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(NAR) VOL. 6 NO. 2 / APRIL - JUNE 1995

[ DBM NATIONAL COMPENSATION CIRCULAR NO. 75, March 01, 1995 ]

PRESCRIBING THE GUIDELINES AND PROCEDURES FOR THE GRANT OF HONORARIA TO GOVERNMENT OFFICIALS AND EMPLOYEES



1

Purpose

This Circular is being issued to prescribe rules and regulations to implement the pertinent provisions hororaria under Letter of Instructions No. 565 and the annual General Appropriations Act.

2.0

Concept of Honoraria

Honoraria is a form of compensation or reward paid over and above the regular pay in recognition of gratuitous services rendered by government personnel covered under this Circular. In general, honoraria is paid to government personnel for additional work rendered which is not among his regular functions, but may also be pair to non-government personnel for special services or for membership in projects.

3.0

Coverage and Exemptions

3.1 This Circular shall cover the following:

3.1.1
agency personnel performing or discharging duties in agency activities or special projects in addition to or over and above their regular functions regardless of the source of fund;
 
3.1.2
researchers, experts and specialist who are acknowledged authorities in their field of specialization, other than those paid consultancy fees; and
 
3.1.3
military personnel who are rendering security services to the Congress of the Philippines including its committees.

3.2 The following are not covered by this Circular but shall continue to be paid honoraria at rates prescribed by existing rules and regulations:

3.2.1
teaching personnel of the Department of Education, Culture and Sports (DECS) and State Universities and Colleges (SUCs) engaged in actual classroom teaching whose teaching load is outside regular office hours and/or excess of regular load;
 
3.2.2
teaching personnel of SUCs designated as heads of department;
 
3.2.3
government personnel acting as lecturers, resource persons, coordinators and facilitators in seminars, training programs and other similar activities; and
 
3.2.4
members of governing boards of government collegial bodies or committees.

4

Definition of Terms

For purposes of this Circular, the following terms shall be defined as follows:

4.1 Agency Activity/Special Project - an undertaking by a composite group of officials/employees from one or more bureaus/offices of a department/agency or from one or more departments/agencies which is not among their regular functions. An agency activity/special project which shall hereinafter be referred to as project shall have a specific timeframe of not less than one month, and shall result in an output or sets of outputs which are not part of the regular outputs of the departments or agencies concerned.

4.2 Project Component - a specific group undertaking within the scope of the entire project which has distinct set of outputs, accomplishments of which require independent internal planning and development.

5

General Guidelines

5.1 Heads of national government agencies, including government-owned and/or controlled corporations. May grant honoraria to government officials and employees in accordance with the rules prescribed in this Circular, without need for approval by the DBM.

5.2 The grant of honoraria shall be subject to availability of appropriations for the purpose and shall not require additional funding from the national government.

5.3 Any official may be permitted to participate in more than one project, provided that the total honoraria received shall in no case exceed fifty percent (50%) of his annual salary.

5.4 The grant of honoraria shall be subject to compliance monitoring by the DBM and may be revoked or modified upon verfication of non-compliance of this Circular, without prejudice to sanctions that may be imposed under existing accounting and auditing rules and regulations.

6

Honoraria for Project Personnel

6.1 Personnel assigned to projects shall be entitled to honoraria based on the level of responsibility and the nature of work assigned. For this purpose, the following hierarchical levels, duties and responsibilities of positions shall serve as the basis for assignment and determination of honorarium rates of personnel assigned to projects:

Level I - Project Management Committee Chairperson Vice-Chairperson or equivalent Project Manager/Director or equivalent

Plans, directs and coordinates the activities of the project, and the efficient allocation and utilization of the project's physical, financial, manpower and technological resources, to ensure that its objectives and targets are accomplished in accordance with prescribed priorities, scheduled, timeframe and budgetary allocation.

Or is directly responsible and accountable to the agency head for the effective performance and accomplishment of the project.

Or participates in the overall project planning, policy and strategy formulation and supervision.

Level II - Project Management Committee Member or equivalent Assistant Project Manager or equivalent Project Consultant/Researcher/Expert/ Specialist

Assists project head in carrying out his duties and responsibilities. Acts as Project Manager in the absence of the superior. May undertake the management of specifically assigned group of project components.

Or participates in the overall project planning, policy and strategy formulation and supervision.

Or provides advice on or performs highly specialized research and development work along professional, scientific, technical, creative and artistic matters vital to the successful attainment of the objectives and targets of the project/agency.

Level III - Technical Staff Team Leader/Coordinator Senior Technical Staff/Team Leader

Heads a group of Technical Staff/Team Members who are assigned to a specific project component or groups of components. May formulate own plans, methods of approach, guidelines or procedures subject to the overall project objectives.

