Finance Officers Course

2024
I. Introduction
 HOUSE RULES:

1. Cameras should always be “on”

2. All microphones should be in “mute” status
to avoid distractions and speaking in unison.

3. Raised hands and unmute when

called/recognized to ask or answer questions.

4. Comments/adding ideas and

information are very much welcome.
.

5. Use chat box when needed.

PAY AND ALLOWANCES
Learning Goal:

The lesson is intended to provide the participants with the

knowledge on the different functions of Pay and Allowances
Section, Disbursement Division, Finance Service, necessary in
the performance of the mandate of PNP Finance Service.
Objectives:

1. Learn the different functions of Pay and Allowance

Section;
2. Enumerate the different kinds of allowances;
3. To be familiarized with the different Process Flow;
4. To be able to compute salary overpayment.
References:
1. NAPOLCOM Resolution #2010-210;
2. NAPOLCOM RESO# 91-18;
3. PNP Memorandum Circular No. 2014-030;
4. PNP Memorandum Circular No. 2014-004;
5. PNP Memorandum Circular No. 2014-041;
References:
6.Memorandum from TADPRM dated February 4, 2014,
with subject “Guidelines in the Forfeiture and Withholding
of Salary”.
7. Various Fiscal Directives;
8. Amended MOA between Philippine National Police and
Landbank of the Philippines (LBP)
 Functions of the Pay and Allowances:
1. Prepares Voucher and Authority to Debit/Credit and
Memo for the Director for the schedule of Pay-out of
pay and allowances generated through Funding
Warrant;
2. Processes and prepares reports pertaining to the
inclusion of the PNP personnel in the ATM payroll
system;
3. Updates individual ATM payroll account to expedite the
payment of salaries and allowances of active PNP
personnel;
4. Prepares and issues Certificate of Last Payment (CLP)
for retirement claims purposes in order to expedite and

ensure the timely release of retirement benefits of

retiring PNP personnel;

5. Cancels Remittances and i

ssues Certificate of Cancellation;
6. Prepares Certificate of Compensation of active
personnel and Certificate of Compensation as required
by the Office of the Ombudsman;
7. Facilitates the signing of Certificate of Compliance by
the Director, Finance Service as required by the Office
of the Ombudsman relative to the implementation
of penalties imposed by that Office.
8. Prepares Certificate of Salary Overpayment
needed in securing DC clearance for retirement
purposes.
9. Computes Fine/Suspensions as required by the
PNP Retirement and Benefit Administration Service
(PRBS) to be deducted from the monthly pension of the
retired personnel;

10. Processes Backwages (of reinstated personnel)and

cancelled suspension;
11. Prepares Letter Request of Instruction (LRI) to the Land
Bank of the Philippines (LBP) for the following reasons:
a. Closure of ATM accounts due to attrition;
b. Withholding /”Tag and Hold” of ATM payroll accounts;
c. Rectification of ATM payroll accounts;
d. Reactivation of ATM payroll accounts;
e. Payment of salaries through reversion of amount due to
closure, dormant and erroneous ATM account
DEFINITION OF TERMS:
1.Basic Salary – refer to a fixed compensation paid
regularly for services or an amount of money that an
employee is paid monthly as specified in the PNP
payslip.
2.Regular Allowances- These are allowances given
regularly and are common to all PNP members in
addition to the basic salary (Ref: Section 71 of RA
6975).
DEFINITION OF TERMS:
3.Collateral Allowances – Those allowances given to
PNP uniformed personnel based on Napolcom
Resolution 91-18 which are subject to certain
conditions for entitlement.
4. Other Allowances and benefits - Those allowances
and benefits given to any PNP personnel which are
not included in the Napolcom Resolution 91-18.
DEFINITION OF TERMS:
5.Funding Warrant – A document showing the total
gross amount of salaries for the month that shall be
the basis for the issuance of Notice of Fund
Allotment and Notice of Cash Allocation to support
the funding and payment of salaries and allowances
for the month
6. Certificate of Last Payment- a certification issued
to PNP member by the Finance Service indicating
when he was last paid of his pay and allowances.
DEFINITION OF TERMS:
7. Automated Teller Machine (ATM) – the machine
provided by the LBP for PNP Personnel to make
financial Transaction without the aid of bank tellers.
8. PNP ATM Payroll Account – refers to a regular
non-interest bearing Current Account designated
solely for the operations of the PNP ATM Payroll
System specifically to allow fund transfer to
separate individual ATM accounts of PNP
personnel.
DEFINITION OF TERMS:
9. Inclusion – Addition of ATM account of newly
recruited PNP personnel in the PNP Payroll
Management System (PMS)
10. Letter Request of Instruction (LRI) – a letter from
the PNP addressed to the manager of any branch of
LBP signed by an authorized PNP officer of the
Finance Service
DEFINITION OF TERMS:

