Rules and Regulations on the Standardization of Compensation and Position Classification in the Government

September 30, 1989

DBM NATIONAL COMPENSATION CIRCULAR NO. 56-89

 

1. PURPOSE

This Circular is being issued to prescribe rules and regulations to govern the implementation of a revised Compensation and Position Classification System, as mandated under R.A. No. 6758 entitled "An Act Prescribing a Revised Compensation and Position Classification System in the Government and for Other Purposes."

2. COVERAGE

All positions whether permanent, temporary, contractual, casual or emergency in nature, appointive or elective; on full or part-time basis now existing or hereafter created in the national government.

3. EXEMPTIONS

3.1 Consultants and experts hired by government entities for a limited period to perform specific activities or services with definite expected outputs who will continue to be compensated pursuant to present laws, rules and regulations until these are revised or amended; TIEHDC

3.2 Student laborers and apprentices and others similarly situated, who will continue to be compensated pursuant to present laws, rules and regulations until these are revised or amended;

3.3 Uniformed members of the Armed Forces of the Philippines (AFP) and commissioned officers and enlisted personnel of the National Mapping and Resource Information Authority (NAMRIA) who are covered by R.A. No. 6638 and the Integrated National Police (INP) who are covered by R.A. No. 6648; and

3.4 Laborers hired as part of a job contract (pakiao), those paid on a piece-meal basis, including mail contractors and others similarly situated.

4. DEFINITION OF TERMS

4.1 The present salary of an incumbent for purposes of this Circular shall mean the actual basic salary rate received as of June 30, 1989 inclusive of cost-of-living allowance, incentive allowance, inflation-connected allowance and such other allowances integrated with the basic salary of present incumbents under National Compensation Circular (NCC) No. 59.

4.2 Compensation rate is the present salary of an incumbent as defined in the preceding sub-paragraph plus the allowances/additional compensation in cash or in kind being received by the incumbent as of July 1, 1989 not integrated into the standardized salary rates and continue to be authorized pursuant to Section 12 of R.A. No. 6758.

4.3 Transition allowance shall mean the excess of the present salary of the incumbent as defined herein over the eighth step of the grade allocation of his position.

5. SCHEDULE OF IMPLEMENTATION OF SALARY ADJUSTMENTS

5.1 No increase in salary shall take effect even beyond 1992 until R.A. No. 6758 is amended with respect to the President and Vice President of the Republic of the Philippines, the Senate President, the Speaker of the House of Representatives, the Senators and Members of the House of Representatives.

5.2 Salary adjustments for the positions of Department Assistant Secretary and Department Undersecretary shall be deferred for one (1) year and shall take effect only on July 1, 1990. Salary adjustments for the positions of Department Secretary shall take effect on July 1, 1992. However, the salary rates authorized for the positions of Department Assistant Secretary, Department Undersecretary and Department Secretary under R.A. No. 6758 shall be used in the computation of the retirement benefits for those who retire under existing retirement laws within the aforecited periods. IHCSTE

5.3 Salary adjustments for all other positions covered under this Circular shall take effect on July 1, 1989.

6. IMPLEMENTING PROCEDURES

6.1 The Human Resource Management Officer (Personnel Officer)/Administrative Officer of the government entity concerned shall prepare for purposes of this Circular, a Plantilla of Position Allocation, Appointment and Salary Adjustment (PPAASA) (Annex A) based on the Position Allocation List (PAL) issued by the Department of Budget and Management pursuant to National Compensation Circular No. 58.

6.2 A PPAASA shall also be prepared for contractual, casual and emergency positions.

6.3 The original and three (3) copies of each of the said PPAASA which shall be certified correct by the Human Resource Management Officer/Administrative Officer and approved by the Head of the government entity shall be submitted for post-audit, within thirty (30) days after the receipt of the PAL, to the Compensation and Position Classification Bureau (CPCB), DBM or to the appropriate DBM Regional Office for regionalized offices. CPCB or the DBM Regional Office shall examine and verify the said Plantilla based on its records and the PAL issued, and certify the PPAASA accordingly. The certified copies shall then be distributed as follows:

6.3.1 one copy to the Civil Service Commission Regional Office and Field Office concerned;

6.3.2 one copy to the Commission on Audit, for compliance with auditing requirements;

6.3.3 one copy to the Office of origin concerned for proper implementation; and

6.3.4 the original shall remain with the CPCB or DBM Regional Office for records, control and post-audit purposes.

