Honoraria of BAC Members, Secretariat and TWG

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Honoraria of BAC Members, Secretariat and TWG

Post by venom.0420 on Fri Feb 13, 2009 6:09 pm

In section 15 of RA 9184, the law allows the payment of Honararia to BAC members and DBM Circular No. 2004-5A sets the detailed guidelines in such grant. Simply put, RA 9184 grants honararia to the members of the BAC with a ceiling of 25% of their monthly basic salary while DBM set a rate of Php 3,000.00, Php 2,500.00 and Php 2,000.00 to BAC Chairman, members, secretariat and TWG chair and members respectively.

Using these information, if a government employee earns Php 20,000.00 a month, it means that he/she can only receive a maximum of Php 5,000.00 a month as honorarium for being a member of the BAC. This will hold true whenever their procuring entity bidded and completed at least two (2) projects. Needless to say, wether the procuring entity bidded and completed three (3) or more projects, the members of the BAC, secretariat and TWG shall still receive the maximum amount of honoraria set by RA 9184.

In my opinion, the law underestimated the time and work needed to successfully bid and complete a particular project. The law, still in my opinion, also underestimated the number of projects a government agency or any government instrumentality process in a period of one month. In reality, almost all government units process more than three (3) projects, whether supply of goods, infrastructure or consultancy. For these reasons, I think, the maximum amount of honoraria that members of the BAC, TWG and secretariat of twenty-five percent (25%) of their basic salary is in fact, very low, considering the time, effort and risks that these government personnel assume once they become part of the procuring process.

Hence, an amendment of section 15 of RA 9184, I think, is necessary.
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Re: Honoraria of BAC Members, Secretariat and TWG

Post by engrjhez® on Wed Feb 18, 2009 10:45 pm

I would sympathize with you as to complexity and tediousness of BAC [Secretariat] functions. In fact, I would as much as like to increase the compensation myself - but later realize not to anymore.

The 25% limit set by law is fair enough to the most general extent.

First of all, we are working as government employees - public servants. To be called such, we must work in the smallest compensation for a maximum output. We optimize government resources. We are required to live modest lives. We serve and deliver services to the least expense of the taxpayers. Unsung martyrs in the modern days. To my opinion, the honoraria must remain as a privilege, rather than a compensation. A true public servant measures the results of his/her actions for the government and not what the government can offer.

This calls on the strategies to simplify procurement. If you are bidding similar projects within the year, and the number of biddings exceed your fingers every month, then SIMPLIFY. Consolidate them into fewer biddings. I need not elaborate the details but i hope you are enlightened as to the nature of OUR work.
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Honoraria of BAC Members, Secretariat and TWG

Post by venom.0420 on Fri Feb 20, 2009 11:09 am

sad but true.. Sad
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Re: Honoraria of BAC Members, Secretariat and TWG

Post by engrjhez® on Sat Feb 21, 2009 12:36 am

Question is that an affirmation?Question

peace!
afro
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Re: Honoraria of BAC Members, Secretariat and TWG

Post by shobe on Thu Mar 19, 2009 4:53 pm

Hi venom, although i am not a government employee, it is my humble opinion that the 25% cap provided under Section 15 is more than enough for the grant of honoraria. I think the problem lies in the thresholds set by the DBM in the aforementioned circular. May i suggest that this concern be forwarded to Organization, Position Classification and Compensation Bureau (OPCCB) of the Department of Budget and Management.
Idea
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Re: Honoraria of BAC Members, Secretariat and TWG

Post by RDV @ GP3i on Thu Mar 19, 2009 5:11 pm

shobe wrote:
Hi venom, although i am not a government employee, it is my humble opinion that the 25% cap provided under Section 15 is more than enough for the grant of honoraria. I think the problem lies in the thresholds set by the DBM in the aforementioned circular. May i suggest that this concern be forwarded to Organization, Position Classification and Compensation Bureau (OPCCB) of the Department of Budget and Management.
Idea

Are you proposing to lower the threshold so the 25% cap is not exceeded after two (2) successfully completed biddings? It is even less fair.

You have to take the average over a 1-year period when you compute the 25% cap. There are months that a procuring entity may have more than 2 successfully completed procurement projects. In other months, there may be none. They could get their honoraria in some months even if it already exceeds the 25% cap because in other months where there are no successfully completed procurement project, they will just even out. Just make sure that over the 1-year period, the cap is not exceeded as it is the limit set by the law.

