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[ BUDGET CIRCULAR NO. 2018-1, March 09, 2018 ]


Adopted: 08 March 2018
Date Filed: 09 March 2018

1.0 Background

Section  50 of the General  Provisions  of Republic  Act (R.A.) No. 10964  or the Fiscal  Year  (FY)  2018  General  Appropriations   Act  (GAA)  provides  that  an amount not exceeding Six Thousand Pesos (P6,000) per annum is authorized for the payment of U/CA of each qualified government employee, subject to the guidelines, rules and regulations issued by the Department of Budget and Management (DBM).

2.0 Purpose

This  Circular  is issued  to prescribe  the  updated  rules  and  regulations  on  the grant of the U/CA to civilian personnel.

3.0 Coverage

This  Circular  covers  civilian  government  personnel  occupying  regular, contractual, or casual positions; appointive or elective; rendering services on full- time or part-time basis.

4.0 Exclusions

The following are excluded from the coverage of this Circular:
4.1 Military   personnel   of  the  Armed   Forces   of  the  Philippines   under   the Department of National Defense and uniformed personnel of the Philippine National Police, Philippine Public Safety College, Bureau of Fire Protection, and Bureau of Jail Management and Penology under the Department of the Interior  and  Local  Government,  Philippine  Coast  Guard  under  the Department  of  Transportation,   and  the  National  Mapping  and  Resource Information  Authority  under  the  Department  of  Environment  and  Natural

4.2 Foreign service personnel of the Department of Foreign Affairs and of other departments/agencies  who are stationed abroad;

4.3 Barangay officials and employees paid monthly honoraria; and

4.4 Those hired without employer-employee relationships and funded from non- Personnel Services appropriations/budgets,  as follows:
4.4.1  Consultants  and experts hired for a limited period to perform specific activities or services with expected outputs;

4.4.2  Laborers  hired  through  job  contracts  (pakyaw)  and  those  paid  on piecework bases;

4.4.3  Student laborers and apprentices; and

4.4.4  Those whose  services  are engaged  through  job orders,  contracts  of service, and others similarly situated.
5.0 Rationale of the Grant of U/CA

The U/CA is granted to defray expenses for uniforms or distinctive clothing which are the required appropriate  attire for employees  in the regular performance  of their work. In general, such uniforms or clothing are intended to:
5.1 Identify the employees with their mother agencies and to convey emblem of authority; and

5.2 Serve   as   protective   or   working   clothing;   especially   for   maintenance, workshop, and farm personnel.
6.0 Rates of the U/CA
6.1 For FY 2018, the U/CA for full-time  service of government  personnel  shall not exceed P6,000 per annum. For each subsequent  year, the U/CA shall not exceed the amount authorized  under the pertinent  general provision  in the annual GAA.

6.2 The U/CA per annum for part-time service shall be in direct proportion to the U/CA for full-time service. For example, the U/CA for part-time service in FY 2018 shall be computed as follows:
U/CA (Part-Time Service in FY 2018) = (P6,000) (x hours of part-time service/day) 8 hours of full-time service
6.3 If funds in GOCC or LGU budgets  are not sufficient  to implement  fully the U/CA authorized for the fiscal year, the U/CA may be granted at lower but at uniform rates for all qualified personnel.
7.0 Forms and Other Details of the U/CA
7.1 The U/CA may be granted in the following forms:
7.1.1  In the form of uniforms procured though a bidding process which may include   uniform   articles   normally   worn   as  part   thereof   such   as regulation  caps,  belts,  etc.,  for  incumbents  of positions  like  Special Police, Security Guard, etc.;

7.1.2  In the form of textile materials and cash to cover sewing/tailoring costs, as has been adopted by very large departments; and

7.1.3 In cash form, for incumbents of executive positions who may not be required to wear the prescribed uniforms, or for those who will procure their individual uniforms according to set conditions.
7.2 As far as practicable, such uniform/clothing shall use Philippine tropical fibers pursuant to R.A. No. 9242#, s. 2004.
7.3 Shoes  shall  be  on  the  personal  accounts  of  officials/employees,   unless provided for by law.
8.0 Government Service Requirement
8.1 Generally, the full rates of the U/CA for full-time and part-time service shall be granted to those who are already in government service and are to render services for at least six (6) months in a particular fiscal year, including leaves of absence with pay.

