MALACAÑAN PALACE
MANILA
BY THE PRESIDENT OF THE PHILIPPINES
[ Memorandum Order No. 324, October 5, 1990 ]
PROVIDING GUIDELINES FOR THE GRANT OF YEAR-END BENEFITS TO OFFICIALS AND EMPLOYEES OF GOVERNMENT OWNED AND/OR CONTROLLED CORPORATIONS INCLUDING GOVERNMENT FINANCIAL INSTITUTIONS
WHEREAS, it has been the practice of government owned and/or controlled corporations (GOCCs) including government financial institutions to grant year-end benefits or Christmas Bonus to their officials and employees;
WHEREAS, these corporations give varying amounts of year-end benefits to their officials and employees;
WHEREAS, Republic Act No. 6758 provides for the standardization of compensation of government officials and employees, including those in government owned or controlled corporations;
WHEREAS, a uniform rule for the grant of year-end benefits to officials and employees of government owned and/or controlled corporations including government financial institutions is necessary to insure equity and consistency;
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:
Section 1. Coverage. — The year-end benefits shall apply to all officials and employees of government owned and/or controlled corporations (GOCCs) including government financial institutions, whether permanent, temporary, casual or contractual, on full-time basis, who have rendered a total of four (4) months service including leaves of absence with pay in the government, whether in the national or local government, or in another GOCC, from January 1 to October 31 of each year and who are still in the service as of October 31 of the same year.
Section 2. Maximum Amount of Year-End Benefits. — GOCCs may be allowed year-end benefits at a maximum amount equivalent to one (1) month salary plus ₱1,000.00 cash gift. The monthly salary shall correspond to the actual basic salary as defined under the Department of Budget and Management Compensation Circular No. 10 dated October 2, 1989 implementing Republic Act No. 6758. Payment of year-end benefits other than that authorized under this Memorandum Order shall be considered as illegal disbursement of public funds.
Officials and employees of GOCCs who have rendered less than four months of government service from January 1 to October 31 of each year and who are employed in the government service as of October 31 of the same year shall be entitled solely to the cash gift equivalent to the amount of monthly pay proportionate to the number of months served for the year, but shall not be less than ₱200.00.
Section 3. Prohibition. — No official or employee shall receive year-end benefits from any and all sources in excess of the one month basic salary and One thousand pesos (₱1,000.00) cash gift.
Section 4. Approval of the Board. — The grant of year-end benefits herein authorized must be approved by the governing board of the corporation.
Section 5. Funding Requirements. — Funds to implement the grant of year-end benefits in GOCCs shall be sourced from corporate funds or savings, without any additional support or contributions from the National Government.1aшphi1
Section 6. Repealing Clause. — All previous authorizations granted to any GOCC to grant year-end benefits in an amount not consistent with what is authorized under this Memorandum Order are hereby repealed or amended accordingly.
Section 7. Sanctions. — Heads and members of the governing boards of any GOCC are henceforth barred from authorizing payments of additional benefits in any form whatsoever on top of the amount herein authorized. Subject officials, as well as all other officials and employees, who have direct participation in any unauthorized grant of benefits, shall be held jointly and severally liable without prejudice to requiring the refund by the officials and employees concerned.
Section 8. Effectivity. — This Memorandum Order shall take effect immediately.
DONE in the City of Manila, this 5th day of October, in the year of Our Lord, nineteen hundred and ninety.
(Sgd.) CORAZON C. AQUINO
By the President:
(Sgd.) CATALINO MACARAIG, JR.
Executive Secretary
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