Rules and Regulations on the Grant of Compensation Adjustment to National Government Personnel ( DBM National Budget Circular No. 516-08 )

June 20, 2008

DBM NATIONAL BUDGET CIRCULAR NO. 516-08

 

1.0 Purpose

This Circular is issued to prescribe the rules and regulations governing the grant of compensation adjustments to national government personnel effective July 1, 2008, as authorized under Executive Order (EO) No. 719 dated May 1, 2008.

2.0 Coverage

2.1 National Government Agencies (NGAs) Including State Universities and Colleges (SUCs)

2.1.1 Civilian Personnel

 The 10% salary increase covers all authorized permanent, contractual and casual positions, appointive or elective, on full-time or part-time basis, now existing or hereafter created in NGAs, including SUCs, which are covered by RA No. 6758 (Compensation and Position Classification Act of 1989), as amended.

2.1.2 Military/Uniformed Personnel

 The 10% base pay increase covers military/uniformed personnel of the following agencies:

2.1.2.1 Armed Forces of the Philippines (AFP) under the Department of National Defense;

2.1.2.2 Philippine National Police (PNP),Bureau of Fire Protection (BFP) and Bureau of Jail Management and Penology (BJMP) under the Department of the Interior and Local Government; TAECaD

2.1.2.3 Philippine Coast Guard (PCG) under the Department of Transportation and Communications; and

2.1.2.4 National Mapping and Resource Information Authority (NAMRIA) under the Department of Environment and Natural Resources.

2.2 Government-Owned or Controlled Corporations (GOCCs)

All authorized permanents contractual and casual positions, on full-time or part-time basis, now existing or hereafter created in GOCCs which are covered by RA No. 6758, as amended, are covered by the 10% salary increase, subject to the availability of corporate funds.

3.0 Exclusions

The following personnel are not covered by the compensation adjustments authorized under said EO in view of the provisions of existing laws, rules and regulations:

3.1 Positions in government entities which are exempted by law from the coverage of RA No. 6758, as amended;

3.2 Positions not entitled to salary increase under the 1987 Philippine Constitution until after the expiration of the terms of the incumbents during which such increase was approved, such as the President of the Philippines, Vice-President of the Philippines, Senators and Members of the House of Representatives;

3.3 Those with services hired without employee-employer relationships and funded from non-Personal Services appropriation/budget, as follows:

3.3.1 Consultants and experts hired by government entities for a limited period to perform specific activities or services with expected outputs who shall be continually compensated pursuant to existing applicable laws, rules and regulations;

3.3.2 Laborers hired through job contracts (pakyaw) and those paid on piecework bases;

3.3.3 Student laborers, apprentices; and

3.3.4 Others similarly situated who shall be continually compensated pursuant to existing applicable laws, rules and regulations.

4.0 Definition of Terms

For purposes of this Circular, the following terms shall be construed to mean as follows:

4.1 Actual monthly basic salary is the monthly basic salary of an incumbent civilian government personnel received as of June 30, 2008, inclusive of Step Increment/s and Transition Allowance, if any, but exclusive of all allowances and benefits regularly paid in addition to the monthly basic salary. cDTaSH

4.2 Transition Allowance is the amount of excess of the actual monthly basic salary of an incumbent civilian government personnel over the salary corresponding to Step 8 of the salary grade allocation of his/her position.

4.3 Adjusted monthly basic salary is the monthly salary to be received by civilian government personnel effective July 1, 2008.

4.4 Actual monthly base pay is the monthly base pay of an incumbent military/uniformed personnel received as of June 30, 2008, exclusive of Longevity Pay and all allowances/benefits regularly paid in addition to the monthly base pay.

4.5 Adjusted monthly base pay is the monthly base pay to be received by military/uniformed personnel effective July 1, 2008.

5.0 General Guidelines

5.1 Compensation Adjustments for Civilian Personnel

5.1.1 Incumbent civilian personnel shall receive the salaries in the Salary Schedule in Annex "A" which correspond to the designated salary steps of the salary grade allocations of their positions as of June 30, 2008 in line with Sections 1.a.i and 1.b of EO No. 719.

5.1.2 If the actual monthly basic salary including Transition Allowance of an incumbent as of June 30, 2008 is already lower than the salary corresponding to Step 8 of the salary allocation of his/her position in the Salary Schedule in Annex "A",his/her adjusted monthly basic salary as of July 1, 2008 shall correspond to Step 8 of his/her salary grade allocation.

5.1.3 If the actual monthly basic salary including Transition Allowance of an incumbent as of June 30, 2008 is higher than the salary corresponding to Step 8 of the salary grade allocation of his/her position in the Salary Schedule in Annex "A", he/she is not entitled to the 10% salary increase. He/She shall continue to receive such excess which shall be referred to as Transition Allowance.

