I. REPUBLIC ACT NO.

7305
THE MAGNA CARTA OF PUBLIC HEALTH WORKERS
The State shall instill health consciousness among our people to
effectively carry out the health programs and projects of the government
essential for the growth and health of the nation. Towards this end, this Act
wishes:

to promote and improve the social and economic well-

being of the health workers, their living and working conditions and
terms of employment;

to develop their skills and capabilities in order that they

will be more responsive and better equipped to deliver health projects
and programs; and

to encourage those with proper qualifications and excellent

abilities to join and remain in government service.
RECRUITMENT

AND

QUALIFICATION

Recruitment policy and minimum requirements with respect to the

selection and appointment of a public health worker shall be developed and
implemented by the appropriate government agencies concerned in
accordance with policies and standards of the Civil Service Commission:
Performance evaluation and merit promotion
TRANSFER

GEOGRAPHICAL

OF

REASSIGNMENT

OF

PUBLIC

HEALTH

WORKERS.

a transfer is a movement from one position to

another which is of equivalent rank, level or salary

without break in service

a geographical reassignment, hereinafter referred to
as

reassignment

is

movement

from

one

geographical location to another; and

a public health worker shall not be transferred and/or
reassigned, except when made in the interest of
public

service,

in

which

case,

the

employee

concerned shall be informed of the reasons therefore

in writing.
MARRIED PUBLIC HEALTH WORKERS. the proper authorities shall take
steps to enable married couples, both of whom are public health workers, to
be employed or assigned in the same municipality, but not in the same
office.
SECURITY

OF

TENURE

AND DISCRIMINATION

Public Health Workers who are regularly employed under

permanent status shall have security of tenure and shall not
be terminated or dismissed except for cause provided by
law and after due process.

STAFFING

AND WORKLOAD

Each Agency shall conduct periodic reviews of the

personnel complement of its health and health
-related establishments to determine the adequacy
of staffing pattern and work load of each public

health worker.
shall set standard staffing pattern for health and
health related establishment.

Administrative Discipline

No administrative charges shall be filed against a Public

Health Worker unless an existing prima facie evidence is
established

in

the

preliminaryinvestigation/hearing.

Administrative charges shall be made known to him/her and

heard by the committee created for the purpose.
DUTIES

AND

OBLIGATIONS

discharge his/her duty humanely with conscience

and dignity;
perform his/her duty with utmost respect for life;
and

exercise his/her functions without consideration to

race, gender, religion, nationality, party politics,
social standing or capacity to pay.

COMPENSATION, BENEFITS and Privileges

Salaries. the provisions of Republic Act No. 6758 shall govern, except
that the benchmark for Rural Health Physicians shall be upgraded to Grade
24.

Salary Scale Salary scales of public health workers shall

be provided progression:
o
that the progression from the minimum to maximum of the
salary scale shall not extend over a period of ten (10) years
o
that the efficiency rating of the public health worker
concerned is at least satisfactory.

Worker is an officer or member; and b) premiums properly

due all insurance policies, retirement and medicare shall be considered
deductible.
Hazard Allowance. Public health workers in hospitals and other
health-related establishments located in difficult areas, strife-torn
or embattled areas,and the like for the duration which expose
them

to

great

activity/eruption,

danger,

contagion,

occupational

risks

radiation,

or

perils

to

volcanic
life

as

determined by the Secretary of Health or the Head of the unit

with

the

approval

of

the

Secretary

of

Health,

shall

be

compensated hazard allowances equivalent to at least twentyfive percent (25%) of the monthly basic salary of health workers
receiving salary grade 19 and below, and five percent (5%) for
health workers with salary grade 20 and above.
Subsistence Allowance.

Subsistence allowance shall be implemented at not less than PhP

50.00 per day or PhP1,500 per month as certified by Head of
Agency.

Non-health agency workers detailed in health and health-related

institutions /establishments are entitled to subsistence allowance

and shall be funded by theagency where service is rendered.

Subsistence allowance of public health workers on full-time and
part-timedetailed in other agency shall be paid by the agency

where service is rendered.

Part-time public health workers / consultants are entitled to onehalf (1/2) of theprescribed rates received by full-time public
health workers

II. Presidential decree No. 442 (The Labor Code of the Philippines)
A decree instituting a labor code thereby revising and consolidating
labor and social laws to afford protection to labor, promote employment and
human resources development and insure industrial peace based on social
justice
All employees in all establishments and undertakings whether for profit
or not are entitled to overtime pay for work rendered beyond eight (8) hours.
But this does not apply to managerial employees, field personnel, members
of the family of the employer who are dependent on him for support,
domestic helpers, persons in the personal service of another, and workers
who are paid by results. Employees in the government are also entitled to
overtime pay but they are governed by Civil Service laws and rules. Only
employees in the private sector are covered by the Labor Code.
1. Hours of work
a. shall not exceed eight (8) hours a day
b. Health personnel in cities and municipalities with population
of 1 Million

Hospitals and clinics with bed capacity of at least 100 will have 8
hours a day for 5 days a week. Exclusive of time for meals (except
where exigencies of service require 48 hours or 6 days a week)
Additional of 30% of regular wage for work on the 6th day for health
professionals include resident physicians, nurses, nutritionists,
dietitians, pharmacists, social workers, lab technicians, paramedical
technicians, psychologists, midwives and other hospital or clinical
personnel

2. Overtime Pay Rates.

Overtime pay rates depend upon the day the work is performed,
whether it is ordinary working day, special day, holiday or rest day.
For ordinary working day, an additional compensation equivalent
to his regular hourly rate plus at least 25% thereof.
For holiday, special day and rest day, an additional compensation
equivalent to the rate for the first eight hours on a holiday or rest day
plus at least 30% thereof.

