76-25A Extra or Additional Compensation To Government Officials
76-25A Extra or Additional Compensation To Government Officials
76-25A Extra or Additional Compensation To Government Officials
SUBJECT : Restatement, with Amendments, of COA Circular No. 76-25, dated March 31,
1976, regarding service and/or incentive fees, remunerations, honoraria and all
other extra compensations paid to government officials and employees.
PURPOSE
This Circular is issued to restate with amendments COA Circular No. 76-25 dated March
31, 1976 setting a policy on the payment of extra or additional compensation to officials and
employees concerned, and to prescribe, a procedure for the accounting thereof. The Circular
also seeks to limit additional compensation where the law, presidential decree, executive order
or directive does not fix the amount of additional compensation for service-connected activities
being paid or compensated for.
SCOPE
The regulations prescribed in this Circular shall apply only to National and Local
Government Offices and are limited to payments of additional compensation the source of which
is derived from national and local funds as well as from private sources as authorized by law.
The provisions of this Circular shall not include (a) extra compensation which the law or
executive fiat has not only authorized but also specified as to amount, and (b) additional
compensation expressly agreed upon in existing contracts.
DEFINITIONS
5. Service fees paid by private companies for services rendered to them as provided
under Section 38 of the General Provisions of P.D. 733.
STATEMENT OF POLICIES
3. The total amount of extra or additional compensation shall be remitted by the paying
office to the collecting officer of the bureau or office of the recipient official or employee to be
deposited with the National Treasury or with the Provincial or City Treasurer as the case may be
in accordance with existing rules and regulations. However, in the case of extra compensation
paid by the mother agency to its own officials or employees, the same shall be paid directly to
the official or employee subject to the provisions of Item 4 below under this title.
4. The official or employee concerned shall be paid his extra compensation by his office
at the end of the month of collection or end of the period of undertaking, provided that in the
aggregate such extra compensation shall, in no case, exceed fifty percentum (50%) of his
annual salary and the purposes for which such extra compensation is paid have been
accomplished. Payments of allowances and the like on strictly reimbursement basis which
should be remitted as required under the next preceding item shall not, however, be subject to
the 50% limit as herein prescribed.
ACCOUNTING TREATMENT
4. The provisions of COA Circular No. 76-26 dated April 6, 1976 shall apply in the
processing of the payment of the additional compensation contemplated in this Circular.
REPEALING CLAUSE
All circulars, orders, memoranda and existing rules and regulations in conflict herewith
are hereby revoked or amended accordingly.
EFFECTIVITY
This Circular shall take effect on July 1, 1976. Thus, the honorarium or additional
compensation received from July 1, 1976 to December 31, 1976, shall not exceed the salary for
the same six-months period. However, from January 1, 1977 to December 31, 1977 and
succeeding years, the 50% limitation shall be computed on the basis of the regular annual
salary of the grantee. Strict compliance with this Circular by all concerned is hereby enjoined.