11. Letter of Closure (LC) – a letter from the PNP

addressed to the manager of any branch of LBP
signed by an authorized PNP officer of the Finance
Service and TDC directing the closure of an ATM
payroll account
12. STI – Statement of Transaction Inquiry
 PROCESS FLOWS/PROCEDURES:

• Pay and Allowances

• Inclusion of ATM
• Preparation and Issuance of Certificate of Last Payment
• Cancellation of Remittances
• Certificate of Compensation-any purpose
• Certificate of Compensation-OMB
• Certificate of Compliance
 PROCESS FLOWS/PROCEDURES:
• Preparation of Certificate of Salary Overpayment
• Computation of Fine/Suspension
• Closure of ATM Account
• Withholding /Tag and Hold of ATM Payroll accounts
• Reactivation of ATM Payroll Accounts
• Rectification of ATM Payroll Accounts
• Payment of Rejected Salaries
 PAIS, DPRM 1. Provide data from PAIS server

FIMD 2. Crossmatching, Generation of Funding warrant, ATM Payroll/registry and soft copy to LBP
(Breakdown of ATM Payroll Accounts)
FS (PAS) 3. Preparation and Processing of Disbursement Vouchers (DV) and Authority to
Debit/Credit (ATDC)
Mgmt Div, DC 4. Pre-Audit of Voucher

Budget Div, DC 5. Issuance of NCA

Acctg Div, DC 6. Journal Entry Voucher (JEV)

FS (CAS) 7. Issuance of LDDAP/ADA and Advice

C, Acctg Div, DC 8. Counter-Signature of LDDAP-ADA

TDC 9. Counter-Signature of LDDAP-ADA

FS (D, FS) 10. Signature of LDDAP/ADA and

Advice
LBP 11. Deposit of LDDAP-ADA and Advice and credit to PNP Active
Account
FS (PAS) 12. Submit Approved ATDC with copy of registry of PNP Pers w/ ATM
Payroll Accounts (in hard and soft copy)
LBP 13. Availability of Fund : 1-15 every 13 th of the month, 16-30 every
28th of the month
CLAIMANT 14. Credit to Individual ATM Payroll Account
 PAY AND ALLOWANCES OF PNP UNIFORMED PERSONNEL
Effective J anuary 1, 2019 Based on J oint Resolution

L O N G E V I T Y P A Y A L L O W A N C E S
RANK Sal Gr BASE PAY Subs
PERA/ADD'L HAZARD
1ST 2ND 3RD 4TH 5TH Allw Laun
Qrtr Allws CLOTHING ALLWS COMPENSATI PAY eff
10% 21% 33.1% 46.41% 50% eff Jan Allws
ON Jan '18
2015