3. Emergency Overtime Work.

As a general rule, employees may not be compelled to work in
excess of eight hours or to render overtime work on any given day
against his will.
The exception to this rule is found in Artile 89 of the Labor Code. Under
the said article, employees may be compelled to perform overtime
work in any of the following cases:
1.

When the country is at war or

under any national or local emergency;

2.

When overtime work is necessary

to prevent loss of life or property, or in case of imminent
danger to public safety;

3.

When there is urgent work to be

performed on machines, etc., in order to avoid serious loss
or damage to the employer;

4.

When the work is necessary to

prevent loss or damage to perishable goods;

5.

When

the

completion

or

continuation of work is necessary to prevent serious

obstruction or prejudice to the business; or
6.

When overtime work is necessary

to avail of favorable weather or environmental conditions.

4. Meal periods
The employer must give his employees not less than 60 minutes
or one hour time-off for their meals. This period in noncompensable,
which means that it is not to be included in the computation of hours
worked. For example, if an employees work is from 8:00am to 5:00
with one hour meal break from 12:00nn to 1:00pm, the total
compensable hours of the employee is 8 hours, i.e., from 8:00am
12:00nn and 1:00pm 5:pm. The period from 12:00nn to 1:00pm is
noncompensable.
5. Weekly rest day
It is the required rest period of not less than 24 consecutive
hours after every six normal workdays. The employer shall determine
the

weekly

restday.

However,

the

employer

shall

respect

preference of employees as to their weekly restday when

the
such

preference is based on religious grounds. The compensation is the

regular wage unless Sunday happens to be the rest day of the

employee. If Sunday is the rest day, the employee shall be entitled to

the additional 30% pay.

6. Holidays, Service Incentive Leaves And Service Charges

Under the Code, work on a holiday shall be compensated at twice
the employee's regular rate. Ten days paid holidays are provided and
a five-day service incentive leave is given to any worker who has
rendered at least one year of service, with some exceptions. The
service charges paid in hotels, restaurants and similar establishments
are apportioned among the employees and management at 85 per
cent and 15 per cent respectively.

7. Security of tenure
The guarantee of security of tenure under the Constitution
means that an employee cannot be dismissed from the service for
causes other than those provided by law and only after due process is
accorded the employee. No less than the Constitution recognizes and
guarantees the labors right to security of tenure. Under the Labor
Code of the Philippines, as amended, specifically, Article 279 of the
said Code, the security of tenure has been construed to mean as that
the employer shall not terminate the services of an employee except
for a just cause or when authorized by the Code.

8. Rules on regular and casual employment.

(a) The provisions of written agreements to the contrary

notwithstanding and regardless of the oral agreements of the parties,
anemployment shall be considered to be regular employment for
purposes of Book VI of the Labor Code where the employee has been
engaged to perform activities which are usually necessary or desirable
in the usual business or trade of the employer except where the
employment has been fixed for a specific project or undertaking the
completion or termination of which has been determined at the time of
the engagement of the employee or where the work or service to be
performed is seasonal in nature and the employment is for the duration
of the season.
(b) Employment shall be deemed as casual in nature if it is not
covered by the preceding paragraph; Provided, That any employee
who has rendered at least one year of service, whether such service is
continuous or not, shall be considered a regular employee with respect
to the activity in which he is employed and his employment shall
continue while such activity exists.
(c) An employee who is allowed to work after a probationary
period shall be considered a regular employee.

9. Probationary employment
Probationary employment shall not exceed six (6) months from
the date the employee started working, unless it is covered by an
apprenticeship agreement stipulating a longer period. The services of
an employee who has been engaged on a probationary basis may be
terminated for a just cause or when he fails to qualify as a regular
employee in accordance with reasonable standards made known by

the employer to the employee at the time of his engagement. An

employee who is allowed to work after a probationary period shall be
considered a regular employee.

10.

Termination by employer
Terminating an employee in the Philippines is taken VERY

seriously and can be a complex process, especially after the employee

is regularized.

The Philippine Constitution says, no involuntary

servitude in any form shall exist except as punishment for a crime

whereof the party shall have been duly convicted. In view of the
prohibition on involuntary servitude, an employee is given the right to
resign under art.
III. Budget

A budget is a systematic plan for the utilization of manpower and

material resources. It is a detailed plan of operations that is predetermined
for a particular period. Budgets are quantitative or financial statements
prepared for the purpose of attaining a particular objective.
Benefits

It brings about efficiency and improvement in the working of the

organization.
It is a way of communicating the plans to various units of the
organization.
It is a way of motivating managers to achieve the goals set for the
units.
It serves as a benchmark for controlling on-going operations.
It helps in reducing wastage and losses by revealing them in time for
corrective action.

