What is RATA?

RATA is a collective term for two distinct but complementary allowances: representation allowance (RA) and transportation allowance (TA). Both allowances are provided to select government officials to cover related expenses incidental to and in connection with the actual performance of their respective functions. [DBM]

Two (2) types of RATA

RATA may either be commutable or reimbursable.

As derived from Section 317, Article 8, Chapter 5, Volume 1 of the Government Accounting and Auditing Manual, RATA is commutable if the grant thereof is specifically authorized by law and if funds for its payment are provided for in the Agency budget. The General Appropriations Act (GAA) serves as the law authorizing the payment of commutable RATA. Payment of the said allowances presupposes actual rendition of services in line with official duties.

On the other hand, when the RATA of certain government official has not been provided for in the Agency budget, unlike commutable RATA, although the incurrence of the same is allowed under existing rules and regulations, the said RATA is said to be on reimbursable basis.

As derived from Section 286, Article 1, Chapter 5, Volume 1 of the Government Accounting and Auditing Manual, reimbursable RATA should be duly supported by receipts or by a certification to the effect that the expenses had been incurred in accordance with the purpose for which the allowance is granted. [DBM]

How much is the RATA of national government officials (RATA Rates)

The General Appropriations Act (GAA) serves as the law authorizing the payment of RATA. The GAA also provides the rates of RATA that may be given to entitled government officials. The rates can be found in the General Provisions of the GAA.

For 2021 the rates of RATA is shown below:

RATA Rates as provided in the GAA:

How much is the RATA of local government units (LGU) officials (RATA Rates)

The RATA of local government officials who are of equivalent rank to the national government officials who are entitled to RATA shall be at the same percentages of the salary rates authorized for their corresponding income classification in accordance with Section 10 of R.A 6758 and subject to the personnel services limitation under Section 325(a) of the Local Government Code of 1991 (RA 7160).

Below is a table showing the positions for LGU officials of equivalent ranks to positions for national government officials entitled to RATA.

Maximum Monthly RATA of LGU Officials effective January 1, 2013

Transportation Allowance (TA) of Government Officials who were assigned or is actually using government motor vehicle

Government officials who are assigned or actually using government motor vehicle shall not be granted transportation allowance. However, if said motor vehicle cannot be used due to justifiable reason/s, the government official concerned may be granted transportation allowance but only during the period when said official cannot used the government motor vehicle assigned to him/her.

Implementing Rules and Regulations (IRR) on the grant of RATA (Legal Bases)

The most current Circulars covering the guidelines on the grant of RATA are listed below:

For National Government Agencies — NBC No. 548: Amended Rules and Regulations on the Grant of Representation a d Transportation Allowance (RATA)

For Local Government Units (LGUs) — LBC No. 103: Amended Rules and Regulations on the Grant of Representation a d Transportation Allowance (RATA)

Frequently Asked Questions (FAQs)

Is RATA taxable?

No. The RATA of government officials is not taxable according to the Bureau of Internal Revenue.

However, the RATA given in the private sector is taxable as the same is treated as compensation income. It is, however, exempt from tax if the following conditions are present:

1.) The expenses are ordinary and necessary in the pursuit of trade, business or profession.

2.) The employee is required to account/liquidate for the said expenses. [Pozon]

[Recommended Read: 12 Non-Taxable Compensation Income of Government Officials and Employees]

Where to charge reimbursable RATA of Officers-in-charge (OICs), PS or MOOE?

Whether commutable or reimbursable, RATA should be charged against available allotment under PS. Read more >>>

How to determine/compute the RATA of Local Sanggunian members?

The Department of the Interior and Local Government (DILG) clarified in a legal opinion that the “members of the local Sanggunian are governed by Item 7.5 of LBC 103 which provides for the computation of the RATA based on the actual work/attendance of the official vis-a-vis the work schedule or performance standards prescribed by law or by competent authority. Thus, the statement “verily, the work performed by members of local Sanggunian is not limited or confined to attendance during sessions” should be read in relation to the basis for computation of the RATA of members of the local Sanggunian, i.e., actual work/attendance of the official in relation to the work schedule or performance standards prescribed by law or by competent authority to ascertain the correct computation of the local officials’ RATA.” Read more >>>

What are the documentary requirements needed in order for an Officer-in-charge (OIC) claim his reimbursable RATA?”

