A Resolution Clarifying "Basic Monthly Salary" Under Republic Act No. 9227

February 24, 2004

EN BANC

A.M. No. 03-12-04-SC

A RESOLUTION CLARIFYING "BASIC MONTHLY SALARY " UNDER REPUBLIC ACT NO. 9227

RESOLUTION

In a letter-query dated January 20, 2004, Ms. Corazon M. Ordoñez, Chief of the Fiscal Management and Budget Office, requested clarification as to the basis of the computation of the "basic monthly salary " under Republic Act No. 9227 1 granting additional compensation in the form of a special allowance to Justices, Judges and other positions in the Judiciary with the rank, salary and privileges of Justices and Judges.

The pertinent provision of Republic Act No. 9227 states:

Section 2.Grant of Special Allowances. — All Justices, Judges and all other positions in the Judiciary with the equivalent rank of Justices of the Court of Appeals and Judges of the Regional Trial Court as authorized under existing laws shall be granted special allowances equivalent to one hundred percent (100%) of the basic monthly salary specified for their respective salary grades under Republic Act No. 6758, as amended, otherwise known as the Salary Standardization Law, to be implemented for a period of four (4) years.

The grant of special allowances shall be implemented uniformly in such sums or amounts equivalent to twenty-five (25%) of the basic salaries of the positions covered hereof. Subsequent implementation shall be in such sums and amounts and up to the extent only that can be supported by the funding source specified in Section 3 hereof. (Emphasis supplied.)

The Court clarifies the term "basic monthly salary " in Section 2 of Republic Act No. 9227 as the actual basic monthly salary of Justices and Judges, including step increments and longevity pay. It excludes Personnel Economic Relief Allowance (PERA), extraordinary allowance, Representation and Transportation Allowances (RATA) and other forms of additional compensation. TDcHCa

The Court's clarification of said term is based on the following reasons:

1. Section 2 of Republic Act No. 9227 provides that "basic monthly salary " shall be that which is in accordance with the basic monthly salary specified for the respective salary grades of Justices and Judges under Republic Act No. 6758. Section 7 of Republic Act No. 6758 provides for a Salary Schedule that allows eight (8) step increments per Salary Grade. Said section further provides that "[a]ll salaries in the Salary Schedule expressed as monthly rates in pesos shall represent full compensation for full time employment, regardless of where the work is performed. " Considering that step increment is made a component of the Salary Schedule, which in turn represents full compensation, it only follows that step increments form part of basic salary.

2. The exclusion of the RATA is expressly provided for in Section 12 of Republic Act No. 6758. Extraordinary allowances are not part of basic salary considering that their nature as an "allowance " is not included in the term "salary. " 2

3. Batas Pambansa Blg. 129, as amended (The Judiciary Reorganization Act of 1980) provides for longevity pay as follows:

Sec. 42. Longevity pay. — A monthly longevity pay equivalent to 5% of the monthly basic pay shall be paid to the Justices and Judges of the courts herein created for each five years of continuous, efficient, and meritorious service rendered in the judiciary: Provided, That in no case shall the total salary of each Justice of Judge concerned, after this longevity pay is added, exceed the salary of the Justice or Judge next in rank. (Emphasis supplied.)

The proviso of Section 42 means that the longevity pay forms part or is a component of the "total salary " of the Justice or Judge after it shall have been added to the basic salary which, after Republic Act No. 6758 took effect, in turn means the salary prescribed for particular salary grades including step increments. The only limitation imposed by Section 42, after adding longevity pay to the basic salary, is that the sum of the basic salary and the longevity pay shall not exceed the salary of the Justice or Judge next in rank to the recipient of the longevity pay.

The longevity pay may only be received by the Justice or Judge who has rendered "continuous, efficient, and meritorious service " in the Judiciary. To remove this component from his basic monthly salary would result in the decrease in the amount of the basis for the computation of the special allowance. Such deduction would render meaningless the increase in basic salary that a Justice or Judge has earned through meritorious, efficient and continuous judicial service.

Moreover, a Justice or Judge who becomes entitled to longevity pay acquires a vested right to enjoy its benefit. A vested right is "some right or interest in property which has become fixed and established and is no longer open to doubt or controversy. " 3 Vested rights may not be annihilated without due process of law; hence, the State may not impair vested rights by legislative enactment or by arbitrary State action. 4 aECSHI

Statutes are said to be in pari materia when they relate to the same persons or things, or to the same class of persons or things, or have the same purpose or object. 5 Republic Act No. 9227 and Batas Pambansa Bilang No. 129 both provide for additions to the basic salary of Justices and Judges. The repealing clause of Republic Act No. 9227, found in Section 8 thereof, states: "All laws, decrees, orders, rules and regulations or parts thereof which are inconsistent with the provisions of this Act are hereby repealed or modified accordingly. " Republic Act No. 9227, therefore, did not expressly repeal Section 42 of Batas Pambansa Bilang 129. It is a well-settled rule of construction that repeals of statutes by implication are not favored, 6 and will not be so declared unless it be manifest that the legislature so intended. 7 The presumption is against inconsistency and repugnancy, for the legislature is presumed to know the existing laws on the subject and not to have enacted inconsistent or conflicting statutes. 8 Statutes in pari materia should be construed together. 9 In construing the statutes, the earlier ones relating to the same subject matter should be compared with the new provisions and, if possible by reasonable construction, both should be so construed that effect may be given to every provision of each. 10

A literal reading of the phrase, "basic monthly salary specified for their respective salary grades under Republic Act No. 6758, " would defeat rather than enhance the intention of the law to guarantee the independence of the Judiciary and "to ensure impartial administration of justice, as well as, an effective and efficient judicial system worthy of public trust and confidence. " 11 As a social legislation, Republic Act No. 9227 should be interpreted in favor of its beneficiaries.

The term "basic monthly salary " in Section 2 of Republic Act No. 9227, therefore, means the actual basic monthly salary of Justices and Judges, including step increments and longevity pay.

Footnotes

1. "An Act Granting Additional Compensation in the Form of Special Allowances for Justices, Judges and All Other Positions in the Judiciary with the Equivalent Rank of Justices of the Court of Appeals and Judges of the Regional Trial Court and for Other Purposes. "

2. Moreno, Philippine Law Dictionary, 3rd Ed., 1988, p. 54.

3. Villaflor v. Court of Appeals, 280 SCRA 297, 346 (1997); Ayog v. Cusi, Jr., 118 SCRA 492, 499 (1982); Balboa v. Farrales, 51 Phil. 498, 502 (1928).

4. Ayog v. Cusi, Jr., supra.

5. City of Naga v. Agna, 71 SCRA 176, 184 (1976).

6. Mecano v. Commission on Audit, 216 SCRA 500, 508 (1992).

7. Ching v. Landbank of the Philippines, 201 SCRA 190, 202 (1991).

8. Mecano v. Commission on Audit, supra, note 6.

9. Ching v. Landbank of the Philippines, supra, note 7.

10. Ibid.

11. Section 1, Republic Act No. 9227.