Implementing Rules and Regulations of Executive Order (E.O.) No. 36, s. 2017
On August 24, 2017, the Governance Commission for GOCCs (GCG) issued Memorandum Circular No. 003-17 to implement Executive Order No. 36, which temporarily suspends the Compensation and Position Classification System (CPCS) for Government-Owned or Controlled Corporations (GOCCs) due to the need for reevaluation. The circular outlines interim compensation adjustments applicable to all positions within GOCCs and establishes guidelines for implementing these adjustments retroactively to January 1, 2017. Certain positions and individuals, such as consultants and casual workers, are excluded from this compensation adjustment. GOCCs must follow strict procedural guidelines for salary adjustments, ensuring no reduction in existing salaries and prohibiting funding for salary increases from loans or national government subsidies. Non-compliance may result in sanctions, including revocation of incentives and recommendations for non-reappointment of board members.
Quick Answers
- What is Implementing Rules and Regulations of Executive Order (E.O.) No. 36, s. 2017 about?
- On August 24, 2017, the Governance Commission for GOCCs (GCG) issued Memorandum Circular No. 003-17 to implement Executive Order No. 36, which temporarily suspends the Compensation and Position Classification System (CPCS) for Government-Owned or Controlled Corporations (GOCCs) due to the need for reevaluation. The circular outlines interim compensation adjustments applicable to all positions within GOCCs and establishes guidelines for implementing these adjustments retroactively to January 1, 2017. Certain positions and individuals, such as consultants and casual workers, are excluded from this compensation adjustment. GOCCs must follow strict procedural guidelines for salary adjustments, ensuring no reduction in existing salaries and prohibiting funding for salary increases from loans or national government subsidies. Non-compliance may result in sanctions, including revocation of incentives and recommendations for non-reappointment of board members.
- What type of law is GCG Memorandum Circular No. 003-17?
- Implementing Rules and Regulations of Executive Order (E.O.) No. 36, s. 2017 (GCG Memorandum Circular No. 003-17) is a Philippine Implementing Rules and Regulations enacted by the Congress of the Philippines.
- When was Implementing Rules and Regulations of Executive Order (E.O.) No. 36, s. 2017 enacted?
- Implementing Rules and Regulations of Executive Order (E.O.) No. 36, s. 2017 (GCG Memorandum Circular No. 003-17) was enacted on Aug 24, 2017.
- What is the citation for Implementing Rules and Regulations of Executive Order (E.O.) No. 36, s. 2017?
- Implementing Rules and Regulations of Executive Order (E.O.) No. 36, s. 2017, GCG Memorandum Circular No. 003-17, Aug 24, 2017 (Philippines)
Law Information
- Reference Number
- GCG Memorandum Circular No. 003-17
- Date Enacted
- Subcategory
- Government-Owned and/or Controlled Corporations
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
August 24, 2017
GCG MEMORANDUM CIRCULAR NO. 003-17
SUBJECT : Implementing Rules and Regulations of Executive Order (E.O.) No. 36, s. 2017
1. BACKGROUND AND PURPOSE. — Executive Order No. 36, s. 2017 (E.O. No. 36) entitled Suspending the Compensation and Position Classification System under Executive Order No. 203, s. 2016, 1Providing for Interim Compensation Adjustments, and for Other Purposes was signed on 28 July 2017 by the President of the Philippines in accordance with the authority vested in him under Presidential Decree (P.D.) No. 1597, 2 Joint Resolution (J.R.) No. 4, s. 2009, 3 and R.A. No. 10149. 4
E.O. No. 36 has suspended the implementation of the Compensation and Position Classification System (CPCS) and the General Index of Occupational Services (IOS) Framework for the GOCC Sector under E.O. No. 203, s. 2016 inasmuch as there are compelling reasons to revisit and/or reevaluate the CPCS.
Pending the reevaluation of the CPCS, an interim measure is set in place to address affected GOCCs.
2. LEGAL BASIS. — Pursuant to Section 6 of E.O. No. 36, within thirty (30) days from the effectivity of the Executive Order, the GCG shall promulgate implementing rules and regulations which shall, among others, ensure that the approvals required prior to the implementation of the interim measure are issued to qualified GOCCs.
This Circular is issued to prescribe the guidelines, rules and regulations for the implementation of the compensation adjustment stipulated under E.O. No. 36.
