Compendium of DepEd Support Mechanisms for Employees Pursuant to Bayanihan Act

COMPENDIUM OF DEPED SUPPORT MECHANISMS FOR EMPLOYEES PURSUANT TO BAYANIHAN ACT

July 2020 Office of the Undersecretary for Finance Office of the Director for Finance Service - Legal Education Programs Delivery Unit Employee Accounts Management Division 1

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LEGAL BASIS

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A. REPUBLIC ACT NO. 11469, OTHERWISE KNOWN AS THE “BAYANIHAN TO HEAL AS ONE ACT”

On March 24, 2020, President Rodrigo Duterte signed into law the “Bayanihan to Heal as One Act” granting him additional powers to address the emergency health crisis the country is now facing due to the coronavirus disease (COVID-19) threat.

Under Section 4(aa), the President is authorized to direct all banks, quasibanks, financing companies, lending companies, and other financial institutions, public and private, to implement a minimum of thirty (30)-day grace period for the payment of all loans falling due within the period of the Enhanced Community Quarantine without incurring interests, penalties, fees, or other charges.

B. IMPLEMENTING RULES AND REGULATIONS OF SECTION 4 (AA) OF REPUBLIC ACT NO. 11469

Pursuant to RA 11469, the Department of Finance (DoF) has issued on April 1, 2020 the implementing rules and regulations (IRR) directing all lenders to grant a 30-day grace period or extension for the payment of all loans, falling due within the enhanced community quarantine (ECQ) period, without imposing interest on interest or any additional charges and fees on the borrowers. This IRR took effect on April 2, 2020, following its publication in newspapers.

C. MC 10 S. 2020 REVISED INTERIM GUIDELINES FOR ALTERNATIVE

WORK ARRANGEMENTS AND SUPPORT MECHANISMS FOR WORKERS IN THE GOVERNMENT DURING THE PERIOD OF STATE OF NATIONAL EMERGENCY DUE TO COVID-19 PANDEMIC

The Memorandum Circular issued by the Civil Service Commission (CSC) contains the complete set of guidelines for implementing the alternative work arrangements (AWA) that government agencies may adopt while the entire country is placed under a State of Public Health Emergency due to the coronavirus disease-2019 or COVID-19 pandemic.

The Alternative Work Arrangements are 1) Work-from-home arrangement: 2) skeleton workforce; 3) four-day or compressed workweek; and 3) staggered working hours. Also, an agency may adopt work arrangements consisting of a combination of these, or other work arrangements appropriate and applicable to the agency considering the prevailing conditions in the area where it is located or the nature of work performed by its employees.

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C. MC 10 S. 2020 REVISED INTERIM GUIDELINES FOR ALTERNATIVE

WORK ARRANGEMENTS AND SUPPORT MECHANISMS FOR WORKERS IN THE GOVERNMENT DURING THE PERIOD OF STATE OF NATIONAL EMERGENCY DUE TO COVID-19 PANDEMIC

The Memorandum Circular issued by the Civil Service Commission (CSC) contains the complete set of guidelines for implementing the alternative work arrangements (AWA) that government agencies may adopt while the entire country is placed under a State of Public Health Emergency due to the coronavirus disease-2019 or COVID-19 pandemic.

The Alternative Work Arrangements are 1. Work-from-home arrangement: 2. skeleton workforce; 3. four-day or compressed workweek; and 4. staggered working hours. Also, an agency may adopt work arrangements consisting of a combination of these, or other work arrangements appropriate and applicable to the agency considering the prevailing conditions in the area where it is located or the nature of work performed by its employees.

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II

MONETARY

SUPPORT MECHANISMS

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A. PAYMENT OF HAZARD PAY TO QUALIFIED DEPED EMPLOYEES Administrative Order No. 26 dated 23 March 2020 authorizes the grant of COVID-19 Hazard Pay to government employees and workers engaged through COS or JO basis who physically report for work during the implementation of an Enhanced Community Quarantine in their respective work stations, in an amount not exceeding P500/ day per person.

Based on Sec 4.1 of Budget Circular No. 2020-1, the COVID-19 Hazard Pay shall be computed as follows: COVID-19 Hazard Pay = P500 x No. of days physically reporting for work during the quarantine period

B. PAYMENT OF RATA DURING QUARANTINE PERIOD Pursuant to the National Budget Circular No. 548 series of 2013, representation and transportation allowance (RATA) shall be granted to select government officials to cover related expenses incidental to and in connection with the actual performance of their respective functions.

Payment of RATA presupposes actual rendition of services in line with official duties, and officials working from home during the implementation of the Enhanced Community Quarantine (ECQ) are considered to have rendered actual work for purposes of entitlement of RATA.