Of course, one solution that would not require amending the law and would be welcome by everybody is the grant of a salary increase, which may start to happen this July. With a higher salary, and the honoraria rate remains, the cap, in monetary terms, also increases. Very Happy
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Re: Honoraria of BAC Members, Secretariat and TWG

Post by shobe on Thu Mar 19, 2009 5:44 pm

Just a clarification Sir RDV, i am not proposing that the 25% cap be decreased. I might get killed po by procurement officers. Sad

PS
I think the increase in salary of government employees would be the best solution! Wink
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Re: Honoraria of BAC Members, Secretariat and TWG

Post by engrjhez® on Thu Mar 19, 2009 5:58 pm

shobe wrote:Just a clarification Sir RDV, i am not proposing that the 25% cap be decreased. I might get killed po by procurement officers. Sad

PS
I think the increase in salary of government employees would be the best solution! Wink
What Shobe might want to emphasize is that if it we really are public servants, the 25% is more than enough - and I dearly agree.

Athough at some point, the honoraria is encouraging, the very essence of efficiency and economy might not be attained for the purpose. I see a lot of employees consuming not more than 3 hours (average) a day in solid work and performance. While some get their head down, others are just fooling around.

I also need honoraria to justify my hardwork. But for me, I can waive my right for it - provided, I SEE THE HARD WORK ON EVERYONE ELSE. Twisted Evil
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Re: Honoraria of BAC Members, Secretariat and TWG

Post by riddler on Fri Mar 20, 2009 8:37 am

I completely agree with venom to increase the honoraria of the BAC-TWG-Secretariat. You know why guys? 30% of the Honoraria that The BAC received (in our case) goes to our withholding tax because our gross income including honorarium has exceeded another BIR income bracket. Death through taxes! (Hey, BIR can you exempt this?)It should be considered that the responsibilty and accountabilty of the procurement process rests upon the shoulders of these people.

The duties of the BAC practically eats up the function of a Department Head considering the fact that volumes after volumes, piles after piles of procurement
related papers are being served at the table of the Department head (BAC Member) everyday. Imagine, you have to make almost seven initials per one transaction alone.
its really very tiring, but it's our duty.


Last edited by tianchon,ruel on Fri Mar 20, 2009 11:04 am; edited 1 time in total
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Re: Honoraria of BAC Members, Secretariat and TWG

Post by engrjhez® on Fri Mar 20, 2009 10:57 am

tianchon,ruel wrote:I completely agree with venom to increase the honoraria of the BAC-TWG-Secretariat. You know why guys? 30% of the Honoraria that The BAC received (in our case) goes to our withholding tax because our gross income including honorarium has exceeded another BIR bracket. Death through taxes! (Hey, BIR can you exempt this?)It should be considered that the responsibilty and accountabilty of the procurement process rests upon the shoulders of these people.
I am not familiar with taxation (even on Income Taxes). Can someone give me an idea on this, because as i know, Honoraria, just like Cash Gifts/Allowance, are not subject to any tax [?]. I hope to get promoted soon so I'll know (and feel) the yearning too. Cool
tianchon,ruel wrote:The duties of the BAC practically eats up the function of a Department Head considering the fact that volumes after volumes, piles after piles of procurement related papers are being served at the table of the Department head (BAC Member) everyday. Imagine, you have to make almost seven initials per one transaction alone. its really very tiring, but it's our duty.
I agree. But just as the same, we are still government (public) officials. We are here to serve Razz. The root of problem may be traced to the fact that all of these (RA.9184) was formulated (and calibrated) to the national level. Consultations from the LGU were done after the law has already been enacted. In the national level, (i think) the average bidding per month does not exceed three (3) items because of the very constrained scope of their procurement. (see the explanation of Engr.Ruel at this link http://gppb.topicsolutions.net/alternative-methods-of-procurement-f9/authority-to-draw-cash-advance-t84.htm).
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on "BAC, BAC Secretariat and TWG Members Honoraria"

Post by venom.0420 on Sat Mar 21, 2009 2:59 pm

hahahaha...i didn't realize til now that this post still alive. i tot me and sir engrjhez have already resolved this. Laughing

to sir shobe:

First, it's gud that u clear ur stand on the 25% cap, otherwise, i'll hunt u down myself. (kiddin')lol!
Second, here's how we work. We have a regular bidding schedule every tuesday and thursday of every week. A minimum of two and a maximum of eight projects every bidding schedule. After the bidding all qualified bidders will be subjected to post-qualification where all submitted documents will be verified for veracity. If it's a new supplier, and the ABC is reasonably substantial, post-qualification warrants a visit to it's official address to see whether it's office, equipments, warehouse or manufacturing plant really exist. These doesn't include the activities involved in the pre-procurement, pre-bid and the issuance of the respective notices to bidders. Speaking from my own experience, we are usually processing a minimum of 16 to a maximum of 64 projects a month. From the pre-procurement, posting of IAEB, pre-bid, opening of bids, post-qualification up to the issuance of award/disqualification notice. It's a very tedious and a very risky work to be performed by a small group of individuals, who at the end of each procurement activity, needs to go back to their respective sections and perform the regular day-to-day function assigned them. Which means overtime is inevitable. The truth of the matter is if i'd be given a choice, i'd rather be paid for overtime and not for honoraria. I'll be receiving much more if that's the case.

However, sir engrjhez have describe our case perfectly in his previous post when he said that honoraria must remain a privilege and not as compensation. So, as u can see, we are overworked and underpaid individuals who despite of that continues to do so because after all, we are public servants. Very Happy
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on "BAC, BAC Secretariat and TWG Members Honoraria"

Post by venom.0420 on Sat Mar 21, 2009 4:07 pm

To Sir Ruel:

Taxation exists in a simple premise, "the more income you earn, the more taxes u'll incur". It's directly proportional to our income levels. The highest tax rate for individuals and corporate entity is 32%, the fact that you're honoraria is being taxed by 30%, it only reveals that ur earning Php 500,000 a year at the most. Very Happy I believe it it our congressmen that we should address the issue because they are the authors of our present Tax Code. For now, I guess, we just have to enjoy the infrastructures and other services provided by our government that were financed thru our taxes. But I agree with ur post. Very Happy

To Sir Engrjhez:

All income received whether cash or non-cash are subject to income tax as stated under section 24 of our tax code (check this url- http://www.bir.gov.ph/taxcode/1577.htm). To determine our tax rates and tax due at the end of the year, compute first your "taxable income" by subtracting from your total income for the year (salary, overtime, nsd, honoraria, bonuses and allowances) a non-taxable amount of Php 30,000, your personal exemptions of Php 50,000 and additional exemptions for dependents if any (Php 25,000 each, maximum of four). Once you determine how much is ur taxable income, u have to refer to our tax table to determine what income bracket u r in and from there u will be able to know how much is ur tax due.

Hope this helps. Very Happy
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Re: Honoraria of BAC Members, Secretariat and TWG

Post by riddler on Sat Mar 21, 2009 6:08 pm

venom.0420 wrote:
..... The truth of the matter is if i'd be given a choice, i'd rather be paid for overtime and not for honoraria. I'll be receiving much more if that's the case.

Ha ha ha... I would rather get out as a BAC member rather than, receiving a 100% salary cap honorarium. Honestly, it has become a nightmare for me. Crying or Very sad

venom wrote;

......Taxation exists in a simple premise, "the more income you earn, the more taxes u'll incur". It's directly proportional to our income levels. The highest tax rate for individuals and corporate entity is 32%, the fact that you're honoraria is being taxed by 30%, it only reveals that ur earning Php 500,000 a year at the most.

pREPOSTEROUS! I am not earning that much, ano? i really don't know how our Accountant computed my "with holding tax", but i am pretty sure that she is guided by a DOF/DBM/BIR circulars. So, bow na lang ako. Ha ha ha.. anyway nice to hear from you. Very Happy
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Re: Honoraria of BAC Members, Secretariat and TWG

Post by djcs-phic on Tue Apr 14, 2009 5:13 pm

I really empathize with all the BAC and TWG members for being so diligent and dedicated towards their work when it comes to bidding processes are concerned.
Not to mention that this is a 'jury duty' type of workload. Shocked

If I rightly followed the flow of posts, is the 25% of monthly salary cap for the recipient's basic monthly salary only applies to projects completed in a month?
Meaning, that even if the total honorarium received by a member of the BAC or TWG exceeds their 25% basic salary.

Sample:

@ 30,000.00 basic salary
25% of which is 7,500

If I am a BAC member and I have 2 project AT MOST per month (meaning, I will be receiving 5,000 (exclusive of tax) per month)) and I had a total of 20 completed bidding projects, I will be receiving a total of 50,000 (exclusive of tax).

@ 20 total projects per year, I would then receive 50,000 which is way above my basic salary.

In such case, am I violating some rules and regulations??
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Re: Honoraria of BAC Members, Secretariat and TWG

Post by engrjhez® on Tue Apr 14, 2009 7:28 pm

djcs-phic,

Welcome to the Forum!

