsibility.
its incompetence or unworthiness to continue acting as a
child welfare agency. During the period of suspension, SECTION 6. Assistant Secretaries. — There shall be
the agency concerned shall not accept or admit any five (5) Assistant Secretaries, each of whom shall assist the
additional children. In any case, the Department shall Secretary and the Undersecretaries in the formulation,
make such order as to the custody of the children under determination and implementation of laws, policies,
the care of such agency as the circumstances may plans, programs and projects on budget and
warrant. The suspension may last for as long as the management and shall oversee the day-to-day
agency has not complied with any order of the administration of the constituent units of the
Department to remove or remedy the conditions which Department.
have given rise to the suspension. The aggrieved agency
may appeal the suspension or revocation in a proper CHAPTER 3 Department Services
court action. In such a case, the court shall within fifteen
(15) days from the filing of the Department's answer, SECTION 7. Management Services Office. — The
conduct a hearing and decide the case, either by lifting Management Services Office shall consist of the following
the suspension, or continuing it for such period of time as bureaus:
it may order, or by revoking the license of the agency (1) The Systems and Procedures Bureau which shall
where the Department has proven the revocation to be review and design the management reporting systems,
justified. review and evaluate the applicability and economics of
SECTION 26. Foster Homes. — No foster home, day computerization, purchasing/inventory systems,
care center and other substitute parental arrangement formulate measures on internal controls to ensure
shall operate unless it is first registered with and licensed accuracy, integrity and reliability of records systems, and
by the Department. develop a system of controls for capital operational and
cash budgeting;
(2) The Organization and Productivity Improvement
TITLE XVII Budget and Management Bureau which shall develop performance standards as
bases for agency budgeting and performance evaluation,
CHAPTER 1 General Provisions conduct studies on work simplification and methods
improvement, review the equipment procurement
SECTION 1. Declaration of Policy. — The national programs of agencies, and prepare operations manuals
budget shall be formulated and implemented as an and conduct continuing studies on organizational
instrument of national development, reflective of national changes of government agencies;
objectives and plans; supportive of and consistent with
the socio-economic development plans and oriented (3) The Compensation and Position Classification
towards the achievement of explicit objectives and Bureau which shall classify positions and determine
expected results, to ensure that the utilization of funds appropriate salaries for specific position classes and
and operations of government entities are conducted review the compensation benefits programs of agencies
effectively; formulated within the context of a and shall design job evaluation programs.
regionalized governmental structure and within the SECTION 8. The Legislative, Administrative and
totality of revenues and other receipts, expenditures and Procurement Services Office. — The Legislative,
borrowings of all levels of government and of Administrative, Procurement and Services Office shall
government-owned or controlled corporations; and consist of:
prepared within the context of the national long-term (1) The Legislative Services which shall provide legal
plans and budget programs of the Government. advice and service to the Department Officers and
SECTION 2. Mandate. — The Department shall be employees, review legislative proposals and provide
responsible for the formulation and implementation of clarificatory opinions on budget laws.
the National Budget with the goal of attaining our (2) The Administrative Services which shall provide the
national socio-economic plans and objectives. services relative to personnel, records management,
The Department shall be responsible for the efficient allocation of property and supplies, and shall perform
and sound utilization of government funds and revenues security and custodial functions.
to effectively achieve our country's development (3) The Procurement Services which shall implement
objectives. an integrated programs for the procurement of supplies
SECTION 3. Powers and Functions. — The and materials for the Department.
Department of Budget and Management shall assist the SECTION 9. The Financial and Computer Services. —
President in the preparation of a national resources and The Financial and Computer Services shall consist of:
expenditures budget, preparation, execution and control
of the National Budget, preparation and maintenance of (1) The Financial Services which shall provide services
accounting systems essential to the budgetary process, relative to cash management, budgetary and financial
achievement of more economy and efficiency in the matters.
management of government operations, administration (2) The Data Processing Service which shall provide
of compensation and position classification systems, computer services, prepare and generate management
assessment of organizational effectiveness and review reports, maintain and operate computer-based
and evaluation of legislative proposals having budgetary information monitoring systems.
or organizational implications.


CHAPTER 4 Bureaus TITLE XVIII Science and Technology

SECTION 10. The Budget Operations Office. — The
Budget Operations Office shall review and analyze the
work and financial flows, the budgetary proposals of CHAPTER 1 General Provisions
national and local government agencies and SECTION 1. Declaration of Policy. — The State shall:
corporations, check each agency's compliance with the
(1) Support and encourage local scientific and
budgetary policies and project priorities, determine the
technological efforts that address national and local
budgetary implications of foreign-assisted projects from
problems and positively contribute to national
the time of project design to the negotiation for financial
development;
assistance, prepare recommendations for fund releases,
formulate and implement fiscal policies and plans for (2) Promote the development of local capability in
budget preparation and control, and conduct studies on science and technology to achieve technological
economic trends and factors affecting government self-reliance in selected areas that are vital to national
revenues, expenditures and borrowings. It shall consist of development;
the following Bureaus: (3) Support and encourage public and private sector
(1) National Government Budget Bureaus A and B partnership aimed at accelerating self-reliance in the
which shall evaluate and review the budgetary proposals, selected areas; and
work and financial flows of the national government and (4) Encourage and support private sector initiatives in
ensure its compliance with budgetary policies and science and technology and provide the necessary
project priorities of the bureaus assigned to each group. incentives and assistance to enable the private sector to
(2) Local Government Budget Bureau which shall take increasing responsibility and a greater role in the
recommend and effect the release of National Assistance country's research and development efforts.
for Local Government (NALGU) funds and those for SECTION 2. Mandate. — The Department shall provide
autonomous regions based on approved work and central direction, leadership and coordination of scientific
financial plans as limited by the Secretary. and technological efforts and ensure that the results
(3) Government Corporation Budget Bureau which therefrom are geared and utilized in areas of maximum
shall evaluate and analyze the budgetary proposals, plans economic and social benefits for the people.
and financial flows of government corporations and The Department shall formulate and implement
agencies and ensure its compliance with budgetary policies, plans, programs and projects for the
policies and project priorities; development of science and technology and for the
(4) Budget Planning Bureau which shall assist the promotion of scientific and technological activities for
Secretary in the preparation and management of fiscal both the public and private sectors and ensure that the
policies and plans for budget coordination, conduct results of scientific and technological activities are
studies on economic trends and factors affecting properly applied and utilized to accelerate economic and
government revenues, expenditures and borrowings, and social development.
shall collaborate with the Office of the President, The Department shall continually review the state and
Department of Finance, Central Bank, National Economic needs of science and technology in the context of the
and Development Authority, and other agencies in the country's developmental goals.
formulation of financial plans.
(5) Foreign-Assisted Projects Bureau which shall review its mandate, the Department shall:
and evaluate foreign-assisted projects to determine the
annual funding requirements of certain projects (1) Formulate and adopt a comprehensive National
identified by implementing agencies and supported by Science and Technology Plan including specific goals,
foreign funding; assist the Secretary in determining the policies, plans, programs and projects based on the
budgetary implications of foreign-assisted projects from recommendation of the Inter-Council Review Board and,
the time of project design to negotiations for financial upon approval by the President, monitor and coordinate
assistance; ensure the concurrence of the Secretary of its funding and implementation by all government
Budget on all loan agreements; evaluate the agencies and instrumentalities;
work-financial plan of projects chargeable against the (2) Promote, assist and where appropriate, undertake
Foreign Assistance Projects (FAPS) support fund; and scientific and technological research and development in
recommend and effect the releases from such fund those areas which are determined to be vital to the
based on the approved work financial plans as may be country's development and offer optimum returns for the
directed by the Secretary. resources employed;
SECTION 11. National Accounting and Finance Office. (3) Promote the development of indigenous
— The National Accounting and Finance Office shall take technology and adaptation and innovation of suitable
charge of the maintenance of the data bank of financial imported technology, and in this regard, undertake
information and shall provide the necessary data required technology development up to the commercial state,
by the President, fiscal agencies and international preferably in joint venture with the private sector or with
financial institutions, analyze and evaluate the accounts public agencies;
and overall financial performance of the government, and
supervise the management of the accounts of (4) Undertake design and engineering work to
government agencies and instrumentalities. It shall complement its research and development functions;
consist of the following Bureaus: (5) Promote, assist and where appropriate undertake
(1) National Government Account and Finance Bureau; the transfer of the results of scientific and technological
research and development, to their end-users;
(2) Local Government Accounting and Finance Bureau;
and (6) Promote, assist and where appropriate undertake
technological services needed by agriculture, industry,
(3) Government Corporate Accounting and Finance transport, and the general public;
Bureau.
(7) Develop and maintain an information system and
SECTION 12. Regional Offices. — The Regional Offices databank on science and technology for use by both the
shall implement the policies, programs, standards and public and private sectors;
guidelines on budget administration and management
in the regions. (8) Develop and implement, together with other
entities concerned, programs for strengthening scientific



and technological capabilities in the relevant disciplines (3) Philippine Council for Agriculture, Forestry and
through manpower training, and through infrastructure Natural Resources Research and Development, for
and institution building and rationalization, in both the agriculture and forestry resources;
public and private sectors; (4) Philippine Council for Aquatic and Marine Research
(9) Promote public consciousness of science and and Development, for aquatic and marine resources; and
technology; (5) Philippine Council for Advanced Science and
(10) Undertake policy research, technology assessment Technology Research and Development, for advanced
studies, feasibility studies and technical studies; and science and technology.
(11) Perform such other functions as may be provided Each of the councils shall be responsible, in its
by law. respective sector, for the formulation of strategies,
SECTION 4. Structural Organization. — The policies, plans, programs and projects for science and
Department shall consist of the Office of the Secretary, technology development; for programming and
Undersecretaries and Assistant Secretaries, the Services, allocation of government and external funds for research
Inter-Council Review Board, Sectoral Planning, Councils, and development; for monitoring of research and
Institutes and Regional Offices. The Secretary shall have development projects; and for the generation of external
supervision and control of the Department except the funds.
Inter-Council Review Board and the Sectoral Planning Each council shall have a secretariat which shall be
Councils over which he shall only exercise administrative headed by an Executive Director who shall be appointed
supervision. by the President upon the recommendation of the
Secretary.
CHAPTER 2 Department Proper SECTION 11. Philippine Council for Industry and
Energy Research and Development. — The Philippine
SECTION 5. Office of the Secretary. — The Office of Council for Industry and Energy Research and
the Secretary shall consist of the Secretary and his Development shall be under the administrative
immediate staff. supervision of the Department, and shall consist of the
SECTION 6. Undersecretaries. — The Secretary shall Secretary as Chairman and eight (8) members, as follows:
be assisted by three (3) Undersecretaries, one for research Secretary of Trade and Industry, Secretary of
and development, one for regional operations and one for Transportation and Communications, Secretary of Public
scientific and technical services. The Undersecretaries Works and Highways or their designated
shall have supervision over the Institutes under their Undersecretaries, and Executive Director of the Council
respective functional areas of responsibility. Secretariat, and four (4) representatives of the private
sector in the field of industry and energy, who are chief
SECTION 7. Assistant Secretaries. — The Secretary
executive officers of their respective companies in the
shall also be assisted by three (3) Assistant Secretaries.
field of industry or energy or are acknowledged leaders in
their professions to be appointed by the President, in
CHAPTER 3 Services their personal capacity, upon recommendation of the
Secretary, each of whom shall be for a term of two (2)
SECTION 8. Services. — The Services of the years; Provided, however, That the tenure of the members
Department shall consist of the following: first appointed by the President shall be as follows: two (2)
(1) Planning and Evaluation Service, which shall be for one (1) year and two (2) for two (2) years, as fixed in
responsible for providing the Department with efficient their respective appointments. The members shall serve
and effective services relating to planning, programs and and continue to hold office until their respective
project monitoring and development; successors shall have been duly appointed and qualified.
(2) Financial and Management Service, which shall be Appointment to any vacancy in the Council shall be by
responsible for providing the Department with efficient the President and shall only be for the unexpired portion
and effective staff advice and assistance on budgetary, of the term of the predecessor.
financial, and management improvement matters; SECTION 12. Philippine Council for Agriculture and
(3) Administrative and Legal Service, which shall be Forestry Research and Development. — The Philippine
responsible for providing the Department with efficient Council for Agriculture and Forestry Research and
and effective services relating to personnel, information, Development shall be under the administrative
records, supplies, equipment collection, disbursement, supervision of the Department, and shall consist of the
security and custodial work, and all legal matters. Secretary as Chairman and eight (8) members, as follows:
Secretary of Agriculture and Food, Secretary of Natural
Resources or their designated Undersecretaries,
CHAPTER 4 Board, Councils and Institutes Chancellor of the University of the Philippines at Los
Baños, Administrator of the National Food Authority and
SECTION 9. Inter-Council Review Board. — There shall
Executive Director of the Council Secretariat and three (3)
be an Inter-Council Review Board, composed of the
representatives of the private sector in the fields of
Secretaries or their designated Undersecretaries who are
agriculture or forestry, who are chief executive officers of
members of the sectoral planning councils under
their respective companies in the field of agriculture or
Sections 10, 11, 12, 13, 14, and 15, and shall be chaired by the
forestry or are acknowledged leaders in their professions
Secretary of Science and Technology.
to be appointed by the President, in their personal
The main function of the Board shall be to review the capacity, upon recommendation of the Secretary, each of
plans of the sectoral planning councils and the National whom shall be for a term of two (2) years;Provided,
Science and Technology Plan and, in connection however, That the tenure of the members first appointed
therewith, shall be assisted by the Planning and by the President shall be as follows: one (1) for one (1) year
Evaluation Service. and two (2) for two (2) years, as fixed in their respective
SECTION 10. Sectoral Planning Councils. — There appointments. The members shall serve and continue to
shall be five (5) sectoral planning councils as follows: hold office until their successors shall have been duly
appointed and qualified. Appointment to any vacancy in
(1) Philippine Council for Industry and Energy Research the Council shall be by the President and shall only be for
and Development, for industry and energy and mineral the unexpired portion of the term of the predecessor.
resources;
SECTION 13. Philippine Council for Health Research
(2) Philippine Council for Health Research and and Development. — The Philippine Council for Health
Development for health; Research and Development shall be under the
Administrative supervision of the Department, and shall



consist of the Secretary as Chairman and eight (8) and shall be assisted by one or more Deputy Directors as
members, as follows: Secretary of Health or his may be necessary.
designated Undersecretary, Chancellor of the University SECTION 17. Industrial Technology Development
of the Philippines of Manila, Executive Director of the Institute. — The Industrial Technology Development
National Nutrition Council, Executive Director of the Institute shall have the following functions:
Council Secretariat and four (4) representatives of the
private sector in the field of health, who are chief (1) Undertake applied research and development to
executive officers of their respective companies in the develop technologies and technological innovations in
field of health or are acknowledged leaders in their the field of industrial manufacturing, mineral processing
professions to be appointed by the President, in their and energy;
personal capacity, upon recommendation of the (2) Undertake the transfer of research results directly
Secretary, each of whom shall be for a term of two (2) to end-users or preferably via linkage units of their
years; Provided, however, that the tenure of the members government agencies;
first appointed by the President shall be as follows: two (2)
for one (1) year and two (2) for two (2) years, as fixed in (3) Undertake technical services, such as but not
their respective appointments. The members shall serve limited to, standards, analytical and calibration services
and continue to hold office until their successors shall mandated by law or as needed by industry; and
have been duly appointed and qualified. Appointment to (4) Conduct training and provide technical advisory
any vacancy in the Council shall be by the President and and consultancy services to industry clientele and
shall only be for the unexpired portion of the term of the end-users.
predecessor.
SECTION 18. Philippine Nuclear Research Institute. —
SECTION 14. Philippine Council for Aquatic and The Philippine Nuclear Research Institute shall have the
Marine Research and Development. — The Philippine following functions:
Council for Aquatic and Marine Research and
Development shall be under the administrative (1) Conduct research and development on the
supervision of the Department, and shall consist of the application of radiation and nuclear materials, processes
Secretary as Chairman, and eight (8) members as follows: and techniques in agriculture, food, health, nutrition and
Secretary of Agriculture and Food, Secretary of Natural medicine and in industrial or commercial enterprises;
Resources or their designated Undersecretaries, (2) Undertake the transfer of research results to
Executive Director of the Council Secretariat, two (2) end-users, including technical extension and training
representatives from the academic/research institution services;
and three (3) representatives from the private sector who (3) Operate and maintain nuclear research reactors
are chief executive officers of their respective companies and other radiation facilities; and
in the field of aquaculture or marine research or
development or are acknowledged leaders of their (4) License and regulate activities relative to
professions to be appointed by the President, in their production, transfer, and utilization of nuclear and
personal capacity, upon recommendation of the radioactive substances.
Secretary, each of whom shall be for a term of two (2) SECTION 19. Food Nutrition Research Institute. — The
years; Provided, however, that the terms of the members Food Nutrition Research Institute shall have the following
first appointed by the President shall be as follows: two (2) functions:
for one (1) year and the other three (3) for two (2) years, as
fixed in their respective appointments. The members (1) Undertake research that defines the citizenry's
shall serve and continue to hold office until their nutritional status, with reference particularly to the
successors shall have been duly appointed and qualified. malnutrition problem, its causes and effects, and identify
Appointment to any vacancy in the Council shall be by alternative solutions to them;
the President and shall only be for the unexpired portion (2) Develop and recommend policy options, strategies,
of the term of the predecessor. programs and projects, which address the malnutrition
SECTION 15. Philippine Council for Advanced Science problem for implementation by the appropriate agencies;
and Technology Research and Development. — The and
Philippine Council for Advanced Science and Technology (3) Disseminate research findings and
Research and Development shall be under the recommendations to the relevant end-users.
Administrative supervision of the Department and shall
consist of the Secretary as Chairman and eight (8) SECTION 20. Forest Products Research and
members, as follows: Secretary of Education, Culture and Development Institute. — The Forest Products Research
Sports or his designated Undersecretary, President of the and Development Institute shall have the following
University of the Philippines System, two (2) functions:
representatives from the government sector, and four (4) (1) Conduct applied research and development in
representatives from the private sector in the field of secondary and tertiary processing for the forest-based
advanced science research, all of whom shall be industry to generate information and technology which
appointed by the President, in their personal capacity, can improve the utility value of wood and other forest
upon recommendation of the Secretary, each of whom products;
shall serve for a term of two (2) years. (2) Undertake the transfer of completed researches
SECTION 16. Institutes. — The Institutes of the directly to the end-users or via linkage units of other
Department are the following, which shall be line in government agencies;
character: Industrial Technology Development Institute; (3) Undertake technical services and provide training
Philippine Nuclear Research Institute; Food and Nutrition programs.
Research Institute; Forest Products Research and
Development Institute; Philippine Textile Research SECTION 21. Philippine Textile Research Institute. —
Institute; Advanced Science and Technology Institute; The Philippine Textile Research Institute shall have the
Science Education Institute; Science and Technology following functions:
Information Institute; and Technology Application (1) Conduct applied research and development for the
Promotion Institute; Philippine Atmospheric, Geophysical textile industry sector;
and Astronomical Services Administration, and Philippine
Institute of Volcanology and Seismology. Each Institute (2) Undertake the transfer of completed researches to
shall be headed by a Director, who shall be appointed by end-users or via linkage units of other government
the President upon the recommendation of the Secretary agencies; and


(3) Undertake technical services and provide training (5) Maintain effective linkages with scientific
programs. organizations here and abroad, and promote exchange of
SECTION 22. Advanced Science and Technology scientific information and cooperation among personnel
Institute. — The Advanced Science and Technology engaged in atmospheric, geophysical and astronomical
Institute shall have the following functions: studies.
(1) Undertake long-term researches to strengthen and SECTION 27. Philippine Institute of Volcanology and
modernize science and technology infrastructure; Seismology. — The Philippine Institute of Volcanology
and Seismology shall have the following functions:
(2) Conduct research and development work in the
advanced fields of studies including biotechnology and (1) Predict the occurrence of volcanic eruptions and
microelectronics; and earthquakes and their geotectonic phenomena;
(3) Complement the overall endeavor in the scientific (2) Determine how eruptions and earthquakes shall
field with intensive activities in the computer and occur and the likely areas to be affected;
information technologies. (3) Exploit the positive aspects of volcanoes and
SECTION 23. Science Education Institute. — The volcanic terrain in furtherance of the socio-economic
Science Education Institute shall have the following development efforts of the government;
functions: (4) Generate sufficient data for forecasting volcanic
(1) Undertake science education and training; eruptions and earthquakes;
(2) Administer scholarships, awards and grants; (5) Formulate appropriate disaster-preparedness plans;

and
(3) Undertake science and technology manpower
development; and (6) Mitigate hazards of volcanic activities through
appropriate detection, forecast, and warning systems.
(4) Formulate plans and establish programs and
projects for the promotion and development of science
and technology education and training in coordination CHAPTER 5 Regional Offices
with the Department of Education, Culture and Sports, SECTION 28. Regional Offices. — The Department is
and other institutions of learning in the field of science authorized to establish, operate and maintain a Regional
and technology. Office, whenever appropriate, in each of the
SECTION 24. Science and Technology Information Administrative regions of the country, to be headed by a
Institute. — The Science and Technology Information Regional Director who shall report and be subject to the
Institute shall have the following functions: supervision of, the Undersecretary for Regional
Operations. A Regional Office shall have, within its
(1) Establish a science and technology databank and administrative region, the following functions:
library;
(1) Implement laws, rules, regulations, policies, plans,
(2) Disseminate science and technology information; programs and projects of the Department;
and
(2) Provide efficient and effective service to the people;
(3) Undertake training on science and technology
information. (3) Coordinate with regional offices of other
departments, offices and agencies in the administrative
SECTION 25. Technology Application and Promotion region;
Institute. — The Technology Application and Promotion
Institute (TAPI) whose primary responsibility is to serve as (4) Coordinate with local government units; and
the implementing arm of the Department in promoting (5) Perform such other functions as may be provided
the commercialization of technologies and in marketing by law.
the services of the other operating units in the
Department shall have the following functions: SECTION 29. Department Offices in Other Countries.
— The Department may also have such offices and
(1) Undertake contract research, particularly at the representatives in other countries in places where its
pilot plant and semi-commercial stage; presence is considered necessary, subject to the approval
(2) Provide technical consultancy including of the President for each of them.
engineering design services, patenting and licensing
services; and CHAPTER 6 Attached Agencies
(3) Provide grants and/or venture-financing for new SECTION 30. Attached Agencies. — The following
and/or emerging projects. agencies shall be attached to the Department: the
SECTION 26. Philippine Atmospheric, Geophysical Philippine National Science Society, the National
and Astronomical Services Administration. — The Academy of Science and Technology, the Philippine
Philippine Atmospheric, Geophysical and Astronomical Science High School, and the Metals Industry Research
Services Administration shall have the following and Development Center.
functions: SECTION 31. The Philippine National Science Society.
(1) Maintain a nationwide network pertaining to — The Philippine National Science Society shall be a
observation and forecasting of weather and other corporate body composed of prominent scientists and
climatological conditions affecting national safety, welfare technical men and shall have the following functions:
and economy; (1) To stimulate research in the mathematical, physical,
(2) Undertake activities relative to observation, biological and other basic sciences and in the application
collection, assessment and processing of atmospheric of these sciences to engineering, agricultural, medicine,
and allied data for the benefit of agriculture, commerce and other useful arts, with the object of increasing
and industry; knowledge and of contributing in other ways to the
(3) Engage in studies of geophysical and astronomical public welfare;
phenomena essential to the safety and welfare of the (2) To give encouragement to individual initiative in
people; research as fundamentally important to the
(4) Undertake researches on the structure, advancement of science; and
development and motion of typhoons and formulate (3) To gather and collate scientific and technical
measures for their moderation; and information at home and abroad, in cooperation with


governmental and other agencies and to render such Philippines, the Director of the Philippine Science High
information available to duly accredited persons. School, all ex officio members, a representative from the
SECTION 32. Powers of the Philippine National American-Philippine Science Foundation, Inc., to be
Science Society. — The Philippine National Science designated by the President, one representative from the
Society shall have the power to: Philippine National Science Society, one representative
from the National Academy of Science and Technology,
(1) Make its own organization, including its one member representing industry, and one member
Constitution, by-laws and rules and regulations; representing agriculture.
(2) Fill all vacancies created by death, resignation or The members of the Board representing the
otherwise; Philippine National Science Society, the National
(3) Provide for the election of members, division into Academy of Science and Technology, Industry and
classes, and for all other matters needful or usual in such Agriculture shall be appointed by the President of the
institutions; Philippines upon the recommendation of the Secretary of
Science and Technology.
(4) Receive bequests and donations and hold the
same in trust, to be applied in aid of scientific SECTION 35. The Metals Industry and Research
investigations according to the will of the donors; Development Center. — The Metals Industry and
Research Development Center shall be a non-profit
(5) Be exempt from the payment of all research and technological institution which shall provide
internal-revenue taxes, fees, assessments and other both the government and the private sector with
charges of the Government in carrying out its aims, professional management and technical expertise on
functions, and powers; such vital activities for the development of the industry as
(6) Submit an annual report to the Congress and to the training of engineers and technicians, information
President of the Philippines an accurate account of its exchange, trade accreditation service, quality control and
works and activities during the corresponding fiscal year; testing of metal products, research and business
and economic advisory services.
(7) Perform such powers as may be provided by law or The Administration of the Center and the exercise of
necessary to carry out its purposes and functions. its corporate powers are vested exclusively in the Board of
Trustees which shall be composed of the Secretary of
SECTION 33. The National Academy of Science and Science and Technology, who shall be ex officio
Technology. — The National Academy of Science and Chairman, the Secretary of Trade and Industry, who shall
Technology shall be composed of outstanding scientists be ex officio Co-Chairman, and the following members:
to serve as reservoir of competent and technological the Executive Director of the Philippine Council for
manpower for the country. The total membership of the Industry and Energy Research and Development, a
Academy shall not exceed fifty (50) at any one time; representative each from the Department of Natural
however, this number may be increased by a two-thirds Resources, the National Economic and Development
vote of all the members and approval thereof by the Authority, the Metals Industry Research and
President. Development Center and three representatives from the
The Academy shall have its own metals, engineering and allied industries sub-sector to be
Secretariat/Administrative staff and shall have the appointed by the Secretary of Science and Technology.
following functions and powers: The Center shall have the powers and functions
(1) Provide its members the following benefits and assigned to it by law.
privileges:
(a) free publications of scientific and technological
works; BOOK V
(b) travel support for attendance and participation in
international conference; and
TITLE I Constitutional Commissions
(c) such other incentives, financial or otherwise
designed to promote a scientific and technological effort
and achievement. SUBTITLE A Civil Service Commission
(2) Recommend annually for Presidential awards not
more than ten (10) scientists for distinguished individual
2017 Omnibus Rules on Appointments and Other Human
or collaborative achievement in science or technology
who shall be accorded by the President the rank and title Resource Actions
of "National Scientists." Said "National Scientists" shall
each be given gratuity in such amount to be fixed by the 2017 Rules on Administrative Cases in the Civil Service
Academy and entitled to other privileges as enjoyed by
the National Artists.
(3) Engage in other projects and programs designed to
recognize outstanding achievements in science to CHAPTER 1 General Provisions
promote scientific productivity. SECTION 1. Declaration of Policy. — The State shall
SECTION 34. The Philippine Science High School. — insure and promote the Constitutional mandate that
The Philippine Science High School shall offer on a free appointments in the Civil Service shall be made only
scholarship basis a secondary course with special according to merit and fitness; that the Civil Service
emphasis on subjects pertaining to the sciences with the Commission, as the central personnel agency of the
end view of preparing its students for a science career. Government shall establish a career service, adopt
The exercise of its corporate powers is vested exclusively measures to promote morale, efficiency, integrity,
in the Board of Trustees and in the Director of the High responsiveness, and courtesy in the civil service,
School insofar as authorized by said Board. The Board of strengthen the merit and rewards system, integrate all
Trustees shall be composed of the Secretary of Science human resources development programs for all levels
and Technology, who shall be ex officio Chairman of the and ranks, and institutionalize a management climate
Board, the Secretary of Education, who shall be ex officio conducive to public accountability; that public office is a
Vice-Chairman, and the following members: the public trust and public officers and employees must at all
President of the University of the Philippines, the times be accountable to the people; and that personnel
Chairman of the UNESCO National Commission of the functions shall be decentralized, delegating the
corresponding authority to the departments, offices and



agencies where such functions can be effectively SECTION 7. Career Service. — The Career Service shall
performed. be characterized by (1) entrance based on merit and
SECTION 2. Duties and Responsibilities of Public fitness to be determined as far as practicable by
Officers and Employees. — Public Officers and competitive examination, or based on highly technical
employees shall have the duties, responsibilities, and qualifications; (2) opportunity for advancement to higher
accountability provided in Chapter 9, Book I of this Code. career positions; and (3) security of tenure.
SECTION 3. Terms and Conditions of Employment. — The Career Service shall include:
The terms and conditions of employment of all (1) Open Career positions for appointment to which
government employees, including those in prior qualification in an appropriate examination is
government-owned or controlled corporations with required;
original charters, shall be fixed by law. The terms and (2) Closed Career positions which are scientific, or
conditions of employment which are not fixed by law highly technical in nature; these include the faculty and
may be the subject of negotiation between duly academic staff of state colleges and universities, and
recognized employees' organizations and appropriate scientific and technical positions in scientific or research
government authorities. institutions which shall establish and maintain their own
SECTION 4. Compensation. — The Congress shall merit systems;
provide for the standardization of compensation of (3) Positions in the Career Executive Service; namely,
government officials and employees including those in Undersecretary, Assistant Secretary, Bureau Director,
government-owned or controlled corporations with Assistant Bureau Director, Regional Director, Assistant
original charters, taking into account the nature of the Regional Director, Chief of Department Service and other
responsibilities pertaining to, and the qualifications officers of equivalent rank as may be identified by the
required for the position concerned. Career Executive Service Board, all of whom are
SECTION 5. Definitions of Terms. — As used in this appointed by the President;
title, the following shall be construed thus: (4) Career officers, other than those in the Career
(1) Agency means any bureau, office, commission, Executive Service, who are appointed by the President,
administration, board, committee, institute, corporation such as the Foreign Service Officers in the Department of
with original charter, whether performing governmental Foreign Affairs;
or proprietary function, or any other unit of the National (5) Commissioned officers and enlisted men of the
Government, as well as provincial, city, or municipal Armed Forces which shall maintain a separate merit
government, except as hereinafter otherwise provided. system;
(2) Appointing officer is the person or body authorized (6) Personnel of government-owned or controlled
by law to make appointments in the Philippine Civil corporations, whether performing governmental or
Service. proprietary functions, who do not fall under the
(3) Class includes all positions in the government non-career service; and
service that are sufficiently similar as to duties and (7) Permanent laborers, whether skilled, semi-skilled,
responsibilities and require similar qualifications that can or unskilled.
be given the same title and salary and for all
administrative and compensation purposes, be treated SECTION 8. Classes of Positions in the Career Service.
alike. — (1) Classes of positions in the career service
appointment to which requires examinations shall be
(4) Commission refers to the Civil Service Commission. grouped into three major levels as follows:
(5) Chairman refers to the Chairman of the (a) The first level shall include clerical, trades, crafts,
Commission. and custodial service positions which involve
(6) Commissioner refers to either of the two other non-professional or subprofessional work in a
members of the Commission. non-supervisory or supervisory capacity requiring less
(7) Department includes any of the executive than four years of collegiate studies;
departments or entities having the category of a (b) The second level shall include professional,
department including the judiciary, Commission on technical, and scientific positions which involve
Elections and Commission on Audit. professional, technical, or scientific work in a
(8) Eligible refers to a person who obtains a passing non-supervisory or supervisory capacity requiring at least
grade in a civil service examination or is granted a civil four years of college work up to Division Chief level; and
service eligibility and whose name is entered in the (c) The third level shall cover positions in the Career
register of eligibles. Executive Service.
(9) Examination refers to a civil service examination (2) Except as herein otherwise provided, entrance to
conducted by the Commission and its regional offices or the first two levels shall be through competitive
by other departments or agencies with the assistance of examinations, which shall be open to those inside and
the Commission, or in coordination or jointly with it, and outside the service who meet the minimum qualification
those that it may delegate to departments and agencies requirements. Entrance to a higher level does not require
pursuant to this Title, or those that may have been previous qualification in the lower level. Entrance to the
delegated by law. third level shall be prescribed by the Career Executive
(10) Form refers to those prescribed by the Civil Service Service Board.
Commission. (3) Within the same level, no civil service examination
shall be required for promotion to a higher position in
CHAPTER 2 Coverage of the Civil Service one or more related occupational groups. A candidate for
promotion should, however, have previously passed the
SECTION 6. Scope of the Civil Service. — (1) The Civil examination for that level.
Service embraces all branches, subdivisions,
SECTION 9. Non-Career Service. — The Non-Career
instrumentalities, and agencies of the Government,
Service shall be characterized by (1) entrance on bases
other than those of the usual tests of merit and fitness
with original charters.
utilized for the career service; and (2) tenure which is
(2) Positions in the Civil Service shall be classified into limited to a period specified by law, or which is
career service and non-career service. coterminous with that of the appointing authority or
subject to his pleasure, or which is limited to the duration


of a particular project for which purpose employment preparation and conduct of said examinations including
was made. security, use of buildings and facilities as well as
The Non-Career Service shall include: personnel and transportation of examination materials
which shall be exempt from inspection regulations;
(1) Elective officials and their personal or confidential
staff; (8) Prescribe all forms for Civil Service examinations,
appointments, reports and such other forms as may be
(2) Secretaries and other officials of Cabinet rank who required by law, rules and regulations;
hold their positions at the pleasure of the President and
their personal or confidential staff(s); (9) Declare positions in the Civil Service as may
properly be primarily confidential, highly technical or
(3) Chairman and members of commissions and policy determining;
boards with fixed terms of office and their personal or
confidential staff; (10) Formulate, administer and evaluate programs
relative to the development and retention of qualified
(4) Contractual personnel or those whose employment and competent workforce in the public service;
in the government is in accordance with a special
contract to undertake a specific work or job, requiring (11) Hear and decide administrative cases instituted by
special or technical skills not available in the employing or brought before it directly or on appeal, including
agency, to be accomplished within a specific period, contested appointments, and review decisions and
which in no case shall exceed one year, and performs or actions of its offices and of the agencies attached to it.
accomplishes the specific work or job, under his own Officials and employees who fail to comply with such
responsibility with a minimum of direction and decisions, orders, or rulings shall be liable for contempt of
supervision from the hiring agency; and the Commission. Its decisions, orders, or rulings shall be
final and executory. Such decisions, orders, or rulings may
(5) Emergency and seasonal personnel. be brought to the Supreme Court on certiorari by the
aggrieved party within thirty (30) days from receipt of a
CHAPTER 3 Organization and Functions of the Civil Service copy thereof;
Commission (12) Issue subpoena and subpoena duces tecum for
SECTION 10. Composition. — The Commission shall be the production of documents and records pertinent to
composed of a Chairman and two Commissioners who investigations and inquiries conducted by it in
shall be natural born citizens of the Philippines and, at accordance with its authority conferred by the
the time of their appointment, at least thirty-five years of Constitution and pertinent laws;
age, with proven capacity for public administration, and (13) Advise the President on all matters involving
must not have been candidates for any elective position personnel management in the government service and
in the elections immediately preceding their submit to the President an annual report on the
appointment. personnel programs;
SECTION 11. Appointment of Chairman and (14) Take appropriate action on all appointments and
Commissioners. — The Chairman and the other personnel matters in the Civil Service including
Commissioners shall be appointed by the President with extension of Service beyond retirement age;
the consent of the Commission on Appointments for a (15) Inspect and audit the personnel actions and
term of seven years without reappointment. Of the first programs of the departments, agencies, bureaus, offices,
appointed, the Chairman shall hold office for seven years, local government units and other instrumentalities of the
a Commissioner for five years, and another Commissioner government including government-owned or controlled
for three years, without reappointment. Appointment to corporations; conduct periodic review of the decisions
any vacancy shall be only for the unexpired term of the and actions of offices or officials to whom authority has
predecessor. In no case shall any Member be appointed been delegated by the Commission as well as the
or designated in a temporary or acting capacity. conduct of the officials and the employees in these
SECTION 12. Powers and Functions. — The offices and apply appropriate sanctions whenever
Commission shall have the following powers and necessary;
functions: (16) Delegate authority for the performance of any
(1) Administer and enforce the constitutional and function to departments, agencies and offices where
statutory provisions on the merit system for all levels and such function may be effectively performed;
ranks in the Civil Service; (17) Administer the retirement program for
(2) Prescribe amend and enforce rules and regulations government officials and employees, and accredit
for carrying into effect the provisions of the Civil Service government services and evaluate qualifications for
Law and other pertinent laws; retirement;
(3) Promulgate policies, standards and guidelines for (18) Keep and maintain personnel records of all officials
the Civil Service and adopt plans and programs to and employees in the Civil Service; and
promote economical, efficient and effective personnel (19) Perform all functions properly belonging to a
administration in the government; central personnel agency and such other functions as
(4) Formulate policies and regulations for the may be provided by law.
administration, maintenance and implementation of SECTION 13. Duties and Responsibilities of the
position classification and compensation and set Chairman. — Subject to policies and rules adopted by the
standards for the establishment, allocation and Commission, the Chairman shall:
reallocation of pay scales, classes and positions;
(1) Direct all operations of the Commission;
(5) Render opinion and rulings on all personnel and
other Civil Service matters which shall be binding on all (2) Establish procedures for the effective operations of
heads of departments, offices and agencies and which the Commission;
may be brought to the Supreme Court on certiorari; (3) Transmit to the President rules and regulations, and
(6) Appoint and discipline its officials and employees in other guidelines adopted by the Chairman which require
accordance with law and exercise control and supervision Presidential attention including annual and other
over the activities of the Commission; periodic reports;
(7) Control, supervise and coordinate Civil Service (4) Issue appointments to, and enforce decisions on
examinations. Any entity or official in government may be administrative discipline involving officials and
called upon by the Commission to assist in the employees of the Commission;


(5) Delegate authority for the performance of any management improvement programs; and provide fiscal
function to officials and employees of the Commission; and budgetary services.
(6) Approve and submit the annual and supplemental (5) The Central Administrative Office shall provide the
budget of the Commission; and Commission with personnel, financial, logistics and other
(7) Perform such other functions as may be provided basic support services.
by law. (6) The Office of Central Personnel Records shall
SECTION 14. Membership of the Chairman in Boards. formulate and implement policies, standards, rules and
— The Chairman shall be a member of the Board of regulations pertaining to personnel records maintenance,
Directors or of other governing bodies of government security, control and disposal; provide storage and
entities whose functions affect the career development, extension services; and provide and maintain library
employment status, rights, privileges, and welfare of services.
government officials and employees, such as the (7) The Office of Position Classification and
Government Service Insurance System, Foreign Service Compensation shall formulate and implement policies,
Board, Foreign Trade Service Board, National Board for standards, rules and regulations relative to the
Teachers, and such other similar boards as may be administration of position classification and
created by law. compensation.
SECTION 15. Duties and Responsibilities of the (8) The Office of Recruitment, Examination and
Members of the Commission. — Jointly with the Placement shall provide leadership and assistance in
Chairman, the two (2) Commissioners shall be responsible developing and implementing the overall Commission
for the effective exercise of the rule-making and programs relating to recruitment, examination and
adjudicative functions of the Commission. They shall placement, and formulate policies, standards, rules and
likewise perform such functions as may be delegated by regulations for the proper implementation of the
the Commission. In case of the absence of the Chairman Commission's examination and placement programs.
owing to illness or other cause, the senior member shall (9) The Office of Career Systems and Standards shall
perform the functions of the Chairman. provide leadership and assistance in the formulation and
SECTION 16. Offices in the Commission. — The evaluation of personnel systems and standards relative to
Commission shall have the following offices: performance appraisal, merit promotion, and employee
(1) The Office of the Executive Director headed by an incentive benefits and awards.
Executive Director, with a Deputy Executive Director shall (10) The Office of Human Resource Development shall
implement policies, standards, rules and regulations provide leadership and assistance in the development
promulgated by the Commission; coordinate the and retention of qualified and efficient work force in the
programs of the offices of the Commission and render Civil Service; formulate standards for training and staff
periodic reports on their operations, and perform such development; administer service-wide scholarship
other functions as may be assigned by the Commission. programs; develop training literature and materials;
(2) The Merit System Protection Board composed of a coordinate and integrate all training activities and
Chairman and two (2) members shall have the following evaluate training programs.
functions: (11) The Office of Personnel Inspection and Audit shall
(a) Hear and decide on appeal administrative cases develop policies, standards, rules and regulations for the
involving officials and employees of the Civil Service. Its effective conduct or inspection and audit of personnel
decision shall be final except those involving dismissal or and personnel management programs and the exercise
separation from the service which may be appealed to of delegated authority; provide technical and advisory
the Commission; services to Civil Service Regional Offices and government
agencies in the implementation of their personnel
(b) Hear and decide cases brought before it on appeal programs and evaluation systems.
by officials and employees who feel aggrieved by the
determination of appointing authorities involving (12) The Office of Personnel Relations shall provide
personnel actions and violations of the merit system. The leadership and assistance in the development and
decision of the Board shall be final except those involving implementation of policies, standards, rules and
division chiefs or officials of higher ranks which may be regulations in the accreditation of employee associations
appealed to the Commission; or organizations and in the adjustment and settlement of
employee grievances and management-employee
(c) Directly take cognizance of complaints affecting disputes.
functions of the Commission, those which are unacted
upon by the agencies, and such other complaints which (13) The Office of Corporate Affairs shall formulate and
require direct action of the Board in the interest of justice; implement policies, standards, rules and regulations
governing corporate officials and employees in the areas
(d) Administer oaths, issue subpoena and subpoena of recruitment, examination, placement, career
duces tecum, take testimony in any investigation or development, merit and awards systems, position
inquiry, punish for contempt in accordance with the classification and compensation, performing appraisal,
same procedures and penalties prescribed in the Rules of employee welfare and benefits, discipline and other
Court; and aspects of personnel management on the basis of
(e) Promulgate rules and regulations to carry out the comparable industry practices.
functions of the Board subject to the approval of the (14) The Office of Retirement Administration shall be
Commission. responsible for the enforcement of the constitutional and
(3) The Office of Legal Affairs shall provide the statutory provisions, relative to retirement and the
Chairman with legal advice and assistance; render regulation for the effective implementation of the
counselling services; undertake legal studies and retirement of government officials and employees.
researches; prepare opinions and rulings in the (15) The Regional and Field Offices. — The Commission
interpretation and application of the Civil Service law, shall have not less than thirteen (13) Regional offices each
rules and regulations; prosecute violations of such laws, to be headed by a Director, and such field offices as may
rules and regulations; and represent the Commission be needed, each to be headed by an official with at least
before any Court or tribunal. the rank of an Assistant Director. Each Regional Office
(4) The Office of Planning and Management shall shall have the following functions:
formulate development plans, programs and projects;
undertake research and studies on the different aspects
of public personnel management; administer



