Salary Standardization Law 1y1431

Executive Order No. 201, s. 2016 Signed on February 19, 2016

MALACAÑAN PALACE MANILA BY THE PRESIDENT OF THE PHILIPPINES EXECUTIVE ORDER NO. 201 MODIFYING THE SALARY SCHEDULE FOR CIVILIAN GOVERNMENT PERSONNEL AND AUTHORIZING THE GRANT OF ADDITIONAL BENEFITS FOR BOTH CIVILIAN AND MILITARY AND UNIFORMED PERSONNEL WHEREAS, Congress, under Item 1 of its t Resolution No. 4, (s. 2009), inscribes, as among the governing principles of the Compensation and Position Classification System (CS), the payment of just and equitable compensation to all government personnel in accordance with the principle of equal pay for work of equal value and one that is generally comparable with those in the private sector doing comparable work in order to attract, retain and motivate a corps of competent civil servants; WHEREAS, to ensure this, the same t Resolution sets a periodic review of the government’s CS taking into the changes in skills and competency requirement in the bureaucracy, the relative demand for certain expertise, the possible erosion in the purchasing power due to inflation, and other factors; WHEREAS, Section 13 of Presidential Decree No. 985 and Item 17 (iv) of the above t Resolution authorize the President, upon recommendation of the Department of Budget and Management, to periodically revise or update the CS as well as the policies on and levels of allowances, benefits and incentives applicable to all government personnel; and WHEREAS, Congress has appropriated an amount of P57.91 Billion in Republic Act (RA) No. 10717 or the Fiscal Year 2016 General Appropriations Act (GAA), to cover the requirement to implement the compensation adjustment of civilian personnel and military and uniformed personnel in the National Government. NOW THEREFORE, I, BENIGNO S. AQUINO, III, President of the Philippines, by virtue of the powers vested in me by law, do hereby order: Section 1. Compensation Adjustment Strategy. To ensure that the compensation structure of government personnel is comparable with the prevailing rates in the private sector thereby attracting and retaining competent and committed civil servants, the existing CS is hereby revised or updated to conform with the following: a) Raise the minimum salary for Salary Grade 1 from the current rate of Nine Thousand Pesos (P9,000) to Eleven Thousand Sixty Eight Pesos (P11,068) to make it even more competitive with the market rates;

b) Bring the compensation of government personnel closer to their private counterparts to at least 70% of the median of the market for all salary grades; c) Eliminate overlaps in between salary grade allocations of government personnel to recognize differences in duties and responsibilities of the positions; d) Maximize the net take home pay of government personnel through the inclusion of additional benefits; and e) Strengthen the performance-based incentive system in recognition of government personnel who play a greater role and carry a heavier responsibility in attaining performance targets and delivering results. For the military and uniformed personnel (MUP), the compensation adjustment strategy shall be aligned with the objective of mitigating the fiscal crisis building up in their pension system and pursuing the pension reform. Section 2. Coverage. The modified Salary Schedule authorized herein shall apply to all civilian personnel in the Executive, Legislative and Judicial Branches, Constitutional Commissions and other Constitutional Offices, Government-Owned or Controlled Corporations (GOCCs) not covered by RA No. 10149, and local government units (LGUs); regardless of appointment status, whether regular, contractual or casual; appointive or elective; and on full-time or part-time basis. The new Provisional Allowance Schedule and the Officers’ Allowance shall apply only to the military personnel of the Department of National Defense (DND) and the uniformed personnel of the Department of the Interior and Local Government (DILG), the Philippine Coast Guard (PCG) and the National Mapping and Resource Information Authority (NAMRIA). The Mid-Year Bonus, Enhanced Performance-Based Bonus (PBB), and Productivity Enhancement Incentive provided herein shall apply to both civilian personnel, and MUP, except for the increase in Hazard Pay which applies only to the MUP. However, individuals whose services are engaged through job orders, contracts of service, consultancy contracts, and service contracts with no employer-employee relationship are excluded from the salary increase and benefits authorized herein. Section 3. Modified Salary Schedule, including Step Increments. The modified Salary Schedule for Civilian Personnel, to be implemented in four (4) tranches, shall be as follows: First Tranche Salary Grade 1

