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[ DBM CIRCULAR NO. 14, November 19, 1997 ]



This Circular is issued to provide the rules and regulations on the payment of the Special Allowance for FY 1997, in the amount of one thousand pesos (P 1,000) to all personnel of the National Government Agencies (NGAs), Government-Owned and -Controlled Corporations (GOCCs) and Government Financial Institutions (GFIs) as authorized under Executive Order No. 458 dated November 17, 1997.


The coverage of Executive Order No. 458 is hereby amplified to include government personnel who are under the following circumstances from January 1, 1997 to October 31, 1997 and are still in the service as of October 31, 1997:

2.1  those who have rendered at least a total of four (4) months of service including leaves of absence with pay; and

2.2  those who are on approved leave without pay but have rendered at least a total of four (4) months of service.


3.1 Government personnel under the following instances from January 1, 1997 up to October 31, 1997 shall not be entitled to the benefits authorized herein:

3.1.1 those with pending case until exonerated, viz: when under preventive suspension; when formally charged in administrative cases, i.e. their offices have found, after preliminary investigation, that a prima facie case exists against them and the requisite written formal charge has been issued by the disciplining authority; when they have pending cases before the Office of the Ombudsman, the Prosecutor's Office or of other administrative bodies which relates to acts or omissions in connection with their official duties or functions and where it has already been resolved by the Offices concerned that there exist prima facie cases; and when there is pending criminal information filed against them in Courts which relate to acts or omissions in connection with their official duties or functions.

3.1.2 those who are formally charged in administrative cases and/or meted penalties; in this regard, if the penalty meted out to an employee is only a reprimand, such penalty is not one that can be made as basis of disqualification to receive this special allowance.

3.1.3    those who are absent without leave (AWOL); and

3.1.4    those who are hired not as part of the organic manpower of government entities but as consultants or experts for a limited period to perform specific activities or services with expected outputs; student laborers; apprentices, laborers of contracted projects; mail contractors, including those paid by piecework basis; and others similarly situated.

3.2  Personnel of Local Government Units (LGUs) which are not financially capable to grant the said allowance.

Rules and Regulations

4.1  the Special Allowance of government personnel who are on full-time or part-time detail with another government agency or special project shall be drawn from their respective mother agency. In the case of those who are paid from project funds, the benefit shall be drawn from the same source where they draw their salaries. No one shall receive the benefit from more than one source.

4.2  Government personnel who rendered less than four (4) months of service shall not be entitled to this Special Allowance.

4.3  The Special Allowance of government personnel who transferred from one agency to another shall be granted by their new office.

4.4  LGUs which may be financially capable to grant said allowance should seek prior approval from the Department of Budget and Management (DBM) through its Regional Offices provided this benefit shall be within their 45/55% Personal Services limitation. Payment thereof shall be however be in accordance with the provisions of this Circular.

4.5  Any partial implementation due to insufficiency of funds to pay said benefit should be uniform for all positions in all entities be it GOCCs, GFIs, or LGUs.

Funding Source

The benefit authorized herein shall be taken from the following funds:

5.1  for NGAs, it shall be charged against their available savings. In case of deficiency, the agency shall submit a request to the DBM for release of funds for the purpose indicating the computed actual requirements and accompanied by a certification by the Accountant as to non-availability of savings.

5.2  for GOCCs and GFIs, it shall be charged from their respective corporate funds; and

5.3  for LGUs, it shall be charged from their respective local funds.

Responsibility of the Head of Entity

The head of entity shall be held responsible and personally liable for any payment of Special Allowance not in accordance with the provisions of Executive Order No. 458 and this Circular without prejudice, however, to refund of any excess payment by the official or employee concerned.

Prohibition Against Payment of the Benefit

Any government agency, GOCC, GFI or LGU which granted year-end benefits in whatever form which are over and beyond the one (1) month basic salary plus P 1,000 cash gift authorized under RA 6686, or granted any other form of benefit not authorized by law or by the President, can no longer grant this benefit except when the aggregate amount granted is less than P 1,000 in which case the difference may still be paid. Likewise, any unauthorized payments made in excess of the P 1,000 authorized in EO 458 shall be refunded.

Saving Clause

Cases not covered by the provisions of this Circular shall be submitted to the Secretary of Budget and Management for appropriate evaluation and resolution.

Payments of Benefit

Payment of this benefit shall not be earlier than November 30, 1997.

Adopted: November 19, 1997



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