SOP Library

SOP NO: AO-2K3-12-027

Mission: Corporate Administration

Area: Human Resource (HR)

Activity: Personnel Benefits and Services (HR-PB)

Title: Guidelines on the Grant of Rice Allowance Differential to NFA Employees Hired After June
30, 1989

Date Approved/Issued: 12/22/2003

Date Effective:

Digest:

To provide the implementing rules and procedures that will guide the concerned
personnel in the grant of the rice allowance differential to NFA employees hired
after June 30, 1989.
 This shall cover the policies and procedures on the entitlement to the rice
allowance differential including its computation and payment.

1. Office of the Government Corporate Counsel (OGCC) Opinion No. 194

dated October 30, 2003.

2. Council Resolution No. 86-23K dated September 03, 2003 approving the
grant of rice allowance differential to entitled employees.

1. Entitlement

a. All NFA employees who were employed either on a permanent,

temporary or casual status from July 01, 1989 until March 31, 1999 and
who have complied with the requirement of rendering at least three (3)
months continuous service with the NFA shall be entitled to collect the rice
allowance differential.

b. Those who are entitled but have been separated from the service either
by resignation, retirement, transfer, or death can also collect their rice
allowance differential up to the time of their separation.

c. The period of entitlement for the rice allowance differential shall be from
July 1989 to July 14, 1999.

d. Employees whose services were terminated by reason of a final judgment

in an administrative or criminal case shall not be entitled to the rice
allowance differential.

2. Computation of Rice Differential

a. An employee’s rice allowance differential shall be computed based on the

number of bags that he is entitled to receive starting on the fourth month
from his/her entrance to duty up to July 14, 1999.

b. The computation shall take into consideration the existing provisions on

entitlement and forfeiture of rice allowance with respect to employee’s
attendance in a particular month as provided in SOP No. HR-PB04.B
issued on April 2, 1987 and made effective June 1, 1987 and SOP No.
 HR-PB30 issued on August 29, 1997 and made effective November 1,
1997.

The corresponding month/s of non-entitlement to rice allowance, if there

are any, should be excluded in the computation of the employee’s rice
allowance differential.

3. Mode of Payment

a. The rice allowance differential shall be granted in full.

b. Payment shall be made in the form of rice, with the same quality as the
monthly rice allowance being given to employees.

c. Payment shall be through the issuance of a rice allowance differential

payroll to be prepared by the Executive/Administrative Assistants for
Central Office employees and by the Regional/Provincial Administrative
Officers for Regional and Provincial Office employees. A corresponding
Acknowledgment Receipt (AR) shall be issued to the entitled employees
as evidence of his/her entitlement to the rice allowance differential.
Withdrawal of the rice allowance differential shall follow existing
procedures on withdrawal of the monthly rice allowance.

d. A separate rice allowance payroll for employees already separated from

the service shall be prepared after all the rice allowance differential
payrolls of employees who are still in the service have been processed.

e. The Rice allowance differential payroll shall indicate the following:

i. the list of employees entitled to the rice allowance differential with

their respective entrance to duty at the NFA;
ii. the employees’ rice allowance differential, in number of bags;
iii. the corresponding deductions, if any, computed in number of bags;
and
iv. the designated withdrawal warehouse

f. All rice allowance differential payroll shall be certified by the Head of

Office. It shall be supported by the following documents:

i. Service Record (SR) certified by the following:

HRMD, Dep’t. Manager - for CO/FO Executives, CO rank &

file
employees and for all separated
employees
 RM/PM - for FO rank and file employees

ii. Certificate of No Leave Without Pay certified by the following:

HRMD, DM - for CO/FO/Executives, RAOs, and CO

Executive Assistants

Department Head - for CO rank and file employees

RM - for PAOs and RO rank and file

employees

PM - for PO rank and file employees

iii. Certificate of No Pending Case

iv. Clearance from Financial Obligations

v. Authority to Deduct signed by the concerned employees.

vi. Deed of Undertaking executed by the concerned employees

authorizing the refund of the rice allowance differential in the event
that it is disallowed.

g. Arrearages incurred by employees in the payment of their loans and other

financial obligations with NFA including unliquidated cash advances, shall
be deducted from their rice allowance differential. For this purpose, the
deduction to be made shall be in an amount divisible by the rice
allowance valuation of Php 650.00 per bag to arrive at a whole number in
terms of number of bags for net differential. Any remaining arrearages
shall be deducted from the employee’s 40% differential and/or through
regular payroll deduction. To illustrate:

Employee A has an unliquidated TEV amounting to Php 8,200.00, the

number of bags to be deducted from his rice allowance differential shall
be as follows:

Deduction = Amount of arrears

(in bags) valuation of rice allowance

= Php8,200.00
Php 650.00/bag

= 12.61 bags
 = 12 bags

To arrive at a whole number of bags for net differential, only 12 bags shall
be deducted which is equivalent to Php 7,800.00 (12 bags x 650/bag).
The remaining Php 400.00 shall be deducted from Employee A through
regular payroll deduction or from his 40% differential.

h. Employees with arrearages may opt to pay the amount of their arrearages
in cash to the NFA Cashier/DTBFM if he/she wants to collect his/her rice
allowance differential in full. The employee shall present the Official
Receipt (OR) to his/her respective Administrative Assistants/Officers prior
to the preparation of the rice allowance payroll.

i. Cash Shortages as well as established/final stock shortages, as confirmed

by COA and net of TOLA, shall, likewise be deducted from the rice
allowance differential.

j. The Dept. For Marketing Operations (DMO), in coordination with NFA-

National Capital Region (NCR), shall identify the warehouse where the
rice allowance differential of Central Office employees shall be withdrawn.
For Field Office employees, the withdrawal warehouse shall be identified
by their respective Regional/Provincial Managers.