Compensation of Contractual Personnel.
Section 41
SEC. 41. Compensation of Contractual Personnel.— Heads of ministries, bureaus, offices or agencies, when authorized in their respective appropriations as herein provided under this Act, may hire consultants, experts and other contractual personnel to perform specific vital activities or services which cannot be provided by the regular staff of the agency, limited to such period when their services are reasonably required and to activities that shall have a definite expected output. Such contractual personnel may be paid compensation inclusive of fees, honoraria, per diems and allowances not exceeding 120% of the minimum salary of an equivalent position in the National Classification and Compensation Plan, except as may be authorized by the Director General of the Office of Budget and Management in the following instances: (a) when the consultant or expert is an acknowledged authority in his field of specialization; and (b) where the consultant or expert is hired to perform a specific activity or service that requires technical skill and expertise which local force cannot provide, or if such expertise is available, the supply is limited: Provided, That in no case shall such compensation exceed the salary of his immediate superior, except as may be otherwise approved jointly by the Chairman of the Civil Service Commission and the Director General of the Office of Budget and Management: Provided, further, That no amount appropriated in this Act shall be used for payment of retirement gratuity under Section 12 (c) of C.A. No. 186, as inserted by R.A. No. 1616, as amended, and of all leave benefits which include services rendered under contractual employment and use the compensation received for the same period as basis for computation thereof, any provision of law to the contrary notwithstanding. For purposes of this Section, appointments to positions funded from lump-sum appropriations for personal services for the payment of consultants, technical, professional and expert services, confidential assistants or other similar positions, or from capital outlays, feasibility studies fund, subsidies, donations, special projects fund, either funded by the General Fund and/or supported by domestic or foreign loans, and other similar funds which may be used for personal services, are considered contractual in nature. Appointments which are funded from special lump-sum appropriations, subsidies, and contributions from other agencies, shall likewise be considered as contractual in nature, except as may be determined by the Director-General of the Office of Budget and Management.