WHEREAS, certain government agencies which, had given medical allowance to their employees in previous years were allowed to continue the payment of the medical allowance out of their savings in CY 19S5 under Executive Order No. 110 dated December 24, 1986;

WHEREAS, a majority of the other agencies are not covered by Executive Order No. 110;

WHEREAS, it is the policy of the government to provide similar or equal benefits to its personnel;

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Republic of the Philippines, do hereby order:

SECTION 1. All national government agencies not covered by Executive Order No. 110 dated December 24, 1986 as well as government owned or controlled corporations are hereby authorized to make a one-time payment of medical allowance to their full-time regular and casua1 employees.

SECTION 2. The amount of said benefit shall be Two Thousand Pesos (P2,000) per employee.

SECTION 3. The benefits provided herein are payable only to those employed as of December 31, 1986 and who continue to be employed as of the date of the effectivity this Executive Order.

SECTION 4. The medical allowance granted under this Executive Order as well as under Executive Order No. 110 dated December 24, 1986 shall only be limited to CY 1986 operations. Similar benefits for 1987 and future years shall not be allowed, pending the results of a more comprehensive compensation study being done by the Department of Budget and Management.

SECTION 5. The amounts necessary to implement this Executive Order shall be taken from the aggregate savings in 1986 of the National Government. Any deficiency shall be charged against the Compensation and Organizational Adjustment Fund for 1987.

SECTION 6. This Executive Order shall take effect immediately.

Done in the City of Manila, this 3rd day of March in the year of Our Lord, nineteen hundred and eighty-seven.


By the President:

(Sgd.) JOKER P. ARROYO
Executive Secretary