5.1.4 A compulsory retiree whose services has been extended beyond June 30, 2008 shall likewise be entitled to the authorized 10% salary increase effective 2008. However, his/her retirement benefits, including terminal leave benefit shall be computed based on the monthly salary as of June 30, 2008. This rule is in line with the pertinent section of Civil Service Commission (CSC) Memorandum Circular No. 15, s. 1999, CSC Resolution No. 020365 adopted on March 7, 2002 and related CSC Resolutions. DcITHE

5.1.5 The wages/salaries of casual/contractual employees as of June 30, 2008 which are paid out of lump-sum appropriations or project funds shall be adjusted to the wages/salaries corresponding to step 1 of the salary grade allocations of their positions effective July 1, 2008. The daily wage rate of a casual employee shall be computed by dividing the monthly salary corresponding to Step 1 of the salary grade allocation of the position in the Salary Schedule in Annex "A" by 22 work days.

5.1.6 The rates of the Special Allowances authorized under special laws to personnel of certain national government agencies, which are intended as advance implementation of future salary increases that may be granted to government personnel, shall be reduced correspondingly by the amount equivalent to the salary increase granted under EO No. 719. Accordingly, the portion of the Special Allowance correspondingly to the salary increase shall be converted as part of the adjusted monthly basic salary of the incumbent.

5.2 Compensation Adjustment for Military/Uniformed Personnel

5.2.1 The incumbent military/uniformed personnel shall receive the base pay corresponding to their ranks as provided in Annex "B",in line with Section 1.a.ii, EO No. 719.

5.2.2 The adjusted monthly base pay rates in Annex "B" shall be used as bases for computing the adjustment in Longevity Pay for military/uniformed personnel, consistent with the provisions of RA No. 1134, as amended by RA No. 3725 and RA No. 6975.

5.3 Other Allowances and Benefits

All existing rates of allowances and benefits which are computed at percentages of salaries/base pay shall not be adjusted, notwithstanding the 10% salary/base pay increase authorized under EO No. 719, except for the year-end bonus, government counterpart contributions to Retirement and Life Insurance Premiums (RLIP), PAG-I.B.I.G, PHILHEALTH and Employees Compensation Insurance Premiums (ECIP) and Longevity Pay for military/uniformed personnel.

5.4 GOCCs with Inadequate/Insufficient Funds

GOCCs which do not have adequate or sufficient funds to pay the salary increases shall only partially implement the adjusted monthly salary per Annex "A", Provided, That any partial implementation shall be at a uniform percentage rate for all positions in the GOCC concerned and shall likewise consider the amounts needed for the corresponding adjustments in year-end bonus and government counterpart contributions to RLIP, PAG-I.B.I.G, PHILHEALTH and ECIP. Annex "C" illustrates the computation of compensation adjustments which are partial and at uniform percentage rates. EAHcCT

6.0 Fund Sources

6.1 For NGAs, the amounts required to implement the compensation adjustments due to the 10% salary/base pay increase in FY 2008 shall be charged against the Miscellaneous Personnel Benefits Fund authorized under RA No. 9498, the FY 2008 General Appropriations Act. However, the amounts required to implement the compensation adjustments for casual and contractual employees shall be sourced from their respective lump-sum appropriations for salaries/wages included in agency FY 2008 appropriations/budgets.

6.2 For GOCCs, the amount shall be charged against their respective corporate funds in the approved corporate operating budgets. The use of funds for the purpose shall be subject to the approval of their respective governing boards in accordance with applicable laws.

7.0 Release of Funds

7.1 The Department of Budget and Management (DBM) shall release the funds needed to implement the authorized compensation adjustments in the NGAs concerned based on the number of filled positions as of June 30, 2008.

7.2 Initially, the release of funds shall cover the requirements for July to September 2008. The requirements for October to December 2008 shall be released upon submission by the operating units of agencies concerned of the following data/report to DBM:

7.2.1 Report of newly filled authorized positions from July 1 up to the date of report, subject to the moratorium and policy on the filling of positions/hiring of personnel provided under Circular Letter No. 2008-7 dated June 2, 2008. Said report shall reflect information, i.e.,names, positions and total number of personnel hired; and 

7.2.2 Statement of Allotments, Obligations and Balances as of September 30, 2008, highlighting the amount of allotments received and corresponding obligations incurred for compensation adjustments.

