Rules on Government Casual Employees' Daily Wage

Budget Circular No. 2003-4 provides rules and regulations to rationalize existing policies and practices on the computation and payment of daily wage.
The daily wage computation is aligned with the standards under Section 7, Republic Act No. 6758.
Payment rules apply through the “No Work No Pay” policy for casual employees.

The rules and regulations apply to all casual employees of the government.
The circular governs the computation and payment of daily wage for covered casual employees.
The circular applies at the level of daily wage computation tied to authorized compensation for a position.

Section 3.1 requires that the daily wage rate be derived using this formula:
- Daily Wage Rate = Authorized Monthly Salary for the Position / 22 days.
The computation is based on the authorized monthly salary for the employee’s position.
The divisor is fixed at 22 days for purposes of daily rate derivation.

Section 3.2 requires payment consistent with the “No Work No Pay” policy.
A casual employee must be paid appropriate wage for each day that he actually worked.
The payment entitlement for worked days is computed using the daily wage rate under Section 3.1.
Payment under the formula applies regardless of the number of working days in a month.

Section 3.3 prohibits paying any wages on rest days.
Section 3.3 prohibits paying wages on regular holidays falling on weekdays, unless the casual employee worked on these days.
Section 3.3 prohibits paying wages during leaves of absence without pay.
Wage payment on rest days, specified regular holidays, and unpaid leave is allowed only to the extent permitted by Section 3.3 (for regular holidays on weekdays, only when the casual employee actually worked).

Section 4 requires the Head of Agency to ensure that these rules and regulations are complied with.
The Head of Agency must implement compliance in payroll and wage payment consistent with the circular’s rules.

Section 5 requires that cases not covered by the circular be submitted to the Department of Budget and Management for appropriate action/resolution.

Section 6 amends Section 7.13 of National Budget Circular No. 56.
Section 6 also amends all rules and regulations inconsistent with the provisions of Budget Circular No. 2003-4.

The circular includes Annex “A” showing a sample computation to illustrate daily wage rate computation and payment mechanics under the rules.