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MALACAÑAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

[ Memorandum Order No. 228, March 29, 1989 ]

PRESCRIBING GUIDELINES GOVERNING THE RENDITION AND PAYMENT OF OVERTIME SERVICES OF GOVERNMENT PERSONNEL

WHEREAS, Section 18 of Article XVTII of the Constitution directs that: “At the earliest possible time, the Government shall increase the salary scales of officials and employees of the Government”;

WHEREAS, Section 5 of P.D. No. 1597 provides that policies and levels of allowances and other fringe benefits including honoraria or other forms of compensation which may be granted to government employees shall be reviewed subject to the approval of the President upon recommendation of the Secretary of Budget and Management;

WHEREAS, existing rules and policies on overtime, and other related matters including the basic rate of overtime compensation require rationalization and updating;

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:

1. In general, rendition of overtime services may be authorized where the work or activity has to be completed on a fixed date and the scheduled date of completion cannot be met within regular work days and hours; or where, although there is no fixed date of completion, the prolonged delay in, or non-completion of the work or activity shall:

(a) cause financial loss to the government of its instrumentalities;

(b) embarrass the government due to its inability to meet its commitments; or

(c) negate the purposes for which the work or activity was conceived.

2. Overtime services rendered in all departments, bureaus, offices and agencies of the national government, including state universities and colleges, government-owned and/or controlled corporations and local government units shall be compensated as follows:

(a) Overtime compensation by the hour shall be computed on the basis of the authorized annual basic salaries of the officials and employees concerned. The total overtime compensation which may be allowed an employee for a given calendar year shall not exceed fifty percent (50%) of the total aggregate sum of his basic salary per annum;

(b) Meal allowance in kind at ?20.00 per meal may be granted to officials and employees who have rendered at least three (3) hours of overtime services before meal time.1aшphi1 Availment of the meal allowance in kind shall constitute a bar from collecting the overtime compensation authorized under paragraph (a) hereof; and

(c) The funding source for overtime pay shall be out of savings from personal services appropriation of the agencies concerned. Total overtime payments made in a given calendar year shall not exceed five percent (5%) of’ the agency/office actual payroll for personal services.

3. The Department of Budget and Management in consultation with the Commission on Audit shall issue the necessary rules and regulations to implement this Memorandum Order.

4. Letter of Instructions No. 565, series of 1977, is hereby modified accordingly.

5. This Memorandum Order shall take effect immediately.

DONE in the City of Manila, this 29th day of March, in the year of Our Lord, nineteen hundred and eighty-nine.

(Sgd.) CORAZON C. AQUINO

By the President:

(Sgd.) CATALINO MACARAIG, JR.
Executive Secretary

The Lawphil Project - Arellano Law Foundation

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