(a) Enforce Civil Service law and rules, policies, constructive policies, standards, procedures, and
standards on personnel management within their programs as well as on matters relating to the
respective jurisdiction; improvement of personnel methods and to the solution
(b) Provide technical advice and assistance to of personnel problems confronting the various
government offices and agencies regarding personnel departments and agencies of the government;
administration; and (2) Promote among the departments and agencies,
(c) Perform such other functions as may be delegated through study and discussion, uniform and consistent
by the Commission. interpretation and application of personnel policies; and
SECTION 17. Organizational Structure. — Each office (3) Serve as a clearing house of information and
of the Commission shall be headed by a Director with at stimulate the use of methods of personnel management
least one (1) Assistant Director, and may have such that will contribute most to good government.
divisions as are necessary to carry out their respective SECTION 20. Inspection and Audit. — The
functions. As an independent constitutional body, the Commission, through its designated representatives, shall
Commission may effect changes in the organization as conduct a periodic inspection and audit of the personnel
the need arises. management program of each department, agency,
province or city, in order to: (a) determine compliance
CHAPTER 4 Interdepartment Relations with the Civil Service law, rules and standards; (b) review
discharge of delegated authority; (c) make an adequate
SECTION 18. Civil Service Assistance to Departments evaluation of the progress made and problems
and Agencies. — Each Secretary or head of office, encountered in the conduct of the merit system in the
agency, government-owned or controlled corporation national and local governments; (d) give advice and
with original charter and local government shall be provide assistance in developing constructive policies,
responsible for personnel administration in his office standards and procedures, and (e) stimulate
which shall be in accordance with the provision relating improvement in all areas of personnel management.
to civil service embodied in the Constitution, this Title and
Periodic inspection and audit will include an appraisal
the rules, principles, standards, guidelines and
of personnel management operations and activities
regulations established by the Commission. The Civil
relative to: (a) formulation and issuance of personnel
Service Commission shall, whenever it deems it in the
policy; (b) recruitment and selection of employees; (c)
interest of the public service, organize in each
personnel action and employment status; (d) career and
department, office, agency, government-owned or
employee development; (e) performance evaluation
controlled corporation, and provincial and city
system; (f) employee suggestions and incentive award; (g)
government a Civil Service Staff which shall be headed by
employee relations and services; (h) discipline; (i)
an officer of the Commission. The necessary staff
personnel records and reporting; and (j) programs
personnel and office facilities and equipment shall be
evaluation.
provided by the department, government-owned or
controlled corporation or local government where the
staff is established but the Commission may augment CHAPTER 5 Personnel Policies and Standards
these with its own. The staff shall serve as the principal SECTION 21. Recruitment and Selection of
liaison between the Civil Service and the Department Employees. — (1) Opportunity for government
concerned and shall perform the following specific employment shall be open to all qualified citizens and
functions and those functions which may hereafter be positive efforts shall be exerted to attract the best
assigned to it by the Commission: qualified to enter the service. Employees shall be selected
(1) Provide technical assistance in all aspects of on the basis of fitness to perform the duties and assume
personnel management; the responsibilities of the positions.
(2) Monitor and audit periodically the personnel (2) When a vacancy occurs in a position in the first
practices and performance of the Department or agency level of the Career Service as defined in Section 8, the
concerned as well as those of public officers and employees in the department who occupy the next lower
employees thereat; positions in the occupational group under which the
(3) Determine agency compliance with Civil Service vacant position is classified, and in other functionally
Law and rules; and related occupational groups and who are competent,
qualified and with the appropriate civil service eligibility
(4) In the performance of these functions, the staff shall be considered for promotion.
shall welcome and receive from the public any
suggestions, observations and complaints pertaining to (3) When a vacancy occurs in a position in the second
the conduct of public officers and employees. level of the Career Service as defined in Section 8, the
employees in the government service who occupy the
In the performance of their functions, the units so next lower positions in the occupational group under
organized shall avail of the technical assistance and which the vacant position is classified and in other
guidelines of the Civil Service Commission. functionally related occupational groups and who are
SECTION 19. Council of Personnel Officers. — There competent, qualified and with the appropriate civil
shall be a Council of Personnel Officers to be composed service eligibility shall be considered for promotion.
of chief personnel officers of the different executive (4) For purposes of this Section, each department or
departments and of agencies with the category of agency shall evolve its own screening process, which may
department that the Chairman of the Commission shall include tests of fitness, in accordance with standards and
select for membership. Except for its Executive Officer guidelines set by the Commission. Promotion boards
who shall be designated by the Chairman from among shall be formed to formulate criteria for evaluation,
the appropriate officials in the Civil Service Commission, conduct tests or interviews, and make systematic
the Council is authorized to elect such other officers from assessment of training experience.
among its members and to fix its own rules or procedures
concerning attendance at meetings, approval of policy (5) If the vacancy is not filled by promotion as provided
declaration, and other business matters. Provisions for herein the same shall be filled by transfer of present
necessary facilities and clerical assistance for the Council employees in the government service, by reinstatement,
shall be made in the annual budget of the Commission. by re-employment of persons separated through
reduction in force, or by appointment of persons with the
The Council shall have the following functions: civil service eligibility appropriate to the positions.
(1) Offer advice, upon request of the Secretary of a (6) A qualified next-in-rank employee shall have the
Department or the Commission, in developing right to appeal initially to the Secretaries or heads of



agencies or instrumentalities including SECTION 25. Cultural Communities. — In line with the
government-owned or controlled corporations with national policy to facilitate the integration of the
original charters, then to the Merit System Protection members of cultural communities and accelerate the
Board, and finally to the Civil Service Commission an development of the areas occupied by them, the
appointment made in favor of another employee if the Commission shall give special civil service examinations
appellant is not satisfied with the written special reason to qualify them for appointment in the civil service.
or reasons given by the appointing authority for such SECTION 26. Personnel Actions. — All appointments
appointment; Provided, however, that the decision of the in the career service shall be made only according to
Civil Service Commission may be reviewed on certiorari merit and fitness, to be determined as far as practicable
only by the Supreme Court within thirty (30) days from by competitive examinations. A non-eligible shall not be
receipt of the decision of the aggrieved party. For appointed to any position in the civil service whenever
purposes of this Section, "qualified next-in-rank" refers to there is a civil service eligible actually available for and
an employee appointed on a permanent basis to a ready to accept appointment.
position previously determined to be next-in-rank and
who meets the requirements for appointment thereto as As used in this Title, any action denoting the
previously determined by the appointing authority and movement or progress of personnel in the civil service
approved by the Commission. shall be known as personnel action. Such action shall
include appointment through certification, promotion,
(7) Qualification in an appropriate examination shall be transfer, reinstatement, re-employment, detail,
required for appointment to positions in the first and reassignment, demotion, and separation. All personnel
second levels in the career service in accordance with the actions shall be in accordance with such rules, standards,
Civil Service rules, except as otherwise provided in this and regulations as may be promulgated by the
Title: Provided, That whenever there is a civil service Commission.
eligible actually available for appointment, no person who
is not such an eligible shall be appointed even in a (1) Appointment through certification. — An
temporary capacity to any vacant position in the career appointment through certification to a position in the
service in the government or in any government-owned civil service, except as herein otherwise provided, shall be
or controlled corporation with original charter, except issued to a person who has been selected from a list of
when the immediate filling of the vacancy is urgently qualified persons certified by the Commission from an
required in the public interest, or when the vacancy is not appropriate register of eligibles, and who meets all the
permanent, in which cases temporary appointments of other requirements of the position.
non-eligibles may be made in the absence of eligibles All such persons must serve a probationary period of
actually and immediately available. six months following their original appointment and shall
(8) The appropriate examinations herein referred to undergo a thorough character investigation in order to
shall be those given by the Commission and the different acquire permanent civil service status. A probationer may
agencies: Provided, however, That nothing herein shall be dropped from the service for unsatisfactory conduct or
affect those eligibilities acquired prior to the effectivity of want of capacity any time before the expiration of the
the Civil Service Law: Provided, further, That a person with probationary period: Provided, That such action is
a civil service eligibility acquired by successfully passing appealable to the Commission.
an examination shall be qualified for a position requiring (2) Promotion. — A promotion is a movement from
a lower eligibility if he possesses the other requirements one position to another with an increase in duties and
for appointment to such position. responsibilities as authorized by law and usually
SECTION 22. Qualification Standards. — (1) A accompanied by an increase in pay. The movement may
qualification standard expresses the minimum be from one department or agency to another or from
requirements for a class of positions in terms of one organizational unit to another in the same
education, training and experience, civil service eligibility, department or agency.
physical fitness, and other qualities required for (3) Transfer. — A transfer is a movement from one
successful performance. The degree of qualifications of position to another which is of equivalent rank, level, or
an officer or employee shall be determined by the salary without break in service involving the issuance of
appointing authority on the basis of the qualification an appointment.
standard for the particular position.
It shall not be considered disciplinary when made in
Qualification standards shall be used as basis for civil the interest of public service, in which case, the employee
service examinations for positions in the career service, as concerned shall be informed of the reasons therefor. If
guides in appointment and other personnel actions, in the employee believes that there is no justification for the
the adjudication of protested appointments, in transfer, he may appeal his case to the Commission.
determining training needs, and as aid in the inspection
and audit of the agencies' personnel work programs. The transfer may be from one department or agency
to another or from one organizational unit to another in
It shall be administered in such manner as to the same department or agency:Provided, however, That
continually provide incentives to officers and employees any movement from the non-career service to the career
towards professional growth and foster the career system service shall not be considered a transfer.
in the government service.
(4) Reinstatement. — Any person who has been
(2) The establishment, administration and permanently appointed to a position in the career service
maintenance of qualification standards shall be the and who has, through no delinquency or misconduct,
responsibility of the department or agency, with the been separated therefrom, may be reinstated to a
assistance and approval of the Civil Service Commission position in the same level for which he is qualified.
and in consultation with the Wage and Position
Classification Office. (5) Reemployment. — Names of persons who have
been appointed permanently to positions in the career
SECTION 23. Release of Examination Results. — The service and who have been separated as a result of
results of any particular civil service examination held in a reduction in force or reorganization, shall be entered in a
number of places on the same date shall be released list from which selection for reemployment shall be
simultaneously. made.
SECTION 24. Register of Eligibles. — The names of the (6) Detail. — A detail is the movement of an employee
competitors who pass an examination shall be entered in from one agency to another without the issuance of an
a register of eligibles arranged in the order of their appointment and shall be allowed, only for a limited
general ratings and containing such information as the period in the case of employees occupying professional,
Commission may deem necessary. technical and scientific positions. If the employee believes



that there is no justification for the detail, he may appeal by the Commission. Promotion Boards may be organized
his case to the Commission. Pending appeal, the decision subject to criteria drawn by the Commission.
to detail the employee shall be executory unless SECTION 33. Performance Evaluation System. —
otherwise ordered by the Commission. There shall be established a performance evaluation
(7) Reassignment. — An employee may be reassigned system, which shall be administered in accordance with
from one organizational unit to another in the same rules, regulations and standards, promulgated by the
agency: Provided, That such reassignment shall not Commission for all officers and employees in the career
involve a reduction in rank, status or salary. service. Such performance evaluation system shall be
SECTION 27. Employment Status. — Appointment in administered in such manner as to continually foster the
the career service shall be permanent or temporary. improvement of individual employee efficiency and
organizational effectiveness.
(1) Permanent status. — A permanent appointment
shall be issued to a person who meets all the Each department or agency may, after consultation
requirements for the positions to which he is being with the Commission, establish and use one or more
appointed, including the appropriate eligibility performance evaluation plans appropriate to the various
prescribed, in accordance with the provisions of law, rules groups of positions in the department or agency
and standards promulgated in pursuance thereof. concerned. No performance evaluation shall be given, or
used as a basis for personnel action, except under an
(2) Temporary appointment. — In the absence of approved performance evaluation plan: Provided, That
appropriate eligibles and it becomes necessary in the each employee shall be informed periodically by his
public interest to fill a vacancy, a temporary appointment supervisor of his performance evaluation.
shall be issued to a person who meets all the
requirements for the position to which he is being SECTION 34. Responsibility for Training. — The
appointed except the appropriate civil service eligibility: Commission shall be responsible for the coordination and
Provided, That such temporary appointment shall not integration of a continuing program of personnel
exceed twelve months, but the appointee may be development for all government personnel in the first
replaced sooner if a qualified civil service eligible and second levels.
becomes available. Central staff agencies and specialized institutes shall
SECTION 28. Salary Increase or Adjustment. — conduct continuing centralized training for staff
Adjustments in salaries as a result of increase in pay levels specialists from the different agencies. However, in those
or upgrading of positions which do not involve a change cases where there is sufficient number of participants to
in qualification requirements shall not require new warrant training at department or agency or local
appointments except that copies of the salary government levels, such central staff agencies and
adjustment notices shall be submitted to the specialized institutes shall render the necessary
Commission for record purposes. assistance, and consultative services.
SECTION 29. Reduction in Force. — Whenever it To avoid duplication of effort and overlapping of
becomes necessary because of lack of work or funds or training functions, the following functional
due to a change in the scope or nature of an agency's responsibilities are assigned:
program, or as a result of reorganization, to reduce the (1) Public and private colleges and universities and
staff of any department or agency, those in the same similar institutions shall be encouraged to organize and
group or class of positions in one or more agencies within carry out continuing programs of executive development.
the particular department or agency wherein the (2) The Commission, the Commission on Audit, the
reduction is to be effected, shall be reasonably compared Department of Budget and Management, the General
in terms of relative fitness, efficiency and length of Services Administration, and other central staff agencies
service, and those found to be least qualified for the shall conduct centralized training and assist in the
remaining positions shall be laid off. training program of the Departments or agencies along
SECTION 30. Career and Personnel Development. — their respective functional areas of specialization.
The development and retention of a competent and (3) In coordination with the Commission, the
efficient work force in the public service is a primary Department of Local Government and Community
concern of government. It shall be the policy of the Development shall undertake local government training
government that a continuing program of career and programs.
personnel development be established for all
government employees at all levels. An integrated (4) In coordination with the Commission, each
national plan for career and personnel development shall department or agency, province or city shall establish,
serve as the basis for all career and personnel maintain and promote a systematic plan of action for
development activities in the government. personnel training at all levels in accordance with
standards laid down by the Commission. It shall maintain
SECTION 31. Career and Personnel Development appropriate training staffs and make full use of available
Plans. — Each department or agency shall prepare a training facilities.
career and personnel development plan which shall be
integrated into a national plan by the Commission. Such Whenever it deems it necessary, the Commission shall
career and personnel development plans which shall take the initiative in undertaking programs for personnel
include provisions on merit promotions, performance development.
evaluation, in-service training, including overseas and SECTION 35. Employee Suggestions and incentive
local scholarships and training grants, job rotation, Award System. — There shall be established a
suggestions and incentive award systems, and such other government-wide employee suggestions and incentive
provisions for employees' health, welfare, counseling, awards system which shall be administered under such
recreation and similar services. rules, regulations, and standards as may be promulgated
SECTION 32. Merit Promotion Plans. — Each by the Commission.
department or agency shall establish merit promotion In accordance with rules, regulations, and standards
plans which shall be administered in accordance with the promulgated by the Commission, the President or the
provisions of the Civil Service law and the rules, head of each department or agency is authorized to incur
regulations and standards to be promulgated by the whatever necessary expenses involved in the honorary
Commission. Such plans shall include provisions for a recognition of subordinate officers and employees of the
definite screening process, which may include tests of government who by their suggestions, inventions,
fitness, in accordance with standards and guidelines set superior accomplishment, and other personal efforts
contribute to the efficiency, economy, or other


improvement of government operations, or who perform with the provisions of the Labor Code of the Philippines.
such other extraordinary acts or services in the public Applications may also be filed with the Regional Offices
interest in connection with, or in relation to, their official of the Department of Labor and Employment which shall
employment. immediately transmit the said applications to the Bureau
SECTION 36. Personnel Relations. — (1) It shall be the of Labor Relations within three (3) days from receipt
concern of the Commission to provide leadership and thereof.
assistance in developing employee relations programs in SECTION 42. Certificate of Registration. — Upon
the department or agencies. approval of the application, a registration certificate shall
(2) Every Secretary or head of agency shall take all be issued to the organization recognizing it as a
proper steps toward the creation of an atmosphere legitimate employees' organization with the right to
conducive to good supervisor-employee relations and the represent its members and undertake activities to further
improvement of employee morale. and defend its interests. The corresponding certificates of
registration shall be jointly approved by the Chairman of
SECTION 37. Complaints and Grievances. — the Civil Service Commission and the Secretary of Labor
Employees shall have the right to present their and Employment.
complaints or grievances to management and have them
adjudicated as expeditiously as possible in the best SECTION 43. Appropriate Organizational Unit. — The
interest of the agency, the government as a whole, and appropriate organizational unit shall be the employer's
the employee concerned. Such complaint or grievances unit consisting of rank-and-file employees unless
shall be resolved at the lowest possible level in the circumstances otherwise require.
department or agency, as the case may be, and the SECTION 44. Sole and Exclusive Employees'
employee shall have the right to appeal such decision to Representatives. — (1) The duly registered employees'
higher authorities. organization having the support of the majority of the
Each department or agency shall promulgate rules employees in the appropriate organizational unit shall be
and regulations governing expeditious, fair and equitable designated as the sole and exclusive representative of the
adjustment of employees' complaints or grievances in employees.
accordance with the policies enunciated by the (2) A duly registered employees' organization shall be
Commission. accorded voluntary recognition upon a showing that no
In case any dispute remains unresolved after other employees' organization is registered or is seeking
exhausting all the available remedies under existing laws registration, based on the records of the Bureau of Labor
and procedures, the parties may jointly refer the dispute Relations, and that the said organization has the majority
to the Public Sector Labor Management Council support of the rank-and-file employees in the
constituted under section 46, for appropriate action. organizational unit.
(3) Where there are two or more duly registered
CHAPTER 6 Right to Self-Organization employees' organizations in the appropriate
organizational unit, the Bureau of Labor Relations shall,
SECTION 38. Coverage. — (1) All government upon petition, order the conduct of a certification
employees, including those in government-owned or election and shall certify the winner as the exclusive
controlled corporations with original charters, can form, representative of the rank-and-file employees in said
join or assist employees' organizations of their own organizational unit.
choosing for the furtherance and protection of their
SECTION 45. The Public Sector Labor-Management
interests. They can also form, in conjunction with
Council. — A Public Sector Labor-Management Council is
appropriate government authorities, labor-management
hereby constituted to be composed of the following: The
committees, work councils and other forms of workers'
Chairman of the Civil Service Commission, as Chairman;
participation schemes to achieve the same objectives.
the Secretary of Labor and Employment, as
(2) The provisions of this Chapter shall not apply to the Vice-Chairman; and the Secretary of Finance, the
members of the Armed Forces of the Philippines, Secretary of Justice and the Secretary of Budget and
including police officers, policemen, firemen and jail Management, as members.
guards.
The Council shall implement and administer the
SECTION 39. Ineligibility of High-Level Employees to provisions of this Chapter. For this purpose, the Council
Join Rank-and-File Employees' Organization. — shall promulgate the necessary rules and regulations to
High-level employees whose functions are normally implement this Chapter.
considered as policy-making or managerial or whose
duties are of highly confidential nature shall not be
CHAPTER 7 Discipline
eligible to join the organization of rank-and-file
government employees. SECTION 46. Discipline: General Provisions. — (a) No
SECTION 40. Protection of the Right to Organize. — officer or employee in the Civil Service shall be
(1) Government employees shall not be discriminated suspended or dismissed except for cause as provided by
against in respect of their employment by reason of their law and after due process.
membership in employees' organizations or participation (b) The following shall be grounds for disciplinary
in the normal activities of their organizations. Their action:
employment shall not be subject to the condition that (1) Dishonesty;
they shall not join or shall relinquish their membership in
the employees' organizations. (2) Oppression;
(2) Government authorities shall not interfere in the (3) Neglect of duty;
establishment, functioning or administration of (4) Misconduct;
government employees' organizations through acts
designed to place such organizations under the control of (5) Disgraceful and immoral conduct;
government authority. (6) Being notoriously undesirable;
SECTION 41. Registration of Employees' (7) Discourtesy in the course of official duties;
Organization. — Government employees' organizations
shall register with the Civil Service Commission and the (8) Inefficiency and incompetence in the performance
Department of Labor and Employment. The application of official duties;
shall be filed with the Bureau of Labor Relations of the (9) Receiving for personal use of a fee, gift or other
Department which shall process the same in accordance valuable thing in the course of official duties or in


connection therewith when such fee, gift, or other officials to conduct the investigation. The results of the
valuable thing is given by any person in the hope or investigation shall be submitted to the Commission with
expectation of receiving a favor or better treatment than recommendation as to the penalty to be imposed or
that accorded other persons, or committing acts other action to be taken.
punishable under the anti-graft laws; (2) The Secretaries and heads of agencies and
(10) Conviction of a crime involving moral turpitude; instrumentalities, provinces, cities and municipalities
(11) Improper or unauthorized solicitation of shall have jurisdiction to investigate and decide matters
contributions from subordinate employees and by involving disciplinary action against officers and
teachers or school officials from school children; employees under their jurisdiction. Their decisions shall
be final in case the penalty imposed is suspension for not
(12) Violation of existing Civil Service Law and rules or more than thirty days or fine in an amount not exceeding
reasonable office regulations; thirty days' salary. In case the decision rendered by a
(13) Falsification of official document; bureau or office head is appealable to the Commission,
the same may be initially appealed to the department
(14) Frequent unauthorized absences or tardiness in and finally to the Commission and pending appeal, the
reporting for duty, loafing or frequent unauthorized same shall be executory except when the penalty is
absences from duty during regular office hours; removal, in which case the same shall be executory only
(15) Habitual drunkenness; after confirmation by the Secretary concerned.
(16) Gambling prohibited by law; (3) An investigation may be entrusted to regional
director or similar officials who shall make the necessary
(17) Refusal to perform official duty or render overtime report and recommendation to the chief of bureau or
service; office or department within the period specified in
(18) Disgraceful, immoral or dishonest conduct prior to Paragraph (4) of the following Section.
entering the service; (4) An appeal shall not stop the decision from being
(19) Physical or mental incapacity or disability due to executory, and in case the penalty is suspension or
immoral or vicious habits; removal, the respondent shall be considered as having
(20) Borrowing money by superior officers from been under preventive suspension during the pendency
subordinates or lending by subordinates to superior of the appeal in the event he wins an appeal.
officers; SECTION 48. Procedures in Administrative Cases
(21) Lending money at usurious rates of interest; Against Non-Presidential Appointees. — (1)
Administrative proceedings may be commenced against
(22) Willful failure to pay just debts or willful failure to a subordinate officer or employee by the Secretary or
pay taxes due to the government; head of office of equivalent rank, or head of local
(23) Contracting loans of money or other property government, or chiefs of agencies, or regional directors, or
from persons with whom the office of the employee upon sworn, written complaint of any other person.
concerned has business relations; (2) In the case of a complaint filed by any other
(24) Pursuit of private business, vocation or profession persons, the complainant shall submit sworn statements
without the permission required by Civil Service rules and covering his testimony and those of his witnesses
regulations; together with his documentary evidence. If on the basis
of such papers a prima facie case is found not to exist, the
(25) Insubordination; disciplining authority shall dismiss the case. If a prima
(26) Engaging directly or indirectly in partisan political facie case exists, he shall notify the respondent in writing,
activities by one holding a non-political office; of the charges against the latter, to which shall be
attached copies of the complaint, sworn statements and
(27) Conduct prejudicial to the best interest of the other documents submitted, and the respondent shall be
service; allowed not less than seventy-two hours after receipt of
(28) Lobbying for personal interest or gain in legislative the complaint to answer the charges in writing under
halls or offices without authority; oath, together with supporting sworn statements and
(29) Promoting the sale of tickets in behalf of private documents, in which he shall indicate whether or not he
enterprises that are not intended for charitable or public elects a formal investigation if his answer is not
welfare purposes and even in the latter cases if there is no considered satisfactory. If the answer is found satisfactory,
prior authority; the disciplining authority shall dismiss the case.
(30) Nepotism as defined in Section 60 of this Title. (3) Although a respondent does not request a formal
investigation, one shall nevertheless be conducted when
(c) Except when initiated by the disciplining authority, from the allegations of the complaint and the answer of
no complaint against a civil service official or employee the respondent, including the supporting documents,
shall be given due course unless the same is in writing the merits of the case cannot be decided judiciously
and subscribed and sworn to by the complainant. without conducting such an investigation.
(d) In meting out punishment, the same penalties (4) The investigation shall be held not earlier than five
shall be imposed for similar offenses and only one penalty days nor later than ten days from the date of receipt of
shall be imposed in each case. The disciplining authority respondent's answer by the disciplining authority, and
may impose the penalty of removal from the service, shall be finished within thirty days from the filing of the
demotion in rank, suspension for not more than one year charges, unless the period is extended by the
without pay, fine in an amount not exceeding six months' Commission in meritorious cases. The decision shall be
salary, or reprimand. rendered by the disciplining authority within thirty days
SECTION 47. Disciplinary Jurisdiction. — (1) The from the termination of the investigation or submission
Commission shall decide upon appeal all administrative of the report of the investigator, which report shall be
disciplinary cases involving the imposition of a penalty of submitted within fifteen days from the conclusion of the
suspension for more than thirty days, or fine in an investigation.
amount exceeding thirty days' salary, demotion in rank or (5) The direct evidence for the complainant and the
salary or transfer, removal or dismissal from office. A respondent shall consist of the sworn statement and
complaint may be filed directly with the Commission by a documents submitted in support of the complaint or
private citizen against a government official or employee answer, as the case may be, without prejudice to the
in which case it may hear and decide the case or it may presentation of additional evidence deemed necessary
deputize any department or agency or official or group of but was unavailable at the time of the filing of the


complaint or answer, upon which the cross-examination, of delay shall not be counted in computing the period of
by respondent and the complainant, respectively, shall be suspension herein provided.
based. Following cross-examination, there may be SECTION 53. Removal of Administrative Penalties or
redirect and recross-examination. Disabilities. — In meritorious cases and upon
(6) Either party may avail himself of the services of recommendation of the Commission, the President may
counsel and may require the attendance of witnesses and commute or remove administrative penalties or
the production of documentary evidence in his favor disabilities imposed upon officers or employees in
through the compulsory process of subpoena or disciplinary cases, subject to such terms and conditions
subpoena duces tecum. as he may impose in the interest of the service.
(7) The investigation shall be conducted only for the
purpose of ascertaining the truth and without necessarily CHAPTER 8 Prohibitions
adhering to technical rules applicable in judicial
SECTION 54. Limitation on Appointment. — (1) No
proceedings. It shall be conducted by the disciplining
elective official shall be eligible for appointment or
authority concerned or his authorized representative.
designation in any capacity to any public office or
The phrase "any other party" shall be understood to be position during his tenure.
a complainant other than those referred to in subsection
(2) No candidate who has lost in any election shall,
(a) hereof.
within one year after election, be appointed to any office
SECTION 49. Appeals. — (1) Appeals, where allowable, in the Government or any government-owned or
shall be made by the party adversely affected by the controlled corporations or in any of its subsidiaries.
decision within fifteen days from receipt of the decision
(3) Unless otherwise allowed by law or by the primary
unless a petition for reconsideration is seasonably filed,
functions of his position, no appointive official shall hold
which petition shall be decided within fifteen days. Notice
any other office or employment in the Government or
of the appeal shall be filed with the disciplining office,
any subdivision, agency or instrumentality thereof,
which shall forward the records of the case, together with
the notice of appeal, to the appellate authority within
or their subsidiaries.
fifteen days from filing of the notice of appeal, with its
comment, if any. The notice of appeal shall specifically SECTION 55. Political Activity. — No officer or
state the date of the decision appealed from and the date employee in the Civil Service including members of the
of receipt thereof. It shall also specifically set forth clearly Armed Forces, shall engage directly or indirectly in any
the grounds relied upon for excepting from the decision. partisan political activity or take part in any election
except to vote nor shall he use his official authority or
(2) A petition for reconsideration shall be based only on
influence to coerce the political activity of any other
any of the following grounds: (a) new evidence has been
person or body. Nothing herein provided shall be
discovered which materially affects the decision
understood to prevent any officer or employee from
rendered; (b) the decision is not supported by the
expressing his views on current political problems or
evidence on record; or (c) errors of law or irregularities
issues, or from mentioning the names of candidates for
have been committed which are prejudicial to the
public office whom he supports: Provided, That public
interest of the respondent: Provided, That only one
officers and employees holding political offices may take
petition for reconsideration shall be entertained.
part in political and electoral activities but it shall be
SECTION 50. Summary Proceedings. — No formal unlawful for them to solicit contributions from their
investigation is necessary and the respondent may be subordinates or subject them to any of the acts involving
immediately removed or dismissed if any of the following subordinates prohibited in the Election Code.
circumstances is present:
SECTION 56. Additional or Double Compensation. —
(1) When the charge is serious and the evidence of No elective or appointive public officer or employee shall
guilt is strong; receive additional or double compensation unless
(2) When the respondent is a recidivist or has been specifically authorized by law nor accept without the
repeatedly charged and there is reasonable ground to consent of the President, any present, emolument, office,
believe that he is guilty of the present charge; and or title of any kind from any foreign state.
(3) When the respondent is notoriously undesirable. Pensions and gratuities shall not be considered as
additional, double or indirect compensation.
Resort to summary proceedings by the disciplining
authority shall be done with utmost objectivity and SECTION 57. Limitations on Employment of Laborers.
impartiality to the end that no injustice is — Laborers, whether skilled, semi-skilled or unskilled,
committed:Provided, That removal or dismissal except shall not be assigned to perform clerical duties.
those by the President, himself or upon his order, may be SECTION 58. Prohibition on Detail or Reassignment.
appealed to the Commission. — No detail or reassignment whatever shall be made
SECTION 51. Preventive Suspension. — The proper within three (3) months before any election.
disciplining authority may preventively suspend any SECTION 59. Nepotism. — (1) All appointments in the
subordinate officer or employee under his authority national, provincial, city and municipal governments or in
pending an investigation, if the charge against such any branch or instrumentality thereof, including
officer or employee involves dishonesty, oppression or government-owned or controlled corporations, made in
grave misconduct, or neglect in the performance of duty, favor of a relative of the appointing or recommending
or if there are reasons to believe that the respondent is authority, or of the chief of the bureau or office, or of the
guilty of charges which would warrant his removal from persons exercising immediate supervision over him, are
the service. hereby prohibited.
SECTION 52. Lifting of Preventive Suspension As used in this Section, the word "relative" and
Pending Administrative Investigation. — When the members of the family referred to are those related
administrative case against the officer or employee under within the third degree either of consanguinity or of
preventive suspension is not finally decided by the affinity.
disciplining authority within the period of ninety (90) days
(2) The following are exempted from the operation of
after the date of suspension of the respondent who is not
the rules on nepotism: (a) persons employed in a
a presidential appointee, the respondent shall be
confidential capacity, (b) teachers, (c) physicians, and (d)
automatically reinstated in the service: Provided, That
members of the Armed Forces of the Philippines:
when the delay in the disposition of the case is due to the
Provided, however, That in each particular instance full
fault, negligence or petition of the respondent, the period


report of such appointment shall be made to the SECTION 66. Liability of Disbursing Officers. — Except
Commission. as may otherwise be provided by law, it shall be unlawful
The restriction mentioned in subsection (1) shall not be for a treasurer or other fiscal officer to draw or retain from
applicable to the case of a member of any family who, the salary due an officer or employee any amount for
after his or her appointment to any position in an office or contribution or payment of obligations other than those
bureau, contracts marriage with someone in the same due the government or its instrumentalities.
office or bureau, in which event the employment or SECTION 67. Penal Provision. — Whoever makes any
retention therein of both husband and wife may be appointment or employs any person in violation of any
allowed. provision of this Title or the rules made thereunder or
(3) In order to give immediate effect to these whoever commits fraud, deceit or intentional
provisions, cases of previous appointments which are in misrepresentation of material facts concerning other civil
contravention hereof shall be corrected by transfer, and service matters, or whoever violates, refuses or neglects to
pending such transfer, no promotion or salary increase comply with any of such provisions or rules, shall upon
shall be allowed in favor of the relative or relatives who conviction be punished by a fine not exceeding one
were appointed in violation of these provisions. thousand pesos or by imprisonment not exceeding six (6)
months, or both such fine and imprisonment in the
discretion of the court.
CHAPTER 9 Leave of Absence
SECTION 60. Leave of Absence. — Officers and SUBTITLE B The Commission on Audit
employees in the Civil Service shall be entitled to leave of
absence, with or without pay, as may be provided by law
and the rules and regulations of the Civil Service CHAPTER 1 General Provisions
Commission in the interest of the service. SECTION 1. Declaration of Policy. — All resources of
the government shall be managed, expended or utilized
CHAPTER 10 Miscellaneous Provisions in accordance with law and regulations and safeguarded
against loss or wastage through illegal or improper
SECTION 61. Examining Committee, Special disposition to ensure efficiency, economy and
Examiners and Special Investigators. — Subject to effectiveness in the operations of government. The
approval by the proper head of a department or agency, responsibility to take care that such policy is faithfully
the Commission may select suitable persons in the adhered to rests directly with the chief or head of the
government service to act as members of examining government agency concerned.
committees, special examiners or special investigators.
Such person shall be designated examiners or SECTION 2. Definition of Terms. — Unless the context
investigators of the Commission and shall perform such otherwise requires, when used in this Title:
duties as the Commission may require, and in the (1) "Fund" is a sum of money or other resources set
performance of such duties they shall be under its aside for the purpose of carrying out specific activities or
exclusive control. Examining committees, special attaining certain objectives in accordance with special
examiners or special investigators so designated may be regulations, restrictions, or limitations, and constitutes an
given allowances or per diems for their services, to be independent fiscal and accounting entity.
paid out of the funds of, and at a rate to be determined
by, the Commission. (2) "Government funds" includes public moneys of
every sort and other resources pertaining to any agency
SECTION 62. Fees. — The Commission shall collect and of the Government.
charge fees for civil service examinations, certifications of
civil service ratings, service records, and other civil service (3) "Revenue funds" comprises all funds deprived from
matters, training courses, seminars, workshops in the income of any agency of the Government and
personnel management and other civil service matters. available for appropriation or expenditure in accordance
For this purpose, the Commission shall prescribe with law.
standard and reasonable rates for such examinations, (4) "Trust funds" refers to funds which have come
certifications, training courses, seminars, and workshops: officially into the possession of any agency of the
Provided, That no examination fees shall be collected in Government or of a public officer as trustee, agent, or
examinations given for the selection of scholars. administrator, or which have been received for the
SECTION 63. Income. — The income of the fulfillment of some obligation.
Commission from fees, costs for services it may assess (5) "Depository funds" comprises funds over which the
and levy, and such other proceeds generated in the officer accountable therefor may retain control for the
performance of its functions shall be directly utilized by lawful purposes for which they came into his possession.
the Commission for its expenses. It embraces moneys in any and all depositories.
SECTION 64. Authority of Officers to Administer (6) "Depository" refers to any financial institution
Oaths, Take Testimony, Prosecute and Defend Cases in lawfully authorized to receive government moneys upon
Court. — Members of the Commission, chiefs of offices, deposit.
and other officers and employees of the Commission (7) "Resources" refers to the actual assets of any
designated in writing by the Chairman may administer agency of the Government such as cash, instruments
such oath as may be necessary in the transactions of representing or convertible to money, receivables, lands,
official business and administer oaths and take testimony buildings, as well as contingent assets, such as estimated
in connection with any authorized investigation. revenues applying to the current fiscal period not
Attorneys of the Commission may prosecute and defend accrued or collected, and bonds authorized and unissued.
cases in connection with the functions of the
Commission before any court or tribunal. (8) "Government agency" or "agency of the
government," or "agency" refers to any department,
SECTION 65. Liability of Appointing Authority. — No bureaus or office of the National Government, or any of its
person employed in the Civil Service in violation of the branches and instrumentalities, or any political
Civil Service Law and rules shall be entitled to receive pay subdivision, as well as any government-owned or
from the government; but the appointing authority controlled corporation, including its subsidiaries, or other
responsible for such unlawful employment shall be self-governing board or commission of the Government.
personally liable for the pay that would have accrued had
the employment been lawful, and the disbursing officials
shall make payment to the employee of such amount
from the salary of the officers so liable.


(c) Maintain and administer the accounting system
CHAPTER 2 Organization of the Commission on Audit pertaining to the accounts of the Commission;
SECTION 3. The Commission Proper. — The (d) Develop and maintain the management
Commission Proper shall be composed of the Chairman information system of the Commission;
and two Commissioners. It shall sit as a body to formulate (e) Develop and administer a management
policies, promulgate rules and regulations, and prescribe improvement program, including a system for
standards governing the discharge of its powers and measurement of performance of auditing units on which
functions. an annual report shall be submitted to the Chairman not
SECTION 4. The Chairman. — The Chairman shall act later than the 31st of January of each year;
as Presiding Officer of the Commission Proper and Chief (f) Render consultancy services related to the
Executive Officer of the Commission. The Chairman may discharge of government auditing functions; and
be assisted by the commissioners in the general
administration of the Commission. He shall perform the (g) Perform such other related functions as may be
following duties: assigned from time to time by the Chairman.
(1) Control and supervise the general administration of (3) The State Accounting and Auditing Development
the commission; Office shall be headed by a Director and shall perform the
(2) Direct and manage the implementation and
execution of policies, standards, rules and regulations of (a) Formulate long range plans for a comprehensive
the commission; training program for all personnel of the Commission and
personnel of the agencies of government, with respect to
(3) Control and supervise the audit of highly technical Commission rules and regulations and audit matters;
or confidential transactions or accounts of any
government agency; and (b) Prepare and implement annual training programs,
consistent with its long range plans;
(4) Perform such other related functions as may be
assigned from time to time by the Chairman. (c) Develop its capability to implement training
programs;
SECTION 5. Offices of the Commissioners. — There
shall be two (2) Commissioners who shall assist the (d) Publish the professional journal of the Commission;
Chairman, upon proper delegation in the general (e) Establish and maintain such training centers and
administration of the Commission. They shall assist in the libraries as may be authorized by the Commission; and
review and evaluation of existing policies as well as in the
formulation of new ones. (f) Perform such other related functions as may be
assigned from time to time by the Chairman.
SECTION 6. The Commission Secretariat. — The
Commission Secretariat shall be headed by the Secretary (4) The Accountancy Office shall be headed by a
to the Commission who shall have the privileges of a COA Director and shall perform the following functions:
service chief. The Commission Secretariat shall perform (a) Prepare for the Commission, the annual financial
the following functions: report of the National Government and such other
(1) Prepare the agenda for the sessions of the financial or statistical works as may be required by the
Commission Proper; Commission;
(2) Prepare and keep the minutes of all sessions, (b) Maintain the accounts of the current surplus of the
hearings and conferences of the Commission Proper; general fund of the national government;
(3) Maintain the records of the Commission Proper; (c) Verify appropriations of national government
and agencies and control fund releases pertaining thereto;
and
(4) Perform such related functions as may be assigned
by the Chairman of the Commission Proper. (d) Assist in the formulation of accounting rules and
regulations and supervise the implementation of such
rules and regulations in government agencies.
CHAPTER 3 Offices
(5) The Special Audits Office shall be headed by a
SECTION 7. Central Offices. — The Commission shall Director and shall perform the following functions:
have the following central offices:
(a) Conduct, consistent with the exercise by the
(1) The Administrative Office shall be headed by a Commission of its visitorial powers as conferred by the
Director and shall perform the following functions: variable scope audit of non-governmental firms
(a) Develop and maintain a personnel program which subsidized by the government (1) required to pay levies or
shall include recruitment, selection, appointment, government shares; (2) those funded by donations
performance evaluation, employee relations, and welfare through the government; and (3) those for which the
services; government has put up a counterpart fund. Such audits
shall be limited to the funds coming from the
(b) Provide the Commission with services related to government;
personnel, records, supplies, equipment, medical,
collections and disbursements, and other related services; (b) Undertake, on a selective basis, financial
and compliance, economy, efficiency and effectiveness audit
of national agencies and local government units,
(c) Perform such other related functions as may be government-owned or controlled corporations, and other
assigned from time to time by the Chairman. self-governing boards, commissions, or agencies of
(2) The Planning, Financial and Management Office government, as well as specific programs and projects of
shall: the government;
(a) Formulate long range and annual plans and (c) Audit financial operations of public utilities and
programs for the Commission; franchise grantees for rate determination and franchise
tax purposes;
(b) Formulate basis policies and guidelines for the
preparation of the budget of the Commission, coordinate (d) Conduct such other special audits as may be
with the Department of Budget and Management, and directed by the Chairman; and
the Office of the President in the preparation of the said (e) Perform such other related functions as may be
budget; assigned from time to time by the Chairman.


(6) The Technical Services Office shall perform the (f) Advise and assist the Chairman on matters
following functions: pertaining to the audit of agencies of the national
(a) Review and evaluate contracts with emphasis on government under their respective jurisdictions; and
the engineering and other technical aspects; (g) Perform such other related functions as may be
(b) Inspect and appraise infrastructure projects, assigned from time to time by the Chairman.
deliveries of materials and equipment, and property for (9) The Corporate Audit Office shall be headed by a
disposal; Director and shall perform the following functions:
(c) Develop and administer a system for monitoring (a) Exercise control and supervision over the
the prices of materials, supplies, and equipment implementation of auditing rules and regulations in
purchased by the government; government-owned or controlled corporations in the
(d) Initiate special studies on technical matters related National Capital Region;
to auditing; and (b) Review audit reports covering government-owned
(e) Perform such other related functions as may be or controlled corporations;
assigned from time to time by the Chairman. (c) Exercise control and supervision over personnel,
(7) The Legal Office shall be headed by a General planning, financial (budgetary and accounting), and legal
Counsel with the rank and privileges of a director and matters pertaining to the Office and the Auditing units
which shall perform the following functions: under it;
(a) Perform advisory and consultative functions and (d) Formulate and develop plans, operating standards,
render legal services with respect to the performance of methods and techniques for the implementation of
the functions of the Commission and the interpretation accounting and auditing rules and regulations in
of pertinent laws and regulations; government-owned or controlled corporations;
(b) Handle the investigation of administrative cases (e) Formulate accounting and auditing rules and
filed against the personnel of the Commission, evaluate regulations for government-owned or controlled
and act on all reports of involvement of the said corporations;
personnel in anomalies or irregularities in government (f) Prepare for the Commission, the annual financial
transactions, and perform any other investigative work report of government-owned or controlled corporations;
required by the Commission upon assignment by the (g) Advise and assist the Chairman on matters
Chairman; pertaining to the audit of government-owned or
(c) Represent the Commission in preliminary controlled corporations; and
investigation of malversation and similar cases discovered (h) Perform such other related functions as may be
in audit, assist and collaborate with the prosecuting assigned from time to time by the Chairman.
agencies of Government in the prosecution thereof, and
assist and collaborate with the Solicitor General in (10) The Local Governments Audit Office shall be
handling civil cases involving the Chairman or any of the headed by a Director and shall perform the following
Commissioners and other officials and employees of the functions:
Commission in their official capacity; (a) Exercise control and supervision over the
(d) Extend assistance by way of legal advice or counsel implementation of auditing rules and regulations in local
to auditors of the Commission who face harassment or government units in the National Capital Region;
retaliatory suits, whether civil or criminal, in consequence (b) Review audit reports covering local government
of the performance of their official functions; units in the National Capital Region;
(e) Coordinate and initiate for the Commission, with (c) Exercise control and supervision over personnel,
appropriate legal bodies of government with respect to planning, financial (budgetary and accounting), and legal
legal proceedings towards the collection and matters pertaining to the Office and Auditing units under
enforcement of debts and claims, and the restitution of it;
funds and property, found to be due any government
agency in the settlement and adjustment of its accounts (d) Formulate and develop plans, operating standards,
by the Commission; and methods and techniques for the implementation of
auditing rules and regulations in local government units;
(f) Perform such other related functions as may be
assigned from time to time by the Chairman. (e) Formulate accounting and auditing rules and
regulations for local government units;
(8) The National Government Audit Offices I and II shall
be headed by a Director and which shall perform the (f) Prepare for the Commission, the annual financial
following functions: report of local government units;
(a) Exercise control and supervision over the (g) Advise and assist the Chairman on matters
implementation of auditing rules and regulations in pertaining to the audit of local government units; and
agencies of national government in the National Capital (h) Perform such other related functions as may be
Region (NCR), including self-governing boards, assigned from time to time by the Chairman.
commissions or agencies funded from national
appropriations; SECTION 8. Auditing Units in Regional Offices:
Structure and Functions. — The Regional Offices in
(b) Review audit reports covering agencies of the Regions I to XII, each to be headed by a Director shall
national government under its audit jurisdiction; perform the following functions:
(c) Exercise control and supervision over personnel, (1) Exercise supervision and control over the
planning, financial (budgetary and accounting), and legal implementation of auditing rules and regulations in any
matters pertaining to the Office and the Auditing Units agency of the government with principal office or place
under it; of operations within the regions;
(d) Formulate and develop plans, operating standards, (2) Review local, national and corporate audit reports
methods and techniques for the implementation of pertaining to the region;
auditing rules and regulations for agencies of the
national government; (3) Exercise control and supervision over personnel,
planning, financial (budgetary and accounting), and legal
(e) Formulate accounting and auditing rules and matters pertaining to the region; and
regulations for agencies of the national government;


(4) Perform such other related functions as may be (2) The Commission shall have exclusive authority,
assigned by the Chairman. subject to the limitations in this Article, to define the
SECTION 9. Auditing Units in Government Agencies: scope of its audit and examination, establish the
Structure and Functions. — The Auditing Units in techniques and methods required therefor, and
government agencies shall perform the following promulgate accounting and auditing rules and
functions: regulations, including those for the prevention and
disallowance of irregular, unnecessary, excessive,
(1) Examine, audit and settle all accounts, funds, extravagant, or unconscionable expenditures, or uses of
financial transactions and resources of government government funds and properties.
agencies under their jurisdiction;
SECTION 12. Appointing Power. — The Commission
(2) Submit audit reports and such other reports as may Proper shall appoint in accordance with the Civil Service
be required by the Commission; Law, the officials and employees of the Commission
(3) Keep and preserve expense vouchers, journal wherever they are stationed or assigned.
vouchers, stubs of treasury warrants and checks, reports SECTION 13. Examining Authority. — The Commission
of collections and disbursements and similar documents shall have authority to examine books, papers,
together with their supporting papers, under regulations documents filed by individuals and corporations with,
of the Commission; and and which are in the custody of, government offices in
(4) Perform such other functions as may be assigned connection with government revenue collection
to them by the Chairman. operations, for the sole purpose of ascertaining that all
funds determined by the appropriate agencies and
collectible and due the Government have actually been
CHAPTER 4 Jurisdiction, Powers and Functions of the collected, except as otherwise provided in the Internal
Commission Revenue Code of 1977.
SECTION 10. Statement of Objectives. — In keeping SECTION 14. Visitorial Authority. — (1) The
with the constitutional mandate, the Commission Commission shall have visitorial authority over
adheres to the following objectives: non-government entities subsidized by the Government,
(1) Determine whether or not the fiscal responsibility those required to pay levies or have government shares,
that rests directly with the head of the government those which have received counterpart funds from the
agency has been properly and effectively discharged; Government or are partly funded by donations through
the Government. This authority, however, shall pertain
(2) Develop and implement a comprehensive audit only to the audit of these funds or subsidies coming from
program that shall encompass an examination of or through the Government; and
financial transactions, accounts and reports, including
evaluation of compliance with applicable laws and (2) Upon direction of the President, the Commission
regulations; shall likewise exercise visitorial authority over
non-governmental entities whose loans are guaranteed
(3) Institute control measures through the by the Government, provided that such authority shall
promulgation of auditing and accounting rules and pertain only to the audit of the government's contingent
regulations governing the receipts, disbursements, and liability.
uses of funds and property, consistent with the total
economic development efforts of the Government; SECTION 15. Fee for Audit and Other Services. — (1)
The Commission shall fix and collect reasonable fees for
(4) Promulgate auditing and accounting rules and the different services rendered to non-government
regulations so as to facilitate the keeping, and enhance entities that shall be audited in connection with their
the information value of the accounts of the Government; dealings with the Government arising from subsidiaries,
(5) Institute measures designed to preserve and counterpart funding by Government, or where audited
ensure the independence of its representatives; and records become the basis for a government levy or share.
Fees of this nature shall accrue to the General Fund and
(6) Endeavor to bring its operations closer to the shall be remitted to the Treasurer of the Philippines
people by the delegation of authority through within ten (10) days following the completion of the audit;
decentralization, consistent with the provisions of the and
Constitution and the laws.
(2) Whenever the Commission contracts with any
SECTION 11. General Jurisdiction. — (1) The government entity to render audit and related services
Commission on Audit shall have the power, authority, and beyond the normal scope of such services, the
duty to examine, audit, and settle all accounts pertaining Commission is empowered to fix and collect reasonable
to the revenue and receipts of, and expenditures or uses fees. Such fees shall either be appropriated in the
of funds and property, owned or held in trust by, or agency's current budget, charged against its savings, or
pertaining to, the Government, or any of its subdivisions, appropriated in its succeeding year's budget. Remittance
agencies, or instrumentalities, including shall accrue to the General Fund and shall be made to the
government-owned or controlled corporations with Treasurer of the Philippines within the time provided for
original charters, and on a post-audit basis: (a) in the contract of service, or in the billing rendered by the
constitutional bodies, commissions and offices that have Commission.
been granted fiscal autonomy under this Constitution; (b)
autonomous state colleges and universities; (c) other SECTION 16. Deputization of Private Licensed
government-owned or controlled corporations and their Professionals to Assist Government Auditors. — (1) The
subsidiaries; and (d) such non-governmental entities Commission may, when the exigencies of the service so
receiving subsidy or equity, directly or indirectly, from or require, deputize and retain in the name of the
through the Government, which are required by law or Commission such certified public accountants and other
the granting institution to submit to such audit as a licensed professionals not in the public service as it may
condition of subsidy or equity. However, where the deem necessary to assist government auditors in
internal control system of the audited agencies is undertaking specialized audit engagements; and
inadequate, the Commission may adopt such measures, (2) The deputized professionals shall be entitled to
including temporary or special pre-audit, as are necessary such compensation and allowances as may be stipulated,
and appropriate to correct the deficiencies. It shall keep subject to pertinent rules and regulations on
the general accounts of the Government and, for such compensation and fees.
period as may be provided by law, preserve the vouchers
and other supporting papers pertaining thereto. SECTION 17. Government Contracts for Auditing,
Accounting and Related Services. — (1) No government
agency shall enter into any contract with any private



person or firm for services to undertake studies and (3) During the examination and audit, the public utility
services relating to government auditing, including concerned shall produce all the reports, records, books of
services to conduct, for a fee, seminars or workshops for accounts and such other papers as may be required. The
government personnel on these topics, unless the Commission shall have the power to examine under oath
proposed contract is first submitted to the Commission any official or employee of the said public utility.
to enable it to determine if it has the resources to SECTION 23. Submission of Papers Relative to
undertake such studies or services. The Commission may Obligations. — (1) The Commission shall have the power,
engage the services of experts from the public or private for purposes of inspection, to require the submission of
sectors in the conduct of these studies; and the original of any order, deed, contract, or other
(2) Should the Commission decide not to undertake document under which any collection, or payment from,
the study or service, it shall nonetheless have the power government funds may be made, together with any
to review the contract in order to determine the certificate, receipt, or other evidence in connection
reasonableness of its costs. therewith. If authenticated copy is needed for record
SECTION 18. Settlement of Accounts Between purposes, the copy shall upon demand be furnished;
Agencies. — The Commission shall have the power, under (2) In the case of deeds to property purchased by any
such regulations as it may prescribe, to authorize and government agency, the Commission shall require a
enforce the settlement of accounts subsisting between certificate of title entered in favor of the Government or
agencies of the Government. other evidence satisfactory to it that the title is in the
SECTION 19. Collection of Indebtedness Due to the Government; and
Government. — The Commission shall, through proper (3) It shall be the duty of the officials or employees
channels, assist in the collection and enforcement of all concerned, including those in non-government entities
debts and claims, and the restitution of all funds or the under audit, or affected in the audit of government and
replacement or payment as a reasonable price of non-government entities, to comply with these
property, found to be due the Government, or any of its requirements. Failure or refusal to do so without
subdivisions, agencies or instrumentalities, or any justifiable cause shall be a ground for administrative
government-owned or controlled corporation or disciplinary action as well as for disallowing permanently
self-governing board, commission or agency of the a claim under examination, assessing additional levy or
Government, in the settlement and adjustment of its government share, or withholding or withdrawing
accounts. If any legal proceeding is necessary to that end, government funding or donations through the
the Commission shall refer the case to the Solicitor Government.
General, the Government Corporate Counsel, or the Legal SECTION 24. Investigatory and Inquisitorial Powers.
Staff of the Creditor Government Office or agency — The Chairman or any Commissioner, the Central Office
concerned to institute such legal proceeding. The Managers, the Regional Directors, the Auditors of any
Commission shall extend full support in the litigation. All government agency, and any other official or employee of
such moneys due and payable shall bear interest at the the Commission specially deputed in writing for the
legal rate from the date of written demand by the purpose by the Chairman shall, in compliance with the
Commission. requirement of due process, have the power to summon
SECTION 20. Power to Compromise Claims. — (1) the parties to a case brought before the Commission for
When the interest of the Government so requires, the resolution, issue subpoena and subpoena duces tecum,
Commission may compromise or release in whole or in administer oaths, and otherwise take testimony in any
part, any settled claim or liability to any government investigation or inquiry on any matter within the
agency not exceeding ten thousand pesos arising out of jurisdiction of the Commission.
any matter or case before it or within its jurisdiction, and SECTION 25. Power to Punish Contempt. — The
with the written approval of the President, it may likewise Commission shall have the power to punish contempt
compromise or release any similar claim or liability not provided for in the Rules of Court under the same
exceeding one hundred thousand pesos. In case the procedure and with the same penalties provided therein.
claim or liability exceeds one hundred thousand pesos, Any violation of any final and executory decision, order or
the application for relief therefrom shall be submitted, ruling of the Commission shall constitute contempt of
through the Commission and the President, with their the Commission.
recommendations, to the Congress; and
SECTION 26. Annual Report of the Commission. — (1)
(2) The Commission may, in the interest of the The Commission shall submit to the President and the
Government, authorize the charging or crediting to an Congress not later than the last day of September of each
appropriate account in the National Treasury, small year an annual report on the financial condition and
discrepancies (overage or shortage) in the remittances to, results of operation of all agencies of the Government
and disbursements of, the National Treasury, subject to which shall include recommendations of measures
the rules and regulations as it may prescribe. necessary to improve the efficiency and effectiveness of
SECTION 21. Retention of Money for Satisfaction of these agencies;
Indebtedness to Government. — When any person is (2) To carry out the purposes of this section, the Chief
indebted to any government agency, the Commission Accountant or the official in charge of keeping the
may direct the proper officer to withhold the payment of accounts of government agency shall submit to the
any money due such person or his estate to be applied in Commission year-end trial balances and such other
satisfaction of the indebtedness. supporting or subsidiary statements as may be required
SECTION 22. Authority to Examine Accounts of by the Commission not later than the fourteenth (14) day
Public Utilities. — (1) The Commission shall examine and of February. Trial balances returned by the Commission
audit the books, records and accounts of public utilities in for revision due to non-compliance with accounting rules
connection with the fixing of rates of every nature, or in and regulations shall be resubmitted within three days
relation to the proceedings of the proper regulatory after the date of receipt by the official concerned; and
agencies, for purposes of determining franchise taxes; (3) Failure on the part of any official or employee to
(2) Any public utility refusing to allow an examination comply with the provisions of the immediately preceding
and audit of its books of accounts and pertinent records, paragraph shall cause the automatic suspension of the
or offering unnecessary obstruction to the examination payment of his salary and other emoluments until he
and audit, or found guilty of concealing any material shall have complied therewith. The violation of these
information concerning its financial status shall be provisions for at least three (3) times shall subject the
subject to the penalties provided by law; and offender to administrative disciplinary action.


