MI Republic of the Philippines

DEPARTMENT of AGRARIAN REFORM

MEMQRANDUM
No.~Q_ S. 2014

FOR ALL CONCERNED

FROM THE OIC UNDERSECRETARY

FINANCE, PLANNING AND ADMINISTRATION OFFICE

SUBJECT RENDITION AND PAYMENT OF OVERTIME SERVICES

Date 9 January 2014

Pursuant to Section} 0, Rule XVII of the Civil Service Omnibus Rules, Presidential
Memorandum Cir~ar No. Ill, Series of 1995, D8M Circular NO.1 0 dated 29 March
1996, and letter' of the Executive Secretary dated 22 February 2013, the following
gUidelines on the rendition and payment of overtime are hereby reiterated and/or
prescribed:

I. GENERAL GUIDELINES:

1. The rendition of overtime services With pay may be authorized beyond the
regular eight (8) work. hours of regular work. days, and dUring rest days
and non-working holidays, for the following activities only:

1.1 Seasonal work, such as budget preparation and rendition of annual

reports, to meet scheduled deadlines;

1.2 Implementation of special/projects embodied in Presidential directives

and authorizations and with specific dates to complete, which are in
addition to the regular duties of the employees; and

1.3 Other urgent works that cannDt be finished during office hours due tD
either limited number of persDnnel tD dD the same Dr equally
impDrtant additional workload that have to be attended to.

2. Subject to availability of funds, the following ~rsonnel may be

authDrlzed tD render Dvertime services and be paid Dvertime pay:

2.1 Regular, tempDrary, contractual and casual employees whDse salary

grades range from 1 to 24.

3. Payment Df overtime services rendered after offICial working hours shall

be for a minimum of one (l) hDur.

4. Overtime services rendered by the employees who are Dn tempDrary

reassignment shall be paid by the offices where they are presently
reassigned.

5. EmplDyees who are late on regular working days and absent during
Fridays shall not be authDrized to render overtime services after office
hours and Dn Saturdays immediately following the said Fridays: Likewise,
emplDyees whD are late and/or absent at least three (3) times in a week

Elliptical Road, Dilirnan, Quezon City· Tel. (632) 928-7031 to 39

 shall not be authorized to render aT services on the ensuing Saturday.
OT services shall be rendered only for urgent or additional work and
never to compensate absences, tardiness or undertimes on regular
days.

6. Contract of Service (COS) Personnel are not allowed to collect overtime

pay as there is no employee employer relationship as per their Contract of
Service. They may avail themselves of the compensatory time-off (CTO),
equal to the number of overtime hours rendered.

7. Employees shall not be allowed to render overtime services without the

presence of their respective supervisors (at least Section chief) who are
likewise tasked to monitor their works/activities.

II. REQUESTS FOR AUTHORITY TO RENDER OVERTIME SERVICES

1. As a general rule, requests for au~hority to render overtime services shall

be made by the Division Chiefs. In the exigency of the service, however, a
Special Order maybe issued and signed by the Undersecretary, FPAO (for
Central Office), Regional Director (for Regional Office) or Provincial
Agrarian Reform Program Officer II (for PrOVincial Office), as the case, may
be, upon the recommendation of the Division Chief concerned indicating
the period (i.e. number of days and/or hours) for the rendition of the
overtime, the names of the personnel authorized and the activities to be
undertaken.

1.1 Authority to tender aT services shall be requested by the Division

Chiefs before the rendition of the aT services;

1.2 Those availing of the flexi-tlme work schedule of 7:00 am to 4:00 pm

maybe requested to render OT services. However, aT work shall only
be one (l) hour on weekdays from 4:00 - 5:00 so as not to defeat the
purpose for employees desiring to arrive home early to attend to their
domestic concerns and responsibilities; and

1 .3 Original Daily Time Records (DTR) shall be accomplished and

submitted at the end of every month, indicating the total number of
hours rendered for aT work.

2. The approving officials concerned shall be responsible for any payment of

overtime services rendered by the employees not in accordance with
prescribed gUidelines.

III. COMPUTATION OF OVERTIME SERVICES WITH PAY

1. Payment of overtime services shall cover the following:

1.1 Those rendered beyond 8 hours of a regular day; and

1 .2 Those rendered on Saturdays and non-working holidays.

2. Overtime pay by the hour shall be based on his/her actual hourly rate,
computed as follows:

Actual Hourly Rate (H.R.) = __..J":A",c""tu",a..I~Sa"""la",rvLl>p",e"-r-'.'m",o",n:'-!t,,,h,--_

(22 days) x (8 hours/ day)
 3. Overtime pay shall be computed as follows:

3.1 For ordinary working days: plus 25% of the hourly rate.
Overtime Pay = 1.25 x H.R. x no. of hours rendered

3.2 For Saturdays and Non-working Holidays: plus 50% of the hourly rate.
Overtime Pay = 1.50 x H.R. x No. of hours rendered.

4. The total overtime pay of the employee for the year shall not exceed fifty
percent (SO%) of his/her annual basic salary;

5. Vouchers/Payrolls covering the payment of overtime shall be supported

by the fol/owing documents:

5.1 Approved overtime authority stating the necessity and urgency of the
work to be done, and the duration of overtime work;

5.2 Overtime work program;.

53 Quantified overtime accomplishment duly signed by the employee and

supervisor;

5.4 Certificate of service or duly approved DTR; and

5.5 Certification that noero was availed during the period where OT Pay
is being claimed, and this should be certified by the Chief, Personnel
Div.

IV. FUNDING SOURCE

1. Funds for the purpose shall be charged against savings from the
following:

1.1 Personnel Services (PS) and Maintenance & Other Operating Expense
(MOOE); and

1.2 For Regional and Provincial Offices, funds for the purpose shall also
be charged against their respective savings from their PS/MOOE.

V. EFFECTIVITY

This shall be retroactive as of 02 January 2013 and remain in effect until

upon issuance of a repealing order.