8.0 Notice of Salary Adjustment

8.1 The Head of the NGA/GOCC shall notify each regular, casual and contractual employee concerned of the salary adjustment in accordance with this Circular through a Notice of Salary Adjustment (for individuals without Transition Allowance, Annex "D-1"; and for individuals with Transition Allowance, Annex "D-2"). TSHIDa

8.2 Copies of the Notices shall be furnished the Government Service Insurance System, if the employees are members thereof, and the Commission on Audit.

9.0 Plantilla of Personnel and Salary Adjustment Form (PPSAF)

9.1 GOCCs implementing the herein salary increase shall likewise accomplish the Plantilla of Personnel and Salary Adjustment Form (PPSAF) for regular positions as shown in Annex "E". A separate PPSAF shall be prepared for casual and contractual positions.

9.2 The original and three (3) copies of said PPSAF, certified correct by the Human Resource Management Officer/Administrative Officer and approved by the Head of GOCC concerned, shall be submitted within thirty (30) days after the grant of the salary increase to DBM. The DBM shall examine and verify the entries in the PPSAF and certify them accordingly. The PPSAF shall be distributed as follows:

 Original copy — with DBM for records, control and post-audit purposes,

1 copy — to the Civil Service Commission Regional Office and Field Office concerned; aSITDC

1 copy — to the COA, for compliance with auditing requirements;

1 copy — to the office of origin.

10.0 Responsibility of the Head of Agency

The Head of Agency shall be responsible for the implementation of the provisions of this Circular. He/She shall be held personally liable for any payment of compensation adjustment not in accordance with the provisions of this Circular without prejudice, however, to the refund by the employee concerned of any excess payment made to him/her.

11.0 Saving Clause

Cases not covered by the provisions of this Circular shall be referred to the DBM for resolution.

12.0 Effectivity

This Circular shall take effect July 1, 2008.

(SGD.) ROLANDO G. ANDAYA, JR.Secretary

ANNEX A

Monthly Salary Schedule for Civilian Government Personnel

Salary
Grade	Step 1	Step 2	Step 3	Step 4	Step 5	Step 6	Step 7	Step 8
1	6,149	6,303	6,460	6,622	6,788	6,958	7,131	7,310
2	6,703	6,871	7,042	7,219	7,398	7,583	7,773	7,968
3	7,307	7,489	7,675	7,868	8,063	8,266	8,471	8,684
4	7,891	8,087	8,290	8,496	8,710	8,928	9,150	9,379
5	8,522	8,735	8,953	9,176	9,406	9,642	9,882	10,130
6	9,204	9,434	9,670	9,911	10,160	10,414	10,673	10,941
7	9,848	10,092	10,346	10,604	10,870	11,141	11,420	11,707
8	10,538	10,801	11,070	11,348	11,630	11,921	12,220	12,525
9	11,275	11,557	11,846	12,143	12,446	12,756	13,077	13,401
10	12,026	12,328	12,635	12,951	13,275	13,608	13,948	14,297
11	12,748	13,066	13,392	13,726	14,071	14,423	14,784	15,151
12	13,512	13,850	14,197	14,552	14,915	15,289	15,670	16,061
13	14,323	14,682	15,048	15,424	15,809	16,205	16,611	17,025
14	15,181	15,562	15,950	16,349	16,758	17,178	17,607	18,046
15	16,093	16,494	16,907	17,329	17,763	18,208	18,662	19,130
16	17,059	17,484	17,921	18,371	18,829	19,301	19,784	20,277
17	18,082	18,534	18,997	19,471	19,961	20,459	20,970	21,494
18	19,168	19,647	20,138	20,642	21,158	21,685	22,229	22,784
19	20,318	20,825	21,346	21,880	22,428	22,988	23,562	24,150
20	21,537	22,075	22,626	23,194	23,773	24,367	24,976	25,601
21	22,397	22,958	23,532	24,120	24,722	25,340	25,975	26,623
22	23,294	23,876	24,473	25,084	25,712	26,355	27,014	27,688
23	24,224	24,830	25,453	26,089	26,739	27,409	28,094	28,797
24	25,196	25,825	26,472	27,132	27,812	28,506	29,219	29,950
25	26,203	26,859	27,529	28,218	28,922	29,646	30,386	31,148
26	27,250	27,931	28,631	29,346	30,080	30,831	31,603	32,393
27	28,340	29,050	29,777	30,520	31,282	32,065	32,866	33,689
28	29,474	30,212	30,967	31,740	32,534	33,346	34,181	35,036
29	30,653	31,420	32,205	33,010	33,836	34,682	35,549	36,436
30	34,939	35,813	36,709	37,626	38,566	39,531	40,518	41,530
31	48,915	50,138	51,390	52,675	53,991	55,342	56,725	58,143
32	55,902	57,300	58,732	60,201	61,706	63,248	64,830	66,450
33	69,878	––––––	––––––	––––––	––––––	––––––	––––––	––––––

