Purpose

This Circular is issued to amend Budget Circular No. 4, dated June 28, 1991, in accordance with Section 43 of Republic Act (RA) 8174 or the FY 1996 General Appropriations Act.

Amendments

1. Section 43 of RA 8174 provides that "Personnel Economic Relief Allowance (PERA) in the amount of Five Hundred Pesos (P500.00) per month shall be granted to all appointive national and local government employees occupying itemized plantilla positions with Salary Grade 23 or below, or Salary Grade 24 without representation and/or transportation allowance..."

In view thereof, the following provision is hereby added as Item 2.3 to the said Circular.

"2.3 All appointive employees of the government occupying itemized plantilla positions at Salary Grade 24 without transportation and representation allowances; and all casual and contractual employees of equivalent Salary Grade who have rendered at least twelve (12) months of continuous or uninterrupted service as of January 1, 1996 or thereafter."

2. Items 3.2 and 3.3 on Exceptions of the same Circular are hereby amended to read as follows:

"3.2 Employees occupying positions allocated to Salary Grade 25 or higher, whether or not they are receiving transportation and representation allowances.

3.3 Employees occupying positions allocated to Salary Grade 24 or lower but are entitled to and/or receiving transportation and representation allowances whether on commutable or reimbursable basis, provided that, if the amount is less than P500, they shall receive the difference.

The amount needed to implement this Circular shall be charged against the following funds:

1. For national government agencies, the amount shall be charged against the amount appropriated for PERA. In case of deficiency the same shall be charged against savings from released allotment for current operating expenditures provided that all authorized mandatory expenses shall have been paid first.

2. For government-owned and - controlled corporations and government financial institutions, the amount shall be charged against their respective corporate funds.

3. For local government units, the amount shall be charged against their respective local funds.

This Circular shall take effect January 1, 1996.

Adopted: 02 Feb. 1996