3. COVERAGE. — This Circular shall cover all positions, now existing or hereafter created in Government-Owned or -Controlled Corporations (GOCCs) as defined in Section 3 (o) of R.A. No. 10149 under the jurisdiction of the GCG, including their Subsidiaries, whether Chartered or Non-chartered, and whether covered by or exempted from the Salary Standardization Law (SSL).
4. EXCLUSIONS. — The following are excluded from the coverage of this Circular:
4.1 GOCCs, Government Instrumentalities with Corporate Powers (GICP)/Government Corporate Entities (GCE) excluded from the coverage as provided under Section 4 of R.A. No. 10149.
4.2 Those hired without employee-employer relationships and funded from non-Personnel Services appropriations/budgets, such as but not limited to:
4.2.1 Consultants and experts hired for a limited period to perform specific activities or services with expected outputs;
4.2.2 Laborers hired through job contracts (pakyaw) and those paid on piecework basis;
4.2.3 Student workers and apprentices; and
4.2.4 Individuals and groups of people whose services are engaged through job orders, contracts of service, or others similarly situated.
5. APPLICATION. — The effectivity of the compensation adjustments authorized under E.O. No. 36 for qualified GOCCs as set forth hereunder shall retroact to 1 January 2017, upon approval of the GCG.
6. THE CPCS AND INDEX OF OCCUPATIONAL SERVICES (IOS) FRAMEWORK FOR THE GOCC SECTOR. — The implementation of the CPCS and the IOS Framework for the GOCC Sector, including the provision on the Early Retirement Incentive Plan (ERIP), under E.O. No. 203, s. 2016 is SUSPENDED.
7. INTERIM MEASURE. — In the interim, the compensation framework of GOCCs, including their subsidiaries, which are covered under R.A. No. 10149 shall be governed by the following:
7.1 For SSL-Covered GOCCs, the GOCC shall adopt the Modified Salary Schedule under Executive Order No. 201, s. 2016 (E.O. No. 201) as well as the allowances and benefits provided under J.R. No. 4 upon approval by the GCG.
For this purpose, the GOCC shall write a request to GCG for the adoption of the Modified Salary Schedule under Section 3 of E.O. No. 201 with the following supporting documents:
i. Verified list of all existing allowances, bonuses, and benefits being received by the officers and employees, whether given in cash, in kind or otherwise, and regardless of the source of funding (i.e., corporate operating budget (COB), provident fund, assistance funds from other government agencies and other GOCCs) and their corresponding legal bases.
ii. The cost estimate of implementing the Modified Salary Schedule as well as certification that the GOCC's COB can cover the additional cost.
iii. Board Resolution for the implementation of the Modified Salary Schedule.
7.2 For SSL-Exempt GOCCs, the GOCC shall have the option to either maintain their current compensation framework which should be in accordance with the conditions set forth in Section 6 5 of P.D. No. 1597, Item 9 6 of J.R. No. 4 and/or other similar laws or, subject to approval of the GCG, adopt the Modified Salary Schedule under Section 3 of E.O. No. 201.
7.2.1. For SSL-Exempt GOCCs who opt to maintain their current compensation framework, the GOCC shall inform the GCG that the Governing Board through a resolution has elected such option. In addition, the GOCC shall also submit a verified list of all existing salaries, allowances, bonuses, and benefits being received by the officers and employees, whether given in cash, in kind or otherwise, and regardless of the source of funding (i.e., corporate operating budget, provident fund, assistance funds from other government agencies and other GOCCs) and their corresponding legal bases.
7.2.2 For SSL-Exempt GOCCs adopting the Modified Salary Schedule under E.O. No. 201, the GOCC shall write a request to GCG for its adoption with the following supporting documents:
i. Verified list of all existing allowances, bonuses, and benefits being received by the officer and employees, whether given in cash, in kind or otherwise, and regardless of the source of funding (i.e., COB, provident fund, assistance funds from other government agencies and other GOCCs) and their corresponding legal bases.
ii. The cost estimate of adopting the Modified Salary Schedule as well as certification that their Corporate Operating Budget can cover the additional cost.
iii. Evaluation of the positions in the GOCC to its equivalent Salary Grade using the form prescribed by GCG (Annex "A") along with the job description of all the positions and the Organizational Structure and Staffing Pattern (OSSP) of the GOCC.
iv. Board Resolution for the implementation of the Modified Salary Schedule.
By adopting the Modified Salary Schedule, the following shall also apply:
7.2.2.1 The GOCC shall be limited to the benefits, allowances, incentives provided under J.R. No. 4 and E.O. No. 201, which, in each case, shall be subject to the similar qualifications, conditions, and rates as may be prescribed by the DBM for national government agencies that are SSL-covered. All other benefits not provided for in J.R. No. 4 and E.O. No. 201 shall be removed.