PGEN 30 149,785.00 14,979.00 31,455.00 49,579.00 69,515.00 74,893.00 1,500.00 150/day 200.00 2,000.00 60.00 540.00
PLTGEN 29 125,574.00 12,557.00 26,371.00 41,565.00 58,279.00 62,787.00 1,300.00 150/day 200.00 2,000.00 60.00 540.00
PMGEN 28 102,896.00 10,290.00 21,608.00 34,059.00 47,754.00 51,448.00 1,200.00 150/day 200.00 2,000.00 60.00 540.00
PBGEN 27 91,058.00 9,106.00 19,122.00 30,140.00 42,260.00 45,529.00 1,050.00 150/day 200.00 2,000.00 60.00 540.00
PCOL 26 80,583.00 8,058.00 16,922.00 26,673.00 37,399.00 40,292.00 900.00 150/day 200.00 2,000.00 60.00 540.00
PLTCOL 25 71,313.00 7,131.00 14,976.00 23,605.00 33,096.00 35,657.00 800.00 150/day 200.00 2,000.00 60.00 540.00
PMAJ 24 62,555.00 6,256.00 13,137.00 20,706.00 29,032.00 31,278.00 700.00 150/day 200.00 2,000.00 60.00 540.00
PCPT 23 56,582.00 5,658.00 11,882.00 18,729.00 26,260.00 28,291.00 650.00 150/day 200.00 2,000.00 60.00 540.00
PLT 22 49,528.00 4,953.00 10,401.00 16,394.00 22,986.00 24,764.00 600.00 150/day 200.00 2,000.00 60.00 540.00
PEMS 19 38,366.00 3,837.00 8,057.00 12,699.00 17,806.00 19,183.00 500.00 150/day 200.00 2,000.00 30.00 540.00
PCMS 19 34,761.00 3,476.00 7,300.00 11,506.00 16,133.00 17,381.00 500.00 150/day 200.00 2,000.00 30.00 540.00
PSMS 17 34,079.00 3,408.00 7,157.00 11,280.00 15,816.00 17,040.00 500.00 150/day 200.00 2,000.00 30.00 540.00
PMSG 16 33,411.00 3,341.00 7,016.00 11,059.00 15,506.00 16,706.00 450.00 150/day 200.00 2,000.00 30.00 540.00
PSSg 14 32,114.00 3,211.00 6,744.00 10,630.00 14,904.00 16,057.00 450.00 150/day 200.00 2,000.00 30.00 540.00
PCpl 12 30,867.00 3,087.00 6,482.00 10,217.00 14,325.00 15,434.00 400.00 150/day 200.00 2,000.00 30.00 540.00
Pat 10 29,668.00 2,967.00 6,230.00 9,820.00 13,769.00 14,834.00 400.00 150/day 200.00 2,000.00 30.00 540.00
 Regular Allowances
Particulars Description Authority
Longevity Pay Given to all PNP uniformed personnel for Section 71 of RA 6975
(Uniformed personnel) every five (5) years of satisfactory, faithful
and efficient service.
Personnel Economic Relief Allowance (PERA). It is a subsidy granted to all .The current PERA is two thousand pesos
(PERA) government workers as a form of assistance (Php2,000.00) per month (Ref: Budget
(Uniformed and Non to help make ends meet in the face of Circular Nr 2009-3).
Uniformed personnel) economic crisis as well as higher prices. (Ref:
NAPOLCOM Resolution 91-18).Due to the
rising cost of living, Php1,500.00
additional compensation shall be given in
addition to Php500.00
Hazard Pay Allowance given to uniformed personnel as EO Nr 611 dtd July 2007
(Uniformed personnel) occupational hazard pay considering that the
law enforcement being a hazardous
occupation
Quarters Allowance Given to officers and non-officers who are NAPOLCOM RES NRs. 91-18 dtd Oct 21,
(Uniformed personnel) not provided with living quarters thru the 1991
auspices of the PNP where their families can
be accommodated
 Particulars Description Authority
Clothing Allowance Given to PNP uniformed personnel NAPOLCOM RES NR 91-18 dtd Oct
(Uniformed personnel) to cover the cost of maintaining 21, 1991
uniform that the PNP members P200.00 per month for both officers and
wear daily non-officers
Laundry Allowance An allowance intended to defray Ref: Office of the President
(Uniformed personnel) the laundry costs of the PNP Memorandum dated August 28,
uniformed personnel. 1997
Officer — P60.00 per month, paid
monthly
Non-Officer — P30.00 per month, paid
monthly
Subsistence Allowance It is an allowance given to all amounting to Php150.00 per day
(Uniformed personnel) uniformed PNP members to defray (Ref: Joint Resolution No. 2
the cost of their daily regular effective January 1, 2015).
meals
Gratuity It is granted to any awardee of the Office of the President
(Uniformed personnel) Medal of Valor. Memorandum dated Dec 22, 2016,
RA No. 9049 (Php75,000.00.per
month)
Provisional Allowance A monthly Provisional Allowance Removed CY 2018 converted to
given to Uniformed Personnel increase
EO Nr 201 dtd Feb 19, 2016
Officers Allowance Given to Police Commissioned Removed CY 2018 converted
Officer (PCO) to increase
 TABLE
TABLE OF
OF ALLOWANCES
ALLOWANCES