SECTION 27. Statement of Monthly Receipts and temporarily continue the public business of such office;
Disbursements. — The Commission shall forward to the and
Secretary of Finance, as soon as and within sixty (60) days (3) The auditor who takes possession of the office of
after the expiration of each month, a statement of all the local treasurer under this section shall ipso facto
receipts of the national government of whatever class, supersede the local treasurer until the officer involved is
and payments of moneys made on warrants or otherwise restored, or another person has been appointed or
during the preceding month. designated to the position or other provision has been
SECTION 28. Powers, Functions, Duties of Auditors as lawfully made for filling the office.
Representatives of the Commission. — (1) The Auditors SECTION 32. Constructive Distraint of Property of
shall exercise such powers and functions as may be Accountable Officer. — (1) Upon discovery in audit of a
authorized by the Commission in the examination, audit shortage in the accounts of any accountable officer and
and settlement of the accounts, funds, financial upon a finding of a prima facie case of malversation of
transactions and resources of the agencies under their public funds or property against him, in order to
respective audit jurisdiction; safeguard the interest of the Government, the
(2) A report of audit for each calendar year shall be Commission may place under constructive distraint
submitted on the last working day of February following personal property of the accountable officer concerned
the close of the year by the head of each auditing unit where there is reasonable ground to believe that the said
through the Commission to the head or the governing officer is retiring from the government service or intends
body of the agency concerned, and copies thereof shall to leave the Philippines or remove his property therefrom
be furnished the government officials concerned or or hide or conceal his property;
authorized to receive them. Subject to such rules and (2) The constructive distraint shall be effected by
regulations as the Commission may prescribe, the report requiring the accountable officer concerned or any other
shall set forth the scope of audit and shall include person having possession or control of the property to
statements of financial conditions, surplus or deficit accomplish a receipt, in the form prescribed by the
analysis, operations, changes in financial position, and Commission, covering the property distrained and
such comments and information as may be necessary obligate himself to preserve the same intact and
together with such recommendations with respect unaltered and not to dispose of it in any manner
thereto as may be advisable, including a report of any whatever without the express authority of the
impairment of capital noted in the audit. It shall also Commission; and
show specifically any program, expenditure, or other
financial transaction or undertaking observed in the (3) In case the said accountable officer or other person
course of audit which in the opinion of the auditor has having the possession and control of the property sought
been carried out or made without authority of law. The to be placed under constructive distraint refuses or fails
auditor shall render such other reports as the to accomplish the receipt herein referred to, the
Commission may require; representative of the Commission effecting the
constructive distraint shall proceed to prepare a list of
(3) In the performance of their respective audit such property and, in the presence of two (2) witnesses,
functions as herein specified, the auditors shall employ leave a copy thereof in the premises where the property
such auditing procedures and techniques as are distrained is located, after which the said property shall
determined by the Commission under regulations that it be deemed to have been placed under constructive
may promulgate; and distraint.
(4) The auditors in all auditing units shall have the
custody and be responsible for the safekeeping and CHAPTER 5 Decisions of the Commission
preservation of paid expense vouchers, journal vouchers,
stubs of treasury warrants or checks, reports of collections SECTION 33. Appeal from Decision of Auditors. — Any
and disbursements and similar documents, together with person aggrieved by the decision of an auditor of any
their respective supporting papers, under regulations of government agency in the settlement of an account or
the Commission. claim may, within six (6) months from receipt of a copy
thereof, appeal in writing to the Commission.
SECTION 29. Check and Audit of Property or
Supplies. — The auditor shall from time to time conduct SECTION 34. Period for Rendering Decisions of the
a careful and thorough check and audit of all property or Commission. — The Commission shall decide any case
supplies of the agency to which he is assigned. Such brought before it within sixty (60) days from the date of
check and audit shall not be confined to a mere its submission for resolution. If the account or claim
inspection and examination of the pertinent vouchers, involved in the case needs reference to other persons or
inventories, and other papers but shall include an ocular offices, or to a party interested, the period shall be
verification of the existence and condition of the property counted from the time the last comment necessary to a
or supplies. The recommendation of the auditor shall be proper decision is received by it.
embodied in the proper report. SECTION 35. Appeal from Decision of the
SECTION 30. Annual Audit and Work Program. — Commission. — Any decision, order or ruling of the
Each Auditor who is head of an auditing unit shall Commission may be brought to the Supreme Court on
develop and devise an annual work program and the certiorari by the aggrieved party within thirty days from
necessary audit program for his unit in accordance with his receipt of a copy thereof in the manner provided by
regulations of the Commission. law and the Rules of Court. When the decision, order or
ruling adversely affects the interest of any government
SECTION 31. Seizure of Office by Auditor. — (1) The
agency, the appeal may be taken by the proper head of
books, accounts, papers and cash of any local treasurer or
that agency.
other accountable officer shall at all times be open to the
inspection of the Commission or its authorized SECTION 36. Finality of Decision of the Commission
representative; or Any Auditor. — A decision of the Commission or of any
Auditor upon any matter within its or his jurisdiction, if
(2) In case an examination of the accounts of a local
not appealed as herein provided, shall be final and
treasurer discloses a shortage in cash which should be on
executory.
hand, it shall be the duty of the examining officer to seize
the office and its contents, notify the Commission and SECTION 37. Opening and Revision of Settled
the local chief executive, thereupon immediately take full Accounts. — (1) At any time before the expiration of three
possession of the office and its contents, close and render (3) years after the settlement of any account by an
his accounts to the date of taking possession, and auditor, the Commission may motu proprio review and
revise the account or settlement and certify a new


balance. For this purpose, it may require any account, the like, or officially numbered receipts, subject to proper
vouchers or other papers connected with the matter to custody, accountability and audit; and
be forwarded to it; (2) Where mechanical devices are used to
(2) When any settled account appears to be tainted acknowledge cash receipts, the Commission may
with fraud, collusion, or error of calculation, or when new approve, upon request, exemption from the use of
and material evidence is discovered, the Commission accountable forms.
may, within three (3) years after the original settlement,
open the account and, after a reasonable time for reply or CHAPTER 8 Application of Appropriated Funds
appearance of the party concerned, certify thereon a new
balance. An auditor may exercise the same power with SECTION 45. Disbursement of Government Funds. —
respect to settled accounts pertaining to the agencies (1) Revenue funds shall not be paid out of any public
under his audit jurisdiction; and treasury or depository except in pursuance of an
appropriation law or other specific statutory authority;
(3) Accounts once finally settled shall in no case be
opened or reviewed except as herein provided. (2) Trust funds shall not be paid out of any public
treasury or depository except in fulfillment of the purpose
for which the trust was created or funds received, and
CHAPTER 6 Government Auditing and Accounting
upon authorization of the legislative body, or head of any
SECTION 38. Definition of Government Auditing. — other agency of the government having control thereof,
Government auditing is the analytical and systematic and subject to pertinent budget laws, rules and
examination and verification of financial transactions, regulations;
operations, accounts and reports of any government (3) National revenue and trust funds shall not be
agency for the purpose of determining their accuracy, withdrawn from the National Treasury except upon
integrity and authenticity, and satisfying the warrant or other instruments of withdrawal approved by
requirements of law, rules and regulations. the Secretary of Finance as recommended by the
SECTION 39. General Standards. — (1) The audit shall Treasurer of the Philippines; and
be performed by a person possessed with adequate (4) Temporary investment of investible cash in the
technical training and proficiency as auditor; National Treasury in any securities issued by the National
(2) In all matters relating to the audit work, the auditor Government and its political subdivisions and
shall maintain complete independence, impartiality and instrumentalities, including government-owned or
objectivity and shall avoid any possible compromise of his controlled corporations as authorized by the Secretary of
independence or any act which may create a Finance, shall not be construed as disbursements of
presumption of lack of independence or the possibility of funds.
undue influence in the performance of his duties; and SECTION 46. Appropriation Before Entering into
(3) The auditor shall exercise due professional care and Contract. — (1) No contract involving the expenditure of
be guided by applicable laws, regulations and the public funds shall be entered into unless there is an
generally accepted principles of accounting in the appropriation therefor, the unexpended balance of which,
performance of the audit work as well as in the free of other obligations, is sufficient to cover the
preparation of audit and financial reports. proposed expenditure; and
SECTION 40. Definition of Government Accounting. (2) Notwithstanding this provision, contracts for the
— Government accounting includes the processes of procurement of supplies and materials to be carried in
analyzing, recording, classifying, summarizing and stock may be entered into under regulations of the
communicating all transactions involving the receipt and Commission provided that when issued, the supplies and
dispositions of government funds and property, and materials shall be charged to the proper appropriations
interpreting the results thereof. account.
SECTION 41. Objectives of Government Accounting. SECTION 47. Certificate Showing Appropriation to
— Government accounting shall aim to produce Meet Contract. — Except in the case of a contract for
information concerning past operations and present personal service, for supplies for current consumption or
conditions; provide a basis for guidance for future to be carried in stock not exceeding the estimated
operations; provide for control of the acts of public bodies consumption for three (3) months, or banking
and officers in the receipt, disposition and utilization of transactions of government-owned or controlled banks,
funds and property; and report on the financial position no contract involving the expenditure of public funds by
and the results of operations of government agencies for any government agency shall be entered into or
the information of all persons concerned. authorized unless the proper accounting official of the
agency concerned shall have certified to the officer
CHAPTER 7 Receipt and Disposition of Funds and Property entering into the obligation that funds have been duly
appropriated for the purpose and that the amount
SECTION 42. Accounting for Money and Property necessary to cover the proposed contract for the current
Received by Public Officials. — Except as may otherwise calendar year is available for expenditure on account
be specifically provided by law or competent authority, all thereof, subject to verification by the auditor concerned.
moneys and property officially received by a public officer The certificate signed by the proper accounting official
in any capacity or upon any occasion must be accounted and the auditor who verified it, shall be attached to and
for as government funds and government property. become an integral part of the proposed contract, and
Government property shall be taken up in the books of the sum so certified shall not thereafter be available for
the agency concerned at acquisition cost or an appraised expenditure for any other purpose until the obligation of
value. the government agency concerned under the contract is
SECTION 43. Special, Fiduciary and Trust Funds. — fully extinguished.
Receipts shall be recorded as income of Special, Fiduciary SECTION 48. Void Contract and Liability of Officer. —
or Trust Funds or Funds other than the General Fund only Any contract entered into contrary to the requirements of
when authorized by law as implemented pursuant to law. the two (2) immediately preceding sections shall be void,
SECTION 44. Issuance of Official Receipts. — (1) No and the officer or officers entering into the contract shall
payment of any nature shall be received by a collecting be liable to the Government or other contracting party for
officer without immediately issuing an official receipt in any consequent damage to the same extent as if the
acknowledgment thereof. The receipt may be in the form transaction had been wholly between private parties.
of postage, internal revenue or documentary stamps and SECTION 49. Countersigning of Warrants or Checks
by Auditors. — No warrant or check shall be paid by the



Treasurer of the Philippines, local treasurer, or any (1) Promulgate rules and regulations implementing
government depository unless it is countersigned by a the provisions of the Omnibus Elections Code or other
duly authorized official of the Commission. When, in the laws which the Commission is required to enforce and
opinion of the Commission, the interest of the service so administer;
requires, the warrant or check may be paid without the (2) Fix other reasonable periods for certain pre-election
countersignature under such rules and regulations as it requirements in order that voters shall not be deprived of
may prescribe from time to time. their right of suffrage and certain groups of rights
granted them in the Omnibus Election Code;
CHAPTER 9 Accountability and Responsibility for Unless indicated in the Omnibus Election Code, the
Government Funds and Property Commission is hereby authorized to fix the appropriate
SECTION 50. Accountable Officers; Board period for the various prohibited acts enumerated therein
Requirements. — (1) Every officer of any government consistent with the requirements of free, orderly, honest,
agency whose duties permit or require the possession or peaceful and credible elections.
custody government funds shall be accountable therefor (3) Exercise direct and immediate supervision and
and for safekeeping thereof in conformity with law; and control over national and local officials or employees,
(2) Every accountable officer shall be properly bonded including members of any national or local law
in accordance with law. enforcement agency and instrumentality of the
government required by law to perform duties relative to
SECTION 51. Primary and Secondary Responsibility. the conduct of elections, plebiscite, referendum, recall
— (1) The head of any agency of the Government is and initiative. In addition, it may authorize CMT cadets,
immediately and primarily responsible for all government eighteen years of age and above to act as its deputies for
funds and property pertaining to his agency; the purpose of enforcing its orders;
(2) Persons entrusted with the possession or custody The Commission may relieve any officer or employee
of the funds or property under the agency head shall be referred to in the preceding paragraph from the
immediately responsible to him, without prejudice to the performance of his duties relating to electoral processes
liability of either party to the Government. who violates the election law or fails to comply with its
SECTION 52. General Liability for Unlawful instructions, orders, decisions or rulings, and appoint his
Expenditures. — Expenditures of government funds or substitute. Upon recommendation of the Commission,
uses of government property in violation of law or the corresponding proper authority shall suspend or
regulations shall be a personal liability of the official or remove from office any or all of such officers or
employee found to be directly responsible therefor. employees who may, after due process, be found guilty of
SECTION 53. Prohibition Against Pecuniary Interest. such violation or failure.
— No accountable or responsible officer shall be (4) During the period of the campaign and ending
pecuniarily interested, directly or indirectly, in any thirty days thereafter, when in any area of the country
contract or transaction of the agency in which he is such there are persons committing acts of terrorism to
an officer. influence people to vote for or against any candidate or
political party, the Commission shall have the power to
CHAPTER 10 Miscellaneous Provisions authorize any member or members of the Armed Forces
of the Philippines, the National Bureau of Investigation,
SECTION 54. Duty to Respect the Commission's the Integrated National Police or any similar agency or
Independence. — It shall be the duty of every person to instrumentality of the government, except civilian home
respect, protect and preserve the independence of the defense forces, to act as deputies for the purpose of
Commission. insuring the holding of free, orderly, honest, peaceful and
SECTION 55. Administrative Disciplinary Action. — credible elections;
Subject to rules and regulations as may be approved by (5) Publish at least ten (10) days before an election in a
the President, any unjustified failure by the public officer newspaper of general circulation certified data on the
concerned to comply with any requirement imposed in number of official ballots and election returns and the
Title I-B, Book V of this Code shall constitute neglect of names and address of the printers and the number
duty and shall be a ground for administrative disciplinary printed by each;
action against said public officer who, upon being found
(6) Refuse, motu propio or upon a verified petition, to
guilty thereof after hearing, shall be meted out such
give due course to or cancel a certificate of candidacy if it
penalty as is commensurate with the degree of his guilt
is shown that said certificate has been filed to put the
in accordance with the Civil Service Law. Repeated
election process in mockery or disrepute or to cause
unjustified failure to comply with the requirement
confusion among the voters by the similarity of the
imposed in Title I-B, Book V of this Code shall be
names of the registered candidates or by other
conclusive proof that the public officer concerned is
circumstances or acts which clearly demonstrate that the
notoriously undesirable.
candidate has no bona fide intention to run for the office
for which the certificate of candidacy has been filed and
SUBTITLE C Commission on Elections thus prevent a faithful determination of the true will of
the electorate;
CHAPTER 1 General Provisions (7) Postpone, motu propio or upon verified petition
and after due notice and hearing whereby all interested
SECTION 1. Declaration of Policy. — The State shall at parties are afforded equal opportunity to be heard, the
all times ensure free, orderly, honest, peaceful and election to a date which should be reasonably close to the
credible elections under a free and open party system date of the election not held, suspended or which
which shall be allowed to evolve according to the free resulted in a failure to elect but not later than thirty days
choice of the people subject to the provisions of Article after the cessation of the cause for such postponement or
IX-C of the 1987 Constitution of the Philippines. suspension of the election or failure to elect, when for any
SECTION 2. Powers and Functions. — In addition to serious cause such as violence, terrorism, loss or
the powers and functions conferred upon it by the destruction of election paraphernalia or records, force
constitution, the Commission shall have exclusive charge majeure, and other analogous causes the holding of a
of the enforcement and administration of all laws relative free, orderly, honest, peaceful and credible election
to the conduct of elections for the purpose of insuring should become impossible in any political subdivision.
free, orderly, honest, peaceful and credible elections, and (8) Call for the holding or continuation of election not
shall: held in any polling place where on account of force



majeure, violence, terrorism, fraud or other analogous (17) Carry out a continuing and systematic campaign
causes the election has not been held on the date fixed, through newspapers of general circulation, radio and
or had been suspended before the hour fixed by law for other media forms to educate the public and fully inform
the closing of the voting, or after the voting and during the electorate about election laws, procedures, decisions,
the preparation and the transmission of the election and other matters relative to the works and duties of the
returns or in the custody or canvass thereof, such election Commission and the necessity of clean, free, orderly,
results in a failure to elect, and in any of such cases the honest, peaceful and credible electoral processes;
failure or suspension of election would affect the result of (18) Accredit non-partisan groups or organizations of
the election. Such call should be on the basis of a verified citizens from the civic, youth, professional, education,
petition by any interested party and after due notice and business or labor sectors known for their probity,
hearing, and the new date should be reasonably close to impartiality and integrity with the membership and
the date of the election not held, suspended or which capability to undertake a coordinated operation and
resulted in a failure to elect but not later than thirty (30) activity to assist it in the implementation of the provisions
days after the cessation of the cause of such of Omnibus Election Code and the resolutions, orders and
postponement or suspension of the election or failure to instructions of the Commission for the purpose of
elect. ensuring free, orderly, honest, peaceful and credible
(9) Call a special election to elect the member to serve elections in any constituency. Such groups or
the unexpired portion in case a vacancy arises in the organizations shall function under the direct and
Senate or in the House of Representatives eighteen (18) immediate control and supervision of the Commission;
months or more before a regular election, to be held (19) Conduct hearing on controversies pending before
within sixty (60) days after the vacancy occurs; it in the cities or provinces upon proper motion of any
(10) Summon the parties to a controversy pending party, taking into consideration the materiality and
before it, issue subpoena duces tecum and take number of witnesses to be presented, the situation
testimony in any investigation or hearing before it, and prevailing in the area and the fund available for the
delegate such power to any officer of the Commission purpose;
who shall be a member of the Philippine Bar. In case of (20) Have exclusive jurisdiction over all
failure of a witness to attend, the Commission, upon proof pre-proclamation controversies. It may motu proprio or
of service of the subpoena to said witness, may issue a upon written petition, and after due notice and hearing,
warrant to arrest the witness and bring him before the order the partial or total suspension of the proclamation
Commission or the officer before whom his attendance is of any candidate-elect or annul partially or totally any
required; proclamation, if one has been made, as the evidence shall
Any controversy submitted to the Commission shall, warrant. Notwithstanding the pendency of any
after compliance with the requirements of due process, pre-proclamation controversy, the Commission may,
be immediately heard and decided by it within sixty (60) motu propio or upon filing of a verified petition and after
days from the date of its submission for decision or due notice and hearing, order the proclamation of other
resolution. No decision or resolution shall be rendered by winning candidates whose election will not be affected
the Commission either en banc or by division unless by the outcome of the controversy.
taken up in a formal session properly convened for the (21) Have the exclusive power, through its duly
purpose; authorized legal officers, to conduct preliminary
The Commission may when necessary, avail itself of investigation of all election offenses punishable under the
the assistance of any national or local law enforcement Omnibus Election Code and to prosecute the same. The
agency and or instrumentality of the government to Commission may avail itself of the assistance of other
execute under its direct and immediate supervision any prosecuting arms of the government: Provided, however,
of its final decisions, orders, instructions or rulings; that in the event that the Commission fails to act on any
(11) Punish for contempt according to the procedure, complaint within four (4) months from its filing, the
and with the same penalties provided, in the Rules of complainant may file the complaint with the office of the
Court. Any violation of any final and executory decision, fiscal or with the Department of Justice for proper
order or ruling of the Commission shall constitute investigation and prosecution, if warranted; and
contempt thereof; (22) Perform such other functions as may be provided
(12) Enforce and execute its decisions, directives, orders by law.
and instructions which shall have precedence over those SECTION 3. Enforcement Powers. — For the effective
emanating from any other authority, except the Supreme enforcement of the provisions of the Omnibus Election
Court and those issued in habeas corpus proceedings; Code, the Commission is further vested and charged with
(13) Prescribe the forms to be used in the election, the following powers, duties and responsibilities:
plebiscite or referendum, recall or initiative; 1. To stop any illegal activity, or confiscate, tear down,
(14) Procure any supplies, equipment, materials or and stop any unlawful, libelous, misleading or false
services needed for the holding of the election by public election propaganda, after due notice and hearing; and
bidding; but if it finds the requirements of public bidding 2. To inquire into the financial records of candidates
impractical to observe, then by negotiations or sealed and any organization or group of persons, motu propio or
bids, and in both cases, the accredited parties shall be upon written representation for probable cause by any
duly notified; candidate, organization or group of persons or qualified
(15) Prescribe the use or adoption of the latest voter, after due notice and hearing.
technological and electronic devices, taking into account For purposes of this Section, the Commission may
the situation prevailing in the area and funds available for avail itself of the assistance of the Commission on Audit,
the purpose. The Commission shall notify the authorized the Central Bank, the National Bureau of Investigation,
representatives of accredited political parties and the Bureau of Internal Revenue, the Armed Forces of the
candidates in areas affected by the use or adoption of Philippines, the Integrated National Police of the
technological and electronic devices not less than thirty Philippines, barangay officials and other agencies of the
days prior to the effectivity of the use of such devices; government.
(16) Constitute a pool of standby-teachers from which
substitutes shall be drawn in case a member/s of the CHAPTER 2 The Commission Proper
Board of Election Inspectors who, for one reason or
SECTION 4. Composition and Qualification. — There
another, failed to report or refused to act as such on the
shall be a Commission on Elections composed of a
day of election;
Chairman and six (6) Commissioners who shall be natural



born citizens of the Philippines and, at the time of their (4) Coordinate the programs and projects of the
appointment, at least thirty-five (35) years of age, holders Commission and be responsible for its economical,
of a college degree, and must not have been candidates efficient and effective administration;
for any elective position in the immediately preceding (5) Serve as deputy to the Chairman in all matters
elections. However, a majority thereof, including the relating to the operational activities of the Commission;
Chairman, shall be members of the Philippine Bar who
have been engaged in the practice of law for at least ten (6) Administer oaths in connection with all matters
(10) years. relating to the business of the Commission; and
SECTION 5. Appointment and Term of Office. — The (7) Perform such other duties as may be assigned by
Chairman and the Commissioners shall be appointed by the Chairman.
the President with the consent of the Commission on SECTION 9. Staff and Operating Units. — The
Appointments for a term of seven (7) years without Commission shall have the following staff and operating
reappointment. Of those first appointed, three (3) units: Office of the Chairman, Office of the Executive
Members shall hold office for seven (7) years, two (2) Director, Office of Electoral Contests Adjudication,
members for five (5) years, and the last members for Regional Offices, Election and Barangay Affairs
three (3) years, without reappointment. Appointment to Department, Law Department, Election Records and
any vacancy shall be only for the unexpired term of the Statistics Department, Administrative Service
predecessor. In no case shall any Member be appointed Department, Planning Department, Personnel
or designated in a temporary or acting capacity. Department, Finance Services Department and
SECTION 6. Disqualifications. — The Chairman and Education and Information Department.
members of the Commission shall be subject to the SECTION 10. Duties and Functions of Offices and
canons of judicial ethics in the discharge of their Departments of the Commission. — The different offices
functions. and departments of the Commission shall operate in
No chairman or commissioner shall sit in any case in accordance with their respective duties and functions
which he has manifested bias or prejudice or antagonism assigned to them by the Commission, subject to the
against any party thereto and in connection therewith, or requirements of efficiency, economy and effectiveness,
in any case in which he would be disqualified under the and pertinent Budget and Civil Service Law, rules and
Rules of Court. If it be claimed that the chairman or a regulations.
commissioner is disqualified as above provided, the party
objecting to his competency may file his objection in CHAPTER 3 The Field Offices
writing with the Commission stating the ground therefor.
The official concerned shall continue to participate in the SECTION 11. Field Office of the Commission. — The
hearing or withdraw therefrom in accordance with his Commission shall have the following field offices:
determination of the question of his disqualification. The (1) Regional Election Office, headed by the Regional
decision shall forthwith be made in writing and filed with Election Director and assisted by the Assistant Regional
the other papers of the case in accordance with the Rules Director and such other subordinate officers or
of Court. If a disqualification should result in a lack of employees as the Commission may appoint;
quorum in the Commission sitting en banc, the Presiding
Justice of the Court of Appeals shall designate a justice of (2) Provincial Election Office, headed by the Provincial
said court to sit in said case for the purpose of hearing Election Supervisor and assisted by such other
and reaching a decision thereon. subordinate officers or employees as the Commission
may appoint;
SECTION 7. Chairman as Executive Officer; Powers
and Duties. — The Chairman, who shall be the Chief (3) City Municipal Election Office, headed by the
Executive Officer of the Commission, shall: City/Municipal Election Registrar who shall be assisted by
an election clerk and such other employees as the
(1) Execute and administer the policies, decisions, Commission may appoint.
orders and resolutions approved by the Commission;
The Commission may delegate its powers and
(2) Direct and supervise the operations and internal functions or order the implementation or enforcement of
administration of the Commission; its orders, rulings or decisions through the heads of its
(3) Sign appointments of subordinate officials and field offices.
employees made by the Commission and enforce SECTION 12. Qualifications of Heads of Field Offices.
decisions on administrative discipline involving them; — Only members of the Philippine Bar shall be eligible for
(4) Make temporary assignments, rotate and transfer appointment to the position of regional director, assistant
personnel in accordance with the provisions of the civil regional director, provincial election supervisor and
service law; election registrar. However, if there are no members of
the Philippine Bar available for appointment as election
(5) Submit an annual budget to the Commission for its registrar, except in cities and capital towns, graduates of
approval; duly recognized schools of law, liberal arts, education or
(6) Delegate his authority, in whole or in part, to other business administration who possess the appropriate civil
officials of the Commission, in accordance with the rules service eligibility may be appointed to said position.
and regulations of the Commission; and SECTION 13. Changes in the Composition,
(7) Perform such other duties as may be authorized by Distribution of Assignment of Field Offices. — The
the Commission. Commission may make changes in the composition,
distribution and assignment of field offices, as well as its
SECTION 8. Executive Director; Powers and Duties. —
personnel, whenever the exigencies of the service and
The Executive Director of the Commission shall:
the interest of free, orderly, honest, peaceful and credible
(1) Advise and assist the Chairman in the formulation election so require: Provided, That such changes shall be
and implementation of the objectives, policies, plans and effective and enforceable only for the duration of the
programs of the Commission; election period concerned and shall not affect the tenure
(2) Serve as the principal assistant of the Chairman in of office of the incumbents of positions affected and shall
the overall supervision of the administrative business of not constitute a demotion, either in rank or salary, nor
the Commission; result in a change of status; and Provided, further, That
there shall be no changes in the composition, distribution
(3) Oversee all the operational activities of the or assignment within thirty (30) days before election,
Commission; except for cause and after due notice and hearing, and
that in no case shall a regional or assistant regional



director be assigned to a region, or a provincial election SECTION 5. Compensation. — The Chairman and the
supervisor to a province, or a city municipal election Members of the Commission on Human Rights shall
registrar to a city or municipality, where he and/or his receive the same salary as the Chairman and Members,
spouse are related to any candidate within the fourth civil respectively, of the Constitutional Commissions, which
degree of consanguinity or affinity as the case may be. shall not be decreased during their term of office.
SECTION 6. Annual Appropriations. — The approved
annual appropriations of the Commission on Human
TITLE II Other Bodies Rights shall be automatically and regularly released.
SUBTITLE A Commission on Human Rights SUBTITLE B Office of the Ombudsman

SECTION 1. Composition and Qualification. — The SECTION 1. Composition. — (1) The Office of the
Commission on Human Rights shall be composed of a Ombudsman shall be headed by the Ombudsman to be
Chairman and four (4) Members who must be known as the Tanodbayan, who shall be assisted by one
natural-born citizens of the Philippines and, at the time of overall Deputy and at least by one Deputy each for Luzon,
their appointment, at least thirty-five years of age, and Visayas and Mindanao. A separate Deputy for the military
must not have been candidates for any elective position establishment may likewise be appointed.
in the elections immediately preceding their
appointment. However, a majority thereof shall be (2) It shall have such other officials and employees, to
members of the Philippine Bar. be appointed by the Ombudsman according to the Civil
Service Law.
SECTION 2. Powers and Functions. — The
Commission on Human Rights shall: SECTION 2. Powers and Functions. — The Office of
the Ombudsman shall:
(1) Investigate, on its own or on complaint by any party,
all forms of human rights violations involving civil and (1) Investigate on its own, or on complaint by any
political rights; person, any act or omission of any public official,
employee, office or agency, when such act or omission
(2) Adopt its operational guidelines and rules of appears to be illegal, unjust, improper, or inefficient;
procedure, and cite for contempt violations thereof in
accordance with the Rules of Court; (2) Direct, upon complaint or at its own instance, any
public official or employee of the Government, or any
(3) Provide appropriate legal measures for the subdivision, agency or instrumentality thereof, as well as
protection of human rights of all persons within the of any government-owned or controlled corporation with
Philippines, as well as Filipinos residing abroad, and original charter, to perform and expedite any act or duty
provide for preventive measures and legal aid services to required by law, or to stop, prevent, and correct any abuse
the under-privileged whose human rights have been or impropriety in the performance of duties;
violated or need protection;
(3) Direct the officer concerned to take appropriate
(4) Exercise visitorial powers over jails, prisons, or action against a public official or employee at fault, and
detention facilities; recommend his removal, suspension, demotion, fine,
(5) Establish a continuing program of research, censure, or prosecution, and ensure compliance
education and information to enhance respect for the therewith;
primacy of human rights; (4) Direct the officer concerned, in any appropriate
(6) Recommend to the Congress effective measures to case, and subject to such limitations as may be provided
promote human rights and to provide for compensation by law, to furnish it with copies of documents relating to
to victims of violations of human rights, or their families; contracts or transactions entered into by his office
involving the disbursement or use of public funds or
(7) Monitor the Philippine Government's compliance
properties, and report any irregularity to the Commission
with international treaty obligations on human rights;
on Audit for appropriate action;
(8) Grant immunity from prosecution to any person
(5) Request any government agency for assistance and
whose testimony or whose possession of documents or
information necessary in the discharge of its
other evidence is necessary or convenient to determine
responsibilities, and to examine, if necessary, pertinent
the truth in any investigation conducted by it or under its
records and documents;
authority;
(6) Publicize matters covered by its investigation when
(9) Request the assistance of any department, bureau,
circumstances so warrant and with due prudence;
office, or agency in the performance of its functions;
(7) Determine the causes of inefficiency; red tape,
(10) Appoint its officers and employees in accordance
mismanagement, fraud, and corruption in the
with law; and
Government and make recommendations for their
(11) Perform such other duties and functions as may be elimination and the observance of high standards of
provided by law. ethics and efficiency;
SECTION 3. Inhibitions Against Commissioners. — (8) Promulgate its rules of procedure and exercise such
The Chairman and the Members of the Commission on other powers or perform such functions or duties as may
Human Rights shall not, during their tenure, hold any be provided by law.
other office or employment. Neither shall they engage in
SECTION 3. Action and Complaints. — The
the practice of any profession or in the active
Ombudsman and his Deputies, as protectors of the
management or control of any business which in any way
people, shall act promptly on complaints filed in any form
will be affected by the functions of their office, nor shall
or manner against public officials or employees of the
they be financially interested, directly or indirectly, in any
Government, or any subdivision, agency or
contract with, or in any franchise or privilege granted by
instrumentality thereof, including government-owned or
the government, any of its subdivisions, agencies, or
controlled corporations, and shall, in appropriate cases,
instrumentalities, including government-owned or
notify the complainants of the action taken and the result
controlled corporations or their subsidiaries.
thereof.
SECTION 4. Term of Office. — The Chairman and the
SECTION 4. Fiscal Autonomy. — The Office of the
Members of the Commission on Human Rights shall be
Ombudsman shall enjoy fiscal autonomy. Its approved
appointed by the President for a term of seven years
annual appropriations shall be automatically and
without reappointment. Appointment to any vacancy
regularly released.
shall be only for the unexpired term of the predecessor.


organizations and the monitoring and evaluation of plan
SUBTITLE C The National Economic and Development implementation.
Authority SECTION 4. Composition of the Authority. — The
Authority shall be composed of two separate and distinct
CHAPTER 1 General Provisions entities: the Board and the Secretariat.
SECTION 1. Declaration of Policy. — The State shall

ensure that all socio-economic programs and activities of CHAPTER 2 NEDA Board
the government shall be programmed within the context SECTION 5. Composition of the NEDA Board. — The
of well-formulated and consistent long, medium, and NEDA Board shall be composed of the following:
short-term development plans and policies to promote

both the growth of the economy and the equitable
distribution of the benefits of such growth to the The President — Chairman
members of society. To this end, it is recognized that the
formulation of the required socio-economic development Director-General of the NEDA — Vice-Chairman
policies and plans is a vital process that calls for the Secretariat
participation of the various government agencies and
private sector institutions and individuals concerned, Executive Secretary — Member
both on national, regional, and local levels. This process of
Secretary of Finance — Member
policy and plan formulation, however, needs to be
coordinated closely by a central government agency to Secretary of Trade & Industry — Member
ensure consistency of these plans and policies and
optimal use of the nation's scarce resources. Secretary of Agriculture — Member
SECTION 2. National Economic and Development Secretary of Environment & Natural — Member
Authority. — The National Economic and Development Resources
Authority shall serve as an independent planning agency
of the government. Secretary of Public Works and — Member
SECTION 3. Powers and Functions of the Authority. — Highways
The powers and functions of the Authority are vested in
the NEDA Board. Secretary of Budget and — Member
Management
The Authority shall primarily be responsible for
formulating continuing, coordinated and fully integrated Secretary of Labor & Employment — Member
social and economic policies, plans and programs, on the
basis of the following: Secretary of Local Government — Member
(1) The State aims to achieve objectives of growth
coupled with equity; The President may, however, revise the membership
(2) Development leading to the attainment of the of the NEDA Board whenever the same is deemed
above mentioned goals is a multi-faceted process that necessary for the effective performance of the Board's
calls for the coordination and integration of policies, functions through an administrative or memorandum
plans, programs and projects of all sectors of society; order.
(3) In the formulation of basic policies, plans, programs SECTION 6. Meetings. — The NEDA Board shall meet
and projects, there shall be maximum participation by at least once a month or as frequently as is necessary to
and consultation with concerned private sector groups, discharge its responsibilities as called for by the President.
community organizations and beneficiaries and local When the President is unable to attend a meeting, the
government units in order to ensure that priority needs Director-General of the NEDA may preside as Chairman,
are incorporated into such policies, plans, programs and in the absence of any Presidential preference.
projects; The President however continues to have the power to
(4) National plans shall be in fact the sum of nationally designate from among the members of the NEDA Board
and regionally identified targets and strategies and the Chairman that can appropriately represent the
locally formulated approaches to perceived local needs President, to preside over specific meetings.
and priorities, carried out within the framework of SECTION 7. National Economic Development
national strategies; Authority Inter-agency Committees. — To assist the
(5) Major socio-economic policies, plans, programs and NEDA Board in the performance of its functions, there are
projects of different government agencies must be hereby created the following committees which shall
properly coordinated with the Authority at both the hereafter be under the direct control of the NEDA Board
national and regional levels prior to their adoption, in and shall submit all their recommendations to the
order to ensure their consistency with established President for approval on matters involving their
national priorities and coordination with other policies, respective concerns. The Chairmen of these committees
plans, programs and projects of the government; and shall be designated by the President. The NEDA Board
shall likewise determine where the technical staff of the
(6) The linkage between development planning,
said committees shall be based.
programming and budgeting shall be of the highest
priority in planning and budgeting activities. (1) Development Budget Coordination Committee
(DBCC) — The DBCC, to be composed of the
The Authority, after due consultation with the private
Director-General of the National Economic Development
sector, community organizations and beneficiaries, local
Authority Secretariat, the Executive Secretary and the
government units and appropriate public agencies, shall
Secretaries of Finance and of Budget and Management,
be responsible for studying, reviewing, formulating and
shall have the following functions:
recommending continuing, coordinated and fully
integrated economic and development policies, plans (a) Recommend for Presidential approval the level of
and programs, including the formulation of annual and the annual government expenditure program and the
medium-term public investment programs, ceiling of government spending for economic and social
programming official development assistance in the form development, national defense, general government and
of grants and concessional loans from foreign debt service;
governments and multilateral agencies and


(b) Recommend to the President the proper allocation (a) Advise the President and the NEDA Board on Tariff
of expenditures for each development activity between and related matters, and on the effects on the country of
current operating expenditures and capital outlay; and various international developments;
(c) Recommend to the President the amount set to be (b) Coordinate agency positions and recommend
allocated for capital outlay under each development national positions for international economic
activity for the various capital or infrastructure projects. negotiations; and
(2) Investment Coordination Committee (ICC) — The (c) Recommend to the President a continuous
ICC to be composed of the Director-General of the rationalization program for the country's tariff structure.
National Economic Development Authority Secretariat,
the Executive Secretary, the Secretaries of Finance, CHAPTER 3 NEDA Secretariat
Agriculture, Trade and Industry and of Budget and
Management and the Governor of the Central Bank shall SECTION 8. The NEDA Secretariat. — The Secretariat
have the following functions: of NEDA shall have the following functions:
(a) Evaluate the fiscal, monetary and balance of (1) Serve as the research and technical support arm of
payments implications of major national projects and the NEDA Board;
recommend to the President the timetable for the (2) Provide through its various organizational units,
implementation of these projects on a regular basis; and technical staff support and assistance, including the
(b) Recommend to the President a domestic and conduct of studies and development of policy measures
foreign borrowing program updated each year; and and other recommendations, on the various aspects of
subsequently submit to the President a status of the the substantive functions of development planning and
fiscal, monetary and balance of payments implications of policy formulation, and coordination, evaluation and
major national projects. monitoring of plan implementation;
(3) Committee on Social Development (SDC) — The (3) Serve as the Secretariat of the NEDA Board; and
SDC to be composed of the Director-General of the (4) Perform such other functions as may be assigned
National Economic Development Authority Secretariat, to it by the NEDA Board to achieve its goals and
the Executive Secretary, and the Secretaries of Education, objectives.
Culture and Sports, Labor and Employment, Health, Local
Government, Agrarian Reform, Agriculture and Social SECTION 9. Structural Organization. — The NEDA
Welfare and Development shall have the following Secretariat shall be composed of the Director-General,
functions: three (3) Deputy Directors-General, five (5) Assistant
Directors-General, the National Development Office, the
(a) Advise the President and the NEDA Board on Regional Development Office, the Central Support Office
matters concerning social development, including and the Regional Offices.
education, manpower, health and nutrition, population
and family planning, housing, human settlements and SECTION 10. Director-General. — The Director-General
the delivery of other social services; shall head the Secretariat and shall likewise serve as
Vice-Chairman of the NEDA Board. He shall be appointed
(b) Coordinate the activities of government agencies by the President and shall carry the rank and title of
concerned with social development; and Secretary of Socio-Economic Planning and shall be a
(c) Recommend to the President government policies, member of the Cabinet.
programs and projects on social development consistent As Chief Executive Officer, he shall exercise general
with national development objectives and priorities. supervision and control over its technical and
(4) Committee on Infrastructure (INFRACOM) — the administrative personnel.
INFRACOM to be composed of the Director-General of SECTION 11. Deputy Directors-General. — The
the National Economic Development Authority Director-General shall be assisted by three (3) Deputy
Secretariat, the Executive Secretary, and the Secretaries Directors-General to be appointed by the President, one
of Public Works and Highways, Transportation and to be responsible for the National Development Office,
Communications, Finance, and Budget and Management one, for the Regional Development Office and one, for the
shall have the following functions: Central Support Office.
(a) Advise the President and the NEDA Board on SECTION 12. Assistant Directors-General. — The
matters concerning infrastructure development Director-General shall also be assisted by five (5) Assistant
including highways, airports, seaports and shore Directors-General to be appointed by the President, who
protection; railways; power generation, transmission and shall be assigned to assist the Deputy Directors-General
distribution; telecommunications; irrigation, flood control in their tasks of coordinating and supervising their
and drainage; water supply; national buildings for respective Offices.
government offices; hospitals, sanitation and related
buildings; state colleges and universities, elementary and SECTION 13. National Development Office. — The
secondary school buildings; and other public works; National Development Office shall provide technical staff
support as may be required by the NEDA Board in
(b) Coordinate the activities of agencies, including coordinating the formulation of national and sectoral
government-owned or controlled corporations concerned policies, plans and programs; monitor macro-economic
with infrastructure development; and and sectoral performances; prepare the necessary
(c) Recommend to the President government policies, economic reports; conduct economic and development
programs and projects concerning infrastructure studies on macro-level plans and policies; and perform
development consistent with national development such other appropriate planning tasks as may be
objectives and priorities. assigned by the Director-General.
(5) Committee on Tariff and Related Matters (TRM) — It shall be composed of the following:
The TRM to be composed of the Director-General of the (1) National Planning and Policy Staff;
National Economic Development Authority Secretariat,
the Executive Secretary, the Secretaries of Trade and (2) Agriculture Staff;
Industry, Foreign Affairs, Agriculture, Environment and (3) Trade, Industry and Utilities Staff;
Natural Resources and Budget and Management, the
Governor of the Central Bank and the Chairman of the (4) Infrastructure Staff;
Tariff Commission shall have the following functions: (5) Social Development Staff; and
(6) Public Investment Staff.