7.2.2.2 The GCG shall have the authority to convert/revise the compensation framework of such GOCCs (i.e., convert from Job Grade to Salary Grade based on job description);
7.2.2.3 A Mid-Year bonus equivalent to one (1) month basic salary as of May 15, shall be granted to those who have rendered at least four (4) months of satisfactory service and are still in service as of same date, to be given not earlier than May 15 of every year. The existing Year-End Bonus equivalent to one (1) month basic salary and Cash Gift at prescribed rates shall be given in November of every year. The grant of the Mid-Year and Year-End bonuses, as well as the Cash Gift, shall be subject to the guidelines issued by the GCG.
The Mid-Year and Year-End bonuses provided herein, shall be in lieu of the bonuses, allowances or incentives or similar nature, that the GOCCs receive under their current compensation framework.
7.2.3 Applications for the adoption of the Modified Salary Schedule must be submitted to the GCG not later than 31 December 2017.
7.3 Applicable to both SSL-Covered and SSL-Exempt GOCCs. — The Productivity Enhancement Incentive (PEI), as determined by the Department of Budget and Management (DBM), shall be granted to qualified Officers and Employees.
The Performance-Based Bonus (PBB) to be granted to qualified Officers and Employees shall be subject to the guidelines to be issued by the GCG.
8. MODIFIED SALARY SCHEDULE, INCLUDING STEP INCREMENTS. — The modified salary schedule to be adopted and the benefits limited for GOCC officers and employees by E.O. No. 36, shall be implemented in tranches:
8.1. Starting 01 January 2017, the modified salary schedule, second (2nd) tranche of E.O. No. 201, s. 2016;
|
Salary Grade |
Step 1 |
Step 2 |
Step 3 |
Step 4 |
Step 5 |
Step 6 |
Step 7 |
Step 8 |
|
1 |
9,981 |
10,072 |
10,165 |
10,258 |
10,352 |
10,453 |
10,543 |
10,640 |
|
2 |
10,667 |
10,761 |
10,856 |
10,952 |
11,049 |
11,147 |
11,245 |
11,345 |
|
3 |
11,387 |
11,488 |
11,589 |
11,691 |
11,795 |
11,899 |
12,004 |
12,110 |
|
4 |
12,155 |
12,262 |
12,371 |
12,480 |
12,591 |
12,702 |
12,814 |
12,927 |
|
5 |
12,975 |
13,117 |
13,206 |
13,322 |
13,440 |
13,559 |
13,679 |
13,799 |
|
6 |
13,851 |
13,973 |
14,096 |
14,221 |
14,347 |
14,474 |
14,602 |
14,731 |
|
7 |
14,785 |
14,916 |
15,048 |
15,181 |
15,315 |
15,450 |
15,587 |
15,725 |
|
8 |
15,818 |
15,969 |
16,121 |
16,275 |
16,430 |
16,586 |
16,744 |
16,903 |
|
9 |
16,986 |
17,142 |
17,299 |
17,458 |
17,618 |
17,780 |
17,943 |
18,108 |
|
10 |
18,217 |
18,385 |
18,553 |
18,724 |
18,896 |
19,095 |
19,244 |
19,421 |
|
11 |
19,620 |
19,853 |
20,088 |
20,326 |
20,567 |
20,811 |
21,058 |
21,307 |
|
12 |
21,387 |
21,626 |
21,868 |
22,113 |
22,361 |
22,611 |
22,864 |
23,120 |
|
13 |
23,257 |
23,517 |
23,780 |
24,047 |
24,315 |
24,587 |
24,863 |
25,141 |
|
14 |
25,290 |
25,573 |
25,859 |
26,149 |
26,441 |
26,737 |
27,036 |
27,339 |
|
15 |
27,565 |
27,887 |
28,214 |
28,544 |
28,877 |
29,214 |
29,557 |
29,902 |
|
16 |
30,044 |
30,396 |
30,751 |
31,111 |