As derived from Section 286, Article 1, Chapter 5, Volume 1 of the Government Accounting and Auditing Manual, reimbursable RATA should be duly supported by receipts OR by a certification to the effect that the expenses had been incurred in accordance with the purpose for which the allowance is granted. Read more >>>

If the RATA was not paid in previous year, can it be paid during the current year?

Yes, RATA is part of ones compensation which is legally demandable from the employer.

If it was obligated in the previous year and recorded as accounts payable (or due to officers and employees), then it can be paid during the current year.

However, if no obligation was recorded in the previous year, then an annual or supplemental budget is required before the same can be paid. Read more >>>

If a government official is receiving RATA, can he still claim reimbursement for his taxi fare during an official travel?

Transportation allowance covers the transportation cost of the official within his/her official station/jurisdiction. The official is allowed to claim reimbursement of travel expenses even if receiving RATA if his travel is outside his official station/jurisdiction, subject to pertinent guidelines on the grant of daily travel expenses (DTE). Read more >>>

Can an official, assigned with or is using a motor vehicle, claim Transportation Allowance (TA)?

If the official has been assigned with or actually using the motor vehicle of the Agency, he/she can only claim representation allowance (RA). However, if although he/she has a motor vehicle assigned to him/her and the same is under repair, and thus cannot use it, he/she can claim transportation allowance (TA) for the actual days he/she cannot use the MV. Read more >>>

Are ‘internally-generated OIC designations’ entitled to RATA?

Section 8.0 of DBM NBC No. 548 dated May 15, 2013, an OIC, who are not assigned or who do not use government motor transportation, of a position, authorized in an agency staffing pattern and entitled to RATA, may be allowed to collect the RATA for the position on reimbursable basis, if stipulated in the office order designating him/her as such. For OICs who are assigned or who use government motor transportation, the OIC may be allowed to collect on the RA on reimbursable basis.

Those designated as OICs to positions in agency internally created organizational units whose staffing are not authorized by DBM, thus are considered as ad-hoc arrangements, are not entitled to RATA. Read more >>>

Can government officials who are receiving RATA claim Daily Travel Expenses (DTE) during official travels?

Government officials who are receiving RATA can claim Daily Travel Expenses (DTE) during official travels, subject to the provisions Executive Order No. 77. Read more >>>

[Click here to read more forums on EO 77]

How to determine the amount of RATA based on actual attendance/work performed?

Pursuant to NBC No. 548, if the government official has rendered 17 working days or more, he is entitled to 100% RATA; 12 to 16 days – 75% RATA; 6 to 11days – 50% RATA; 1 to 5 days – 25% RATA. Read more >>>

If a government official receiving RATA is on official leave for one (1) month, can he claim his RATA on that month?

No. RATA is given based on the actual number of days rendered/performed in a month by the official. He must have rendered at least one (1) to five (5) days of service in order to get 25% of his RATA or 17 days or more to get 100% of his RATA. Read more >>>

For purposes of RATA, the following shall be construed as actual work performance:

If a government official receiving RATA is on maternity leave, can he claim his RATA?

Unfortunately, no. The payment of RATA is based on actual attendance or work performed. Pursuant to NBC 548 (applicable to NGA) and LBC 103 (applicable to LGUs), while maternity leave is considered as an official leave and there a corresponding payment for maternity leave benefits, for purposes of RATA, maternity leave shall not be construed as actual work performance or attendance to work. Read more >>>

Are government officials still entitled to RATA even if they work from home due to the COVID-19 pandemic?

NBC 548 and LBC 103 have no expressed provisions on this matter. However, the Civil Service Commission (CSC) allows “work from home” as one of the alternative work arrangements that government agencies may adopt while the Philippines is under a state of public health emergency. Thus making work from home as an official wotk arrangement. While many members of our community believe that government officials are entitled to RATA while they work from home, based on the CSC guidelines, some members have a different perspective to the contrary. Read more >>>

[Read more forums on the grant of RATA to government officials]