B. Collateral Allowances
Those which are given to any PNP
member subject to certain conditions for
entitlement.
 Collateral Allowances
Particulars Description Authority Rate
Combat Duty Pay (CDP) A special combat allowance in addition to base EO No. 3 dtd P3,000.00/mo
pay for qualified PNP Uniformed Personnel September 26, 2016
engaged or involved in actual Police DBM
Operations. Budget Circular No.
2016-6 dtd October 3,
2016
Combat Incentive Pay (CIP) refers to the P300 per day allowance in EO No. 3 dtd Shall not
addition to base pay for qualified PNP September 26, 2016 exceed
Uniformed Personnel who figure directly or DBM P3,000/mo
involve in actualcombat/police operations Budget Circular No.
against members of various insurgent terrorist 2016-6 dtd October 3,
and lawless elements subject to certain 2016
conditions
Incentive Pay Given to uniformed personnel assigned in the NAPOLCOM RES Nr P75/month
NCRPO/CAPCOM fice (5) Districts Command, field force 91-18 dtd Oct 21, 1991
companies and/or at NCRPO Hqs provided
they are not in detail or detached service status.
 Particulars Description Authority Rate
Incentive Pay Legal Service Given to PNP officers assigned in the PNP Legal NAPOLCOM Res P200/month
Service as Inspectorate Legal Officers (Lawyers). Nr 91-18 dtd Oct 21,
1991
Incentive Pay Medical & Given to all PNP officers of the medical, dental, NAPOLCOM Res P200/month
Dental veterinary and nurse corps who are on active duty Nr 91-18 dtd Oct 21,
assigned in any PNP 1991
hospitals,/dispensaries/clinics.
Specialist Pay This pay applies only to non-officers personnel of NAPOLCOM Res P450/qtr
the PNP who are not assigned in critical areas and Nr 91-18 dtd Oct 21,
have demonstrated efficiency and effectiveness 1991
through skills, aptitudes, training experience and
knowledge of specific police duties or specialties.
This pay is classified by class.

Civil Disturbance Control An additional subsistence allowance over and P30/day

Subsistence Allowance above the regular subsistence allowance given to
support the meal requirement of PNP uniformed
personnel who are directed by official orders to
undertake CDC operations
 Particulars Description Authority Rate
Sea Duty Pay This pay applies to all PNP personnel assigned NAPOLCOM Res Nr 25% of base
with the PNP Maritime Group or any PNP unit 91-18 dtd Oct 21, pay/month
requiring such personnel to be on board any 1991
other watercraft/vessel for the purpose of
rendering continuous official duties for not less
than fifteen (15) days per month.

Hospital Subsistence An additional subsistence allowance over and NAPOLCOM Res Nr P30/day
Allowance above the regular subsistence allowance of PNP 91-18 dtd Oct 21,
uniformed personnel who are officially 1991
admitted, confined and treated as in-patient in
any PNP hospital.

Hardship Allowance Given to PNP uniformed personnel assigned to PCO = P300

or on DS with Loran station and border PNCO = P150
crossing station and other units/stations/site
isolated and inaccessible by any form of
transportation
 Particulars Description Authority Rate
Special Clothing Given to uniformed personnel of the PNP NAPOLCOM Res Officers:
Allowance whose frequent appearances in public affairs or 91-18 dtd Oct 21, P300/annum
frequent attendance to ceremonies and who are 1991 Non-Officers:
assigned in units/activities requiring the P150/annum
wearing of presentable uniform at all times. It Additional amount is
is also given to PNP uniformed personnel given yearly for
assigned to special duties as aide-de-camp, maintenance
escorts and honor guards.
Officers:
P80/annum
Non-Officers:
P40/annum
Winter Clothing Allowance An allowance given to all uniformed personnel NAPOLCOM Res $300
of the PNP who will undergo foreign Nr 91-18 dtd Oct
schooling/training to support the expenses in 21, 1991
procuring the required winter clothing abroad

Training Subsistence An additional subsistence allowance over and NAPOLCOM Res P30/day
Allowance above the regular subsistence allowance given 91-18 dtd Oct 21,
to PNP uniformed personnel who are covered 1991
with appropriate orders to undergo individual
or group training programs and courses
 Particulars Description Authority Rate
Instructors Duty Pay An incentive allowance provided to all PNP uniformed NAPOLCOM Res 25 % of the Base Pay
personnel assigned in the PNP training schools/centers Nr 91-18 dtd Oct
or detailed with PPSC and are required to teach, 21, 1991
convey or communicate knowledge or supervise
training activities or conduct researches or perform
duties as training aides in one or more subjects.

Flying Pay Given to all duly accredited PNP pilots provided NAPOLCOM Res 50% of the Base Pay
they maintain flying time requirements of an Nr 91-18 dtd Oct
average of four (4) hours of aerial flight per 21, 1991
month

Replacement Clothing Given every after three (3) years of continuous NAPOLCOM Res P14,000.00
Allowance (RCA) service to all PNP uniformed personnel to Nr 96-093 dtd Oct
replace the initial gratuitous clothing issued 30, 1996
every after three
upon recruitment.
years
Initial Clothing One time allowance given in kind to new NAPOLCOM Res New Recruits:
Allowance recruits of the PNP upon entry in the PNP Nr 91-18 dtd Oct P20,000.00
service. 21, 1991
 Particulars Description Authority Rate
Hospitalization Reimbursement of Hospitalization expenses NAPOLCOM Res
Expense incurred by the PNP uniformed personnel Nr 91-18 dtd Oct
shall be limited to medical services, 21, 1991
medicines and medical supplies that are not
available in the PNP Medical Facility and
are not within the authorized benefits
provided by Philhealth.