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

9,478

9,568

9,660

9,753

9,846

9,949

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33

10,159 10,883 11,658 12,488 13,378 14,331 15,368 16,512 17,730 19,077 20,651 22,328 24,141 26,192 28,417 30,831 33,452 36,409 39,768 43,439 47,448 51,826 56,610 61,971 67,690 73,937 80,760 88,214 96,354 117,086 135,376 160,924

10,255 10,985 11,767 12,644 13,504 14,466 15,519 16,671 17,900 19,286 20,870 22,564 24,396 26,489 28,740 31,183 33,831 36,857 40,259 43,974 48,032 52,466 57,308 62,735 68,524 74,849 81,756 89,301 97,543 118,623 137,174 165,752

10,351 11,089 11,878 12,725 13,630 14,602 15,670 16,830 18,071 19,496 21,091 22,804 24,655 26,790 29,066 31,536 34,215 37,312 40,755 44,517 48,625 53,112 58,014 63,508 69,369 75,771 82,764 90,402 98,745 120,180 138,996

10,449 11,193 11,990 12,844 13,759 14,740 15,823 16,992 18,245 19,709 21,315 23,045 24,916 27,094 29,396 31,893 34,603 37,771 41,258 45,066 49,224 53,767 58,730 64,291 70,224 76,705 83,784 91,516 99,962 121,758 140,843

10,547 11,298 12,103 12,965 13,889 14,878 15,978 17,155 18,420 19,925 21,540 23,289 25,180 27,401 29,729 32,255 34,996 38,237 41,766 45,621 49,831 54,430 59,453 65,083 71,090 77,651 84,817 92,644 101,195 123,356 142,714

10,647 11,405 12,217 13,087 14,020 15,018 16,133 17,319 18,634 20,142 21,769 23,536 25,447 27,712 30,066 32,622 35,393 38,709 42,281 46,183 50,445 55,101 60,187 65,885 71,967 78,608 85,862 93,786 102,442 124,975 144,610

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

9,981 10,667 11,387 12,155 12,975 13,851 14,785 15,818 16,986 18,217 19,620 21,387

10,072 10,761 11,488 12,262 13,117 13,973 14,916 15,969 17,142 18,385 19,853 21,626

10,165 10,856 11,589 12,371 13,206 14,096 15,048 16,121 17,299 18,553 20,088 21,868

10,258 10,952 11,691 12,480 13,322 14,221 15,181 16,275 17,458 18,724 20,326 22,113

10,352 11,049 11,795 12,591 13,440 14,347 15,315 16,430 17,618 18,896 20,567 22,361

10,453 11,147 11,899 12,702 13,559 14,474 15,450 16,586 17,780 19,095 20,811 22,611

Second Tranche Salary Grade 1 2 3 4 5 6 7 8 9 10 11 12

13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33

23,257 25,290 27,565 30,044 32,747 35,693 39,151 43,250 47,779 52,783 58,310 64,416 71,476 78,960 87,229 96,363 106,454 117,601 152,325 177,929 215,804

23,517 25,573 27,887 30,396 33,131 36,111 39,685 43,841 48,432 53,503 59,106 65,296 72,452 80,039 88,420 97,679 107,908 119,208 154,649 180,700 222,278

23,780 25,859 28,214 30,751 33,518 36,532 40,227 44,440 49,094 54,234 59,913 66,187 73,441 81,132 89,628 99,013 109,382 120,836 157,008 183,513

24,047 26,149 28,544 31,111 33,909 36,960 40,776 45,047 49,764 54,975 60,732 67,092 74,444 82,240 90,852 100,366 110,875 122,486 159,404 186,372

24,315 26,441 28,877 31,474 34,306 37,392 41,333 45,662 50,443 55,726 61,561 68,008 75,461 83,363 92,093 101,736 112,390 124,159 161,836 189,274

24,587 26,737 29,214 31,843 34,707 37,829 41,898 46,285 51,132 56,487 62,402 68,937 76,491 84,502 93,351 103,126 113,925 125,855 164,305 192,221

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

10,510 11,200 11,914 12,674 13,481 14,340 15,254 16,282 17,473 18,718 20,179 22,149 24,224 26,494 29,010 31,765 34,781 38,085 42,099 47,037 52,554 58,717 65,604

10,602 11,293 12,013 12,778 13,606 14,459 15,380 16,433 17,627 18,883 20,437 22,410 24,510 26,806 29,359 32,147 35,201 38,543 42,730 47,742 53,341 59,597 66,587

