Rules and Regulations on the Grant of Compensation Adjustments to National Government Personnel Pursuant to Executive Order No. 719

July 10, 2008 BIR MEMORANDUM TO : All Revenue Officials and Employees Concerned SUBJECT : Rules and Regulations on the Grant of Compensation Adjustments to National Government Personnel Pursuant to Executive Order No. 719 For the information and guidance of all concerned, please disseminate in all Bureau Offices the attached copy of DBM National Budget Circular No. 516 dated June 20, 2008 signed by Secretary Rolando G. Andaya, Jr. together with the annexes, circularizing the rules and regulations on the grant of compensation adjustments to National Government Personnel pursuant to Executive Order No. 719 dated May 1, 2008. You are enjoined to post the copy of this issuance in your Office Bulletin Board, or in a conspicuous place within your Office, to ensure that it shall be given the most extensive publicity possible. (SGD.) CELIA C. KING OIC-Deputy Commissioner Resource Management Group ATTACHMENT June 20, 2008 DBM NATIONAL BUDGET CIRCULAR NO. 516-08 TO : Heads of Departments, Bureaus, Offices and Agencies of the National Government, Including State Universities and Colleges and Government-Owned or Controlled Corporations; and All Others Concerned SUBJECT : Rules and Regulations on the Grant of Compensation Adjustment to National Government Personnel Pursuant to Executive Order No. 719 1.0 Purpose This Circular is issued to prescribe the rules and regulations governing the grant of compensation adjustments to national government personnel effective July 1, 2008, as authorized under Executive Order (EO) No. 719 dated May 1, 2008. 2.0 Coverage 2.1 National Government Agencies (NGAs) Including State Universities and Colleges (SUCs) 2.1.1 Civilian Personnel The 10% salary increase covers all authorized permanent, contractual and casual positions, appointive or elective, on full-time or part-time basis, now existing or hereafter created in NGAs, including SUCs, which are covered by RA No. 6758 (Compensation and Position Classification Act of 1989), as amended. 2.1.2 Military/Uniformed Personnel The 10% base pay increase covers military/uniformed personnel of the following agencies: 2.1.2.1 Armed Forces of the Philippines (AFP) under the Department of National Defense; 2.1.2.2 Philippine National Police (PNP), Bureau of Fire Protection (BFP) and Bureau of Jail Management and Penology (BJMP) under the Department of the Interior and Local Government; TAECaD 2.1.2.3 Philippine Coast Guard (PCG) under the Department of Transportation and Communications; and 2.1.2.4 National Mapping and Resource Information Authority (NAMRIA) under the Department of Environment and Natural Resources. 2.2 Government-Owned or Controlled Corporations (GOCCs) All authorized permanents contractual and casual positions, on full-time or part-time basis, now existing or hereafter created in GOCCs which are covered by RA No. 6758, as amended, are covered by the 10% salary increase, subject to the availability of corporate funds. 3.0 Exclusions The following personnel are not covered by the compensation adjustments authorized under said EO in view of the provisions of existing laws, rules and regulations: 3.1 Positions in government entities which are exempted by law from the coverage of RA No. 6758, as amended; 3.2 Positions not entitled to salary increase under the 1987 Philippine Constitution until after the expiration of the terms of the incumbents during which such increase was approved, such as the President of the Philippines, Vice-President of the Philippines, Senators and Members of the House of Representatives; 3.3 Those with services hired without employee-employer relationships and funded from non-Personal Services appropriation/budget, as follows: 3.3.1 Consultants and experts hired by government entities for a limited period to perform specific activities or services with expected outputs who shall be continually compensated pursuant to existing applicable laws, rules and regulations; 3.3.2 Laborers hired through job contracts (pakyaw) and those paid on piecework bases; 3.3.3 Student laborers, apprentices; and 3.3.4 Others similarly situated who shall be continually compensated pursuant to existing applicable laws, rules and regulations. 