C. GUIDANCE ON AUTHORIZING CONCERNED OFFICIALS

AND PERSONNEL OF THE CENTRAL OFFICE TO REIMBURSE ENHANCED COMMUNITY QUARANTINE–RELATED EXPENSES (OFFICE MEMORANDUM OM-OSEC-2020-007)

Communication expense (mobile and internet) of personnel under WFH arrangement during the implementation of ECQ amounting to Five Hundred Pesos (P500)/month, which shall be certified by the heads of office. These expenses are incurred in connection with the performance of their official functions and are necessary to support the operations of an agency.

Transportation expenses of personnel who do not avail of the provided DepEd Service amounting to Two Hundred Pesos (P200)/day.

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D. OTHER INTERVENTIONS a. Finance Service Interventions Relative to Proclamation No. 922 s.20202 (MEMORANDUM OUF-2020-0080) Interventions include: 1. Advance processing of salaries of regular/plantilla staff, COS at CO; 2. Authorizing the use of MOOE and/ local funds for preparation and as response to COVID- 19 threats3 b. Advance Processing of Salaries, Provision for Additional Loans, and Extension of Loan Payments and Corresponding Loan Refunds Internal Guidelines on the Implementation of Section 4(aa) of Republic Act No. 11469 Pertaining to the Grant of Extension or Grace period on Payment of Loans under the Department’s Automatic Payroll Deduction System Program (DepEd Order No. 3s. 2020) GRACE PERIOD ON LOAN PAYMENTS The said guidelines direct all lenders to grant an initial 30-day grace period or extension of period for payment of all loans, falling due within the enhanced community quarantine (ECQ) period. It also provides guidance on the processing of March, April, May and June 2020 salaries of DepEd employees.

This 30- day grace period was extended to another 30 days following the extension of the ECQ period.

The internal guidelines provide clear and uniform rules on the implementation of the grace period on loan payments under APDS and ensure that the implementation of the aforementioned law shall be beneficial to DepEd borrowers.

Declaring a State of Public Health Emergency Throughout the Philippines.

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DepEd Memorandum entitled “Authorizing the Use of Regular Allocations for Maintenance and Other Operating Expenses (MOOE) and/or Local Funds to Implement Measures in Preparing and Responding to the CoVid-19 Threats

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Refund of Loan Payments Due in April and May (Memorandum OUF-2020-0175) Following the implementation of the 60- day grace period on loan payments and as provided in D.O. No. 3, s. 2020, DepEd initiated a refund for loan payments falling due in April and May. Accordingly, all loan amortizations deducted in favor of Pag-IBIG, Land Bank of the Philippines (LBP), and private lending institutions (PLIs) for the month of April and May 2020 were refunded to the ATM accounts of borrowers.

In the letter-reply of Deputy Governor Chuchi G. Fonacier, Bangko Sentral ng Pilipinas, dated May 4, 2020 , it was clarified that under the Bayanihan Act and its Implementing Rules and Regulations, the extension of the mandatory grace period shall be based on the extended ECQ period declared by the President and shall cover all lenders without distinction irrespective of their place of operation.

Finally, a three-month loan moratorium on payment of Provident Fund loans from April to June 2020 shall be applied in accordance with Provident Fund National Board of Trustees Resolution No. 02, s. 2020. c. Provident Fund National Board of Trustees (PF-NBT) Resolution Nos. 4 and 5, s. 2020 1. DepEd PF-NBT Resolution No. 04, s. 2020 entitled “A Resolution Approving, By Referendum, the Proposal to Recommend to the Secretary the Allocation of Additional Funds to Regions in Light of the Covid-19 Crisis”

Resolution No. 04 will cover additional loans to DepEd employees affected by COVID-19 pandemic nationwide. The said fund came from the 50% of the 30% Notice of Cash Allocation (NCA) unreleased fund which amounted to P410,446,521.00.

2. DepEd PF-NBT Resolution No. 05, s. 2020 entitled “A Resolution Approving, By Referendum, the Adoption of a Simplified Provident Fund Loan Application Process”.

The DepEd PF NBT, through Board Resolution No. 05, s. 2020, has resolved to adopt a Simplified Provident Fund Loan Application Process during the implementation of the Enhanced Community Quarantine (ECQ) in the country. This is to recognize the need for an unimpeded service delivery of the DepEd PF to DepEd employees while observing stringent measures to ensure their health and safety. Regional PF Chapters are also advised to adopt a similar process in accord with their own internal control requirements in order to appropriately and promptly cater to the needs of its employees during this pandemic.

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d. Reminder to Refrain from using ATM Payroll Cards as Collateral for Loans or Engaging in the ATM Sangla Scheme (OFFICE MEMORANDUM OM-OSEC-2020-006) Office Memorandum OSEC-2020-006 dated April 18, 2020 reminds employees against the use of their individual ATM Payroll Card as collateral for loans or engaging in the ATM Sangla scheme.

The practice of surrendering ATM cards as collateral for loans is prohibited by the DepEd Terms and Conditions for Accreditation under the Automatic Payroll Deduction System.

