Relative to Salary Increase for National Government Employees

April 21, 1977

LETTER OF INSTRUCTIONS NO. 533

WHEREAS, the national position classification and compensation plan has not kept pace with cost of living and is competitive neither with those of most government-owned and controlled corporations, not with those of the private sector;

WHEREAS, the expected increase in cost of basic necessities will require some adjustment in the compensation of government personnel, particularly those in the lower income range; cd

WHEREAS, it is essential to formulate salary adjustments within the context of the financial capability of government and existing salary differentials among regular agencies of government and those who do not follow the national compensation plan;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, do hereby order and direct:

1.  A ten (10) percent salary adjustment across-the-board for personnel of the departments, bureaus, offices and agencies of the National Government and whose positions are allotted less than P600 a month as of March 31, 1977, in the national position classification and compensation plan, the adjustment to take effect May 1, 1977: Provided, That in no case shall the adjusted salary of an individual exceed P600/month; and Provided, That public school teachers should be specifically included in this salary adjustment, over and above that already granted them effective January 1, 1977.

2.  A thirty (30) percent implementation of the recommended upgrading of salaries in the National Government based on the findings of the Budget Commission in the 1976 Salary Survey of private entities, effective July 1, 1977.

3.  Implementation in full of the compensation levels of Career Executive Service officials (CESOs) as embodied in P.D. No. 847, the adjustment to take effect July 1, 1977.

4.  Officials and employees who have retired or are due to retire from the service within one (1) month immediately preceding the dates of implementation of the salary increases mentioned in numbers 1, 2, and 3 of this Letter of Instructions, but who otherwise are qualified beneficiaries thereof, shall be entitled to the retirement benefits that would have accrued to them had they retired at the established effectivity dates.

5.  Government-owned and controlled corporations, state colleges and universities, and agencies of the national government, who do not follow the national position classification and compensation plan, may be authorized to grant salary increases in accordance with the provisions of P.D. No. 985; Provided, That no salary increase may be authorized by virtue of this Letter of Instructions which will cause the compensation of any individual to exceed that which will result upon application of Nos. 1 and 2 above for equivalent positions in the regular agencies of government: Provided, That any change in compensation of personnel of organization not covered by the national position classification and compensation plan shall be subject to prior approval of the Budget Commission, which shall act in accordance with P.D. No. 985 and these instructions.

6.  The Commissioner of the Budget is hereby directed to:

a)  Make available the sum of P300 million or as much as may be necessary, to effect the aforementioned salary adjustments for agencies of the national government covered by the national position classification and compensation plans and such sums as are necessary to implement the salary increases for CESOs. For this purpose, the Commissioner is directed to use the proceeds of the increased specific tax on oil products which shall be earmarked to support releases of unprogrammed Salary Adjustment Fund appropriations and the release of budgetary reserves previously imposed.

b)  Propose, in coordination with the agencies concerned, measures appropriate for officials and employees of the Department of Foreign Affairs and other agencies of government stationed abroad.

c)  Conduct continuing studies on the compensation of critical groups of employees and other groups of professionals, with a view to recommending further refinements in the compensation network in pursuance of a more equitable pay system in the public service.

d)  Formulate the rules, guidelines, procedures and forms necessary to carry out the salary adjustments under these Instructions.

7.  This Order shall take effect immediately. casia

DONE in the City of Manila, this 21st day of April, in the year of Our Lord, Nineteen Hundred and Seventy-Seven.