Updated Guidelines and Procedures on the Rendition of Overtime Services with Pay of BIR Personnel

June 14, 1996 REVENUE MEMORANDUM ORDER NO. 15-96 TO : All Revenue Officials and Employees SUBJECT : Updated Guidelines and Procedures on the Rendition of Overtime Services with Pay of BIR Personnel 1.0 PURPOSE This Revenue Memorandum Order is being issued to update existing rules and guidelines on the rendition of overtime services with pay of BIR personnel, in line with the rules and regulations promulgated recently by the Department of Budget and Management. 2.0 COVERAGE This Revenue Memorandum Order shall cover incumbents of positions of chiefs of division and below under permanent, temporary or casual status, and contractual personnel whose employment is in the nature of a regular employee. 3.0 POLICY ON OVERTIME 3.1 Overtime work should be avoided by adequate planning of work activities. It should not be resorted to in the performance of regular routine work and activities, except in cases where unforeseen events and emergency situations will result in any of the following: 3.1.1 cause financial loss to the government or its instrumentalities; 3.1.2 embarrass the government due to its inability to meet its commitments; or 3.1.3 negate the purposes for which the work or activities was concerned; 3.2 Specific activities for which necessary overtime with pay may be authorized include the following: 3.2.1 completion of projects with set guidelines when due to unforeseen event(s), the deadline cannot be met without resorting to overtime work; 3.2.2 seasonal work such as budget preparation and rendition of annual reports to meet scheduled deadlines; 3.2.3 preparation of special financial/accountability reports required occasionally be central monitoring agencies like the Congress of the Philippines, Office of the President, Commission on Audit, Department of Budget & Management, National Economic and Development Authority; 3.2.4 implementation of special program/projects embodied in presidential directives and authorizations and with specific dates to complete which are in the nature of additional work of personnel with other regular duties; and, 3.2.5 services rendered by drivers and other immediate staff of officials authorized to have such staff support when they are required to keep the same working hours as their superior. 3.3 Prior determination as to whether or not overtime service is to be performed shall be made by the Assistant Commissioner and/or Regional Director concerned. However, to ensure that this responsibility has been properly discharged, the Deputy Commissioner for Resource Management Group who shall, henceforth, approve requests for overtime with pay shall require the Assistant Commissioner and/or Regional Directors concerned to state in the request for authority to render overtime service, among others, the following: 3.3.1 Purpose The purpose must be specific and must be supported whenever possible by a memorandum, instructions or other documents; 3.3.2 Duration The duration shall be definite; it shall be directly and reasonably proportional to the scope, magnitude, importance and complexity of the work to be accomplished and shall not extend beyond the scheduled date of completion; 3.3.3 List of Employees The names, positions and assigned tasks of those who will render overtime service shall be enumerated. The number shall be justifiable considering the expected output and time allotted to finish the job. The positions of those listed and their assigned duties and responsibilities shall be directly related to the work to be done. 3.3.4 Justification It shall show the urgency and necessity of the overtime service and the adverse consequences that may arise if not approved; 3.4 With respect to requests for renewal of overtime authority, the same shall be accompanied by an Accomplishment Report for the period for which overtime service has already been rendered and a copy of previous authority. 4.0 COMPUTATION OF OVERTIME SERVICES 4.1 Overtime Services shall include: 4.1.1 those rendered beyond eight (8) work hours of a regular work day; 4.1.2 those rendered on rest days, such as Saturdays and Sundays; and 4.1.3 those rendered on Holidays or non-working days. 4.2 Personnel rendering overtime services shall be entitled to overtime pay by the hour which shall be based on his/her actual hourly rate, computed as follows: Actual Salary Per Month Actual Hourly Rate (H.R.) = 22 x 8 4.3 Overtime pay shall be computed as follows A. For ordinary working days: Plus 25% of the hourly rate (0.25 x H.R.) Overtime Pay = 1.25 x H.R. x No. of Hours Rendered B. For rest days and holidays plus 50% of the hourly rate (0.50 x H.R.) Overtime Pay = 1.50 x H.R. x No. of Hours Rendered 4.4 The total overtime pay of the employee for the year shall not exceed fifty (50%) percent of his annual basic salary. 4.5 Overtime Pay for contractual personnel shall be based on the rate exclusive of the 20% premium. 4.6 When an employee working in a regular night shift falling within the 6:00 P.M. to 6:00 A.M. period renders services in excess of the regular 8-hour night shift, the excess hours shall be compensated on the basis of the hourly basic rate prescribed under Item 4.3 hereof, exclusive of the night shift differential pay. 5.0 FUNDING SOURCE The funds necessary to pay overtime services shall be charged against the specific appropriations in the BIR budget. Savings from released allotments for current operating expenditures may be used for the payment of overtime services, provided that all authorized mandatory expenses shall have been paid first; and, provided further, that total overtime payments in a given year shall not exceed five (5%) percent of the total salaries of authorized positions of the Bureau. 6.0 CONFORMANCE WITH CIVIL SERVICE COMMISSION (CSC) RULES Authority to render overtime service shall be subject to CSC rules particularly on Rule XVII governing Government Office Hours. 7.0 EFFECTIVITY This Revenue Memorandum Order shall take effect immediately. LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue