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BP 40 Section 43

Compensation of Contractual Personnel.

Section 43

SEC. 43. 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 Minister of the Budget 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 labor 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 by the Civil Service Commission and the Ministry of the Budget: Provided, further, That services rendered under contractual employment shall not be credited nor the compensation received for the period be used as basis for computation of gratuity benefits for retirement purposes or for the computation of all leave benefits, the provisions of Section 12 (c) of C.A. No. 186, as amended, and other laws 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, special projects fund, and other 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 from the effectivity of this Act, except as may be determined by the Minister of the Budget. Administrative Procedures

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Other provisions in BP 40

Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗ · Data as of July 4, 2026

CitationBP 40 Section 43 (LawPlayer, data as of July 4, 2026)

Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).

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