4.0 Definition of Terms For purposes of this Circular, the following terms shall be construed to mean as follows: 4.1 Actual monthly basic salary is the monthly basic salary of an incumbent civilian government personnel received as of June 30, 2008, inclusive of Step Increment/s and Transition Allowance, if any, but exclusive of all allowances and benefits regularly paid in addition to the monthly basic salary. cDTaSH 4.2 Transition Allowance is the amount of excess of the actual monthly basic salary of an incumbent civilian government personnel over the salary corresponding to Step 8 of the salary grade allocation of his/her position. 4.3 Adjusted monthly basic salary is the monthly salary to be received by civilian government personnel effective July 1, 2008. 4.4 Actual monthly base pay is the monthly base pay of an incumbent military/uniformed personnel received as of June 30, 2008, exclusive of Longevity Pay and all allowances/benefits regularly paid in addition to the monthly base pay. 4.5 Adjusted monthly base pay is the monthly base pay to be received by military/uniformed personnel effective July 1, 2008. 5.0 General Guidelines 5.1 Compensation Adjustments for Civilian Personnel 5.1.1 Incumbent civilian personnel shall receive the salaries in the Salary Schedule in Annex "A" which correspond to the designated salary steps of the salary grade allocations of their positions as of June 30, 2008 in line with Sections 1.a.i and 1.b of EO No. 719. 5.1.2 If the actual monthly basic salary including Transition Allowance of an incumbent as of June 30, 2008 is already lower than the salary corresponding to Step 8 of the salary allocation of his/her position in the Salary Schedule in Annex "A", his/her adjusted monthly basic salary as of July 1, 2008 shall correspond to Step 8 of his/her salary grade allocation. 5.1.3 If the actual monthly basic salary including Transition Allowance of an incumbent as of June 30, 2008 is higher than the salary corresponding to Step 8 of the salary grade allocation of his/her position in the Salary Schedule in Annex "A", he/she is not entitled to the 10% salary increase. He/She shall continue to receive such excess which shall be referred to as Transition Allowance. 5.1.4 A compulsory retiree whose services has been extended beyond June 30, 2008 shall likewise be entitled to the authorized 10% salary increase effective 2008. However, his/her retirement benefits, including terminal leave benefit shall be computed based on the monthly salary as of June 30, 2008. This rule is in line with the pertinent section of Civil Service Commission (CSC) Memorandum Circular No. 15, s. 1999, CSC Resolution No. 020365 adopted on March 7, 2002 and related CSC Resolutions. DcITHE 5.1.5 The wages/salaries of casual/contractual employees as of June 30, 2008 which are paid out of lump-sum appropriations or project funds shall be adjusted to the wages/salaries corresponding to step 1 of the salary grade allocations of their positions effective July 1, 2008. The daily wage rate of a casual employee shall be computed by dividing the monthly salary corresponding to Step 1 of the salary grade allocation of the position in the Salary Schedule in Annex "A" by 22 work days. 5.1.6 The rates of the Special Allowances authorized under special laws to personnel of certain national government agencies, which are intended as advance implementation of future salary increases that may be granted to government personnel, shall be reduced correspondingly by the amount equivalent to the salary increase granted under EO No. 719. Accordingly, the portion of the Special Allowance correspondingly to the salary increase shall be converted as part of the adjusted monthly basic salary of the incumbent. 