Purpose and coverage scope
- The Circular provides guidelines on the representation and transportation allowances (RATA) of contractual personnel.
- The Circular covers all contractual personnel hired by an agency as part of its organization to perform functions and specific vital activities or services that cannot be provided by its regular or permanent staff.
- Covered contractual personnel must hold positions that the Department of Budget and Management determines as comparable or equivalent in rank to positions enumerated under Item 3.1.
- Contractual personnel hired to provide professional consultancy services requiring highly specialized or technical expertise in a field of special knowledge or training are not covered.
- The Circular covers contractual personnel for RATA only when the contractual personnel are hired to perform the covered organizational functions and vital activities or services.
Authorized RATA eligibility rules
- Contractual personnel covered under the Circular may be authorized commutable RATA in accordance with rates prescribed for specific officials and employees under Item 3.1.1 to 3.1.6.
- RATA authorization must also follow conditions enumerated in the pertinent Section of the annual General Appropriations Act (GAA).
- RATA is attached to the performance of the duties and responsibilities of the incumbents, and not to the positions.
- Salary grades do not automatically entitle incumbents to RATA; entitlement applies only to contractual personnel actually performing the duties and responsibilities of their positions.
Rate basis by comparable positions
- The following comparable ranks are recognized for commutable RATA authorization under the Circular:
- Department Secretary (Item 3.1.1).
- Department Undersecretary (Item 3.1.2).
- Department Assistant Secretary / Director IV (Bureau Director and Department Regional Director) (Item 3.1.3).
- Director III (Assistant Bureau Director, Department Assistant Regional Director, Department Service Chief) and Director II (Bureau Regional Director) (Item 3.1.4).
- Director I (Assistant Bureau Regional Director) (Item 3.1.5).
- Chief of Division (Item 3.1.6).
- The Circular links the applicable RATA rates to the rates prescribed for these officials and employees and to the conditions in the pertinent annual GAA section.
Part-time limitation and premium
- Contractual personnel hired on a part-time basis shall not be entitled to RATA.
- Contractual personnel covered under the Circular may still be entitled to a twenty percent (20%) premium in accordance with the pertinent provision of the annual GAA.
Funding and charging of allowances
- The RATA authorized under the Circular shall be charged against project funds when the positions are project-based.
- When positions are not project-based, the RATA authorized under the Circular shall be charged against current savings of the agency concerned.
Accountability of the head of agency
- The head of agency is responsible and personally liable for any payment of RATA not in accordance with the Circular.
- Payment made in violation of the Circular is without prejudice to the contractual personnel’s right to refund of any excess payment by the contractual personnel concerned.
Resolution of uncovered cases
- Appropriate cases not covered by the Circular must be submitted to the Department of Budget and Management for resolution.
Repeal and effect of inconsistencies
- All circulars, guidelines, rules, and regulations inconsistent with the Circular’s provisions are repealed.
Implementing time effect
- The Circular’s effectivity begins on January 1, 1996.