Chapter

6
PART II. HUMAN RESOURCE MANAGEMENT AND DEVELOPMENT

COMPENSATION AND BENEFITS

A. Salary Standardization
It is a policy of the government to provide equal pay for substantially equal work. An employee's
salary is based on his position title which is allocated to a certain salary grade which consists of several
steps. His salary may be increased from step to step without promotion. If he doesn't get the promotion,
but performs satisfactorily, his salary may be increased a step every after three years of service. His
salary may also be increased based on a government - wide salary standardization, or sometimes acrossthe-board increases.
The official/employee is notified of the resulting Salary Adjustment through a Notice of Salary
Adjustment (NOSA) duly signed by the Director-General or his duly authorized representative.
The said adjustments are also subject to the mandatory requirements of the GSIS Life and
Retirement Premiums, and Home Development Mutual Fund (HDMF) contribution, withholding tax, and
other mandatory deductions.

B. Allowances

1. Personnel Emergency Relief Allowance (PERA)

NEDA personnel occupying itemized plantilla positions are entitled to Personnel Emergency and
Relief Allowance (PERA) amounting to Five Hundred Pesos (P500.00) per month immediately upon
assumption to duty. However, a casual or contractual personnel is entitled to PERA only after 12
months of continuous or uninterrupted service. (Budget Circular 4, dated June 28, 1991)
2.

Representation and Transportation Allowances (RATA)

Officials who are expressly authorized by law are the only ones who can collect commutable
representation and/or transportation allowances.
a. The officials/employees who are entitled to receive RATA are as follows (Sec. 317, GAAM):
u
u

Those who are expressly authorized in the General Appropriation Act (GAA) and those of
equivalent rank as may be determined by the DBM; and
Those who are duly designated by competent/appointing authority to a vacant position which
is entitled to RATA.

b. The grant of commutable transportation allowance must be expressly authorized by law or

provided in a budget approved by an appropriating body.
c.

Officials and employees receiving commutable transportation allowance are no longer entitled to
the use of any government vehicle in the performance of their official duties, except as may be
approved by the President. Officials issued with a vehicle is no longer allowed to claim the
transportatiion allowance whether he uses the vehicle or not per COA Circular 99-007 dated
June 15, 1999.

d. Commutable RATA, by its very nature, are additional perquisetes attached to a position, the
enjoyment of which presupposes actual rendition of service incident to or in connection with the
discharge of official duties.
e. An employee who is not authorized by the GAA to collect RATA but is designated to a position
vacated temporarily by the incumbent on account of his attending a training course, scholarship
grant, seminar or similar activity, or on vacation or sick leave, is entitled to the regular RATA of
the position on a reimbursable basis provided:
u
u

He is duly designated by the appointing authority; and

He is expressly authorized in his Office Order to collect RATA

Requirements for Reimbursable Representation and Transportation Expenses are as follows:

a. Authority by the head of the agency;
b. Receipts covering the expenses actually incurred or certification of expenses incurred; and
c.

Expenses should be for official purposes

3. Additional Compensation (ADCOM)

All personnel are entitled to Five Hundred Pesos (P500.00) additional compensation, whether he
is a regular or full time casual, temporary or contractual personnel whose employment is in the nature of
a regular employee provided that he is not under preventive suspension or have been meted suspension
without pay (BC #15, s. 1998)
4. Clothing Allowance
A NEDA employee whether occupying permanent or contractual position is entitled to a clothing
allowance every year, provided he has served NEDA for at least six consecutive months and provided
he shall serve for another six months from the day he received said allowance. In case an employee
resigns or is terminated for cause without satisfying the required period, he shall refund the clothing
allowance granted him. ( Article 5, section 305.9 of GAAM)
5. Hazard Pay
It is a compensation premium or allowance which may be allowed to NEDA officials and employees
who, because of the nature and or location of work, are actually assigned in hardship or difficult areas, in
embattled areas, distressed or isolated regions, areas affected by volcanic activity/eruption including
subsequent flow of lahar and other pyroclastic materials, radiation exposed clinics and laboratories,
disease-infected areas, and areas declared under state of calamity or emergency.

6. Productivity Incentive Bonus (PIB)

Pursuant to National Compensation Circular No. 73, s. 1994, this incentive pay is based on
individual productivity and performance. To be entitled to PIB, an employee should have at least
satisfactory performance rating for the two semesters immediately preceding the year in which the
incentive pay is released. The amount of incentive that will be paid to deserving officials/employees may
vary within the agency depending on their individual performance appraisal. For budgeting purposes, it
shall however not exceed the average of P2,000 per occupied plantilla position of the agency.
7. Year-End Bonus (YEB) and Cash Gift (CG)
a. The following personnel are entitled to year-end bonus pursuant to Budget Circular 11 dated 31
October 1996 as amended by Budget Circular 11-B dated 30 March 1998:
1) All government personnel under regular, temporary or coterminus status and contractual
personnel whose employment is in the nature of a regular employee who are under any of
the following instances:
u Those who have rendered at least a total of four months of service including leaves
absence with pay;
u Those who are preventively suspended or meted the penalty of reprimand; and
u Those who have rendered less than four months of service as of 31 October shall
entitled only to the cash gift prorated as follows:
Length of Service
Three months but less than four months
Two months but less than three 3 months
One month but less than two months
Less than one month

of

be

Percentage
40
30
20
10

b. Personnel who are under any of the following instances as of 30 April or as of 31 October shall
not be entitled to the benefits authorized herein:
1) Those found guilty of an offense between 01 November of the previous year and
31
October of the current year. In case there is a difference between the year-end bonus he
received at the time he committed the offense and the year-end bonus at the time of decision,
he shall be entitled only to the difference if the latter is higher or be made to refund the
difference if the latter is lower;
2) Those with pending cases, viz;
u

when they are formally charged in administrative cases, i.e., their offices have found, after
preliminary investigation, that a prima facie case exists against them and the requisite
written formal charge has been issued by the disciplining authority;

when they have cases pending before the Office of the Ombudsman, the Prosecutor's
Office or of other administrative bodies which relate to acts or omissions in connection
with their official duties or functions and where it has already been resolved by the
Offices concerned that there exist prima facie cases; and

u when there is pending criminal information filed against them in Courts which relate to acts
or omissions in connection with their official duties or function.

3) Those who are absent without official leave (AWOL). In the case of those availing of the
advance payment of the YEB, they should not have incurred at least one day AWOL or
vacation leave without pay during the period, 01 January-30 April;
4) Those who are no longer with the government due to retirement/resignation/separation/ death
or for whatever reasons at the time of the grant of the benefit; and
5) Those who are hired not as part of the organic manpower of government but as consultants
or experts for a limited period to perform specific activities and others who are similarly
situated.
The YEB of regular employees shall consist of a bonus equivalent to their actual basic monthly
salaries as of October, exclusive of allowances and other forms of compensation usually paid in addition
to their basic pay, and cash gift of P 5,000.00 pursuant to R.A. 8441, An Act Increasing the Cash Gift to P
5,000.00, Amending for the Purpose Certain Sections of RA 6686.
Personnel who opt not to avail of the loan shall be paid the full amount of their YEB not earlier than
15 November but not later than 30 November.
C. Leave Benefits
A leave of absence is generally defined as a right granted to officials and employees not to report for
work with or without pay as may be provided by law and as the rules prescribe in Rule XVI of the
Omnibus Rules implementing Book V of EO 292 (CSC MC 41, s. 1998).
1. Kinds of Leave
Pursuant to CSC MC 41, s. 1998, the types of leaves are as follows:
a. Vacation Leave refers to leave of absence granted to officials and employees for
reasons, the approval of which is contingent upon the necessities of the service.

personal

b. Sick Leave refers to leave of absence granted only on account of sickness or disability on the
part of the employee concerned or any member of his immediate family. Immediate family
refers to the spouse, children, parents, unmarried brothers and sisters and any relative living
under the same roof and dependent upon the employee for support.
Similar to the vacation leave credits, employees earn 15 days sick leave with pay
for each year of actual service.
c.

