Guidelines on Gov't Salary Computation 2002

The Circular is issued to provide the rules for adjusting the computation of compensation upon implementation of AO No. 32.
The Circular directs that overtime should be handled in a way that supports the domestic tourism intention under AO No. 32.
The Circular sets computation rules for April and May 2002 so that salary, wage, overtime, and allowance payments follow the adjusted working hours.

DBM Budget Circular No. 2002-2 takes effect on April 1, 2002.
The effectivity runs until May 31, 2002.
Daily rate adjustments under the Circular are applicable only for April and May 2002 (Section 4.6).

The Circular does not apply to all uniformed personnel of the Armed Forces of the Philippines, the Department of the Interior and Local Government, and the Philippine Coast Guard (Section 3.1).
The Circular does not apply to employees of government hospitals and health centers and other agencies involved in providing health, safety, police, security, protection and other emergency services (Section 3.2).
The Circular does not apply to government employees who work in any of the three (3) shifts per day in agencies that provide 24 hours service a day (Section 3.3).
The Circular does not apply to individuals whose services are hired not as part of the regular workforce and where there is no employer-employee relationship, including consultants and experts, contract workers hired on piecework basis (pakiao workers), student laborers, apprentices, and others similarly situated (Section 3.4).

Annex A and Annex B are the references for determining daily or hourly salary/wage rates of civilian employees of national government agencies, GOCCs, GFIs, and LWDs (Section 4.1).
The monthly rates in the Salary Schedule under National Budget Circular No. 474, dated June 15, 2001, and their corresponding hourly rates shall not change (Section 4.2).
Only the daily rates change because of the change in the number of working hours per day (Section 4.2).
In accordance with Republic Act No. 6758, the monthly salary schedule rate is computed:
- Daily rate = monthly rate ÷ 22 working days; then
- Hourly rate = daily rate ÷ 8 hours; then
- Daily rate for April and May 2002 = hourly rate × 10 hours (Section 4.3).
The daily rate of government employees who opt to adopt AO No. 32 is shown in Annex A (Section 4.4).
The total wage per month for a daily-paid employee shall not exceed the authorized monthly rate (Section 4.5).
The adjusted daily rates are used only for April and May 2002 (Section 4.6).
The adjusted daily rates shall not be used in computing Retirement Gratuity/Terminal Leave Benefits (Section 4.7).

Overtime work should be avoided except when absolutely necessary, as determined by the agency head, which may issue related additional guidelines (Section 5.1).
Overtime pay is computed at plus 25% of the hourly rate for overtime services, consistent with Budget Circular (BC) No. 10, dated March 29, 1996, except for holidays and previously established rest days (Section 5.2).
Annex B provides the hourly rates used for overtime computation (Section 5.2).

PERA, ADCOM, and other allowances paid on a monthly or daily basis, including allowances paid on a daily basis, part-time basis, or for a fraction of a working day, are computed using the formula:
- PERA or ADCOM or Allowance = Monthly Rate x no. of hours worked during the month ÷ 176 hours (Section 6).
The PERA, ADCOM, and other allowances for the month shall not exceed the authorized monthly rate (Section 6).
A daily-paid employee who has no absences without pay during each month is entitled to the full amount of PERA and ADCOM (Section 6).

The Night-Shift Differential Pay authorized under BC No. 8, series of 1995 applies only to employees who work during the night shift of agencies required to provide 24 hours service (Section 7).
The night-shift differential does not apply to the regular work performed after 6 PM by employees of agencies adopting the 4 day work week (Section 7).

LGUs that opt to adopt the adjusted working hours prescribed in AO No. 32 must likewise adopt the formulae in Section 4.3 (salary division method to get daily/hourly rates and the April–May adjustment) and Section 6.0 (PERA/ADCOM/allowance computation) (Section 8).

The head of agency is responsible and personally liable for any payment of salaries/wages and additional compensation that is not in accordance with the Circular (Section 9).
Any excess payment made in violation of the Circular is without prejudice to the refund of the excess payment by the employee concerned (Section 9).

Republic Act No. 6758 governs the conversion of monthly salary schedule rates to daily and hourly rates under the Circular’s computation method (Section 4.3).
National Budget Circular No. 474 dated June 15, 2001 supplies the monthly salary schedule rates used as the basis for daily/hourly computations (Section 4.2).
Budget Circular (BC) No. 10 dated March 29, 1996 governs the overtime pay basis of plus 25% of the hourly rate, subject to the specified exceptions (Section 5.2).
BC No. 8, series of 1995 governs the Night-Shift Differential Pay rule that the Circular limits to specified circumstances (Section 7).