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