BAC Honorarium

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BAC Honorarium

Post by pjdelosreyes on Tue Aug 04, 2015 9:50 am

Hi.

I want to clarify the Section 5.4 of the Budget Circular 2004-5A which states:

"The average amount of honoraria per month over one year 'shall not exceed
twenty five percent (25%) of the basic monthly salary. The honoraria,
however, shall be paid only upon the successful completion of each
procurement."

1. How do you compute the "average amount of honoraria per month over one year"? Do I have to wait for December to come up with that amount?

2. Maximum rates are given in Section 5.3. It is also stated in the Circular that the basis of honorarium is the number of successfully completed procurement project/s or in short, the number of Notice of Awards (which is dated).

Given: there are 30 NOA issued in January and no NOA issued in February and March, the honorarium of a BAC Chairman (w/ monthly salary of 35,000) in January to March will be?

 Solution A:
 January
     30x3,000=90,000
     35,000x25%=8,750 (limit)
 February
     0x3,000=0  
 March
     0x3,000=0   Therefore, BAC Chairman will receive 8,750 in January and nothing in February and March since there are no NOA issued in those months.

 Solution B:
 January
     30x3,000=90,000
     35,000x25%=8,750 (limit)
 February
     0x3,000=0
     35,000x25%=8,750 (limit)
 March
     0x3,000=0
     35,000x25%=8,750 (limit)  Therefore, BAC Chairman will receive 8,750 each for the months Jan to Mar, because there is an excess honorarium in January and can be carried over the next months until it is fully utilized.

 NOW, which one is correct?

Thanks.

pjdelosreyes
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