Compensation and Benefits for Contractual Personnel
- Effective January 1, 2000, contractual personnel shall receive compensation equivalent to the position they occupy as determined by the Department of Budget and Management (DBM).
- Their salary shall not exceed the salary range for the equivalent regular position.
- They are entitled to allowances and other benefits authorized for regular government employees, charged against personal services funds.
Definition and Nature of Individual Professional Consultants
- Individual professional consultants are experts in specialized fields contracted through service contracts.
- Their services are primarily advisory, requiring highly specialized or technical expertise not found among regular agency staff.
- Their contracts do not create an employer-employee relationship with the agency, as provided under Section 81 of RA 8760 (FY 2000 General Appropriations Act).
Compensation of Individual Professional Consultants
- Until specific guidelines are issued, their remuneration shall not exceed 120% of the minimum basic salary of the equivalent position in the agency.
- This is based on the agency’s approved allocation list following National Budget Circular No. 433 dated March 1, 1994.
Benefits and Payment for Individual Professional Consultants
- Remuneration includes all benefits due for their services.
- They are not entitled to additional benefits normally given to regular government employees.
- Their pay is charged against Maintenance and Other Operating Expenses (MOOE), as provided by existing laws and regulations.
Distinction Between Contractual Personnel and Individual Professional Consultants
- Both are hired for specific contracts, periods, and outputs.
- They differ in service nature: Contractual personnel provide more general services with employer-employee relationship; consultants provide specialized advisory services without such relationship.
- Compensation funding source differs: contractual personnel from Personal Services budget; consultants from MOOE.
Compensation Guidelines Application
- Contractual personnel, including those in Foreign Assisted Projects, are compensated following the rules for contractual personnel.
- Individual professional consultants are compensated following the guidelines for consultants.
Hiring of Non-Experts Under Section 81 of the GAA
- Non-experts such as drivers and clerks cannot be hired individually as consultants.
- They must be hired under service contracts through public bidding or negotiated contracts.
- Such contracts must comply with relevant accounting rules and regulations.
Final Guidance
- Agencies are directed to adhere to these distinctions and compensation rules accordingly.
(Signature and Date)
- Issued by Benjamin E. Diokno, Secretary, on June 1, 2000.