5.2 Compensation Adjustment for Military/Uniformed Personnel 5.2.1 The incumbent military/uniformed personnel shall receive the base pay corresponding to their ranks as provided in Annex "B", in line with Section 1.a.ii, EO No. 719. 5.2.2 The adjusted monthly base pay rates in Annex "B" shall be used as bases for computing the adjustment in Longevity Pay for military/uniformed personnel, consistent with the provisions of RA No. 1134, as amended by RA No. 3725 and RA No. 6975. 5.3 Other Allowances and Benefits All existing rates of allowances and benefits which are computed at percentages of salaries/base pay shall not be adjusted, notwithstanding the 10% salary/base pay increase authorized under EO No. 719, except for the year-end bonus, government counterpart contributions to Retirement and Life Insurance Premiums (RLIP), PAG-I.B.I.G, PHILHEALTH and Employees Compensation Insurance Premiums (ECIP) and Longevity Pay for military/uniformed personnel. 5.4 GOCCs with Inadequate/Insufficient Funds GOCCs which do not have adequate or sufficient funds to pay the salary increases shall only partially implement the adjusted monthly salary per Annex "A", Provided, That any partial implementation shall be at a uniform percentage rate for all positions in the GOCC concerned and shall likewise consider the amounts needed for the corresponding adjustments in year-end bonus and government counterpart contributions to RLIP, PAG-I.B.I.G, PHILHEALTH and ECIP. Annex "C" illustrates the computation of compensation adjustments which are partial and at uniform percentage rates. EAHcCT 6.0 Fund Sources 6.1 For NGAs, the amounts required to implement the compensation adjustments due to the 10% salary/base pay increase in FY 2008 shall be charged against the Miscellaneous Personnel Benefits Fund authorized under RA No. 9498, the FY 2008 General Appropriations Act. However, the amounts required to implement the compensation adjustments for casual and contractual employees shall be sourced from their respective lump-sum appropriations for salaries/wages included in agency FY 2008 appropriations/budgets. 6.2 For GOCCs, the amount shall be charged against their respective corporate funds in the approved corporate operating budgets. The use of funds for the purpose shall be subject to the approval of their respective governing boards in accordance with applicable laws. 7.0 Release of Funds 7.1 The Department of Budget and Management (DBM) shall release the funds needed to implement the authorized compensation adjustments in the NGAs concerned based on the number of filled positions as of June 30, 2008. 7.2 Initially, the release of funds shall cover the requirements for July to September 2008. The requirements for October to December 2008 shall be released upon submission by the operating units of agencies concerned of the following data/report to DBM: 7.2.1 Report of newly filed authorized positions from July 1 up to the date of report, subject to the moratorium and policy on the filling of positions/hiring of personnel provided under Circular Letter No. 2008-7 dated June 2, 2008. Said report shall reflect information, i.e. , names, positions and total number of personnel hired; and 7.2.2 Statement of Allotments, Obligations and Balances as of September 30, 2008, highlighting the amount of allotments received and corresponding obligations incurred for compensation adjustments. 8.0 Notice of Salary Adjustment 8.1 The Head of the NGA/GOCC shall notify each regular, casual and contractual employee concerned of the salary adjustment in accordance with this Circular through a Notice of Salary Adjustment (for individuals without Transition Allowance, Annex "D-1"; and for individuals with Transition Allowance, Annex "D-2" ). TSHIDa 8.2 Copies of the Notices shall be furnished the Government Service Insurance System, if the employees are members thereof, and the Commission on Audit. 