Question & AnswerQ&A (DBM LOCAL BUDGET CIRCULAR NO. 62)
The purpose is to prescribe rules and regulations on the grant of honoraria in local government units (LGUs) to conform with national government honoraria rates, RA 7160, and Presidential Administrative Order No. 42, s. 1993.
Honoraria is a form of compensation paid to a government official or employee for services rendered in addition to, but forming part of, their regular duties and responsibilities.
It is an undertaking by a composite group of officials/employees from one or more LGU departments or offices, which is not part of their regular functions, has a timeframe of at least one month, and produces outputs outside regular LGU outputs.
The Circular covers LGU personnel performing duties in projects beyond regular functions, acknowledged experts and specialists (not receiving consultancy fees), certain national officials assigned in LGUs, and LGU officials filling temporary vacancies concurrently.
The levels and monthly rates are: Project Management Committee Chairperson/Vice-Chairperson or equivalent - P2,500; Project Management Committee Member/Assistant Project Manager or equivalent - P2,000; Technical Staff Team Leader/Coordinator and Senior Technical Staff - P1,600; Technical Staff/Team Member - P1,200; Administrative Staff - P800.
The project plan must specify objectives, outputs, schedules, resource and manpower needs, and costs, and payment of honoraria is performance-based according to the submission and acceptance schedule of outputs.
No, personnel receiving honoraria for project services are not entitled to overtime pay for such services but may receive overtime pay for authorized overtime in their regular office work.
National officials assigned in LGUs may receive honoraria not exceeding the maximum rate authorized for department heads in the locality, inclusive of all compensation from the LGU, with some exceptions for incumbents as of June 30, 1989.
Officials or employees filling temporary vacancies in LGUs may receive honorarium up to P1,000 per month in provinces and cities or P800 in certain municipalities; other provisions allow adjustments depending on entitlement to RATA and position level.
The Local Chief Executive is personally liable for honoraria payments not in accordance with the Circular's provisions and must ensure refunds for any excess payments by officials and employees.