MALACAÑAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

[ Memorandum Circular No. 743, May 31, 1974 ]

PROVIDING GUIDELINES CONCERNING THE PAYMENT OF GRATUITIES OF SEPARATED AND/OR RETIRED PERSONNEL OF THE DEFUNCT CONGRESS AND THE COMMISSION ON APPOINTMENTS, INCLUDING THOSE RE-EMPLOYED IN THE GOVERNMENT SERVICE.

WHEREAS, the Commissioner of the Budget has issued Budget Circular No. 146, dated May 21, 1974, providing for the payment of another 25 percent of the still unpaid gratuities due to separated or retired personnel of the Government;

WHEREAS, many of those separated or retired personnel, specifically from the defunct Congress, including the Commission on Appointments, by virtue of the effectivity of the new Constitution, have been re-employed, and, by virtue of Presidential Decree No. 366 dated January 3, 1974 were not required to refund the money value of the unexpired portion of the leave commuted if re-employed on a contractual basis; and

WHEREAS, notwithstanding the benefits extended under Presidential Decree No. 366, a number of those re-employed who have received their separation and/or retirement gratuities have failed to refund to the Government certain fractions of the gratuities received, as required by law, notwithstanding their present receipt of salary and other emoluments as a consequence of re-employment;

WHEREFORE, in the implementation of the aforecited Budget Circular No. 146, all heads of departments, bureaus, offices, agencies and instrumentalities of the Government, including government-owned or controlled corporations, both national and local, are hereby required to comply with the guidelines herein set forth, as follows:

1. The payment of an additional 25 percent of gratuity, in accordance with Budget Circular No. 146, dated May 21, 1974, to all personnel of the defunct Congress and the Commission on Appointments who have been previously separated or retired from, and are now reemployed in, the government service, shall be held in abeyance pending the determination of whether or not they are entitled to receive such portions of the gratuity, or a fraction thereof, or to still refund any portion of the sums which they have previously received, in accordance with law, and with accounting and auditing rules and regulations.

2. The disbursing officers of any government organization or unit are hereby require to effect proportionate deductions from the salaries or emoluments due to all personnel of the defunct Congress and the Commission on Appointments who have been previously separated or retired from, and are now re-employed in, the government service, such portions of the monies due them, as consequence of such re-employment, if it shall have been determined that the said personnel should refund to the Government certain sums or fractions of the gratuities which they have previously received.

3. In case of any future re-employment of personnel mentioned in the preceding two paragraphs who have been previously separated or retired from the government service, as a consequence of the effectivity and implementation of the new Constitution, and have received any amount representing gratuity, or portions thereof, provisions must be made to effect automatic deductions from their pay, to insure the proper compliance with all requirements by law in this regard.⚖ - ℒαɯρhi৷

Strict compliance with the provisions of this Circular by all concerned is enjoined.

By authority of the President:

(SGD.) ROBERTO V. REYES
Acting Executive Secretary

Manila, May 31, 1974


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