RMO No. 49-2016: Prescribes internal rules and procedures on the rendition of overtime services of BIR personnel

Summary

RMO No. 49-2016 prescribes internal rules and procedures on overtime (OT) services of BIR personnel.

Key points

1. Who may render OT. Only appointive, salaried civilian government employees in regular, contractual and casual positions of division chief or equivalent level and below may be authorized for paid OT. Those at that level designated as Officers-in-Charge of higher positions may also be authorized, since they still observe prescribed work hours.
2. When OT is allowed. OT is authorized only when extremely necessary, for example when work cannot be finished within regular hours and non-completion would cause financial loss to the government or its instrumentalities. Priority activities and the OT period per workday are specified in the Order.
3. Compensatory Time-Off. Remuneration is generally through CTO. An employee may accrue no more than forty (40) hours a month, with the unexpended balance never above one hundred twenty (120) hours. CTO is filed in advance in blocks of four (4) or eight (8) hours, used up to five (5) consecutive days per availment or staggered within one year, and forfeited if unused after the year earned and the following year.
4. OT pay. Cash OT pay is allowed only in exceptional cases when CTO for all OT hours would hurt agency operations. Only employees who arrive on or before the start of the workday and render at least two (2) hours of OT may be paid, so late or undertime employees may not render OT with pay.
5. Work rules. One-hour breaks apply for meals and rest, and every 3 hours of continuous OT. Overnight OT is a last resort and not more than 2 consecutive nights. Employees in BIR training or seminars, and those on paid leave or government-declared work suspensions and holidays, may render OT.
6. Pay limits. On a rest day, scheduled day off, holiday or special non-working day, a maximum of 12 hours is paid as OT pay and any excess is paid through CTO. Total OT pay per employee in a year may not exceed 50% of total basic salary. The agency’s OT pay may not exceed 5% of its total Personnel Services budget, and any excess needs Department of Budget and Management approval.

Who is affected

• BIR personnel at division chief level or equivalent and below
• Officers-in-Charge of higher level positions

Deadlines and effectivity

• CTO accrual: not more than forty (40) hours a month
• Unused CTO forfeited after the year earned and the immediately succeeding year

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.