Title
Local Govt Honoraria Guidelines, 1996
Law
Dbm Local Budget Circular No. 62
Decision Date
Jul 29, 1996
Guidelines for granting honoraria to local government personnel and national officials assigned to local units are established, detailing compensation rates based on roles and responsibilities, while ensuring compliance with budgetary constraints and performance-based evaluations.

Law Summary

Definitions

  • Honoraria: Additional compensation for services beyond regular duties
  • Local government activity/special project: Temporarily assigned activities with specific timeframes (minimum one month) and outputs outside normal functions
  • Project Component: Distinct subgroup within a project with independent planning and deliverables

Coverage

  • LGU personnel performing duties beyond regular functions regardless of funding source
  • Recognized researchers, experts, specialists (not consultants)
  • National officials assigned to LGUs (e.g., judges, prosecutors, teachers)
  • LGU officials/employees appointed temporarily in concurrent roles

Honoraria for Project Personnel

  • Honoraria rates vary by hierarchical level and responsibility:
    • Project management chairperson/manager: P2,500 monthly
    • Committee members, assistant managers, consultants: P2,000
    • Technical staff team leaders/coordinators: P1,600
    • Technical staff/members: P1,200
    • Administrative staff: P800
  • Project plans must specify objectives, timelines, outputs, and resources
  • Payments are performance-based according to approved project schedules
  • Honoraria amount considers performance, productivity, and hours rendered classified as high (100%), medium (80%), or low (60%) percentages
  • No overtime pay from project duties, but regular work overtime pay still applies
  • On-call resource persons may receive up to P2,000 per project
  • Non-government personnel may receive honoraria subject to approval and rules
  • DBM approval not required for honoraria but subject to available LGU funds

Honoraria for National Officials

  • Sets honoraria for judges, prosecutors, and teachers in LGUs to not exceed RATA rates for local department heads
  • Pre-existing higher honoraria rates before RA 6758 may continue but terminate with incumbent’s departure
  • National officials can receive allowances from multiple LGUs but total must not exceed authorized maximum
  • Granting honoraria follows conditions of LBC No. 55 (March 15, 1994)

Honoraria for Temporary Vacancy Filling

  • Officials/employees filling temporary concurrent positions:
    • Not exceeding P1,000/month in provinces/cities, P800/month in lower class municipalities, and P600/month in municipalities below 3rd class
    • Those with prior authorized higher rates may continue until current incumbent ends
  • Non-RATA entitled personnel assigned to RATA positions may receive RATA or honoraria as specified
  • Personnel entitled to RATA assigned to higher positions may receive the difference in rates or prescribed honoraria
  • Lateral concurrent assignments for one month or more allow honoraria as stated

Limitations on Expenditures

  • LGUs must ensure funding availability without breaching the 45%/55% personal services expenditure limit under the Local Government Code

Accountability of Local Chief Executive

  • Responsible for unlawful honoraria payments
  • May be required to recover excess or unauthorized payments from officials/employees involved

Discretion for Uncovered Cases

  • Issues not addressed by this Circular to be referred to the Department of Budget and Management for resolution

Repeal and Effectivity

  • Prevailing inconsistent rules modified accordingly
  • Circular effective from January 1, 1996, or upon appropriation availability in LGU budgets

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