Forced/Mandatory Leave refers to the vacation leave required of officials and employees with
10 days or more vacation leave credits, which is either continuous or intermittent, for a minimum
of five (5) working days annually and it shall be forfeited if not taken during the year.

d. Maternity Leave refers to leave of absence granted to female government employees legally
entitled thereto in addition to vacation and sick leave, the primary intent of which
is to extend
working mothers some measures of financial help and to provide her a period
of rest and
recuperation in connection with her pregnancy.
e. Paternity Leave refers to the privilege granted to a married male employee allowing him not to
report for work for seven (7) working days while continuing to earn his compensation, on the
condition that his legitimate spouse has delivered a child or suffered a miscarriage for purposes
of enabling him to effectively lend care and support to his wife before, during and after childbirth
as the case may be and assist in caring for his new-born child.

f.

Terminal Leave refers to money value of the total accumulated leave credits of an
employee based on the highest salary received prior to or upon retirement date/voluntary
separation.

g. Special Privileges Pursuant to CSC MC 6, s. 1999, this refers to leave of absence

with
pay which officials and employees with or without existing Collective Negotiation
Agreement
(CNA), may avail of for a maximum of three (3) days annually, in addition to the vacation, sick,
maternity and paternity leaves.
h. Study leave refers to the time off from work not exceeding six (6) months with pay for
the
purpose of assisting qualified officials and employees to prepare for their bar or board
examinations or to complete their masteral degree. The leave is covered by a
contract
between the beneficiary and the agency head or his representative.

i.

Sabbatical Leave Pursuant to CESB Cir. # 11, s. 1993, this refers to an officials leave from
work of not more than six months with pay to pursue any of the following activities:
1. Sabbatical for Personal Growth, i.e., attendance in training programs, pursuit
of advance studies, or other forms of professional advancement;
2. Sabbatical for Social Service, i.e., involvement in a countryside development project of an
accredited Non-Government Organization (NGO) or a Local Government Unit (LGU),
teaching in a state university or college or rendering assistance to an LGU where his/her
expertise is required; and
3. Sabbatical for Research and Book Writing This type of leave is granted to Career
Executive Service Officers (CESOs) and CES eligibles who are incumbents of CES positions
for seven years of very satisfactory service in CES position and every seven years of very
satisfactory performance thereafter and as an encouragement for high performance in the
future. It aims to provide officials with the opportunity to further their professional
development and growth and it also serves as a venue for creativity and demonstration of the
officials executive excellence where their
personal expertise is utilized for public
service outside of NEDA.

2. Entitlement/Availment of Leave Privileges

Appointed NEDA officials up to the level of the Director-General and employees who are permanent,
temporary, casual or coterminous who render work during the prescribed office hours, are entitled to 15
days vacation and 15 days sick leave annually with full pay exclusive of Sundays, Saturdays, Public
Holidays, without limitation as to the number of days of vacation and sick leave that they may
accumulate. Contractual employees are likewise entitled to vacation and sick leave privileges. (CSC MC
14, s. 1999)
An employee who is dismissed from the service but was later exonerated and thereafter reinstated
is also entitled to leave credits during the period he was out of service. However, if he is separated for
cause, he shall forfeit his leave credits.
Whenever a NEDA employee goes on leave of absence, he shall accomplish the CSC- Prescribed
Application for Leave Form (Annex 9) where the purpose or reason for such leave will have to be clearly
indicated.
The leave form is controlled, prenumbered and issued by the Administrative Staff of the CO or
(Operations Division of the NROs). Upon issuance of the form, he shall accomplish, sign and submit it to

the Personnel Action and Information Services of the Administrative Staff

for CO
and Operations
Division for NROs, for processing. The employee's leave balance at the time he filed his application shall
be indicated therein. This shall be returned to the employee and submitted to proper authorities for their
appropriate action as follows:
-----------------------------------------------------------------------------------------------------------Personnel Going on Leave
Recommending Approval
Approving Official
-----------------------------------------------------------------------------------------------------------Deputy Director-General
Director-General
Asst. Director-General
Deputy Director-General
Director-General
Director IV
Asst.
Director-General
Deputy Director-General
Director III
Director IV
Asst. Director-General
Division Chief
Director III
Director IV
Below Division Chief
Division Chief
Director III
-----------------------------------------------------------------------------------------------------------No application for leave shall be recommended for approval unless processed by the Administrative
Staff /Operations Division.
Upon the final action of the employee's supervisor, he will finally submit his application to the
Administrative Staff/Operations Division. It is the responsibility of the concerned personnel to inform the
Administrative Staff of his approved leave application. This application should be attached to the
validated Staff Weekly Report of Attendance covering
the period.
However, when the employee requests the commutation of his salary corresponding to the leave
applied for, his application is approved for the Director-General by the Administrative Staff Director, for
the Central Office personnel and Directors IV, for the NROs.
If the employee is absent without approved leave for 30 calendar days, he is considered on
absence without official leave (AWOL) and he may be dropped from the service without prior notice.
However, when the exigencies of the service require his immediate presence and he fails or refuses
to return to the service, after official notice, the head of office may drop him from the service even prior
to the expiration of the 30-day period .
Application for leave of absence for 30 days or more should be accompanied by a clearance from
financial and property accountability.
Following are the other policies to be observed when an employee applies for a leave
absence:

of

a. Vacation Leave An application for vacation leave for a full day or more should be filed in
advance or whenever possible, five (5) days before the effectivity date of the leave. He should
not start his vacation leave unless his application therefor has been approved, otherwise, he
shall be considered on Absence Without Official Leave (AWOL).
Since vacation leave is contingent upon the needs of the service, its grant is
discretionary on the part of the approving authority. Thus, the mere filing of such leave application
does not entitle an employee to go on leave outright. Prior to taking his vacation, he must see
to it that his application for leave is approved by
proper authorities. Notwithstanding the
approval of his application for a vacation leave of absence, he can be recalled anytime in the
exigencies of the service.

Pursuant of CSC MC # 15, s. 1989 and to protect the interest of the public service, all
applications for leave of absence where the purpose or reason for such leave is for employment
in private or other government offices, either inside or outside the country, is not allowed;
b. Sick Leave When a NEDA employee gets sick, he may file an application for leave
immediately on the day he returns from such leave. During the period of his absence, he should
inform his supervisor, through the fastest means of communication, so that he will not be
considered AWOL. He may also go on sick leave if a member of his family becomes ill or dies.
When a NEDA employee undergoes medical examination, or a scheduled operation or
was advised to rest in view of ill health, he may file his application in advance duly supported
by a medical certificate. A medical certificate is also required
to support a sick leave of
absence taken in excess of five days or if the Chief doubts his claim of ill health, regardless of
the number of days.
Chiefs are encouraged to verify the validity of such claim and, if not satisfied with the
reason given, should disapprove the application for leave. It is also the discretion of proper
authorities to authorize any government physician to do a spot check on
employees who are
supposed to be on sick leave. If he is found violating the leave laws,
rules or regulations,
he may be dealt with accordingly by filing appropriate administrative case(s) against him.
Application for leave of absence on account of wounds or injuries incurred in the performance
of his duty extending beyond his available leave credits must be made on the prescribed form
and supported by proper medical certificate and evidence showing that the wounds or injuries
were incurred in the performance of his duty. The Director-General may direct that absence
during any period of disability shall be on full pay but
not exceeding six (6) months and in
his discretion, may also authorize the payment of the employee's medical, transportation,
subsistence and hospital fees. Absences in these
cases are charged against his vacation and
sick leave credits, if any.
c.

