Rules and Regulations on the Computation of Salaries, Wages and Other Compensation for April and May 2005 in Relation to A.O. No. 117

April 1, 2005

DBM BUDGET CIRCULAR NO. 02-05

 

1.0 Purpose

This Circular is used to provide the rules and regulations relative to the computation of the salaries, wages, Personnel Economic Relief Allowance (PERA), Additional Compensation (ADCOM) and other allowances paid to government employees in line with the implementation of A.O. No. 117, "Providing for Adjusted Official Hours in Departments, Bureaus, Offices and Other Agencies in the Executive Branch, Including Government-Owned and Controlled Corporations, for the Months of April and May 2005." dated March 28, 2005.

2.0 Coverage

2.1 This Circular shall apply to all employees of the Executive Branch of government, including SUCs, GOCCs and GFIs, which will adopt the adjusted official work hours.

2.2 The provisions of this Circular shall likewise cover the employees of the Legislative and Judicial Branches, Constitutional Commissions, and LGUs if they adopt the four-day workweek provided under A.O. No. 117. SEAHID

3.0 Exemption

This Circular shall not apply to the following:

3.1 Military personnel of the Armed Forces of the Philippines under the Department of National Defense;

3.2 Uniformed personnel of the Philippine National Police, Bureau of Jail Management and Penology and Bureau of Fire Protection under the Department of the Interior and Local Government, and uniformed personnel of the Philippine Coast Guard under the Department of Transportation and Communications;

3.3 Employees of the Bureau of Internal

Revenue and Bureau of Customs;

3.4 Employees of government hospitals and health centers, public schools and universities with previously set summer classes, and other government agencies rendering vital and frontline services or those involved in providing health, safety, security, protection, emergency and other services that need to be available on a continuing basis; and

3.5 Individuals whose services are hired not as part of the regular workforce and such hiring bears no employee-employer relationship, like consultants and experts, contract workers hired by piecework ("pakyaw), student laborers and apprentices, and others similarly situated.

4.0 Salaries/Wages

4.1 The monthly rates contained in the Salary Schedule under National Budget Circular No. 474 dated June 15, 2001, shall remain constant. The daily and hourly rates, however, shall be converted in view of the change in the total number of work days in a month, from 22 days to 17.6 days, and in the total number of work hours per day, from 8 hours to 10 hours. The adjusted total work days in a month was derived as follows:

Adjusted total	=	22 work days
work days		in a month		adjusted
in a month		as prescribed in	x	4 work
		Republic Act		days per
		No. 6758		week
		——————
		5 work days
		per week
	=	17.6 days

4.2 Annex A shall be used as reference in determining the daily rates of employees of agencies which will adopt the adjusted official work hours for April and May 2005. DaTEIc

4.3 To determine the hourly rates, the daily rates in Annex A shall be divided by 10 hours.

4.4 The total wage per month for a casual employee shall be computed by multiplying the applicable daily rate in Annex A with the total number of days he/she actually worked.

4.5 The daily rates in Annex A shall not be used in computing retirement gratuities, terminal leave benefits, and monetization of leave credits.

5.0 Overtime Service

5.1 To achieve the main objective of A.O. No. 117 that the government leads the way in energy conservation, overtime work should be avoided, except when absolutely necessary as may be determined by the agency head who may further issue additional related guidelines.

5.2 Overtime service, if any, shall be compensated through compensatory time-off pursuant to Administrative Order (AO) No. 103 (Directing the Continued Adoption of Austerity Measures in the Government) dated August 31, 2004, and in accordance with the guidelines provided under the Department of Budget and Management and Civil Service Commission Joint Circular No. 2 dated October 4, 2004. If overtime services with pay is authorized as an exemption from A.O. No. 103, the rules and regulations under Budget Circular No. 10 dated March 29, 1996, shall apply.

6.0 PERA, ADCOM and Other Allowances

The daily or hourly. rates for the PERA, ADCOM and other allowances of a government employee shall be computed as follows:

PERA or = monthly rate  no. of hours  (17.6 days) x worked during  (10 hrs/day)  the month

The PERA, ADCOM and other allowances for the month shall not exceed the authorized monthly rate.

7.0 Night-Shift Differential Pay

The Night-Shift Differential Pay authorized under BC No. 8, series of 1995, is applicable only to employees who work during the night shift of agencies required to provide 24-hour service. It shall not apply to the regular work performed after 6 PM of employees of agencies adopting the four-day workweek.

8.0 Applicability to LGUs

LGUs that opt to adopt the four-day workweek prescribed in A.O. No. 117 shall likewise adopt the formula contained in 4.1 and 6.0 hereof.

9.0 Responsibility of the Head of Agency

The head of agency shall be held responsible and personally liable for any payment of salaries/wages and other compensation not in accordance with the provisions of this Circular, without prejudice, however, to the refund of any excess payment by the employee concerned.

10. Effectivity

This Circular shall take effect on April 4, 2005 until May 31, 2005.

 

(SGD.) MARIO L. RELAMPAGOSActing Secretary