QuestionsQuestions (DBM-GSIS JOINT CIRCULAR NO. 99-3)
It covers (1) contractual personnel hired under a specific contract for a specific period and definite expected output, creating an employer-employee relationship with the hiring agency; and (2) government statutory expenditures on Personal Services, specifically the government share of premiums for RLIP, Medicare, ECIP, and PAG-IBIG.
It refers to those hired in accordance with a specific contract for a specific period and definite expected output, employed to undertake a particular work or project, with a hiring that creates an employee-employer relationship between the contractual and the hiring agency.
They are the government share of premiums for retirement and life insurance (RLIP), health insurance (Medicare), employees’ compensation insurance (ECIP), and PAG-IBIG.
Membership in GSIS is compulsory for all employees receiving compensation who have not reached compulsory retirement age, regardless of employment status, except AFP and PNP members, subject to certain conditions (e.g., settling financial obligations with GSIS).
Yes. The Circular explains that contractuals are included under compulsory coverage when there is an employer-employee relationship, per the IRR clarification (Section 2.1.2 of the IRR).
Members of the Armed Forces of the Philippines and the Philippine National Police are excepted from compulsory membership (subject to the condition on settling financial obligations with GSIS mentioned in the text).
Coverage of the PAG-IBIG Fund is mandatory upon all employees covered by the Social Security System and GSIS and their respective employers.
RA 7875 is cited for mandatory health insurance, and PD 626 is cited for mandatory employment compensation insurance benefits.
It allows payment of compensation inclusive of fees, honoraria, per diems and allowances not exceeding 120% of the minimum salary of an equivalent position, and not to exceed the salary of the immediate superior, chargeable against the agency’s Personal Services funds.
It took effect on January 1, 1999.
It should be paid out of the 20% premium given to contractual personnel pursuant to Section 44 of the 1999 GAA.
No. The Circular explicitly states that no additional funds shall be released by DBM for this purpose.
It shall be adjusted accordingly net of the government statutory expenditure on Personal Services, consistent with Item 4.1 above.
The individual contractual employees pay the employee’s share for RLIP, Medicare, and PAG-IBIG.
Both employee and government shares must be remitted by the agency directly to the GSIS within the prescribed period under RA 8291.
The conditional requirements indicated are applicable in succeeding years when the grant of premium pay for contractual personnel is so provided/authorized under the General Appropriations Act.
It states that it shall take effect immediately.