SECTION 14. Regional Development Office. — The
Regional Development Office shall provide technical staff
support as may be required by the implementing BOOK VI National Government Budgeting
agencies in the regions; monitor regional and
inter-regional development policies, plans and programs;
prepare integrated reports on regional planning; conduct CHAPTER 1 General Provisions
studies on regional development policies; and perform SECTION 1. Constitutional Policies on the Budget. —
such other planning tasks as may be assigned by the (1) All appropriations, revenue or tariff bills, bills
Director-General. authorizing increase of the public debt, bills of local
It shall be composed of the following: application, and private bills shall originate exclusively in
the House of Representatives but the Senate may
(1) Regional Development Coordination Staff; propose or concur with amendments.
(2) Project Monitoring Staff; and (2) The Congress may not increase the appropriations
(3) Regional Offices. recommended by the President for the operation of the
Government as specified in the budget. The form,
In each of the administrative regions, there shall be a content and manner of preparation of the budget shall
regional office which shall be headed by a Regional be prescribed by law.
Director who shall report to the Deputy Director-General
for Regional Development Office. The Regional Director (3) No provision or enactment shall be embraced in
shall be appointed by the President. the general appropriations bill unless it relates specifically
to some particular appropriation to which it relates.
SECTION 15. Central Support Office. — The Central
Support Office shall be responsible for providing (4) The procedures in approving appropriations for the
technical assistance and support services to the Congress shall strictly follow the procedure for approving
Secretariat's organizational units in the areas of appropriations for other departments and agencies.
development administration, internal management (5) A special appropriations bill shall specify the
improvement, legal services, development purpose for which it is intended, and shall be supported
information,administrative services, and perform such by funds actually available as certified by the National
other support service tasks as may be assigned by the Treasurer or to be raised by a corresponding revenue
Director-General. proposal therein.
It shall be composed of the following: (6) No law shall be passed authorizing any transfer of
(1) Management Staff; appropriations. However, the President, the President of
the Senate, the Speaker of the House of Representatives,
(2) Legal Staff; the Chief Justice of the Supreme Court and the heads of
(3) Administrative Staff; Constitutional Commissions may, by law, be authorized to
(4) Management Information System Staff; and augment any item in the general appropriations laws for
their respective offices from savings in other items of
(5) Development Information Staff. their respective appropriations.
(7) Discretionary funds appropriated for particular
CHAPTER 4 Attached Agencies official shall be disbursed only for public purposes to be
SECTION 16. Retained Agencies. — The following supported by appropriate vouchers and subject to such
agencies, currently attached to the Authority, shall guidelines as may be prescribed by law.
continue to be so attached for purposes of supervision: (8) If, by the end of any fiscal year, the Congress shall
(1) Philippine Institute for Development Studies; have failed to pass the general appropriations bill for the
ensuing fiscal year, the general appropriations law for the
(2) Philippine National Volunteer Service Coordinating preceding fiscal year shall be deemed reenacted and
Agency; and shall remain in force and effect until the general
(3) Tariff Commission. appropriations bill is passed by the Congress.
The Authority shall arrange for the transfer of the (9) Fiscal autonomy shall be enjoyed by the Judiciary,
functions of the following agencies to the Regional Constitutional Commissions, Office of the Ombudsman,
Development Councils concerned or other agencies as Local Government and Commission on Human Rights.
may be appropriate: SECTION 2. Definition of Terms. — When used in this
(1) Kalinga Special Development Region; Book:
(2) Laguna Lake Development Authority; (1) "Appropriation" refers to an authorization made by
law or other legislative enactment, directing payment out
(3) Leyte Sab-A Basin Development Authority. of government funds under specified conditions or for
The National Council for Integrated Area Development specified purposes.
(NACIAD) and the Central Visayas Regional Projects Office (2) "Allotment" refers to an authorization issued by the
(CVRPO) are hereby transferred to the Authority which Department of the Budget to an agency, which allows it
shall, within one (1) year from the date of effectivity of this to incur obligations for specified amounts contained in a
Code, recommend their transfer to the appropriate legislative appropriation.
department in conjunction with the Department of
Budget and Management. The Authority shall further (3) "Budget" refers to a financial plan required to be
review the functions and activities of all other Integrated prepared pursuant to Section 16(1) , Article VIII of the
Area Development programs and projects and any other Constitution, reflective of national objectives, strategies
programs requiring multi-sectoral and/or and programs.
multi-disciplinary approaches in order to recommend the (4) "Current operating expenditures" refers to
appropriate disposition and supervision of the same. appropriations for the purchase of goods and services for
The Authority shall furthermore review the mandate, current consumption or for benefits expected to
objectives and functions of all development authorities in terminate within the fiscal year.
order to recommend such dispositions or revisions of (5) "Capital outlay" or "capital expenditures" refers to an
their charters, as may be deemed advisable. appropriation for the purchase of goods and services, the
benefits of which extend beyond the fiscal year and
which add to the assets of the Government, including


investments in the capital of government-owned or national government and its agencies and
controlled corporations and their subsidiaries. instrumentalities, local government units and
(6) "Continuing appropriation" refers to an government-owned or controlled corporations. The
appropriation available to support obligations for a national government budget shall be evolved within the
specified purpose or project, even when these obligations framework of the total impact of government activity on
are incurred beyond the budget year. the national economy. The budgets of government
corporations and local governments shall be consistent in
(7) "Expected result" means service, product, or benefit form and timing with that of the national government, to
that will accrue to the public, estimated in terms of facilitate comprehensive evaluation.
performance measures or targets.
SECTION 6. Regional Budgeting. — The budgets of
(8) "Fiscal year" refers to the period beginning with the national government agencies shall take into full and
first day of January and ending with the thirty-first day of explicit consideration the goals, plans and requirements
December of each calendar year. of their respective regional offices, in the interest of full
(9) The "Government" means the National government response to local thinking and initiative. The
Government, including the Executive, the Legislative and budget preparation process shall originate at regional
the Judicial Branches, and the Constitutional and local levels, and shall be consolidated and reviewed
Commissions. by the central offices of the various national agencies. The
regional development strategies and plans, including
(10) "Department and agency" and "department or physical framework and resource-use plans, shall be
agency" include all departments, bureaus, offices, boards, considered in the preparation of the budget.
commissions, courts, tribunals, councils, authorities,
administrations, centers, institutes, state colleges and SECTION 7. Long Term Budgeting. — The annual
universities, and all other establishments and budgets of the national government shall be prepared as
instrumentalities of the National Government as defined an integral part of a long-term budget picture. The
in the preceding paragraph. long-term economic and physical framework plans of
government, multi-year requirements of approved
(11) "Obligation" refers to an amount committed to be programs and projects, organizational and personnel
paid by the Government for any lawful act made by an development strategies, and other commitments entered
authorized officer for and in behalf of the government. into or otherwise assumed by government shall be
(12) "Program" refers to the functions and activities specified in the budget process.
necessary for the performance of a major purpose for SECTION 8. Development Projects. — The
which a government agency is established. development process requires the implementation of
(13) "Project" means a component of a program major development projects of such size as to
covering a homogenous group of activities that results in significantly affect the infrastructure program, debt
the accomplishment of an identifiable output. ceilings, the balance of payments, domestic credit, and
government expenditure levels. The budget process shall
formally consider the timing of major national projects, in
CHAPTER 2 Budget Policy and Approach order to ensure the observance of established fiscal,
SECTION 3. Declaration of Policy. — It is hereby monetary, international payments, and other constraints.
declared the policy of the State to formulate and SECTION 9. Performance and Financial Review. —
implement a National Budget that is an instrument of The analysis of agency operating performance, the
national development, reflective of national objectives, evaluation of performance relative to costs incurred and
strategies and plans. The budget shall be supportive of the review of agency operating systems and procedures
and consistent with the socio-economic development are inherent parts of the budget process. Agencies shall
plan and shall be oriented towards the achievement of therefore design and implement (1) management
explicit objectives and expected results, to ensure that information systems yielding both performance and
funds are utilized and operations are conducted financial information which will adequately monitor and
effectively, economically and efficiently. The national control budget implementation, and (2) improvements in
budget shall be formulated within the context of a operating systems, procedures and practices, so as to
regionalized government structure and of the totality of ensure that the targets approved in budget authorization
revenues and other receipts, expenditures and are in fact attained at minimum cost.
borrowings of all levels of government and of
government-owned or controlled corporations. The SECTION 10. Compensation and Position
budget shall likewise be prepared within the context of Classification. — The size of personnel services
the national long-term plan and of a long-term budget expenditures relative to the total budget and the number
program. of agencies and personnel in government call for an
effective national compensation and position
SECTION 4. Planning and Budgeting Linkage. — The classification policy. The Constitutional principle of a
budget shall be formulated as an instrument for the single compensation scheme for the government and its
attainment of national development goals and as part of instrumentalities is one of the bases of the government
the planning-programming-budgeting continuum. budget process.
Levels of revenue, expenditure and debt shall be
established in relation to macro-economic targets of
growth, employment levels, and price level change, and CHAPTER 3 Budget Preparation
shall be developed consistent with domestic and foreign SECTION 11. Submission of the Budget. — The
debt, domestic credit and balance of payments objectives President shall, in accordance with Section 22(1), article VII
for the budget period. The aggregate magnitudes of the of the Constitution, submit within thirty (30) days from
budget shall be determined in close consultation among the opening of each regular session of the Congress as
the planning and fiscal agencies of government. the basis for the preparation of the General
Budgetary priorities shall be those specified in the Appropriations Act, a national government budget
approved national plans, keeping in mind the capability estimated receipts based on existing and proposed
and performance of the implementing agencies revenue measures, and of estimated expenditures.
concerned. Agency budget proposals shall explicitly state
linkage to approved agency plans. The President shall include in the budget submission
the proposed expenditure level of the Legislative and
SECTION 5. National Resource Budget. — The Judicial Branches and of Constitutional bodies, which
finances of government shall be analyzed and shall have undergone the same process of evaluation and
determined as the aggregate of revenue, expenditure which shall have been subject to the same budgetary
and debt of all units of government, including the


policies and standards applicable to agencies in the amount involved is covered by the ordinary income, or
Executive Branch. unless it is supported by a proposal creating additional
The President may transmit to the Congress from time sources of funds or revenue, including those generated
to time, such proposed supplemental or deficiency from domestic and foreign borrowings, sufficient to cover
appropriations as are, in his judgment, (1) necessary on the same. Likewise, no appropriation for any expenditure,
account of laws enacted after the transmission of the the amount of which is not covered by the estimated
Budget, or (2) otherwise needed in the public interest. income from the existing sources of revenue or available
current surplus, may be proposed, unless it is supported
SECTION 12. Form and Content of the Budget. — The by a proposal creating an additional source of funds
budget proposal of the President shall include current sufficient to cover the same.
operating expenditures and capital outlays. It shall
comprise such funds as may be necessary for the Proposals creating additional sources of funds shall be
operation of the programs, projects and activities of the prepared in the form of revenue bills.
various departments and agencies. The proposed General The provisions of this section shall not be construed as
Appropriations Act and other Appropriations Acts impairing in any way the power of the Congress to enact
necessary to cover the budget proposals shall be revenue and appropriation bills, nor the authority of the
submitted to the Congress to accompany the President's President to propose special revenue and appropriation
budget submission. bills after the submission of the budget.
The budget shall be presented to the Congress in such SECTION 14. Budget Estimates. — Each head of
form and content as may be approved by the President department, office or agency of the National
and may include the following: Government, including the Legislative and Judicial
(1) A budget message setting forth in brief the Branches, and including government owned or
government's budgetary thrusts for the budget year, controlled corporations, shall submit his request for
including their impact on development goals, monetary appropriations to the Department of Budget in
and fiscal objectives, and generally on the implications of accordance with the budget calendar, format, and such
the revenue, expenditure and debt proposals; and rules and regulations as may be issued in
implementation of this Decree.
(2) Summary financial statements setting forth:
The budget estimates of agencies include the
(a) Estimated expenditures and proposed following information:
appropriations necessary for the support of the
Government for the ensuing fiscal year, including those (1) Objectives, functions, activities, programs and
financed from operating revenues and from domestic projects showing the general character and relative
and foreign borrowings; importance of the work to be accomplished or the
services to be rendered, and the principal elements of
(b) Estimated receipts during the ensuing fiscal year cost involved;
under laws existing at the time the budget is transmitted
and under the revenue proposals, if any, forming part of (2) Linkage of the work and financial proposals to
the year's financing program; approved development plans;
(c) Actual appropriations, expenditures, and receipts (3) Estimated current operating expenditures and
during the last completed fiscal year; capital outlays, with comparative data for the preceding
and current budget years;
(d) Estimated expenditures and receipts and actual or
proposed appropriations during the fiscal year in (4) Identification by region, pursuant to policies on the
progress; regionalization of government operations;
(e) Statements of the condition of the National (5) Financial sources, reflecting all revenues, proceeds
Treasury at the end of the last completed fiscal year, the of foreign and domestic borrowings, and other sources,
estimated condition of the Treasury at the end of the particularly those which accrue to the General Fund;
fiscal year in progress and the estimated condition of the (6) Contingent liabilities, including national
Treasury at the end of the ensuing fiscal year, taking into government guarantees of obligations of
account the adoption of financial proposals contained in government-owned or controlled corporations and their
the budget and showing, at the same time, the subsidiaries;
unencumbered and unobligated cash resources; (7) Brief description of the major thrusts and priority
(f) Essential facts regarding the bonded and other programs and projects for the budget year, results
long-term obligations and indebtedness of the expected for each budgetary program and project, the
Government, both domestic and foreign, including nature of work to be performed, estimated costs per unit
identification of recipients of loan proceeds; and of work measurement, including the various objects of
(g) Such other financial statements and data as are expenditure for each project;
deemed necessary or desirable in order to make known (8) Organization charts and staffing patterns
in reasonable detail the financial condition of the indicating the list of existing and proposed positions with
government. corresponding salaries, and proposals for position
SECTION 13. Budget Levels. — The ordinary income of classification and salary changes, duly supported by
government shall be used primarily to provide adequate justification.
appropriations for current operations, except in case of a SECTION 15. Regional Budget. — The Budgets of
national emergency or serious financial stress, the national government agencies shall be prepared taking
existence of which has been duly proclaimed by the into full and careful consideration the opportunities and
President. requirements specific to the various regions of the
The level of aggregate revenue expenditure and debt country. Where they are organized, regional offices shall
shall be jointly recommended to the President by the originate agency budget proposals, in accordance with
Department of Budget and Management, the approved priorities and guidelines.
Department of Finance, the National Economic and Agencies which are not regionalized shall nonetheless
Development Authority and the Central Bank of the estimate the amounts planned to be spent for each
Philippines, acting within the Development Budget region of the country.
Coordination Committee of the National Economic and The Secretary shall identify by region the expenditure
Development Authority. programs of the national government agencies in the
No appropriations for current operations and capital national government budget, and release funds to
outlays of the Government shall be proposed unless the national government agencies in accordance with the


approved regional distribution of expenditures, specifying other taxes and fees as are imposed under revenue law:
the region of destination. provided, that organizations otherwise exempted by law
Departments and agencies shall sub-allot in full and for the payment of such taxes/duties may ask for a
without the imposition of reserves, the approved budget subsidy from the General Fund in the exact amount of
allocation of their various regional offices, except as may taxes/duties due: Provided, further, that a procedure shall
be authorized by the Secretary, in case realignment of be established by the Secretary of Finance and the
expenditures prove to be necessary in the course of Secretary of the Budget, whereby such subsidies shall
budget execution. The Secretary shall issue the rules and automatically be considered as both revenue and
regulations needed to implement the provisions of this expenditure of the General Fund.
section. SECTION 21. Appropriation for Personal Services. —
SECTION 16. Budget Evaluation. — Agency proposals Appropriations for personal services shall be considered
shall be reviewed on the basis of their own merits and not as included in the amount specified for each budgetary
on the basis of a given percentage or peso increase or program and project of each department, bureau, office
decrease from a prior year's budget level, or other similar or agency, and shall not be itemized. The itemization of
rule of thumb that is not based on specific justification. personal services shall be prepared by the Secretary for
Proposed activities, whether new or ongoing, shall be consideration and approval of the President as provided
evaluated using a zero-base approach and on the basis of in Section 23 hereof: Provided, That the itemization of
(1) relationship with the approved development plan, (2) personal services shall be prepared for all agencies of the
agency capability as demonstrated by past performance, Legislative, Executive and Judicial Branches and the
(3) complemental role with related activities of other Constitutional bodies, except as may be otherwise
agencies, and (4) other similar criteria. The realization of approved by the President for positions concerned with
savings in a given budget year and the consequent national security matters.
non-utilization of funds appropriated or released to a SECTION 22. Department Approval of Proposed
given agency shall not be a negative factor in the budget Appropriations. — No legislative proposal which, if
evaluation for a subsequent year. enacted, would authorize subsequent appropriations,
SECTION 17. Foreign-Assisted Projects. — The shall be transmitted to the President by any bureau or
budgetary implications of foreign-assisted projects shall agency, without the prior approval of the Head of the
be explicitly considered at the time of project design and Department concerned or by the Chairman or Chief
financing negotiation. The project study shall specify the Executive Officer of a Cabinet level body which
cash flow requirements of the project, among others, for coordinates the multi-sectoral formulation and
(1) payment of principal and interest, (2) peso component implementation of a particular program of expenditure
of capital costs and project preparation, (3) infrastructure involving one or more departments. No legislative
and support facilities needed to be directly financed by proposal involving the appropriation of funds shall be
government, (4) operating and other expenditures which transmitted to the Congress without the approval of the
will be ultimately required for General Fund support President.
when the project is implemented, and (5) peso
requirements needed as counterpart. The concurrence of CHAPTER 4 Budget Authorization
the Department of Budget and Management shall be
obtained with respect to peso requirements and SECTION 23. Content of the General Appropriations
implication on expenditure ceilings. Act. — The General Appropriations Act shall be presented
in the form of budgetary programs and projects for each
SECTION 18. Coordinating Bodies. — The budgets of agency of the government, with the corresponding
coordinating agencies, councils, task forces, authorities, appropriations for each program and project, including
committees, or other similar bodies shall be limited to statutory provisions of specific agency or general
and used to fund only such planning, coordinating and applicability. The General Appropriations Act shall not
monitoring functions as are assigned to it. Funds for contain any itemization of personal services, which shall
implementation shall be budgeted and released to the be prepared by the Secretary after enactment of the
line implementing agencies concerned: provided, that General Appropriations Act, for consideration and
the budgets of coordinating bodies may include a approval of the President.
lump-sum for purposes related to their assigned
functions, which lump-sum shall be sub-allotted to SECTION 24. Prohibition Against the Increase of
implementing agencies and not used by the agency for Appropriation. — The Congress shall in no case increase
its own operations: provided, further, that funds the appropriation of any project or program of any
budgeted for a given agency falling within the jurisdiction department, bureau, agency or office of the Government
of a coordinating body, may be subject to release upon over the amount submitted by the President in his
approval by the coordinating agency of such release or of budget proposal. In case of any reduction in the proposed
the agency's work program. appropriation for a project or program, a corresponding
reduction shall be made in the total appropriation of the
SECTION 19. Budgetary Requirements of department, office or agency concerned and in the total
Government-Owned or Controlled Corporations. — The of the General Appropriations Bill.
internal operating budgets of government-owned or
controlled corporations and of chartered institutions shall SECTION 25. Prohibition Against Enactment of
be approved by their respective governing boards in Additional Special Provisions. — The Congress shall not
accordance with a budget calendar and format as may be add special provisions in the budget earmarking the use
approved by the President: Provided, that such budgets of appropriations for specific programs or activities nor
shall be subject to review and approval as part of the shall it increase the amounts specified in special
budget process in cases where national government provisions, beyond those proposed by the President.
budgetary support is needed, in terms of (a) capital or SECTION 26. Automatic Appropriations. — All
equity inputs, (b) operating contributions to support expenditures for (1) personnel retirement premiums,
specific activities undertaken by the institution as part of government service insurance, and other similar fixed
its regular functions, and (c) guarantee of the national expenditures, (2) principal and interest on public debt, (3)
government for obligations or contracts entered into by national government guarantees of obligations which are
the corporations: provided, further, that the submission of drawn upon, are automatically appropriated:Provided,
interim financial statements may be required by the that no obligations shall be incurred or payments made
Secretary. from funds thus automatically appropriated except as
SECTION 20. Tax and Duty Exemption. — All units of issued in the form of regular budgetary allotments.
government, including government-owned or controlled SECTION 27. Supplemental Appropriations. — All
corporations, shall pay income taxes, customs duties and appropriation proposals shall be included and considered



in the budget preparation process. After the President the whole authorized appropriation for the department
shall have submitted the Budget, no supplemental or agency, shall be prescribed by the Secretary.
appropriation measure supported from existing revenue (2) In the administration of the allotment system
measures shall be passed by the Congress. However, herein provided, each calendar year shall be divided into
supplemental or deficiency appropriations involving the four quarterly allotment periods beginning, respectively,
creation of new offices, programs or activities may be on the first day of January, April, July and October. In any
enacted if accompanied and supported by new revenue case where the quarterly allotment period is found to be
sources. impractical or otherwise undesirable, the Secretary may
SECTION 28. Reversion of Unexpended Balances of prescribe a different period suited to the circumstances.
Appropriations, Continuing Appropriations. — (3) Request for allotment shall be approved by the
Unexpended balances of appropriations authorized in the Secretary who shall ensure that expenditures are covered
General Appropriation Act shall revert to the by appropriations both as to amount and purpose and
unappropriated surplus of the General Fund at the end of who shall consider the probable needs of the department
the fiscal year and shall not thereafter be available for or agency for the remainder of the fiscal year or period for
expenditure except by subsequent legislative enactment: which the appropriation was made.
Provided, that appropriations for capital outlays shall
remain valid until fully spent or reverted: Provided,further, (4) At the end of every quarter, each department or
that continuing appropriations for current operating agency shall report to the Secretary the current status of
expenditures may be specifically recommended and its appropriations, the cumulative allotments, obligations
approved as such in support of projects whose effective incurred or liquidated, total disbursements, unliquidated
implementation calls for multi-year expenditure obligations and unexpended balances and the result of
commitments: Provided, finally, that the President may expended appropriations.
authorize the use of savings realized by an agency during (5) Releases of funds appropriated for a given agency
a given year to meet non-recurring expenditures in a may be made to its regional offices if dictated by the
subsequent year. need and urgency of regional activities.
The balances of continuing appropriations shall be (6) The Secretary shall have authority to modify or
reviewed as part of the annual budget preparation amend any allotment previously issued. In case he shall
process and the preparation process and the President find at any time that the probable receipts from taxes or
may approve upon recommendation of the Secretary, the other sources of any fund will be less than anticipated
reversion of funds no longer needed in connection with and that as a consequence the amount available for the
the activities funded by said continuing appropriations. remainder of the term of the appropriations or for any
SECTION 29. Loan Proceeds. — Expenditures funded allotment period will be less than the amount estimated
by foreign and domestic borrowings shall be included or allotted therefor, he shall, with the approval of the
within the expenditure program of the agency President and after notice to the department or agency
concerned. Loan proceeds, whether in cash or in kind, concerned, reduce the amount or amounts allotted so as
shall not be used without the corresponding release of to conform to the targeted budgetary goals.
funds through a Special Budget as herein provided. (7) The Secretary shall maintain a control record
SECTION 30. Contingent Liabilities. — Government showing quarterly by funds, accounts, and other suitable
agencies, particularly government-owned or controlled classifications, the amounts appropriated, the estimated
corporations, shall periodically report to the Secretary of revenues, the actual revenues or receipts, the amounts
Finance and the Secretary of Budget on the status of allotted and available for expenditures, the unliquidated
obligations they have entered into and which are the obligations, actual balances on hand, and the
subject of government guarantees. unencumbered balance of the allotments for each
department or agency of the Government.
SECTION 31. Liability for Unauthorized Printing Press
Revisions. — It shall be unlawful for any person to make SECTION 34. Program of Expenditure. — The
any unauthorized revision of any figure, text or provision Secretary of Budget shall recommend to the President
in the General Appropriations Act and in the other the year's program of expenditure for each agency of the
budget documents during or in the process of the government on the basis of authorized appropriations.
printing. Any unauthorized change made either by The approved expenditure program shall constitute the
addition, modification or deletion, shall be null and void. basis for fund release during the fiscal period, subject to
such policies, rules and regulations as may be approved
Persons who, in violation of this section, make any by the President.
unauthorized revision in the budget documents, shall be
criminally liable for falsification of legislative documents SECTION 35. Special Budgets for Lump-Sum
under the Revised Penal Code. When the offender is a Appropriations. — Expenditures from lump-sum
government official or employee, he shall, in addition to appropriations authorized for any purpose or for any
criminal prosecution, be dismissed from the service. department, office or agency in any annual General
Appropriations Act or other Act and from any fund of the
National Government, shall be made in accordance with a
CHAPTER 5 Budget Execution special budget to be approved by the President, which
SECTION 32. Use of Appropriated Funds. — All shall include but shall not be limited to the number of
moneys appropriated for functions, activities, projects each kind of position, the designations, and the annual
and programs shall be available solely for the specific salary proposed for which an appropriation is intended.
purposes for which these are appropriated. This provision shall be applicable to all revolving funds,
receipts which are automatically made available for
SECTION 33. Allotment of Appropriations. — expenditure for certain specific purposes, aids and
Authorized appropriations shall be allotted in accordance donations for carrying out certain activities, or deposits
with the procedure outlined hereunder: made to cover to cost of special services to be rendered to
(1) Appropriations authorized for any Department or private parties. Unless otherwise expressly provided by
agency of the Government may be made available for law, when any Board, head of department, chief of bureau
expenditure when the head for each Department or or office, or any other official, is authorized to appropriate,
agency submits to the Secretary a request for allotment allot, distribute or spend any lump-sum appropriation or
of funds showing the estimated amounts needed for special, bond, trust, and other funds, such authority shall
each function, activity or purpose for which the funds are be subject to the provisions of this section.
to be expended during the applicable allotment period. In case of any lump-sum appropriation for salaries and
The form and the time of submission of the request for wages of temporary and emergency laborers and
allotment showing the proposed quarterly allotments of employees, including contractual personnel, provided in



any General Appropriation Act or other Acts, the liable to the government for the full amount so paid or
expenditure of such appropriation shall be limited to the received.
employment of persons paid by the month, by the day, or SECTION 41. Prohibition Against the Incurrence of
by the hour. Overdraft. — Heads of departments, bureaus, offices and
SECTION 36. Cash Budgets. — An operational cash agencies shall not incur nor authorize the incurrence of
budget shall be implemented to ensure the availability of expenditures or obligations in excess of allotments
cash resources for priority development projects and to released by the Secretary for their respective
establish a sound basis for determining the level, type departments, offices and agencies. Parties responsible for
and timing of public borrowings. The procedure, format, the incurrence of overdrafts shall be held personally liable
accounts, and other details necessary for the execution, therefor.
monitoring and control aspects of the system shall be SECTION 42. Adjustment of Appropriations for
determined jointly by the Secretary of Finance, the Reorganization. — When under authority of law, a
Secretary of the Budget and the Chairman of the function or an activity is transferred or assigned from one
Commission on Audit. agency to another, the balances of appropriations which
SECTION 37. Creation of Appropriation Reserves. — are determined by the head of such department to be
The Secretary may establish reserves against available and necessary to finance or discharge the
appropriations to provide for contingencies and function or activity so transferred or assigned may, with
emergencies which may arise later in the calendar year the approval of the President, be transferred to and be
and which would otherwise require deficiency made available for use by the agency to which said
appropriations. function or activity is transferred or assigned for the
The establishment of appropriation reserves shall not purpose for which said funds were originally available.
necessarily mean that such portion of the appropriation Balances so transferred shall be credited to any
will not be made available for expenditure. Should applicable existing appropriation account or to new
conditions change during the fiscal year justifying the appropriation accounts which are hereby authorized to
use of the reserve, necessary adjustments may be made be established, and shall be merged with any fund
by the Secretary when requested by the department, already in the applicable existing or newly established
office or agency concerned. appropriation account or accounts and thereafter
accounted for as one fund.
SECTION 38. Suspension of Expenditure of
Appropriations. — Except as otherwise provided in the The funding requirement of agencies reorganized in
General Appropriations Act and whenever in his accordance with approved reorganization plans or
judgment the public interest so requires, the President, reorganized pursuant to law enacted after the approval of
upon notice to the head of office concerned, is authorized the General Appropriations Act, are deemed appropriated
to suspend or otherwise stop further expenditure of and shall be available for expenditure as soon as the
funds allotted for any agency, or any other expenditure reorganization plans are approved. The Secretary of
authorized in the General Appropriations Act, except for Budget is hereby authorized to make necessary
personal services appropriations used for permanent adjustments in the appropriations to carry out the
officials and employees. provisions of this section. The department head
concerned, with the approval of the Secretary of Budget,
SECTION 39. Authority to Use Savings in is hereby authorized to make necessary salary
Appropriations to Cover Deficits. — Except as otherwise adjustments resulting from final selection of personnel to
provided in the General Appropriations Act, any savings in fill the positions in the staffing patterns of reorganized
the regular appropriations authorized in the General agencies, to make necessary salary adjustments resulting
Appropriations Act for programs and projects of any from new appointments, promotions or salary increases,
department, office or agency, may, with the approval of subject to the provisions of Presidential Decree No. 985.
the President, be used to cover a deficit in any other item
of the regular appropriations: Provided, that the creation SECTION 43. Liability for Illegal Expenditures. —
of new positions or increase of salaries shall not be Every expenditure or obligation authorized or incurred in
allowed to be funded from budgetary savings except violation of the provisions of this Code or of the general
when specifically authorized by law: Provided, further, and special provisions contained in the annual General or
that whenever authorized positions are transferred from other Appropriations Act shall be void. Every payment
one program or project to another within the same made in violation of said provisions shall be illegal and
department, office or agency, the corresponding every official or employee authorizing or making such
amounts appropriated for personal services are also payment, or taking part therein, and every person
deemed transferred, without, however increasing the receiving such payment shall be jointly and severally
total outlay for personal services of the department, office liable to the Government for the full amount so paid or
or agency concerned. received.
SECTION 40. Certification of Availability of Funds. — Any official or employee of the Government knowingly
No funds shall be disbursed, and no expenditures or incurring any obligation, or authorizing any expenditure
obligations chargeable against any authorized allotment in violation of the provisions herein, or taking part therein,
shall be incurred or authorized in any department, office shall be dismissed from the service, after due notice and
or agency without first securing the certification of its hearing by the duly authorized appointing official. If the
Chief Accountant or head of accounting unit as to the appointing official is other than the President and should
availability of funds and the allotment to which the he fail to remove such official or employee, the President
expenditure or obligation may be properly charged. may exercise the power of removal.
No obligation shall be certified to accounts payable SECTION 44. Accrual of Income to Unappropriated
unless the obligation is founded on a valid claim that is Surplus of the General Fund. — Unless otherwise
properly supported by sufficient evidence and unless specifically provided by law, all income accruing to the
there is proper authority for its incurrence. Any departments, offices and agencies by virtue of the
certification for a non-existent or fictitious obligation provisions of existing laws, orders and regulations shall be
and/or creditor shall be considered void. The certifying deposited in the National Treasury or in the duly
official shall be dismissed from the service, without authorized depository of the Government and shall
prejudice to criminal prosecution under the provisions of accrue to the unappropriated surplus of the General Fund
the Revised Penal Code. Any payment made under such of the Government: Provided, That amounts received in
certification shall be illegal and every official authorizing trust and from the business-type activities of government
or making such payment, or taking part therein or may be separately recorded and be disbursed in
receiving such payment, shall be jointly and severally accordance with such rules and regulations as may be


determined by the Permanent Committee created under exonerated and reinstated by virtue of decisions of
this Act. competent authority;
SECTION 45. Special, Fiduciary and Trust Funds. — (5) Cash awards to deserving officials and employees
Receipts shall be recorded as income of Special, Fiduciary in accordance with civil service law;
or Trust Funds or Funds other than the General Fund, (6) Salary adjustments of officials and employees as a
only when authorized by law and following such rules result of classification action under, and implementation
and regulations as may be issued by a Permanent of, the provisions of the Compensation and Position
Committee consisting of the Secretary of Finance as Classification Act, including positions embraced under
Chairman, and the Secretary of the Budget and the the Career Executive Service;
Chairman, Commission on Audit, as members. The same
Committee shall likewise monitor and evaluate the (7) Peso support to any undertaking that may be
activities and balances of all Funds of the national entered into by the government with international
government other than the General fund and may organizations, including administrative and other
recommend for the consideration and approval of the incidental expenses;
President, the reversion to the General fund of such (8) Covering any deficiency in peso counterpart fund
amounts as are (1) no longer necessary for the attainment commitments for foreign-assisted projects, as may be
of the purposes for which said Funds were established, (2) approved by the President;
needed by the General fund in times of emergency, or (3)
violative of the rules and regulations adopted by the (9) Priority activities that will promote the economic
Committee: Provided, that the conditions originally well-being of the nation, including food production,
agreed upon at the time the funds were received shall be agrarian reform, energy development, disaster relief, and
observed in case of gifts or donations or other payments rehabilitation.
made by private parties for specific purposes. (10) Repair, improvement and renovation of
SECTION 46. Service Fees and Honoraria. — Agencies government buildings and infrastructure and other
are authorized to charge fees, including honoraria and capital assets damaged by natural calamities;
other reasonable allowances as compensation for (11) Expenses in connection with official participation
consultation, seminars or training programs, or technical in trade fairs, civic parades, celebrations, athletic
services rendered to other government agencies or competitions and cultural activities, and payment of
private parties. Such fees or honoraria shall be recorded expenses for the celebration of regular or special official
as income of the government and subject to the usual holidays;
accounting, auditing and other pertinent requirements.
(12) Payment of obligations of the government or any
SECTION 47. Administration of Lump-Sum Funds. — of its departments or agencies as a result of final
The Department of Budget shall administer the judgment of the Courts; and
Lump-Sum Funds appropriated in the General
Appropriations Act, except as otherwise specified therein, (13) Payment of valid prior year's obligations of
including the issuance of Treasury Warrants covering government agencies with any other government office
payments to implementing agencies or other creditors, or agency, including government-owned or controlled
as may be authorized by the President. corporations.
SECTION 48. Cost Reduction. — Each head of a SECTION 50. Appointment of Budget Officers. — No
department, bureau, office or agency shall implement a person shall be appointed as budget officer in any
cost reduction program for his department, bureau, office department, bureau, office or agency unless he meets
or agency for the purpose of reducing cost of operations the qualification and training requirements established
and shall submit to the President reports on the results of by the Budget Commission as prerequisite to
the implementation thereof. The Department of Budget appointment, in addition to other qualification
shall provide technical and other necessary assistance in requirements prescribed by the Civil Service Commission
the design and implementation of cost reduction for the position.
activities. An incentive award not exceeding one month's
salary may be granted to any official or employee whose CHAPTER 6 Budget Accountability
suggestion for cost reduction has been adopted and shall
have actually resulted in cost reduction, payable from the SECTION 51. Evaluation of Agency Performance. —
savings resulting therefrom. The President, through the Secretary shall evaluate on a
continuing basis the quantitative and qualitative
SECTION 49. Authority to Use Savings for Certain measures of agency performance as reflected in the units
Purposes. — Savings in the appropriations provided in of work measurement and other indicators of agency
the General Appropriations Act may be used for the performance, including the standard and actual costs per
settlement of the following obligations incurred during a unit of work.
current fiscal year or previous fiscal years as may be
approved by the Secretary in accordance with rules and SECTION 52. Budget Monitoring and Information
procedures as may be approved by the President: System. — The Secretary of Budget shall determine
accounting and other items of information, financial or
(1) Claims of officials, employees and laborers who died otherwise, needed to monitor budget performance and
or were injured in line of duty, including burial expenses to assess effectiveness of agencies' operations and shall
as authorized under existing law; prescribe the forms, schedule of submission, and other
(2) Commutation of terminal leaves of employees due components of reporting systems, including the
to retirement, resignation or separation from the service maintenance of subsidiary and other records which will
through no fault of their own in accordance with the enable agencies to accomplish and submit said
provisions of existing law, including unpaid claims for information requirements: Provided, that the Commission
commutation of maternity leave of absence; on Audit shall, in coordination with the Secretary of
Budget, issue rules and regulations that may be
(3) Payment of retirement gratuities or separation pay applicable when the reporting requirements affect
of employees separated from the service due to accounting functions of agencies: Provided, further, that
government reorganization; the applicable rules and regulations shall be issued by the
(4) Payment of salaries of employees who have been Commission on Audit within a period of thirty (30) days
suspended or dismissed as a result of administrative or after the Department of Budget and Management
disciplinary action, or separated from the service through prescribes the reporting requirements.
no fault of their own and who have been subsequently SECTION 53. Monitoring of Expenditures. —
Expenditures of national government agencies shall be


recorded so as to identify expenditures as classified into further, That implementing, monitoring and other regular
such categories as may be determined by the and recurring agency activities shall not be contracted
Department of Budget and Management, including but for, except for personnel hired on an individual and
not limited to the following: (1) agency incurring the contractual basis and working as part of the organization,
obligation, (2) program, project and activity, (3) object of or as otherwise may be approved by the President:
expenditure, including personal services, operating and Provided, finally, That the cost of contracted services shall
maintenance expenditures, equipment, and capital not exceed the amount that would otherwise be incurred
outlays, (4) region or locality of use, (5) economic or had the work been performed by regular employees of
functional classification of the expenditure, (6) government, except as may be authorized under this
obligational authority and cash transactions arising from section.
fund releases, and such other classifications as may be SECTION 59. Authority to Receive Additional
necessary for the budget process. The Secretary of Compensation. — Officials and employees who are duly
Budget shall determine the data and information appointed by competent authority to any position in
requirements thus needed and the Commission on Audit another government office or agency in a concurrent
shall formulate the accounting rules and regulations, capacity, may, in the discretion of the President, be
including changes in the Chart of Accounts and the allowed to receive additional compensation in the form of
general or subsidiary accounting records, as may be allowance or honorarium at such rates he shall fix and
necessary to generate the desired data and information. subject to such conditions as he may prescribe. Such
The Chief Accountants of agencies and where necessary, additional compensation shall be paid from the
accountants of regional offices, shall submit the data appropriations of the office or agency benefitting from
needed by the Department of Budget and Management the concurrent service.
in accordance with such rules and regulations as it may
formulate. SECTION 60. Restrictions on Salary Increases. — No
portion of the appropriations provided in the General
SECTION 54. Standard Costs. — The Department of Appropriations Act shall be used for payment of any
Budget and Management shall develop standard costs salary increase or adjustment unless specifically
for duly approved units of work measurement for each authorized by law or appropriate budget circular nor shall
agency's budgetary projects or activities. These standard any appropriation for salaries authorized in the General
costs shall be compared with actual unit costs and Appropriations Act, save as otherwise provided for under
utilized in the evaluation of agency budgetary the Compensation and Position Classification Act, be paid
performance. unless the positions have been classified by the Budget
SECTION 55. Review of Budgetary Programs. — The Commission.
Secretary of Budget shall conduct a continuing review of SECTION 61. Merit Increases. — The budgets of
the budgetary program and project structure of each national government agencies may provide for a
department, office or agency, the result of which shall be lump-sum for merit increases, subject to such terms and
the basis for modifying or amending such structure for conditions as may be approved by the President. Such
incorporation in the President's budget proposals to the lump-sum shall be used to fund salary increases
Congress. approved by the head of agency in recognition of
SECTION 56. Semi-Annual Report on meritorious performance: Provided, That the Civil Service
Accomplishments of Government Agencies. — The Commission and the Department of Budget shall jointly
heads of departments, bureaus, offices or agencies of the issue the rules and regulations governing the granting of
government shall submit a semi-annual report of their such merit increases.
accomplishments, both work and financial results, in SECTION 62. Salary for Substitutionary Service. —
accordance with such content and format as may be When an official or employee is issued a duly approved
prescribed by the Secretary. These reports shall be appointment in a temporary or acting capacity to take
designed and use for the purpose of monitoring the the place and perform the duties of another who is
efficiency and effectiveness with which budgeted funds temporarily absent from his post with pay, savings in the
are being utilized, and generally for verifying the appropriations of the department, bureau or office may
attainment of goals established in the budget process. be used for the payment of his salary or differential,
SECTION 57. Failure to Submit Reports. — Failure on subject to the approval of the Secretary.
the part of agency heads, chief accountants, budget SECTION 63. Additional Compensation for Overtime
officers, cashiers, disbursing officers,administrative and Service. — Officials and employees of the National
personnel officers, and other responsible officers of Government, when required to work overtime after
departments, bureaus, offices and agencies to submit regular working hours during ordinary days, during
trial balances, work and financial plans, special budgets, half-day sessions, or on Saturdays, Sundays and holidays,
reports of operation and income, plans, special budgets, by the heads of departments concerned, to finish work
reports of operation and income, current agency plantilla that must be completed within a specified time, may be
of personnel and such other reports as may be necessary paid overtime compensation from any unexpected
and required by the Department of Budget shall balance of the appropriation for salaries and wages
automatically cause the suspension of payment of their authorized in the General Appropriations Act and under
salaries until they have complied with the requirements such guidelines as may be issued by the President.
of the Department of Budget. No appropriation
authorized in the General Appropriations Act shall be SECTION 64. Compensation of Persons Receiving
made available to pay the salary of any official or Pension. — A person receiving life pension, annuity, or
employee who violates the provisions of this section, in gratuity as a result of service in the national government
addition to any disciplinary action that may be instituted or any local government unit, or from any
against such erring official or employee. government-owned or controlled corporation, who is
reappointed to any position, the appropriation for the
salary of which is provided from funds of the office, shall
CHAPTER 7 Expenditure of Appropriated Funds have the option to receive either the compensation for
SECTION 58. Contracting of Activities. — Agencies the position, or the pension, gratuity or annuity, but in no
may enter into contracts with individuals or case shall he receive both.
organizations, both public and private, subject to SECTION 65. Prohibition of Voluntary Service. —
provisions of law and applicable guidelines approved by Unless otherwise specifically approved by the President,
the President: Provided, that contracts shall be for no person shall be employed or appointed in the
specific services which cannot be provided by the regular government under the guise of voluntary service, with
staff of the agency, shall be for a specific period of time, compensation below the authorized hiring rate for the
and shall have a definite expected output: Provided, position, but with privilege of transportation and/or



representation expenses in any form, or of receiving per mess and shall render such report to the corresponding
diems, allowances, honoraria, subsistence, quarters in Accounting Officer promptly at the end of each month.
cash or in kind, payable from government funds:Provided, SECTION 71. Furnished Quarters. — When the
That the application of this provisions may be waived to position of any official or employee is provided with
authorize voluntary service in the Armed Forces of the "furnished quarters", such official or employee shall be
Philippines or in connection with relief operations. entitled to the use of such government-owned furniture
SECTION 66. Additional Compensation for School and equipment as are necessary for his board and
Faculty Members. — Professors, instructors, teachers, or lodging and those for his family including children below
members of the faculty of government schools, colleges twenty-one years of age.
and universities, when required to teach more than their SECTION 72. Per Diems of Government Officials and
regular teaching loads may be paid additional Employees. — When a government official or employee is
compensation not exceeding seventy-five percentum of authorized to travel on official business outside of his
their basic salary. permanent station, he shall be entitled to per diems to
SECTION 67. Laundry. — At the discretion of the cover his board and lodging in accordance with his
department head concerned, any official or employee of schedule: Provided, That in addition to per diems, the
the national government serving in any hospital, penal official or employee may be entitled to transportation
institution, or other similar institution, who is required to expenses in going to and coming from his destination
wear a uniform during the performance of his duties, may and to a daily allowance while in the field:Provided,
be granted laundry allowance in kind, or which may be further, That officials and employees on travel status
commuted at such rates as may be authorized by the whose expenses for board and lodging are paid directly or
Department of Budget. indirectly by government may not be entitled to receive
SECTION 68. Hazard Pay. — Upon recommendation the per diems and allowances corresponding to such
of the department head concerned and approval of the payments.
Secretary, hazard pay may be allowed to employees who Department secretaries, heads of Constitutional
are actually assigned to danger or strife-torn areas, bodies, undersecretaries and all other positions of
disease-infested places, or in distressed or isolated equivalent rank are authorized the reimbursement of
stations and camps, which expose them to great danger actual expenses supported by receipts, within such limits
of contagion or peril to life. Such hazard pay shall be paid as may be imposed under the provisions of this section.
from savings of the department concerned at such rates, Officials and employees authorized to travel abroad
terms and conditions as the Secretary may prescribe. may be granted clothing allowance: Provided, That no
SECTION 69. Subsistence. — No official or employee of official or employee shall be granted such clothing
the national government shall be given subsistence, the allowance oftener than once every twenty-four (24)
cost of which is payable from any fund, except the months.
following and only when an appropriation therefor is The rates of per diems and other allowances as
specifically provided: authorized in this section shall be determined by the
(1) Marine officers, engineers and crew of government President. The rates may be changed from time to time
vessels, launches, and motorboats, who shall take their upon recommendation of a Travel Rates Committee
meals on the mess when aboard the said vessels, which is hereby created, consisting of the Secretary of
launches, or motorboats; Budget as Chairman and the Secretary of Foreign Affairs,
(2) Lightkeepers and other employees in light stations the Secretary of Tourism and the Chairman, Commission
duly authorized by the head of the department to receive on Audit, or their representatives, as members.
subsistence, who shall be furnished raw canned, or The Committee shall review travel rates and shall
preserved food supplies; recommend to the President for consideration and
(3) Officials and employees who are required to render approval modification in rates and policy when found to
service within the premises of hospitals, penal be warranted by actual domestic or foreign travel costs,
institutions, leper institutions, military installations, and as the case may be.
other similar institutions, for a continuous period that Government-owned or controlled corporations shall
includes meal time, may be allowed full subsistence observe the rates established under this section:
when required to live in said premises to make their Provided, That profit-making corporations may adopt
services available at any and all times; their own scales as may be provided by law. The Travel
(4) Laborers temporarily fielded to isolated or Rates Committee shall issue the necessary rules and
unsettled districts shall be furnished the usual rations or regulations to enforce the provisions of this section.
the equivalent in cash, at the expense of the government. SECTION 73. Additional Conditions for Payment of
In hospitals and leper institutions where there are no Travel Expenses. — When travel is done by water and
mess halls or whenever these are inadequate, personnel subsistence is not included in the transportation cost, the
entitled to subsistence allowance in kind may commute amount actually and necessarily spent for subsistence
such subsistence upon request of the personnel during such travel time shall be paid, and no per diems
concerned subject to the approval of the department shall be allowed in lieu thereof.
head at authorized rates chargeable against the Per diems and travel allowances shall not be granted
appropriation for supplies and materials authorized in the to members of field parties or others for whom
General Appropriations Act. subsistence and allowances in kind are supplied or other
SECTION 70. Subsistence of Crew of Government special provision made to cover travel expenses.
Vessels. — The subsistence allowance for the officers and The travel expenses of a government official or
crew of the coast guard and revenue cutters and employee who is assigned to render a special service to
lighthouse tenders and other large vessels operated by any private person or entity, the expenses for which are
the Government shall be spent for conducting a mess payable by the latter, shall be paid from a deposit which
under the charge and administration of one or more the private party shall be required to make before the
members of the complement in each vessel to be performance of the special service is commenced,
designated by the corresponding head of department, subject to the limitations and requirements herein
and in accordance with regulations to be issued by him. provided for travel expenses payable from government
The person or persons so designated shall keep an funds.
account of the advances of funds received and No official or employee of the Government who
expenditures made therefrom for the operation of the remains temporarily at one station for a period longer
than one (1) month shall be paid per diems in excess of



one (1) month except upon the approval of the head of the locally manufactured article exceed those
department and, in case his temporary stay in any one determined by the Flag Law.
place exceeds three (3) months, payment of per diems in SECTION 79. Availability of Appropriations for Rental
excess of three (3) months shall be made only upon the of Building and Grounds. — Any appropriation
previous approval of the Secretary. authorized in any Act for rental of buildings and grounds
SECTION 74. Transportation of Members of Family of for any department, bureau, office or agency shall be
an Employee Transferred from One Station to Another. available for expenditure only when authorized by the
— Whenever, due to the exigencies of the service and not department head concerned. Such appropriation may
at his own request, an official or employee is transferred also be used for lease-purchase arrangements.
from one station to another, said official or employee and With the concurrence of the Secretary of Budget and
his spouse and children below twenty-one years of age Management and the Secretary of Finance, the head of
shall be entitled to transportation and freight for the department may contract with any government
reasonable and necessary baggage and household financial institution for loans intended for the acquisition
effects, at the expense of the Government, to be paid of land for the construction of an office building for any of
from the appropriation for traveling expenses of the the agencies under the department. Annual amortization
bureau or office concerned. of the loans shall be taken from the appropriation for
SECTION 75. Purchase, Use, Operation and rental authorized under any Act for the department,
Maintenance of Motor Transport Equipment. — No bureau or office concerned.
appropriation for equipment authorized in the General SECTION 80. Misuse of Government Funds and
Appropriations Act shall be used directly or indirectly for Property. — Any public official or employee who shall
the purchase of automobiles, jeeps, jitneys, station apply any government fund or property under his
wagons, motorcycles, trucks, launches, speed-boats, administration or control to any use other than for which
airplanes, helicopters and other types of motor transport such fund or property is appropriated by laws, shall suffer
equipment unless otherwise specifically authorized by the penalty imposed under the appropriate penal laws.
the President.
All departments, bureaus, offices and agencies
authorized to purchase motor transport equipment
including those acquired through donations, gifts or
BOOK VII Administrative Procedure
gratuitous title are likewise authorized to use, operate
and maintain them for purposes of carrying out the CHAPTER 1 General Provisions
official functions and activities of the agency. These
motor vehicles shall be used strictly for official business, SECTION 1. Scope. — This Book shall be applicable to
bear government plates only, and after office hours to be all agencies as defined in the next succeeding section,
kept in garage provided therefor by the office or agency except the Congress, the Judiciary, the Constitutional
to which they belong, except, when in use for official Commissions, military establishments in all matters
business outside office hours. The President, however, relating exclusively to Armed Forces personnel, the Board
may authorize exceptions from these provisions for of Pardons and Parole, and state universities and colleges.
officials of government who work under extended hours SECTION 2. Definitions. — As used in this Book:
or whose activities call for special security arrangements. (1) "Agency" includes any department, bureau, office,
Any violation of the provisions of this section shall subject commission, authority or officer of the National
the erring official or employee to administrative Government authorized by law or executive order to
disciplinary action and he shall be personally liable for any make rules, issue licenses, grant rights or privileges, and
loss or damage caused to the government or third adjudicate cases; research institutions with respect to
persons. licensing functions; government corporations with
The Commission on Audit shall issue rules and respect to functions regulating private right, privileges,
regulations governing the use, operation and occupation or business; and officials in the exercise of
maintenance of government motor transport equipment. disciplinary power as provided by law.
SECTION 76. Limitation of Rental of Motor Vehicles. (2) "Rule" means any agency statement of general
— No appropriations authorized in the General applicability that implements or interprets a law, fixes
Appropriations Act shall be used for renting motor and describes the procedures in, or practice
transport equipment for a continuous period of more requirements of, an agency, including its regulations. The
than fifteen days, except as may be authorized by the term includes memoranda or statements concerning the
Secretary. internal administration or management of an agency not
SECTION 77. Limitation of Purchase of Supplies, affecting the rights of, or procedure available to, the
Materials, and Equipment Spare Parts. — Except as public.
otherwise provided in the General Appropriations Act, the (3) "Rate" means any charge to the public for a service
stock on hand of supplies, materials and equipment spare open to all and upon the same terms, including individual
parts, acquired through ordinary and emergency or joint rates, tolls, classifications, or schedules thereof, as
purchase, shall at no time exceed normal three-month well as commutation, mileage, kilometerage and other
requirements, subject to the pertinent rules and special rates which shall be imposed by law or regulation
regulations issued by competent authority: Provided, That to be observed and followed by any person.
department heads may approve the build-up of stocks on (4) "Rule making" means an agency process for the
hand of critical supplies and materials, in anticipation of formulation, amendment, or repeal of a rule.
cost increases or requirements of a national emergency,
and specifying maximum quantities of individual items, (5) "Contested case" means any proceeding, including
but in no case shall these stocks exceed more than one licensing, in which the legal rights, duties or privileges
year's supply, unless otherwise approved by the President. asserted by specific parties as required by the
Constitution or by law are to be determined after hearing.
SECTION 78. Purchase of Locally Manufactured
Products. — All appropriations for the purchase of (6) "Person" includes an individual, partnership,
equipment, supplies and materials authorized in the corporation, association, public or private organization of
General Appropriations Act shall be available only for any character other than an agency.
locally manufactured equipment; parts, accessories, (7) "Party" includes a person or agency named or
medicines and drugs, supplies and materials, except admitted as a party, or properly seeking and entitled as of
when none is available in the market or when the price of right to be admitted as a party, in any agency proceeding;
but nothing herein shall be construed to prevent an


