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Understanding Compensatory Overtime Credits

455879_w308In the seminar I attended earlier today about leave administration, some of the participants particularly wanted to know the difference between Compensatory Overtime Credits (COC) and Compensatory Time Off (CTO). As the topic is still to be covered by succeeding speakers, I opted not to explain the little that what I know about it. But, for the sake of my blog’s followers and e-mail subscribers who are slowly growing in number  (yeyyy!), I tried to simplify in this post the basic principles of COCs and CTOs . Read on.

History of COC

In 2004, then President Gloria Macapagal-Arroyo issued Administrative Order No. 103 directing the continued adoption of austerity measures in the government. She ordered national government agencies, state universities and colleges, government-owned and-controlled corporations, government financial institutions, other government corporate entities, its subsidiaries, and other instrumentalities under the Executive Department to implement specific austerity measures.

Pursuant to the Order, CSC and DBM issued Joint Circular No. 2, s. 2004, providing the policy on availing non-monetary remuneration – through CTOs – in lieu of overtime pay to government employees who are required to render services beyond the regular working hours. Some provisions of said circular was later on amended by Joint Circular 2-A, s. 2005.

What is COC & CTO?

COC refers to the accrued hours earned by an employee who works (with prior authority of agency head) beyond regular working hours or on weekends, holidays, or days-off without the benefit of overtime pay. CTO, on the other hand, is the non-monetary benefit given to employees with COCs. It refers to the number of hours/days the employee is allowed to absent from work with full pay and benefits. (4.0, JC)

Who may avail of COC?

All government employees under permanent, temporary and casual status, including contractual personnel whose employment is in the nature of a regular employee, except the following:

a) Those with ranks higher than division chief;

b) Career Executive Service position holders;

c) Elective officials; and

d) Military and uniformed personnel. (2.0 and 3.0, JC)

How is COC computed?

If the overtime is rendered on a workday –

COC = No. of OT hours rendered x 1.0 (5.4.1, JC)

If rendered on weekends, holidays or days-off –

COC = No. of OT hours rendered x 1.5 (5.4.2, JC)

How many hours of COC can an employee earn in a month?

An employee can only earn a maximum of 40 hours of COC per month,but the unused/unexpended balance of the employee can in no case exceed 120 hours. (5.5.1, JC)

Do COCs expire?

Yes. It must be consumed as CTO within one year from its issuance. Otherwise, the COCs are deemed forfeited. (Item 5.5.2)

Can earned COCs be used to offset undertime or tardiness?

No. Offsetting COCs for incurred undertime or tardiness is not allowed.

If an employee resigns/retires/separate from service, will he be paid the monetary equivalent of the COCs earned?

No, because COCs are non commutative and cannot be converted to cash. Also, COCs are not added to the regular leave credits of the employee and do not form part of the accumulated leave credits paid out to the employee. (5.6.2 – 5.6.3, JC)

If he is transferred/detailed/seconded, will he be able to transfer the COCs?

No. An employee who has transferred or has been detailed or seconded to another agency cannot transfer the COCs earned in the previous/mother agency to the new/receiving agency. (5.7.2, JC)

If an employee is promoted, will he be able to carry earned COCs to his new position?

It depends. If the position to which he is promoted to is a covered/qualified position, he will be able to carry the COCs he earned in his prior position. Otherwise, he cannot. (Item 5.7.3, JC)

If an employee only has 2 hours of COC, can he already avail of a CTO? 

No. CTOs can only be availed of in blocks of 4 or 8 hours – half or full day. (5.9.1, JC)

If an employee already has 80 hours of COCs, can he enjoy 10 days of continuous CTOs? 

No. An employee may only use his earned CTOs on a staggered basis or continuously up to a maximum of 5 consecutive days. (5.9.2, JC)

6 thoughts on “Understanding Compensatory Overtime Credits

  1. May I know if regular employees of a hospital owned by local government unit may avail such compensatory overtime credits? It is a hospital practice in the nursing service that their personnel are only entitled to avail a maximum of 10 days off within a month. In cases that there are holidays exceeding the number of purportedly days off to more than 10 days, still they have to avail only the 10-day maximum off of duty? In similar situation, can an employee avail the excess number of days rendered, to this compensatory overtime credits?
    Thank you and anticipating your reply.

  2. May i refer to you a government hospital owned by local government unit wherein it is a hospital practice for a long time in the nursing department that regular employees only avail a maximum of 10 days off in lieu of the Saturdays, Sundays and holidays. In some cases that holidays will result to the number of purportedly day off to more than 10 days, the maximum 10 days are only availed. Can this compensatory overtime credits be granted to these personnel having rendered in excess of duty? Thank you very much and anticipating your reply soon.

  3. Just want to asked, if an employee earned an overtime for 4 Saturdays & 3 Sundays from 4:00 AM – 12:00 noon & 1:00PM to 5:00 PM each Sat & Sun can we compute the actual earned hours? Or just credit the maximum 40 hours allowed for a month as stated in the CSC & DBM Joint Circular No. 2, s. 2004.

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