MALACAÑANG

MANILA

MEMORANDUM ORDER NO. 89

PAYMENT OF SEPARATION PAY OF OFFICIALS AND EMPLOYEES OF THE DEFUNCT OFFICE OF THE PRIME MINISTER.

WHEREAS, the Office of the Prime Minister was abolished pursuant to Proclamation No. 3, dated March 25, 1986;

WHEREAS, a number of its employees who were phased-out, as a result of such abolition, are not yet eligible for retirement; and

WHEREAS, these non-retirable officials and employees are otherwise entitled to separation pay;

Accordingly, it is hereby clarified that, in accordance with Section 3 of Article III of Proclamation No. 3 and Section 16 of Article XVIII of the 1987 Constitution, all the officials and employees of the defunct Office of the Prime Minister, who were separated from the government services but who are not entitled to or eligible for retirement under existing laws, shall be granted a separation pay at a rate equivalent to one month’s salary for every year of continuous satisfactory service rendered or the equivalent nearest fraction thereof favorable to them on the basis of the highest salary received which in no case shall exceed a total of 12 months salary.

The determination and computation of services that should be included in the creditable services of the recipient shall be subject to the provisions of Executive Order No. 966, series of 1984.

The amount necessary to pay the required separation pay shall be charged against the savings of the defunct Office of the Prime Minister pursuant to Section 55 of Presidential Decree No. 1177.

The Department of Budget and Management is directed to implement this Order.

This Order shall take effect immediately.

By authority of the President:

(Sgd.) JOKER P. ARROYO

Executive Secretary

Manila, June 8, 1987

Source: CDAsia