Mandatory/Forced Leave - In recognition of an employee's need to rest, an employee is

required to go on vacation leave, whether continuous or intermittent for a minimum of five (5)
working days within the calendar year, provided he has an accumulated vacation leave credit
of 10 or more days under the following conditions:
1) The head of office shall, upon prior consultation with the employees, prepare a staggered
schedule of the mandatory five-day vacation leave of officials and employees but
may
cancel said schedule in the exigency of the service.
2) The madatory annual five-day vacation leave shall be forfeited if not taken during the
year. However, if the scheduled leave is cancelled, it shall no longer be deducted
from
the total accumulated vacation leave of the concerned
official/employee.
3) Retirement and resignation from the servicein a particular year without completing the
calendar year do not warrant forfeiture of the corresponding leave credits if concerned
employees opted not to avail of the required five-day mandatory vacation leave.
4) Those with accumulated vacation leave of less than ten (10) days have the option to go
on forced leave or not. However, officials and employees with accumulated vacation
leave of 15 days who availed of monetization for ten (10) days are still required to go
on forced leave.

d. Maternity Leave - A married NEDA employee who has rendered an aggregate of two or more
years of government service is entitled to maternity leave of 60 days with full pay in addition to
the sick and vacation leave granted her. However, if she has rendered one (1) year or more but
less than two (2) years of government service at the time of the enjoyment of the maternity leave,
the computation of the maternity leave with pay shall be proportionate to her length of service. If
she has served for less than one year, she is entitled to 60 days maternity leave with half pay.
The privilege is granted in every instance of her pregnancy irrespective of its frequency.
The enjoyment of maternity leave cannot be deferred but should be enjoyed within
the actual period of delivery in a continuous and uninterrupted manner not exceeding 60
calendar days. If the privilege is not enjoyed, it is considered waived or forfeited.
When the employee wants to report back to duty before the expiration of her
maternity leave, she may be allowed to do so without refunding the commuted money value of
the unexpired portion of her maternity leave and therefore shall be paid the corresponding
salaries for actual services she renders effective the day she reports back for work, subject to a
certification of a physician that she is physically fit for work.
Hereunder are other rules on Maternity Leave:
1. Maternity leave with pay may be granted even if the delivery occurs not more than 15
calendar days after the termination of her service as her right thereto has already accrued.
2. If at the time of her pregnancy she is not actually working but she is on extended leave
without pay, she may still be entitled to maternity leave with pay;
3. If at the time of her pregnancy there is a pending administrative complaint filed against her,
she is still entitled to maternity leave benefits.
4. Married contractual employees are likewise entitled to maternity leave.
e. Paternity Leave This may be availed of by a married NEDA male employee occupying a
career or non-career position, on the days immediately before during and after the childbirth or
miscarriage of his legitimate spouse for the first four (4) deliveries of his legitimate spouse with
whom he is cohabiting reckoned from the effectivity of the Paternity Leave Act on July 15, 1996.
Married male employee with more than one (1) legal spouse is entitled to avail of
paternity leave for an absolute maximum of four (4) deliveries regardless of whichever
spouse gives birth. He should file his application form within a reasonable period prior to the
expected delivery except in the case of miscarriage and abnormal deliveries which are
unforeseen. The approval of such leave is mandatory on the part of the approving authority
unless his services are urgently needed to preserve life and property in which case he shall be
entitled to overtime pay.
Paternity leave is noncommulative and non-convertible to cash. The following are the
validation requirements to be attached to Application for Paternity Leave which should be
submitted to the Administrative Staff:
1. Certified true copy of Marriage Contract
2. Birth Certificate of newly born child
3. Medical Certificate with pathology reports in case of miscarriage duly signed by the
attending physician or midwife showing actual date of the childbirth or miscarriage.

Fraudulent claim for Paternity Leave is punishable by a fine not exceeding Twenty
Five Thousand Pesos (P25,000) or imprisonment of not less than 30 days but not more than six
months or separation from the service for dishonesty.
f.

Terminal Leave it is applied for by an official or an employee who intends to sever his
connection with NEDA. The filing of application for terminal leave requires as a condition sine
qua non, an employee's resignation, retirement or separation from the
service without any
fault on his part. It must be shown first that public employment cease
by any of the said
modes of severances.
Application of terminal leave is approved by the Director-General or his authorized
representative. Clearance from the Ombudsman is not required for processing and payment of
terminal leave but such clearance is needed for payment of retirement
benefits.
The entitlement to terminal leave or commutation of leave credits is exclusive of
Saturdays, Sundays and holidays without limitation and regardless of the period when the credits
were earned. The period within which to claim the benefit must be within ten (10) years from the
time the right of action accrues upon an obligation created by law and payment of which is based
on the highest monthly salary received at any time during the period of employment in the
government service and not on his latest salary, unless
the latter is the highest salary he
received.
If he is on terminal leave, he does not earn any leave credits as he is already out of
the service. He merely enjoys the benefits derived during the time of his employment.
Consequently, he is no longer entitled to the benefits or salary increases that may be granted
thereafter.

g. Special Privileges This type of leave is non-cumulative and non-convertible to cash.

If
one decides to avail of the privilege, he has to file out the application for Special Privileges Form
(Annex 8). The following are types of said privileges:
1) Personal Milestones such as birthdays/weddings/wedding anniversary celebrations and other
similar milestones, including death anniversaries.
2) Parental Obligations such as attendance in school programs, PTA meetings, graduations,
first communion; medial needs, among others, where a child of a government employee is
involved.
3) Filial Obligations to cover the employee's moral obligation toward his parents and siblings for
their medical and social needs.
4) Domestic Emergencies such as sudden urgent repairs needed at home, sudden absence of a
yaya or maid, and the like.
5) Personal Transactions to cover the entire range of transactions an individual does with
government and private offices such as paying taxes, court appearances, arranging a
housing loan, etc.
6) Calamity, accident, hospitalization leave pertain to force majeure events that affect
life, limb, and property of an employee or his immediate family.
An employee can avail of the above privileges subject to the following conditions:

the

1) An employee can still avail of his birthday or wedding anniversary leave if such occasion falls
on either a Saturday, Sunday or Holiday, euther before or after the occasion.
2) An employee applying for special privilege leaves shall no longer be required to present
proof that he is entitled to avail of such leaves.
3) The 3-day limit for a given year should be strictly observed: an employee can avail
of
one special privilege leave for three (3) days or a combination of any of the leaves for a
maximum of three (3) days in a given year.
4) Immediate family (in calamity, accident, hospitalization leave) refers to spouse, childredn,
parents, unmarried brothers and sisters or any relative living under the same roof or
dependent upon the employee for support.
h. Study Leave The beneficiary of study leave is selected on the basis of the following
qualification requirements:
1) The official/employee must have graduated with a bachelor's degree which
consequently requires the passing of government bar and board licensure
examinations. For thesis writing or comprehensive examinations, he must have
completed all the academic requirements for a masteral dgree;
2) The profession or field of study to be pursued must be relevant to NEDA or to his
official duties and responsibilities;
3) he must be a permanent employee;
4) he must have rendered at least two (2) years of service with at least very satisfactory
performance for the last two (2) rating periods immediately preceeding
the
application;
5) He must have no pending administrative and criminal charges;
6) He must not have any current foreign or local scholarship grant; and
7) He must have fulfilled the service obligation of any previous scholarships and training
contract.
The service obligation for the availment of such leave is as follows:
Period

Service Obligation

One (1) month to three (3) months

Two (2) years

More than three (3) months to

six (6) months

Three (3) years

In case he fails to render in full the service obligation referred to in the contract on
account of voluntary resignation, optional retirement, separation from the service through his own
fault, or other causes within his control, he shall refund the gross salary, allowances and other
benefits received while on study leave based on the following
formula:
R

(SOR

- SOS)
SOR

TCR

where:
R
TCR

=
=

reund
Total Compensation Received (Gross salary, allowances
other benefits received while on

SOS
SOR

=
=

Service Obligation Served

Service Obligation Required

and
study leave)

In case of failure to pursue his studies or take the bar/board examination for which he was
granted the study leave, he should inform his head, through the Administrative Staff.
i.

Sabbatical Leave Pursuant to CESB Circular No. 11,s. 1993, an official intending to go on
sabbatical leave should submit his application to a screening committee six months before the
proposed leave, accompanied by two copies of the officials sabbatical leave plan,
detailing the purpose and nature of the sabbatical leave, the expected outputs, the action plan
of implementation including, time frame, duration and post sabbatical activities like information
sharing for project replicability. The plan must also identify the organization or institution with
whose projects or activities the official intends to spend his sabbatical leave. An acceptance by
the organization or institution of the official's participation in its project through his sabbatical
shall
accompany the application.
After the committee shall have evaluated and processed the leave application within
a month, it informs thereafter the concerned officials on whether his application is endorsed to
the CESB for approval, deferment or disapproval.
In case of disapproval or deferment of the leave, he is informed of the reasons in writing and
he can make an appeal to the Board. The Board acts on the application 30 days from receipt
of the endorsement made by NEDA.

