WHEREAS, certain government agencies in previous years have been paying medical and incentive allowances to their personnel on the basis of actual grants by the previous administration;

WHEREAS, the employees of these government agencies are expecting the continuation of these allowances and have accordingly made financial commitments on the basis of these expectations;

WHEREAS, it is the policy of the government not to diminish the established compensation levels of its employees in order to maintain as much as possible, their standard of living, pending the completion of a study being conducted by the Ministry of Budget and Management to standardize the compensation of all government personnel;

WHEREAS, in consonance with the government's policy of protecting the welfare of its employees, it is important to authorize the granting of these allowances for the current year.

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

SECTION 1. All national government agencies which have provided in the past medical and incentive allowances to their personnel are hereby authorized to continue the payment of said benefits on the same basis and amounts as in the previous year.

SECTION 2. The payment of said benefits shall depend on the availability of savings from funds previously released and shall not require additional releases from the National Treasury

SECTION 3. The Ministry of Budget and Management shall provide the necessary guidelines for the implementation of this Executive Order.

SECTION 4. This Executive Order shall take effect immediately.

Manila, December 24, 1986


By the President:

(Sgd.) JOKER P. ARROYO
Executive Secretary