Guidelines in the Use of

Personnel Services
Appropriations under the FY
2015 General Appropriations
Act (GAA)
National Budget Circular No. 557
Dated June 3, 2015

Policy Statement
O Appropriations for Personnel Services (PS) in

the FY 2015 GAA shall be used to cover the

original purposes for which these are
appropriated, as well as any deficiency in
authorized personnel benefits that may be
determined during the year pursuant to
General Provisions (GP) No. 46 of the FY
2015 GAA. Accordingly, use of PS
appropriations for any PS deficiency will
follow the rules provided herein and shall not
be considered as a form of realignment.

Purpose
O To provide guidelines in the use of PS

appropriations authorized under R.A. No.

10651, laws governing RLIP and earmarked
revenues under SAGF
O To set clear definition of relevant terms to be
used in this Circular; and
O To prescribe the submission of reports in the
utilization of funds covered by this Circular
consistent with budgetary, transparency, and
accountability policies, rules and regulations.

Definition of Terms
O Agency Heads refer to the heads of dept.,

attached agencies and Other Executive Offices

under the Executive Branch, SUCs,
Constitutional Commissions and GOCCs
maintaining Special Accounts in the GF and
other similar entities and instrumentalities
concerned.
O Allotments refer to the budget authorizations
prescribed under NBC No. 556, issued to an
agency permitting it to commit or incur
obligations within the period of time, amount
and purpose indicated therein.

Definition of Terms
O Authorized Personnel Benefits
Basic Salaries, including Step Increment
Standard Allowances and Benefits PERA, UCA,

YEB and Cash Gift

Specific-Purpose Allowances and Benefits
RATA, Honoraria, OT Pay
Per Diem
Night-Shift Differential
Subsistence Allowance
Hazard Pay
Special Counsel Allowance
Overseas & Other Allowances for Government Personnel

Stationed Abroad
Other allowances and benefits as may be authorized by
law or the President

Definition of Terms
O Authorized Personnel Benefits (continuation)
O Incentives
Loyalty Incentive
Anniversary Bonus
CNA Incentives
PEI
PIB (until 2015 only)
PBB
Other existing benefits as may be categorized by

the DBM as incentives.

O Magna Carta Benefits
O Personnel benefits for military and uniformed

personnel as authorized by law or the President

PS Appropriations
Sources of

Sources of
appropriation

Dept./
Agency
Specific

Appropriat
ions

MPBF

Allowabl
Automati e MOOE
c
allotmen
Appropriatio
ts for the
ns
payment
-RLIP
of CNA
-SAGFs
Incentive

Department or Agency Specific

Appropriations for PS
O The appropriations for PS shall be used

for the payment of Authorized Personnel

Benefits, computed based on information
provided in the GMIS (GP No. 46 of FY
2015 GAA)
O Available PS allotments released shall be
used for
Original purpose of appropriations
To cover PS deficiencies in Authorized
Personnel Benefits

Department or Agency Specific

Appropriations for PS
PS deficiencies in Authorized Personnel Benefits such as:
Deficiency in Magna Carta Benefits, subject to approval by the
DBM Secretary for:
Additional recipients newly issued
Valid adjustments due to inadvertent omission in the System

Award of Back Pay

Deficiency in specific-purpose allowances and benefits (OT,

Honoraria and RATA, etc.) Subject to existing conditions in the

grant of such benefits
Authorized Personnel Benefits in PYs, the approval for the
payment of which is granted in the CY. Since PS benefits are
mandatory in nature, actual services rendered or benefits
allowed in prior years shall not be categorized as unbook
obligations. Thus, this may be considered as an exemptions to
the existing policy, rules and regulations on unbooked
obligations.

Department or Agency Specific

Appropriations for PS
O The available PS allotments referred to above

may be realized from unspent compensation of

employees due to the ff:
Incurrence of leaves of absence without pay;
Vacant positions on account of termination,

resignation, transfer, retirement or seperations;

Delay in the actual assumption of duty from the
date of appointment;
Suspension and other disciplinary sanctions;
Erroneous computations of PS benefits; or
Other similar instances

Department or Agency Specific

Appropriations for PS
O In case there is no available PS allotment at the

time when payment of authorized PS deficiency

mentioned
the department or agency may frontload such as

deficiency against the unobligated PS allotments

comprehensively released pertaining to
requirements for the remaining months of the year.
The use of PS appropriations to cover a PS deficiency
shall be subject to approval of Agency Head.
Supported by RAPSA
Said adjustments shall be recorded or reflected in
the RAO for PS and accountability reports (SAAODB)

MPBF
O PS deficiencies of government employees

which cannot be accommodated within the

available PS Allotments of a department or
agency:
Funding requirements for the filling of

positions and creation of new positions; and

Other compensation common to all
Overtime Pay, Step Increment, Performance

Enhancement Incentive, Performance-Based

Bonus and other compensation for specific
groups.

Automatic Appropriations
Released allotment for RLIP cannot

be reallocated to other objects of

expenditures.
As a general rule, SAGFs shall not be
used for payment of PS, unless
expressly authorized in the law
creating them, as in the case of those
agencies enumerated under item
4.1.3.2 hereof.

CNA Incentives
O The CNA Incentives shall be paid from the

allowable MOOE allotments as identified

under GP No. 74 OF THE FY 2015 GAA and
at such rates determined by the DBM. The
allowable MOOE allotments shall have
resulted from cost-cutting and systems
improvement measures undertaken by
the agencies and their respective
personnel, as identified in their respective
Agreements and supplements thereto.

CNA Incentives
Reque
Reque
st
st

Attribut
ed to
GAS

SARO
Certificatio
Certificatio
nn
Latest
Latest
SAAODBOE
SAAODBOE
PS-Other Bonus and Allowances
CNA Incentive - Civilian"
Books of
Account

Repealing Clause
All circulars, memoranda, rules, regulations

and other issuances inconsistent herewith are

deemed repealed and superseded accordingly.

Effectively
This Circular shall take effect immediately
upon its publication.

- End of Presentation -