Internal Revenue Service Career System in the Bureau of Internal Revenue

July 30, 1985

EXECUTIVE ORDER NO. 1042

PROVIDING FOR AN INTERNAL REVENUE SERVICE CAREER SYSTEM IN THE BUREAU OF INTERNAL REVENUE AND FOR OTHER PURPOSES

WHEREAS, the Bureau of Internal Revenue plays a critical and pivotal role in revenue generation especially during this period of national economic recovery;

WHEREAS, there is an imperative need to adopt and implement a Career System in the Bureau so as to bring about professionalization in the internal revenue service, to attract highly qualified persons to join the Bureau and to maintain a corps of dedicated, competent and career-oriented personnel necessary for maximum organizational efficiency and effectiveness; cd

WHEREAS, the implementation of the system requires the restructuring of the position classification and compensation scheme and the personnel staffing pattern of the Bureau as well as the granting of additional financial incentives as authorized in Presidential Decree No. 985;

WHEREAS, there is a need to provide the Commissioner of Internal Revenue greater flexibility in assigning and/or shifting personnel from one organizational unit of the Bureau to another to cope with exigencies and the requirements of the revenue service;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution and by Presidential Decree No. 1416, as amended do hereby order and direct the following:

SECTION 1. There shall be adopted and implemented an Internal Revenue Service Career System in the Bureau of Internal Revenue which shall encompass the selection, training, promotion, assignment, incentives and recognition of personnel.

SECTION 2. The position classes in the BIR shall be realigned, restructured and upgraded as provided in Annex A which forms part hereof;. asia dc

SECTION 3. There shall be established a standard staffing pattern in the Bureau, in accordance with Annex B of this Executive Order; provided, that positions under the Enforcement Officers and Tax Counselling Occupational groups shall be constituted into a pool from which assignment to duty in any division, revenue district office or branch shall be drawn, taking into account existing and anticipated workloads and the employees' capabilities and potential; provided, further, that such assignment shall not involve a reduction in rank, status or salary.

SECTION 4. There shall be granted to officials and employees of the Bureau allowances and fringe benefits as follows:

a. Allowances for cost of living, clothing, transportation and representation, quarters and similar benefits, including overtime pay at rates which shall not exceed those for officials and employees of any government financial institution such as the Central Bank of the Philippines, Development Bank of the Philippines or Philippine National Bank;

b. Reimbursement of actual legal expenses incurred by officials and employees acting in good faith in suits brought who appear in court and the Fiscals' Offices in collaboration with the Solicitor-General and/or Fiscals concerned at rates to the prescribed by the Commissioner of Internal Revenue;

c. Reimbursement of actual and necessary travelling and other expenses incurred by officers and employees of the Bureau in the course of official travel, upon approval of the Commissioner of Internal Revenue, notwithstanding the provisions of Presidential Decree No. 344;

d. Incentive award for outstanding work performance against them for acts committed in the performance of their official duties, upon their exoneration from administrative or criminal liability;

e. Hazard pay benefits to revenue officials and employees actually assigned in areas declared by the Ministry of National Defense as strife-torn or danger zones;

f. Special Counsel allowance for lawyers of the Bureau or service which contributes to the efficiency, economy or other improvement or otherwise results in direct benefits to the Bureau, at an amount to be fixed by the Commissioner of Internal Revenue.

g. Automatic one-step salary increase for all officials and employees who will retire under the compulsory retirement scheme, to be given one year before they reach the automatic retirement age, provided that officers and employees already receiving the maximum of the grade of their positions shall be adjusted to the equivalent of one salary step in accordance with the Compensation Schedule, and provided, further, that such officials and employees have rendered satisfactory service for the immediate past five years prior to retirement.

SECTION 5. The implementation of salary adjustments and the new staffing pattern shall be governed by the following guidelines;

a. The salary adjustments shall be implemented immediately. The implementation of allowances and fringe benefits as well as the new staffing pattern shall be phased, depending on availability of funds.

b. The first step of the salary grade shall be the hiring rate for new employees. cdt

c. An employee may be allowed a salary rate higher than the minimum of the graded allocation of the position in case he had previously received a higher salary in the government service; provided that such salary rate is within the grade allocation of the position.

d. If an employee is promoted from one class to another having an overlapping salary grade, he shall be entitled to the step next above that at which he was paid in the lower class.

e. Subject to certification by the Commissioner of internal Revenue that the employees' service are satisfactory, the employee shall be adjusted to the second step of his salary grade after one year at the first step, to the fourth step after one year at the third step, to the fifth step, after two years at the fourth step, to the sixth step after two years at the fifth step, to the seventh step after two years at the sixth step and the eighth step after two years at the seventh step.

f. Notwithstanding the provision of any other rules, no offices or employee shall receive a salary higher than the salary of his immediate superior.

g. Officials and employees presently occupying itemized positions and rendering continuous service shall be allowed to continue in office pending their reappointment to positions in the new staffing pattern. No incumbent officer or employee shall suffer a demotion in rank, change of status or reduction in salary in the implementation of the staffing pattern.

SECTION 6. Whenever a general increase in salary, allowances or benefits for government employees is granted, positions in the BIR shall likewise be automatically granted the same increase, notwithstanding the ceiling prescribed in this Executive Order.

SECTION 7. The amount appropriated in the BIR budget for Personal Services shall be used for the implementation of this Executive Order. Any deficiency in appropriation shall be funded from the BIR Special Fund, hereinafter referred to as the Fund, which is hereby created out of one and a half percent (1-1/2%) of the increase in total collections achieved during the immediate preceding year over that of the previous year.

SECTION 8. The rules and regulations needed to implement this Executive Order shall be issued by the Commissioner of Internal Revenue, subject to the approval of the Minister of Finance.

SECTION 9. This Executive Order shall take effect upon approval.

DONE in the City of Manila, this 30th day of July, in the year of Our Lord, Nineteen Hundred and Eighty-Five.

Published in the Official Gazette, Vol. 81 No. 33 page 3606 on August 19, 1985.