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: ADMINISTRATIVE ORDERS
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ADMINISTRATIVE ORDER NO. 29
ADMINISTRATIVE ORDER NO. 29 -
AUTHORIZING THE GRANT OF CY 1992 PRODUCTIVITY INCENTIVE BENEFITS TO
GOVERNMENT PERSONNEL AND PROHIBITING PAYMENTS OF SIMILAR BENEFITS IN
FUTURE YEARS UNLESS DULY AUTHORIZED BY THE PRESIDENT
WHEREAS, the faithful implementation of
statutes, including the Administrative Code of 1987 and all laws
governing all forms of additional compensation and personnel benefits
is a Constitutional prerogative vested in the President of the
Philippines under Sec. 17, Article VII of the 1987 Constitution;
WHEREAS, the Constitutional prerogative includes the determination of
the rates, the timing and schedule of payment, and final authority to
commit limited resources of government for the payment of personnel
incentives, cash awards, productivity bonus, and other forms of
additional compensation and fringe benefits;
WHEREAS, some government agencies have overlooked said Constitutional
prerogative and have unilaterally granted to their respective officials
and employees incentive awards;
WHEREAS, the office of the President issued Administrative Order No.
268, dated February 21, 1992, strictly prohibiting the grant of
Productivity Incentive Bonus or other allowances of similar nature for
Calendar Year 1992 and future years pending the issuances of the
requisite authorization by the President;
WHEREAS, notwithstanding said prohibition some government
offices/agencies and government-owned and/or controlled corporations
and financial institutions have granted productivity incentive benefits
in varying nomenclature and amounts without the proper
authorization/coordination with the Office of the President;
WHEREAS, the unilateral and uncoordinated grant of productivity with
incentive benefits gave rise to discontentment, dissatisfaction and
demoralization among government personnel who have received less or not
have received at all such benefits;
NOW, THEREFORE, I FIDEL V. RAMOS, President of the Republic of the
Philippines, by virtue of the powers vested in me by law and in order
to forestall further demoralization of government personnel do hereby
direct:
Section 1. All agencies of the national Government,
including government-owned and/or controlled corporations and
government financial institutions, and local government units, are
hereby authorized to grant productivity incentive benefits in the
maximum amount of ONE THOUSAND PESOS (P1,000.00) each to their
permanent and full-time temporary and casual employees, including
contractual personnel with employment in the nature of a regular
employee, who have rendered at least one (1) year of service in the
Government as of December 31, 1992.
Sec. 2. The prohibition prescribed under Sec. 7
of Administrative Order No. 268 is hereby reiterated. Accordingly, all
heads of government offices/agencies, including government-owned and/or
controlled corporations, as well as their respective governing boards
are hereby enjoined and prohibited from authorizing/granting
Productivity Incentive Benefits or any and all similar forms of
allowances/benefits without prior approval and authorization via
Administrative Order by the Office of the President. Henceforth, anyone
found violating any of the mandates in this Order, including all
officials/employees and the COA Auditor-in-Charge of such government
office/agency found to have taken part thereof, shall be accordingly
and severely dealt with it accordance with the applicable provisions of
existing penal laws.
Consequently, all administrative authorization to grant any form of
allowances/benefits and all forms of additional compensation usually
paid outside of the prescribed basic salary under R.A. No. 6758, the
Salary Standardization Law, that are inconsistent with the legislated
policy on the matter or are not covered by any legislative action are
hereby revoked.
The implementation of Executive Order No. 468 dated November 8, 1991,
as amended by Executive Order No. 518 dated May 29, 1992, is hereby
deferred until a more comprehensive and equitable scheme for the grant
of the benefits that can be applied government-wide is formulated by
the Department of Budget and Management.
Sec. 3. The Department of Budget and Management,
thru its Compensation and Position Classification Bureau, is hereby
directed to undertake a comprehensive review and study of the existing
compensation system and policy in the government, and when necessary
formulate/devise a unified and standardized Position Classification and
Compensation Plan which will not be limited to basic salary but to
include all forms of allowances/benefits and all other forms of
compensation.
Sec. 4. All departments, offices and agencies
which authorized the payment of CY 1992 Productivity Incentive Bonus in
excess of the amount authorized under Sec. 1 hereof are hereby
directed to immediately cause the return/refund of the excess within a
period of six (6) months to commence fifteen (15) days after the
issuance of this Order.
Sec. 5. The Department of Budget and Management is
hereby directed to immediately transfer to the Reserve Control Account
as part of CY 1993 mandatory reserves an amount equivalent to the
aggregate total of the agency appropriations used for the payment of
the Productivity Incentive Benefits and other similar benefits in
violation of Administrative Order No. 268. This shall be in addition to
the five-percent (5%) reserve mandated pursuant to Sec. 67 of the
General Provisions of R.A. No. 7645, the General Appropriations Act for
CY 1993.
Sec. 6. To implement the benefit herein
authorized, a Special Account be created, to be funded from an
additional 5% reserve imposed on all maintenance and other operating
expenses of all agencies of the government which is in addition to that
imposed under Sec. 67 of the General Provisions of R.A. No. 7645,
and Sec. 5 of this Order.
Sec. 7. Agencies are hereby allowed to pay the
benefit herein authorized out of any available funds prior to the
release of the Advice of Allotment.
Sec. 8. Agencies are mandated to submit to the
Department of Budget and Management (DBM) a Supplemental Work and
Financial Plan to cover the total requirement for the Productivity
Incentive Benefit indicating the source of the amount mandated to be
immediately transferred to the Reserve Control Account referred to in
Sec. 5 and the additional 5% reserve imposed on all maintenance and
other operating expenses referred to in Sec. 6 of this Order, within
fifteen (15) days from the date of the issuance of this Order. In case
of failure on the part of government offices/agencies to submit said
requirement within the period herein prescribed the Department of
Budget and Management is hereby empowered to determine the specific
item from which subject amount will be deducted.
Sec. 9. In the case of government-owned and/or
controlled corporations and government financial institutions the
necessary amount shall be sourced fully from their respective corporate
funds, and the local government units from their respective local funds.
Sec. 10. Strict compliance by all concerned with
the provisions of this Order is enjoined.
Sec. 11. This Administrative Order shall take
effect immediately.
DONE in the City of Manila,
this 19th day of January, in the Year of Our Lord, Nineteen Hundred and
Ninety-Three.
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