Supplemental Guidelines for Local Government Supplements to Teacher Compensation

December 18, 1985

LETTER OF INSTRUCTIONS NO. 1501

SUPPLEMENTAL GUIDELINES FOR LOCAL GOVERNMENT SUPPLEMENTS TO TEACHER COMPENSATION

 

WHEREAS, elementary school teachers are stationed in all parts of the country, educating the children of residents in all municipalities and cities;

WHEREAS, The Magna Carta for Teachers and the Special Education Fund Act, R.A. No. 4670 (as amended) and R.A. No. 5447 (as amended) respectively, recognize the principle of additional compensation for school teachers from local funds;

WHEREAS, it is necessary to inject an element of flexibility in the utilization of Local School Board and General Funds, so as to make local government units more fully supportive of the school system.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by Law, do hereby Order and Instruct:

1. Pursuant to Sec. 28 (c) of P.D. No. 477 (Local Fiscal Administration Decree), local funds may not be appropriated to increase or adjust salaries or wages of officials and employees of the national government assigned in the local government. It shall be understood, however, that the General Fund of local government units may be used for purposes of augmenting allowances and benefits to schoolteachers;

2. Elementary school teachers and other national employees defined as "schoolteacher" under R.A. No. 4670, who are actually rendering service as such but excluding those who are on detail elsewhere and who are performing non-teaching functions, may receive additional allowances, bonuses and other benefits from the General Fund of the province, city or municipality in which they are rendering service, as an exception to the provisions of LOI No. 779 dated December 6, 1978 which otherwise restricts payments to national officials: Provided, That schoolteachers rendering service in municipalities may receive allowances and benefits from the province and/or the municipality concerned;

3. Provincial School Board Funds may be used to provide compensation supplements to public schoolteachers, including elementary teachers in municipalities of the province and teachers of tertiary level schools within the Ministry of Education, Culture and Sports which are located in the province, in addition to the other authorized recipients pursuant to the rules and regulations of R.A. No. 5447 (as amended);

4. City School Board Funds may be used to provide compensation supplements to schoolteachers in national secondary and tertiary level schools within the Ministry of Education, Culture and Sports which are located in the city, in addition to the other authorized recipients pursuant to the rules and regulations of R.A. No. 5447 (as amended);

5. The total of allowances and benefits received from all local sources (provincial, municipal or city, as the case may be and whether from the General Fund or Special Education Funds) shall not exceed the limits provided under paragraph no. 2.4 of LOI No. 1462, i.e., "one hundred percent (100%) of basic salary in first class local government units, seventy five percent (75%) in second and third class local government units and fifty percent (50%) in fourth and lower classes of local government units: Provided: That existing rates may continue in the case of local government units that presently exceed these rates"; CHTAIc

6. It is understood that supplemental allowances shall be kept within the funding capacity of the local government unit concerned, and that the Local School Board and local government units have the discretion to decide upon the proportion of local funds that may be used for compensation supplements, observing the ceilings established by pertinent law and regulations;

7. The system of exclusive priority established under paragraph 1.3 of LOI No. 1462 is hereby suspended, in view of the desire of government to give priority to compensation improvements for education personnel;

8. Under no circumstances may Local School Board funds revert to the General Fund of a local government unit. Any unexpended balances shall be retained in the nature of a Trust Fund to further the objectives of the Special Education Fund;

9. The provisions of LOI No. 1462 and the Rules and Regulations of R.A. No. 5447 (as amended) are hereby accordingly modified; cHDAIS

10. The request of the Division Superintendent of Schools of Batangas for the use of unexpended Provincial School Board Funds for the benefit of Batangas schools is hereby approved. Pending requests on adjustments of teacher compensation supplements and related matters which are covered by this Letter, including those from teachers of Iloilo City, Angeles City and Camarines Sur and which have been recommended by the local government units concerned and the Minister of Education, Culture and Sports, are hereby approved. The Minister of Education, Culture and Sports shall advise all concerned of this action. Future requests shall be acted on by the Ministries of Local Government and of Education, Culture and Sports and the Office of Budget and Management, in accordance with such procedure as they shall develop.

10. This Letter shall take effect immediately and shall be self-executory, without need for the issuance of implementing rules and regulations. The Minister of Education, Culture and Sports, the Minister of the Budget, the Minister of Local Government, and the Minister of Finance shall update existing rules and regulations for the guidance of all concerned.

DONE in the City of Manila, this 18th day of December, nineteen hundred eighty five.