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: ADMINISTRATIVE ORDERS
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ADMINISTRATIVE ORDER NO. 268
ADMINISTRATIVE ORDER NO. 268 -
RATIONALIZING THE GRANT OF PRODUCTIVITY INCENTIVE BENEFITS FOR CALENDAR
YEAR 1991 TO ALL PERSONNEL OF GOVERNMENT AGENCIES
WHEREAS, a number of agencies of the
Government granted year-end productivity incentive benefits or other
similar allowances to their officials and employees invoking as legal
bases therefore Section s 31, 35 and 36(2), Chapter 5, Subtitle A, Title
I, Book V of the Administrative Code of 1987 as well as fiscal autonomy
and authority to fix and authorize additional compensation/allowances
pursuant to the enabling Acts or other statutes of some
government-owned or -controlled corporations, and in view thereof,
other departments, agencies and offices now request authority to grant
similar benefits to their personnel;
WHEREAS, the second paragraph of Sec. 35, Chapter 5, Subtitle A,
Title I, Book V of the Administrative Code of 1987 provides that "[i]n
accordance with rules, regulations, and standards promulgated by the
[Civil Service] Commission, the President or the head of each
department or agency is authorized to incur whatever necessary expenses
involved in the honorary recognition of subordinate officers and
employees of the government who by their suggestions, inventions,
superior accomplishments and other personal efforts contribute to the
efficiency, economy, or other improvement of government operations, or
who perform such other extraordinary acts or services in the public
interest in connection with, or in relation to their official
employment."
WHEREAS, the Acting Chairman of the Civil Service Commission, in his
letter dated 11 February 1992, has opined that "in exceptional cases,
an incentive scheme wherein all the employees of the department or
agency are granted productivity incentive bonus on the basis of their
individual and collective efforts which enabled the agency to meet its
targets may be considered to be in conformity with Sec. 35," Chapter
5, Subtitle A, Title I, Book V of the Administrative Code of 1987;
WHEREAS, notwithstanding budgetary constraints and the series of
natural calamities that had hit the country during the past two years,
the agencies of the Government have exceeded or at least met their
respective targets for Calendar Year 1991;
WHEREAS, the productivity incentive benefits granted by the different
agencies are of varying amounts, causing dissension/demoralization on
the part of those who had received less and those who have not yet
received any such benefit, thereby defeating the purpose for which the
same should be granted; and
WHEREAS, there exists the need to regulate the grant of the
productivity incentive benefits or other similar allowances in
conformity with the policy on standardization of compensation pursuant
to Republic Act No. 6758;
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order:
Section 1. All agencies of the National Government
are hereby authorized to grant productivity incentive benefits to their
full-time permanent, temporary and casual employees, including
contractual employees with employment in the nature of a regular
employee, who have rendered at least one (1) year of service in the
Government as of 31 December 1991.
Government-owned or -controlled corporations and local government units
may also grant productivity incentive benefits to their officials and
employees under the same terms and conditions prescribed herein;
Provided, That the necessary amount shall be sourced from available
corporate or local government funds, as the case may be: Provided,
further, That no funding support shall be required from the National
Government.
Sec. 2. The agencies shall pay each official and
employee the productivity incentive benefits in a maximum amount
equivalent to thirty percent (30%) of his one (1) month basic salary
but in no case shall such amount be less than two thousand pesos
(P2,000.00).
Sec. 3. Payments made by heads of agencies for
productivity incentive benefits or other allowances of similar nature
prior to this Administrative Order shall be considered compliance with
the benefits herein authorized: Provided, That payments made in excess
of the rates prescribed in the preceding section shall be adjusted
accordingly. In this connection, all heads of the agencies concerned
are hereby directed to cause the return/refund of excess payments
through any of the following modes:
a.
Regular salary deductions for a period of ten (10) months from 1 March
1992 to 31 December 1992; or
b. If the
concerned official or employee has sufficient accumulated leave
credits, the return/refund may be charged, with the said official's or
employee's prior consent, against the leave credits earned.
Sec. 4. Government-owned or -controlled
corporations and financial institutions previously granted separate
authority by the Office of the President and/or the Department of
Budget and Management to grant a one-time payment of the productivity
incentive benefits or other allowances of similar nature for Calendar
Year 1991 are not covered by the provisions on return/refund of the
preceding section: Provided, That these government-owned or -controlled
corporations and financial institutions can no longer avail themselves
of the benefits herein authorized: Provided, further, That
government-owned or -controlled corporations and government financial
institutions that granted similar benefits for Calendar Year 1991
without the prior approval of the Office of the President and/or the
Department of Budget and Management shall be subject to the provisions
of this Administrative Order.
Sec. 5. The amount necessary for government
agencies to implement the provisions of this Administrative Order shall
be sourced from savings in their respective Calendar Year 1992 Budgets:
Provided, That in the case of agencies which have previously obligated
and paid the benefits herein prescribed out of their 1991
appropriations, a corresponding amount chargeable against their 1992
appropriations shall be imposed as reserves in addition to the
mandatory reserves prescribed under Administrative Order No. 265 dated
31 January 1992.
Sec. 6. For the purpose of ensuring the
implementation of this Administrative Order, a Special Account is
hereby created to be funded from the additional 5% reserves to be
imposed on the appropriations of all regular government agencies under
the 1992 General Appropriations Act. This fund shall be over and above
the reserves already mandated pursuant to Administrative Order No. 265,
subject to the same conditions prescribed under paragraph 2 of Sec. 1 thereof.
Sec. 7. The productivity incentive benefits herein
authorized shall be granted only for Calendar Year 1991. Accordingly,
all heads of agencies, including the governing boards of
government-owned or -controlled corporations and financial
institutions, are hereby strictly prohibited from authorizing/granting
productivity incentive benefits or other allowances of similar nature
for Calendar Year 1992 and future years pending the result of a
comprehensive study being undertaken by the Office of the President in
coordination with the Civil Service Commission and the Department of
Budget and Management on the matter.
The formulation of the necessary implementing guidelines for Executive
Order No. 486 dated 8 November 1991 establishing a performance-based
incentive system for government-owned or -controlled corporations shall
likewise be included in the comprehensive study referred to in the
preceding paragraph.
Sec. 8. All heads of government agencies and the
respective COA Auditors-in-Charge are required to submit their reports
of compliance herewith to the Department of Budget and Management. Such
reports shall contain the following:
a.
Information on the number of beneficiaries and amount granted in
accordance with format attached hereto (Annex "A");
b. Proposed
schedule of refunds to be remitted to the Bureau of the Treasury which
schedule shall be submitted within thirty (30) days from the receipt of
this Administrative Order; and
c. Report on
duly verified/certified refunds actually received which shall be
submitted on or before 31 December 1992.
Sec. 9. Non-compliance with any of the provisions
of this Administrative Order shall be severely dealt with in accordance
with the provisions of existing laws and shall be the personal
liability of the officials and employees found to be directly
responsible therefore.
Sec. 10. The Department of Budget and Management
is hereby directed to deduct from whatever future releases due a
particular government agency the corresponding amount representing
refunds in view of the latter's failure to collect said refunds from
its officials and employees concerned.
Sec. 11. The productivity incentive benefits
herein authorized shall not be subject to the withholding tax, GSIS
premiums, medicare and other similar deductions.
Sec. 12. This Administrative Order shall take
effect immediately.
DONE in the City of Manila,
this 21st day of February, in the year of Our Lord, nineteen hundred
and ninety-two.
ANNEX "A"
AGENCY:_______________________________
DATE GRANTED:_________________________
Salary No. of Amount
Grade Recipients
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