31,474 |
31,843 |
32,215 |
32,592 |
|
17 |
32,747 |
33,131 |
33,518 |
33,909 |
34,306 |
34,707 |
35,113 |
35,524 |
|
18 |
35,693 |
36,111 |
36,532 |
36,960 |
37,392 |
37,829 |
38,272 |
38,719 |
|
19 |
39,151 |
39,685 |
40,227 |
40,776 |
41,333 |
41,898 |
42,470 |
43,051 |
|
20 |
43,250 |
43,841 |
44,440 |
45,047 |
45,662 |
46,285 |
46,917 |
47,559 |
|
21 |
47,779 |
48,432 |
49,094 |
49,764 |
50,443 |
51,132 |
51,831 |
52,539 |
|
22 |
52,783 |
53,503 |
54,234 |
54,975 |
55,726 |
56,487 |
57,258 |
58,040 |
|
23 |
58,310 |
59,106 |
59,913 |
60,732 |
61,561 |
62,402 |
63,255 |
64,118 |
|
24 |
64,416 |
65,296 |
66,187 |
67,092 |
68,008 |
68,937 |
69,878 |
70,832 |
|
25 |
71,476 |
72,452 |
73,441 |
74,444 |
75,461 |
76,491 |
77,536 |
78,595 |
|
26 |
78,960 |
80,039 |
81,132 |
82,240 |
83,363 |
84,502 |
85,657 |
86,825 |
|
27 |
87,229 |
88,420 |
89,628 |
90,852 |
92,093 |
93,351 |
94,625 |
95,925 |
|
28 |
96,363 |
97,679 |
99,013 |
100,366 |
101,736 |
103,126 |
104,534 |
105,962 |
|
29 |
106,454 |
107,908 |
109,382 |
110,875 |
112,390 |
113,925 |
115,481 |
117,058 |
|
30 |
117,601 |
119,208 |
120,836 |
122,486 |
124,159 |
125,855 |
127,573 |
129,316 |
|
31 |
152,325 |
154,649 |
157,008 |
159,404 |
161,836 |
164,305 |
166,812 |
169,357 |
|
32 |
177,929 |
180,700 |
183,513 |
186,372 |
189,274 |
192,221 |
195,215 |
198,255 |
|
33 |
215,804 |
222,278 |
|
|
|
|
|
|
8.2. Starting 01 January 2018, the modified salary schedule, third (3rd) tranche of E.O. No. 201, s. 2016; and
|
Salary Grade |
Step 1 |
Step 2 |
Step 3 |
Step 4 |
Step 5 |
Step 6 |
Step 7 |
Step 8 |
|
1 |
10,510 |
10,602 |
10,695 |
10,789 |
10,884 |
10,982 |
11,076 |
11,173 |
|
2 |
11,200 |
11,293 |
11,386 |
11,480 |
11,575 |
11,671 |
11,767 |
11,864 |
|
3 |
11,914 |
12,013 |
12,112 |
12,212 |
12,313 |
12,414 |
12,517 |
12,620 |
|
4 |
12,674 |
12,778 |
12,884 |
12,990 |
13,097 |
13,206 |
13,315 |
13,424 |
|
5 |
13,481 |
13,606 |
13,705 |
13,818 |
13,932 |
14,047 |
14,163 |
14,280 |
|
6 |
14,340 |
14,459 |
14,578 |
14,699 |
14,820 |
14,942 |
15,066 |
15,190 |
|
7 |
15,254 |
15,380 |
15,507 |
15,635 |
15,765 |
15,895 |
16,026 |
16,158 |
|
8 |
16,282 |
16,433 |
16,585 |
16,739 |
16,895 |
17,051 |
17,209 |
17,369 |
|
9 |
17,473 |
17,627 |
17,781 |
17,937 |
18,095 |
18,253 |
18,413 |
18,575 |
|
10 |
18,718 |
18,883 |
19,048 |
19,215 |
19,384 |
19,567 |
19,725 |
19,898 |
|
11 |
20,179 |
20,437 |
20,698 |
20,963 |
21,231 |
21,502 |
21,777 |
22,055 |
|
12 |
22,149 |
22,410 |
22,674 |
22,942 |
23,212 |
23,486 |
23,763 |
24,043 |
|
13 |
24,224 |
24,510 |
24,799 |
25,091 |
25,387 |
25,686 |
25,989 |
26,296 |
|
14 |
26,494 |
26,806 |
27,122 |
27,442 |
27,766 |
28,093 |
28,424 |
28,759 |
|
15 |
29,010 |
29,359 |
29,713 |
30,071 |
30,432 |
30,799 |
31,170 |
31,545 |
|
16 |
31,765 |
32,147 |
32,535 |
32,926 |
33,323 |
33,724 |
34,130 |
34,541 |
|
17 |
34,781 |
35,201 |
35,624 |
36,053 |
36,487 |
36,927 |
37,371 |
37,821 |
|
18 |
38,085 |
38,543 |
39,007 |
39,477 |
39,952 |
40,433 |
40,920 |
41,413 |
|
19 |
42,099 |
42,730 |
43,371 |