agency from admitting any person or agency as a party would be unduly cumbersome, expensive or otherwise
for limited purposes. inexpedient, but copies of that rule shall be made
(8) "Decision" means the whole or any part of the final available on application to the agency which adopted it,
disposition, not of an interlocutory character, whether and the bulletin shall contain a notice stating the general
affirmative, negative, or injunctive in form, of an agency in subject matter of the omitted rule and new copies
any matter, including licensing, rate fixing and granting thereof may be obtained.
of rights and privileges. (2) Every rule establishing an offense or defining an act
(9) "Adjudication" means an agency process for the which, pursuant to law is punishable as a crime or subject
formulation of a final order. to a penalty shall in all cases be published in full text.
(10) "License" includes the whole or any part of any SECTION 7. Distribution of Bulletin and Codified
agency permit, certificate, passport, clearance, approval, Rules. — The University of the Philippines Law Center
registration, charter, membership, statutory exemption or shall furnish one (1) free copy each of every issue of the
other form of permission, or regulation of the exercise of a bulletin and of the codified rules or supplements to the
right or privilege. Office of the President, Congress, all appellate courts and
the National Library. The bulletin and the codified rules
(11) "Licensing" includes agency process involving the shall be made available free of charge to such public
grant, renewal, denial, revocation, suspension, annulment, officers or agencies as the Congress may select, and to
withdrawal, limitation, amendment, modification or other persons at a price sufficient to cover publication
conditioning of a license. and mailing or distribution costs.
(12) "Sanction" includes the whole or part of a SECTION 8. Judicial Notice. — The court shall take
prohibition, limitation or other condition affecting the judicial notice of the certified copy of each rule duly filed
liberty of any person; the withholding of relief; the or as published in the bulletin or the codified rules.
imposition of penalty or fine; the destruction, taking,
seizure or withholding of property; the assessment of SECTION 9. Public Participation. — (1) If not otherwise
damages, reimbursement, restitution, compensation, required by law, an agency shall, as far as practicable,
cost, charges or fees; the revocation or suspension of publish or circulate notices of proposed rules and afford
license; or the taking of other compulsory or restrictive interested parties the opportunity to submit their views
action. prior to the adoption of any rule.
(13) "Relief" includes the whole or part of any grant of (2) In the fixing of rates, no rule or final order shall be
money, assistance, license, authority, privilege, exemption, valid unless the proposed rates shall have been published
exception, or remedy; recognition of any claim, right, in a newspaper of general circulation at least two (2)
immunity, privilege, exemption or exception; or taking of weeks before the first hearing thereon.
any action upon the application or petition of any person. (3) In case of opposition, the rules on contested cases
(14) "Agency proceeding" means any agency process shall be observed.
with respect to rule-making, adjudication and licensing.
(15) "Agency action" includes the whole or part of every CHAPTER 3 Adjudication
agency rule, order, license, sanction, relief or its equivalent SECTION 10. Compromise and Arbitration. — To
or denial thereof. expedite administrative proceedings involving conflicting
rights or claims and obviate expensive litigations, every
CHAPTER 2 Rules and Regulations agency shall, in the public interest, encourage amicable
settlement, compromise and arbitration.
SECTION 3. Filing. — (1) Every agency shall file with the
University of the Philippines Law Center three (3) certified SECTION 11. Notice and Hearing in Contested Cases.
copies of every rule adopted by it. Rules in force on the — (1) In any contested case all parties shall be entitled to
date of effectivity of this Code which are not filed within notice and hearing. The notice shall be served at least five
three (3) months from that date shall not thereafter be (5) days before the date of the hearing and shall state the
the basis of any sanction against any party or persons. date, time and place of the hearing.
(2) The records officer of the agency, or his equivalent (2) The parties shall be given opportunity to present
functionary, shall carry out the requirements of this evidence and argument on all issues. If not precluded by
section under pain of disciplinary action. law, informal disposition may be made of any contested
case by stipulation, agreed settlement or default.
(3) A permanent register of all rules shall be kept by
the issuing agency and shall be open to public inspection. (3) The agency shall keep an official record of its
proceedings.
SECTION 4. Effectivity. — In addition to other
rule-making requirements provided by law not SECTION 12. Rules of Evidence. — In a contested case:
inconsistent with this Book, each rule shall become (1) The agency may admit and give probative value to
effective fifteen (15) days from the date of filing as above evidence commonly accepted by reasonably prudent
provided unless a different date is fixed by law, or men in the conduct of their affairs.
specified in the rule in cases of imminent danger to (2) Documentary evidence may be received in the
public health, safety and welfare, the existence of which form of copies or excerpts, if the original is not readily
must be expressed in a statement accompanying the available. Upon request, the parties shall be given
rule. The agency shall take appropriate measures to make opportunity to compare the copy with the original. If the
emergency rules known to persons who may be affected original is in the official custody of a public officer, a
by them. certified copy thereof may be accepted.
SECTION 5. Publication and Recording. — The (3) Every party shall have the right to cross-examine
University of the Philippines Law Center shall: witnesses presented against him and to submit rebuttal
(1) Publish a quarterly bulletin setting forth the text of evidence.
rules filed with it during the preceding quarter; and (4) The agency may take notice of judicially cognizable
(2) Keep an up-to-date codification of all rules thus facts and of generally cognizable technical or scientific
published and remaining in effect, together with a facts within its specialized knowledge. The parties shall
complete index and appropriate tables. be notified and afforded an opportunity to contest the
SECTION 6. Omission of Some Rules. — (1) The facts so noticed.
University of the Philippines Law Center may omit from SECTION 13. Subpoena. — In any contested case, the
the bulletin or the codification any rule if its publication agency shall have the power to require the attendance of


witnesses or the production of books, papers, documents appeal, as it may deem just, considering the nature and
and other pertinent data, upon request of any party circumstances of the case.
before or during the hearing upon showing of general SECTION 22. Action on Appeal. — The appellate
relevance. Unless otherwise provided by law, the agency agency shall review the records of the proceedings and
may, in case of disobedience, invoke the aid of the may, on its own initiative or upon motion, receive
Regional Trial Court within whose jurisdiction the additional evidence.
contested case being heard falls. The Court may punish
contumacy or refusal as contempt. SECTION 23. Finality of Decision of Appellate Agency.
— In any contested case, the decision of the appellate
SECTION 14. Decision. — Every decision rendered by agency shall become final and executory fifteen (15) days
the agency in a contested case shall be in writing and after the receipt by the parties of a copy thereof.
shall state clearly and distinctly the facts and the law on
which it is based. The agency shall decide each case SECTION 24. Hearing Officers. — (1) Each agency shall
within thirty (30) days following its submission. The have such number of qualified and competent members
parties shall be notified of the decision personally or by of the base as hearing officers as may be necessary for
registered mail addressed to their counsel of record, if the hearing and adjudication of contested cases.
any, or to them. (2) No hearing officer shall engage in the performance
SECTION 15. Finality of Order. — The decision of the of prosecuting functions in any contested case or any
agency shall become final and executory fifteen (15) days factually related case.
after the receipt of a copy thereof by the party adversely SECTION 25. Judicial Review. — (1) Agency decisions
affected unless within that period an administrative shall be subject to judicial review in accordance with this
appeal or judicial review, if proper, has been perfected. chapter and applicable laws.
One motion for reconsideration may be filed, which shall
suspend the running of the said period. (2) Any party aggrieved or adversely affected by an
agency decision may seek judicial review.
SECTION 16. Publication and Compilation of
Decisions. — (1) Every agency shall publish and make (3) The action for judicial review may be brought
available for public inspection all decisions or final orders against the agency, or its officers, and all indispensable
in the adjudication of contested cases. and necessary parties as defined in the Rules of Court.
(2) It shall be the duty of the records officer of the (4) Appeal from an agency decision shall be perfected
agency or his equivalent functionary to prepare a register by filing with the agency within fifteen (15) days from
or compilation of those decisions or final orders for use by receipt of a copy thereof a notice of appeal, and with the
the public. reviewing court a petition for review of the order. Copies
of the petition shall be served upon the agency and all
SECTION 17. Licensing Procedure. — (1) When the parties of record. The petition shall contain a concise
grant, renewal, denial or cancellation of a license is statement of the issues involved and the grounds relied
required to be preceded by notice and hearing, the upon for the review, and shall be accompanied with a
provisions concerning contested cases shall apply insofar true copy of the order appealed from, together with
as practicable. copies of such material portions of the records as are
(2) Except in cases of willful violation of pertinent laws, referred to therein and other supporting papers. The
rules and regulations or when public security, health, or petition shall be under oath and shall show, by stating the
safety require otherwise, no license may be withdrawn, specific material dates, that it was filed within the period
suspended, revoked or annulled without notice and fixed in this chapter.
hearing. (5) The petition for review shall be perfected within
SECTION 18. Non-expiration of License. — Where the fifteen (15) days from receipt of the final administrative
licensee has made timely and sufficient application for decision. One (1) motion for reconsideration may be
the renewal of a license with reference to any activity of a allowed. If the motion is denied, the movant shall perfect
continuing nature, the existing license shall not expire his appeal during the remaining period for appeal
until the application shall have been finally determined reckoned from receipt of the resolution of denial. If the
by the agency. decision is reversed on reconsideration, the appellant
shall have fifteen (15) days from receipt of the resolution
to perfect his appeal.
CHAPTER 4 Administrative Appeal in Contested Cases
(6) The review proceeding shall be filed in the court
SECTION 19. Appeal. — Unless otherwise provided by specified by statute or, in the absence thereof, in any
law or executive order, an appeal from a final decision of court of competent jurisdiction in accordance with the
the agency may be taken to the Department head. provisions on venue of the Rules of Court.
SECTION 20. Perfection of Administrative Appeals. — (7) Review shall be made on the basis of the record
(1) Administrative appeals under this Chapter shall be taken as a whole. The findings of fact of the agency when
perfected within fifteen (15) days after receipt of a copy of supported by substantial evidence shall be final except
the decision complained of by the party adversely when specifically provided otherwise by law.
affected, by filing with the agency which adjudicated the
case a notice of appeal, serving copies thereof upon the SECTION 26. Transmittal of Record. — Within fifteen
prevailing party and the appellate agency, and paying the (15) days from the service of the petition for review, the
required fees. agency shall transmit to the court the original or a
certified copy of the entire records of the proceeding
(2) If a motion for reconsideration is denied, the under review. The record to be transmitted may be
movant shall have the right to perfect his appeal during abridged by agreement of all parties to the proceedings.
the remainder of the period for appeal, reckoned from The court may require or permit subsequent correction or
receipt of the resolution of denial. If the decision is additions to the record.
reversed on reconsideration, the aggrieved party shall
have fifteen (15) days from receipt of the resolution of Final Provisions
reversal within which to perfect his appeal. SECTION 27. Repealing Clause. — All laws, decrees,
(3) The agency shall, upon perfection of the appeal, orders, rules and regulations, or portions thereof,
transmit the records of the case to the appellate agency. inconsistent with this Code are hereby repealed or
modified accordingly.
SECTION 21. Effect of Appeal. — The appeal shall stay
the decision appealed from unless otherwise provided by SECTION 28. Separability Clause. — In the event that
law, or the appellate agency directs execution pending any of the provisions of this Code is declared


unconstitutional, the validity of the other provisions shall (h) Commissioner refers to either of the two other
not be affected by such declaration. members of the Commission.
SECTION 29. Effectivity. — This Code shall take effect (i) Department includes any of the executive
two years after its publication in the Official Gazette. (as departments or entities having the category of a
amended by Republic Act No. 6682, [November 25, department including the judiciary and the other
1988]) constitutional commissions and bodies.
DONE in the City of Manila, this 25th day of July, in the (j) Eligible refers to a person who obtains a passing
year of Our Lord, Nineteen Hundred and Eighty-Seven. grade in a civil service examination given by the
Published in the Official Gazette, Vol. 83 No. 31, Commission or with its assistance or coordination or is
3528-138 Supp., on August 3, 1987. conferred any civil service eligibility and whose name is
entered in the register of eligibles.

(k) Examination refers to a civil service examination
conducted by the Commission or its offices or by other
Omnibus Rules Implementing Book V of departments or agencies with the assistance of or in
Executive Order No. 292 and Other coordination with the Commission, and those it may
delegate to departments and agencies or those that may
Pertinent Civil Service Laws have been delegated by law.
(l) Form refers to those prescribed by the
Commission.
June 1995
(m) Non-career service is composed of positions
Preface expressly declared by law to be in the non-career service;
The Omnibus Rules Implementing Book V of or those whose entrance in the service is characterized by
Executive Order 292 presents in a comprehensive, (1) entrance on bases other than those of the usual tests
consolidated and updated form all operating procedures of merit and fitness utilized for the career service; and (2)
in the bureaucracy's personnel management and tenure which is limited to a period specified by law, or
administration systems. Previously, these were scattered which is coterminous with that of the appointing
in various executive orders and administrative issuances authority or subject to his pleasure, or which is limited to
from several offices within the government structure. the duration of a particular project from which purpose
With the standard operating procedures updated employment was made.
and consolidated between two covers a big step has been (n) Officers and employees include all officials and
made towards attaining our ultimate goal: a smoothly employees in the civil service.
functioning; well-motivated and competent public (o) Position refers to a set of duties and
service. responsibilities assigned by competent authority to be
Pursuant to the provision of Section 12 (2), Chapter 3, performed by an individual on either full time or
Book V of Executive Order No. 292, otherwise known as part-time basis.
the "Administrative Code of 1987", made effective on (p) The following terms used in Rule XVI shall be
November 23, 1989, and Resolution No. 91-1631 dated construed as follows:
December 27, 1991 the following Rules are hereby
adopted and prescribed in order to carry out the 1. Leave of absence is generally defined as a right
provisions of said Code and other pertinent civil service granted to officials and employees not to report for work
laws. with or without pay as may be provided by law and as the
rules prescribe in Rule XVI hereof.
2. Commutation of leave credits refers to conversion
RULE I Coverage and Definition of Terms of unused leave credits to their corresponding money
SECTION 1. Except as otherwise provided, these Rules value.
shall apply to all officers and employees both in the 3. Cumulation of leave credits refers to incremental
career and non-career service. acquisition of unused leave credits by an official or
SECTION 2. The terms hereunder shall be construed employee.
as follows: 4. Immediate family refers to the spouse, children,
(a) Agency means any bureau, office, commission, parents, unmarried brothers and sisters and any relative
administration, board, committee, institute, corporation living under the same roof and dependent upon the
with original charter, or any other unit of the national employee for support.
government as well as provincial, city or municipal 5. Sick leave refers to leave of absence granted only
government. on account of sickness or disability on the part of the
(b) Appointing officer is the person or body employee concerned or any member of his immediate
authorized by law to make appointments in the civil family.
service. 6. Vacation leave refers to leave of absence granted to
(c) Career service is composed of positions officials and employees for personal reasons, the approval
appointment to which prior qualification in an of which is contingent upon the necessities of the service.
appropriate examination is required. 7. Monetization refers to payment in advance under
(d) Class includes all positions in the government prescribed limits and subject to specified terms and
service that are sufficiently similar as to duties and conditions of the money value of leave credits of an
responsibilities and require similar qualifications that can employee upon his request without actually going on
be given the same title and salary and for all leave.
administrative and compensation purposes, be treated 8. Pregnancy refers to the period between
alike. conception and delivery or birth of a child. For purposes
(e) Chairman refers to the Chairman of the Civil of maternity leave, miscarriage is within the period of
Service Commission. pregnancy.
(f) Code refers to Executive Order No. 292. 9. Maternity leave refers to leave of absence granted
to female government employees legally entitled thereto
(g) Commission refers to the Civil Service in addition to vacation and sick leave. The primary intent
Commission. or purpose of granting maternity leave is to extend


working mothers some measures of financial help and to not precluded from prescribing any internal screening
provide her a period of rest and recuperation in procedure for purposes of promotion.
connection with her pregnancy. For the purpose of these Rules, a Division Chief shall
10. Paternity leave refers to the privilege granted to a refer to the incumbent of a position in the second level of
married male employee allowing him not to report for the career civil service, who has the responsibility for
work for seven (7) days while continuing to earn the overseeing the work of an organizational unit charged
compensation therefor, on the condition that his with a major and specialized activity.
legitimate spouse has delivered a child or suffered a SECTION 3. Admission to any examination for
miscarriage, for purposes of enabling him to effectively entrance into the career service shall be limited to
lend care and support to his wife before, during and after citizens of the Philippines who are at least 18 years of age
childbirth as the case may be and assist in caring for his at the time of application: Provided, That the Commission
new-born child. may, in the interest of the service and considering other
11. Vacation Service Credits refers to the leave credits relevant factors and circumstances, fix a different age
earned by public school teachers for services rendered limit for admission to a particular examination.
during activities authorized by proper authorities during SECTION 4. All applicants for examination shall
long and Christmas vacation. These credits are used to furnish full information as to their citizenship, age,
offset their absences due to illness or to offset education, physical qualification, and such other
proportional deduction in vacation salary due to information as may be reasonably relevant to their fitness
absences for personal reasons or late appointment. in the service. A thorough medico-physical examination
12. Terminal leave refers to money value of the total and character investigation may, in the discretion of the
accumulated leave credits of an employee based on the Commission, be required of applicants.
highest salary rate received prior to or upon retirement SECTION 5. Properly accomplished application forms
date/voluntary separation. shall be filed with the Commission's Regional/Provincial
13. Special leave privileges refers to leave of absence Field Office or any Local Examination Center in the place
which officials and employees may avail of for a where the applicant desires to take the examination
maximum of three (3) days annually over and above the within the period specified in the examination
vacation, sick, maternity and paternity leaves to mark announcement: Provided, That receipt of applications for
personal milestones and/or attend to filial and domestic a particular examination may be closed anytime as soon
responsibilities. as a sufficient number has been received, with due
14. Relocation leave refers to a special leave privilege consideration for the needs of the service.
granted to an official/employee whenever he/she SECTION 6. The Commission shall disapprove
transfers residence. application of an applicant who:
||| (Amendments to Rules I and XVI of the Omnibus (a) lacks any of the minimum qualifications for that
Rules Implementing Book V of the Administrative Code particular examination;
of 1987 (Executive Order 292), CSC Memorandum Circular (b) has been found guilty of crime involving moral
No. 41-98, [December 24, 1998]) turpitude, or of infamous, disgraceful or immoral conduct,
dishonesty, drunkenness or addiction to drugs;
RULE II Recruitment and Examination (c) has been previously found guilty of offenses
relative to or in connection with the conduct of a civil
SECTION 1. Opportunity for government employment service examination; or
in the career service shall be open to qualified Filipino
citizens and positive efforts shall be exerted to attract the (d) has been dismissed from the service for cause;
best qualified to enter the service. Employees shall be Provided that when an applicant for examination is
selected on the basis of fitness to perform the duties and found to have intentionally made any false statement of
assume the responsibilities of the position. any material fact in his application, or practices or
SECTION 2. Classes of positions in the career service, attempts to practice or employs any deception or fraud in
appointment to which requires examinations, shall be connection with his examination, the Commission shall
grouped into three major levels as follows: invalidate such examination and such offense shall be
ground for his removal from the service; Provided, further,
a. The first level shall include clerical, trades, crafts That if the applicant is not in the service, he shall be
and custodial service positions which involve barred from taking any civil service examination and
non-professional or sub-professional work in a entry in government service for a period to be
non-supervisory or supervisory capacity requiring less determined by the Commission: Provided, finally, That the
than four years of collegiate studies; Commission may, in its discretion, cause the filing of
b. The second level shall include professional, appropriate criminal charges pursuant to Section 67 of
technical and scientific positions which involve the Code.
professional, technical or scientific work in a SECTION 7. Except as herein provided, no person shall
non-supervisory or supervisory capacity requiring at least be appointed to, or employed in the career service unless
four years of college work up to Division Chief level; and he shall have passed the appropriate examination for
c. The third level shall cover positions in the Career such position. As far as practicable, career entrance
Executive Service. examination shall be required to test the capacity and
fitness of applicants for positions in the career service.
Except as herein otherwise provided, entrance to the
first two levels shall be through competitive SECTION 8. Examination may be assembled or
examinations, which shall be open to those inside and unassembled and tests may be written, oral, physical,
outside the service who meet the minimum qualification performance or testimonial, or a combination of these
requirements. Entrance to a higher level does not require types. Such examinations may take into consideration
previous qualification in the lower level. Entrance to the experience, education, aptitude, capacity, knowledge,
third level shall be prescribed by the Career Executive character, physical fitness and other factors which, in the
Service Board. judgment of the Commission, determine the relative
fitness of applicants.
Within the same level, no civil service examination
shall be required for promotion to a higher position in SECTION 9. Subject to approval by the proper head of
one or more related occupational groups. A candidate for a Department or agency, the Commission may select
promotion should, however, have previously passed the suitable persons in the government service to act as
examination for that level. Moreover, the head of office is members of examining committees, special examiners or



special investigators. Such persons shall be designated Ten points shall be added to the earned rating of the
examiners or investigators of the Commission and shall following examinees: (a) a veteran who establishes by
perform such duties as the Commission may require, and official records the existence of a service-connected
in the performance of such duties they shall be under its disability; (b) a widow of a veteran; and (c) a wife of a
exclusive control. Members of the examining committees, veteran who himself cannot qualify for appointment in
special examiners or special investigators so designated the civil service due to a service-connected disability.
may be given allowances or per diems for their services, Further, pursuant to EO 790, s. 1982 likewise of the
to be paid out of the funds of, and at a rate to be Office of the President, any one child of a veteran in cases
determined by the Commission. where the veteran himself or his wife failed to avail
SECTION 10. All officers of the Civil Service shall himself of the preference rating due to disqualification for
facilitate the holding of civil service examinations. Those appointment or disability, may also avail of an added ten
in custody of public buildings at places where such points to his earned rating.
examinations are held shall, for this purpose, permit and The preference rating in an examination shall be
arrange the use of suitable rooms under their charge and granted by the Commission at any time upon the request
the furnishing and lighting of the same when necessary. of the applicant and upon submission of the documents
SECTION 11. In line with the national policy to facilitate required by the Commission even if not declared in his
the integration of the members of cultural communities application. This preference rating, however, shall not
and accelerate the development of the areas occupied by apply to the Professional Board Examination for Teachers
them, the Commission shall give special civil service (PBET).
examinations to qualify them for appointment in the civil SECTION 5. The results of any particular civil service
service. examination held in a number of places on the same date
SECTION 12. Appeals in connection with examinations shall be released simultaneously. The names of
shall be as follows: examinees who obtained the required passing grades in
(a) Appeal from the disapproval of an application after an examination shall be entered in a register of eligibles.
an applicant has been provisionally admitted to an SECTION 6. The names of those who pass the bar or
examination shall be filed in writing by the applicant with board examinations shall be automatically entered in the
the Commission within ten days from the date of receipt corresponding register of eligibles under Republic Act No.
by him of the notice of such disapproval. Thereafter, no 1080 without need for issuance of certificates. For this
appeal shall be entertained. purpose, the Supreme Court and the Professional
(b) When an applicant is required to submit certain Regulations Commission shall furnish the Commission
papers or to comply with other requirements in with the official lists of successful candidates in each
connection with his application for examination, he shall examination.
submit such papers or comply with such requirements SECTION 7. Eligibility shall also be granted
on or before the date of the examination. Failure of the automatically to honor graduates, subject to the
applicant to comply as provided herein shall disqualify provisions of Presidential Decree No. 907, as amended.
him from taking the examination. SECTION 8. Eligibility resulting from civil service, bar,
(c) Appeal from the rating obtained or request for a and board examinations shall be effective on the date of
rechecking of an objective type of examination shall be the release of the results of the examinations. These
filed in writing by the examinee within a period of 120 eligibilities shall not prescribe.
days from the date of release of the examination
concerned, and after payment of the amount prescribed
by the Commission. Thereafter, no appeal or request for RULE IV Qualification Standards
rechecking shall be entertained.
SECTION 1. To insure that a person appointed in the
career service can satisfactorily perform the duties and
assume the responsibilities of the position to which he is
RULE III Ratings and Eligibilities being appointed, his fitness shall be initially determined
SECTION 1. Examination papers shall be rated by the appointing officer on the basis of the qualification
according to their excellence on a scale of 0% to 100% and standards established for the position.
the subjects of each examination shall be given such For this purpose, qualification standards shall be
relative weights as the Commission may prescribe. The established for all positions in the first and second levels.
passing grade in written examinations, except for
examinations covered by special laws, shall be at least SECTION 2. A qualification standard is a statement of
80%. the minimum qualifications for a position which shall
include education, experience, training, civil service
SECTION 2. Subject to the provisions of these Rules, eligibility, and physical characteristics and personality
every examinee who obtains a general rating of 80% or traits required by the job.
over shall be eligible for appointment to those positions
for which the examination was given. SECTION 3. Qualification standards shall be used as
basis for civil service examinations, as guides in
SECTION 3. Eligibility resulting from civil service appointments and other personnel actions, in the
examinations which require less than four years of college adjudication of protested appointments, in determining
studies shall be appropriate for appointment to positions training needs, and as aids in the evaluation of the
in the first level, and that from examinations which personnel work programs of an agency.
require at least four years of college studies shall be
appropriate for positions in the second level. SECTION 4. The Commission shall adopt qualification
standards for service-wide positions in the first and
SECTION 4. Pursuant to Executive Order No. 132, s. second levels and shall review and update, whenever
1948, of the Office of the President, five points shall be necessary, those already established. Each department or
added to the ratings earned by a veteran in a civil service agency shall establish qualification standards for
examination which shall be credited to him for entrance positions unique to the department or agency concerned
to and promotion in the service. For purposes of this Rule, and shall submit the same to the Commission for
a "veteran" shall include any person who has served in the approval. These qualification standards shall be effective
military service of the Armed Forces of the Philippines, in 30 days from approval by the Commission. All employees
the regularly constituted armed forces of World War II or of the department or agency shall be properly notified of
in the non-regularly organized unit in the Philippines this approval, notices of which shall be posted on the
during World War II and whose services are duly bulletin board of the department or agency concerned.
recognized by the Government.


SECTION 5. Whenever necessary, the Commission (2) Clearance from previous/former office or agency
shall provide technical assistance to departments and c. Renewal of temporary, casual or contractual
agencies in the development of their qualification
standards. None required
SECTION 6. Until December 31, 1992, substitution of SECTION 6. The submission of Personal Data Sheet
deficiencies in education, training or experience may be (CS Form 212) and Position Description Form (CS Form
allowed interchangeably with one another, except for 122-D) as supporting documents for every renewal of
positions covered by special laws where minimum appointment of casual/emergency employee/laborer is
qualifications are prescribed. After December 31, 1992, no dispensed with. However, said personnel may submit
such substitution shall be allowed. another Personal Data Sheet if there is any new material
fact or vital information concerning his qualifications.
SECTION 7. It shall be the responsibility of the
departments and agencies to establish, administer and SECTION 7. The Commission shall disapprove the
maintain the qualification standards on a continuing appointment of a person who:
basis as an incentive to career advancement. (a) does not meet the qualifications for the position;
or
RULE V Appointment (b) has been found guilty of a crime involving moral
turpitude, or of infamous, disgraceful conduct or
SECTION 1. All appointments in the career service addiction to narcotics, or dishonesty; or
shall be made only according to merit and fitness to be
determined as far as practicable by competitive (c) has been dismissed from the service for cause,
examinations. unless an executive clemency has been granted; or
As used in these Rules, any action denoting (d) has intentionally made a false statement of any
movement or progress of personnel in the civil service material fact or has practiced or attempted to practice
shall be known as personnel action. Such action shall any deception or fraud in connection with his
include promotion, transfer, reinstatement, appointment; or
reemployment, detail, secondment, reassignment, (e) has been issued such appointment in violation of
demotion and separation. All original appointments and existing Civil Service Law, rules and regulations.
personnel actions shall be in accordance with these Rules
SECTION 8. A vacancy in the career service may be
and with other regulations and standards that may be
filled by promotion, transfer of present employees in the
promulgated by the Commission.
government service, reinstatement, reemployment, or by
SECTION 2. In the selection of personnel for his certification of appropriate civil service eligible.
department or agency, the appointing authority shall be
SECTION 9. An appointment accepted by the
guided by the Civil Service Law and Rules.
appointee cannot be withdrawn or revoked by the
SECTION 3. When two or more applicants meet the appointing authority and shall remain in force and effect
minimum requirements for the position, objective criteria until disapproved by the Commission. However, an
must be set to determine who is the most fit and appointment may be void from the beginning due to
meritorious among all the applicants to ensure that the fraud on the part of the appointee or because it was
exercise of management discretion is not abused. issued in violation of law.
SECTION 4. Except as otherwise provided herein, a SECTION 10. * An Appointment issued in accordance
person who meets all the requirements of the position with pertinent laws and rules shall take effect
including the appropriate civil service eligibility shall be immediately upon its issuance by the appointing
appointed to a position in the first and second levels. authority, and if the appointee has assumed the duties of
However, when the immediate filling of a vacancy the position, he shall be entitled to receive his salary at
becomes necessary, taking into account the public once without awaiting the approval of his appointment
interest, and a person with an appropriate civil service by the Commission. The appointment shall remain
eligibility is not actually and immediately available, a effective until disapproved by the Commission. In no case
person without the appropriate civil service eligibility but shall an appointment take effect earlier than the date of
who meets the other requirements of the position may its issuance.
be appointed. His appointment shall be temporary for a
SECTION 11. An appointment not submitted to the
period of not more than 12 months and he may be
Commission within 30 days from the date of issuance
replaced at any time with one who has an appropriate
which shall be the date appearing on the face of the
civil service eligibility.
appointment, shall be ineffective. The appointing
SECTION 5. * Each appointment shall be prepared in authority shall be liable for the salaries of the appointee
the prescribed form and duly signed by the appointing whose appointment became ineffective. The appointing
authority. authority shall likewise be liable for the payment of the
Each appointment shall be accompanied by the salary of the appointee if the appointment is disapproved
following: because the appointing authority has issued it in violation
of existing laws or rules, making the appointment
(1) Personal Data Sheet (CS Form 212); unlawful.
(2) Job Description Form (CS Form 122-D): SECTION 12. No new appointment shall be required
(3) Certification by the appointing authority or his for an adjustment in salary as a result of increase in pay
duly authorized representative in the agency concerned level which does not involve a change in duties and
to the effect that all requirements have been complied responsibilities. However, a copy of the notice of salary
with, reviewed by him and found to be in order; adjustment shall be submitted to the Commission for
record purposes.
(4) Certified true copy of the decision in the
administrative or criminal case or any official record SECTION 13. Appointment in the career service shall
thereof of the appointee, if any; be permanent or temporary.
(5) Clearance * a. Permanent Status. A permanent appointment
shall be issued to a person who meets all the
a. For original appointment NBI Clearance requirements for the position to which he is being
b. For reinstatement/reemployment appointed/promoted, including the appropriate eligibility
prescribed, in accordance with the provisions of law, rules
(1) NBI clearance
and standards promulgated in pursuance thereof.


An appointment issued by the appointing authority
under a temporary status to a person who meets all the
requirements for the position to which he is being RULE VI Promotion
appointed, including the appropriate eligibility, shall be SECTION 1. Promotion is the advancement of an
disapproved by the Commission for violation of Section 27 employee from one position to another with an increase
(1), Book V of Executive Order No. 292 except when it in duties and responsibilities as authorized by law, and
pertains to certain occupational groups for which prior usually accompanied by an increase in salary.
clearance has been obtained from the Commission.
Promotion may be from one department or agency
b. Temporary Status. In the absence of appropriate to another or from one organizational unit to another in
eligibles in the area willing and able to assume the the same department or agency.
position, as certified by the CSRO Regional Director
SECTION 2. Whenever a position in the first level
concerned, and it becomes necessary in the public
becomes vacant, the employees in the department or
interest to fill a vacancy, a temporary appointment shall
agency who occupy positions deemed to be next-in-rank
be issued to a person who meets all the requirements for
to the vacancy, shall be considered for promotion. In the
the position to which he is being appointed except the
second level, those employees in the government service
appropriate civil service eligibility: Provided, That such
who occupy next-in-rank positions shall be considered for
temporary appointment shall not exceed twelve months,
promotion to the vacancy.
but the appointee may be replaced sooner if a qualified
civil service eligible becomes available. SECTION 3. A next-in-rank position refers to a position
which, by reason of the hierarchical arrangement of
The Commission however, recognizes special cases of
positions in the department or agency or in the
appointments in the career service such as in the field of
government, is determined to be in the nearest degree of
medicine and education where the requirements for
relationship to a higher position as contained in the
permanency is based not only on eligibility. These cases
agency's System of Ranking Positions.
shall be governed by Memorandum Circulars which the
Commission may promulgate from time to time. SECTION 4. An employee who holds a next-in-rank
position who is deemed the most competent and
SECTION 14. An appointment may also be
qualified, possesses an appropriate civil service eligibility,
coterminous which shall be issued to a person whose
and meets the other conditions for promotion may be
entrance and continuity in the service is based on the
promoted to the higher position when it becomes vacant.
trust and confidence of the appointing authority or that
which is subject to his pleasure, or co-existent with his However, the appointing authority may promote an
tenure, or limited by the duration of project or subject to employee who is not next-in-rank but, who possesses
the availability of funds. superior qualifications and competence compared to a
next-in-rank employee who merely meets the minimum
The coterminous status may be further classified into
requirements for the position.
the following:
SECTION 5. The comparative degree of competence
(1) coterminous with the project — when the
and qualification of employees shall be determined by
appointment is co-existent with the duration of a
the extent to which they meet the following
particular project for which purpose employment was
requirements at the time of the appointment:
made or subject to the availability of funds for the same;
(a) Performance — this shall be based on last
(2) coterminous with the appointing authority —
performance rating of the employee. However, no
when appointment is co-existent with the tenure of the
employee shall be considered for promotion unless his
appointing authority or at his pleasure;
last performance rating is at least very satisfactory.
(3) coterminous with the incumbent — when the
(b) Education and Training — these shall include
appointment is co-existent with the appointee, in that
educational background and successful completion of
after the resignation, separation or termination of the
training courses, scholarships, training grants and others.
services of the incumbent the position shall be deemed
Such education and training must be relevant to the
automatically abolished; and
duties of the position to be filled.
(4) coterminous with a specific period —
(c) Experience and Outstanding Accomplishments —
appointment is for a specific period and upon expiration
these shall include occupational history, work experience
thereof, the position is deemed abolished.
and accomplishments worthy of special commendation.
For purposes of coverage or membership with the
(d) Physical Characteristics and Personality Traits —
GSIS, or their right to security of tenure, coterminous
these refer to the physical fitness, attitudes and
appointees, except those who are coterminous with the
personality traits of the individual which must have a
appointing authority, shall be considered permanent.
bearing on the position to be filled.
SECTION 15. In the case of teachers, the Commission
(e) Potential — this takes into account the employee's
recognizes the provisional and substitute status of
capability not only to perform the duties and assume the
appointment as provided for and defined under the
responsibilities of the position to be filled but also those
Magna Carta for Public School Teachers (RA 4670).
of higher and more responsible positions.
SECTION 16. The Civil Service Commission shall
SECTION 6. The appointing authority may promote an
publish a complete list of all existing vacant positions in
employee who far exceeds the requirements of the
the government throughout the country at least once
position compared to one who merely meets the
every quarter including the qualification standards
minimum requirements of the position.
required for each position.
SECTION 7. In cases where the qualifications of
SECTION 17. All vacant positions in the agency
employees are comparatively at par, preference may be
authorized to be filled shall be posted in at least three
given to the employee in the organizational unit where
conspicuous places of the respective offices.
the vacant position is or in the department or agency
SECTION 18. The appointing authority shall not fill, where the vacancy is, in the case of second level positions.
and the Commission shall not act on any appointment
SECTION 8. No other civil service eligibility shall be
unless the same has been posted by the agency
required for promotion to a higher position in the same
concerned and published by the Commission.
level and within the same or functionally related
SECTION 19. All appointments issued by the grouping of positions. Agencies shall not be precluded
appointing authority shall be posted in the agency from prescribing their own internal standards for
concerned for a period of at least one week. purposes of promotion.


SECTION 9. To ensure objectivity in promotion, a payment of salaries for services actually rendered at a rate
Selection/Promotion Board shall be established in every fixed in their promotional appointments.
department or agency which shall be responsible for the SECTION 14. When an employee has a pending
adoption of a formal screening procedure and administrative case, he shall be disqualified for promotion
formulation of criteria for the evaluation of candidates for during the pendency thereof.
promotion.
If he is found guilty, he shall be disqualified for
Reasonable and valid standards and methods of promotion for a period based on the penalty imposed as
evaluating the competence and qualifications of all prescribed by the Commission.
employees competing for a particular position shall be
established and applied fairly and consistently. The For purposes of this Rule, a pending administrative
criteria established for evaluation of qualification of case shall be construed as follows: (1) when the
candidates for promotion must suit the job requirements disciplining authority has already filed a formal charge; or
of the position. (2) in case of a complaint filed by a private person, a
prima facie case is already found to exist by the
The Selection/Promotion Board shall then evaluate disciplining authority.
the qualifications of an employee being considered for
promotion in accordance with the department or agency SECTION 15. Within 15 days from notice of the
Merit Promotion Plan. issuance of an appointment, a next-in-rank employee
who is competent and qualified and who feels aggrieved
The Selection/Promotion Board shall likewise by the promotion of another may file a protest with the
determine en banc the list of employees recommended department or agency head who shall make a decision
for promotion from which the appointing authority may within 30 days from receipt of the protest.
choose the employee to be promoted. In preparing the
list, the Board shall see to it that the qualifications of The employee who is not satisfied with the decision
employees recommended for promotion are of the department or agency head may further appeal
comparatively at par and that they are the best qualified within 15 days from receipt thereof to the Merit Systems
from among the candidates. Protection Board. The Board shall render a decision
within 60 days from the time the protest case is
As soon as the promotional appointment is issued, a submitted for decision. The decision of the Board is final
notice announcing the promotion shall be posted by the except those involving division chiefs or officials of higher
head of the Personnel Division/department/office on the ranks, which may be appealed to the Commission. Those
bulletin board of the department, agency or regional involving positions below division chief may be subject of
offices concerned. review by the Commission.
The Selection/Promotion Board shall maintain SECTION 16. An employee who is still not satisfied
records of deliberations which shall be available for with the decision of the Board may appeal to the
inspection by the Commission or its duly authorized Commission within 15 days from receipt of the decision.
representatives.
The decision of the Commission is final and executory
SECTION 10. In filling supervisory positions the if no petition for reconsideration is filed within 15 days
Selection/Promotion Board shall develop criteria for from receipt thereof.
managership and leadership which shall constitute one
of the instruments for selection of candidates for SECTION 17. In all instances only one petition for
promotion. reconsideration shall be entertained. The petitioner shall
point out errors in the original decision or he shall present
SECTION 11. Each department or agency shall new evidences.
establish a qualification index of all employees. For this
purpose, individual personnel folders shall be kept and SECTION 18. Failure to file a protest, appeal, petition
made available to the Selection/Promotion Board and for reconsideration or petition for review within the
shall be open at all times for the inspection of the prescribed period shall be deemed a waiver of such right
Commission. These folders shall give the following and shall render the subject action/decision final and
information about the employee's record of performance, executory.
occupational history, educational attainment, special SECTION 19. An appointment though contested shall
studies and training, civil service eligibilities and other take effect immediately upon its issuance if the
relevant data. appointee assumes the duties of the position and the
SECTION 12. Each department or agency shall have a appointee is entitled to receive the salary attached to the
Merit Promotion Plan including a System of Ranking position. However, the appointment, together with the
Positions. Newly organized and/or reorganized decision of the department head shall be submitted to
departments or agencies shall develop a Merit Promotion the Commission for appropriate action within 30 days
Plan which shall be submitted to the Commission for from the date of its issuance otherwise the appointment
approval within a year from its organization or becomes ineffective thereafter. Likewise, such an
reorganization. All Merit Promotion Plans shall be appointment shall become ineffective in case the protest
continually updated and any changes or amendments is finally resolved against the protestee, in which case he
shall take effect six months from date of approval by the shall be reverted to his former position.
Commission. All employees shall be informed by the SECTION 20. Notwithstanding the initial approval of
department or agency of the Merit Promotion Plan and an appointment, the same may be recalled on any of the
System of Ranking Positions and amendments thereto, following grounds:
as approved.
(a) non-compliance with the procedures/criteria
The Commission shall provide technical assistance to provided in the agency's Merit Promotion Plan;
the departments and agencies in the preparation of Merit
Promotion Plans and System of Ranking Positions and (b) failure to pass through the agency's
shall monitor their implementation. Selection/Promotion Board;
SECTION 13. All appointments involved in a chain of (c) violation of the existing collective agreement
promotions must be submitted simultaneously for between management and employees relative to
approval by the Commission. The disapproval of the promotion; or
appointment of a person proposed to a higher position (d) violation of other existing civil service law, rules
invalidates the promotion of those in lower positions and and regulations.
automatically restores them to their former positions.
However, the affected persons are entitled to the


employee to his department or agency until the written
consent of the head of department or agency where the
RULE VII Other Personnel Actions employee is employed has been obtained.
SECTION 1. The following constitute personnel SECTION 6. Reinstatement is the reappointment of a
actions: original appointment, appointment through person who has been previously appointed to a position
certification, promotion, transfer, reinstatement, in the career service and who has, through no
reemployment, detail, secondment, demotion and delinquency or misconduct, been separated therefrom or
separation. the restoration of one who has been exonerated of the
SECTION 2. Original appointment refers to initial administrative charges filed against him.
entry into the career service under a permanent status of SECTION 7. Reemployment is the reappointment of a
a person who meets all the requirements of the position person who has been previously appointed to a position
including the civil service eligibility. in the career service but who has been separated as a
(a) All such persons must serve a probationary period result of reduction in force, reorganization and/or
of six months following their original appointment and voluntary resignation.
shall undergo a thorough character investigation. A No elective official shall be eligible for appointment to
probationer may be dropped from the service for any office or position during his tenure of office. A person
unsatisfactory conduct or want of capacity any time who lost in an election shall not be eligible for
before the expiration of the probationary period: appointment or reappointment to any office in the
Provided, That such action is appealable to the government or government-owned or controlled
Commission. corporation within one year following such election.
(b) All original appointments of qualified persons to A person who resigned from the civil service during
positions in the career service shall henceforth be the three-month period before any election, whether
proposed as permanent. It is understood that the first six national or local, to promote the candidacy of another,
months of service will be probationary in nature. shall not be eligible for reappointment during the
However, if no notice of termination or unsatisfactory six-month period following such election.
conduct or want of capacity is given by the appointing
authority to the employee before the expiration of the SECTION 8. A detail is the movement of an employee
six-month probationary period, the appointment from one department or agency to another which is
automatically becomes permanent. temporary in nature, which does not involve a reduction
in rank, status or salary and does not require the issuance
SECTION 3. An appointment through certification to a of another appointment.
position in the civil service, except as herein otherwise
provided, shall be issued to a person who has been The employee detailed receives his salary only from
selected from a list of qualified persons certified by the his mother unit/agency.
Commission from an appropriate register of eligibles, and Detail shall be allowed only for a limited period in the
who meets all the other requirements of the position. case of employees occupying professional, technical and
SECTION 4. Promotions shall be governed by Rule VI scientific position. If the employee believes that there is
hereof. no justification for the detail, he may appeal his case to
the Commission. Pending the appeal, the decision to
SECTION 5. A transfer is a movement from one detail the employee shall be executory unless otherwise
position to another which is of equivalent rank, level or ordered by the Commission.
salary without break in service involving the issuance of
an appointment. SECTION 9. Secondment is a movement of an
employee from one department or agency to another
The transfer may be from one department or agency which is temporary in nature and which may or may not
to another or from one organizational unit to another in require the issuance of an appointment but may either
the same department or agency: Provided, however, That involve reduction or increase in compensation.
any movement from the non-career service to the career
service shall not be considered a transfer. Secondment shall be governed by the following
general guidelines:
Transfer shall not be considered disciplinary when
made in the interest of public service, in which case, the (a) Secondment for a period exceeding one year shall
employee concerned shall be informed of the reasons be subject to approval by the Commission.
therefor. If the employee believes that there is no (b) Secondment to international bodies/organizations
justification for the transfer, he may appeal his case to the recognized by the Philippine government may be
Commission. allowed.
Heads of oversight agencies and their staff are (c) Secondment shall always be covered by a written
prohibited from transferring or being appointed to any agreement between the mother agency and the
position in the department/agency/office/local receiving agency and concurred in by the employee
government unit which his unit is assigned or designated seconded. Such agreement shall be submitted to the
to oversee within one year after the termination of such Commission for records purposes.
assignment/designation.
(d) Payment of salaries of seconded employee shall
The prohibition contemplates only transfer of officials be borne by the receiving agency. In case of a higher
of those offices/units who are in a position to exert compensation covered by a duly issued appointment
pressure or influence on the new or accepting agency but within the Philippine government, the same may be used
not to cover those occupying clerical and skilled positions for the purpose of computing his retirement benefits but
such as clerks and drivers. not for the purpose of commutation of leave credits
An employee who seeks appointment by transfer or earned in the mother agency. In case of a lower
promotion to another office shall first secure permission compensation, the mother agency shall pay the
from the head of the department or agency where he is difference. This rule does not apply in cases of
employed. secondment to international agencies.
The permission to seek transfer to another office shall (e) The seconded employee shall be on leave without
be valid for 30 days from the date it was granted but it pay in his mother agency for the duration of his
may be renewed for another thirty 30 days upon request secondment, and during such period, he may earn leave
of the employee. credits which are commutable immediately thereafter at
and payable by the receiving agency.
A head of department or agency shall not propose or
make an appointment for the transfer or promotion of an



SECTION 10. A reassignment is the movement of an the development of personnel skills, talents and values for
employee from one organizational unit to another in the better public service.
same department or agency which does not involve a SECTION 2. Each department or agency shall prepare
reduction in rank, status or salary and does not require a career and personnel development plan which shall be
the issuance of an appointment. integrated into a national plan by the Commission which
SECTION 11. A demotion is the movement from one shall serve as the basis for all career and personnel
position to another involving the issuance of an development activities in the government. The Career
appointment with diminution in duties, responsibilities, and Personnel Development Plan shall include provisions
status or rank which may or may not involve reduction in on merit promotions, performance evaluation; in-service
salary. training; overseas and local scholarships and training
SECTION 12. Separation is a voluntary or involuntary grants; suggestions, incentive award systems, provisions
termination of employment. for welfare, counseling, recreation and similar services;
and other human resource development interventions
SECTION 13. * Appeals in connection with personnel such as on the job training, counseling, coaching, job
actions shall be governed by the following: rotation, secondment, job swapping and others.
(a) A decision, ruling, order or action of any SECTION 3. The Integrated Human Resource
department or agency, the Merit Systems Protection Planning and Development System. — In preparing a
Board, or CS Regional/Provincial/Field Office Career and Personnel Development Plan, each
(CSRO/PO/FO), may be appealed within 15 days from department or agency shall utilize the Integrated Human
receipt of such decision, ruling, order and in the following Resource Planning and Development System, otherwise
manner: known as IHRPDS as a framework to rationalize all
(1) Decision of CSPO is appealable to CSRO human resource management practices and processes in
each department or agency or local government unit.
(2) Decision of CSFO is appealable to CSRO
Hence, every department or agency shall install and
(3) Decision of department/agency is appealable to maintain an Integrated Human Resource Planning and
MSPB Development System (IHRPDS) and take effort to
(4) Decision of CSRO is appealable to CSC integrate this system and its elements into a
Corporate/Strategic Plan of the agency.
(5) Decision of MSPB is appealable to CSC
The IHRPDS shall be based on up-to-date personnel
(b) The appellant shall furnish a copy of his appeal to data and information system. The Commission shall
the MSPB or the body which decision is being appealed. render technical assistance to departments and agencies
(c) The appeal is deemed filed in case the same is in planning and institutionalizing the IHRPDS.
sent by registered mail, on the date shown by the SECTION 4. Each function in the IHRPDS shall be a
postmark or the envelope which shall be attached to the shared responsibility and accountability among top
record of the case, and in case of personal delivery, on the officials, planning officers, human resource management
date stamped by the Civil Service Commission. staff, supervisors and employee representatives in each
(d) An appeal even seasonably filed shall not stay the department or agency.
action, order, decision or ruling of the MSPB or CSC The head of department or agency shall implement
Regional/Provincial/Field Office, as the case may be, on all the programs therein and provide support in
appeal except otherwise ordered by the CSC. accordance with the policies, rules, guidelines and
When the appeal cannot be judiciously decided on standards promulgated by the Commission.
the bases of available records, the Commission may SECTION 5. The performance appraisal or evaluation
require the head of the Department or agency system shall be integrated into the IHRPDS as a tool to
concerned, or any party to comment on the appeal. enable employees to improve performance and assess
(e) An appeal shall be dismissed outright on any of their professional growth including determining the
the following grounds: potentials and development needs of individual
(1) The appellant is not a party directly affected or employees. Hence, if performance appraisal indicates
adversely affected by the decision, order, ruling or action development needs, the individuals concerned shall
of MSPB or CSRO/PO/FO; undergo training or other appropriate human resource
development interventions designed to improve their
(2) The appeal does not conform with the required performance and productivity.
form such as when it is a mere telegram or radio
message; SECTION 6. Each department or agency shall have a
human resource development office created or a staff
(3) The appeal is filed beyond the reglementary assigned solely for the purpose of attending to the
period; agency's human resource development functions,
(4) No appeal fee is paid. activities and requirements.
The CSC shall decide the merits of the appeal within (a) It shall have a training staff which shall be
60 days from receipt of the appeal and the complete supported by all supervisors in establishing a continuing
records of the case. program for the development of the agency's personnel.
(b) Personnel who by virtue of their positions or
designations are assigned as members of the training
RULE VIII Career and Personnel Development staff, shall receive technical and consultative assistance
SECTION 1. Every official and employee of the from the provincial, field and regional offices of the Civil
government is an asset or resource to be valued, Service Commission relative to their work and further
developed and utilized in the delivery of basic services to assistance in continuously upgrading their competencies.
the public. Hence, the development and retention of a SECTION 7. In establishing a continuing program for
highly competent and professional workforce in the the development of personnel, each department or
public service shall be the main concern of every agency or local government unit shall:
department or agency.
(a) Prepare a comprehensive annual training and
Every department or agency shall therefore establish development plan based on periodic assessment of
a continuing program for career and personnel organizational needs and skills/knowledges inventory of
development for all agency personnel at all levels, and the workforce taking into consideration the various levels
shall create an environment or work climate conducive to and categories of jobs in the agency and the urgency of


such skills, knowledge and work attitudes required to SECTION 10. The Development Academy of the
deliver effective basic services to the public. Philippines, the National Manpower and Youth Council,
(b) Design, implement and evaluate in-service the National Computer Center, the Department of
training and development programs solely or in Budget and Management, the Commission on Audit, the
coordination with the Commission and/or other Foreign Service Institute, the Statistical Research and
government agencies and institutions. Such programs Training Center, the University of the Philippines Law
shall include the following: Center, the Department of Interior and Local Government
and other agencies mandated by their respective
Induction Program — refers to the program for new charters or enabling act to conduct centralized training
entrants in government to develop their pride, belonging shall conduct continuing training programs for staff
and commitment to public service. specialists from the different agencies. However, in those
Orientation Program — refers to activities and cases where there is sufficient number of participants to
courses designed to inform new employees about warrant training at department or agency or local
agency/government programs, thrusts, and operations as government level, such central staff agencies and
well as on their duties and responsibilities as well as specialized institutes shall render the necessary
benefits. assistance and consultative services.
Reorientation Program — refers to courses designed SECTION 11. To avoid duplication of effort and
to introduce new duties and responsibilities, new policies overlapping of training functions, the following
and programs to employees who have been in the service responsibilities are assigned:
for quite some time. (a) Public and private colleges and universities and
Professional/Technical/Scientific Program — refers to similar institutions shall be encouraged to organize and
substantive programs in specific to carry out continuing programs of executive
professional/technical/scientific areas for enhancement of development;
skills and knowledge of second level personnel in the (b) The Commission, Commission on Audit, the
career service. Department of Budget and Management, and other
Employee Development Program — refers to courses central staff agencies shall conduct centralized training
aimed at maintaining a high level of competence on and assist in the training program of the departments or
basic workplace skills among employees in the first level agencies along their respective functional areas of
in the career service. specialization;
Middle Management Development Program — (c) In coordination with the Commission, the
refers to a set or series of planned human resource Department of Interior and Local Government shall
interventions and training courses designed to provide undertake training programs for all elective officials;
division chiefs and other officials of comparable rank with (d) In coordination with the Commission, each
management and administrative skills and to prepare department or agency, province or city shall establish,
them for greater responsibilities. maintain and promote a systematic plan of action for
Value Development Program — refers to courses personnel training at all levels in accordance with
which are designed to enhance and harness the public standards laid down by the Commission.
service values of participants to be effective government Whenever it deems necessary, the Commission shall
workers. take the initiative in undertaking program for personnel
Pre-retirement Program — refers to courses which development.
are intended to familiarize would-be retirees on the SECTION 12. In accrediting training and development
government retirement plans and benefits as well as programs for purposes of personnel action, accreditation
available business opportunities or other productive shall mean giving due recognition and credit to the
options/pursuits. successful completion of training, development, or
Executive Development Program — refers to education course/program as basis for approval of
activities and experiences, and continuing education appointment, except as otherwise provided in
intended to enhance the managerial skills of government Qualification Standards, qualifying for admission to civil
officials or executives who belong to the third level. service examinations and higher CSC or agency
training/development programs.
(c) Approve the agency's annual human resource
development programme and accredit such courses or Accreditation shall not apply to or include training
programs for purposes of personnel actions in courses which are conducted for purposes of information
accordance with the guidelines set by the Commission. dissemination such as orientation/reorientation programs
or pre-retirement seminars and other courses of similar
(d) Provide other human resource development nature.
opportunities and activities which shall include training
and scholarship grants, both local and foreign. In SECTION 13. Attendance of government personnel in
addition, shall utilize alternative strategies or approaches conventions and conferences may be allowed subject to
for improving job performance such as coaching, the guidelines promulgated by the Commission.
counseling, job rotation, on-the-job training, and others. SECTION 14. A Personnel Development Committee
(e) Ensure that each agency personnel shall have shall be established in each department and agency,
undergone at least one planned human resource both at the national and local governments, including
development intervention during the year. government-owned and controlled corporations with
original charters which shall provide support functions to
(f) Stimulate and encourage employee development management in matters pertaining to selection of
through individual self-development and life-long agency nominees to training, development, and
learning/education activities. scholarship programs in accordance with existing civil
SECTION 8. Each department or agency shall include service policies and standards.
a specific budgetary allocation for human resource SECTION 15. Employees with permanent
development purposes. At least three percent of the appointments shall be given preference in the selection
annual budget shall be set aside for this purpose. and nomination of candidates for training grants both
SECTION 9. The Commission shall be responsible for within the country and abroad.
the coordination and integration of a continuing program Non-permanent employees may subsequently be
of personnel development for all government personnel allowed to attend local or foreign training programs or
at all levels.