3. Action on Application for Leave

Application for leave, including terminal leave, must be acted upon by the Director-General or his
duly authorized representative within five (5) working days after receipt of the application, otherwise, it
shall be deemed approved.
a. Leave With Pay - When a vacation leave or sick leave applied for does not exceed the earned
leave credits, it shall be with pay. When an employee had already exhausted his sick leave
credits, he can use his vacation leave credits but not vice versa. Payment shall
be
based
on the last salary received. Since leave with pay is considered part of the actual service,
applicants shall likewise earn leave credits while on leave with pay. An employee also earns
leave credits even if he is on sick leave without pay.
b. Leave Without Pay - All absences in excess of the vacation or sick leave credits are leaves
without pay. An employee still on probation may already avail of whatever leave credits he
earned during said period. Accordingly, any leave of absence without
pay incurred during
the period of probation shall extend the completion thereof for the
same number of days of
such absences (Sec. 44 CSC MC No. 14, s. 1999). Any vacation leave of absence without pay
is considered a break-in service, except for sick leave without pay.
No absences without pay, whether due to personal reasons or on account of illness is
allowed to be charged to the vacation or sick leave subsequently earned, except only that
allowable during the first six months of his service. Vacation leave without pay cannot be
granted unless the employee exhausts all his
vacation leave credits, except in the case of

secondment. However, he may be granted a sick leave without pay if he has exhausted both his
vacation and sick leave credits.
Leave without pay not exceeding one year may be granted in addition to the
vacation or
sick leave earned and an office clearance is required if it is more than one (1) month. However,
if for any reason the employee fails to return to duty at the expiration of his leave, he shall be
considered automatically separated from the service, provided, he was notified in writing before
its expiration with a warning that if he fails to report for duty on the designated date, he will be
dropped from the service.
When he has already exhausted his sick leave credits, he can use his vacation
leave credits but not vice versa. If he goes on vacation leave, he is considered on leave without
pay if he had exhausted his vacation leave credits even if he still has sick leave credits.
When he has a pending formal administrative charge, he cannot avail of vacation
leave with pay during the pendency of the case. As such, he shall be on leave without pay.
c.

Leave of Absence without pay on a day immediately preceeding or succeeding Saturday,

Sunday or holiday When an employee, regardless of whether he has leave
credits
or
not is absent on a day immediately preceeding or succeeding a Saturday, Sunday or Holiday
whether such absence is continuous or not, he shall not be considered absent on said Saturdays,
Sundays and holidays and shall not be deducted leave credits. He shall neither receive salary
for those days. (Sec. 33 MC No. 14, s. 1999)

d. Absence on a regular day for which suspension of work is announced Where an official
or an employee fails to report for work on a regular day for which suspension of work is declared
after the start of the regular working hours, he shall not be considered
absent
for
the
whole day. Instead, he shall only be deducted leave credits or the amount corresponding to the
time when official working hours start up to the time the suspension of work is announced. (Sec.
32 MC 14, 1999). However, when he fails to render the required service on a regular day for
which suspension of work is declared after the start of regular working hours, he shall be
considered absent on that day (CSC MC No. 41, s. 1998).
e. Absence Without Approved Leave An employee who is absent without approved leave is
not entitled to receive his salary corresponding to the period of his unathorized leave of absence.
Effectively, his absence shall no longer be deducted from his accumulated leave credits, if any.
If he is continuously absent without approved leave for at least thirty (30) calendar days, he shall
be considered on AWOL and shall be
separated from the service or dropped from the rolls
without prior notice. He shall, however, be informed, at his address appearing in his 201 files of
his separation from the service, not later than five (5) days from its effectivity. If the number of
unathorized absences incurred is less than thirty (30) calenday days, a written Return-to-Work
Order shall be served to him at his last known address on record. Failure on his part to report
for work within the period specified in the order shall be a valid ground to drop him from the
rolls.
4.

Computation of Leave Credits

Computation of vacation and sick leave is made on the basis of one day vacation leave and
one
day sick leave for every 24 days of actual service. Actual service refers to the period of continuous
service since he was appointed, including the period covered by any previous vacation leave with pay
and sick leave with or without pay. A fraction of one-fourth or more but less than three fourths shall be
considered as one-half day and a fraction of three-fourths shall be counted as one full day for purposes of
granting leave of absence.

However, an employee who has reached the compulsory retrirement age of 65 but whose service
has been extended by the CSC for another six (6) months no longer earns leave credits.
Tardiness and undertimes are deducted from vacation leave credits and not against sick leave
credits, unless the undertime is for health reasons supported by medical certificate and application for
leave. A report on the total accumulated leave credit balances (for vacation and sick leave) is issued by
the Administrative Staff to individual employee once in every six months.
Employees observing flexible working hours who render less than the usual eight (8)
hours
of
work per day but complete the forty (40) hours of work in a week, is deducted from their leave credits only
the minimum number of hours required to be served for a day but which was not served. Any absence
incurred must be charged in proportion to the number of hours required for a day's work (CSC MC 41, s.
1998).
5.

Monetization of Leave Credits

Pursuant to joint CSC-DBM Memorandum Circular No. 31,s. 1991 as amended by Joint CSC-DBM
Circular No. 2-97, career and noncareer employees are allowed to monetize a maximum of 30 days
vacation leave credits provided said personnel has accumulated no less than 15 days vacation leave
credits, in which case he can monetize no more than 10 days. There should always remain at least five
days vacation leave credits after monetization. The following are the guidelines for monetization pursuant
to CSC MC 31, s. 1991:
a. It shall be made in the prescribed CSC Form No. 6, Application for Leave (Annex 9).
b. No inclusive dates are indicated in item 6 of the form. The number of days applied for
indicated instead.
c.

is

The application is approved by the Director-General or his authorized representative.

d. The monetization of leave credits is availed once a year.

e. An employee who availed of this privilege can still go on five days forced leave.
Payment of monetized leave credits is contigent upon availability of NEDA savings.
6. Transfer of Leave Credits
When a NEDA employee transfers to another government agency, he can choose either
the following modes relative to his unused vacation and/or sick leave credit:

of

a. have it commuted; or
b. have it transferred to the new agency.
The second option can be exercised as a matter of right only by an employee who does not have
gaps in his service. However, a gap of not more than one (1) month may be allowed provided same is
not due to his fault. The option to transfer accumulated leave credits can be exercised within one (1)
year only from the effectivity of the transfer, otherwise, he may claim the money value of such leave
credits from the officve where earned (CSC MC 41, s. 1998).
7.

Commutation of Leave

Commutation of leave is the payment of the corresponding money value of the vacation and/or sick
leave applied for commutation by an employee. It is allowed except when he is likely to be recalled to
duty during the period of the leave. If his vacation or sick leave has been paid in advance, he is not
permitted to return to duty without first refunding the money value of the unused portion of the leave paid
to avoid a situation wherein he is paid for the services he has not yet rendered.
If he resigns, retires or is separated from the service through no fault of his own, commutation of all
his leave credits without limitation and regardless of the period when he earned his leave credits is
allowed provided these are not covered by special law, otherwise these shall be forfeited. Computation is
treated separately so that the accumulated leave earned on or before June 16, 1960 shall be inclusive of
Saturdays, Sundays and holidays while those earned beginning June 17, 1960 shall be exclusive of
Saturdays, Sundays and holidays and is applicable only to those who are still in the service as of January
9, 1986.
He is not entitled to the money value of his leave benefits if he is separated for cause.
If he has commuted his leave credits following his separation from the service and he is
re-appointed in the government service before the expiration of the leave commuted, he is given two
options as follows:
a. Refund the money value of the unexpired portion of the leave commuted; or
b. May not refund the money value of the unexpired portion of the leave commuted, but insofar as
his leave credits is concerned, he shall start from zero balance.

D. Social Insurance Insurance

All NEDA officials/employees are compulsory covered by Government Service Insurance System
(GSIS) effective on the 15th day of the month they reported for work or on the 1st day of the following
month if they reported after the 15th day. The official/employee contributes, by Life and Retirement
premium payments, 9% of his/her monthly compensation (MC) not exceeding P12,0000 per month. In
excess thereof, the employee/official pays additional 2%. As government counterpart, the NEDA pays
12% of the official/employee's MC.
Every official/employee is required to submit to HRPMS the duly accomplished GSIS Information for
Membership Form (Annex 9) and a certified true copy of his/her appointment within 60 days from
assumption to duty.
As a member, the official/employee is entitled to the following benefits:
1. Compulsory Insurance Coverage
Life insurance coverage
provides various benefits such as maturity, death, accidental death,
waiver of premiums, burial, cash surrender value, dividends, and insurance loans.
a. Maturity Benefit. Upon maturity of the life insurance, the face amount less any indebtedness
shall be paid to the member. The face amount, however, automatically increases based on the
salary adjustment of the member. To claim the face amount, the
policy contract and service
record should be submitted 30 days before the maturity date.
b. Death Benefit. When a member dies prior to the maturity of his insurance and during its
continuance, the GSIS pays to the designated beneficiaries or the legal heirs, as the case may
be, the face amount less any indebtedness.

c.