44,020 |
44,680 |
45,350 |
46,030 |
46,720 |
|
20 |
47,037 |
47,742 |
48,457 |
49,184 |
49,921 |
50,669 |
51,428 |
52,199 |
|
21 |
52,554 |
53,341 |
54,141 |
54,952 |
55,776 |
56,612 |
57,460 |
58,322 |
|
22 |
58,717 |
59,597 |
60,491 |
61,397 |
62,318 |
63,252 |
64,200 |
65,162 |
|
23 |
65,604 |
66,587 |
67,585 |
68,598 |
69,627 |
70,670 |
71,730 |
72,805 |
|
24 |
73,299 |
74,397 |
75,512 |
76,644 |
77,793 |
78,959 |
80,143 |
81,344 |
|
25 |
82,439 |
83,674 |
84,928 |
86,201 |
87,493 |
88,805 |
90,136 |
91,487 |
|
26 |
92,108 |
93,488 |
94,889 |
96,312 |
97,755 |
99,221 |
100,708 |
102,217 |
|
27 |
102,910 |
104,453 |
106,019 |
107,608 |
109,221 |
110,858 |
112,519 |
114,210 |
|
28 |
114,981 |
116,704 |
118,453 |
120,229 |
122,031 |
123,860 |
125,716 |
127,601 |
|
29 |
128,467 |
130,392 |
132,346 |
134,330 |
136,343 |
138,387 |
140,461 |
142,566 |
|
30 |
143,534 |
145,685 |
147,869 |
150,085 |
152,335 |
154,618 |
156,935 |
159,288 |
|
31 |
198,168 |
201,615 |
205,121 |
208,689 |
212,318 |
216,011 |
219,768 |
223,590 |
|
32 |
233,857 |
238,035 |
242,288 |
246,618 |
251,024 |
255,509 |
260,074 |
264,721 |
|
33 |
289,401 |
298,083 |
|
|
|
|
|
|
8.3. Starting 01 January 2019, the modified salary schedule, fourth (4th) tranche of E.O. No. 201, s. 2016;
|
Salary Grade |
Step 1 |
Step 2 |
Step 3 |
Step 4 |
Step 5 |
Step 6 |
Step 7 |
Step 8 |
|
1 |
11,068 |
11,160 |
11,254 |
11,348 |
11,443 |
11,538 |
11,635 |
11,732 |
|
2 |
11,761 |
11,851 |
11,942 |
12,034 |
12,126 |
12,219 |
12,313 |
12,407 |
|
3 |
12,466 |
12,562 |
12,658 |
12,756 |
12,854 |
12,952 |
13,052 |
13,152 |
|
4 |
13,214 |
13,316 |
13,418 |
13,521 |
13,625 |
13,729 |
13,835 |
13,941 |
|
5 |
14,007 |
14,115 |
14,223 |
14,332 |
14,442 |
14,553 |
14,665 |
14,777 |
|
6 |
14,847 |
14,961 |
15,076 |
15,192 |
15,309 |
15,426 |
15,545 |
15,664 |
|
7 |
15,738 |
15,859 |
15,981 |
16,104 |
16,227 |
16,352 |
16,477 |
16,604 |
|
8 |
16,758 |
16,910 |
17,063 |
17,217 |
17,372 |
17,529 |
17,688 |
17,848 |
|
9 |
17,975 |
18,125 |
18,277 |
18,430 |
18,584 |
18,739 |
18,896 |
19,054 |
|
10 |
19,233 |
19,394 |
19,556 |
19,720 |
19,884 |
20,051 |
20,218 |
20,387 |
|
11 |
20,754 |
21,038 |
21,327 |
21,619 |
21,915 |
22,216 |
22,520 |
22,829 |
|
12 |
22,938 |
23,222 |
23,510 |
23,801 |
24,096 |
24,395 |
24,697 |
25,003 |
|
13 |
25,232 |
25,545 |
25,861 |
26,181 |
26,506 |
26,834 |
27,166 |
27,503 |
|
14 |
27,755 |
28,099 |
28,447 |
28,800 |
29,156 |
29,517 |
29,883 |
30,253 |
|
15 |
30,531 |
30,909 |
31,292 |
31,680 |
32,072 |
32,469 |
32,871 |
33,279 |
|
16 |
33,584 |
34,000 |
34,421 |
34,847 |
35,279 |
35,716 |
36,159 |
36,606 |
|
17 |
36,942 |
37,400 |
37,863 |
38,332 |
38,807 |
39,288 |
39,774 |
40,267 |
|
18 |
40,637 |
41,140 |
41,650 |
42,165 |
42,688 |
43,217 |
43,752 |
44,294 |
|
19 |
45,269 |
46,008 |
46,759 |
47,522 |
48,298 |
49,086 |
49,888 |
50,702 |
|
20 |
51,155 |
51,989 |
52,838 |
53,700 |
54,577 |
55,468 |
56,373 |
57,293 |
|
21 |
57,805 |
58,748 |
59,707 |
60,681 |
61,672 |
62,678 |
63,701 |
64,741 |
|
22 |
65,319 |