scholarship grants provided they fall under any of the the potentials of people in an organization by exposing
following categories: them to the other work functions of the agency.
1. Employees of government agencies, including state The movement of people under the Job Rotation
colleges and universities and government-owned and Program may either be from one office to another within
controlled corporations, directly involved in the the central office, or from one division to another within
undertaking and implementation of foreign-assisted the central or regional office, if any, or from central to
projects in which the agreement entered into between regional/field/provincial offices and vice versa.
such government agencies and the foreign entity, The duration of the job rotation program shall be
includes training/scholarship grants for project staff within the period prescribed by the department/agency
members under the auspices of the lending or assisting head but shall not exceed 12 months.
foreign institution;
The Job Rotation Program shall cover employees who
2. Members of the academic staff of a chartered state have demonstrated professional qualities and leadership
college or university whose appointments are or managerial potential in order to enrich or enlarge their
non-permanent in nature on account of lack of either repertoire of skills and knowledge.
masteral or doctoral degrees as embodied in the charter
of the state college or university, and whose availment of SECTION 22. A fast track program for deserving
scholarship/training grant shall satisfy the deficiency employees shall be established in every department or
thereby qualifying the proposed nominees for permanent agency to provide easy access to training and career
appointments upon completion of the advancement opportunities. It shall support the
training/scholarship grants; or those who lack a specific individual's career plan and the requirements of the
residency requirement, also as embodied in the charter of organization in addition to identifying managerial
the state college or university, whose residency candidates for succession programmes, if any.
requirements shall have been complied with within three SECTION 23. To enable employees and officials to
(3) years after availment of the grant; contribute meaningfully to organizational performance or
3. Employees engaged in highly scientific field critical productivity, heads of agencies shall encourage
to national development where there are only few legitimate and relevant worker participation in
educationally qualified personnel as certified by the problem-solving and decision making and other activities
Department of Science and Technology; and which will enhance quality of worklife and public service.
4. Employees who have been personally invited by a SECTION 24. Each worker has the primary
sponsoring entity; or employees who are proposed for responsibility for his personal and professional
nomination by agencies which have been directly invited development. The CSC and his respective department
by a foreign entity to avail of its training/scholarship and agency shall assist him to make this possible through
grants. creation of a workplace and career service that is
personally satisfying as well as productive, innovative and
SECTION 16. In no case shall female nominees be professional.
discriminated against in the availment of local and/or
scholarship/training grants or any human resource
development opportunity. As such, pregnant women and RULE IX Performance Evaluation
married women with a child or children irrespective of
age shall be considered for nomination/selection in SECTION 1. There shall be established performance
scholarship training grants, both local and foreign. evaluation systems in every department or agency of the
national and local governments, including state
SECTION 17. In consideration of nominee's acceptance
universities and colleges and government-owned and
to local or foreign training/scholarship grant whether in
controlled corporations with original charters.
the academic or non-academic program including
extension, he shall serve his office or any other SECTION 2. The Performance Evaluation System or
government office or instrumentality thereof as the Systems shall be so designed and administered to:
exigencies of the service may require for the specified (a) Continuously foster improvement of employee
period as may be provided under the training contract. performance and efficiency;
SECTION 18. Trainees as grantees shall submit to the (b) Enhance organizational effectiveness and
head of agency a report of his study/training within thirty productivity;
(30) days for local and foreign training/scholarship grant
after his return to duty copy furnished the CSC main (c) Provide an objective performance rating which
office. In addition thereto, they shall also conduct or share shall serve as basis for incentives and rewards, promotion,
vital information and knowledge relative to the course training and development, personnel actions and
attended with others in order that colleagues can benefit administrative sanctions.
from the course/program. SECTION 3. The following minimum requirements
Scholarship grantees shall submit to the head of shall be observed in the development of the Performance
office his official transcript of grades at the close of each Evaluation System:
quarter, term and/or semester. (a) It should provide for the identification of the
SECTION 19. Should the grantee fail to fulfill his outputs as well as the job-related behaviors of the
service requirement due to transfer to a private entity or position/functions and the corresponding performance
resignation, he shall pay back his agency the full amount standards which should be mutually agreed upon
spent for his/her entire training/scholarship grant. between the supervisor and the subordinates.
SECTION 20. The department or agency head shall (b) It should provide mechanisms by which an
provide opportunity for employees to exchange posts or employee shall be currently advised of his progress in
job stations in agencies geographically closest to their accomplishing his assignments.
residence through appropriate programs established by (c) Supervisors should be given opportunity by the
the Commission. System to make comments and recommendations
Participation in the program shall be in accordance regarding employee's strengths and weaknesses which
with existing rules and regulations promulgated by the may be instrumental in furthering his career, or
Commission. identifying constraints that may impede his
development.
SECTION 21. A Job Rotation Program shall be
established in every department/agency whenever (d) Performance evaluation shall be done every six
viable/feasible as a means for developing and enhancing months ending on June 30 and December 31 of every
year. However, if the organizational needs require a



shorter or longer period, the minimum appraisal period his copy of his performance rating. Failure to file an
shall be at least 90 days or three months. No appraisal appeal within the prescribed period shall be deemed a
period shall be longer than one year. waiver of such right.
(e) The system shall provide sanctions against raters
who use it to give undue advantage or disadvantage to
people they rate. RULE X Employee Suggestions and Incentive
(f) The following adjectival ratings shall be adopted:
Awards System
Outstanding — An employee shall be given this SECTION 1. Each department or agency of
rating when he exceeds his target by at least 50%. It government, whether national or local, including bureaus
represents an extraordinary level of achievement and and agencies, state colleges and universities; and
commitment in terms of quality and time, technical skill government-owned and controlled corporations with
and knowledge, ingenuity, creativity and initiative. original charters, shall establish its own Department or
Employees at this performance level should have Agency Employee Suggestions and Incentives Award
demonstrated exceptional job mastery in all major areas System in accordance with these Rules and shall submit
of responsibility. His achievement and contributions to the same to the Commission for approval.
the organization are of marked excellence which even his SECTION 2. The System is designed to encourage
peers recognize through a forced comparison/distribution creativity, innovativeness, efficiency, integrity and
method established by the agency concerned. productivity in the public service by recognizing and
Very Satisfactory — An employee shall be given this rewarding officials and employees, individually or in
rating when he exceeds the expected groups, for their suggestions, inventions, superior
output/performance by at least 25% but falls short of what accomplishments, and other personal efforts which
is considered an outstanding performance. In addition, contribute to the efficiency, economy, or other
his competence and contributions shall be recognized by improvement in government operations, or for other
his peers also through a forced comparison/distribution extraordinary acts or services in the public interest.
method based on the criteria established by the agency SECTION 3. The Systems shall apply to all officers and
concerned. Those screened out in the forced employees in the career or non-career service of the
comparison/distribution for outstanding performers shall national and local governments, including those in the
be included in this category. state universities and colleges, and government-owned
Only employees with Outstanding and Very or controlled corporations with original charters, whether
Satisfactory performance ratings shall be considered for or not they receive compensation, regardless of amount.
promotion. SECTION 4. Under the System, any of the following
Satisfactory — An employee shall be given this rating types of contributions shall be entitled to an award:
when he meets 100% of the standards or ordinary (a) Idea type contribution which shall refer to an idea,
requirements of the duties of the position. Those a suggestion or an invention for improvement to effect
screened out in the forced comparison/distribution economy in operation, to increase production, improve
method for Very Satisfactory performers shall be included working conditions or service, or otherwise benefit the
in this category. government.
Unsatisfactory — An employee shall be given this (b) Performance type contribution which shall refer
rating when his performance is 51% to 99% of the to:
minimum requirements but could stand improvement. It
(1) Performance of an extraordinary act or service in
is expected that in the next rating period, the employee,
the public interest in connection with, or related to, one's
under close supervision, will either improve his
official employment; or
performance for which he shall be given at least a
satisfactory rating, or if not, he shall get another (2) Outstanding community service or heroic acts in
Unsatisfactory rating. Two (2) successive Unsatisfactory the public interest; or
ratings shall be a ground for separation from the service. (3) Sustained work performance for a minimum
Poor — An employee shall be given this rating when period of one year which is over and above the normal
he fails to meet performance requirements or meets 50% position requirement of the individual or group.
or below of the minimum requirements and there is no SECTION 5. Awards under the System shall consist of
evidence to show that he can improve his performance. A honor awards and incentive awards. The head of
rating of Poor shall be a ground for separation from the department or agency may, however, upon
service. recommendation of the Department or Agency
g. As much as possible, the Performance Evaluation Suggestions and Incentive Award Committee created in
System shall contain the following parts: accordance with Section 11 hereof, consider an employee
for both incentive and honor awards.
1. Objectives
SECTION 6. Honor awards shall consist of the
2. Basic Policies
following:
3. Procedures/Mechanics of the System
(a) * Presidential or "Lingkod Bayan" Awards is
4. Mechanics of Rating conferred to an individual for consistent dedicated
SECTION 4. The highest ranking officer in charge of performance exemplifying the best in any of the
personnel management shall be responsible for the profession or occupation resulting in the successful
development and administration of the performance implementation of an idea or performance which is of
evaluation system. significant effect to the public or principally affects the
national interest, security and patrimony.
The Personnel Division of the department or agency
shall be responsible for the safekeeping of all This Lingkod Bayan Award is in the form of gold
performance reports and records of its personnel. It shall (gilded) medallion and plaque containing the citation
periodically submit to the Head of Agency the and signature of the President of the Philippines.
consolidated results of its employee performance (b) * Civil Service Commission or PAGASA Award is
evaluation. conferred to a group of individuals or team who has
SECTION 5. An employee who expresses demonstrated outstanding teamwork and cooperation
dissatisfaction with the rating given him may appeal which resulted in the successful achievement of its goal
through the duly established Grievance Procedure of the and greatly improved/facilitated the delivery of public
Department or Agency within fifteen days after receipt of service, effected economy in operation, improved


working condition or otherwise benefitted the government service. This award shall be in the form of a
government. plaque of appreciation, the design and citation of which
The Pagasa Award is in the form of gold-gilded shall be determined by the office concerned.
medallion and plaque containing the citation and (g) Year-end Benefits or Thirteenth Month Bonus Plus
signature of the Chairman of the Civil Service One Thousand Cash Gift which shall be granted to
Commission. officials and employees in the national and local
(c) The departmental Award or the "Kapwa" Award governments, including state colleges and universities,
which shall be given to an individual or group of and government-owned and controlled corporations in
individuals in recognition of contributions from an idea or recognition of their dedication to government service and
performance resulting in direct benefits to a single in keeping with the spirit of Christmas. The grant of these
department or agency in the government. Nominations year-end benefits shall be governed by the
for this category need not be submitted to the Civil Compensation Circulars issued by the Department of
Service Commission for screening and evaluation. The Budget and Management in accordance with the
Department or Agency Suggestions and Incentive provisions of Republic Act 6686.
Awards Committee shall evaluate the nominations for (h) Monetary Award which shall be granted to an
this category and recommend to the head of the employee whose contribution in terms of suggestions or
department or agency the most qualified awardees. invention or performance of functions results in monetary
This award shall consist of a gold (gilded) medallion savings. When an employee's contribution can not be
and a plaque containing the citation and signature of the quantified in terms of monetary savings, or results in
head of department or agency, or the head of office in combined monetary savings and intangible benefits, the
the case of offices which are not under a department. amount of cash award shall be determined in terms of a
certain percentage of its estimated total value or benefit
(d) Outstanding Public Official/Employee Award or but not to exceed 20%.
"Dangal ng Bayan" Award which shall be granted to
officials and employee in the government who have The foregoing shall not preclude departments and
demonstrated exemplary service and conduct on the agencies in establishing other types of incentive awards
basis of their observance of the eight (8) norms of which shall be incorporated in the Department/Agency
behavior as provided for under Republic Act No. 6713. ESIAS.
Administration of this Award and the procedures of SECTION 8. Officials and employees nominated for
nomination shall be governed by Republic Act No. 6713 any of the honor awards must:
and its Implementing Rules. (a) Have been employed with the nominating agency
SECTION 7. The incentive awards shall consist of, for at least one year at the time of the nomination;
though not limited to, the following: (b) Have been rated at least Very Satisfactory or its
(a) Performance Incentive which shall be given to an equivalent for two appraisal periods immediately
employee who has obtained an outstanding or very preceding the nomination; and
satisfactory rating based on the Agency's Approved (c) Have not been found guilty of any criminal or
Performance Evaluation System for the last two administrative offense involving moral turpitude or does
successive evaluation periods which consist of step not have any pending case against them at the time of
increments in accordance with the provisions of Joint nomination, as defined in these Rules.
CSC-DBM Circular No. 1, s. 1990.
SECTION 9. The procedure of nomination for the
(b) Length of Service Incentive which shall be given to Honor Awards excluding nominations for the
an employee who has rendered at least three years of Outstanding Public Officials and Employees are as
continuous satisfactory service in a particular position follows:
and which shall consist of step increments in accordance
with the provisions of Joint CSC-DBM Circular No. 1, s. (a) The immediate supervisor or any person or
1990. persons or association including those from the private
sector shall make the nomination in writing to the
(c) Productivity Incentive which shall be given to an Suggestions and Incentive Awards Committee (SIAC) in
employee or group of employees who has exceeded their the Department or Agency concerned;
targets or has incurred incremental improvement over
existing targets. (b) The Committee shall screen the nominations and
evaluate the justification contained therein;
(d) Most Courteous Employee Award which is given to
an employee in accordance with the criteria and (c) The Committee shall submit its recommendation
standards established under CSC MC No. 15, s. 1990 which to the head of the department or agency; and
instituted the Courtesy Campaign Program in the Civil (d) The head of department or agency shall submit
Service, known as the "Ang Magalang, Bow!" his nomination or the prescribed form to the Civil Service
(e) Loyalty Award which shall be granted to an Commission.
employee who has completed at least ten (10) years of Nominations for the Outstanding Public
continuous and satisfactory service in the government. Official/Employee or "Dangal ng Bayan" Award may be
This service award shall consist of cash bonus and a lapel submitted by any person or group of persons or
emblem or loyalty pin differentiated as follows: associations directly to the Civil Service Commission or to
any of its regional or provincial or field offices.
10 and 15 years bronze service pin
SECTION 10. The Civil Service Commission shall
20 and 25 years silver service pin prescribe nomination forms for the honor awards. All
30, 35 and 40 gold service pin departments and agencies may secure such form from
the Civil Service Commission or from any of its regional,
The cash bonus shall, upon the recommendation of provincial or field offices.
the Agency SIAC, be not less than P100.00 per year,
chargeable against the Agency's savings, provided SECTION 11. A Suggestions and Incentive Award
however that those who have received the cash award Committee, hereinafter called the Committee, shall be
during their first 10 years shall, upon reaching 15, only created in each department or agency to administer the
receive the cash award for the succeeding 5 years and so System. Members of the Committee shall be designated
on. by the head of such department or agency and shall
include the chief or head of the personnel division/office
(f) Retirement Award which shall be given to a retiree thereat.
who had rendered at least fifteen (15) years of satisfactory


The Committee shall have the following functions:
(a) Prescribe, subject to the approval of the head of RULE XII Complaints and Grievances
Department or Agency, the procedure in evaluating
employee suggestions, inventions or accomplishments. SECTION 1. For purposes of this Rule, the following
terms are defined as follows:
(b) Receive, review and process suggestions and
nominations. (a) Complaint — means an employee's expressed
(written or spoken) feelings of dissatisfaction with some
(c) Recommend the appropriate monetary award to aspects of his working conditions, relationships or status
be granted to the employee for his idea or suggestion. which are outside his control. This does not include those
(d) Recommend to the head of department or involving disciplinary actions which are governed by
agency the employees who shall be nominated for the separate rules.
honor awards or incentive awards or to both awards. (b) Grievance — refers to a complaint in writing which
SECTION 12. The Civil Service Commission shall has, in the first instance and in the employee's opinion,
constitute a Special Committee on Awards composed of been ignored, overridden or dropped without due
three prominent citizens who are not in the government consideration.
service, the Chief Protocol Officer of the Office of the (c) Grievance Procedure — refers to the method of
President, and a member of the Commission, which shall determining and finding the best way to remedy the
screen and evaluate objectively all nominations received specific cause or causes of the complaint or grievance.
by the Commission and shall recommend its choices to
the President. The Committees shall likewise recommend (d) Modes of Settling Employee — Management
to the Chairman of the Civil Service Commission its Disputes:
choices for the "Pagasa" Awards. 1. Conciliation — process whereby a third party
SECTION 13. Officials and employees who are (conciliator) brings the parties together, encourages
conferred the honor awards shall be considered for them to discuss their differences and assists them in
promotion to the next higher position suitable to their developing their own proposed solutions.
qualifications. Records of awards as well as letters of 2. Mediation — process whereby a third party
commendations received shall be kept in employees' (mediator) is more active in assisting the parties reach
personnel folders. acceptable solutions to the problem/s and helps the
SECTION 14. Each department or agency shall set disputing parties develop or come out with an acceptable
aside in its annual budget the necessary appropriations solution. The mediator can even submit his own
to cover whatever necessary expenses will be incurred in proposals for the settlement of disputes.
the granting of both monetary and non-monetary 3. Arbitration — process whereby a third party who
awards. may be an individual arbitrator, aboard of arbitrators or an
SECTION 15. The Commission shall report annually the arbitration court, is empowered to render a decision
results of the Suggestions and Incentive Award Program which disposes of the dispute and is binding on both
together with recommendations to the President. The parties.
head of each department or agency shall submit to the (a) n Voluntary — a method of settling dispute/s by
Commission by the first week of January, a consolidated submitting the "dispute" before an arbitrator or panel of
report on Suggestions and Incentive Award Program of arbitrators chosen by both parties. The voluntary
the department or agency during the preceding year. arbitrators shall render a decision after proper hearing of
the issues. The decision of the arbitrator shall be final and
binding on the contending parties.
RULE XI Employee Relations and Services (b) Compulsory — a method of settling disputes
SECTION 1. Each head of department or agency shall which has become hardened and irreconcilable and
be responsible for the creation of an atmosphere remains unresolved after exhausting all available
conducive to good supervisor-employee relations and the remedies and exploring all avenues for a peaceful
improvement of employee morale. For this purpose, the settlement of the dispute under existing laws and
head of each department or agency shall make provisions procedures. The dispute is thus submitted to a body
for the establishment of units responsible for the established by law (Public Sector Labor Management
maintenance of employee health, welfare, counselling, Council [PSLMC]) which shall render a decision after
recreation and similar activities, including the proper hearing of the issues. The decision of the Council
establishment of employee organization/union. shall be final and binding on the contending parties.
SECTION 2. Each head of department or agency shall SECTION 2. Complaints and grievances may exist
provide a system of informing employees concerning between and among individual employees and
their rights and privileges including the right to Supervisor/Management and between the Management
self-organization and their obligations and conduct and the Recognized Negotiating/Bargaining Unit on any
required of all government officers and employees. and all matters which give rise to employees
SECTION 3. Each head of department or agency shall dissatisfaction.
encourage: SECTION 3. Employees shall have the right to present
(a) Discussion of ideas among officers and employees their complaints and/or grievances to the management
throughout the administrative hierarchy through and have them settled as expeditiously as possible in the
assemblies, congresses, dialogues and other allied forms best interest of the employee concerned,
of discussion, as well as their participation, to the greatest union/association, agency/organization and the
degree practicable, in the development of policies and government as a whole.
other matters affecting them and their work; SECTION 4. Each department and agency shall
(b) Voluntary conduct of employee activities, such as promulgate rules and regulations governing the
athletics, and such others as may fall into the social, expeditious, fair and equitable settlement of employees'
recreational, financial, food production and livelihood complaints and/or grievances in accordance with the
categories which are conducive to employee well-being policies provided by law.
and consistent with the interest of public service. SECTION 5. Each department or agency shall
establish a grievance procedure which shall conform with
the following principles:
(a) An employee/union may, without resorting to
formal grievance procedures, discuss informally any



problem relating to his conditions of employment with SECTION 7. All written proceedings involving
his supervisor. complaints and grievances shall be kept by the Personnel
(b) In presenting a complaint or grievance, the Office of the agency and/or by the union.
employee shall be assured freedom from coercion, SECTION 8. Each head of department or agency shall
discrimination or reprisal and of a speedy and impartial submit a grievance procedure for approval to the
settlement of such complaint or grievance. Commission. Any department or agency may amend its
(c) Complaints and/or grievances shall be resolved at grievance procedure, which shall be submitted to the
the lowest possible level in the agency. Commission. Until disapproved, such amendments shall
be in effect.
(d) Grievance proceedings shall not be bound by
formal legal rules and technicalities. SECTION 9. Each head of department or agency shall
furnish every employee in his office with a copy of its
(e) An employee shall have the right to appeal grievance procedure including any revision thereof and
decisions on grievances to such competent authorities as conduct information dissemination through symposium
provided for in this Rule. or other modes of information drive.
(f) A complaint or grievance shall be considered not SECTION 10. The Commission shall provide
only in relation to its alleged object, but also in relation to consultation assistance to departments or agencies in
the personal situation of the complainant. planning and setting up a grievance machinery, and shall
SECTION 6. The grievance procedure to be from time to time recommend to department or agency
established by both management/employer and heads, methods and practices which may contribute to
employees/Recognized Negotiating Unit shall include the the effectiveness and improvement of such machinery.
following: SECTION 11. The Grievance Committee shall be
(a) Oral discussion — A complaint shall be presented composed of the following:
orally in the first instance to the employee's immediate 1. For complaints/grievances existing between and
supervisor who shall within three (3) days from the date among individual employee and
of presentation inform the employee orally of his decision. supervisor/management.
(b) Grievance in writing — If the employee is not (a) One (1) member of top management or a
satisfied with the decision of the immediate supervisor representative to act as Chairman.
he may submit his grievance in writing through his
immediate supervisor, to the next higher officer or official (b) One (1) higher supervisor except the one being
who shall within five days from the date of receipt of the complained of.
written grievance inform in writing the employee through (c) One (1) member of the rank and file.
the immediate supervisor of his decision. 2. For complaints/grievance existing between the
(c) Appeal to the agency head — If the employee is management and recognized/bargaining unit.
not satisfied with prior decisions relative to his grievance, (a) One (1) member of top management or a
he may submit, through channels, his grievance in representative to act as Chairman.
writing to his department or agency head, who may refer
it to a grievance committee constituted for the purpose. (b) One (1) higher supervisor.
Any party dissatisfied with the decision/resolution of (c) One (1) member of the association.
his case after undergoing the grievance procedure may SECTION 12. Unless appealed, the decision of the
bring the same on appeal to the Merit Systems Protection concerned authorities shall take effect upon receipt of
Board or Public Sector Labor Management Council the decision by all the parties involved.
through the Office for Personnel Relations, as the case
may be.
(d) Processing the grievance — The method of RULE XIII Right to Self-Organization
reviewing and processing the grievance for expeditious Pursuant to the express provision of Section 45, Book
and satisfactory settlement shall be prescribed by the V of the Code, the rules relative to the right to
agency. self-organization shall be governed by the rules and
(e) Composition — Composition of the grievance regulations promulgated by the Public Sector Labor
committee shall be defined both by the Management Council.
employees/Recognized Negotiating Unit and
management/employer.
(f) Form — Each agency shall have standardized
RULE XIV Discipline
forms for submitting grievances and indicating decisions. SECTION 1. No officer or employee in the civil service
Such form shall provide the following information: shall be removed or suspended except for cause as
provided by law and after due process.
(1) Name of the complainant
SECTION 2. Any person may file an administrative
(2) Position Title complaint with the Commission or any of its proper
(3) Designation (if needed) office. Said complaint shall be in writing and under oath,
otherwise, the same shall not be given due course.
(4) Present Section or Division of Assignment
SECTION 3. No action shall be taken on an
(5) Immediate Supervisor anonymous complaint unless there is obvious truth or
(6) Present Department or Unit of Assignment merit to the allegations set forth in the complaint.
(7) Higher Supervisor SECTION 4. The complaint shall be written in clear,
simple and concise language and in a systematic manner
(8) Nature of Grievance (in brief) as to apprise the respondent of the nature of the charge
(9) Settlement Desired against him and to enable him to prepare his defense.
(10) Signature of Employee SECTION 5. The complaint shall contain:
(11) Signature of Association Official/Representative (if (a) the full name and address of the complainant;
applicable) (b) the full name and address of the respondent as
(12) Date of filing from the lowest level in the Agency well as his position and office of employment;
(c) specification of charges; and



(d) a brief statement of relevant and material facts, (c) The maximum of the penalty shall be imposed
accompanied by certified true copies of the documentary where only aggravating and no mitigating circumstances
evidence, if any, and sworn statements covering the are present;
testimony of his witnesses. (d) Where aggravating and mitigating circumstances
SECTION 6. The withdrawal of the complaint does not are present, the minimum of the penalty shall be applied
necessarily discharge the respondent from any where there are more mitigating circumstances present;
administrative liability. Where there is obvious truth or the medium period if the circumstances equally offset
merit to the charges or complaint, the same should be each other; and the maximum where there are more
given due course. aggravating circumstances.
SECTION 7. In meting out punishment, like penalties SECTION 19. The penalty of transfer, or demotion, or
shall be imposed for like offenses and only one penalty fine may be imposed instead of suspension from one
shall be imposed in each case. "Each case" means one month and one day to one year except in case of fine
administrative case which may involve one or more which shall not exceed six months.
charges or counts. SECTION 20. The penalty of fine may be imposed
SECTION 8. The disciplining authority may impose instead of suspension from one day to one month.
the penalty of removal/dismissal from the service, forced SECTION 21. In meritorious cases and upon
resignation with or without prejudice to benefits, recommendation of the Commission, the President may
demotion in rank, suspension for not more than one year commute or remove administrative penalties or
without pay, fine in an amount not exceeding six months disabilities imposed upon officers or employees in
salary, transfer or reprimand. disciplinary cases, subject to such terms and conditions
SECTION 9. The penalty of dismissal shall carry with it as he may impose in the interest of the service.
cancellation of eligibility, forfeiture of leave credits and SECTION 22. Administrative offenses with its
retirement benefits, and the disqualification for corresponding penalties are classified into grave, less
reemployment in the government service. Further, it may grave, and light, depending on the gravity of its nature
be imposed without prejudice to criminal or civil liability. and effects of said acts on the government service.
SECTION 10. The penalty of forced resignation shall The following are grave offenses with corresponding
carry with it disqualification for employment in the penalties:
government service for at least one year. However, it may
or may not contain conditions relative to the forfeiture of (a) Dishonesty
leave credits and retirement benefits, and the 1st Offense — Dismissal
disqualification regarding reemployment in a specific
class of position. (b) Gross neglect of duty
SECTION 11. The penalty of transfer shall carry with it 1st Offense — Dismissal
disqualification for promotion for a period of six months (c) Grave misconduct
from the date respondent reports to the new position or
station. 1st Offense — Dismissal
SECTION 12. The penalty of suspension shall carry (d) Being notoriously undesirable
with it disqualification for promotion corresponding to 1st Offense — Dismissal
the period of suspension. (e) Conviction of a crime involving moral turpitude
SECTION 13. The penalty of demotion shall carry with 1st Offense — Dismissal
it disqualification for promotion for a period of six
months. (f) Falsification of official document
SECTION 14. The penalty of fine shall carry with it 1st Offense — Dismissal
disqualification for promotion for a period twice the (g) Physical or mental incapacity or disability due to
number of days he was fined. vicious habits
SECTION 15. A reprimand whether given by the Civil 1st Offense — Dismissal
Service Commission or the head of department or agency
shall be considered a penalty. However, a warning or an (h) Engaging directly or indirectly in partisan political
admonition shall not be considered a penalty. activities by one holding non-political office
SECTION 16. In the determination of penalties to be 1st Offense — Dismissal
imposed, mitigating and aggravating circumstances may (i) Receiving for personal use of a fee, gift or other
be considered. Nevertheless, in the appreciation thereof, valuable thing in the course of official duties or in
the same must be invoked or pleaded by the proper connection therewith when such fee, gift or other
party, otherwise, the said circumstances shall not be valuable thing is given by any person in the hope of
considered in the determination of the proper penalty to expectation of receiving a favor or better treatment than
be imposed against the respondent concerned. that accorded to other persons or committing acts
SECTION 17. If the respondent is found guilty of two or punishable under the anti-graft laws
more charges or counts, the penalty imposed should be 1st Offense — Dismissal
that corresponding to the most serious charge or count
and the rest may be considered as aggravating (j) Contracting loans of money or other property from
circumstances. persons with whom the office of the employee has
business relations
SECTION 18. The imposition of the penalty shall be
made in accordance with the manner herein below 1st Offense — Dismissal
detailed, provided the penalty attached to the offense is (k) Soliciting or accepting directly or indirectly, any
divisible into minimum, medium, and maximum, to wit: gift, gratuity, favor, entertainment, loan or anything of
(a) The minimum of the penalty shall be imposed monetary value which in the course of his official duties
where only mitigating and no aggravating circumstances or in connection with any operation being regulated by,
are present; or any transaction which may be affected by the
functions of his office. The propriety or impropriety of the
(b) The medium of the penalty shall be imposed foregoing shall be determined by its value, kinship, or
where no mitigating and aggravating circumstances are relationship between giver and receiver and the
present or when both are present they equally offset each motivation. A thing of monetary value is one which is
other; evidently or manifestly excessive by its very nature.



1st Offense — Dismissal 1st Offense — Suspension for six (6) months and one
(l) Disloyalty to the Republic of the Philippines and to (1) day to one (1) year
the Filipino People 2nd Offense — Dismissal
1st Offense — Dismissal (v) Owning, controlling, managing or accepting
(m) Nepotism employment as officer, employee, consultant, counsel,
broker, agent, trustee, or nominee in any private
1st Offense — Dismissal enterprise regulated, supervised or licensed by his office,
(n) Oppression unless expressly allowed by law
1st Offense — Suspension for six (6) months and one 1st Offense — Suspension for six (6) months and one
(1) day to one (1) year (1) day to one (1) year
2nd Offense — Dismissal 2nd Offense — Dismissal
(o) Disgraceful and immoral conduct (w) Engaging in the private practice of his profession
unless authorized by the Constitution, law or regulation,
1st Offense — Suspension for six (6) months and one provided that such practice will not conflict with his
(1) day to one (1) year official functions
2nd Offense — Dismissal 1st Offense — Suspension for six (6) months and one
(p) Inefficiency and incompetence in the (1) day to one (1) year
performance of official duties 2nd Offense — Dismissal
1st Offense — Suspension for six (6) months and one (x) Disclosing or misusing confidential or classified
(1) day to one (1) year information officially known to him by reason of his office
2nd Offense — Dismissal and not made available to the public, to further his
private interests or give undue advantage to anyone or to
(q) Frequent unauthorized absences or tardiness in prejudice the public interest
reporting for duty, loafing or frequent unauthorized
absences from duty during regular office hours 1st Offense — Suspension for six (6) months and one
(1) day to one (1) year
1st Offense — Suspension for six (6) months and one
(1) day to one (1) year 2nd Offense — Dismissal
2nd Offense — Dismissal (y) Obtaining or using any statement filed under the
Code of Conduct and Ethical Standards for Public
An officer or employee in the civil service shall be Officials and Employees for any purpose contrary to
considered habitually absent if he incurs unauthorized morals or public policy or any commercial purpose other
absences exceeding the allowable 2.5 days monthly leave than by news and communications media for
credit under the Leave Law for at least three (3) months in dissemination to the general public
a semester or at least three (3) consecutive months
during the year. 1st Offense — Suspension for six (6) months and one
Any employee shall be considered habitually tardy if
he incurs tardiness, regardless of the number of minutes, 2nd Offense — Dismissal
ten (10) times a month for at least (2) months in a The following are less grave offenses with their
semester or at least two (2) consecutive months during corresponding penalties:
the year. In case of claim of ill-health, heads of
department of agencies are encouraged to verify the (a) Simple Neglect of Duty
validity of such claim and, if not satisfied with the reason 1st offense — Suspension for one (1) month and one (1)
given, should disapprove the application for sick leave. On day to six (6) months
the other hand, cases of employees who absent
themselves from work before approval of the application 2nd offense — Dismissal
should be disapproved outright. (b) Simple Misconduct
In the discretion of the Head of any department, 1st offense — Suspension for one (1) month and one (1)
agency, or office, any government physician may be day to six (6) months
authorized to do a spot check on employees who are 2nd offense — Dismissal
supposed to be on sick leave.
(c) Gross Discourtesy in the Course of Official Duties.
(r) Refusal to perform official duty
1st offense — Suspension for one (1) month and one (1)
1st Offense — Suspension for six (6) months and one day to six (6) months
2nd offense — Dismissal
2nd Offense — Dismissal
(d) Gross Violation of Existing Civil Service Law and
(s) Gross Insubordination Rules of Serious Nature
1st Offense — Suspension for six (6) months and one 1st offense — Suspension for one (1) month and one (1)
(1) day to one (1) year day to six (6) months
2nd Offense — Dismissal 2nd offense — Dismissal
(t) Conduct grossly prejudicial to the best interest of (e) Insubordination
the service
1st Offense — Suspension for six (6) months and one day to six (6) months
2nd Offense — Dismissal
(f) Habitual Drunkenness
(u) Directly or indirectly having financial and material
interest in any transaction requiring the approval of his 1st offense — Suspension for one (1) month and one (1)
office. Financial and material interest is defined as day to six (6) months
pecuniary or proprietary interest by which a person will 2nd offense — Dismissal
gain or lose something.
(g) Recommending any person to any position in a
private enterprise which has a regular or pending official


transaction with his office, unless such recommendation 2nd offense — Suspension for one (1) to thirty (30)
or referral is mandated by (1) Law, or (2) international days
agreements, commitment and obligation, or as a part of 3rd offense — Dismissal
the function of his office
(f) Disgraceful, Immoral or Dishonest Conduct Prior to
1st offense — Suspension for one (1) month and one (1) Entering the Service
day to six (6) months
1st offense — Reprimand
2nd offense — Suspension for one (1) to thirty (30)
(h) Unfair Discrimination in Rendering Public Service days
Due to Party Affiliation or Preference
3rd offense — Dismissal
day to six (6) months (g) Borrowing Money by Superior Officers from
Subordinates
(i) Failure to File Sworn Statements of Assets,
Liabilities, and Networth, and Disclosure of Business 2nd offense — Suspension for one (1) to thirty (30)
Interest and Financial Connections including those of days
their spouses and unmarried children under eighteen (18) 3rd offense — Dismissal
years of age living in their households
(h) Lending Money at Usurious Rates of Interest
day to six (6) months 1st offense — Reprimand
2nd offense — Dismissal 2nd offense — Suspension for one (1) to thirty (30)
days
(j) Failure to resign from his position in the private
business enterprise within thirty (30) days from 3rd offense — Dismissal
assumption of public office when conflict of interest (i) Willful Failure to Pay Just Debts
arises and/or failure to divest himself of his shareholdings
or interest in private business enterprise within sixty (60) 1st offense — Reprimand
days from assumption of public office when conflict of 2nd offense — Suspension for one (1) to thirty (30)
interest arises: Provided, however, That where a conflict of days
interest arises for those who are already in the service, the 3rd offense — Dismissal
official or employee must either resign or divest himself
of said interest within the periods herein-above; provided, The term "just debts" shall apply only to:
reckoned from the date when the conflict of interest had 1. claims adjudicated by a court of law, or
arisen
2. claims the existence and justness of which are
1st offense — Suspension for one (1) month and one (1) admitted by the debtor.
day to six (6) months
(j) Willful failure to pay taxes due to the government
The following are light offenses with their
corresponding penalties: 2nd offense — Suspension for one (1) to thirty (30)
days
(a) Discourtesy in the Course of Official Duties
(k) Pursuit of private business, vocation or profession
2nd offense — Suspension for one (1) to thirty (30) without the permission required by civil service rules and
days regulations
3rd offense — Dismissal 1st offense — Reprimand
(b) Improper or unauthorized solicitation of 2nd offense — Suspension for one (1) to thirty (30)
contributions from subordinate employees and by days
teachers of school officials from school children
(l) Lobbying for personal interest or gain in legislative
2nd offense — Suspension for one (1) to thirty (30) halls and offices without authority
days
2nd offense — Suspension for one (1) to Thirty (30)
(c) Violation of reasonable office rules and regulations days
1st offense — Reprimand 3rd offense — Dismissal
2nd offense — Suspension for one (1) to thirty (30) (m) Promoting the sale of tickets in behalf of private
days enterprises that are not intended for charitable or public
3rd offense — Dismissal welfare purposes and even in the latter cases if there is no
prior authority
(c.1-1) This includes violation of M.C. 14, s. 1991 (DRESS
CODE) 1st offense — Reprimand
(d) Gambling Prohibited by Law 2nd offense — Suspension for one (1) to thirty (30)
days
2nd offense — Suspension for one (1) to thirty (30)
days (n) Failure to act promptly on letters and request
within fifteen (15) days from receipt, except as otherwise
3rd offense — Dismissal provided in the rules implementing the code of conduct
(e) Refusal to Render Overtime Service and ethical standards for public officials and employees.
1st offense — Reprimand 1st offense — Reprimand


2nd offense — Suspension for one (1) to thirty (30) final authority to pass upon the removal, separation and
days suspension of all officers and employees in the civil
3rd offense — Dismissal service and upon all matters relating to the conduct,
discipline and efficiency of such officers and employees.
(o) Failure to process documents and complete
action on documents and papers within a reasonable SECTION 32. The Secretaries and heads of agencies
time from preparation thereof, except as otherwise and instrumentalities, provinces, cities and municipalities
provided in the rules implementing the code of conduct shall have jurisdiction to investigate and decide matters
and ethical standards for public officials and employees involving disciplinary action against officers and
employees under their jurisdiction. Their decisions shall
1st offense — Reprimand be final in case the penalty imposed is suspension for not
2nd offense — Suspension for one (1) to thirty (30) more than 30 days or fine in an amount not exceeding 30
days days' salary, In case the decision rendered by a bureau or
office head is appealable to the Commission, the same
3rd offense — Dismissal may be initially appealed to the department, then to the
(p) Failure to attend to anyone who wants to avail Merit Systems Protection Board, and finally to the
himself of the services of the office, or act promptly and Commission and pending appeal, the same shall be
expeditiously on public transactions executory except when the penalty is removal, in which
case the same shall be executory only after confirmation
1st offense — Reprimand by the Secretary concerned.
2nd offense — Suspension for one (1) to thirty (30) SECTION 33. An investigation may be entrusted to a
days regional director or similar officials who shall make the
3rd offense — Dismissal necessary report and recommendation to the chief of
SECTION 24. Preventive Suspension is not a bureau or office or department.
punishment or penalty for misconduct in office but is SECTION 34. Administrative proceedings may be
considered to be a preventive measure. commenced against a subordinate officer or employee
SECTION 25. The period within which a public officer by the following officials/persons:
or employee charged is placed under preventive (a) Secretary of Department;
suspension shall not be considered part of the actual (b) Head of Office of Equivalent Rank;
penalty of suspension imposed upon the employee found
guilty. (c) Head of Local Government Unit;
SECTION 26. The proper disciplining authority may (d) Chief of Agency;
preventively suspend any subordinate officer or employee (e) Regional Director; or
under his authority pending an investigation, if the
charge against such officer or employee involves: (f) Upon Sworn, Written Complaint of Any other
Person.
(a) dishonesty
SECTION 35. In the case of a complaint filed by any
(b) oppression other person, the complainant shall submit sworn
(c) grave misconduct statements covering his testimony and those of his
witnesses together with his documentary evidence.
(d) neglect in the performance of duty or
If on the basis of such papers no prima facie case is
(e) if there are reasons to believe that the respondent found to exist, the disciplining authority shall dismiss the
is guilty of charges which would warrant his removal from case.
the service
If a prima facie case exists, the disciplining authority
SECTION 27. When the administrative case against a shall notify the respondent in writing of the charges
non-presidential officer or employee under preventive against him. Copies of the complaint, sworn statements
suspension is not finally decided by the disciplining and other documents submitted shall be attached to said
authority within the period of 90 days after the date of his notification.
preventive suspension, he shall be automatically
reinstated in the service: Provided, That when the delay in SECTION 36. The respondent must be given by the
the disposition of the case is due to the fault, negligence disciplining authority not less than 72 hours or 3 days to
or petition of the respondent, the period of delay should submit his answer to the charges which answer must be
not be included in the counting of the 90 calendar-day in writing and under oath. Supporting sworn statements
period of preventive suspension. and documents may also be submitted. If the answer is
found satisfactory, the disciplining authority shall dismiss
SECTION 28. The Commission shall have original the case.
disciplinary jurisdiction over all its officials and employees
and over all cases involving civil service examination In said answer, the respondent shall indicate whether
anomalies or irregularities. or not he elects a formal investigation of his case.
SECTION 29. The Commission may assume original SECTION 37. Although a respondent does not request
jurisdiction on complaints directly filed before it against a formal investigation, one shall nevertheless be
any other official or employee. For this purpose, it may conducted by the disciplining authority when from the
hear and decide the case or it may deputize any officer of allegations of the complaint and the answer of the
the department or agency to conduct the investigation respondent, including the supporting documents of both
and to receive the evidence. The results of the parties the merits of the case cannot be decided
investigation together with the evidence adduced and judiciously without conducting such investigation.
recommendation shall be submitted to the Commission SECTION 38. The investigation shall be held not
for decision. earlier than five days nor later than ten days from the
SECTION 30. The Merit Systems Protection Board of date of receipt of the respondent's answer. Said
this Commission may assume original jurisdiction on investigation shall be finished within 30 days from the
complaints against civil service officials and employees, filing of the charges, unless the period is extended by the
those which are unacted upon by the agencies and on Commission in meritorious cases.
such other complaints requiring direct action in the SECTION 39. The direct evidence for the complainant
interest of justice. and the respondent shall consist of the sworn statement
SECTION 31. Except as otherwise provided by the and documents submitted in support of the complaint or
Constitution or by law, the Commission shall have the answer as the case may be, without prejudice to the


presentation of additional evidence deemed necessary which case the period shall run until the end of the next
but was unavailable at the time of the filing of the day which is neither a Saturday, a Sunday or a legal
complaint or answer upon which the cross-examination, holiday:
by the respondent and the complainant respectively, SECTION 46. A motion for reconsideration may be
shall be based. Following cross-examination, there may filed by the party adversely affected by the decision of the
be re-direct and re-cross examination. Merit Systems Protection Board or the Commission as the
Either party may avail himself of the services of case may be within fifteen (15) days from receipt of the
counsel and may require the attendance of witnesses and decision.
the production of documentary evidence in his favor SECTION 47. The motion for reconsideration is
through the compulsory process of subpoena or deemed filed in case the same is sent by registered mail
subpoena duces tecum. on the date shown by the postmark on the envelope
The investigation shall be conducted for the purpose which postmark shall be attached to the record of the
of ascertaining the truth without necessarily adhering to case, and in case of personal delivery, the date of receipt
technical rules applicable in judicial proceedings. It shall by the MSPB or the Commission.
be conducted by the disciplining authority concerned or SECTION 48. The motion for reconsideration shall be
his authorized representatives. based only on any of the following grounds:
SECTION 40. The decision shall be rendered by the (a) New evidence has been discovered which
disciplining authority within 30 days from the materially affects the decision rendered;
termination of the investigation or submission of the
report of the investigation, which report shall be (b) The decision is not supported by the evidence on
submitted within 15 days from the conclusion of the record; or
investigation. (c) Errors of law or irregularities have been committed
SECTION 41. An employee who feels aggrieved by the which are prejudicial to the interest of the service.
decision of the disciplining authority may file a petition SECTION 49. Only one motion for reconsideration
with the agency for a reconsideration thereof. shall be entertained.
SECTION 42. Decisions of heads of departments, SECTION 50. The decision of the Commission shall be
agencies and instrumentalities, provinces, cities and immediately executory unless a motion for
municipalities, imposing penalties exceeding thirty days reconsideration is seasonably filed.
suspension or fine in an amount exceeding 30 days
salary, may be appealed to the Merit Systems Protection SECTION 51. The Commission may further employ or
Board, an intermediate appellate body of the pursue such other civil, criminal and/or administrative
Commission, within fifteen (15) days from receipt of a sanctions as provided for under existing laws.
copy of the decision, and finally to the Commission SECTION 52. If the decision of the Commission is
proper within the same period of fifteen days. brought to the Supreme Court on certiorari, the same
A fee of at least One Hundred Pesos (P100.00) shall be shall still be executory unless a restraining order or
paid for an appeal filed with the Merit Systems Protection preliminary injunction is issued by the High Court.
Board, or with the Commission proper. SECTION 53. The head of department or agency or
Decisions of the MSPB in administrative cases where any responsible official who willfully and deliberately
the penalty imposed is short of dismissal and on protest refuses or fails to implement or execute the final
cases and other personnel actions where the position resolution or decision of the Commission to the prejudice
involved is below Division Chief level, are final and of the party affected or the public in general shall be
unappealable. However, decisions of these nature shall be liable for contempt of the Commission.
subject of review by the Commission motu proprio or In case the decision directed payment of back
upon request/petition for review by the aggrieved party. salaries, the head of the department shall be made liable
The grant of petition for review, as distinguished from an in his personal capacity for the payment of said salaries
appeal is discretionary on the part of the Commission. and other money benefits corresponding to the period of
SECTION 43. Notice of the appeal shall be filed with delay in the implementation of said decision, order or
the disciplining office, which shall forward the records of ruling.
the case together with the notice of appeal, to the SECTION 54. A person guilty of committing any of the
appellate authority within 15 days from filing of the notice following acts may be summarily adjudged guilty of
of appeal, with its comment, if any. direct contempt of the Commission:
The notice of appeal shall specifically state the date of (a) misbehavior in the presence of or so near the
the decision appealed from and the date of receipt Commission or any of its members as to obstruct or
thereof. Failure to do so may cause the dismissal of the interrupt the proceedings before the same;
appeal. It shall also specifically set forth clearly the
grounds relied upon. (b) disrespect towards the Commission or any of its
members, like the (1) use of any disrespectful or insulting
Where a notice of appeal is filed within the language, or (2) derogatory remarks in the pleadings,
reglementary period, the appellant shall submit his memoranda and/or position papers, or (3) offensive
appeal memorandum together with the certified true personalities towards others;
copy of the decision, resolution or order appealed from
within ten (10) days from the date of said notice is filed. (c) refusal to be sworn in, or to answer as a witness, or
Failure to submit an appeal memorandum with the to subscribe an affidavit or deposition when required to
required copy of decision within the prescribed period, do so.
shall be construed as a waiver thereof. If adjudged guilty, the respondent may be publicly
SECTION 44. The appeal is deemed filed in case the reprimanded or censured and/or imposed a fine not
same is sent by registered mail, on the date shown by the exceeding two hundred pesos.
postmark on the envelope which postmark shall be Decisions of the Commission declaring any person in
attached to the record of the case, and in case of personal direct contempt shall not be appealable.
delivery, the date of receipt by the MSPB or the SECTION 55. Indirect contempt shall be imposed only
Commission, after due proceedings. Indirect contempt may be
SECTION 45. In the computation of the period of time, committed through any of the following acts or
the first day shall be excluded and the last day included omissions:
unless it be a Saturday, a Sunday or a legal holiday, in