Accidental Death Benefit (ADB). When the death of the member is accidental, the GSIS pays
the designated beneficiaries or the legal heirs, as the case may be, an additional amount
equivalent to the face amount of his compulsory insurance.

d. Waiver of Premiums. When the member is separated from the service due to permanent
total disability, as determined by the GSIS, the premiums that may become due and payable
during the period of disability shall be deemed waived and considered
paid.
e. Cash Surrender Value. After the insurance shall have been in force for one year, a member
separated from the service prior to the maturity of the insurance may be paid the Cash Value
less any indebtedness thereon unless the terms of separation provide otherwise. If dismissed,
the member will only receive half of the value.
f.

Dividends. An annual dividend may be granted to all members of the GSIS whose
life
insurance
is in force for at least one year in accordance with a dividend allocation
formula to be determined by the GSIS.

g. Insurance Loans. Upon application, a member who has been insured for at least one year
may be granted an insurance loan in an amount not exceeding 50 percent of the cash
value
of the insurance at the time of application.
2. Loan Privileges
Loans are the most widely enjoyed among the GSIS benefits. The maximum amount
may borrow depends upon the length of membership.

of loan one

a. Salary Loan
A salary loan is a loan one may avail from the GSIS with his salary as security. A
member-employee may avail of the loan using the GSIS Salary Loan Application Form (Annex
10) subject to the following conditions:
1) A member-employee whose regular policy has been in force for at least 20 months
may apply for a one month salary loan.
2) A member-employee whose regular policy has been in force for at least 40 months
may avail of a two month salary loan.
3) A member-employee whose regular policy has been in force for at least 60 months
may avail of a three month salary loan.
4) A member-employee whise regular policy has been in force for at least 120
months may avail of a five month salary loan.
5) A five-month salary loan may be granted to member-employee if he is a victim of
calamity like flood or typhoon.
All loans shall be paid through salary deduction. A one-month salary loan is payable in 12 equal
monthly installments, while a two and three months salary is payable in 24 equal monthly installments. A
five-month salary loan is likewise payable in 36 equal monthly installments.
The requirements for a salary loan application are:
1) For initial loan:

u
u
u
u
u

Duly accomplished salary loan application form

Service Record
Certified true copy of original appointment and latest salary adjustment, if any
Certificate of Leave Without Pay
Payslip

2) For renewal loans:

u
u
u
u
u
u
u

Renewal of loan must be on or after the anniversary date of the previous loan granted
Duly accomplished salary loan application form
Service Record
Certified true copy of latest salary adjustment
Certificate of Monthly Loan Amortization
Payslip
Certificate of Leave Without Pay

b. Policy Loan
A policy loan is a loan which a member may avail of on the sole security of his policy.
It may be granted upon proper application when the policy has accumulated a cash value, usually,
at least one year after it has been in force using the GSIS Policy Loan Application (Annex 11).
The amount of loan is equivalent to 50 percent of the accumulated cash value.
All members with policies in force for at least a year may apply for a policy loan. The
requirements for a policy loan are:
1)
2)
3)
4)

Duly accomplished policy loan application form

Certificate of Leave Without Pay
Certificate of Monthly Loan Amortization
Payslip

A policy loan may be renewed on or after the anniversary date of the previous loan.
It is repaid through salary deduction or direct to the System in amounts not lower than
P10.00. An unpaid policy loan may be deducted upon the maturity of the policy. However,
inasmuch as interest is compounded monthly, it is advisable to pay the loan by monthly
installment.
c.

Housing Loan
A NEDA employee may apply for a low-cost housing loan from the GSIS thru the
National Home Mortgage and Finance Corporation (NHMFC).

3. Mortgage/Sales Redemption Insurance

This is a life insurance contract drawn to cover the life of the Mortgagor to assure payment of his
principal loan or indebtedness in favor of the system.
4. Optional Life Insurance
In addition solely shoulders the payment of premiums. He can pay either directly
to GSIS or
through salary deduction. As in the regular policy, one can apply for policy loan which is equivalent to 90
percent of the accumulated cash value.

E. Philippine Health Insurance

As a government employee, the NEDA official/employee is automatically covered by this program.

The member and his/her legal dependents can avail of hospitalization, surgical and medical benefits.
Legal dependents include one's:
u
u
u
u

Legitimate spouse who is not a member;

Unmarried and unemployed children, including legitimate, acknowledged, legally adopted and
step-children below 21 years old;
Children 21 years old and above with disability acquired before the age of 21 which
considered then totally dependent on the members for support; and
Parents who are 60 years old and above not otherwise an enrolled member and whose
income per month is not more than P1,000.00.

For CY 2000, an employee pays a monthly contribution of P62.50 while the NEDA pays an equal
amount as its counterpart. For CY 2001, the monthly premium will be P93.75.
1. Pre-Requisites for Entitlement of Benefits
a. Payment of at least three monthly contributions within the last 12 months prior to the first day of
confinement.
b. Confinement in an accredited health care institution due to illness or injury requiring
hospitalization or when undergoing surgical procedure within the operating room complex of the
hospital as an out-patient, or when receiving chemotherapy, radiotherapy, and hemodialysis
similarly on an out-patient basis.
c.

The 45-day allowance for room and board for the given year must not have been consumed.

A member is entitled to compensable confinement not exceeding 45 days in a given year and the
legal dependents are provided with another set of 45 days to be shared among themselves within
the year.
Any unused benefit for the given year is not carried over to the succeeding year. In other words, it
is not cumulative.
2. Benefits Covered by the National Health Insurance Program
The PHI covers portion of payments for Room and Board, Medical Expenses and Professional Fees.
The following are the amount covered per confinement depending on the Hospital Category:
Type of Benefits
Allowance for Room and Board
Allowance for Drugs and Medicines
For Ordinary Cases
For Intensive Cases
6,575
Allowance for X-ray/Laboratory Exam/others
For Ordinary Cases
For Intensive Cases
For Catastrophic Cases

Primary

Secondary

P 120

P 220

1,165
1,595
2,430
3,280
For Catastrophic Cases
11,885
305
590

760
1,680
3,405

Tertiary
P 345
2,670
7,660

1,625
3,405
9,810

Surgeon's Fee
Medical/Dental Practitioner's Fee
For Ordinary Cases
General Practitioner
Specialist
Type of Benefits

For Intensive/Catastrophic Cases

General Practitioner
Specialist
Anesthesiologist
Operating Room Fee
Relative Unit Value at <= 5
Relative Unit Value at 5.1 to 10
Relative Unit Value at > 10
Allowance for Sterilization Process
Vasectormy
Tubal Ligation

15,930

15,930

15,930

105/day
150/day
Primary

not toexceed
540/conf.
not to exceed
810/conf.
Secondary
Tertiary

105/day
150/day

not to exceed
not to exceed

810/conf.
1,350/conf.

30% of Surgeon's allowable fee not to

exceed P 4,785
385

670
1,140
2,160

1,060
1,350
3,490

900
1,125

900
1,125

900
1,125

As PHI benefits are not cumulative, one forfeits them if not utilized within a calendar year.
Cosmetic surgery or treatment, optometric services, psychiatric illness, purely diagnostic services
and normal obstetrical services are not covered by PHI.
1. Primary Hospital - Usually a small hospital which has the capacity to perform routine
laboratory examinations and minor surgery only.
2. Secondary Hospital - A hospital which has the capability to perform general surgery
like most district hospitals of the Department of Health.
3. Tertiary Hospital - Usually big medical centers such as St. Luke's, UDMC, UST, PGH,
etc. which have sophisticated equipment with
the
four
major
specialty services including their sub
specialties.
3.

Availment of PHI Benefit

A NEDA employee may avail of the PHI benefit by filing a duly accomplished PHI Form (Annex 12);
presentation of PHI Identification card or any proof of identification and contribution in its absence. These
will be filed within sixty (60) calendar days from date of discharge of the patient. For more information,
visit Philhealth website at www.Philhealth.gov.ph.

F. Other Personnel Benefits

Subject to availability of funds, the NEDA shall institutionalize the following programs:
a. Health Programs for all permanent employees to include Hospitalization Insurance Premiums,
Annual mental, medical and physical examination;
b. Potable drinking water; and

c.