66,385 |
67,469 |
68,570 |
69,689 |
70,827 |
71,983 |
73,157 |
|
23 |
73,811 |
75,015 |
76,240 |
77,484 |
78,749 |
80,034 |
81,340 |
82,668 |
|
24 |
83,406 |
84,767 |
86,151 |
87,557 |
88,986 |
90,439 |
91,915 |
93,415 |
|
25 |
95,083 |
96,635 |
98,212 |
99,815 |
101,444 |
103,100 |
104,783 |
106,493 |
|
26 |
107,444 |
109,197 |
110,980 |
112,791 |
114,632 |
116,503 |
118,404 |
120,337 |
|
27 |
121,411 |
123,393 |
125,407 |
127,454 |
129,534 |
131,648 |
133,797 |
135,981 |
|
28 |
137,195 |
139,434 |
141,710 |
144,023 |
146,373 |
148,763 |
151,191 |
153,658 |
|
29 |
155,030 |
157,561 |
160,132 |
162,746 |
165,402 |
168,102 |
170,845 |
173,634 |
|
30 |
175,184 |
178,043 |
180,949 |
183,903 |
186,904 |
189,955 |
193,055 |
196,206 |
|
31 |
257,809 |
262,844 |
267,978 |
273,212 |
278,549 |
283,989 |
289,536 |
295,191 |
|
32 |
307,365 |
313,564 |
319,887 |
326,338 |
332,919 |
339,633 |
346,483 |
353,470 |
|
33 |
388,096 |
399,739 |
|
|
|
|
|
|
GOCCs which do not have sufficient funds to implement fully the salary schedules provided for above may adopt their respective salary schedules at lower rates but at a uniform percentage of the salaries across all positions for the GOCC.
In the implementation of such salary schedules, whether fully or at a uniform percentage, GOCCs shall ensure that they can fund on a sustainable basis the increased salaries, including the government counterpart to the Retirement and Life Insurance Premiums (RLIP), Pag-IBIG Contributions, PhilHealth Contributions, and Employees Compensation Insurance Premiums.
9. PROCEDURAL GUIDELINES. — The Human Resource Management Officer (HRMO)/Administrative Officer (AO), or its equivalent, of a GOCC shall prepare the Notices of Salary Adjustment (NOSAs) for incumbent officers/employees by following the format marked as Annex "B" or Annex "C", whichever is applicable, for approval by the Governing Board.
9.1 For personnel whose actual monthly salaries as of 31 December 2016 exceed the rates corresponding to Step 8 of the salary grade allocation of their positions as provided for by Section 8.1, the HRMO/AO shall no longer prepare NOSAs.
9.2 For personnel whose actual monthly salaries as of 31 December 2017 exceed the rates corresponding to Step 8 of the salary grade allocation of their positions as provided for by Section 8.2, the HRMO/AO shall no longer prepare NOSAs.
9.3 For personnel whose actual monthly salaries as of 31 December 2018 exceed the rates corresponding to Step 8 of the salary grade allocation of their positions as provided for by Section 8.3, the HRMO/AO shall no longer prepare NOSAs.
The NOSAs shall be issued to the personnel concerned, copy furnished the Government Service Insurance System (GSIS) or the Social Security System (SSS), as the case may be.
The compensation adjustment under this Circular shall be subject to the usual accounting and auditing rules and regulations, and to appropriate re-adjustment if found not in order. The personnel concerned shall refund any overpayments received.