6.4 Payment of salary adjustments, if any, can be made as soon as the plantilla or payroll for the purpose has been prepared and approved by the Head of the government entity without waiting for the return of the certified copy from the CPCB or DBM, Regional Office.

6.5 Any salary adjustment under this Circular shall be subject to appropriate adjustments if upon review by DBM it is found to be not in order. The recipient official/employee shall refund any overpayment made.

6.6 The Civil Service Commission shall prescribe the rules and regulations on the PPAASA governing the status and preparation of appointments and other personnel action.

6.7 The Head of the government entity shall notify the official/employee of any change in his position title, the corresponding salary grade of his position and salary adjustment, if any, through a Notice of Position Allocation and Salary Adjustment (For Individuals) (Annex B). The information in the Notice shall conform to the entries in the PPAASA submitted to the DBM as to total compensation, position title, salary grade and salary adjustment. A copy of this Notice shall be furnished the GSIS, if the official/employee is a member thereof.

6.8 For officials/employees having similar data and information such as classification of position, salary grade, present salary and adjusted salary, a Notice of Position Allocation and Salary Adjustment (For Groups) (Annex C) shall be issued in lieu of the form prescribed in paragraph 6.7. A copy of the Notice shall be furnished the GSIS if the beneficiaries are members thereof.

7. COMPENSATION RULES

7.1 The Salary Schedule prescribed in Section 7 of R.A. No. 6758 shall be used for positions that are paid the annual or monthly rates.

7.2 An incumbent whose present salary is below the first step of the salary grade allocation of his position shall receive the first step of the salary grade. SHcDAI

7.3 An incumbent whose present salary falls between the steps of the salary grade allocation of his position shall be adjusted to the next higher step.

7.4 An incumbent whose present salary coincides with any of the steps of the salary grade allocation of his position shall continue to receive his present salary.

7.5 An incumbent whose present salary exceeds the eighth step of the salary grade allocation of his position shall continue to receive that salary, the excess therefrom shall be referred to as transition allowance. An illustrative example for determining transition allowance is shown in Annex D.

7.6 The transition allowance shall be reduced by the amount of salary adjustment that the incumbent shall receive in the future.

7.7 The transition allowance shall be treated as part of basic salary for purposes of computing retirement pay, year-end bonus and other similar benefits.

7.8 Present incumbents shall not suffer a reduction of duly authorized compensation rates as a result of this standardization.

7.9 Notwithstanding any of the foregoing provisions, no subordinate officer or employee shall be adjusted to a salary rate beyond one step lower than that of his immediate supervisor except for incumbents with transition allowance as defined under sub-paragraph 4.3 above and, by virtue of Section 8 of R.A. No. 6758, the Department Service Chiefs, Head Executive Assistants, Bureau Directors and Department Regional Directors; and the Undersecretaries in CY 1990.

7.10 The determination of allowable salaries for new appointments, promotions, and other subsequent personnel actions shall be governed by existing and pertinent laws, rules and regulations on the matter.

7.11 Allowance/Additional Compensation which shall be incorporated with present basic salary are as listed in NCC No. 59.

7.12 Contractual employees whose salaries are paid out of lump sum appropriations shall be entitled to the same salary adjustments as those of regular employees provided in this Circular: Provided, That the adjusted salary rates shall be deemed inclusive of the 30% premium for professional positions covered by NCC, No. 53. Contractual employees will however still be entitled to the 20% premium over the minimum hiring rate given to regular employees occupying similar positions or performing substantially the same duties and responsibilities.

7.13 The Wage Rates of daily paid employees shall be computed by dividing the monthly salary rate shown in the Salary Schedule of R.A. No. 6758 by twenty-two (22) working days provided that the total wages received by a daily paid employee in a month shall not exceed said monthly salary rate.

8. UNIFORMED PERSONNEL

8.1 The base pay of the uniformed personnel of the Armed Forces of the Philippines (AFP) and the Integrated National Police (INP) shall be as prescribed in the salary schedule for these personnel in R.A. No. 6638 and R.A. No. 6648.

8.2 All existing types of allowances authorized for uniformed personnel of the AFP, the INP and the commissioned officers and enlisted men of the NAMRIA such as cost of living allowance, longevity pay, quarters allowance, subsistence allowance, clothing allowance, hazard pay and other allowances shall continue to be authorized.