Hazards/Accident/Risk Insurance Premiums

A. Retirement Benefits
These are benefits given to those who leave the government service because of age or
after having served the required number of years in recognition of their service in the government.
1. Retirement Laws
NEDA employees who are in service before June 1, 1977 and who have not
received
any
separation or retirement benefits have the option to retire under Republic Act Nos. 660, 1616 or 8291.
The following is a brief description of said existing retirement laws:
a. RA 660 (6/16/51) - This provides retirement at age 52-64 with 16-35 years service or what is
labeled as magic "87", i.e. the sum of the age and the length of service
must be 87. The
annuity/pension benefit under this law may either be of the following:
1) Automatic Annuity pension is payable monthly, guaranteed for five years from date of
retirement. After the five-year period, payment of the monthly annuity
benefit
will
automatically stop in case of death of the retiree;
2) Joint-Life Annuity Pension or monthly pension benefit is also guaranteed for five years. In
case of death of retiree or joint life beneficiary after the five-year period, the annuity or
pension is reduced to one-half and paid to the survivor for life. Only the legitimate spouse
can be a joint-life beneficiary;
3) Straight-Life Annuity payable monthly, only as the retiree lives; payment stops immediately
upon death;
4) Five-year Lump Sum. Available to those who are at least 63 years of age or over on
the
date of retirement. After five years, if still living, the retiree will be paid monthly annuity for life;
and
5) Initial Three-year Lump Sum. Available to those who are at least 60 years but less than 63
years of age on the date of retirement. The subsequent two-year lump sum shall be paid to
the retiree on his 63rd birthday. If the retiree is still living after the five-year period, he will
be paid the monthly annuity for life.
b. RA 1616 (5/31/57) - This provides for retirement after 20 years of service, regardless of age, the
last three years of which must be continuous. Benefits are:
1) Gratuity benefits computed as follows: For the first 20 years, one month salary for each year
of service; for over 20 years up to 30 years, one and-a-half months salary; for over 30 years,
two months salary.
2) Refund of personal contribution with interest and the corresponding
government
contributions without interest. This is subject to the following: his last three years
of
service are continuous, leave without pay does not exceed one year; and must
be
in the government service before June 1, 1977.
c.

RA 8291 (Amended PD 1146) - This provides for retirement at age 60 after 15 years of service
and expanded its coverage and benefits to include nonpermanent employees of the

government.
benefits.

It

further provides

for

unemployment

benefits and

involuntary separation

Under this law, the retiree has two options:

1) Five-year Lump Sum (60 x Basic Monthly Pension) plus the basic monthly pension for life
starting at the end of the 5-Year guaranteed period; or
2) The Cash Payment (18 x Basic Monthly Pension) plus the basic monthly pension
for life starting immediately upon retirement.
B. Benefits Derived From Separation
The procedures to be observed in claiming retirement/separation benefits are presented in Chapter
11 on Separation.
a. Gratuity or Annuity
These benefits are already discussed under applicable retirement laws above.
b. Separation Benefit
If a member resigns or is separated from the service, he will be entitled to separation benefit
as follows:
A member who has rendered at least three years but less than 15 years of service is eligible for
separation benefit in the form of a cash payment equivalent to 100 percent of the Average Monthly
Compensation for every year of service payable upon reaching age 60 or upon separation, whichever
comes later, if he is not receiving a monthly pension benefit from permanent total disability.

C. Unemployment Benefit
If a NEDA employee is separated from the service as a result of the abolition of his office or position
usually resulting from reorganization and who has paid the 12 monthly integrated contributions stipulated
in R.A. 8291, he shall be entitled to unemployment benefit. This shall be paid in accordance with the
following schedule.
Contributions Made
1 year but less than 3 years
3 or more years but less than 6 years
6 or more years but less than 9 years
9 or more years but less than 11 years
11 or more years but less than 15 years

Benefit Duration
2 months
3 months
4 months
5 months
6 months

All accumulated unemployment benefits paid to the employee during his entire membership shall be
deducted from voluntary separation benefit.

D. Survivorship Benefit
When a member or pensioner dies, the following are the eligibility requirements and the
corresponding survivorship benefits:

1. If at the time of his death a member was in the service and had rendered at least three years of
service;
2. If at the time of his death the member was in the service with less than three years of service or
was separated from the service with at least three years of service and has paid 36 monthly
contributions within the five-year period immediately preceding his death; or has paid a total of at
least 180 monthly contributions prior to his death;
a. His primary beneficiaries shall receive the survivorship pension; or
b. In the absence or primary beneficiaries, the secondary beneficiaries shall be entitled to the
cash payment; or
c.

In the absence of and secondary beneficiaries the legal heirs shall be entitled to the cash
payment.

3. Upon the death of a retiree-pensioner or a member receiving the monthly income benefit for
permanent total disability:
a. His primary beneficiaries shall receive the survivorship pension; or
b. In the case of a pensioner who dies within the period covered by the lump sum, the
survivorship pension shall be paid only after the expiration of the said period.
The survivorship benefits payable to the beneficiaries shall be either or both of the following:
1. The survivorship pension which consists of:
a. the basic survivorship pension which is 50 percent of the basic monthly pension; and
b. the dependent children's pension not exceeding 50 percent of the basic monthly pension;
and/or
2. A cash payment equivalent to 100 percent of his average monthly compensation for each year of
service the deceased member has paid contributions but not less than P12,000.
The survivorship pension shall be paid as follows:
a. when the dependent spouse is the only survivor, he shall receive the basic survivorship
pension for life or until he remarries;
b. when only dependent children are the survivors, they shall be entitled to the basic
survivorship pension for as long as they are qualified, plus the dependent children's pension
equivalent to 10 percent of the basic monthly pension for every dependent child not
exceeding five, counted from the youngest and without substitution;
c. when the survivors are the dependent spouse and the dependent children, the dependent
spouse shall receive the basic survivorship pension for life or until he remarries, and the
dependent children shall receive the dependent children's pension.
One's application for retirement may be filed with the GSIS, through the PAIS, 60 days before the
date of retirement so that payment may be received on its due date. This means that the supporting
documents should be secured 3-4 months before the retirement.

E. Disability Retirement Benefit

It is a monthly pension as granted under RA 660 and PD 1146, or gratuity benefit under RA 1616
and payable by the last employer in lump-sum, to him or through his guardian if under guardianship upon
separation from service of said member by reason of sickness or injury that renders him incapacitated to
engage in any gainful occupation. The degree of disability is classified into Permanent Total; Permanent
Partial; and Temporary Total.
1. Permanent Total Disability
The following disabilities are considered permanent
q
q
q
q
q

Complete loss of sight in both eyes;

Loss of two limbs at or above the ankle or wrist;
Permanent complete paralysis of two limbs;
Brain injury resulting in incurable imbecility or insanity; and
Other cases as may be determined by the GSIS.

Other Features:
q

A member who becomes permanently and totally disabled when he is in the service and has paid
at least 180 monthly contributions shall be paid the permanent total disability benefit in the form of
a monthly income benefit for life equivalent to the basic monthly pension plus a cash payment
equivalent to 18 times his basic monthly pension effective on the date of disability.

A member who becomes permanently and totally disabled is eligible for permanent total disability
benefits in the form of a monthly income benefit for life equivalent to the basic monthly pension
when:

He/she is in the service at the time of disability; or

He/she is separated from the service and has paid 36 monthly contributions within the last
five years immediately preceding the disability or has paid a total of at least 180 monthly
contributions.

A member who becomes permanently and totally disabled when he is separated from the service
with at least three years of service but has not paid 36 monthly contributions within the last five
years immediately preceding the disability is eligible for permanent total disability benefits in the
form of a cash payment equivalent to 100 percent of the average monthly compensation (AMC)
for every year of service he paid contributions but not less than P12,000.00.

2. Permanent Partial Disability

RA 8291 Amending PD 1146. A member who becomes permanently and partially disabled is
eligible for permanent partial disability benefits in the form of a cash payment equivalent to the basic
monthly pension times the number of months specified in the schedule of disabilities or Table of Loss
Percentage when:
q

He/she is in the service at the time of disability; or

q He/she is separated from the service and has paid monthly contributions within the last five (5)
years immediately preceding the disability or has paid a total of at least 180 monthly contributions.