Cold Weather Additional allowance given to all uniformed NAPOLCOM Res Initial amount of
Clothing Allowance personnel assigned in cold places where cold Nr 91-18 dtd Oct P1,000/year
weather clothing is necessary 21, 1991 Annual maintenance fund
of P300 thereafter
Hazardous Duty Pay Allowance to given to PNP uniformed NAPOLCOM Res 50% of Base Pay
personnel for exposure to particular Nr 91-18 dtd Oct
occupational hazards or elements, or 21, 1991
hazardous jobs involving high risk of losing
life, limbs or likely deterioration of health.

Radiation Hazard Pay Incentive pay for PNP skilled personnel NAPOLCOM Res Must not exceed 15% of
whose nature of work subject themselves to Nr 91-18 dtd Oct the base pay authorized by
the hazards of over exposure to radio active 21, 1991 rank
elements.
 Particulars Description Authority Rate
Special Financial Assistance Given to all uniformed personnel of Six (6) months salary plus
PNP who died or suffered permanent allowances
disability while doing police
operations.

Burial Allowances Monetary assistance to the bereaved NAPOLCOM Res Dir Gen to CSUPT
family of a PNP uniformed Nr 91-18 dtd Oct 21, P3,000
personnel in the event of his death, 1991
regardless of the circumstances. SSUPT to CINSP
P2,500
SINSP to INSP
P2,000
PNP Cadet
P1,500
Non-Officer
P1,200
 Mid Year Bonus
(MYB)
• Beginning FY 2016, Mid Year Bonus is equivalent
to one (1) month basic salary as of May 15, shall
be granted to those who have rendered at least
four (4) months of satisfactory service and are
still and are still in the service as of same date to
be given not earlier than May 15 of every year.
 Enhanced Performance Based
Bonus (PBB)
• The existing PBB granted to qualified government
personnel, including those in LGU, shall be enhanced
to strengthen its results orientation, to be given in an
amount equivalent to one (1) month basic salary up to
two (2) months basic salary, to be implemented in two
(2) phases starting in FY 2017.
• The grant of the enhanced PBB shall be based on a
progressive rate system. As the position and
responsibility in improving agency performance
becomes higher, so is the amount of PBB.
 Productivity Enhancement
Incentive (PEI)
• Beginning FY 2016, the PEI shall be given not
earlier than December 15 of every year to all
qualified government employees at Five
Thousand Pesos (P5,000.00) each for the purpose
of improving the government
employees’productivity.
 Year End Bonus
(YEB)
• Year End Bonus is equivalent to one (1)
month basic salary as of October 31 and
Cash Gift of P5,000.00, shall be given to
entitled government personnel not
earlier than November 15 of the current
year.
 Rice Subsidy
• All PNP Uniformed personnel in the active
service whether in permanent or temporary
status are entitled to rice subsidy.
• The Rice Subsidy shall be given in the form of
cash allowance, which shall be equivalent to
Twenty (20) kilos of rice or a total amount of
Six Hundred Fifty Pesos (P650.00) per month.
No rice, rice voucher and/or its equivalent
shall be distributed to police officers.
 Magna Carta Benefits for Health
Workers
All personnel assigned to
Health Service (HS)
Subsistence Allowance of P30.00 per day
Laundry Allowance of P125.00 per month
Personnel receiving Hazardous
Duty and Specialist Pay are
excluded
 Reimbursement of Hospitalization Expenses (RHE)

All uniformed personnel

As determined by the RHE
Adjudication Board
Personnel are required to secure
indorsement from PNPGH or RHS
prior to confinement to hospitals
others than the PNP Medical
facilities
RHE claims must be filed within 60
days from the date of discharge
from confinement

REGIONAL ADJUDICATION BOARD

MEDICAL – P60,000.00 and below
SURGICAL – P100,000.00 and below
– in excess of the above amounts claim shall
be forwarded to the NHQ Adjudication Board
P350,000.00 for catastrophic
cases except cardiac by-
pass and kidney transplant
patients

P250,000.00 for medical and

surgical cases
 Special Financial Assistance
(SFA)
PNP uniformed personnel who
were killed in the performance
of police operations
Six months Salary and
Allowances plus 50% of Bonus
(Base Pay and Cash Gift)
Exclusion: death caused by
illness, accidents or
negligence