(a) Disobedience or resistance to a lawful writ, (k) Program evaluation.
process, order, decision, resolution, ruling, summons, SECTION 3. Heads of departments, agencies and local
subpoena or command of, or injunction of the government units shall extend all necessary assistance
Commission; and support to the inspection and audit programs of the
(b) Any abuse of or any unlawful interference with the Commission.
processes or proceedings of the Commission, or any SECTION 4. At least two weeks' advance notice of the
improper conduct, tending directly or indirectly to inspection shall be furnished by the Commission to the
impede, obstruct, delay, hamper, or degrade the department, agency, or local government unit.
implementation of any lawful writ, process, order,
decision, resolution, ruling or command of the SECTION 5. Before every inspection, the Commission
Commission not constituting direct contempt; representatives designated to undertake such shall meet
with the head of the department, agency or local
(c) Deliberate failure to obey a subpoena or subpoena government unit to be inspected, or his designated
duces tecum duly served without valid justification representative/s to explain, among others, the objective/s,
therefor. scope and methods of the inspection, and to afford an
SECTION 56. If the respondent is adjudged guilty of opportunity for discussion of current problems.
indirect contempt committed against the Commission, The head of the department, agency or local
he may be punished by a fine of not more than one government unit shall designate the official in charge of
thousand pesos (P1,000.00) for every act of indirect personnel matters in the department, agency or local
contempt. Each day of defiance of or disobedience to or government unit to be inspected to assist the
non-enforcement of a final order, resolution, decision, Commission representatives in the conduct of the
ruling, injunction or processes, shall constitute indirect inspection. Upon request of the Commission
contempt of the Commission. If the contempt consists in representatives, the designated official shall make
the violation of an injunction or omission to do an act available all the documents and other resources
which is still within the power of the respondent to pertinent to the personnel management operations and
perform, the respondent shall, in addition, be made liable activities to be inspected.
for all damages as a consequence thereof.
SECTION 6. In the course of the inspection,
SECTION 57. The damages shall be measured by the Commission representatives shall, as far as practicable,
extent of the loss or injury sustained by the aggrieved keep the officials and employees of the department,
party by reason of the misconduct, disobedience to, agency or local government unit being inspected,
defiance of a lawful order, and/or such other informed of their findings and recommendations to
contumacious acts or omissions of which the contempt is enable them to take corrective action, as may be
being prosecuted, and the costs of the proceedings, necessary, at the earliest time possible.
including payment of interest on damages.
SECTION 7. Commission representatives shall furnish
SECTION 58. Damages sustained by the aggrieved advice and assistance to the departments, agencies or
party shall refer to the total amount of his or her salaries local government units both during inspection and in
and other money benefits which shall have accrued to between inspections on personnel management
the latter had the final order, decision, resolution, ruling, problems, policies and procedures.
injunction or processes of the Commission been
enforced/implemented immediately. SECTION 8. Personnel officers as well as operating
officials and employees shall be afforded opportunities
during inspection and in between inspections to make
RULE XV Inspection and Audit suggestions and recommendations to Commission
representatives towards the improvement of the merit
SECTION 1. The Commission, through its designated system and the effective implementation of the Civil
representatives, shall conduct periodic inspection and Service Law, rules and standards.
audit of the personnel management programs of each
Department, agency, province, city or municipality in SECTION 9. Upon completion of the inspection,
order to: (a) determine compliance with the Civil Service Commission representatives shall submit a written report
Law, rules and standards; (b) review discharge of of inspection made on departments, agencies and field
delegated authority; (c) make an adequate evaluation of establishments in the Metro Manila area to the Chairman
the progress made and problems encountered in the and on departments, agencies and field establishments
conduct or implementation of the merit system in the outside Metro Manila to the respective Regional Directors
national and local governments including of the Commission. The Chairman and the Regional
government-owned or controlled corporations with Directors concerned shall, after approval of the report,
original charters; (d) give advice and provide assistance in send copies to the heads of the departments, agencies
developing constructive policies, standards and and field establishments concerned.
procedures; and (e) stimulate improvement in all areas of In the case of local government units, copies of the
personnel management. report shall be furnished the provincial governor and/or
SECTION 2. Periodic inspection and audit shall city/municipal mayor and such other provincial and/or
include an agency's appraisal of personnel management city/municipal heads as the Chairman or Regional
operations and activities relative to: Directors may deem necessary.
(a) Formulation and issuance of personnel policy; SECTION 10. Immediately upon receipt of the
inspection report, the department, agency or local
(b) Position classification and pay; government unit shall take whatever necessary corrective
(c) Recruitment and selection of employees; action remains in connection with Section 6 of this Rule
within the period prescribed by the Commission and shall
(d) Personnel action and employment status;
notify in writing the Commission of its action.
(e) Career and employee development;
At the end of such period, Commission
(f) Performance rating system; representatives shall monitor the extent of
(g) Employee suggestions and incentive award; implementation by the department, agency or local
government unit of the corrective actions recommended
(h) Employee relations and services; in connection with the inspection therein conducted.
(i) Discipline; SECTION 11. If the department, agency or local
(j) Personnel records and reporting; and government unit decides to file any request for
reconsideration of corrective actions recommended in


the inspection report, it shall notify the Commission of designated to perform non-teaching functions and who
such request within 15 days from receipt of the report and render the same hours of service as other employees shall
submit in writing the reasons to support the request for be entitled to vacation and sick leave.
reconsideration. After the request for reconsideration, the SECTION 9. Vacation Service Credits of Teachers. —
Commission shall notify the department, agency or local Teachers' vacation service credits refer to the leave credits
government unit of its decision. Such decision shall be earned for services rendered on activities, during summer
final. or Christmas vacation, as authorized by proper authority.
These vacation service credits are used to offset absences
of a teacher due to illness or to offset proportional
RULE XVI Leave of Absence deduction in vacation salary due to absences for personal
SECTION 1. Entitlement to Leave Privileges. — In reasons or late appointment. The manner by which
general, appointive officials and employees of the service credits may be earned by teachers is subject to
government whether permanent, temporary, or casual, the guidelines issued by the Department of Education,
who render work during the prescribed office hours, shall Culture and Sports (DECS).
be entitled to 15 days vacation and 15 days sick leave SECTION 10. Leave Credits of Officials and
annually with full pay exclusive of Saturdays, Sundays, Employees Covered by Special Leave Law. — The leave
Public Holidays, without limitation as to the number of credits of the following officials and employees are
days of vacation and sick leave that they may accumulate. covered by special laws:
SECTION 2. Leave of Absence of Part-Time (a) Justices of the Supreme Court, Court of Appeals
Employees. — Employees rendering services on and Sandiganbayan;
part-time basis are entitled to vacation and sick leave
benefits proportionate to the number of work hours (b) Judges of Regional Trial Courts, Municipal Trial
rendered. A part-time employee who renders four (4) Courts, Metropolitan Trial Courts, Court of Tax Appeals
hours of work five (5) days a week or a total of 20 hours a and Shari'a Circuit Court; and Shari'a District Court.
week is entitled to 7.5 days vacation leave and 7.5 days (c) Heads of the Executive Departments, Heads of
sick leave annually with full pay. Departments, Undersecretaries;
SECTION 3. Leave of Absence of Employees on (d) Chairmen and Commissioners of Constitutional
Rotation Basis. — Employees on rotation basis shall be Commissions;
entitled to vacation and sick leave corresponding to the
periods of service rendered by them. If an employee has (e) Filipino officers and employees in the Foreign
been allowed to work in two or more shifts or rotation, the Service;
periods of actual service covered by each shift or rotation (f) Faculty members of state universities and colleges
should be added together to determine the number of including those teaching in universities and colleges
years, months and days during which leave is earned. created pursuant to ordinance of the LGUs; and
SECTION 4. Contractual Employees are Not Entitled (g) Other officials and employees covered by special
to Leave Credits as a Matter of Right. — In view of the laws.
nature of their employment, employees hired on
Hence, Justices and other government officials and
contractual basis are not entitled to vacation, sick, and
employees covered by special laws should promulgate
other special leave privileges. To offset their
their own implementing rules relative thereto. Said
non-entitlement to leave benefits, contractual employees
implementing rules should be submitted to the Civil
may be paid compensation twenty percent (20%) higher
Service Commission for record purposes.
than the salaries of regular employees occupying
equivalent positions. If contractual employees are not SECTION 11. Conditions for the Grant of Maternity
given the 20% premium, they should be entitled to Leave. — Every woman in the government service who
vacation and sick leave. has rendered an aggregate of two (2) or more years of
service, shall, in addition to the vacation and sick leave
SECTION 5. Leave Credits of Local Elective Officials.
granted to her, be entitled to maternity leave of sixty (60)
— Local elective officials started to be entitled to leave
calendar days with full pay.
privileges effective May 12, 1983 only pursuant to Batas
Pambansa 337. However, said leave was commutative but Maternity leave of those who have rendered one (1)
not cumulative. This means that local elective officials year or more but less than two (2) years of service shall be
who did not commute said leave during the year earned computed in proportion to their length of service,
are deemed to have forfeited the same. provided, that those who have served for less than one (1)
year shall be entitled to 60 days maternity leave with half
However, starting January 1, 1992, local elective
pay.
officials shall be entitled to leave privileges as those
enjoyed by appointive local officials, including It is understood that enjoyment of maternity leave
accumulation and commutation thereof. cannot be deferred but should be enjoyed within the
actual period of delivery in a continuous and
SECTION 6. Teachers' Leave. — Teachers shall not be
uninterrupted manner not exceeding 60 calendar days.
entitled to the usual vacation and sick leave credits but to
(Amendment of Section 11, Rule XVI of the Omnibus Rules
proportional vacation pay (PVP) of 70 days of summer
Implementing Book V of the Administrative Code of 1987,
vacation plus 14 days of Christmas vacation. A teacher
CSC Memorandum Circular No. 22-02, [October 23, 2002])
who has rendered continuous service in a school year
without incurring absences without pay of not more than SECTION 12. Formula for the Computation of
1 1/2 days is entitled to 84 days of proportional vacation Maternity Leave. — Employees who have rendered less
pay. than two (2) years of service may only receive full pay for a
number of days based on the ratio of 60 days to 2 years of
Other leave benefits of teachers such as study leave
service.
and indefinite sick leave are covered by Section 24 and 25
of RA 4670 (Magna Carta for Public School Teachers). W here : y = the no. of days in the service;
SECTION 7. Other Employees Under Teacher's Leave x = the no. of days to be paid;
Basis. — Day Care Workers and all other appointive
employees whose work schedule is the same as that of 2 years = 720 days
teachers, earn leave credits in accordance with Sections 6
and 9 hereof.
60
720 = x
y
⇒ 720x = 60y ⇒ x = 60y
720

SECTION 8. Teachers who are Designated to y
x= 12
Perform Non-Teaching Functions. — Teachers who are


For example, an employee has rendered one year and six continuous or in an intermittent manner by the employee
months of service: on the days immediately before, during and after the
childbirth or miscarriage of his legitimate spouse.
W here : y = 1 year and 6 months (540 days)
SECTION 21. Special Leave Privileges. — In addition
x = the no. of days to be paid; to the vacation, sick, maternity and paternity leave,
y
⇒x= officials and employees with or without existing or
x= 12
540
12 = 45 days approved Collective Negotiation Agreement (CNA),
SECTION 13. A Married Woman may be Granted except teachers and those covered by special leave laws,
Maternity Leave more than Once a Year. — Maternity are granted the following special leave privileges subject
leave shall be granted to female employees in every to the conditions hereunder stated:
instance of pregnancy irrespective of its frequency.|||
(Amendment of Section 11, Rule XVI of the Omnibus Rules (a) funeral/mourning leave (f) hospitalization
Implementing Book V of the Administrative Code of 1987, leave
CSC Memorandum Circular No. 22-02, [October 23, 2002]) (b) graduation leave (g) accident leave
SECTION 14. Married Women may go on Maternity
Leave for Less than Sixty (60) Days. — When a female (c) enrollment leave (h) relocation leave
employee wants to report back to duty before the (d) wedding/anniversary (i) government
expiration of her maternity leave, she may be allowed to leave transaction leave
do so provided she presents a medical certificate that she
is physically fit to assume the duties of her position. (e) birthday leave (j) calamity leave
The commuted money value of the unexpired portion (1) That the official/employee may be granted a
of the leave need not be refunded and that when the maximum of three (3) days within a calendar year of any
employee returns to work before the expiration of her or combination of special leave privileges of his choice
maternity leave, she may receive both the benefits which he would opt to avail;
granted under the maternity leave law and the salary for (2) That such privileges shall be non-cumulative and
actual services rendered effective the day she reports for non-commutative;
work. (Amendment of Section 11, Rule XVI of the Omnibus
Rules Implementing Book V of the Administrative Code (3) That the official/employee shall submit the
of 1987, CSC Memorandum Circular No. 22-02, [October application for the said special leave privileges for at least
23, 2002]) one (1) week prior to its availment except on emergency
cases; and
SECTION 15. Maternity Leave with Pay may be
Granted Even if Delivery Occurs Just a Few Days After (4) Special leave privilege may be availed of by the
the Termination of Employee's Service. — Maternity official/employee when the occasion is personal to him
leave with pay may be granted even if the delivery occurs and that of his immediate family.
not more than 15 calendar days after the termination of SECTION 22. Monetization of Leave Credits. —
employee's service as her right thereto has already Officials and employees in the career and non-career
accrued. service whether permanent, temporary, casual, or
SECTION 16. Maternity Leave of Employee on coterminous, who have accumulated fifteen (15) days of
Extended Leave of Absence Without Pay. — If already vacation leave credits shall be allowed to monetize a
entitled, a woman employee can still avail of sixty (60) minimum of ten (10) days: Provided, that at least five (5)
days maternity leave with pay even if she is on an days is retained after monetization and provided further
extended leave of absence without pay. that a maximum of thirty (30) days may be monetized in
a given year.
SECTION 17. Maternity Leave of Employee with
Pending Administrative Case. — Every woman employee SECTION 23. Monetization of 50% of Vacation/Sick
in the government service is entitled to maternity leave of Leave Credits. — Monetization of fifty (50%) or more of
absence with pay even if she has a pending the accumulated leave credits may be allowed for valid
administrative case. (Amendment of Section 11, Rule XVI and justifiable reasons such as:
of the Omnibus Rules Implementing Book V of the a. Health, medical and hospital needs of the
Administrative Code of 1987, CSC Memorandum Circular employee and the immediate members of his family;
No. 22-02, [October 23, 2002])
b. Financial aid and assistance brought about by force
SECTION 18. Maternity Leave of Contractual majeure events such as calamities, typhoons, fire,
Employees. — All contractual female employees whether earthquake and accidents that affect the life, limb and
or not receiving 20% premium on their salary shall be property of the employee and his/her immediate family;
entitled to maternity leave benefits like regular
c. Educational needs of the employee and the
employees in accordance with the provisions of Section 11
immediate members of his/her family;
hereof. (Amendment of Section 11, Rule XVI of the
Omnibus Rules Implementing Book V of the d. Payment of mortgages and loans which were
Administrative Code of 1987, CSC Memorandum Circular entered into for the benefit or which inured to the benefit
No. 22-02, [October 23, 2002]) of the employee and his/her immediate family.
SECTION 19. Conditions for the Grant of Paternity e. In cases of extreme financial needs of the
Leave. — Every married male employee is entitled to employee or his/her immediate family where the present
paternity leave of seven (7) working days for the first four sources of income are not enough to fulfill basic needs
(4) deliveries of his legitimate spouse with whom he is such as food, shelter and clothing;
cohabiting. f. Other analogous cases as may be determined by
The first of the 4 deliveries shall be reckoned from the the Commission.
effectivity of the Paternity Leave Act on July 15, 1996. The monetization of 50% or more of the accumulated
Married male employee with more than one (1) legal leave credits shall be upon the favorable
spouse shall be entitled to avail of paternity leave for an recommendation of the agency head and subject to
absolute maximum of four deliveries regardless of availability of funds.
whichever spouse gives birth. Immediate family is used herein as defined in Rule I
SECTION 20. Paternity Leave — (Definition of terms) of the Omnibus Rules Implementing
Non-Cumulative/Non-Commutative. — Paternity leave of the Administrative Code of 1987.(Amendment to Section
seven (7) days shall be non-cumulative and strictly 23, Rule XVI of the Omnibus Rules Implementing Book V
non-convertible to cash. The same may be enjoyed in a of the Administrative Code of 1987, Also Known as the



Omnibus Rules on Leave, CSC Memorandum Circular No. A fraction of one-fourth or more but less than
16-02, [June 24, 2002]) three-fourth shall be considered as one-half day and a
SECTION 24. Computation of Leave Monetization. — fraction of three-fourths or more shall be counted as one
The formula to be used for the computation of full day for purposes of granting leave of absence.
monetization is as follows: SECTION 29. Computation of Leave for Employees
with Irregular Work Schedule. — Employees, including,
Monthly Salary Money Value of among others, hospital personnel, whose work schedules
No. of days to
the monetized are irregular and at times include Saturdays, Sundays,
be Monetized
22 Working Days leave and legal holidays and are instead off-duty on other days,
SECTION 25. Five Days Forced/Mandatory Leave. — their off-duty days regardless or whether they fall on
All officials and employees with 10 days or more vacation Saturdays, Sundays, or holidays during the period of their
leave credits shall be required to go on vacation leave leave, are to be excluded in the computation of vacation
whether continuous or intermittent for a minimum of five and sick leave. In other words, if an employee is off-duty,
(5) working days annually under the following conditions: say for two (2) days falling on Saturdays, Sundays, or
holidays, these days occurring within the period of
(a) The head of agency shall, upon prior consultation authorized leave are to be excluded in the deduction of
with the employees, prepare a staggered schedule of the the number of days of leave from the earned leave credits
mandatory five-day vacation leave of officials and of the employee.
employees, provided that he may, in the exigency of the
service, cancel any previously scheduled leave. SECTION 30. Computation of Leave for Employees
Observing Flexible Working Hours. — Employees
(b) The mandatory annual five-day vacation leave observing flexible working hours who render less than
shall be forfeited if not taken during the year. However, in the usual eight (8) hours of work per day but complete
cases where the scheduled leave has been cancelled in the forty (40) hours of work in a week, shall be deducted
the exigency of the service by the head of the agency, the from their leave credits only the minimum number of
scheduled leave not enjoyed shall no longer be deducted hours required to be served for a day but which was not
from the total accumulated vacation leave. served. Any absence incurred must be charged in
(c) Retirement and resignation from the service in a proportion to the number of hours required for a day's
particular year without completing the calendar year do work.
not warrant forfeiture of the corresponding leave credits if SECTION 31. Commutation of Salary Prior to Leave.
concerned employees opted not to avail of the required — The proper head of department, local government unit,
five-day mandatory vacation leave. and government owned or controlled corporation with
(d) Those with accumulated vacation leave of less original charter may, in his discretion, authorize the
than ten (10) days shall have the option to go on forced commutation of the salary that would be received during
leave or not. However, officials and employees with the period of vacation and sick leave of any appointive
accumulated vacation leave of 15 days who availed of official and employee and direct its payment at the
monetization for 10 days, under Section 22 hereof, shall beginning of such leave from the fund out of which the
still be required to go on forced leave. salary would have been paid.
SECTION 26. Accumulation of Vacation and Sick SECTION 32. Absence on a Regular Day for which
Leave. — Vacation and sick leave shall be cumulative and Suspension of Work is Announced. — Where an official
any part thereof which may not be taken within the or an employee fails to report for work on a regular day for
calendar year may be carried over to the succeeding which suspension of work is declared after the start of
years. Whenever any official or employee retires, regular working hours, he shall be considered absent on
voluntarily resigns, or is allowed to resign or is separated that day.
from the service through no fault of his own, he shall be SECTION 33. Leave of Absence Without Pay on a
entitled to the commutation of all the accumulated Day Immediately Preceding or Succeeding Saturday,
vacation and/or sick leave to his credit, exclusive of Sunday or Holiday. — When an employee, regardless of
Saturdays, Sundays, and holidays, without limitation as to whether he has leave credits or not is absent on a day
the number of days of vacation and sick leave that he immediately preceding or succeeding a Saturday, Sunday
may accumulate provided his leave benefits are not or holiday, he shall not be considered absent on said days.
covered by special law. However, the same provision is applicable only to
When a person whose leave has been commuted intermittent or broken absences incurred by an employee
following his separation from the service is reemployed in but not to continuous or uninterrupted absences without
the government before the expiration of the leave pay exceeding a period of seven (7) calendar days.
commuted, he shall no longer refund the money value of SECTION 34. Tardiness and Undertime are
the unexpired portion of the said leave. Insofar as his Deducted Against Vacation Leave Credits. — Tardiness
leave credits is concerned, he shall start from zero and undertime are deducted from vacation leave credits
balance. and shall not be charged against sick leave credits, unless
SECTION 27. Computation of Vacation Leave and the undertime is for health reasons supported by medical
Sick Leave. — Computation of vacation leave and sick certificate and application for leave.
leave shall be made on the basis of one day vacation leave SECTION 35. Terminal Leave. — Terminal leave is
and one day sick leave for every 24 days of actual service applied for by an official or an employee who intends to
using the tables of computations as follows: sever his connection with his employer. Accordingly, the
SECTION 28. Actual Service Defined. — The term filing of application for terminal leave requires as a
"actual service" refers to the period of continuous service condition sine qua non, the employee's resignation,
since the appointment of the official or employee retirement or separation from the service without any
concerned, including the period or periods covered by fault on his part. It must be shown first that public
any previously approved leave with pay. employment cease by any of the said modes of
Leave of absence without pay for any reason other severances.
than illness shall not be counted as part of the actual SECTION 36. Approval of Terminal Leave. —
service rendered: Provided, that in computing the length Application for commutation of vacation and sick leave in
of service of an employee paid on the daily wage basis, connection with separation through no fault of an official
Saturdays, Sundays or holidays occurring within a period or employee shall be sent to the head of department
of service shall be considered as service although he did concerned for approval. In this connection, clearance
not receive pay on those days inasmuch as his service was from the Ombudsman is no longer required for
not then required. processing and payment of terminal leave as such


clearance is needed only for payment of retirement 30Y /69
benefits. V acation and Sick Leave = 2
SECTION 37. Payment of Terminal Leave. — Any
official/employee of the government who retires, Where: 30 = Number of Days in a Month
voluntarily resigns, or is separated from the service Y = Total Number of Teacher's
through no fault of his own, and who is not otherwise Service Credits
covered by special law, shall be entitled to the
commutation of his leave credits exclusive of Saturdays, *69 = 58 Days of Summer Vacation
Sundays and Holidays without limitation and regardless plus 11 Days Christmas Vacation
of the period when the credits were earned.
SECTION 38. Period Within which to Claim Terminal 2 = the two kinds of leave
Leave Pay. — Request for payment of terminal leave
84 − 15 = 69 days total number of days of Summer/
benefits must be brought within ten (10) years from the Christmas vacation (12 days
time the right of action accrues upon an obligation Saturdays/Sundays during summer
created by law. vacation 3 days — Christmas Day, Rizal
SECTION 39.Basis of Computation of Terminal Day, New Year's Day)
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 SECTION 46. Transfer from Teaching to
period of employment in the government service and not Non-Teaching Service During Summer Vacation. — A
on his latest salary, unless the latter is the highest teacher who transferred to the non-teaching service
received by the retiree. immediately after the close of the school year during
summer vacation, is entitled to proportional vacation pay
SECTION 40.Computation of Terminal Leave. — The inasmuch as his right thereto has already accrued.
terminal leave benefits shall be computed as follows:
SECTION 47. Transfer of Leave Credits. — When an
official or employee transfers from one government
agency to another, he can either have his accumulated
Dx(S)
T LB = 22 vacation and/or sick leave credits commuted or
transferred to his new agency.
Where: The second option can be exercised as a matter of
right only by an employee who does not have gaps in his
TLB = Total Terminal Leave Benefits service. However, a gap of not more than one month may
be allowed provided same is not due to his fault.
D = No. of accumulated leave (VL &
SL) The option to transfer accumulated leave credits can
be exercised within one (1) year only from the employee's
S = Highest monthly salary transfer to the new agency.
received
This provision is not applicable to transfer of leave
22 = Number of working days in a credits of uniformed personnel from the military to the
month pursuant to R.A. 6758 civilian service.
SECTION 48. Remedy when Transfer of Leave
SECTION 41. Official/Employee on Terminal Leave Credits is Denied. — An official or employee who failed to
Does Not Earn Leave Credits. — The official/employee transfer his leave credits to the new office in line with the
who is on terminal leave does not earn any leave credits provisions in the preceding section, may claim the money
as he is already out of the service. While on terminal leave, value of such leave credits from the office where earned.
he merely enjoys the benefits derived during the time of SECTION 49. Period Within which to Act on Leave
such employment. Consequently, he is no longer entitled Application. — Whenever the application for leave of
to the benefits or salary increases that may be granted absence, including terminal leave, is not acted upon by
thereafter. the head of agency or his duly authorized representative
SECTION 42. Employee on Extension of Service Does within five (5) working days after receipt thereof, the
not Earn Leave Credits. — The official/employee who has application for leave of absence shall be deemed
reached the compulsory retirement age of 65 but whose approved.
service has been extended by the Commission for SECTION 50. Effect of Unauthorized Leave. — An
another six (6) months, no longer earns leave credits. official/employee who is absent without approved leave
SECTION 43. Computation of Salary. — An official or shall not be entitled to receive his salary corresponding to
employee who applies for vacation or sick leave shall be the period of his unauthorized leave of absence. It is
granted leave with pay at the salary he is currently understood, however that his absence shall no longer be
receiving. deducted from his accumulated leave credits, if there are
any.
SECTION 44. Leave During Probationary Period. —
An employee still on probation may already avail of SECTION 51. Application for Vacation Leave. — All
whatever leave credits he has earned during said period. applications for vacation leave of absence for one (1) full
Accordingly, any leave of absence without pay incurred day or more shall be submitted on the prescribed form
during the period of probation shall extend the for action by the proper head of agency five (5) days in
completion thereof for the same number of days of such advance, whenever possible, of the effective date of such
absence. leave.
SECTION 45. Payment of Unused Vacation Service SECTION 52. Approval of Vacation Leave. — Leave of
Credits of Teachers. — Teachers and other school absence for any reason other than illness of an official or
personnel on the teachers' leave basis who resigned, employee or of any member of his immediate family
retired, or are separated from the service through no fault must be contingent upon the needs of the service.
of their own on or after January 16, 1986 shall be paid the Hence, the grant of vacation leave shall be at the
money value of their unused vacation service credits discretion of the head of department/agency.
converted to vacation and sick leave using the formula: SECTION 53. Application for Sick Leave. — All
applications for sick leave of absence for one full day or
more shall be made on the prescribed form and shall be


filed immediately upon employee's return from such SECTION 62. Effect of Failure to Report for Duty
leave. Notice of absence, however, should be sent to the After Expiration of One Year Leave. — If an official or an
immediate supervisor and/or to the agency head. employee who is on leave without pay pursuant to
Application for sick leave in excess of five (5) successive Section 57 hereof, fails to report for work at the expiration
days shall be accompanied by a proper medical of one year from the date of such leave, he shall be
certificate. considered automatically separated from the service.
Sick leave may be applied for in advance in cases SECTION 63. Effect of Absences Without Approved
where the official or employee will undergo medical Leave. — An official or an employee who is continuously
examination or operation or advised to rest in view of ill absent without approved leave for at least thirty (30)
health duly supported by a medical certificate. calendar days shall be considered on absence without
In ordinary application for sick leave already taken not official leave (AWOL) and shall be separated from the
exceeding five days, the head of department or agency service or dropped from the rolls without prior notice. He
concerned may duly determine whether or not granting shall, however, be informed, at his address appearing on
of sick leave is proper under the circumstances. In case of his 201 files of his separation from the service, not later
doubt, a medical certificate may be required. than five (5) days from its effectivity.
SECTION 54. Approval of Sick Leave. — Sick leave If the number of unauthorized absences incurred is
shall be granted only on account of sickness or disability less than thirty (30) calendar days, a written
on the part of the employee concerned or of any member Return-to-Work Order shall be served to him at his last
of his immediate family. known address on record. Failure on his part to report for
work within the period stated in the order shall be a valid
SECTION 55. Rehabilitation Leave for Job-Related ground to drop him from the rolls.
Injuries. — Applications of officials and employees for
leave of absence on account of wounds or injuries SECTION 64. Status of the Position of an Official or
incurred in the performance of duty must be made on Employee on Vacation Leave or Sick Leave. — While the
the prescribed form, supported by the proper medical incumbent is on vacation or sick leave with or without
certificate and evidence showing that the wounds or pay, his position is not vacant. During the period of such
injuries were incurred in the performance of duty. The leave therefore, only substitute appointment can be
head of department/agency concerned shall direct that made to such position.
absence of an employee during his period of disability SECTION 65. Effect of Decision in Administrative
thus occasioned shall be on full pay, but not to exceed six Case. — An official or employee in the government who is
(6) months. He shall also authorize the payment of separated from the service for cause shall forfeit his leave
medical attendance, necessary transportation, credits.
subsistence and hospital fees of the injured person. SECTION 66. Effect of Exoneration from
Absence in the case contemplated shall not be charged Criminal/Administrative Case. — In general, officials and
against sick leave or vacation leave, if there are any. employees who have been dismissed from the service
SECTION 56. Leave Without Pay. — All absences of but who were later exonerated and thereafter reinstated,
an official or employee in excess of his accumulated are entitled to the leave credits during the period they
vacation or sick leave credits earned shall be without pay. were out of the service. cdasia
When an employee had already exhausted his sick SECTION 67. Cause for Disciplinary Action. — Any
leave credits, he can use his vacation leave credits but not violation of the leave laws, rules or regulations, or any
vice versa. misrepresentation or deception in connection with an
SECTION 57. Limit of Leave Without Pay. — Leave application for leave, shall be a ground for disciplinary
without pay not exceeding one year may be granted, in action. (Amendments to Rules I and XVI of the Omnibus
addition to the vacation and/or sick leave earned. Leave Rules Implementing Book V of the Administrative Code
without pay in excess of one month shall require the of 1987 (Executive Order 292), CSC Memorandum Circular
clearance of the proper head of department or agency. No. 41-98, [December 24, 1998])
SECTION 58. When Leave Without Pay is Not

Allowable. — Leave without pay shall not be granted RULE XVII Government Office Hours
whenever an employee has leave with pay to his credit
except in the case of secondment. SECTION 1. * It shall be the duty of each head of
department or agency to require all officers and
SECTION 59. Seconded Employee on Leave Without employees under him to strictly observe the prescribed
pay from his Mother Agency. — The seconded employee office hours. When the head of office, in the exercise of
shall be on leave without pay from his mother agency for his discretion allows government officials and employees
the duration of his secondment, and during such period, to leave the office during the office hours and not for
he may earn leave credits which is commutable official business, but to attend socials/events/functions
immediately thereafter at and payable by the receiving and/or wakes/interments, the same shall be reflected in
agency. their time cards and charged to their leave credits.
SECTION 60. Effect of Vacation Leave Without Pay SECTION 2. Each head of department or agency shall
on the Grant of Length of Service Step Increment. — For require a daily record of attendance of all the officers and
purposes of computing the length of service for the grant employees under him including those serving in the field
of step increment, approved vacation leave without pay or on the water, to be kept on the proper form and,
for an aggregate of fifteen (15) days shall not interrupt the whenever possible, registered on the bundy clock.
continuity of the three-year service requirement for the
grant of step increment. However, if the total number of Service "in the field" shall refer to service rendered
authorized vacation leave without pay included within outside the office proper and service "on the water" shall
the three-year period exceeds fifteen (15) days, the grant refer to service rendered on board a vessel which is the
of one-step increment will only be delayed for the same usual place of work.
number of days that an official or employee was absent SECTION 3. Chiefs and Assistant Chiefs of agencies
without pay. who are appointed by the President, officers who rank
SECTION 61. Effect of Pending Administrative Case higher than these chiefs and assistant chiefs in the three
Against an Official or Employee. — Where officials or branches of the government, and other presidential
employees have pending formal administrative charges appointees need not punch in the bundy clock, but
against them, no vacation leave with pay shall be granted attendance and all absences of such officers must be
the respondent during the pendency of the case. recorded.


SECTION 4. Falsification or irregularities in the views on current political problems or issues, or from
keeping of time records will render the guilty officer or mentioning the names of candidates for public office
employee administratively liable without prejudice to whom he supports.
criminal prosecution as the circumstances warrant. SECTION 4. No laborers, whether skilled, semi-skilled
SECTION 5. Officers and employees of all or unskilled shall be assigned to perform clerical duties.
departments and agencies except those covered by SECTION 5. No detail or reassignment shall be made
special laws shall render not less than eight hours of work within three months before any election.
a day for five days a week or a total of forty hours a week,
exclusive of time for lunch. As a general rule, such hours SECTION 6. No appointments in the national,
shall be from eight o'clock in the morning to twelve provincial, city and municipal government or in any
o'clock noon and from one o'clock to five o'clock in the branch or instrumentality thereof, including
afternoon on all days except Saturdays, Sundays and government-owned or controlled corporations with
Holidays. original charters shall be made in favor of a relative of the
appointing or recommending authority, or of the chief of
SECTION 6. Flexible working hours may be allowed the bureau or office, or of the persons exercising
subject to the discretion of the head of department or immediate supervision over the appointee.
agency. In no case shall the weekly working hours be
reduced in the event the department or agency adopts Unless otherwise specifically provided by law, as used
the flexi-time schedule in reporting for work. in this Section, the word "relative" and the members of
the family referred to are those related within the third
SECTION 7. In the exigency of the service, or when degree either of consanguinity or of affinity.
necessary by the nature of the work of a particular
agency and upon representations with the Commission The following are exempted from the operation of the
by the department heads concerned, requests for the rules on nepotism: (a) persons employed in a confidential
rescheduling or shifting of work schedule of a particular capacity; (b) teachers; (c) physicians; (d) members of the
agency for a number of working days less than the Armed Forces of the Philippines. Provided however: That
required five days may be allowed provided that in each particular instance full report of such
government officials and employees render a total of appointment shall be made to the Commission.
forty hours a week and provided further that the public is The restriction mentioned in the first paragraph of
assured of core working hours of eight in the morning to this Section shall not be applicable to the case of a
five in the afternoon continuously for the duration of the member of any family who after his or her appointment
entire workweek. to any position in an office or bureau, contracts marriage
SECTION 8. Officers and employees who have with someone in the same office or bureau, in which
incurred tardiness and undertime, regardless of the event the employment or retention therein of both
number of minutes per day, ten (10) times a month for at husband and wife may be allowed.
least two (2) consecutive months during the year or for at Cases of previous appointment which are in
least two (2) months in a semester shall be subject to contravention hereof shall be corrected by transfer, and
disciplinary action. (Amendment of Section 8, Rule XVII of pending such transfer, no promotion or salary increase
the Omnibus Rules Implementing Book V of E.O. No. 292, shall be allowed in favor of the relative or relatives who
CSC Memorandum Circular No. 34-98, [August 11, 1998]) were appointed in violation of these provisions.
SECTION 9. Off-setting of tardiness or absences by SECTION 7. No discrimination shall be exercised,
working for an equivalent number of minutes or hours by threatened or promised against, or in favor of, any person
which an officer or employee has been tardy or absent, examined or to be examined or employed, by reason of
beyond the regular or approved working hours of the his political or religious opinions or affiliations, sex or civil
employees concerned, shall not be allowed. status.
SECTION 10. When the interest of public service so SECTION 8. * No officer or employee under
requires, the daily hours of work for officers and administrative investigation shall be allowed to resign
employees may be extended by the head of the agency pending decision of his case.
concerned, which extension shall be fixed in accordance
with the nature of the work. Provided, That work in excess In case of compulsory retirement, the case shall
of eight (8) hours must be properly compensated. continue to be investigated for purposes of determining
the employees' entitlement to retirement benefits. The
disciplinary authority shall decide the case within 90 days.
RULE XVIII Prohibitions SECTION 9. Such other prohibitions contained in
SECTION 1. No appointive official shall hold any other other laws on administrative matters are deemed
office or employment in the Government or any incorporated herein.
subdivision, agency or instrumentality thereof, including
government-owned or controlled corporations with
original charters or their subsidiaries, unless otherwise RULE XIX Miscellaneous Provisions
allowed by law or by the primary functions of his position. SECTION 1. The Commission shall have authority to
SECTION 2. No elective or appointive public officer or promulgate such regulations in pursuance and in
employee shall receive additional, double, or indirect execution of these Rules.
compensation, unless specifically authorized by law, nor SECTION 2. The Commission shall prescribe all forms
accept without the consent of the Congress, any present, for application, examination, certification, appointment,
emolument, office, or title of any kind from any foreign reports, records and such other forms as may be required
government. under these Rules.
Pensions or gratuities shall not be considered as SECTION 3. The Commission shall collect and charge
additional, double or indirect compensation. fees for civil service examinations, certifications and civil
SECTION 3. No officer or employee in the Civil Service service ratings, service records, training courses, seminars,
including the members of Armed Forces, shall engage workshops in personnel management and other civil
directly or indirectly in any partisan political activity or service matters. For this purpose, the Commission shall
take part in any election except to vote nor shall he use prescribe standard and reasonable rates for such
his official authority or influence, to coerce the political examinations, certifications, training courses, seminars,
activity of any other person or body. and workshops: Provided, That no examination fees shall
be collected in examinations given for the selection of
Nothing herein provided shall be understood to scholars.
prevent any officer or employee from expressing his



SECTION 4. The income of the Commission from fees, Section 1. Title. - This Act shall be known as the "Code
costs for services it may assess and levy, and such other of Conduct and Ethical Standards for Public Officials and
proceeds generated in the performance of its functions Employees."
shall be directly utilized by the Commission for its Section 2. Declaration of Policies. - It is the policy of
expense. the State to promote a high standard of ethics in public
SECTION 5. Members of the Commission, chiefs of service. Public officials and employees shall at all times be
offices, and other officers and employees of the accountable to the people and shall discharge their
Commission designated in writing by the Chairman may duties with utmost responsibility, integrity, competence,
administer such oath as may be necessary in the and loyalty, act with patriotism and justice, lead modest
transactions of official business and administer oaths and lives, and uphold public interest over personal interest.
take testimony in connection with any authorized Section 3. Definition of Terms. - As used in this Act,
investigation. Attorneys of the Commission may the term:
prosecute and defend cases in connection with the
functions of the Commission before any court or tribunal. (a) "Government" includes the National Government,
the local governments, and all other instrumentalities,
SECTION 6. No person employed in the Civil Service in agencies or branches of the Republic of the Philippines
violation of the Civil Service law and rules shall be entitled including government-owned or controlled corporations,
to receive pay from the government. The appointing and their subsidiaries..net
authority responsible for such unlawful employment shall
be personally liable for the pay that would have accrued (b) "Public Officials" includes elective and appointive
had the employment been lawful, and the disbursing officials and employees, permanent or temporary,
officials shall make payment to the employee of such whether in the career or non-career service, including
amount from the salary of the officers so liable. military and police personnel, whether or not they receive
compensation, regardless of amount.
SECTION 7. Except as may otherwise be provided by
law, it shall be unlawful for a treasurer or other fiscal (c) "Gift" refers to a thing or a right to dispose of
officer to draw or retain from the salary due an officer or gratuitously, or any act or liberality, in favor of another
employee any amount for contribution or payment of who accepts it, and shall include a simulated sale or an
obligations other than those due the government or its ostensibly onerous disposition thereof. It shall not include
instrumentalities. an unsolicited gift of nominal or insignificant value not
given in anticipation of, or in exchange for, a favor from a
SECTION 8. Whoever makes any appointment or public official or employee.
employs any person in violation of any provision of these
Rules or whoever commits fraud, deceit or intentional (d) "Receiving any gift" includes the act of accepting
misrepresentation of material facts concerning other civil directly or indirectly, a gift from a person other than a
service matters, or whoever violates, refuses or neglects to member of his family or relative as defined in this Act,
comply with any of such provisions or rules, shall upon even on the occasion of a family celebration or national
conviction be punished by a fine not exceeding one festivity like Christmas, if the value of the gift is neither
thousand pesos or by imprisonment not exceeding six (6) nominal nor insignificant, or the gift is given in
months, or both such fine and imprisonment in the anticipation of, or in exchange for, a favor.
discretion of the court. (e) "Loan" covers both simple loan and commodatum
SECTION 9. If any section or part of these Rules shall as well as guarantees, financing arrangements or
be held to be invalid, the remaining provisions shall be accommodations intended to ensure its approval.
given full force and effect as completely as if the part held (f) "Substantial stockholder" means any person who
invalid had not been included therein. owns, directly or indirectly, shares of stock sufficient to
SECTION 10. All existing Civil Service rules and elect a director of a corporation. This term shall also apply
regulations, Circulars and Memoranda inconsistent with to the parties to a voting trust.
these Rules are hereby repealed or amended accordingly. (g) "Family of public officials or employees" means
SECTION 11. These Rules shall take effect 30 days after their spouses and unmarried children under eighteen (18)
the completion of its publication in the Official Gazette or years of age.
in a newspaper of general circulation. (h) "Person" includes natural and juridical persons
(Omnibus Rules Implementing Book V of Executive unless the context indicates otherwise.
Order No. 292 and Other Pertinent Civil Service Laws, (i) "Conflict of interest" arises when a public official or
[1995]) employee is a member of a board, an officer, or a
substantial stockholder of a private corporation or owner
or has a substantial interest in a business, and the interest
RA No 6713 | Code of Conduct and of such corporation or business, or his rights or duties
therein, may be opposed to or affected by the faithful
Ethical Standards for Public Officials performance of official duty.
and Employees (j) "Divestment" is the transfer of title or disposal of
interest in property by voluntarily, completely and
actually depriving or dispossessing oneself of his right or
February 20, 1989 title to it in favor of a person or persons other than his
spouse and relatives as defined in this Act.
AN ACT ESTABLISHING A CODE OF CONDUCT AND
ETHICAL STANDARDS FOR PUBLIC OFFICIALS AND (k) "Relatives" refers to any and all persons related to a
EMPLOYEES, TO UPHOLD THE TIME-HONORED public official or employee within the fourth civil degree
PRINCIPLE OF PUBLIC OFFICE BEING A PUBLIC TRUST, of consanguinity or affinity, including bilas, inso and
GRANTING INCENTIVES AND REWARDS FOR balae.
EXEMPLARY SERVICE, ENUMERATING PROHIBITED Section 4. Norms of Conduct of Public Officials and
ACTS AND TRANSACTIONS AND PROVIDING Employees. - (A) Every public official and employee shall
PENALTIES FOR VIOLATIONS THEREOF AND FOR observe the following as standards of personal conduct in
OTHER PURPOSES the discharge and execution of official duties:
Be it enacted by the Senate and House of (a) Commitment to public interest. - Public officials
Representatives of the Philippines in Congress and employees shall always uphold the public interest
assembled:: over and above personal interest. All government
resources and powers of their respective offices must be


employed and used efficiently, effectively, honestly and (a) Act promptly on letters and requests. - All public
economically, particularly to avoid wastage in public officials and employees shall, within fifteen (15) working
funds and revenues. days from receipt thereof, respond to letters, telegrams or
(b) Professionalism. - Public officials and employees other means of communications sent by the public. The
shall perform and discharge their duties with the highest reply must contain the action taken on the request.
degree of excellence, professionalism, intelligence and (b) Submit annual performance reports. - All heads or
skill. They shall enter public service with utmost devotion other responsible officers of offices and agencies of the
and dedication to duty. They shall endeavor to discourage government and of government-owned or controlled
wrong perceptions of their roles as dispensers or peddlers corporations shall, within forty-five (45) working days
of undue patronage. from the end of the year, render a performance report of
(c) Justness and sincerity. - Public officials and the agency or office or corporation concerned. Such
employees shall remain true to the people at all times. report shall be open and available to the public within
They must act with justness and sincerity and shall not regular office hours.
discriminate against anyone, especially the poor and the (c) Process documents and papers expeditiously. - All
underprivileged. They shall at all times respect the rights official papers and documents must be processed and
of others, and shall refrain from doing acts contrary to completed within a reasonable time from the preparation
law, good morals, good customs, public policy, public thereof and must contain, as far as practicable, not more
order, public safety and public interest. They shall not than three (3) signatories therein. In the absence of duly
dispense or extend undue favors on account of their authorized signatories, the official next-in-rank or officer
office to their relatives whether by consanguinity or in charge shall sign for and in their behalf.
affinity except with respect to appointments of such (d) Act immediately on the public's personal
relatives to positions considered strictly confidential or as transactions. - All public officials and employees must
members of their personal staff whose terms are attend to anyone who wants to avail himself of the
coterminous with theirs. services of their offices and must, at all times, act
(d) Political neutrality. - Public officials and employees promptly and expeditiously.
shall provide service to everyone without unfair (e) Make documents accessible to the public. - All
discrimination and regardless of party affiliation or public documents must be made accessible to, and
preference. readily available for inspection by, the public within
(e) Responsiveness to the public. - Public officials and reasonable working hours.
employees shall extend prompt, courteous, and adequate Section 6. System of Incentives and Rewards. - A
service to the public. Unless otherwise provided by law or system of annual incentives and rewards is hereby
when required by the public interest, public officials and established in order to motivate and inspire public
employees shall provide information of their policies and servants to uphold the highest standards of ethics. For
procedures in clear and understandable language, ensure this purpose, a Committee on Awards to Outstanding
openness of information, public consultations and Public Officials and Employees is hereby created
hearings whenever appropriate, encourage suggestions, composed of the following: the Ombudsman and
simplify and systematize policy, rules and procedures, Chairman of the Civil Service Commission as
avoid red tape and develop an understanding and Co-Chairmen, and the Chairman of the Commission on
appreciation of the socio-economic conditions prevailing Audit, and two government employees to be appointed
in the country, especially in the depressed rural and by the President, as members.
urban areas.
It shall be the task of this Committee to conduct a
(f) Nationalism and patriotism. - Public officials and periodic, continuing review of the performance of public
employees shall at all times be loyal to the Republic and officials and employees, in all the branches and agencies
to the Filipino people, promote the use of locally of Government and establish a system of annual
produced goods, resources and technology and incentives and rewards to the end that due recognition is
encourage appreciation and pride of country and people. given to public officials and employees of outstanding
They shall endeavor to maintain and defend Philippine merit on the basis of the standards set forth in this Act.
sovereignty against foreign intrusion.
The conferment of awards shall take into account,
(g) Commitment to democracy. - Public officials and among other things, the following: the years of service
employees shall commit themselves to the democratic and the quality and consistency of performance, the
way of life and values, maintain the principle of public obscurity of the position, the level of salary, the unique
accountability, and manifest by deeds the supremacy of and exemplary quality of a certain achievement, and the
civilian authority over the military. They shall at all times risks or temptations inherent in the work. Incentives and
uphold the Constitution and put loyalty to country above rewards to government officials and employees of the
loyalty to persons or party. year to be announced in public ceremonies honoring
(h) Simple living. - Public officials and employees and them may take the form of bonuses, citations,
their families shall lead modest lives appropriate to their directorships in government-owned or controlled
positions and income. They shall not indulge in corporations, local and foreign scholarship grants, paid
extravagant or ostentatious display of wealth in any form. vacations and the like. They shall likewise be
(B) The Civil Service Commission shall adopt positive automatically promoted to the next higher position with
measures to promote (1) observance of these standards the commensurate salary suitable to their qualifications.
including the dissemination of information programs and In case there is no next higher position or it is not vacant,
workshops authorizing merit increases beyond regular said position shall be included in the budget of the office
progression steps, to a limited number of employees in the next General Appropriations Act. The Committee
recognized by their office colleagues to be outstanding in on Awards shall adopt its own rules to govern the
their observance of ethical standards; and (2) continuing conduct of its activities.
research and experimentation on measures which Section 7. Prohibited Acts and Transactions. - In
provide positive motivation to public officials and addition to acts and omissions of public officials and
employees in raising the general level of observance of employees now prescribed in the Constitution and
these standards. existing laws, the following shall constitute prohibited
Section 5. Duties of Public Officials and Employees. - acts and transactions of any public official and employee
In the performance of their duties, all public officials and and are hereby declared to be unlawful:
employees are under obligation to: (a) Financial and material interest. - Public officials
and employees shall not, directly or indirectly, have any