9.0 Plantilla of Personnel and Salary Adjustment Form (PPSAF) 9.1 GOCCs implementing the herein salary increase shall likewise accomplish the Plantilla of Personnel and Salary Adjustment Form (PPSAF) for regular positions as shown in Annex "E". A separate PPSAF shall be prepared for casual and contractual positions. 9.2 The original and three (3) copies of said PPSAF, certified correct by the Human Resource Management Officer/Administrative Officer and approved by the Head of GOCC concerned, shall be submitted within thirty (30) days after the grant of the salary increase to DBM. The DBM shall examine and verify the entries in the PPSAF and certify them accordingly. The PPSAF shall be distributed as follows: Original copy with DBM for records, control and post-audit purposes, 1 copy to the Civil Service Commission Regional Office and Field Office concerned; aSITDC 1 copy to the COA, for compliance with auditing requirements; 1 copy to the office of origin. 10.0 Responsibility of the Head of Agency The Head of Agency shall be responsible for the implementation of the provisions of this Circular. He/She shall be held personally liable for any payment of compensation adjustment not in accordance with the provisions of this Circular without prejudice, however, to the refund by the employee concerned of any excess payment made to him/her. 11.0 Saving Clause Cases not covered by the provisions of this Circular shall be referred to the DBM for resolution. 12.0 Effectivity This Circular shall take effect July 1, 2008. (SGD.) ROLANDO G. ANDAYA, JR. Secretary ANNEX A Monthly Salary Schedule for Civilian Government Personnel Effective July 1, 2008 (In Pesos) Salary Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 1 6,149 6,303 6,460 6,622 6,788 6,958 7,131 7,310 2 6,703 6,871 7,042 7,219 7,398 7,583 7,773 7,968 3 7,307 7,489 7,675 7,868 8,063 8,266 8,471 8,684 4 7,891 8,087 8,290 8,496 8,710 8,928 9,150 9,379 5 8,522 8,735 8,953 9,176 9,406 9,642 9,882 10,130 6 9,204 9,434 9,670 9,911 10,160 10,414 10,673 10,941 7 9,848 10,092 10,346 10,604 10,870 11,141 11,420 11,707 8 10,538 10,801 11,070 11,348 11,630 11,921 12,220 12,525 9 11,275 11,557 11,846 12,143 12,446 12,756 13,077 13,401 10 12,026 12,328 12,635 12,951 13,275 13,608 13,948 14,297 11 12,748 13,066 13,392 13,726 14,071 14,423 14,784 15,151 12 13,512 13,850 14,197 14,552 14,915 15,289 15,670 16,061 13 14,323 14,682 15,048 15,424 15,809 16,205 16,611 17,025 14 15,181 15,562 15,950 16,349 16,758 17,178 17,607 18,046 15 16,093 16,494 16,907 17,329 17,763 18,208 18,662 19,130 16 17,059 17,484 17,921 18,371 18,829 19,301 19,784 20,277 17 18,082 18,534 18,997 19,471 19,961 20,459 20,970 21,494 18 19,168 19,647 20,138 20,642 21,158 21,685 22,229 22,784 19 20,318 20,825 21,346 21,880 22,428 22,988 23,562 24,150 20 21,537 22,075 22,626 23,194 23,773 24,367 24,976 25,601 21 22,397 22,958 23,532 24,120 24,722 25,340 25,975 26,623 22 23,294 23,876 24,473 25,084 25,712 26,355 27,014 27,688 23 24,224 24,830 25,453 26,089 26,739 27,409 28,094 28,797 24 25,196 25,825 26,472 27,132 27,812 28,506 29,219 29,950 25 26,203 26,859 27,529 28,218 28,922 29,646 30,386 31,148 26 27,250 27,931 28,631 29,346 30,080 30,831 31,603 32,393 27 28,340 29,050 29,777 30,520 31,282 32,065 32,866 33,689 28 29,474 30,212 30,967 31,740 32,534 33,346 34,181 35,036 29 30,653 31,420 32,205 33,010 33,836 34,682 35,549 36,436 30 34,939 35,813 36,709 37,626 38,566 39,531 40,518 41,530 31 48,915 50,138 51,390 52,675 53,991 55,342 56,725 58,143 32 55,902 57,300 58,732 60,201 61,706 63,248 64,830 66,450 33 69,878 ANNEX B Monthly Base Pay Schedule for Military/Uniformed Personnel Effective July 1, 2008 Philippine National National Police/Bureau of Fire Mapping and Monthly Armed Forces of the Philippine Coast Protection/Bureau of Resource Base Pay Philippines Guard Jail Management and Information (In Pesos) Penology/Philippine Authority Public Safety College Enlisted Ranks Candidate Soldier 7,751 Private Apprentice Seaman Police/Fire/Jail Officer I Seaman, Third 9,466 Class Private, First Class Seaman, Second Seaman, 10,033 Class Second Class Corporal Seaman, First Class Police/Fire/Jail Officer II Seaman, First 10,635 Class Non-Commissioned Officers Sergeant Petty Officer III Petty Officer III 11,273 Staff Sergeant Petty Officer II Police/Fire/Jail Officer III Petty Officer II 11,949 Technical Sergeant Petty Officer I Petty Officer I 12,667 Master Sergeant Chief Petty Officer Senior Police/Senior Chief Petty 13,427 Fire/Senior Jail Officer I Officer Senior Master Senior Chief Petty Senior Police/Senior 14,232 Sergeant Officer Fire/Senior Jail Officer II Chief Master Master Chief Petty Senior Police/Senior Sergeant Officer Fire/Senior Jail Officer 15,087 III Senior Police/Senior Fire/Senior Jail Officer 15,992 IV Company Grade Officers Cadet Cadet 15,992 Probationary Second 15,992 Lieutenant Second Lieutenant Ensign Ensign 17,629 First Lieutenant Lieutenant, Junior Inspector Lieutenant, 18,334 Grade Junior Grade Captain Lieutenant, Senior Senior Inspector Lieutenant, 19,067 Grade Senior Grade Field Grade Officers Major Lieutenant Chief Inspector Lieutenant Commander Commander 19,831 Lieutenant Colonel Commander Superintendent Commander 20,624 Colonel Captain Senior Superintendent Captain 21,449 General Officers Brigadier General Commodore Chief Superintendent 22,307 Major General Rear Admiral Director 23,199 Lieutenant General Vice Admiral Deputy Director General 24,127 General Director General 27,500 ANNEX C Illustrative Examples of Compensation Adjustments which are Partial and at Uniform Percentage Rates ANNEX D1 Notice of Salary Adjustment Date: _________________ Mr./Ms. __________________ _________________________ _________________________ Sir/Madam: Pursuant to Local Budget Circular No. 88 dated June 20, 2008, implementing Executive Order No. 719 dated May 1, 2008, your salary is hereby adjusted effective July 1, 2008, as follows: ED IA 1. Adjusted monthly basic salary effective July 1, 2008 under the new Salary Schedule: SG _____, Step ______ P ______ 2. Monthly basic salary as of June 30, 2008: SG _____, Step _______ ______ 3. Salary increase per month effective July 1, 2008 (1-2) ______ It is understood that this salary adjustment is subject to review and post-audit, and to appropriate re-adjustment and refund if found not in order. Position Title: ____________________________ Salary Grade: _____________________________ Item No., FY 2008 Plantilla of Personnel): ______ Very truly yours, ___________________ Local Chief Executive ANNEX D2 Notice of Salary Adjustment Date: _________________ Mr./Ms. __________________ _________________________ _________________________ Sir/Madam: Pursuant to National Budget Circular No. 516 dated June 20, 2008, implementing Executive Order No. 719 dated May 1, 2008, your salary is hereby adjusted effective July 1, 2008, as follows: 1. Adjusted monthly basic salary effective July 1, 2008 under the new Salary Schedule: SG _____, Step 8 P __________ 2. Monthly basic salary as of June 30, 2008: SG ______, Step 8 __________ Add: Transition Allowance __________ Total: __________ 3. Salary increase per month effective July 1, 2008 0.00 4. Remaining balance of Transition Allowance (1-2) __________ It is understood that this salary adjustment is subject to review and post-audit, and to appropriate re-adjustment and refund if found not in order. SaCIAE Position Title: ____________________________ Salary Grade: _____________________________ Item No./Unique Item No., FY 200_ Personal Services Itemization and/or Plantilla of Personnel: ________________ Very truly yours, ___________________ Head of Agency ANNEX E Plantilla of Personnel and Salary Adjustment Pursuant to Executive Order No. 719 dated May 1, 2008 as Implemented by NBC No. 516 dated June 20, 2008