Law Summary

1.0 Purpose

• The purpose of this Circular is to establish guidelines for granting honoraria to government personnel effective FY 2003 and onwards, as mandated by Section 42 of the General Provisions of Republic Act (RA) No. 9206, the 2003 General Appropriations Act (GAA).

2.0 Coverage

• This Circular applies to:
  • National Government Agencies (NGAs)
  • Government-Owned and/or -Controlled Corporations (GOCCs)
  • Government Financial Institutions (GFIs)
• Collectively referred to as government entities.

3.0 Definitions of Terms

• Coordinator: Government personnel directing or participating in seminars and training.
• Facilitator: Personnel providing technical assistance and instructional materials for seminars.
• Lecturer: Individuals from government or private sectors conducting lectures.
• Resource Person: Speakers in seminars and training.
• Training Institution: Agencies mandated to conduct centralized training programs.

4.0 General Guidelines

• Heads of entities are authorized to utilize appropriations for honoraria payments to:
  • Teaching personnel engaged in classroom teaching beyond regular hours.
  • Lecturers, coordinators, and facilitators involved in seminars and training.
  • Members and personnel of collegial bodies not compensated by salaries or per diems.

5.0 Specific Guidelines

• 5.1 Honoraria for Teaching Personnel:

  • Honoraria paid according to National Budget Memorandum No. 95.

• 5.2 Honoraria for Coordinators and Facilitators:

  • Calculated as follows:
    • HTR = MSR / 176 (with MSR being the monthly salary rate).
  • Lecturers and resource persons compensated at the hourly rate of a Professor VI position for lectures and preparation (max 10 hours).
  • No honoraria for personnel serving in their entities.

• 5.3 Honoraria for Collegial Body Members:

  • Chair: 25% of the monthly RATA of the chief operating officer per meeting (max 4 meetings/month).
  • Members: 25% of the monthly RATA of the second-ranking official per meeting (max 4 meetings/month).
  • Personnel: Hourly rate of equivalent positions but not exceeding 8 hours/day or 40 hours/week.
  • Exclusions of other benefits unless provided by law, with existing higher honoraria being retained until contract termination.

• 5.4 Exclusions:

  • Department Secretaries and other high-ranking officials serving ex-officio in collegial bodies are not eligible for honoraria.

• 5.5 Encouragement:

  • GOCCs, GFIs, and LGUs are encouraged to adopt these provisions.

6.0 Prohibition

• Payment of honoraria outside the specified personnel is prohibited unless explicitly authorized by law.

7.0 Funding Source

• Funding for honoraria will be sourced as follows:
  • NGAs: Charged against appropriations in the GAA.
  • GOCCs/GFIs: Charged against corporate funds.
  • LGUs: Charged against local funds.

8.0 Saving Clause

• Cases not covered by this Circular will be resolved by the Secretary of Budget and Management.

9.0 Repealing Clause

• National Compensation Circular No. 75 is rescinded, alongside any inconsistent provisions from other Circulars.

10.0 Effectivity

• This Circular is effective 15 days post-publication in the Official Gazette or a newspaper of general circulation.

Key Takeaways

• This Circular outlines the payment of honoraria for government personnel involved in teaching and training activities, specifying eligible recipients, calculation methods, and funding sources.
• It emphasizes the prohibition of honoraria for non-specified personnel and the need for adherence to existing laws and regulations.
• GOCCs, GFIs, and LGUs are encouraged to align with these guidelines, promoting consistency in the grant of honoraria across government entities.