 

ANNEX B

Monthly Base Pay Schedule for Military/Uniformed Personnel

		Philippine National	National
		Police/Bureau of Fire	Mapping and	Monthly
Armed Forces of the	Philippine Coast	Protection/Bureau of	Resource	Base Pay
Philippines	Guard	Jail Management and	Information	(In Pesos)
		Penology/Philippine	Authority
		Public Safety College
Enlisted Ranks
Candidate Soldier				7,751
Private	Apprentice Seaman	Police/Fire/Jail Officer I	Seaman, Third	9,466
			Class
Private, First Class	Seaman, Second		Seaman,	10,033
	Class		Second Class
Corporal	Seaman, First Class	Police/Fire/Jail Officer II	Seaman, First	10,635
			Class
Non-Commissioned
Officers
Sergeant	Petty Officer III		Petty Officer III	11,273
Staff Sergeant	Petty Officer II	Police/Fire/Jail Officer III	Petty Officer II	11,949
Technical Sergeant	Petty Officer I		Petty Officer I	12,667
Master Sergeant	Chief Petty Officer	Senior Police/Senior	Chief Petty	13,427
		Fire/Senior Jail Officer I	Officer
Senior Master	Senior Chief Petty	Senior Police/Senior		14,232
Sergeant	Officer	Fire/Senior Jail Officer II
Chief Master	Master Chief Petty	Senior Police/Senior
Sergeant	Officer	Fire/Senior Jail Officer		15,087
		III
		Senior Police/Senior
		Fire/Senior Jail Officer		15,992
		IV
Company Grade
Officers
Cadet		Cadet		15,992
Probationary Second				15,992
Lieutenant
Second Lieutenant	Ensign		Ensign	17,629
First Lieutenant	Lieutenant, Junior	Inspector	Lieutenant,	18,334
	Grade		Junior Grade
Captain	Lieutenant, Senior	Senior Inspector	Lieutenant,	19,067
	Grade		Senior Grade
Field Grade Officers
Major	Lieutenant	Chief Inspector	Lieutenant
	Commander		Commander	19,831
Lieutenant Colonel	Commander	Superintendent	Commander	20,624
Colonel	Captain	Senior Superintendent	Captain	21,449
General Officers
Brigadier General	Commodore	Chief Superintendent		22,307
Major General	Rear Admiral	Director		23,199
Lieutenant General	Vice Admiral	Deputy Director General		24,127
General		Director General		27,500

ANNEX C

Illustrative Examples of Compensation Adjustments which are Partial and at Uniform Percentage Rates

 

 

ANNEX D1

Notice of Salary Adjustment

Date: _________________

Mr./Ms. __________________

_________________________

_________________________

Sir/Madam:

Pursuant to Local Budget Circular No. 88 dated June 20, 2008, implementing Executive Order No. 719 dated May 1, 2008, your salary is hereby adjusted effective July 1, 2008, as follows: EDcIAC

1.	Adjusted monthly basic salary effective July 1, 2008
	under the new Salary Schedule: SG _____, Step ______	P______
2.	Monthly basic salary as of
	June 30, 2008: SG _____, Step _______	______
3.	Salary increase per month effective July 1, 2008 (1-2)	______

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.

Position Title: ____________________________

Salary Grade: _____________________________

Item No., FY 2008 Plantilla of Personnel): ______

Very truly yours,

___________________Local Chief Executive

ANNEX D2

Notice of Salary Adjustment

Date: _________________

Mr./Ms. __________________

_________________________

_________________________

Sir/Madam:

Pursuant to National Budget Circular No. 516 dated June 20, 2008, implementing Executive Order No. 719 dated May 1, 2008, your salary is hereby adjusted effective July 1, 2008, as follows:

1.	Adjusted monthly basic salary effective July 1, 2008
	under the new Salary Schedule: SG _____, Step 8	P__________
2.	Monthly basic salary as of
	June 30, 2008: SG ______, Step 8	__________
	Add: Transition Allowance	__________
	Total:	__________
3.	Salary increase per month effective July 1, 2008	0.00
4.	Remaining balance of Transition Allowance (1-2)	__________

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. SaCIAE

Position Title: ____________________________

Salary Grade: _____________________________

Item No./Unique Item No.,FY 200_ Personal Services Itemization

and/or Plantilla of Personnel: ________________

Very truly yours,

___________________Head of Agency

ANNEX E

Plantilla of Personnel and Salary AdjustmentExecutive Order No. 719 dated May 1, 2008