3. Temporary Total Disability

RA 8291 Amending PD 1146. A member who suffers temporary total disability for reasons not due
to grave misconduct, notorious negligence, habitual intoxication, or willful intention to kill himself or
another may be entitled to benefits if:
q

He/she is in the service at the time of his disability and has exhausted his/her sick leave credits;
or

If separated, he/she has rendered at least three years of service and has paid at least six
monthly contributions in the twelve-month period immediately preceding his disability.

The temporary total disability benefit is in the form of a daily benefit equivalent to 75 percent of his
current daily compensation (= monthly compensation/22) for the duration of the disability starting on the
fourth day of disability but not to exceed 120 days. For more extensive cases, duration may be extended
up to a maximum of 240 days. Minimum benefit is P70.00 per day while the maximum is P340.00 per
day.
F. EMPLOYEES COMPENSATION BENEFIT
One is insured under the State Insurance Fund for service-connected sickness, injury, or disability.
This is known as Employees Compensation Program. The NEDA pays the premium equivalent to one
percent of the monthly gross salary of an employee (permanent, temporary, substitute, contractual). The
personnel do not contribute any amount. To be entitled to the Employees Compensation Program
benefits, the injury, sickness or disability has to be contracted in line of duty, i.e., the injury has been
sustained during working hours, at the place of work, and the employee has been performing his/her
official functions.
The compensation is adjudicated by the Employees' Compensation Commission (ECC) through the
GSIS. This may include payment for loss of income, hospital, medical and laboratory examination, and
other special examinations. The rates for these are fixed by the ECC from time to time.
On the other hand, sickness and resulting disability or death may be compensable if sickness has
been the result of an occupational disease or contracting the disease has been increased by the working
conditions.
ECC benefits include:
1. Cash Income
This includes:
a. Temporary Total Disability (TTD) - a disability which prevents the employee from performing
his work for a continuous period not exceeding 120 days, except when such disability still
required medical attendance beyond 120 days but not to exceed 240 days. Daily Income Benefit
(DIB) of not less than P4.00 nor more than P25,00 is payable to the employee.
b. Permanent Partial Disability (PPD) - a disability that lasts more than the period prescribed for
the TTD and prevents the employee from pursuing his usual work; complete loss of sight of both
eyes; loss of two limbs, brains injury and such cases as may be determined by the GSIS and
approved by the EEC. The Monthly Income Benefit (MIB), payable to the employee for life and
guaranteed for five years, shall not be less than P250.00 nor more than P3,240.00 plus 10
percent of it, for each of the employee's dependent child, but not exceeding five.

2. Death Benefit - under this, the primary beneficiary of the employee shall receive an MIB
similar as that granted under PPD, for life and/or as long as qualified.
If the employee is a PPD pensioner, the primary beneficiaries shall receive the MIB upon
his
death, excluding the dependents' pension, of the remaining balance of the five year guaranteed
period.
3. Funeral Benefits - the beneficiary will be granted P3,000 upon the employee's death in addition to
the burial benefits granted by the GSIS.
4. Medical and/or Related Service - during the period of the disability, the employee may be given
devices such as crutches.
5. Rehabilitation Services - should the employee be permanently disabled, he can avail of
rehabilitation services consisting of medical, surgical or hospital treatment.

G. PAG-IBIG Benefit
The Home Development Mutual Fund (HMDF) was set-up for housing purposes.
The NEDA pays a counterpart, i.e., two percent of the monthly salary of the employees. Besides
granting housing loan for the construction or improvement of a house, other Pag-IBIG benefits include:
1. Total Accumulated Value (TAV) - this includes employee and employer's contributions which is
granted to Pag-IBIG member upon the termination of his membership such as when he retires, go
abroad permanently, or upon maturity of the membership, TAV includes.
2. Death Dividends - this is granted to one's beneficiaries upon his death in addition to the total
accumulated saving plus earned dividends. Moreover, a P6,000.00 burial expresses are also paid to
the beneficiary.
3. Fixed Dividends - given to a Pag-IBIG member who has no outstanding loan.
4. Loans - other than housing loan, the HDMF also provides multipurpose loan.
Multipurpose Loan Program (MPLP) - can be used by the member in educational, medical,
livelihood, minor home improvement, purchase of appliance and furniture and other important needs.
A member must have made at least 24 monthly contributions and must be a contributing member
upon loan application in order to be eligible for the MPLP.
Requirements for the MPLP:
q
q
q

Two copies of multipurpose loan application form

Two copies of certificate of remittance duly signed by authorized signatories
Two copies of loan amortization (if with previous MPL)

The PAIS, in coordination with the FS, assists personnel in the application forms and supporting
papers.

H. Travels
1. Local and Foreign Official Travels
A person's employment with NEDA provides him with the opportunity to see not only the entire
country but also the world. These are on the following occasions: (1) attendance to out-of-town
assignment; (2) cross posting from CO to NRO or vice-versa; (3) detail to another region;
(4) attendance to seminars, conferences or workshops; and (5) scholarship/fellowship/training
a) Documentary Requirements
For local/foreign travels, the employee needs to prepare/obtain Travel Authority (Local
Travel Order or Foreign Travel Order) and his Itinerary of Travel. This shall be approved as
follows:
1) For Official Local Travel
l
l
l

If the duration is seven days or less

- Head of Office
If the duration is more than seven days
- Director-General
If the duration is more than one calendar month - President of the Phil. or official
duly
authorized by him
2) For Official Foreign Travel
a) Official Mission/non-study trips (under EO 248, dated 29 May 1995 as amended
by EO 248-A dated 14 August 1995)
l

b)

For Assistant Director-General

up to Director-General
-

The Pres. of the Phil.

l
For Directors and Below
- < 1 month
- > 1 month

For study (under EO 367, dated 21 August 1989)-

Head of Office
President of the Phil.

CDISC Chairman

A delegation comprising of at least two (2) individuals traveling abroad shall be subject to the
approval/clearance from the Office of the President. They will therefore have to submit a request of at
least ten (10) working days prior to their scheduled departure, per Presidential Memorandum dated 27
July 1998.
The Administrative Staff, through the HRPMS, assists him in preparing his travel documents for
official travel like issuance of Foreign Travel Order, Indorsement to the DFA, securing Travel Tax
Exemption, passport and visa, upon submission of a written request for the purpose. However, he will
have to submit the following DFA requirements:
1.
2.
3.
4.
5.
6.

NSO authenticated birth certificate;

NSO authenticated marriage contract (if married);
Updated service record;
Certificate of No Pending Administrative case;
Current passport, if available (or old but not cancelled or mutilated);
Duly accomplished passport application form with three (3) pcs. of 1.77 x 1.37 pictures with
plain white background. The applicant must wear decent suit with collar and no eyeglasses.

7.
8.
9.
10.
11.

Malacaang clearance/approval, if applicable;

Invitation and Training/Scholarship Acceptance;
Note Verbale;
Scholarship Affairs Secretariat (SAS) endorsement/endorsement by the head of office; and
Scholarship Service Contract, in case of foreign training/scholarship.

Upon receipt of the Director-General's approval of an official/employee's attendance to a conference

or other non-study trips or the scholarship/training acceptance from the donor government/institution, the
HRPMS will prepare the foreign travel order and the indorsement to the Department of Foreign Affairs.
Upon his completion and submission of the aforecited documents, the HRPMS will liaise with DFA,
Philippine Tourism Authority, and the corresponding Embassy for his passport, Travel Tax Exemption
Certificate and the necessary visa. For first timers, personal appearance is required. However, he has to
personally pick-up his airline ticket.
b) Entitlements
1) For Local Travels
A NEDAn is entitled to per diem pursuant to EO 248, broken down as follows:
a)

Travel allowance which covers the cost of meals,

inland transportation and other incidental expenses

200.00
b)
P

Hotel Room/Lodging Expenses

100.00
Total

300.00

Claims for reimbursement of actual travel expenses in excess of Three Hundred Pesos (P300.00)
may be allowed upon certification by the head of the agency concerned as absolutely necessary in the
performance of the assignment, provided that the corresponding bills/receipts are presented; and
provided further that no affidavit of loss of receipt shall be accepted.
Moreover, these shall be subject to the following conditions:
a. When leaving the permanent official station before 12:00 noon, he shall be allowed the full
amount of the travel expenses.
b. When leaving the permanent official station after 12:00 noon, he shall be allowed only one-half
of the amount of the travel allowance, and full amount for Hotel Room Lodging Rate.
c.

