Purpose

To prescribe guidelines for the implementation of Memorandum Order (MO) No. 227 dated August 26, 1994 amending MO No. 228 dated March 29, 1989 which determines the funding source for payment of overtime services of government personnel.

2

Guidelines

2.1 Agencies are hereby authorized to pay overtime services out of the following sources:

2.1.1 The amounts specifically appropriated in the agency budget for overtime pay.

2.1.2 Savings from released allotments for current operating expenditures, subject to the following limitations:

2.1.1.1 All authorized mandatory expenses shall have been first; and

2.1.2.2 Total overtime in a given calendar year shall not exceed five percent (5%) of the actual current operating expenditures of the agency.

2.2 Agencies are hereby authorized to use savings from released allotments for current expenditures for the payment of overtime services without need for prior authority from the Department of Budget and Management, provided, that the conditions set under Section 21.2 hereof are satisfied.

2.3 The applicable accounting rules and regulations to implement the provisions of this Circular shall be issued by the Commission on Audit.

3

Repealing Clause

Provision(s) of existing circulars and other issuances which are inconsistent with the provisions of this Circular are hereby rescinded/repealed and/or modified accordingly.

4

Effectivity

This Circular shall take effect on January 1, 1995

Adopted: 28 Feb. 1995

(SGD.) SALVADOR M. ENRIQUEZ, JR.
Secretary