10. RULES FOR ADJUSTING SALARIES. —
10.1 The salaries of an incumbent officer or employee shall be adjusted accordingly to the rates in the salary schedule corresponding to the designated steps of the salary grade allocations of their positions as of 31 December 2016, provided that their positions and salary grades, including SSL-exempt GOCCs that opted to adopt the Modified Salary Schedule under E.O. No. 201, are in accordance with the Index of Occupational Services, Occupational Groups, Classes, and Salary Grades issued under Budget Circular No. 2006-3 dated 17 May 2006, and the Index of Occupational Services attached to Corporate Compensation Circular No. 10 dated 15 February 1999, and additions/modifications thereto, whenever applicable.
10.2 If the actual monthly basic salary of an incumbent officer or employee as of 31 December 2016 falls between steps of the salary grade allocation of the position due to the grant of service award or as a result of demotion or transfer due to the exigency of the service, the salary shall be adjusted to the rate for the higher step in the applicable Salary Schedule.
10.3 If the actual monthly basic salary of an incumbent exceeds that for Step 8 of the salary grade allocation of the position as of 31 December 2016, the employee shall not be entitled to salary increase.
10.4 The salaries/wages of incumbent contractual/casual personnel as of 31 December 2016 may be adjusted to the rates corresponding to Step 1 of the salary grade allocations of their positions in the salary schedule in Section 8.1, effective 01 January 2017. The adjusted daily wage rates of casual personnel shall be computed by dividing the monthly rates by 22 work days per month.
10.5 Personnel who resigned/retired after 31 December 2016 shall be granted the difference between their salary rates prior to their resignation/retirement with the rates prescribed under the applicable period under Sections 8.1.
10.6 Compulsory retirees whose services have been extended beyond 31 December 2016 shall be entitled to salary increases effective 1 January 2017, following items 10.1 to 10.3 of this Circular, whichever is applicable. However, their retirement benefits, including Terminal Leave Benefits, shall be computed based on their monthly basic salaries as of the day prior to the effectivity of their retirement, consistent with existing laws, rules and regulations.
11. NON-DIMINUTION OF AUTHORIZED SALARIES. — In the implementation of this Circular, there shall be no diminution in the authorized salaries of incumbent officers and employees.
12. COLLECTIVE BARGAINING AGREEMENTS (CBAs) AND COLLECTIVE NEGOTIATION AGREEMENTS (CNA) IN THE GOCC SECTOR. — The Governing Boards of all covered GOCCs, whether Chartered or Non-chartered, may not negotiate the economic terms of their CBAs with their officers and employees.
CNA Incentives, which primarily cover savings from the COBs of Chartered GOCCs, shall continue to be governed by the policies and guidelines established by the DBM, but shall extend to cover non-chartered GOCCs to promote uniformity of allowable incentives in the GOCC Sector. Incentives allowed by the CSC such as, but not limited to, the Program on Awards and Incentives for Service Excellence, shall continue to be governed by the policies and guidelines of CSC, as well as other pertinent laws, rules and regulations.
13. FUND SOURCES. — The amounts required shall be charged against the GOCCs' approved Corporate Operating Budgets (COBs) under its Personnel Services (PS), provided that it shall be prohibited to source the payment from the following:
(a) Loans;
(b) Subsidy from the national government for the GOCC's operations, except for subsidy income or subsidy given by the DBM precisely for the payment of Personnel Services; and
(c) Sale of the GOCC's asset(s) for the sole purpose of compensation adjustment.
Furthermore, the GOCC shall not increase its service fees for the purpose of augmenting any deficiencies in the amounts required herein. Provided further, that the implementation of their programs/projects and attainment of performance targets for the year are not adversely affected.
14. RESPONSIBILITIES OF GOCCs. — GOCCs shall be responsible for the proper implementation of the provisions of this Circular. The responsible officers shall be held liable for any payment not in accordance with the provisions hereof without prejudice to the refund by the employees concerned of any excess or unauthorized payments.
15. SANCTIONS. — Failure to comply with the terms and conditions of this Circular shall be considered a serious offense of the GOCC in general, and the Governing Board and Management of the GOCC in particular. Upon prior notice and an opportunity to be heard, the GCG may impose any, or a combination, of the following sanctions:
(a) Withdraw and revoke any of the incentives that the members of the Governing Boards, officers and the rank-and-file employees would otherwise enjoy under R.A. No. 10149, and such other benefits that are not provided in R.A. 10149 and E.O. No. 36 (2017);
(b) Recommend to the President the non-reappointment or replacement of the Appointive Directors of the GOCC concerned; and
(c) Render the GOCC ineligible for the Performance Based Bonus/Performance Based Incentive.