financial or material interest in any transaction requiring casual or temporary workers, shall file under oath their
the approval of their office. Statement of Assets, Liabilities and Net Worth and a
(b) Outside employment and other activities related Disclosure of Business Interests and Financial
thereto. - Public officials and employees during their Connections and those of their spouses and unmarried
incumbency shall not: children under eighteen (18) years of age living in their
households.
(1) Own, control, manage or accept employment as
officer, employee, consultant, counsel, broker, agent, The two documents shall contain information on the
trustee or nominee in any private enterprise regulated, following:
supervised or licensed by their office unless expressly (a) real property, its improvements, acquisition costs,
allowed by law; assessed value and current fair market value;
(2) Engage in the private practice of their profession (b) personal property and acquisition cost;
unless authorized by the Constitution or law, provided, (c) all other assets such as investments, cash on hand
that such practice will not conflict or tend to conflict with or in banks, stocks, bonds, and the like;
their official functions; or
(d) liabilities, and;
(3) Recommend any person to any position in a
private enterprise which has a regular or pending official (e) all business interests and financial connections.
transaction with their office. The documents must be filed:
These prohibitions shall continue to apply for a period (a) within thirty (30) days after assumption of office;
of one (1) year after resignation, retirement, or separation
from public office, except in the case of subparagraph (b) (b) on or before April 30, of every year thereafter; and
(2) above, but the professional concerned cannot practice (c) within thirty (30) days after separation from the
his profession in connection with any matter before the service.
office he used to be with, in which case the one-year
prohibition shall likewise apply. All public officials and employees required under this
section to file the aforestated documents shall also
(c) Disclosure and/or misuse of confidential execute, within thirty (30) days from the date of their
information. - Public officials and employees shall not use assumption of office, the necessary authority in favor of
or divulge, confidential or classified information officially the Ombudsman to obtain from all appropriate
known to them by reason of their office and not made government agencies, including the Bureau of Internal
available to the public, either: Revenue, such documents as may show their assets,
(1) To further their private interests, or give undue liabilities, net worth, and also their business interests and
advantage to anyone; or financial connections in previous years, including, if
possible, the year when they first assumed any office in
(2) To prejudice the public interest. the Government.
(d) Solicitation or acceptance of gifts. - Public officials Husband and wife who are both public officials or
and employees shall not solicit or accept, directly or employees may file the required statements jointly or
indirectly, any gift, gratuity, favor, entertainment, loan or separately.
anything of monetary value from any person in the
course of their official duties or in connection with any The Statements of Assets, Liabilities and Net Worth
operation being regulated by, or any transaction which and the Disclosure of Business Interests and Financial
may be affected by the functions of their office. Connections shall be filed by:
As to gifts or grants from foreign governments, the (1) Constitutional and national elective officials, with
Congress consents to: the national office of the Ombudsman;
(i) The acceptance and retention by a public official or (2) Senators and Congressmen, with the Secretaries
employee of a gift of nominal value tendered and of the Senate and the House of Representatives,
received as a souvenir or mark of courtesy; respectively; Justices, with the Clerk of Court of the
Supreme Court; Judges, with the Court Administrator;
(ii) The acceptance by a public official or employee of and all national executive officials with the Office of the
a gift in the nature of a scholarship or fellowship grant or President.
medical treatment; or
(3) Regional and local officials and employees, with
(iii) The acceptance by a public official or employee of the Deputy Ombudsman in their respective regions;
travel grants or expenses for travel taking place entirely
outside the Philippine (such as allowances, (4) Officers of the armed forces from the rank of
transportation, food, and lodging) of more than nominal colonel or naval captain, with the Office of the President,
value if such acceptance is appropriate or consistent with and those below said ranks, with the Deputy
the interests of the Philippines, and permitted by the Ombudsman in their respective regions; and
head of office, branch or agency to which he belongs. (5) All other public officials and employees, defined in
The Ombudsman shall prescribe such regulations as Republic Act No. 3019, as amended, with the Civil Service
may be necessary to carry out the purpose of this Commission.
subsection, including pertinent reporting and disclosure (B) Identification and disclosure of relatives. - It shall
requirements. be the duty of every public official or employee to identify
Nothing in this Act shall be construed to restrict or and disclose, to the best of his knowledge and
prohibit any educational, scientific or cultural exchange information, his relatives in the Government in the form,
programs subject to national security requirements. manner and frequency prescribed by the Civil Service
Commission.
Section 8. Statements and Disclosure. - Public
officials and employees have an obligation to accomplish (C) Accessibility of documents. - (1) Any and all
and submit declarations under oath of, and the public statements filed under this Act, shall be made available
has the right to know, their assets, liabilities, net worth for inspection at reasonable hours.
and financial and business interests including those of (2) Such statements shall be made available for
their spouses and of unmarried children under eighteen copying or reproduction after ten (10) working days from
(18) years of age living in their households. the time they are filed as required by law.
(A) Statements of Assets and Liabilities and Financial (3) Any person requesting a copy of a statement shall
Disclosure. - All public officials and employees, except be required to pay a reasonable fee to cover the cost of
those who serve in an honorary capacity, laborers and


reproduction and mailing of such statement, as well as (c) Private individuals who participate in conspiracy as
the cost of certification. co-principals, accomplices or accessories, with public
(4) Any statement filed under this Act shall be officials or employees, in violation of this Act, shall be
available to the public for a period of ten (10) years after subject to the same penal liabilities as the public officials
receipt of the statement. After such period, the statement or employees and shall be tried jointly with them.
may be destroyed unless needed in an ongoing (d) The official or employee concerned may bring an
investigation. action against any person who obtains or uses a report
(D) Prohibited acts. - It shall be unlawful for any for any purpose prohibited by Section 8 (D) of this Act.
person to obtain or use any statement filed under this Act The Court in which such action is brought may assess
for: against such person a penalty in any amount not to
exceed twenty-five thousand pesos (P25,000). If another
(a) any purpose contrary to morals or public policy; or sanction hereunder or under any other law is heavier, the
(b) any commercial purpose other than by news and latter shall apply.
communications media for dissemination to the general Section 12. Promulgation of Rules and Regulations,
public. Administration and Enforcement of this Act. - The Civil
Section 9. Divestment. - A public official or employee Service Commission shall have the primary responsibility
shall avoid conflicts of interest at all times. When a for the administration and enforcement of this Act. It shall
conflict of interest arises, he shall resign from his position transmit all cases for prosecution arising from violations
in any private business enterprise within thirty (30) days of this Act to the proper authorities for appropriate action:
from his assumption of office and/or divest himself of his Provided, however, That it may institute such
shareholdings or interest within sixty (60) days from such administrative actions and disciplinary measures as may
assumption. be warranted in accordance with law. Nothing in this
provision shall be construed as a deprivation of the right
The same rule shall apply where the public official or of each House of Congress to discipline its Members for
employee is a partner in a partnership. disorderly behavior.
The requirement of divestment shall not apply to The Civil Service Commission is hereby authorized to
those who serve the Government in an honorary capacity promulgate rules and regulations necessary to carry out
nor to laborers and casual or temporary workers. the provisions of this Act, including guidelines for
Section 10. Review and Compliance Procedure. - (a) individuals who render free voluntary service to the
The designated Committees of both Houses of the Government. The Ombudsman shall likewise take steps
Congress shall establish procedures for the review of to protect citizens who denounce acts or omissions of
statements to determine whether said statements which public officials and employees which are in violation of
have been submitted on time, are complete, and are in this Act.
proper form. In the event a determination is made that a Section 13. Provisions for More Stringent Standards. -
statement is not so filed, the appropriate Committee shall Nothing in this Act shall be construed to derogate from
so inform the reporting individual and direct him to take any law, or any regulation prescribed by any body or
the necessary corrective action. agency, which provides for more stringent standards for
(b) In order to carry out their responsibilities under its official and employees.
this Act, the designated Committees of both Houses of Section 14. Appropriations. - The sum necessary for
Congress shall have the power within their respective the effective implementation of this Act shall be taken
jurisdictions, to render any opinion interpreting this Act, from the appropriations of the Civil Service Commission.
in writing, to persons covered by this Act, subject in each Thereafter, such sum as may be needed for its continued
instance to the approval by affirmative vote of the implementation shall be included in the annual General
majority of the particular House concerned. Appropriations Act.
The individual to whom an opinion is rendered, and Section 15. Separability Clause. - If any provision of
any other individual involved in a similar factual situation, this Act or the application of such provision to any person
and who, after issuance of the opinion acts in good faith or circumstance is declared invalid, the remainder of the
in accordance with it shall not be subject to any sanction Act or the application of such provision to other persons
provided in this Act. or circumstances shall not be affected by such
(c) The heads of other offices shall perform the duties declaration.
stated in subsections (a) and (b) hereof insofar as their Section 16. Repealing Clause. - All laws, decrees and
respective offices are concerned, subject to the approval orders or parts thereof inconsistent herewith, are deemed
of the Secretary of Justice, in the case of the Executive repealed or modified accordingly, unless the same
Department and the Chief Justice of the Supreme Court, provide for a heavier penalty.
in the case of the Judicial Department.
Section 17. Effectivity. - This Act shall take effect after
Section 11. Penalties. - (a) Any public official or thirty (30) days following the completion of its publication
employee, regardless of whether or not he holds office or in the Official Gazette or in two (2) national newspapers of
employment in a casual, temporary, holdover, permanent general circulation.
or regular capacity, committing any violation of this Act
shall be punished with a fine not exceeding the Approved, February 20, 1989.
equivalent of six (6) months' salary or suspension not
exceeding one (1) year, or removal depending on the Rules Implementing The Code of
gravity of the offense after due notice and hearing by the
appropriate body or agency. If the violation is punishable Conduct and Ethical Standards for
by a heavier penalty under another law, he shall be Public Officials and Employees
prosecuted under the latter statute. Violations of Sections
7, 8 or 9 of this Act shall be punishable with
imprisonment not exceeding five (5) years, or a fine not April 21, 1989
exceeding five thousand pesos (P5,000), or both, and, in Pursuant to the provisions of Section 12 of Republic
the discretion of the court of competent jurisdiction, Act No. 6713, otherwise known as the "Code of Conduct
disqualification to hold public office. and Ethical Standards for Public Officials and Employees,"
approved on February 20, 1989, and which took effect on
(b) Any violation hereof proven in a proper March 25, 1989, conformably to Section 17 thereof, the
administrative proceeding shall be sufficient cause for following Rules are hereby adopted in order to carry out
removal or dismissal of a public official or employee, even the provisions of the said Code:
if no criminal prosecution is instituted against him.


RULE I Coverage Each department, office or agency shall develop a

service guide or its functional equivalent which shall be
SECTION 1. These Rules shall cover all officials and regularly updated and made available to the transacting
employees in the government, elective and appointive, public. A workflow chart showing procedures or flow of
permanent or temporary, whether in the career or documents shall likewise be posted in conspicuous
non-career service, including military and police places in the department, office or agency for the
personnel, whether or not they receive compensation, information and guidance of all concerned.
regardless of amount.
Upon request, the Department of Budget and
RULE II Interpretation Management shall assist departments, offices and
agencies in the evaluation and adoption of work systems
SECTION 1. These Rules shall be interpreted in the and procedures that will institutionalize a management
light of the Declaration of Policy found in Section 2 of the climate conducive to public accountability.
Code:
SECTION 5. Every department, office and agency shall
"It is the policy of the State to promote a high consult the public they serve for the purpose of gathering
standard of ethics in public service. Public officials and feedback and suggestions on the efficiency, effectiveness
employees shall at all times be accountable to the people and economy of services. They shall establish
and shall discharge their duties with utmost mechanisms to ensure the conduct of public
responsibility, integrity, competence and loyalty, act with consultations and hearings.
patriotism and justice, lead modest lives, and uphold
public interest over personal interest." SECTION 6. Every department, office and agency shall
continuously conduct research and experimentation on
RULE III Reforms on Public Administrative measures and adopt innovative programs which will
Systems provide motivation to officials and employees in raising
the level of observance of public service ethical standards.
SECTION 1. Every department, office and agency shall,
as soon as practicable and in no case later than ninety SECTION 7. Every department, office and agency
(90) days from the effectivity of these Rules, start shall, in consultation with the Office of the Ombudsman,
conducting value development programs for its officials appoint or designate a resident Ombudsman who shall
and employees in order to strengthen their commitment act immediately on all requests for public assistance
to public service and help promote the primacy of public referred to him by the Ombudsman and his Deputies. He
interest over personal interest in the performance of their shall be held accountable for the disposition of all
duties. Such programs and other parallel efforts on value requests for assistance.
development shall include, among other things, the
following subjects: SECTION 8. Government officials shall make
themselves available to their staff for consultations and
(a) Ethical and moral values; dialogues.
(b) Rights, duties and responsibilities of public RULE IV Transparency of Transactions and
servants; Access to Information
(c) Nationalism and patriotism; SECTION 1. Subject to reasonable conditions
prescribed by law, the State adopts and implements a
(d) Justice and human rights;
policy of full public disclosure of all its transactions
(e) Democracy in a free and just society; involving public interest.
(f) Philippine history, culture and tradition; and SECTION 2. It is the responsibility of heads of
departments, offices and agencies to establish measures
(g) Socio-economic conditions prevailing in the and standards that will ensure transparency of and
country, especially in the depressed areas, and the need openness in public transactions in their respective offices,
for a Code of Conduct and Ethical Standards. such as in biddings, purchases, other financial
transactions including contracts, status of projects, and
Continuing refresher courses and seminars and/or all other matters involving public interest.
workshops to promote a high standard of ethics in public
service shall be conducted. They shall establish information systems that will
inform the public of the following: (a) policies, rules, and
SECTION 2. Professional, scientific, technical trainings procedures; (b) work programs, projects, and
and education programs shall enhance to the highest performance targets; (c) performance reports; and (d) all
degree, professionalism, excellence, intelligence and skills other documents as may hereafter be classified as public
in the performance and discharge of duties and information.
responsibilities of officials and employees. These
programs shall be conducted in all offices of the Such information shall be utilized solely for the
government and may include subjects that are purpose of informing the public of such policies;
enumerated in the preceding section. programs and accomplishments, and not to build the
public image of any official or employee or to advance his
SECTION 3. It is the responsibility of every head of own personal interest.
department, office and agency to ensure that officials
and employees attend the value development program SECTION 3. Every department, office or agency shall
and participate in parallel value development efforts. provide official information, records or documents to any
requesting public, except if:
SECTION 4. Every department, office and agency
shall conduct continuing studies and analyses of their (a) such information, record or document must be
work systems and procedures to improve delivery of kept secret in the interest of national defense or security
public services. Towards this end, such studies and or the conduct of foreign affairs;
analyses shall: (1) identify systems and procedures that
lead or contribute to negative bureaucratic behavior; (2) (b) such disclosure would put the life and safety of an
simplify rules and procedures to avoid red tape; and (3) individual in imminent danger;
devise or adopt systems and procedures that promote
(c) the information, record or document sought falls
official and employee morale and satisfaction.
within the concepts of established privilege or recognized


exceptions as may be provided by law or settled policy or dispense or extend undue favors on account of their
jurisprudence; * office to their relatives, whether by consanguinity or
affinity, except with respect to appointments of such
(d) such information, record or document comprises relatives to positions considered strictly confidential or as
drafts of decisions, orders, rulings, policy decisions, members of their personal staff whose terms are
memoranda, etc.; coterminous with theirs.
(e) it would disclose information of a personal nature (d) Political neutrality — Officials and employees shall
where disclosure would constitute a clearly unwarranted provide service to everyone without unfair discrimination
invasion of personal privacy; ** regardless of party affiliation or preference.
(f) it would disclose investigatory records compiled for (e) Responsiveness to the public — Officials and
law enforcement purposes, or information which if employees shall extend prompt, courteous, and adequate
written would be contained in such records, but only to service to the public. Unless otherwise provided by law or
the extent that the production of such records or when required by the public interest, officials and
information would (i) interfere with enforcement employees shall provide information on their policies and
proceedings, (ii) deprive a person of a right to a fair trial or procedures in clear and understandable language, ensure
an impartial adjudication, (iii) disclose the identity of a openness of information, public consultation and
confidential source and, in the case of a record compiled hearings whenever appropriate, encourage suggestions,
by a criminal law enforcement authority in the course of a simplify and systematize policy, rules and procedures,
criminal investigation, or by an agency conducting a avoid red tape and develop an understanding and
lawful national security intelligence investigation, appreciation of the socio-economic conditions prevailing
confidential information furnished only by the in the country, especially in the depressed rural and
confidential source, or (iv) unjustifiably disclose urban areas.
investigative techniques and procedures; or
(f) Nationalism and patriotism — Officials and
(g) it would disclose information the premature employees shall at all times be loyal to the Republic and
disclosure of which would (i) in the case of a department, to the Filipino people, promote the use of locally
office or agency which regulates currencies, securities, produced goods, resources and technology and
commodities, or financial institutions, be likely to lead to encourage appreciation and pride of country and people.
significant financial speculation in currencies, securities, They shall endeavor to maintain and defend Philippine
or commodities, or significantly endanger the stability of sovereignty against foreign intrusion.
any financial institution; or (ii) in the case of any
department, office or agency, be likely or significantly to (g) Commitment to democracy — Officials and
frustrate implementation of a proposed official action, employees shall commit themselves to the democratic
except that subparagraph (f) (ii) shall not apply in any way of life and values, maintain the principle of public
instance where the department, office or agency has accountability and manifest by deeds the supremacy of
already disclosed to the public the content or nature of its civilian authority over the military. They shall at all times
proposed action, or where the department, office or uphold the Constitution and put loyalty to country above
agency is required by law to make such disclosure on its loyalty to persons or party.
own initiative prior to taking final official action on such
proposal. (h) Simple living — Officials and employees and their
families shall lead modest lives appropriate to their
SECTION 4. Every head of department, office and positions and income. They shall not indulge in
agency shall establish information systems and networks extravagant or ostentatious display of wealth in any form.
that will affect the widest possible dissemination of
information regarding the provisions of the Code, and the SECTION 2. The following criteria shall be considered
policies and programs relative thereto. in the conferment of awards:
RULE V Incentives and Rewards System (a) Years of service;
SECTION 1. Incentives and rewards shall be granted (b) Quality and consistency of performance;
officials and employees who have demonstrated
(c) Obscurity of the position;
exemplary service and conduct on the basis of their
observance of the norms of conduct laid down in Section (d) Level of salary;
4 of the Code, namely:
(e) Unique and exemplary quality of achievement;
(a) Commitment to public interest — Officials and
employees shall always uphold the public interest over (f) Risk or temptation inherent in the work; and
personal interest. All government resources and powers
of their respective departments, offices and agencies (g) Any similar circumstances or considerations in
must be employed and used efficiently, effectively, favor of the particular awardee.
honestly and economically, particularly to avoid wastage
in public funds and revenues. SECTION 3. Incentives and rewards to government
officials and employees of the year may take the form of
(b) Professionalism — Officials and employees shall any of the following, as may be determined by the
perform and discharge their duties with the highest Committee on Awards established under the Code:
degree of excellence, professionalism, intelligence and
skill. They shall enter public service with utmost devotion (a) Bonuses; or
and dedication to duty. They shall endeavor to discourage (b) Citations; or
wrong perceptions of their roles as dispensers or peddlers
of undue patronage. (c) Directorships in government-owned or controlled
corporations; or
(c) Justness and sincerity — Officials and employees
shall remain true to the people at all times. They must act (d) Local and foreign scholarships grants; or
with justness and sincerity and shall not discriminate
against anyone, especially the poor and the (e) Paid vacations; and
underprivileged. They shall at all times respect the rights
of others, and shall refrain from doing acts contrary to (f) Automatic promotion to the next higher position
law, good morals, good customs, public policy, public suitable to his qualifications and with commensurate
order, public safety and public interest. They shall not salary; provided, that if there is no next higher position or



it is not vacant, said position shall be included in the next date when the person, whose name and address shall be
budget of the office; except when the creation of a new indicated, can be served without delay. Said person shall
position will result in distortion in the organizational have the right to prompt service upon presentation of
structure of the department, office or agency. Where said ticket number.
there is no next higher position immediately available, a
salary increase equivalent to the next higher position SECTION 3. In case of written requests, petitions, or
shall be given and incorporated in the base pay. When a motions, sent by means of letters, telegrams, or the like,
new position is created, that which is vacated shall be the official or employee in charge shall act on the same
deemed abolished. within fifteen (15) working days from receipt thereof,
provided that:
The grants of awards shall be governed by the merit
and fitness principle. (a) If the communication is within the jurisdiction of
the office or agency, the official or employee must:
SECTION 4. (a) The System shall be administered by a
Committee on Awards for Outstanding Public Officials (1) Write a note or letter of acknowledgment where
and Employees composed of: the matter is merely routinary or the action desired may
be acted upon in the ordinary course of business of the
(1) Ombudsman - Co-Chairman department, office or agency, specifying the date when
the matter will be disposed of and the name of the
(2) Chairman, CSC - Co-Chairman official or employee in charge thereof.
(3) Chairman, COA - Member (2) Where the matter is non-routinary or the issues
involved are not simple or ordinary, write a note or letter
(4) Two (2) Government of acknowledgment, informing the interested party,
Employees to be Appointed petitioner or correspondent of the action to be taken or
when such requests, petitions or motions can be acted
by the President - Members upon. Where there is a need to submit additional
information, requirements, or documents, the note or
(b) For this purpose, the Committee shall perform the letter of acknowledgment shall so state, specifying a
following functions and responsibilities: reasonable period of time within which they should be
submitted, and the name of the particular official or
(1) Conduct a periodic, continuing review of employee in charge thereof. When all the documents or
performance of officials and employees in all requirements have been submitted to the satisfaction of
departments, offices and agencies; the department, office or agency concerned, the
particular official or employee in charge shall inform the
(2) Establish a system of annual incentives and
interested party, petitioner, or correspondent of the
rewards to the end that due recognition is given to
action to be taken and when such action or disposition
officials and employees of outstanding merit on the basis
can be expected, barring unforeseen circumstances.
of standards set forth in Section 2, Rule V hereof;
(b) If communication is outside its jurisdiction, the
(3) Determine the form of rewards to be granted;
official or employee must:
(4) Formulate and adopt its own rules to govern the
(1) Refer the letter, petition, telegram, or verbal
conduct of its activities, which shall include guidelines for
request to the proper department, office or agency.
evaluating nominees, the mechanism for recognizing the
awardees in public ceremonies and the creation of (2) Acknowledge the communication by means of a
sub-committees. note or letter, informing the interested party, petitioner,
or correspondent of the action taken and attaching a
(c) In the evaluation of nominees, the Committee may
copy of the letter of referral to the proper department,
be assisted by technical experts selected from the
office or agency.
government and the private sectors.
The department, office and agency to which the
SECTION 5. The Civil Service Commission shall provide
letter, petition, telegram or verbal request was referred for
secretariat services to the Committee.
appropriate action must take action in accordance with
SECTION 6. Nothing herein provided shall inhibit any subsection (a), pars. 1 and 2 hereof.
department, office or agency from instituting its own
The period of fifteen (15) working days herein
rewards program in addition to those provided by, but
provided shall be counted from the date of receipt of the
not inconsistent with, these Rules.
written or verbal communication by the department,
SECTION 7. The budget to cover all expenses in the office or agency concerned.
implementation of this Rule shall be incorporated in the
SECTION 4. All official papers and documents must
appropriation of the Civil Service Commission.
be processed and completed within a reasonable time
from the preparation thereof. Reasonable time shall be
RULE VI Duties of Public Officials and determined in accordance with the following rules:
Employees
(a) When the law or the applicable rule issued in
SECTION 1. As a general rule, when a request or accordance therewith prescribes a period within which a
petition, whether written or verbal, can be disposed of decision is to be rendered or an action taken, the same
promptly and expeditiously, the official or employee in shall be followed;
charge to whom the same is presented shall do so
immediately, without discrimination, and in no case (b) When the law or the applicable rule issued in
beyond fifteen (15) working days from receipt of the accordance therewith does not prescribe a period, the
request or petition. head of department, office or agency shall issue rules and
regulations prescribing, among other things, what is
SECTION 2. In departments, offices or agencies that reasonable time, taking into account the following
are usually swamped with persons calling for a particular factors:
type of service, the head of the department, office or
agency shall devise a mechanism so as to avoid long (1) Nature, simplicity or complexity of the subject
queues, such as by giving each person a ticket number matter of the official papers or documents processed by
duly countersigned which shall specify the time and the said department, office or agency;


(2) Completeness or inadequacy of requirements or of credit or pay, temporary laborers and casual or temporary
data and information necessary for decision or action; and contractual workers, shall file under oath their
statement of assets, liabilities and net worth and a
(3) Lack of resources caused by circumstances disclosure of business interests and financial connections
beyond the control of the department, office or agency or including those of their spouses and unmarried children
official or employee concerned; under eighteen (18) years of age living in their
households, in the prescribed form, Annex A.
(4) Legal constraints such as restraining orders and
injunctions issued by proper judicial, quasi-judicial or (a) Contents of Statement
administrative authorities;
(1) The Statement of Assets and Liabilities and Net
(5) Fault, failure or negligence of the party concerned Worth shall contain information on the following:
which renders decision or action not possible or
premature; and (a) real property, its improvements, acquisition costs,
assessed value, and current fair market value;
(6) Fortuitous events or force majeure.
(b) personal property and acquisition cost;
SECTION 5. Except as otherwise provided by law or
regulation, and as far as practicable, any written action or (c) all other assets such as investments, cash on hand
decision must contain not more than three (3) initials or or in banks, stocks, bonds, and the like; and
signatures. In the absence of the duly authorized
signatory, the official next-in-rank or officer-in-charge or (d) All financial liabilities, both current and long-term.
the person duly authorized shall sign for and in his behalf.
(2) The Disclosure of Business Interests and Financial
The head of department, office or agency shall Connections shall contain information on any existing
prescribe, through an appropriate office order, the rules interests in, or any existing connections with, any
on the proper authority to sign in the absence of the business enterprises or entities, whether as proprietor,
regular signatory, as follows: investor, promoter, partner, shareholder, officer,
managing director, executive, creditor, lawyer, legal
(1) If there is only one official next in rank, he shall consultant or adviser, financial or business consultant,
automatically be the signatory; accountant, auditor, and the like, the names and
addresses of the business enterprises or entities, the
(2) If there are two or more officials next in rank, the dates when such interests or connections were
appropriate office order shall prescribe the order of established, and such other details as will show the
priority among the officials next in rank within the same nature of the interests or connections.
organizational unit; or
(b) When to File
(3) If there is no official next in rank present and
available, the head of department, office or agency shall The above documents under the Code must be filed:
designate an officer-in-charge from among those next
lower in rank in the same organizational unit. (1) within thirty (30) days after assumption of office,
statements of which must be reckoned as of his first day
SECTION 6. All public documents must be made of service;
accessible to, and readily available for inspection by, the
public during working hours, except those provided in (2) on or before April 30 of every year thereafter,
Section 3, Rule IV. statements of which must be reckoned as of the end of
the preceding year; or
SECTION 7. All heads or other responsible officers of
departments, offices and agencies of the government (3) within thirty (30) days after separation from the
and of government-owned or controlled corporations service, statements of which must be reckoned as of his
shall, within forty-five (45) working days from the end of last day of office.
the year, render a full and complete report of
performance and accomplishments, as prescribed by (c) Where to File
existing laws and regulations. The Statement of Assets, Liabilities and Network and
Another report of compliance with the provisions of the Disclosure of Business Interest and Financial
the Code and these Rules shall be prepared and Connections shall be filed by OFFICIALS AND
submitted to the Civil Service Commission. The EMPLOYEES at the Offices indicated opposite their
Commission may require officials to provide additional positions:
information or furnish documents, if necessary.
WHERE TO FILE OFFICIAL/EMPLOYEE CONCERNED
SECTION 8. Officials and employees and their families
shall lead modest and simple lives appropriate to their National Office of President and Vice-President OF
positions and income. They shall not indulge in the Ombudsman THE PHILIPPINES, CHAIRMEN AND
extravagant or ostentatious display of wealth in any form. COMMISSIONERS OF Constitutional
COMMISSIONS & OFFICES
Basically, modest and simple living means
maintaining a standard of living within the public official Secretary of the Senators
or employee's visible means of income as correctly Senate
disclosed in his income tax returns, annual statement of
assets, liabilities and net worth and other documents Secretary General Congressmen
relating to financial and business interests and of the House of
connections. Representatives
Public funds and property for official use and purpose Clerk of Court of Justices OF THE SUPREME COURT,
shall be utilized with the diligence of a good father of a the Supreme COURT OF APPEALS,
family. Court SANDIGANBAYAN AND COURT OF
TAX APPEAL
RULE VII Public Disclosure Court Judges OF THE REGIONAL TRIAL
SECTION 1. Every official and employee, except those Administrator METROPOLITAN CIRCUIT TRIAL
who serve in an official honorary capacity, without service

COURT, CITY COURT MUNICIPAL (f) Married couples who are both public officials or
AND SPECIAL COURTS employees may file the required statement jointly or
separately. A joint statement shall be signed by both
Office of the National Executive Officials such as spouses and shall be filed in their respective offices.
President Members of the Cabinet,
Undersecretaries & Assistant The attached revised form (Annex A, Revised 1994) *
Secretaries including the Foreign has been approved by the Civil Service Commission to be
Service Officers (FSO) Heads of used by all concerned effective 1995. This form shall be
Government Owned and Controlled reproduced back to back in one sheet of paper. The
Corporations with original Charters instructions previously printed at the back of the old form
and their subsidiaries, and State shall be reproduced separately for personal use of the
Colleges and Universities, Officers of individual filer. (Amendment to Rules Implementing
the Armed Forces from the rank of R.A. No. 6713, Memorandum Circular No. 20-94, [May
Colonel or Naval Captain 31, 1994])
Deputy Regional Officials and Employees OF SECTION 2. Every official or employee shall identify
Ombudsman in DEPARTMENTS, BUREAUS AND and disclose under oath to the best of his knowledge and
their respective AGENCIES OF THE NATIONAL information, his relatives in the government, up to the
region GOVERNMENT INCLUDING THE fourth civil degree of relationship, either of consanguinity
JUDICIARY AND CONSTITUTIONAL or affinity, including bilas, inso and balae, in the
Commissions and Offices, Regional prescribed form, Annex A, which shall be filed; (a) within
Officials and Employees of thirty (30) days after assumption of office, the information
Government- Owned and Controlled contained therein must be reckoned as of his first day of
Corporations and their subsidiaries office; (b) on or before April 30 of every year thereafter, the
in the region information contained therein must be reckoned as of
All other Officials and Employees of the end of the preceding year; or (c) within thirty (30) days
State Colleges and Universities after separation from the service, the information
Regional Officers below the rank of contained therein must be reckoned as of his last day of
Colonel or Naval Captain including office.
Civilian Personnel of the AFP
Regional Officials and Employees of SECTION 3. (a) Any and all statements filed in
the PNP accordance with the preceding sections shall be made
Provincial Officials and Employees available for public inspection at reasonable hours.
including Governors and
(b) Such statements shall be made available for
Sangguniang Panlalawigan
copying or reproduction after ten (10) working days from
Members
the time they are filed as required by law unless extended
Municipal and City Officials and
for meritorious reasons.
Employees including Mayors,
Vice-mayors, Sangguniang Bayan/ (c) Any duly authorized person requesting a copy of a
Panlungsod Members and Barangay statement shall be required to pay a reasonable fee as
Officials may be determined and prescribed by the Civil Service
Civil Service All other Central Officials and Commission to cover the cost of reproduction and
Commission Employees of Departments, Bureaus mailing of such statement, as well as the cost of
and Agencies of the National certification.
Government including the Judiciary (d) Any statement filed under the Code shall be
and Constitutional Commission and available to the public, subject to the foregoing
offices as well as limitations, for a period of ten (10) years after receipt of
Government-Owned and Controlled the statement. The statement may be destroyed after
Corporations and their subsidiaries such period unless needed in an ongoing investigation.
Appointive Officials and Employees
of the Legislature RULE VIII Review and Compliance Procedures
All Other Central Officers below the
rank of Colonel or Naval Captain as SECTION 1. The following shall have the authority to
well as civilian personnel of the AFP establish compliance procedures for the review of
All other central officials and statements to determine whether said statements have
employees of the PNP been properly accomplished:

(a) In the case of Congress, the designated
(d)Submission Of Sworn Statements. Officials and committees of both Houses of Congress subject to
employees who are required to file their sworn approval by the affirmative vote of the majority of the
statements with the civil service commission must particular House concerned;
accomplish the form (Annex A, revised, 1994) in triplicate
(b) In the case of the Executive Department, the
and submit the original and duplicate copies to the
heads of departments, offices and agencies insofar as
administrative/personnel division/unit in their respective
their respective departments, offices and agencies are
agencies not later than April 30. the chief of the
concerned subject to approval of the Secretary of Justice;
administrative/personnel division/unit must then transmit
on or before 30 June of every year, all original copies of (c) In the case of the Judicial Department, the Chief
the sworn statements they received arranged Justice of the Supreme Court; and
alphabetically and bound with a covering list of filers in
alphabetical order to the: (d) In the case of the Constitutional Commissions and
other Constitutional Offices, the respective Chairman and
Office For Central Personal Records Civil Service members thereof; in the case of the Office of the
Commission Constitution Hills, Batasan Complex Diliman, Ombudsman, the Ombudsman.
Quezon City.
The above officials shall likewise have the authority to
other offices may prescribe a different procedure for render any opinion interpreting the provisions on the
filing. review and compliance procedures in the filing of


statements of assets, liabilities, net worth and disclosure RULE X Grounds for Administrative
of information.
Disciplinary Action
In the event said authorities determine that a SECTION 1. In addition to the grounds for
statement is not properly filed, they shall inform the administrative disciplinary action prescribed under
reporting individual and direct him to take the necessary existing laws, the acts and omissions of any official or
corrective action. employee, whether or not he holds office or employment
The individual to whom an opinion is rendered, and in a casual, temporary, hold-over, permanent or regular
any other individual involved in a similar factual situation, capacity, declared unlawful or prohibited by the Code,
and who, after issuance of the opinion acts in good faith shall constitute grounds for administrative disciplinary
in accordance with it shall not be subject to any sanction action, and without prejudice to criminal and civil
provided in the Code. liabilities provided herein, such as:
(a) Directly or indirectly having financial and material

RULE IX Conflict of Interest and Divestment interest in any transaction requiring the approval of his
SECTION 1. (a) An official or employee shall avoid office. Financial and material interest is defined as a
conflict of interest at all times. pecuniary or proprietary interest by which a person will
gain or lose something;
(b) Conflict of interest occurs:
(b) Owning, controlling, managing or accepting
(1) When the official or employee is: employment as officer, employee, consultant, counsel,
broker, agent, trustee, or nominee in any private
(a) a substantial stockholder; or enterprise regulated, supervised or licensed by his office,
unless expressly allowed by law;
(b) a member of the Board of Directors; or
(c) Engaging in the private practice of his profession
(c) an officer of the corporation; or unless authorized by the Constitution, law or regulation,
(d) an owner or has substantial interest in a business; provided that such practice will not conflict or tend to
or conflict with his official functions;
(e) a partner in a partnership; and (d) Recommending any person to any position in a
private enterprise which has a regular or pending official
(2) The interest of such corporation or business, or his transaction with his office, unless such recommendation
rights or duties therein, are opposed to or affected by the or referral is mandated by (1) law, or (2) international
faithful performance of official duty. agreements, commitment and obligation, or as part of
the functions of his office;
(c) A substantial stockholder is any person who owns,
directly or indirectly, shares of stock sufficient to elect a These acts shall continue to be prohibited for a period
director of a corporation. This term shall also apply to the of one (1) year after resignation, retirement, or separation
parties to a voting trust. from public office, except in the case of paragraph (c)
above, but the professional concerned cannot practice his
(d) A voting trust means an agreement in writing profession in connection with any matter before the
between one or more stockholders of a stock corporation office he used to be with, within one year after such
for the purpose of conferring upon a trustee or trustees resignation, retirement, or separation, provided that any
the right to vote and other rights pertaining to the shares violation hereof shall be a ground for administrative
for certain periods and subject to such other conditions disciplinary action upon re-entry to the government
provided for in the Corporation Law. service.
SECTION 2. (a) When a conflict of interest arises, the (e) Disclosing or misusing confidential or classified
official or employee involved shall resign from his position information officially known to him by reason of his office
in any private business enterprise within thirty (30) days and not made available to the public, to further his
from his assumption of office and/or divest himself of his private interests or give undue advantage to anyone, or to
shareholdings or interests within sixty (60) days from prejudice the public interest;
such assumption. For those who are already in the
service, and conflict of interest arises, the officer or (f) Soliciting or accepting, directly or indirectly, any
employee must resign from his position in the private gift, gratuity, favor, entertainment, loan or anything of
business enterprise and/or divest himself of his monetary value which in the course of his official duties
shareholdings or interests within the periods or in connection with any operation being regulated by,
herein-above provided, reckoned from the date when the or any transaction which may be affected by the
conflict of interest had arisen. The same rule shall apply functions of, his office. The propriety or impropriety of the
where the public official or employee is a partner in a foregoing shall be determined by its value, kinship or
partnership. relationship between giver and receiver and the
motivation. A thing of monetary value is one which is
(b) If the conditions in Section 1 (b) concur, evidently or manifestly excessive by its very nature. *
divestment shall be mandatory for any official or
employee even if he has resigned from his position in any Gift refers to a thing or a right disposed of
private business enterprise. gratuitously, or any act of liberality, in favor of another
who accepts it, and shall include a simulated sale or an
(c) Divestment shall be to a person or persons other ostensibly onerous disposition thereof.
than his spouse and relatives within the fourth civil
degree of consanguinity or affinity. Loan covers both simple loan and commodatum as
well as guarantees, financing arrangement or
(d) The requirements for divestment shall not apply to accommodations intended to ensure its approval.
those specifically authorized by law and those who serve Commodatum refers to a contract whereby one of the
the government in an honorary capacity nor to laborers parties delivers to another something not consumable so
and casual or temporary workers. that the latter may use the same for a certain time and
return it.
This prohibition shall not include:


(1) Unsolicited gift of nominal or insignificant value (n) Failure to resign from his position in the private
not given in anticipation of, or in exchange for, a favor business enterprise within thirty (30) days from
from a public official or employee or given after the assumption of public office when conflict of interest
transaction is completed, or service is rendered. As to arises, and/or failure to divest himself of his shareholdings
what is a gift of nominal value will depend on the or interests in private business enterprise within sixty (60)
circumstances of each case taking into account the salary days from such assumption of public office when conflict
of the official or employee, the frequency or infrequency of interest arises: Provided, however, that for those who
of the giving, the expectation of benefits, and other are already in the service and a conflict of interest arises,
similar factors. the official or employee must either resign or divest
himself of said interests within the periods herein-above
(2) A gift from a member of his family or relative as provided, reckoned from the date when the conflict of
defined in the Code on the occasion of a family interest had arisen.
celebration, and without any expectation of pecuniary
gain or benefit. RULE XI Penalties
(3) Nominal donations from persons with no regular, SECTION 1. Any official or employee regardless of
pending, or expected transactions with the department, whether or not he holds office or employment in a casual,
office or agency with which the official or employee is temporary, holdover, permanent or regular capacity,
connected, and without any expectation of pecuniary committing any violation of the Code shall be punished
gain or benefit. with a fine not exceeding the equivalent of six (6) months
salary or suspension not exceeding one (1) year, or
(4) Donations coming from private organizations removal depending on the gravity of the offense after due
whether local or foreign, which are considered and notice and hearing by the appropriate body or agency. If
accepted as humanitarian and altruistic in purpose and the violation is punishable by a heavier penalty under
mission. another law, he shall be prosecuted under the latter
statute. Violations of Section 7, 8 or 9 of the Code shall be
(5) Donations from government to government
punishable with imprisonment not exceeding five (5)
entities.
years, or a fine not exceeding five thousand pesos
As to gift or grants from foreign governments, the (P5,000.00) or both, and, in the discretion of the court of
Congress consents to: competent jurisdiction, disqualification to hold public
office.
(i) The acceptance and retention by public official or
employee of a gift of nominal value tendered and Any violation hereof proven in a proper administrative
received as a souvenir or mark of courtesy; proceeding shall be sufficient cause for removal or
dismissal of an official or employee, even if no criminal
(ii) The acceptance by a public official or employee of prosecution is instituted against him.
a gift in the nature of a scholarship or fellowship grant or
medical treatment; or Private individuals who participate in conspiracy as
co-principals, accomplices or accessories, with officials or
(iii) The acceptance by a public official or employee of employees, in violation of the Code, shall be subject to the
travel grant or expenses for travel taking place entirely same penal liabilities as the officials or employees and
outside the Philippines (such as allowances, shall be tried jointly with them.
transportation, food and lodging) of more than nominal
value if such acceptance is appropriate or consistent with The official or employee concerned may bring an
the interests of the Philippines, and permitted by the action against any person who obtains or uses a report
head of office, branch, or agency to which he belongs. for any purpose prohibited by Section 8 (d) of the Code.
The Court in which such action is brought may assess
Nothing in the Code shall be construed to restrict or against such person a penalty in any amount not to
prohibit any educational, scientific or cultural exchange exceed twenty-five thousand pesos (P25,000.00). If
programs subject to national security requirements. another sanction hereunder or under any other law is
heavier, the latter shall apply.
(g) Obtaining or using any statement filed under the
Code for any purpose contrary to morals or public policy SECTION 2. Administrative proceedings for violation
or any commercial purpose other than by news and of these Rules shall be in accordance with the Civil
communications media for dissemination to the general Service Law and Rules.
public;
RULE XII Free Voluntary Service
(h) Unfair discrimination in rendering public service
due to party affiliation or preference; SECTION 1. (a) Free voluntary service refers to services
rendered by persons who are in government without pay
(i) Disloyalty to the Republic of the Philippines and to or compensation.
the Filipino people;
(b) The requirements of free voluntary service are as
(j) Failure to act promptly on letters and requests follows:
within fifteen (15) days from receipt, except as otherwise
provided in these Rules; (1) Issuance of an appropriate document;
(k) Failure to process documents and complete action (2) Fitness and suitability for the duties and

on documents and papers within a reasonable time from responsibilities of the particular position; and
preparation thereof, except as otherwise provided in
these Rules; (3) Compliance with the rule on nepotism.
(l) Failure to attend to anyone who wants to avail (c) The following are the functions or services that
himself of the services of the office, or to act promptly volunteers can perform:
and expeditiously on public personal transactions; (1) Advisory;
(m) Failure to file sworn statements of assets, (2) Consultancy or counselling;
liabilities and net worth, and disclosure of business
interests and financial connections; and (3) Recommendatory;


(4) Professional Services;
(5) Staff work such as planning or research; or
(6) Humanitarian.
(d) Those who render free voluntary service to the

government are covered by the following:
(1) Laws on rewards and incentives;
(2) Norms of conduct and ethical standards;
(3) Duties and obligations of public officers and

employees;
(4) Prohibitions and sanctions enumerated in these

Rules; and
(5) Civil and criminal liability.
(e) Those who render free voluntary service are,

however, exempted from the filing of statements of
assets, liabilities and net worth and financial disclosures,
the requirement on divestment and the appropriate
eligibility requirement, for their designations, and shall
not enjoy security of tenure.
Unless otherwise provided in the terms of their

designations, volunteers are prohibited from:
(1) Exercising supervisory functions over personnel;
(2) Exercising functions or positions involving national
security;
(3) Having access to confidential or classified

information unless authorized by proper authorities;
(4) Occupying regular plantilla positions;
(5) Having such services credited as government

service and availing themselves of retirement benefits;
(6) Using facilities and resources of the office for

partisan political purposes; and
(7) Receiving any pecuniary benefits such as

honoraria, allowances and other perquisites of office.
RULE XIII Amendment

SECTION 1. The Civil Service Commission may amend
or modify these Rules as may be necessary.
RULE XIV Effectivity

SECTION 1. These Rules shall take effect thirty (30)
days following the completion of their publication in the
Official Gazette or in a newspaper of general circulation.
Quezon City, April 21, 1989.
(Rules Implementing the Code of Conduct and Ethical

Standards for Public Officials and Employees, [April 21,
1989])

Administrative Code and Law of Public Officers

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BOOK IV The Executive Branch 13

© Compiled by Rehne Gibb Larena | JD-2 | University of San Carlos

ADMINISTRATIVE CODE AND LAW OF PUBLIC OFFICERS TEXT AND RULES

© Compiled by RGL 2 of 162

ADMINISTRATIVE CODE AND LAW OF PUBLIC OFFICERS TEXT AND RULES

CHAPTER 5 Regulatory Board 80 CHAPTER 7 Receipt and Disposition of Funds

© Compiled by RGL 3 of 162

ADMINISTRATIVE CODE AND LAW OF PUBLIC OFFICERS TEXT AND RULES

RULE XVIII Prohibitions 150

RA No 6713 | Code of Conduct and Ethical Standards for

Rules Implementing The Code of Conduct and Ethical

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ADMINISTRATIVE CODE AND LAW OF PUBLIC OFFICERS TEXT AND RULES

© Compiled by RGL 5 of 162

ADMINISTRATIVE CODE AND LAW OF PUBLIC OFFICERS TEXT AND RULES

CHAPTER 6 Oﬃcial Gazette

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A. Regular Holidays SECTION 30. Mandatory Nation-wide Use. — The

© Compiled by RGL 7 of 162

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CHAPTER 11 Oﬃcial Reports

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© Compiled by RGL 9 of 162

ADMINISTRATIVE CODE AND LAW OF PUBLIC OFFICERS TEXT AND RULES

© Compiled by RGL 10 of 162

ADMINISTRATIVE CODE AND LAW OF PUBLIC OFFICERS TEXT AND RULES

© Compiled by RGL 11 of 162

ADMINISTRATIVE CODE AND LAW OF PUBLIC OFFICERS TEXT AND RULES

© Compiled by RGL 12 of 162

ADMINISTRATIVE CODE AND LAW OF PUBLIC OFFICERS TEXT AND RULES

(7) Provide overall coordination in the operation of the

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© Compiled by RGL 14 of 162

ADMINISTRATIVE CODE AND LAW OF PUBLIC OFFICERS TEXT AND RULES

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© Compiled by RGL 17 of 162

ADMINISTRATIVE CODE AND LAW OF PUBLIC OFFICERS TEXT AND RULES

© Compiled by RGL 18 of 162

ADMINISTRATIVE CODE AND LAW OF PUBLIC OFFICERS TEXT AND RULES

© Compiled by RGL 19 of 162

ADMINISTRATIVE CODE AND LAW OF PUBLIC OFFICERS TEXT AND RULES

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ADMINISTRATIVE CODE AND LAW OF PUBLIC OFFICERS TEXT AND RULES

(1) Assist the Secretary on all matters regarding data

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© Compiled by RGL 23 of 162

ADMINISTRATIVE CODE AND LAW OF PUBLIC OFFICERS TEXT AND RULES

CHAPTER 10 Appointments, Compensation and Beneﬁts

© Compiled by RGL 24 of 162

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© Compiled by RGL 25 of 162

ADMINISTRATIVE CODE AND LAW OF PUBLIC OFFICERS TEXT AND RULES

© Compiled by RGL 26 of 162

ADMINISTRATIVE CODE AND LAW OF PUBLIC OFFICERS TEXT AND RULES

© Compiled by RGL 27 of 162