WHEREAS, a number of government agencies granted Amelioration Assistance in varying amounts to their personnel invoking as legal bases therefore, Rule X of the Omnibus Civil Service Rules, as well as fiscal autonomy and authority to fix and authorize additional compensation pursuant to the enabling Acts or other statutes of some government-owned and-controlled corporations;

WHEREAS, other government entities now request authority to grant similar benefit to their personnel;

WHEREAS, the unilateral and uncoordinated grant of Amelioration Assistance gave rise to demoralization, discontent and dissatisfaction among government personnel who have less or have not yet received such benefit;

WHEREAS, there is need to regulate the grant of such benefit to ensure uniformity and equity and to conform with the policy of standardization of compensation enunciated under RA 6758;

NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, PD 985 and RA 6758, do hereby order and direct:

SECTION 1. All National Government Agencies, Government- Owned and Controlled Corporations (GOCCs) and Government Financial Institutions (GFIs), and Local Government Units are hereby authorized to grant Amelioration Assistance not exceeding the maximum amount of Seven Thousand Pesos (P7,000) each to their personnel, regardless of salary and appointment status, who have rendered at least four (4) months of service as of the payment of the said benefit except those serving under service contract.

Personnel who rendered less than four (4) months of service shall be entitled to an amount proportionate to the actual service rendered while part-time personnel shall be entitled to one-half (1/2) of the benefit of a full-time personnel.

SEC. 2. Heads of NGAs, LGUs including GOCCs and GFIs as well as their respective governing boards are hereby enjoined and prohibited from authorizing/granting Amelioration Assistance or any other similar benefit without prior approval and authorization via Administrative Order by the Office of the President. Henceforth, anyone found violating any of the provisions of this Order, including all officials/employees and the COA Resident Auditor of such government entity found to have taken part thereof, shall be accordingly and severely dealt with in accordance with the applicable provisions of existing administrative and penal laws.

Consequently, all administrative authorizations granting any and all forms of additional compensation paid outside of the prescribed basic salary under RA 6758 that are inconsistent with the legislated policy on the matter or are not covered by any legislative action are hereby revoked.

SEC. 3. All government entities which authorized the payment of Amelioration Assistance in 1998 in excess of the amount authorized herein are hereby directed to cause the refund of the excess within a period of three (3) months to commence after the issuance of this Order.

SEC. 4. Entities are hereby allowed to pay the benefit herein authorized out of any available savings for FY 1998. In case of deficiency, the benefit shall be partially and uniformly implemented. No additional funds for the purpose shall be released by the Department of Budget and Management.

SEC. 5. In the case of GOCCs and GFIs the necessary amount shall be charged against their respective corporate funds, and local government units from their respective local funds.

SEC. 6. Strict compliance by all concerned with the provisions of this Order is enjoined.

SEC. 7. This Administrative Order shall take effect immediately.

Adopted: 21 Nov. 1998