Authorizing the Implementation of Standard Compensation and Position Classification Plans for the Industrial/Area Development Group of Government-Owned or Controlled Corporations

October 1, 1979

LETTER OF IMPLEMENTATION NO. 101

AUTHORIZING THE IMPLEMENTATION OF STANDARD COMPENSATION AND POSITION CLASSIFICATION PLANS FOR THE INDUSTRIAL/AREA DEVELOPMENT GROUP OF GOVERNMENT-OWNED OR CONTROLLED CORPORATIONS

WHEREAS, pursuant to the mandate of the Constitution, P.D. No. 985 was issued to standardize compensation of government officials and employees, including, those in government-owned or controlled corporations, taking into account the nature of the responsibilities pertaining to, and the qualifications required for the positions concerned;

WHEREAS, the said Decree authorizes the adoption of additional financial incentives for viable and profit-making corporations and those performing critical functions, to be supported from net earnings and profit of such corporations;

WHEREAS, for purposes of rationalizing Compensation and Position Classification Systems for groups of corporations belonging to the same functional sectoral interest which presently maintain differing compensation and position classification plans, the said Decree and subsequently LOI No. 62, created Compensation Committees to formulate and recommend policies and standards governing classification compensation, allowances and incentives for such groups of corporations;

WHEREAS, LOI No. 841 directed the Compensation Committees to submit immediately for Presidential approval, adjustments in salary, allowances and fringe benefits as may be called for by present economic conditions, for government-owned or controlled corporations;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by law, do hereby instruct the implementation of the Uniform Position Classification and Pay Plan for the Industrial/Area Development group of corporations;

1. Scope of the Plan. The Position and Compensation Plans for the Industrial/Area Development group shall apply to the following corporations:

Central Luzon-Cagayan Valley Authority

2. Positions Classification. Positions shall be classified using the national classification method and on the basis of pre-determined standards and factors.

A position classification plan shall be prepared for the corporations in the industrial/area development group, adjusted to reflect unique jobs in each of the corporations in the group. These shall be determined on the basis of approved standards/factors and issued by the Minister of the Budget.

3. Compensation Schedule. The schedule attached to this Letter shall comprise the compensation schedule applicable to positions paid on monthly or annual basis.

4. Salaries for Top Management Positions. The compensation of the executive positions in a corporation shall depend upon the asset size and operations of the corporation and upon its overall financial performance. The maximum levels of basic salary for the top positions in the largest and most profitable corporations shall be as follows:

 

General Manager/Administrator Assistant General Manager	P80,000.00
Deputy Administrator/Deputy General Manager	P72,000.00

 

Provided, That salaries actually being received by any official in excess of these rates may continue, subject to Item No. 6 hereof.

5. Maximum Level of Allowances and Benefits. Policies on allowances and other benefits now in force for each corporation shall be maintained.

6. Implementing Details. Implementing details of the Position and Compensation plan shall be issued by the Ministry of the Budget, which shall observe the following guidelines:

a. The increases shall be staggered within the limits of corporate financial performance. No government subsidy or equity investment shall be approved to finance any salary increase;

b. The implemented total Increase in basic salary, allowances and fringe benefits in any one year shall be within the approved position classification and compensation plan for the group and for any one corporation, shall not in any case exceed twenty-five (25%) of the actual total personal services expenses of the immediately preceding year, adjusted for increases in staffing;

c. An across-the-board increase of ten percent (10%) in basic salary shall be immediately implemented for the various corporations, except for senior executive positions where existing scales exceed those indicated by Item No. 4 of this Letter. This shall be considered as an interim measure pending the approval of the position classification plan described under Item No. 2 hereof;

d. The allowances and/or fringe benefits of senior executive whose basic salary already exceed those specified in Item No. 4 hereof may be increased to make up for any difference between actual compensation now received and the amount otherwise authorized under this Letter;

e. Hiring rates for positions shall be established for each corporation, depending upon its size and profitability;

f. The implementation schedule for corporations incurring a loss in 1978 shall be prepared by the corporations concerned hand in hand with a profit plan and shall be subject to ease to case approval by the Ministry of the Budget; and

g. Any changes in the approved position classification and pay plans, including re classification action, shall be subject to the approval of the Minister of the Budget.

7. Effectivity Date. The Position Classification and Compensation Plans herein directed shall take effect on May 1, 1979.

DONE in the City of Manila, this 1st day of October, in the year of Our Lord, Nineteen Hundred and Seventy-Nine.