When returning to the permanent official station before 12:00 noon, he shall be allowed one-half
of the amount of the travel allowance only.

d. When returning to the permanent official station after 12:00 noon, he

amount of the travel allowance only.

shall be allowed the full

No portion of the actual cost of travel expenses allowed to the DG, DDGs and ADGs and other
NEDA officials shall cover the expenses of any of the staff accompanying said officials in the travel,
otherwise, such staff shall not be allowed any of the allowances prescribed under E.O. 248.
The Director-General or his delegated deputies determines the mode and class of transportation
and the kind of hotel/lodging/pension houses to be taken, which in all cases shall be the most
advantageous to the government from the standpoint of economy and efficiency. Only the ordinary public

conveyance or customary modes of transportation

justified by prevailing circumstances.

shall be used, except in meritorious cases and

NEDAns whose permanent official station is within Metropolitan Manila Area, are not allowed the
travel expenses herein authorized for their travel/assignment to places within the Metropolitan Manila
Area. The same restriction also apply to those NEDAns in the Regional Offices when assigned to
places within the city or municipality wherein their permanent official station is located.
Claims for payment of travel expenses for official travel/assignment to places within the 50
kilometers radius from the last city or municipality covered by the Metropolitan Manila Area in the case of
those whose permanent official station is in the Metropolitan Manila Area, or from the city or municipality
wherein their permanent official station is located, in the case of those outside the Metropolitan Manila
Area, is allowed only upon presentation of proof, duly supported by bills or invoices with official receipts
of expenses incurred, that they stayed in the place of their assignment for the whole duration of their
official travel. If they commute daily from the place of their assignment to the place of their residence
or permanent official station, they shall be allowed only the reimbursement of actual fare at the
prevailing rates of the authorized mode of transportation from the permanent official station to the
destination or place of work and back, and a reasonable cost of actual meal allowance, but in no case
shall exceed the Two Hundred Pesos (P200.00) travel allowance. However, if the reimbursement of
expenses is equal or less than Seventy-Five Pesos (P75.00), he need not submit a reimbursement
receipt.
2) For Foreign Travels

following
17 Sept. 1998.

An employee who is on official foreign travel is entitled to receive the

per EO 248 and NEDA OC 11-97 dtd. 11 Sept. 1997 and OC 12-98 dated

a) Predeparture allowance to include miscellaneous and incidental expenses such as taxi,

passport, visa fees, photos, immunization, porterage, airport and terminal fees and others.
This need not be supported with receipts.
b) Transportation - In case officials and employees authorized to travel abroad are not
provided with transportation by the host country or sponsoring organization/agency, he
shall be allowed transportation which shall be the economy class unless otherwise
approved by the President. This must be supported by used plane ticket: original if paid
by NEDA and xerox copy if paid by sponsor other than NEDA.
3) Clothing allowance - This shall not be granted oftener than once in every 24 months. A
certification shall be submitted to the effect that no clothing allowance had been received
during the past 24 months, duly signed by the concerned NEDA employee and the
accountant, prior to his travel abroad.
4) Travel allowance - This is intended to cover subsistence, land transportation and other
incidental expenses but not intended to be divided into two units. It shall be granted only for
the duration of the official trip, including actual travel time, which shall be computed according
to the most direct air route, unless specified in the authority for the trip. Any additional time
extension caused by taking a diverse route shall not be on government time and expense.
5) Hotel Room Rate - includes lodging or hotel accommodations and allowed only when duly
supported by appropriate hotel room bills with official receipts.
6) Representation expenses - upon prior approval of the President, noncommutable
representation expenses, not exceeding $1,000.00, duly supported by bills or receipts, as

shall be absolutely necessary to enable Philippine delegations to uphold the prestige of the
Republic of the Philippines to represent the country with dignity or distinction and to carry out
their functions and objectives more effectively.
No certification or affidavit of loss shall be considered or accepted for this purpose.
c.

Categories of Foreign Travel

It is important to know that Foreign Travel is of two (2) categories. The classification will define
or specify his travel entitlements. These are presented hereunder:
-----------------------------------------------------------------------------------------------------------Travel Expenses
Study
-----------------------------------------------------------------------------------------------------------Pre-Travel
P600.00
Clothing - Tropical
300.00**
Temperate
400.00***
-----------------------------------------------------------------------------------------------------------* Per diem (if none is provided by donor country)
-----------------------------------------------------------------------------------------------------------a. US, Canada, Japan, Guam,
US$250/mo
Argentina, Venezuela, Brazil
If less than one month
US$5/day
-----------------------------------------------------------------------------------------------------------b. European countries, Australia,
US$200/mo
New Zealand, Korea, Taiwan,
Okinawa, Mexico, Central &
South American countries
If less than one month
US$5/day
-----------------------------------------------------------------------------------------------------------c. African and Asian countries
US$175/mo
If less than one month
US$5/day
-----------------------------------------------------------------------------------------------------------Insurance
P50,000
-----------------------------------------------------------------------------------------------------------Representation Allowance
-----------------------------------------------------------------------------------------------------------Transport Category
Business class

Non-study
P1,500.00
400.00**
400.00***

US$300/day

US$300/day

US$300/day

P200,000
US$1000 (max)
Economy class

If, however, one is provided with per diem or allowance which is lower than what is prescribed
above, he shall be entitled to the difference only.
*

For nonstudy trips, the per diem is broken down to two components, a travel allowance of
US$100 and hotel room/lodging rate not exceeding US$200 per EO 248. However, per NEDA
OC 12-98 the travel allowance is reduced to US$75.00 per day. Claims for the latter is only
allowed if duly supported by appropriate hotel room bills with official receipts. In this case, no
certification or affidavit of loss of receipt can be accepted. Should his travel allowance and hotel
room/lodging rate exceeds the prescribe rate, such should be supported by certification by the
head of the agency concerned that said expense is absolutely necessaary in the performance of
an assignment and presentation of actual hotel room bills with official receipt.

**

To include summer and spring seasons

Duration
<= 1 month
> 1 month, <= 3 months
>= 3 months, < 6 months
> 6 months

Study

Non-study

0
200
300
300

0
200
300
400

*** To coincide with Autumn or Winter Season

Duration
Two weeks or less
> 2 weeks, < 1 month
> 1 month

Study
S 200

Non-study
S 200

300
400

300
400

Where the clothing allowance previously received is less than the clothing allowance for subsequent
trip, or when the clothing allowance granted by the donor is less than the clothing allowance indicated
above, the grantee shall be entitled to the difference. Thus, grantees who are already provided by donors
with the full amount of clothing allowance as indicated above, shall no longer be entitled to the said
allowance from GOP.
Invitation/acceptance from organizations/institutions with full disclosures of the entitlements provided
by the donor/sponsor shall be presented/submitted to enable the computation of differential allowance, if
any.
2. Nonofficial Foreign Travel
If one wishes to travel abroad to fulfill a personal commitment; one should first seek clearance from
the Director-General and/or Deputy Director-General concerned through his Staff/Regional Director. His
trip will be on his own time, either on sick leave or vacation leave depending on the purpose of his trip
and at his own expense. In this connection, he will have to submit the following:
1)
2)
3)
4)

A duly accomplished certificate of clearance;

Certificate of no objection relative to his travel signed by the concerned head of staff/office;
Approved application for Leave of Absence; and
Foreign Travel Authority/Authority to Travel Abroad

3. Submission of Report
Upon the return of an employee from foreign travel, he is requested to submit/perform the following:
1) For Study Trip
a. Within 60 days from the completion of his scholarship program, he shall turnover or submit to
NEDA all materials and academic work or copies thereof received and prepared in
connection with the scholarship. Such materials shall form part of the NEDA library.
b. Within 30 days upon return to duty, he shall deliver a lecture or share the highlights and other
vital information relative to the course attended with colleagues at the NEDA.
c.

Within 60 days upon return to duty, he shall submit a written report to the head of the office,
the CDISC, and his incumbent supervisor which describes a plan to apply relevant aspects
of the course/program on his job, including a discussion with them or the support he will need
for proper implementation thereof.

2) For Non-Study Trip

Within one month of his return to official station, he shall submit a report with his
recommendation, if any, on the conference or seminar attended, examination or investigation
conducted or mission undertaken to the Director-General. In case of participation in an
international conference or convention abroad in which the Philippines is represented by a
delegation, he, if assigned as head of delegation, shall submit the said report to the President of
the Republic of the Philippines through the Secretary of Foreign Affairs not later than one month
at the closing of the conference or convention.