Policy on Overtime
- Overtime should be avoided through adequate work planning.
- Overtime is only justified in unforeseen or emergency situations causing:
- Financial loss to government or its entities;
- Embarrassment due to failure to fulfill commitments;
- Defeat of the purpose for the work or activity.
Coverage
- Applies to:
- Personnel from chief of division and below in permanent, temporary, casual, or contractual status resembling regular employment.
- Those designated to Career Executive Service positions at chief of division and below.
Exemptions
- Department Secretaries, Undersecretaries, and Assistant Secretaries.
- Bureau and Regional Directors and their assistants.
- Department Service Chiefs and assistants.
- Equivalent ranks in State Universities/Colleges, LGUs, GOCCs, and GFIs.
- Intermediate positions created above chief of division.
- Elective officials.
- Appointive officials of rank higher than chief of division.
Computation of Overtime Services With Pay
- Overtime includes hours beyond 8 hours/day, work on rest days, and holidays.
- Hourly rate = Monthly salary / (22 days x 8 hours).
- Overtime pay formulas:
- Ordinary days: 1.25 x hourly rate x hours worked.
- Rest days/holidays: 1.5 x hourly rate x hours worked.
- Annual overtime pay capped at 50% of annual basic salary.
- Contractual personnel paid overtime based on rate excluding 20% premium.
Conformance with CSC Rules
- Overtime authority must comply with Civil Service Commission rules, particularly Rule XVII on Government Office Hours.
Meal Allowance
- Meal allowance cannot be used as overtime payment.
Funding Source
- Overtime pay funded from:
- Specific budget appropriations for overtime.
- Savings from allotments for current operating expenses, subject to:
- Payment of mandatory expenses first.
- Overtime not exceeding 5% of total salaries of authorized positions annually.
- Agencies may use savings without prior DBM approval if conditions met.
- GOCCs, GFIs, LGUs, and project personnel must use their respective funds.
Resolution of Issues
- Issues or conflicts in implementation or uncovered cases forwarded to DBM for resolution.
Repealing Clause
- Provisions inconsistent with this Circular in existing issuances are repealed or modified.
Effectivity
- Circular effective April 1, 1996.