7 Rules to Remember before paying the Uniform and Clothing Allowance (Avoid COA Disallowance or Adverse Audit Findings)

It’s almost April and it’s time again to process and pay the uniform and clothing allowance of government employees.

Hence, it’s best to know or remember once more the rules before paying this most awaited allowance this coming month.

Here we give you seven (7) of the most important rules when it comes to paying the uniform and clothing allowance.

1. Don’t pay more than the authorized amount.

Pertinent provisions of the General Appropriations Act (GAA) provides for the amount of U/CA that may be granted to government personnel. Last year, the amount was P6,000.00 per qualified employee. For this year, the same amount may be granted pursuant to the general provision of the GAA.

Starting 2024, the Uniform or Clothing Allowance may be granted at an amount not exceeding ₱7,000.00.

https://gabotaf.com/2023/02/08/faq-when-is-it-allowed-to-release-or-pay-the-uniform-and-clothing-allowance/

2. Not every personnel is entitled.

All civilian government personnel occupying regular, contractual, or casual positions; appointive or elective; rendering services on full-time or part-time basis may be granted U/CA subject to the provisions of BC No. 2018-1 or a newer Circular issued for the same.

However, the following personnel are NOT entitled to the uniform and clothing allowance:

▪️Barangay officials and employees paid monthly honoraria (since they are not required to comply with dress codes or wear prescribed government uniforms)

▪️Foreign service personnel of the Department of Foreign Affairs and of other departments/agencies who are stationed abroad (since they are not required to wear uniforms and are sufficiently supported by a set living allowance)

▪️Those hired without employer-employee relationships and funded from non-Personnel Services appropriations/budgets, as follows:

a. Consultants and experts hired for a limited period to perform specific activities or services with expected outputs;

b. Laborers hired through job contracts (pakyaw) and those paid on piecework bases;

c. Student laborers and apprentices; and

d. Those whose services are engaged through job orders, contracts of service, and others similarly situated.

The guidelines for the U/CA of Military and Uniformed Personnel of the government is covered by separate rules and regulations.

3. Remember to count the government services rendered.

As a general rule, the full rates of the U/CA for full-time and part-time service shall be granted to those who are already in government service and are to render services for at least six (6) months in a particular fiscal year, including leaves of absence with pay.

Said provision of the guidelines pertains to employees who are already in the government, as opposed to newly-hired employees, and are to render services for at least six months in a particular year, that is, between January 1 to December 31 of the current year.

A new employee, hired during the fiscal year, may qualify to the grant of U/CA only after rendering six (6) months of service, and if he/she is expected to render services for at least six (6) months for the rest of the year.

https://gabotaf.com/2023/03/13/guidelines-on-the-grant-of-uniform-and-clothing-allowance-to-newly-hired-government-employees/

4. Know who’s exempted from the 6-month rule.

The six (6)-month service requirement shall not cover those who are required to wear uniforms at all times in the performance of their work such as incumbents of positions of Security Guard, Special Police, medical and allied medical staff in hospitals, and those in similar situations, as they have to wear their uniforms at all times.

5. Know who shall pay the U-C-A.

• The U/CA of an employee on detail to another government agency shall be borne by the mother agency.

• An employee who transferred to another agency and was not granted U/CA by the former agency shall be granted U/CA by the new agency, subject to the submission of a certification to that effect.

• An employee who transferred to another agency within the year but was earlier granted U/CA by the previous agency shall no longer be granted U/CA by the new agency.

• An employee who transferred to another agency and is required to wear uniforms at all times, may be granted U/CA by the new agency even if he/she was granted U/CA by the former agency, subject to the approval of the new agency head.

• An employee on study leave or on study/training/scholarship grant locally or abroad shall be entitled to the U/CA for the year if he/she renders at least six (6) months of service in the same year, including leaves of absence with pay, prior to and/or after the study leave or study/training/scholarship grant.

• If an employee is on study/training/scholarship grant for the whole year, locally or abroad, and is not required to report for work, he/she is not entitled to the U/CA.

6. Know the source of funds to avoid incorrect charging.

• For NGAs/SUCs, the U/CA is charged against their respective agency budget under the General Appropriations Act.

• For GOCCs, the amount required shall be charged against their respective approved corporate operating budgets.

• For LGUs, the amount required shall be charged against their respective local government funds, subject to personnel services limitation.

7. Know the accountability of your agency.

Agencies shall be held responsible for the proper implementation of the guidelines on the grant of U/CA.

They shall issue internal guidelines on the grant of the U/CA such as, determination of the form of U/CA, and selection of uniform/clothing designs.

They shall also issue internal guidelines on the following:

a. The prescribed uniform or clothing for specific or special employee groups;

b. Modified uniforms as may be necessary due to religious affiliations or creed, physical disabilities, or legitimate health reasons; and

c. Monitor compliance with set guidelines on wearing uniforms and appropriate attire.

They shall be held liable for any grant of U/CA not in accordance with the existing rules and regulations without prejudice, however, to the refund by the employees concerned of any excess or undue payments.

Recap

In summary, in order to avoid adverse audit findings or disallowance from the Commission on Audit (COA), pay the uniform and clothing allowance only up to the authorized amount which for this year is P6,000.00 (₱7,000.00 starting 2024); pay only those who are entitled and exempted from the required number of government service; know whose office will pay employees on detail, transferred office, and those on study leave/scholarship; know where to charge the allowance; and the responsibility of the agency in the proper implemention of these rules.

Have we missed anything?

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