BIR Ruling [DA-484-99]

August 24, 1999 BIR RULING [DA-484-99] Ms. Myrna E. Sobremonte Chief, Accounting (Disbursement) Division BIR NOB, Quezon City M a d a m : This refers to your letter dated May 10, 1999 requesting clarification on the entitlement to Personnel Economic Relief Allowance (PERA) of employees who have served the 90-day suspension period but there is as yet no lifting of the order of suspension by the Commissioner of Internal Revenue. The request for clarification arose in view of the provisions of Subsection 4.6, Paragraph 4 of Budget Circular No. 12 dated April 7, 1997 which provides, viz: "The payment of PERA of government personnel under preventive suspension shall be held in abeyance during the period of their suspension. If exonerated, they shall be entitled to the full amount of PERA from the time of their suspension, and if meted penalty, they shall not be entitled to PERA until they have served their penalties." At the outset, please be informed that Budget Circular No. 12 has been amended/repealed/superseded by Budget Circular No. 15 dated March 5, 1998. Sub-paragraph 3.1 of Paragraph 4 thereof explicitly provides that PERA and ADCOM and YEB shall be paid to all government personnel including those with pending cases except (1) those who are not entitled thereto under existing laws, rules and regulations; and (2) those who are under preventive suspension or having been meted suspension without pay . Since the employees adverted to in your query have already served their preventive suspension without being meted the penalty of suspension without pay, the non-payment of their additional benefits, particularly PERA, is not justified. The unexplained failure of this Office to lift the order of suspension despite the fact that the employees concerned have served their 90-day preventive suspension is not a ground to withhold the payment of PERA. At any rate, the lifting of the order of suspension is not at all necessary as long as the employees concerned were allowed to render service. As ruled by this Office, the return to work of suspended employees after serving the 90-day suspension period is AUTOMATIC and there is no need for suspended employees to request in writing for the lifting of their suspension. (BIR Ruling No. DA-224-99 dated April 13, 1999 clarifying BIR Ruling No. 142-97 dated December 29, 1997) Please be guided accordingly. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue