GUIDELINES GOVERNING CONTRACTUAL EMPLOYMENT FOR YEAR 2000

This Circular covers the following

1.1       Contractual personnel who are herein referred to as those
who are hired in accordance with a specific contract for a specific
period and with a definite expected output and are employed to undertake
a particular work or project, and whose hiring creates an
employee-employer relationship between them and the hiring agency;

1.2       Government statutory expenditures on Personal Services
which are referred to as the government share of premiums for retirement
and life insurance (RLIP), health insurance (Medicare), employees’
compensation insurance (ECIP) and PAG-IBIG; and

1.3       Leave benefits of contractual personnel pursuant to CSC
Memorandum Circular No. 14, s. 1999 (Additional Provisions and
Amendments to CSC Memorandum Circular No. 41, s. 1998).

2.0       Guidelines

2.1       The following guidelines shall apply to contractual personnel starting January 1, 2000.

2.1.1 Contractual personnel shall be paid compensation of an
equivalent position as determined by the Department of Budget and
Management, but not to exceed the salary of his immediate superior. All
contracts of services shall only provide the basic salary of the
position.

2.1.2 The government share for RLIP, Medicare, ECIP and PAG-IBIG
of contractual employees shall be charged against the lump sum funds of
the agency for contractual employees.

2.1.3 The vacation and sick leave credits of contractual employees
shall be governed by Rule XVI of the Omnibus Rules Implementing Book V
of the Administrative Code of 1987 (Executive Order 292) on Leave of
Absence, as amended by CSC Memorandum Circular No. 14, s. 1999. However,
to avoid accumulation of vacation leave credits, contractual employees
shall be encouraged to use their vacation leave benefits. Agency heads
and Personnel Officers shall schedule the vacation leaves of contractual
employees in a manner that will not adversely affect the operations of
the agency.

2.1.4 Monetization of leave credits and payment of terminal leave
benefits of contractual employees, if any, shall be charged against
agency savings after taking into consideration the priority in the use
of savings as provided under the General Appropriations Act.

2.2       Those personnel whose employment are covered by a
contract, but whose nature of employment has features as indicated
below, are not covered by the above guidelines:

2.2.1 Student laborers, apprentices, laborers of contracted
projects (pakiao), mail contractors, including those paid on piecework
basis; and

2.2.2 Those whose positions are not classified/approved by the
Department of Budget and Management and the Civil Service Commission.

2.3       All caqses not covered by this Joint Circular shall be referred to the DBM for appropriate action.

3.0       Effectivity

This Circular shall take effect January 1, 2000.

Adopted: 29 Dec. 1999