16. RESOLUTION OF CASES. — Cases not covered by the provisions of this Circular shall be referred to the GCG for resolution.
17. EFFECTIVITY. — This Circular shall take effect immediately upon its publication in the Commission's website at www.gcg.gov.ph.
(SGD.) SAMUEL G. DAGPIN, JR.Chairman
(SGD.) MICHAEL P. CLORIBELCommissioner
(SGD.) MARITES C. DORALCommissioner
ANNEX A
Form Prescribed by GCG for Evaluation of Salary Grade in GOCC Positions
ANNEX B
For Regular Positions
Notice of Salary Adjustment
Date: ___________
_____________________
_____________________
_____________________
_______________:
Pursuant to GCG Memorandum Circular No. ____ dated ___________, implementing Executive Order No. 36, s. 2017, your salary is hereby adjusted effective January 1, 2017, as follows:
|
1. Adjusted monthly basic salary effective January 1, 2017, under the new Salary Schedule; SG ____, Step _____ |
P _________ |
|
2. Actual monthly basic salary as of December 31, 2016; SG ___, Step ___ |
_________ |
|
3. Monthly salary adjustment effective January 1, 2017 (1-2) |
P _________ |
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.
Very truly yours,
______________________
Position Title: ________________
Salary Grade: ________________
Item No./Unique Item No., FY _____ Personnel Services Itemization and/or Plantilla or Personnel: _______________________________
Copy furnished: GSIS
ANNEX C
For Contractual/Casual Personnel
Notice of Salary/Wage Adjustment
Date: ____________
_____________________
_____________________
_____________________
______________:
Pursuant to GCG Memorandum Circular No. ___ dated _________, implementing Executive Order No. 36, s. 2017, your salary/daily wage is hereby adjusted effective _________, as follows:
|
1. Monthly basic salary/daily wage rate under the new Salary Schedule; SG _______, |
P ________ |
|
2. Actual monthly basic salary/daily wage rate as of December 31, 2016; SG _____ |
________ |
|
3. Monthly salary adjustment/Daily wage adjustment effective _____ (1-2) |
P ________ |
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.
Very truly yours,
________________________
Position Title: _______________________
Salary Grade: _______________________
Copy furnished: GSIS
Footnotes
1. Adopting a Compensation and Position Classification System (CPCS) and a General Index of Occupational Services (IOS) for the GOCC Sector covered by Republic Act No. 10149, and for Other Purposes.
2. Further Rationalizing the System of Compensation and Position Classification in the National Government dated June 11, 1978.
3. Joint Resolution Authorizing the President of the Philippines to Modify the Compensation and Position Classification System of Civilian Personnel and the Base Pay Schedule of Military and Uniformed Personnel in the Government, and for Other Purposes.
4. GOCC Governance Act of 2011.
5. Section 6. Exemptions from OCPC Rules and Regulations. Agencies positions, or groups of officials and employees of the national government, including government owned or controlled corporations, who are hereafter exempted by law from OCPC coverage, shall observe such guidelines and policies as may be issued by the President governing position classification, salary rates, levels of allowances, project and other honoraria, overtime rates, and other forms of compensation and fringe benefits. Exemptions notwithstanding, agencies shall report to the President, through the Budget Commission, on their position classification and compensation plans, policies, rates and other related details following such specifications as may be prescribed by the President.
6. (9) Exempt Entities — Government agencies which by specific provision/s of laws are authorized to have their own compensation and position classification system shall not be entitled to the salary adjustments provided herein. Exempt entities shall be governed by their respective Compensation and Position Classification
Systems: Provided, That such entities shall observe the policies, parameters and guidelines governing position classification, salary rates, categories and rates of allowances, benefits and incentives, prescribed by the President: Provided, further, That any increase in the existing salary rates as well as the grant of new allowances, benefits and incentives, or an increase in the rates thereof shall be subject to the approval by the President, upon recommendation of the DBM: Provided, finally, That exempt entities which still follow the salary rates for positions covered by Republic Act No. 6758, as amended, are entitled to the salary adjustments due to the implementation of this Joint Resolution, until such time that they have implemented their own compensation and position classification system.
Cite This Law
Implementing Rules and Regulations of Executive Order (E.O.) No. 36, s. 2017, GCG Memorandum Circular No. 003-17, Aug 24, 2017 (Philippines)
Implementing Rules and Regulations of Executive Order (E.O.) No. 36, s. 2017, GCG Memorandum Circular No. 003-17 (Phil. 2017)
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