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In case, the Local Government Unit (LGU) is about to exceed the budgetary Personal Services (PS) Limitation, is there an alternative remedy for devolved public health workers (PHWs) to get salary increase, at par with their national counterpart? This PS limitation is provided under Section 325 of R.A 7160, otherwise known as the Local Government Code of 1991. It states, as follows:
Section 325.General Limitations. – The use of the provincial, city, and municipal funds shall be subject to the following limitations:
(a) The total appropriations, whether annual or supplemental, for personal services of a local government unit for one (1) fiscal year shall not exceed forty-five percent (45%) in the case of first to third class provinces, cities and municipalities, and fifty-five percent (55%) in the case of fourth class or lower, of the total annual income from regular sources realized in the next preceding fiscal year. The appropriations for salaries, wages, representation and transportation allowances of officials and employees of (more…)
A major issue in devolved health facilities, e.g, devolved hospitals and Rural Health Units (RHUs), concerns the personal services (PS) limitation being applied to them pursuant to Section 325 (a) of R.A 7160, otherwise known as the Local Government Code of 1991. This is invoked by majority of budget officers from the local government units (LGUs), thereby likewise limiting the capability of the local government units, in terms of health manpower requirements, to serve the health needs of constituents. Also, it is seemingly supported by some circular issued by Department of Budget and Management, e.g, Local Budget Circular no. 98, issued last October 14, 2011, which is a 180 degrees turn-around stand on the matter, in view of the previous favorable issuance, e.g, concerning public health workers (PHW) benefits under RA 7305, otherwise known as the Magna Carta for Public Health Workers, which exempts local health personnel from its coverage. (more…)