01 i MOM, CTRRGATOM ADMNsTTON Dn yh te, a as = U.P. LAW CENTER linc 2 Cunha ACoA eGR JUN 20 2028 I } MEMORANDUM No. 20 2 3 - 30 our To : ALL ELECTRIC COOPERATIVES (ECs) La SUBJECT : POLICY AMENDING NEA MEMORANDUM NO. 2018-011 ON “REVISED GUIDELINES ON BENEFITS, ALLOWANCES AND INCENTIVES OF ELECTRIC COOPERATIVE OFFICIALS AND EMPLOYEES” RATIONALE NEA Memorandum No. 2018-011 entitled, "Revised Guidelines on Benefits, Allowances and Incentives of Electric Cooperative Officials and Employees” is being amended to implement further Section 5 (I) of Republic Act No. 10531 authorizing NEA to enforce standards through a mechanism of incentives and disincentives to complying and non-complying ECs, respectively. Moreover, this is to recognize the excellent performance of officials and employees of Electric Cooperatives and motivate them further in delivering quality and efficient service to its member-consumers owners (MCOs) and other stakeholders. IL Policy It shall be the policy of this Office to recognize and reward the hard work and determination of EC Officials and Employees towards improved EC operations and empowered MCOs, and as such, authorizing complying ECs to grant certain incentives to its officials and employees, subject to confirmation of NEA thus, these amendments to the existing guidelines on benefits, allowances and incentives. lI Allowances and Incentives for EC Board of Directors, General Managers and Employees A. Rice, Clothing/Uniform and Medical Allowances 1. EC Board of Directors, General Managers and employees are eniilled to the following: [ Allowances: ‘Amount Rice (monthly) P 2,500 Clothing/Uniform (annually) | P 8,000 zi Medical (annually) P 10,000 or HMP_ (02)8-929-1909 ~Encrgsig the Couche, Elchilyny the Fete wniznea.govphClothing Allowance shall be given in cash or in kind on the 1* quarter of every year. Medical Allowance shall be given in cash or through Health Maintenance provider with premium payment not to exceed the amount of P10,000 Pesos per annum. Procurement of Health Maintenance Service shall be subject to bidding. Any amount in excess of P10,000 provided by the EC shall be shouldered by the Board of Directors, General Managers and Employees. B, TRAVEL EXPENSES (TE) ove 1 R Jun 21 2 Definition of Terms: & 1.1. Daily Travel Expenses (DTE) — the amounts authorized to cover expenses for local travel, which consists of (i) costs for hotel accommodation or lodging, including the prescribed taxes and service charges, (i) meals, and (ii) incidental expenses, including cost for local or inland transportation and reasonable miscellaneous expenses at the place of assignment. 1.2. Transportation Expenses (TrE) — the actual fares of the authorized modes of transportation (e.g., land, sea and air) for local travels from the EC to the destination or place of assignment and back Travel outside of the EC franchise coverage area. Official Local Travel to destination outside of the EC franchise coverage area shall be allowed the following expenses: 2.1, Transportation Expenses and Miscellaneous Expenses. The allowable transportation expenses and —_ reasonable miscellaneous expense (e.g,, terminal fees, parking fees, road tolls, etc.) from the permanent official station to the destination or place of assignment shall cover the following areas: (i) From the EC or residence to the point of embarkation; and vice versa; (i) From the point of embarkation to the point of disembarkation in the place of destination, and vice versa; and (i) From the point of disembarkation to the Office of destination or place of assignment in the field, and vice versa Aw CENTER CISTER? Tat) aThe transportation expenses and reasonable miscellaneous expenses under this provision shall be in addition to the daily travel expenses provided in Item No. 3.1 of this policy. Personnel concemed shall not be entitled to transportation expenses for the entire trip or portion of such trip where EC vehicle was used. 3. Daily Travel Expenses (DTE) 3.1, The maximum allowable DTE of EC Board of Directors, General Manager and Employees shall be at the following rates: PLACES _ MAXIMUM DTE METRO MANILA & OTHER HUCS 23,750 OTHER CITIES R3,000 OUTSIDE OF THE EC REGION R2,300 WITHIN EC REGION BUT OUTSIDE Baa OF THE COOP’S AREA COVERAGE. es of time and succeeding | dayls thereof on official | 3.2. Apportioned Travel Expenses (ATE) — The allowable DTE for travel outside of the EC franchise coverage area shall be based on the following apportionment: Particulars Percentage To Cover [Day of arrival at point of | 100% destination (regardless | Hotel/odging (50%) Meals (30%), and Incidental expenses (20%) | business | Day of departure to EC 50% (regardless of time if Meals (30%), and incidental other than date of expenses (20%) | arrival) 3.3. Travel Expenses in Excess of Authorized Travel Rates. Claims for reimbursement of actual accommodation expenses (excluding ‘expenses for valets, room attendants, laundry, pressing, haircuts, and similar services furnished by hotels) in excess of the accommodation component of the DTE may be allowed, but in no case shall the difference exceed one hundred per cent (100%) of such component of the prescribed DTE rate, and only upon: to() Submission of certification by the EC General Manager or authorized representative as absolutely necessary in the performance of an assignment; and (ii) Presentation of bills and receipts. A certification or affidavit of loss shall not be considered as appropriate replacement for lost bills and receipts. 3.4. Personnel on official travel wo commute daily from the place of assignment to the place of residence or permanent official station shall be allowed the following expenses: () Actual fare at the prevailing rates of authorized modes of transportation from the permanent official station to the place of assignment and back; (i) Meals in an amount not exceeding the thirty percent (30%) of the authorized meal component of the DTE as indicated Item 3.2 of this policy. Presentation of transportation ticket or any equivalent document shall be required as proof of actual travel undertaken. 3.5. Mode of Transportation and Type of Accommodation. (@) The General Manager concerned or the designated EC officials shall determine the mode of transportation and type of hotel/odging to be availed, which in all cases shall be the most economical and efficient. (b) As a general rule, only the ordinary public conveyance or customary modes of transportation shall be used. The use of chartered trips, special hires of public utilities, garage cars, water vessels, and other extraordinary means of transportation shall not be allowed unless justified by the prevailing circumstances, such as but not limited to, carrying large amounts of cash, bulky equipment, important documents and inclement weather. C. Monthly Representation Allowance Representation Allowance (RA) shall be given monthly to cover related expenses incidental to and in connection with the actual performance of the EC officia’s respective functions. The RA is based on the EC Distribution Supply and Metering (DSM) Revenue, Size Classification and Categorization center, sentve HCI ) 2003 i) TEREMega Large ECs ees | 202, | Oters800s | GeneralManager| Deparment | vison BAR| —Pta000 | P2600 | Pa. c00 15000 | —P 10,000 mA | P16,840, 19605 Pia208 | 8.684 _A_| P10,800 12,246 P 10.272 P6179 3 | Pasoo 6.008 P 4aa4 P1670 c P 4,500 P5809 P 4,494 P 1,670 | Pas00 PATIO P4404 P1670 Extra Large Et 4S | p20B,, | otvere 8008 | Gener Manager| gpatnent | Bion WaA| tao | PThTeo | Prams prez | Passa aA [Ps800 | P9720 | P6220 P1455 | PT.S16 A | Fo360 | Patao | p12.080 Pao PBBTE 3 | P4500 | —Paveo | Pa00e P4404 P1670 c P 4,500 P3780 | P5809 P 4,494 P1,670 D P4500 ni P 4,494 P 1,670 Large ECs 0S | p_e0P | Oters200s | Genera manager] eperiment [Bion BAR| “Pas |p asm | P1727 Prigaz PTs ‘a | P1000 | Paseo | P1620 Prit28 P6660 A | P7s0 | Pre | Ptt818 Beate Per 3 [Pasco | Pa7e0 | Peove 4.44 P4670 [Paso |p 3,760 75.800 P4.de8 P1870 | Pas0o | P3760 Pari Baise P1870 omnes 2008 | General Manager| Deparment | iisen Peo00 |p 1e ore 10,700 P4000 Paz | P1410 Peau 73,700 P7,200 | P 10,980 P.8,560 P 2,900 23760 76908 Paes P1970 P3780 P5808 Pa see P1870 73.760 Barto Pace P1670Small ECs KPS | preodent | Others