Or performs the difficult phases of a specific project component or group of components which may not be subject to technical review but is responsible for its correctness, technical adequacy and reliability.

Level IV - Technical Staff/Team Member

Performs the simple phases of a specific project component or group of components which is subject to technical review and is answerable for its correctness, technical adequacy and reliability.

Level V - Administrative Staff

Undertakes administrative and support services for the project, including but not limited to, personnel, financial, records, supply management and other auxiliary services.

6.2 Project personnel shall be entitled to monthly honoraria not exceeding the following amounts, subject to the specific rules and procedures in this Circular:

Project Position Level
Permissible Ceiling
   
  I   P2,500.00
  II   P2,000.00
  III   P1,600.00
  IV   P1,200.00
  V   P   800.00

6.3 Payment of honoraria for personal covered under Item 6.1 hereof shall be subject to compliance with the following conditions:

6.3.1
Approval of a project plan - The project plan should be approved by the Department Secretary or agency head and should specify objectives, outputs, activities, resource and manpower requirements and costs.
 
6.3.2
Performance-based honoraria - The payment of honoraria shall be performance-based and shall be in accordance with the schedule of submission and acceptance of the outputs stipulated in the approved project plan.
 
6.3.3
Determination of Performance-based honoraria - The determination of the amount of honoraria to be paid to each personnel on assignment to a project shall be based on the schedule of outputs contained in the approved project plan and the guidelines to be prescribed by the Department Secretary or agency head for the project which may include factors such as, but not limited to, performance, productivity and number of hours rendered, using the following categories.

Percentage of Permissible Ceiling
 
  High
100%
  Medium
  80%
  Low
  60%

6.3.4
Official Designation - To be entitled to honoraria, personnel should be specifically designated or authorized to represent agencies or to participate in projects by the head of their mother agencies.
   
6.3.5
Non-Payment of Overtime Service - No personnel shall be paid overtime pay from the project from which is receiving honoraria. He shall, however, be eligible to collect overtime pay for any authorized overtime services rendered to undertake regular office work in his mother unit.

6.4 Project personnel who are on call status a resource persons in a project, shall be paid honoraria on a per project basis at an amount not exceeding P 2,000 per project.

7

Honoraria for Military Personnel

Military personnel who are tendering security service to the Congress of the Philippines including its committees shall be paid monthly honorarium not exceeding the following rates:

  RANK
MONTHLY
HONORARIUM
   
  RATE  
       
  Private
P     600.00
 
  Private First Class
600.00
 
  Corporal
700.00
 
  Sergeant
900.00
 
  Staff Sergeant
1,000.00
 
  Technical Sergeant
1,000.00
 
  Master Sergeant
1,200.00
 
  Second Lieutenant
1,500.00
 
  First Lieutenant
1,700.00
 
  Captain
1,900.00
 
  Major
2,100.00
 
  Lieutenant Colonel
2,300.00
 
  Colonel
2,500.00
 

8

Honoraria for Non-Government Personnel

Non-government personnel who are involved in a government authorized project on an official basis may be entitled to the honoraria prescribed herein, subject to the approval of the Department Secretary or agency head concerned and to the specific rules and procedures in this Circular.

9

Reimbursement of Expenses

Project personnel who, by reason of law or jurisprudence, are not eligible to receive honoraria, shall be allowed reimbursement of miscellaneous expenses not exceeding the following subject to certification under existing auditing rules and regulations:

  POSITION LEVEL
PERMISSIBLE CEILING (per month)
     
  Secretary or equivalent
P 5,000
 
  Undersecretary or equivalent
4,000
 
  Assistant Secretary or equivalent
3,000
 

10

Responsibility of the Head of Department/Agency

The head of department/agency shall be responsible and held personally liable for any honoraria paid not in accordance with the provisions of this Circular, without prejudice to the refund of any excess payment by the officials and employees concerned.

11

Funding Source

Payment of honoraria authorized herein shall be charged against the appropriations of departments/agencies concerned, as provided under the General Provisions of the General Appropriations Act.

12

Resolution of Issues

Issues and conflicts arising from the implementation of this Circular, and cases not covered by the provisions herein shall be submitted to the DBM for resolution.

13

Repealing Clause

All circulars, guidelines, rules and regulations or provisions therein which are inconsistent with the provision of the Circular are hereby modified accordingly. All previous approval and authority granted by the DBM which are inconsistent with this Circular or are in excess of the rates prescribed herein are likewise deemed superseded and modified accordingly.

14

Effectivity

This Circular shall take effect on January 1, 1995.

Adopted: 1 Mar. 1995

(SGD.) SALVADOR M. ENRIQUEZ, JR.
Secretary

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