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This Circular covers the following

1.1       Contractual personnel who are herein referred to as those who are hired in accordance with a specific contract for a specific period and with a definite expected output and are employed to undertake a particular work or project, and whose hiring creates an employee-employer relationship between them and the hiring agency;

1.2       Government statutory expenditures on Personal Services which are referred to as the government share of premiums for retirement and life insurance (RLIP), health insurance (Medicare), employees’ compensation insurance (ECIP) and PAG-IBIG; and

1.3       Leave benefits of contractual personnel pursuant to CSC Memorandum Circular No. 14, s. 1999 (Additional Provisions and Amendments to CSC Memorandum Circular No. 41, s. 1998).

2.0       Guidelines

2.1       The following guidelines shall apply to contractual personnel starting January 1, 2000.

2.1.1 Contractual personnel shall be paid compensation of an equivalent position as determined by the Department of Budget and Management, but not to exceed the salary of his immediate superior. All contracts of services shall only provide the basic salary of the position.

2.1.2 The government share for RLIP, Medicare, ECIP and PAG-IBIG of contractual employees shall be charged against the lump sum funds of the agency for contractual employees.

2.1.3 The vacation and sick leave credits of contractual employees shall be governed by Rule XVI of the Omnibus Rules Implementing Book V of the Administrative Code of 1987 (Executive Order 292) on Leave of Absence, as amended by CSC Memorandum Circular No. 14, s. 1999. However, to avoid accumulation of vacation leave credits, contractual employees shall be encouraged to use their vacation leave benefits. Agency heads and Personnel Officers shall schedule the vacation leaves of contractual employees in a manner that will not adversely affect the operations of the agency.

2.1.4 Monetization of leave credits and payment of terminal leave benefits of contractual employees, if any, shall be charged against agency savings after taking into consideration the priority in the use of savings as provided under the General Appropriations Act.

2.2       Those personnel whose employment are covered by a contract, but whose nature of employment has features as indicated below, are not covered by the above guidelines:

2.2.1 Student laborers, apprentices, laborers of contracted projects (pakiao), mail contractors, including those paid on piecework basis; and

2.2.2 Those whose positions are not classified/approved by the Department of Budget and Management and the Civil Service Commission.

2.3       All caqses not covered by this Joint Circular shall be referred to the DBM for appropriate action.

3.0       Effectivity

This Circular shall take effect January 1, 2000.

Adopted: 29 Dec. 1999