BODs | Generel Manager | - Ocparnent Meee. | ABA | P8640 P8100 P13,345 Peso | P5s1i | BA 7,200 7,200 Pi2.246 P 8,560 P4676 A P5,940 P 5,940 P 10,205 P 7,062 P 4,008 B 4,500 3,780 P6908 P4498 P 4,670 c_|__P4,500 P 3,780 P 5,809 P 4.494 P 4,670 or 4,500 3,780 P4710 P 4,494 P 1,670 D. Per Diem Per Board Meeting (Compensation granted to the EC Board of Directors, including Ex-Officio Members for attendance in legally-convened board meetings but not to exceed two (2) meetings per month. The amount, which already includes transportation cost from residence to venue, and back) KPS [MEGA LARGE P 15,000 not to exceed P360,000/year P 42,750 not to exceed P308,000/year P'7,,755 not to exceed P186,120/year P.5,100 not to exceed P122,400/year P 1,995 not to exceed P47,880/year P 1,650 not to exceed P39,600/year EXTRA LARGE. P 13,650 but not to exceed P327,600/year P 11,400 but not to exceed P273,600/year 6.900 but not to exceed P165,600/year 4,650 but not to exceed P111,600/year P 1,995 but not to exceed P47,880/year P 4,650 not to exceed P39,600/year | LARGE P 12,300 but not to exceed P295,200/year P 10,050 but not to exceed P241,200/year | 6,000 but not to exceed P144,000/year P-4,200 but not to exceed P100,800/year_| P 1,995 but not to exceed P47,880/year 1,650 not to exceed P39,600/year op>leie| x 3] Jo) a) ofp BIB /5| olola>|z|3 loja>|EE 3) jojo MEDIUM a P 10,950 but not to exceed P262,800/year P 8,700 but not to exceed P208,800/year P 5,100 but not to exceed P122,400/year P'3,300 but not to exceed P79,200/year P 1,995 but not to exceed P47,880/year [P 1,650 not to exceed P39,600/year eeited to EC Board of { KPs [SMALL [AAA TP 9,000 but not to exceed P216,000/year | AA ~ | P7,650 but not to exceed P183,600/year ‘A__ | P-4,050 but not to exceed P97,200/year B__ | P-2,550 but not to exceed P61 ,200/year C | P'1,895 but not to exceed P47, 860/year D___|P 1,650 not to exceed P39,600/year E. Per Diems for Committee Meetings (Compensation gran directors for Committee Meetings but not to exceed one (1) meeting per month) [_ KPs [MEGA LARGE [Aaa | P 3,000 but not to exceed P36,000/year ‘AA __ | P.2,750 but not to exceed P33,000/year A P 2,500 but not to exceed P30,000/year B__| P-2,250 but not to exceed P27,000/year | P-2,000 but not to exceed P24,000/year D P 1,750 but not to exceed P21,000/year__ | KPS | EXTRA LARGE ] ‘AAA __| P 2,750 but not to exceed P33,000/year AA P 2,500 but not to exceed P30,000/year ‘A__| P.2,250 but not to exceed P27,000/year B__| P.2,000 but not to exceed P24,000/year [_C | P1,750 but not to exceed P21 ,000/year D | P'4,500 but not to exceed P18,000/year KPS__[ LARGE ‘AAA _| P 2,500 but not to exceed P30,000/year ‘AA _ | P.2,250 but not to exceed P27,000/year A ____| P.2,000 but not to exceed P24,000/year B___|P 1,750 but not to exceed P21 ,000/year Cc P 1,500 but not to exceed P18,000/year D___| P 1,250 but not to exceed P15,000/year KPS__| MEDIUM ‘AAA _ | P 2,000 but not to exceed P24,000/year ‘AA__|P-1,750 but not to exceed P21,000/year ‘A___|P1,500 but not to exceed P18,000/year B__| P1,250 but not to exceed P15,000/year C___| P-1,000 but not to exceed P12,000/year D___ | P'750 but not to exceed P9,000/year U.P, LAW CENTER vice aie ahora Suma CR “Mite tanKPS__| SMALL ‘AAA _| P 2,000 but not to exceed P24,000/year P 1,750 but not to exceed P21,000/year AA ‘A ___| P'1,500 but not to exceed P18,000/year Cc |B | P 1,250 but not to exceed P15,000/year P 1,000 but not to exceed P12,000/year D__[P750 but not to exceed P9,000/year F. Incentives 1. Anniversary/Foundation Incentive The EC may grant an anniversary/foundation incentive in the amount of five thousand pesos (P5,000.00) to all Board of Directors and Employees 2. Year-End Performance Incentive The complying EC may grant year-end performance incentive to its Board of Directors, General Manager and Employees based on the following scheme depending on the latest annual financial operation of the EC, subject to availability of funds: ‘Scheme 1: A) One (1) month per diem (Board of Directors); one (1) month basic pay (General Manager and Employees); Provided, that the following are complied with: a) The incentive is included in the EC Cash Operating Budget for the year duly approved by NEA; b) The EC has met all parameters in the KPS; ) The incentive is within the non-power cost level; d) The EC has no unliquidated subsidy fund and has completed its sitio project as certified by the NEA-AMGD & ATEO; e) The EC has conducted AGMA and district elections as scheduled; and f) The EC has duly complied with the timely submission of NEA reportorial and good governance requirements. Scheme 2: B) Two (2) months per diem (Board of Directors); Two (2) months w centre _ basic pay (General Manager and Employees) Samra R JUN 21 2023 \) EGISTERE a eenProvided, that the following are complied with: A) EC must have two (2) months working capital for the last six (6) months; B) Average Collection Efficiency of 100% (12 months) C)_ Single Digit System Loss; D) Current in payment to power supplier; E) Compliant to all other requirements prescribed in this guidelines; F) The incentive is included in the EC Cash Operating Budget for the year duly approved by NEA; G) The EC has no unliquidated subsidy fund and has completed its sitio project as certified by the NEA-AMGD & ATEO; and H) The EC has conducted AGMA and district elections as scheduled; 3. Cash Gift Incentive Cash gift in the amount of not to exceed five thousand pesos (PhP5,000) may be given to the EC Board of Directors, General Managers and employees at the end of the year for successfully implementing its annual targets. G. Mechanics of Implementation for grant of year-end incentives and cash gift * ECs shall submit board resolutions and supporting documents for evaluation and approval of NEA. IV. Approving Authority The NEA Administrator shall be the approving authority in the grant of all EC benefits and incentives. V. Prohibition and Sanctions In case of violation/s found after validation, the Board, General Manager, and concerned Officials shall be required to implement the immediate refund of the full amount disallowed without prejudice to the application of any other sanctions allowed under pertinent laws and other NEA rules and regulations. VI. Responsibility and Accountability 1, The grant of allowances and incentives are subject to coop’s availability of funds and shall be incorporated in the Cash Operating Budget for the year. 2. The coop’s Finance Manager and Internal Auditor shall be responsible for > smonitatirig'the, compliance to the Guidelines3. The Board and General Manager shall likewise be accountable for its proper implementation. They shall be held liable for the grant of any benefit and allowance over and above those provided under the Guidelines. Vil. Amendatory Clause This supersedes NEA Memorandum No. 2018-011 dated February 20, 2018. Vill. Effectivity This policy shall take effect immediately upon filing with the University of the Philippines (UP) Law Center pursuant to the Presidential Memorandum Circular No. 14, dated October 9, 1992. NATIONAL ELECTRIFICATION. ABHIINS RATION mmvocmmecs mii is ANT! ca R JUN 21 2023 \) EGISTERE21 June 2023 THE DIRECTOR Office of the national Administrative Register University of the Philippines Law Center U.P. Law Center, Diliman Quezon City Sir: Greetings of peace and good health! Pursuant to Book VII, Chapter 2, Section 3 of the 1987 Administrative Code of the Philippines, we are respectfully submitting to the U.P. Law Center, for filing, publication and recording the attached certified true copies of the POLICY AMENDING NEA MEMORANDUM NO. 2018-011 ON “REVISED GUIDELINES ON BENEFITS, ALLOWANCES AND INCENTIVES OF ELECTRIC COOPERATIVE OFFICIALS AND EMPLOYEES” promulgated by the National Electrification Administration (NEA) in accordance with its authority under Section 5 of P.D. No. 269 as amended. Thank you very much for the usual and kind assistance of the U.P. Law Center. Very truly yours, nes Ps LAW CENTER 7 Sant eek ice nae ATTY. GI ENCISO-KYAMKO UN 21 2023 3 W2St8 me 619, Acting Cofporate Board Secretary V eat Gyan NATIONAL ELECTRIFICATION ADMINISTRATION | ZA. Soman Hg DLR coma egeaehtonet Ba Geet eee” | avon Be ;nea.gov'ph “Energgtng the Countryside. Electrifying the Futere”™