Title
Guidelines for Providing Free Quarters to Officials
Law
Dbm National Budget Circular No. 456
Decision Date
Nov 11, 1996
Guidelines for providing free quarters to designated government officials reassigned away from their domicile are established, detailing eligibility, rental rates, and funding sources to ensure adequate housing support.

Coverage

  • Applies to officials and equivalents assigned or transferred outside their domicile without owning housing
  • Covered officials include:
    • Department Regional Directors (Category A)
    • Department Assistant Regional Directors (Category A)
    • Bureau Regional Directors (Category B)
    • Assistant Bureau Regional Directors (Category B)

Exemptions

  • Not applicable to:
    • Public Health Workers covered by RA 7305 (Magna Carta of Public Health Workers)
    • Uniformed personnel of DILG, DND, and NAMRIA
    • Officials with free quarters expressly provided by existing laws, rules, or regulations
    • Officials stationed abroad

Definition of Free Quarters

  • Free use of government-owned or leased fully furnished lodging
  • Includes basic needs utilities such as telephone, water, and electricity

Guidelines

  • Heads of national government agencies, GOCCs, and financial institutions may provide free quarters within office premises to covered officials reassigned/transferred outside domicile without housing
  • No DBM approval needed for such provision
  • If insufficient space within premises, agencies may rent housing at reasonable rates as per prevailing local rental costs and manual standards
  • Rental contracts to be entered between agency and dwelling unit owner, payments made to owner, not commuted to official
  • Prescribed maximum rental rates by category and locality:
    • Special Cities (e.g., Manila/QC): P3,000 (A), P2,500 (B)
    • Highly Urbanized Cities/Capital Center: P2,500 (A), P2,000 (B)
    • Others: P2,000 (A & B)
  • Rental rates inclusive of telephone, water, and electricity charges
  • Officials desiring more expensive quarters may secure these at their own cost for the difference

Funding Source

  • National government agencies charge expenses to Maintenance and Other Operating Expenses (MOOE) allotment; included in annual office building rental as mandatory expenses
  • GOCCs and financial institutions charge expenses to their corporate funds

Resolution of Cases

  • Issues not covered by Circular submitted to the Department of Budget and Management for resolution

Effectivity

  • Circular effective January 1, 1996
  • Issued November 11, 1996, by Secretary Salvador M. Enriquez Jr.

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