Further, ATM Card pawning has been noted by the Bangko Sentral ng Pilipinas (BSP) as a dangerous scheme, for it exposes borrowers to identity theft and unauthorized use of personal data possibly for unlawful activities.

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III

OTHER SUPPORT MECHANISMS UNDER RA NO. 11469

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1. CREDIT CARD PAYMENT HOLIDAY [SEC 4. (AA)] The Department of Finance (DOF) has issued the implementing rules and regulations (IRR) on Section 4 aa of the Bayanihan To Heal As One Act, in particular, the grant of an initial 30-day payment holiday for credit card holders for loans falling due within the enhanced community quarantine (ECQ) period, without incurring interest on interest or any additional charges and fees on the borrowers.

2. SUSPENSION OF FEES ON INTERBANK FUND TRANSFER AND ATM TRANSACTIONS (BSP MEMORANDUM NO. M-2020-031)

Through the collaborative efforts of the Philippine Payments Management, Inc. (PPMI), the BSFIs have initiated the suspension of PESONet and InstaPay fees for the duration of the expanded community quarantine (ECQ) period. The same unified action is strongly encouraged to be extended for the fees charged by BSFIs for other fund transfer services and interbank ATM transactions.

3. TAX-RELATED ISSUANCES [SEC. 4 (Z)] The Department of Finance (DOF) has issued Revenue Regulations (RR) No. 11-2020 further extending to June or July the deadlines on the filing or submission of necessary documents and/or payment of taxes required under the Tax Code of 1997, as amended. The extended deadlines include the filing and payment of the following: a. Annual income tax returns (ITRs) for individuals and corporations–June 14; b. Submission of required hard copies of audited financial statements and other attachments to the annual ITRs–June 30; c. Quarterly ITRs for individuals and corporations for the quarter ending March–June 14 and June 29, respectively; d. Monthly VAT returns for March and April–June 4 and June 19, respectively; e. Quarterly VAT returns for the quarter ending March–June 9; and f. Quarterly percentage tax return for the quarter ending March–June 9.

Likewise, the RR provides that the deadline for the filing of position papers, protest letters and other correspondences with due dates falling during the quarantine period shall be thirty (30) days from the lifting of the quarantine.

The running of the statute of limitations shall also be suspended during the said period.

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4. RESIDENTIAL RENT MORATORIUM [SEC. 4 (BB)] The Department of Trade and Industry (DTI) imposed a month-long moratorium on residential and commercial rent payment for small businesses in light of the COVID-19 crisis. In a memorandum dated April 4, the DTI said the 30-day grace period would be counted from the last due date that falls within the enhanced community quarantine (ECQ) of Luzon.

5. EXTENSION OF INSURANCE COVERAGE OR ISSUANCE

OF HOLD COVER (INSURANCE COMMISSION CIRCULAR LETTER NO. 2020-25 DATED MARCH 25, 2020)

For Insurance Policies or HMO Agreements about to expire during the effectivity of ECQ, the Insurance or HMO companies shall issue an extension coverage for such existing policies or agreements for at least thirty (30) days subject to the written request or consent, electronically or otherwise, of the insured, client, or their respective authorized representatives, as the case may be.

For Insurance Policies, Pre-Need Plans or HMO Agreements, which are the subject of new or renewal application or negotiation prior to or during the effectivity of the ECQ, the Insurance, Pre-Need and HMO companies may issue a hold cover or temporary cover for insurance, pre-need or HMO Agreement coverage for at least thirty (30) days.

Issuance of such hold cover or temporary cover shall be subject to written request or consent, electronically or otherwise, of the insured, plan holder, client, or their respective authorized representatives, as the case may be.

6. NON-COLLECTION OF PENALTIES, AND EXTENSION OF VALIDITY OF DRIVER’S LICENSES AND REGISTRATION (LTO MEMORANDUM DATED MARCH 13, 2020)

No penalties shall be collected for the late registration of motor vehicles and renewal of driver’s licenses, which shall expire during the duration of the community quarantine. The validity of all student permits shall be extended within the aforementioned duration for the purpose of applying for a driver’s license.

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7. PAYMENT EXTENSIONS INITIATED BY UTILITY COMPANIES: a. All Globe Postpaid (mobile and broadband) subscribers, including business and enterprise customers nationwide will be given a 30-day bill payment extension from the due date. b. A 30-day extension of water bill from the due date for all customers of Manila Water. c. All Meralco bills due March 1 to April 14 will be given a 30-day payment extension from their due date. At the same time, they have announced that they have postponed maintenance activities to ensure continuous electricity service. d. A 30-day payment extension period for all postpaid customers of PLDT Home, PLDT Enterprise, Smart and Sun Postpaid. e. All SKYcable subscribers will get a 30-day extension period for bill payment.

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