In your question, we have to gauge the salaries at the same base point. Your 30,000 basic monthly salary is actually 30,000x12 = 360,000 yearly right? If you have received 50,000 for 20 completed procurements in a year, you are still way below the 25%cap (which is 360,000x0.25 = 90,000). To clarify further, the 25% cap is actually referring to the average for the entire year (in case there are increases in salary/wages).

But then, BIR rules apply (as to Engr. Ruel's story).
Very Happy
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Re: Honoraria of BAC Members, Secretariat and TWG

Post by djcs-phic on Wed Apr 15, 2009 2:29 pm

Gud pm Engr. Jhez

Thank you very much for the clarificatory post. Wink

Initially, I was a bit baffled if the total was referring to the monthly basic with that of the annual basic of a BAC/TWG member.
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Re: Honoraria of BAC Members, Secretariat and TWG

Post by engrjhez® on Wed Apr 15, 2009 3:34 pm

djcs-phic wrote:Gud pm Engr. Jhez

Thank you very much for the clarificatory post. Wink

Initially, I was a bit baffled if the total was referring to the monthly basic with that of the annual basic of a BAC/TWG member.
No problem. You are welcomed.
cheers
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Re: Honoraria of BAC Members, Secretariat and TWG

Post by ma.vina on Fri May 29, 2009 1:06 pm

whether 25% or more is not applicable to us. we are not attracting bidders due to the high cost of our bidding documents which make it unattractive to bidders. this is done primarily to discourage bidders and after two failures we either go shopping or negotiated procurement or force account implementation. either way, it is the dummy business front of our local chief executive that benefits because the procurement of projects or supplies would almost always go to the dummy. nobody here is brave enough to confront the LCE.
and since the honoraria must be taken from the income from the bidding documents, then, this honoraria thing is an impossible dream for us.
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Re: Honoraria of BAC Members, Secretariat and TWG

Post by engrjhez® on Sun May 31, 2009 2:32 pm

ma.vina wrote:whether 25% or more is not applicable to us. we are not attracting bidders due to the high cost of our bidding documents which make it unattractive to bidders. this is done primarily to discourage bidders and after two failures we either go shopping or negotiated procurement or force account implementation. either way, it is the dummy business front of our local chief executive that benefits because the procurement of projects or supplies would almost always go to the dummy. nobody here is brave enough to confront the LCE.
and since the honoraria must be taken from the income from the bidding documents, then, this honoraria thing is an impossible dream for us.
Sad to hear a story like that. I am amazed you did not mention the intercession of COA. There must be an Audit Observation Memo after a year of such practice. Can you share with us how high is the Bid Docs fee for academic purposes? cherry
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Re: Honoraria of BAC Members, Secretariat and TWG

Post by engrjhez® on Mon Jun 01, 2009 9:20 pm

ma.vina wrote:...
and since the honoraria must be taken from the income from the bidding documents, then, this honoraria thing is an impossible dream for us.
I forgot to mention the provisions of DBM Circular 2007-3 wherein you can source out honoraria from LGU savings. The process of Negotiated Procurement that resulted from two (2) failed biddings may be considered for the grant of honoraria.

See a similar discussion of the underlined topic here.
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Re: Honoraria of BAC Members, Secretariat and TWG

Post by simpledjoy on Thu Nov 06, 2014 3:46 pm

Good day! We just want to ask if it is possible for the Head of the Procurement Unit to be designated as BAC Chairman? If so, will he be entitled to receive honoraria? Thanks!

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Re: Honoraria of BAC Members, Secretariat and TWG

Post by Jovinal on Sat Nov 08, 2014 9:36 am

NO

The following officers of the Procuring Entity are disqualified from
membership in the BAC:

•the Head of the Bureau / Regional Office / Decentralized Unit;
•the official who approves procurement transactions;
•the Chief Accountant / Head of the Accounting Unit and
his/her staff, unless the Accounting Department is the end-
user unit, in which case the Chief Accountant, Head of the
Accounting Department or his/her staff may be designated as
an end-user member
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Re: Honoraria of BAC Members, Secretariat and TWG

Post by bethskie on Tue Jan 17, 2017 8:25 am

Good day!

In cases of deficiency in collection from sources identified in item 6.1 of BC No. 2004-5A, the amount of honoraria and OT pay shall be adjusted proportionately for all those entitled. May i ask if there is a certain computation or percentage to consider in computing the proportionate amount for those entitled?

thank you

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