8.3 The longevity pay of uniformed personnel of the INP shall include those services rendered as uniformed members of the police, jail and fire departments of the local government units prior to police integration.

9. LOCAL GOVERNMENT PERSONNEL

The Joint Commission on Local Government Personnel Administration shall issue rules and procedures for the proper implementation of R.A. No. 6758 for officials and employees of local government units.

10. COA PERSONNEL AND OTHERS ON ADDITIONAL COMPENSATION

10.1 Officials and employees of the Commission on Audit (COA) are prohibited from receiving salaries, honoraria, bonuses, allowances or any other form of emoluments or additional compensation whether in cash or in kind from the government entities where they are assigned to provide services which are part of their regular functions or of the mandated function of COA.

10.2 In like manner government entities including GOCCs, GFIs and LGUs are prohibited from assessing or billing other government entities, GOCCs, GFIs, and LGUs for services rendered by its officials and employees as part of their regular functions and the mandated functions of the agency for purposes of paying additional compensation to said officials and employees.

11. STATE UNIVERSITIES AND COLLEGES

11.1 The allocation of positions of President and Vice President and other executive positions in State Universities and Colleges (SUCs) shall be based on the level of the SUC where they are assigned. The SUC level in turn shall be based on the following factors: student enrolment, faculty profile, number of nonteaching personnel, program offering, level of research function in terms of appropriation, level of extension services function in terms of appropriation, length of existence as a State University or College, number of buildings, area of campus/sites in hectares, and annual income. cTCaEA

11.2 The DBM, in consultation with Universities and Colleges, shall prepare the guidelines for the levelling of SUCs based on the above factors.

11.3 The SUC levelling as indicated in the Position Allocation List for purposes of implementing RA 6758, may be re-evaluated upon request of the SUC concerned after the issuance of the guidelines mentioned in Section 11.2.

12. FUNDING SOURCE

12.1 The amount for the implementation of this Circular shall be charged against the appropriations set aside for the purpose in the 1989 General Appropriations Act. Pursuant to Section 27 of Republic Act No. 6688, savings generated in one department, bureau, office or agency shall be used to augment deficiencies in other departments, bureaus, offices or agencies.

12.2 Any deficiency in the appropriations for salary standardization within an agency may be charged against actual obligations savings.

12.3 Any further deficiency shall be covered by additional allotments to be issued to all agencies concerned chargeable against the reserves pursuant to Administrative Order No. 137. Savings for this purpose shall refer to the following:

a. Savings from allotments released to the respective agencies in 1989;

b. Unreleased allotments out of appropriations authorized for each agency in R.A. No. 6688; and

c. Unreleased allotments out of the lump-sum appropriations authorized on pages 1199 to 1225 of R.A. No. 6688 which shall be made available to cover up any deficiency in the implementation of the salary standardization.

12.4 In the meantime, all agencies may pay salary adjustments from available balances in their respective bank accounts in order to expedite payment.

13. REPORTING REQUIREMENTS

The Chief Accountant of each government entity shall accomplish and submit to the National Accounting and Finance Bureau of the DBM a statement of actual payments (Annex E) of salary adjustments made, not later than November 15, 1989 or thirty (30) days after payment, whichever comes earlier.

14. RESPONSIBILITY OF THE HEAD OF GOVERNMENT ENTITY

The Head of a government entity shall be responsible for the submission of the required reports. DaIAcC

15. CONTRIBUTIONS

The salary adjustments herein authorized are subject to the mandatory requirements of GSIS life and retirement insurance premiums, and Home Development Mutual Fund (HDMF) contribution, if the recipient is a member of the GSIS and HDMF, pursuant to RA 660 and CA 186 with respect to retirement and life insurance premiums.

16. REQUESTS FOR RECONSIDERATION

Requests for reconsideration or review of the allocation of positions and/or salary grade assignments must be submitted to DBM within sixty (60) days after receipt of the Position Allocation List by the agency concerned. The request should be signed by the agency head and must identify the position to be reconsidered, the allocation or salary grade sought and the explanation for the request. The reconsideration action taken by DBM shall be effective July 1, 1989.

17. SAVING CLAUSE

Cases not covered by the provisions of this Circular shall be referred to the Secretary of Budget and Management for resolution.

18. EFFECTIVITY

This Circular shall take effect July 1, 1989.

(Sgd.) BENJAMIN E. DIOKNOActing Secretary