Rules and Regulations Governing the Grant of Step Increments to Deserving Officials and Employees of the Government

May 9, 1990 REVENUE MEMORANDUM CIRCULAR NO. 042-90 SUBJECT : Rules and Regulations Governing the Grant of Step Increments to Deserving Officials and Employees of the Government TO : All Revenue Officials and Employees and Others Concerned For the information and guidance of all revenue officials and employees, quoted hereunder is the Joint Civil Service Commission and Department of Budget and Management Circular No. 1, s. 1990 dated March 29, 1990. "Pursuant to Section 13(c) of Republic Act No. 6758 otherwise known as the "Compensation and Classification Act of 1989", the Civil Service Commission and the Department of Budget and Management jointly promulgate the following rules and regulations that shall govern the grant of step increments based on merit and/or length of service. RULE I. Coverage Sec. 1. These rules and regulations shall apply to all officials and employees in the national and local governments, including those in government-owned and controlled corporations, judiciary and legislature, who are appointed on a permanent status in the career service. aisa dc RULE II. Selection Criteria Sec. 1. Step increments shall be granted to all deserving officials and employees referred to in Section 1, Rule I hereof, based on the following criteria: (a) Merit For those who have rendered very satisfactory or outstanding performance in assigned functions for two consecutive rating periods; and (b) Length of Service For those who have rendered continuous satisfactory service in a particular position for at least three (3) years. RULE III. Step Increments Sec. 1. Merits Schedule . The grant of step increments to deserving officials and employees on the basis of merit shall be in accordance with the following: Criteria No. of Step Effectivity Increment a) Very satisfactory One (1) step The day following performance for two (2) the end of the consecutive rating second rating periods based on agency period approved performance appraisal system b) Outstanding performance Two (2) steps The day for two consecutive following the rating periods based on end of the agency approved second rating performance appraisal period system For positions allocated to salary grades 30 to 33, each succeeding step after the first step shall be computed at one per cent (1%) of the immediately preceding derived step of the salary grade allocation. In the initial implementation of step increments based on merit, performance for 1990 shall be made the basis of the grant. Sec. 2. Length of Service . A one (1) step increment shall be granted to officials and employees for every three (3) years of continuous satisfactory service in the position. Years of service in the position shall include the following: (a) those rendered before the position was classified to a position title with a lower or the same salary grade allocation; and (b) those rendered before the incumbent was transferred to another position within the same agency to another agency without a change in position title and salary grade allocation. In the initial implementation of step increments in 1990 an incumbent shall be granted step increments equivalent to one (1) step for every three (3) years of continuous satisfactory service in a given position occupied as of January 1, 1990. Sec. 3. Restrictions . The following restrictions shall be observed in the grant of step increments: (a) The adjusted salary of an official or employee after the grant of step increment shall not exceed the maximum step of the salary grade of his position, subject to the mathematical rules on rounding off. (b) No step increment received by an official or employee shall be carried to a higher position to which he is promoted or appointed as a result of reclassification. (c) The total number of recipients of step increments based on merit in any one (1) calendar year shall not be more than ten per cent (10%) of the total number of personnel actually employed in the department or agency, provided that the total number of recipients of two step increments shall not exceed three per cent (3%) thereof. (d) No step increment based on merit shall be given to an official or employee on the ground that he is retiring in the near future and for purposes of enabling him to collect a higher retirement gratuity, except as he may qualify in accordance with the criteria established under these Rules. cdt Sec. 4. Qualification(s) for Other Incentives and Awards . Those granted step increments under these Rules may still qualify for other existing incentives and awards provided they meet the criteria of said awards. Sec. 5. Nullification . Any step increment granted in violation of these Rules shall be deemed null and void and the head of the department or agency shall require the refund to the government of whatever amount the awardee(s) has received. For any grant of step increments found to be based on spurious documents or representations, the head of the department or agency shall be personally liable for the refund to the government of the amount granted. Sec. 6. Responsibility . The head of the department or agency shall review annually the grant of step increments. Every department or agency shall develop its own systems and procedures in the recommendation, evaluation and approval of step increment grants. Sec. 7. Incorporation in Personal Services Itemization and Basic Salary . Step increments granted to officials and employees shall be treated as part of their basic salary and shall be incorporated in the Personal Services Itemization of the department or agency for the subsequent calendar year and thereafter. Sec. 8. Notification . The head of the department or agency shall: (a) notify in writing the official or employee concerned of the step increments granted under these Rules through a Notice of Step Increments, a copy of which shall be furnished the GSIS, and (b) submit to the Civil Service Commission and the Department of Budget and Management, not later than fifteen days after the end of each semester of a calendar year a list of officials and employees granted step increments under these Rules using the prescribed Form including a list of positions vacated by recipients of step increments. Sec. 9. Funding Source . Funding for the initial implementation of the step increments provided herein shall be charged against savings of the department or agency. Thereafter, step increments shall be charged against appropriations to be provided for the purpose and for other award and incentive schemes equivalent to two per cent (2%) of the total appropriations for personal services of the department or agency. In the case of government-owned or controlled corporations and local government units, an amount equivalent to two per cent (2%) of their total personal services cost shall likewise be provided in their respective budgets, chargeable against their own funds. cd i RULE IV. Complaints and Protests Sec. 1. Interpretation . Complaints and protests arising from the implementation of these Rules shall not be construed as disciplinary cases and shall not be governed by administrative and disciplinary procedures. Sec. 2. Complaints and Grievance Committee . All complaints and protests arising from the implementation of these Rules shall be brought to the agency Complaints and Grievance Committee created under CSC Memorandum Circular No. 45, s. 1989. The Committee shall adopt its own rules to govern the conduct of its activities in the evaluation of such complaint and protests. RULE V. Repeal Sec. 1. All rules, regulations, policies and standards inconsistent with these Rules and hereby repealed and/or amended accordingly. RULE VI. Effectivity Sec. 1. These Rules shall take effect January 1, 1990. PATRICIA A. STO. TOMAS Chairman GUILLERMO N. CARAGUE Secretary" All revenue officials and employees are enjoined to give this circular as wide a publicity as possible. (SGD.) JOSE U. ONG Commissioner of Internal Revenue