Question & AnswerQ&A (DBM CIRCULAR LETTER NO. 2000-11)
Contractual personnel are those hired according to a specified contract for a specified period with a definite expected output, employed to undertake a particular work or project, creating an employee-employer relationship with the hiring agency.
They shall be paid compensation equivalent to the position determined by the Department of Budget and Management but not exceeding the salary of the position and are entitled to allowances and benefits authorized for regular employees chargeable against Personal Services.
They are experts in a field of special knowledge or training, contracted through service contracts to render particular advisory outputs or services requiring highly specialized expertise, with no employer-employee relationship with the agency.
They shall be paid a remuneration not exceeding 120% of the minimum basic salary of their equivalent position in the agency based on the approved allocation list by the Department of Budget and Management.
No. Their remuneration is inclusive of all benefits for their services, and they are not entitled to other benefits accruing to regular government personnel.
Their compensation is charged against Personal Services.
Their remuneration is charged against Maintenance and Other Operating Expenses.
Differences include the nature of services rendered, the kind of working relationship with the agency (employer-employee for contractual personnel, no such relationship for consultants), and the funding source for their compensation.
No. Non-experts cannot be hired individually under Section 81 of the GAA but may be hired through service contracts via public bidding or negotiated contracts subject to accounting rules.
The Department of Budget and Management, as stated in DBM Circular Letter No. 2000-11, governs the compensation equivalency for contractual personnel.