It serves as a basis for evaluating the performance of managers.

It serves as a means of educating the managers.
Types Of Budgets
1. Sales Budget

A sales budget shows expected sales in units at their expected

selling prices
The sales budget is prepared by multiplying the expected unit
sales volume for each product by its anticipated unit selling price.
The sales budget is an estimate of future sales, often broken
down into both units and money currency. It is used to create company
sales goals.

A firm prepares the sales budget for a period based on the

forecasted sales level, production capacity for the budget period, and
long-term plan and short-term goal of the firm
A sales budget is the cornerstone of budget preparation because
a firm can complete the plan for other activities only after it identifies
the expected sales level
2. Production Budget
A firm prepares a production budget after determining the number of
units that it expects to sell
It is a plan for acquiring the resources needed to carry out the
manufacturing operations
The total number of units to be produced depends on the budgeted
sales, the desired units of finished goods ending inventory, and the units of
finished goods beginning inventory.
It is derived from the budgeted sales units (per sales budget) plus the
desired ending finished goods less the beginning finished goods units.

Product oriented companies create a production budget which

estimates the number of units that must be manufactured to meet the
sales goals. The production budget also estimates the various costs
involved with manufacturing those units, including labor and material.

3. Direct Labour Budget

To prepare the direct labor budget, a company would use its

production budget
The direct labor budget enables the personnel department to
plan for hiring and repositioning of employees
A good labor budget helps the firm to avoid emergency hiring,
prevent labor shortages, and reduce or eliminate the need to lay off
workers
Firms usually prepare labor budget for each type of labors. For
example, for each skill requirement.
IV. There are three common budgeting methods:

Top-down Budgeting

Bottom-up Budgeting

Iterative Budgeting

1. Top Down Budgeting

Top-Down Budgeting is the term given to a budgeting process
based on estimating the cost of higher level tasks first and using these
estimates to constrain the estimates for lower level tasks

A crucial factor for successfully implementing this method for

estimating budgets is the experience and judgement of those involved
in producing the overall budget estimate.
Organisations need the ability to allow:

Financial Managers to establish centralised budgets to

control organisation spending.

Project

Managers

to

establish

projects

budgets

that

consume the centralised organisation budget and control

project spending.

Takes less time

Promotes upper-level commitment

Involves no multilevel participation

Lower

management

better

understands

what

upper

management expects

Presented down the ladder

Disadvantages
Translating long-range budgets into short-range budgets.
Problems scheduling projects in a "sub-optimal way" to meet the
strategic goals
Result of top management's limited knowledge of specifics of
project tasks and activities
Competition for funds among lower-level managers, try to secure
adequate funding for their operations.
May cause unhealthy competition.
This process is a zero sum game--one person's or area's gain is
another's loss.
Subordinate managers often feel that they have insufficient budget
allocations to achieve the objectives
Advantages
Aggregate budget is quite accurate, even though some individual
activities subject to large error

Budgets are stable as a percent of total allocation and the statistical

distribution of the budget is also stable leading to high predictability
Small costly tasks dont need to be identified early in this process factored into overall estimate

2. Bottom Up Budgeting
Sometimes called Zero Based Budgeting
Bottom-up budgeting begins with identifying all the constituent
tasks that are involved in implementing a project and working out the
resources and funding required by each
Provides the opportunity to create organisation level

budgets

by rolling up project budgets

Create centralised project level budgets from their sub-project
budgets (WBS)
This method of budgeting provides the following benefits:

Project Managers have the flexibility to define their project

budgets independently

Financial Managers have the ability to centrally review the

total project budget/s

Disadvantage
Top management has limited influence over the budgeting
process,
Individual tend to overstate their resource needs because
they suspect that higher management will probably cut all budgets
by the same percentage
More persuasive managers sometimes get a disproportionate
share of resources
A significant portion of budget building is in the hands of the
junior personnel in the organisation
Sometimes critical activities are missed and left unbudgeted

Advantage
Is in the accuracy of the budgets for individual tasks
Clear flow of information
Use of detailed data available at project management level as
basic

source

of

cost,

schedule,

and

resource

requirement

information.
Participation

in

the

process

leads

to

ownership

and

acceptance
3. Iterative Budgeting
Iterative to repeat or do again. It is a combination of top-down
and bottom-up

budget building, Higher project level estimated (top

down) , Lower level costed (bottom up) where the two costs negotiated
and reconciled.
Disadvantage
Is in the relative inefficiency and time consuming nature of
the negotiations over the budgets.
Process may not work well when communication channels are
either informal or blocked between lower-level managers and senior
management
Advantage
It promotes employee involvement and stimulates a high
degree of information flow between those involved in the project at
different levels
Both senior management and lower level managers closer to
the actual process participate in the budgeting process