8.2 The six (6)-month service requirement shall not cover those who are required to wear uniforms at all times in the performance of their work such as incumbents of positions of Security Guard, Special Police, medical and allied medical  staff in hospitals,  and those  in similar  situations,  as they have  to wear their uniforms at all times.
9.0 Grant of U/CA Due to Various Personnel Actions/Engagements
9.1 Newly-Hired Employee

A newly-hired employee may qualify to the grant of U/CA only after rendering six (6) months of service, and if expected to render services for at least six (6) months for the rest of the year.

9.2 An Employee on Detail

The U/CA of an employee on detail to another government agency shall be borne by the mother agency.

9.3 Transferred Employee
9.3.1  An employee who transferred to another agency and was not granted U/CA by the former agency shall be granted U/CA by the new agency, subject to the submission of a certification to that effect.

9.3.2  An employee  who transferred  to another  agency  within the year but was earlier granted U/CA by the previous agency shall no longer be granted U/CA by the new agency.

9.3.3  An employee  who  transferred  to another  agency  and  is required  to wear uniforms at all times, may be granted U/CA by the new agency even if he/she was granted U/CA by the former agency, subject to the approval of the new agency head.
9.4 Employee on Study Leave or Study/Training/Scholarship Grant
9.4.1  An  employee  on  study  leave  or  on  study/training/scholarship  grant locally or abroad shall be entitled to the U/CA for the year if he/she renders at least six (6) months of service in the same year, including leaves of absence with pay, prior to and/or after the study leave or study/training/scholarship grant.

9.4.2  If  an  employee  is  on  study/training/scholarship  grant  for  the  whole year, locally or abroad, and is not required to report for work, he/she is not entitled to the U/CA.
10.0   Fund Sources of the U/CA
10.1 For National Government Agencies (NGAs), including SUCs:
10.1.1 The amount of P5,000 per employee is already provided under the agency-specific    budget   and   included   in   the   comprehensive release of allotments through the GAA as Allotment Order.

10.1.2   The  additional  requirement   of  P1,000  per  employee  shall  be charged   against   the   Miscellaneous   Personnel   Benefits   Fund (MPBF) under the FY 2018 GAA.
10.2   For GOCCs, the amount required shall be charged against their respective approved corporate operating budgets.

10.3   For LGUs, the amount required shall be charged against their respective local government funds.
11.0   Personnel Services Limitation in LGUs

The grant of U/CA in LGUs shall be subject to the Personnel Services limitation in LGU budgets pursuant to Sections 325(a) and 331(b) of R.A. No. 7160 or the “Local Government Code of 1991.”

12.0   Responsibilities of Agencies

Agencies   shall  be  held  responsible   for  the  proper   implementation   of  the provisions of this Circular.
12.1  They shall issue internal guidelines on the grant of the U/CA such as, determination   of  the  form  of  U/CA,  and  selection  of  uniform/clothing designs.

12.2   They  shall  also  issue  internal  guidelines  on:  the  prescribed  uniform  or clothing for specific or special employee groups; modified uniforms as may be necessary due to religious affiliations or creed, physical disabilities, or legitimate health reasons; and monitor compliance with set guidelines on wearing uniforms and appropriate attire.
12.3   They shall be held liable for any grant of U/CA not in accordance with the provisions of this Circular without prejudice, however, to the refund by the employees concerned of any excess or undue payments.
13.0   Resolution of Cases

Cases not covered by the provisions of this Circular shall be referred to the DBM for resolution.

14.0   Repealing Clause

This Circular repeals Budget Circular No. 2012-1 dated February 23, 2012.

15.0   Effectivity

This Circular shall take effect immediately.


[1] An Act Prescribing the Use of the Philippine Tropical Fabrics for Uniforms of Public Officials and Employees and for Other Purposes dated February 10, 2004
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