10,695 11,386 12,112 12,884 13,705 14,578 15,507 16,585 17,781 19,048 20,698 22,674 24,799 27,122 29,713 32,535 35,624 39,007 43,371 48,457 54,141 60,491 67,585

10,789 11,480 12,212 12,990 13,818 14,699 15,635 16,739 17,937 19,215 20,963 22,942 25,091 27,442 30,071 32,926 36,053 39,477 44,020 49,184 54,952 61,397 68,598

10,884 11,575 12,313 13,097 13,932 14,820 15,765 16,895 18,095 19,384 21,231 23,212 25,387 27,766 30,432 33,323 36,487 39,952 44,680 49,921 55,776 62,318 69,627

10,982 11,671 12,414 13,206 14,047 14,942 15,895 17,051 18,253 19,567 21,502 23,486 25,686 28,093 30,799 33,724 36,927 40,433 45,350 50,669 56,612 63,252 70,670

Third Tranche Salary Grade 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

24 25 26 27 28 29 30 31 32 33

73,299 82,439 92,108 102,910 114,981 128,467 143,534 198,168 233,857 289,401

74,397 83,674 93,488 104,453 116,704 130,392 145,685 201,615 238,035 298,083

75,512 84,928 94,889 106,019 118,453 132,346 147,869 205,121 242,288

76,644 86,201 96,312 107,608 120,229 134,330 150,085 208,689 246,618

77,793 87,493 97,755 109,221 122,031 136,343 152,335 212,318 251,024

78,959 88,805 99,221 110,858 123,860 138,387 154,618 216,011 255,509

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

11,068 11,761 12,466 13,214 14,007 14,847 15,738 16,758 17,975 19,233 20,754 22,938 25,232 27,755 30,531 33,584 36,942 40,637 45,269 51,155 57,805 65,319 73,811 83,406 95,083 107,444 121,411 137,195 155,030 175,184 257,809 307,365 388,096

11,160 11,851 12,562 13,316 14,115 14,961 15,859 16,910 18,125 19,394 21,038 23,222 25,545 28,099 30,909 34,000 37,400 41,140 46,008 51,989 58,748 66,385 75,015 84,767 96,635 109,197 123,393 139,434 157,561 178,043 262,844 313,564 399,739

11,254 11,942 12,658 13,418 14,223 15,076 15,981 17,063 18,277 19,556 21,327 23,510 25,861 28,447 31,292 34,421 37,863 41,650 46,759 52,838 59,707 67,469 76,240 86,151 98,212 110,980 125,407 141,710 160,132 180,949 267,978 319,887

11,348 12,034 12,756 13,521 14,332 15,192 16,104 17,217 18,430 19,720 21,619 23,801 26,181 28,800 31,680 34,847 38,332 42,165 47,522 53,700 60,681 68,570 77,484 87,557 99,815 112,791 127,454 144,023 162,746 183,903 273,212 326,338

11,443 12,126 12,854 13,625 14,442 15,309 16,227 17,372 18,584 19,884 21,915 24,096 26,506 29,156 32,072 35,279 38,807 42,688 48,298 54,577 61,672 69,689 78,749 88,986 101,444 114,632 129,534 146,373 165,402 186,904 278,549 332,919

11,538 12,219 12,952 13,729 14,553 15,426 16,352 17,529 18,739 20,051 22,216 24,395 26,834 29,517 32,469 35,716 39,288 43,217 49,086 55,468 62,678 70,827 80,034 90,439 103,100 116,503 131,648 148,763 168,102 189,955 283,989 339,633

Fourth Tranche Salary Grade 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33

Section 4. Mid-Year Bonus. Beginning FY 2016, a Mid-Year Bonus equivalent to one (1) month basic salary as of May 15, shall be granted to those who have rendered at least four (4) months of satisfactory service and are still in the service as of same date, to be given not earlier than May 15 of every year. This shall be in addition to the Standard Allowances and Benefits under the Total Compensation Framework embodied in the Congress t Resolution No. 4 (s. 2009). The existing Year-End Bonus equivalent to one (1) month basic salary and Cash Gift at prescribed rates shall be given in November of every year. Section 5. Enhanced Performance-Based Bonus. The existing PBB granted to qualified government personnel, including those in LGUs, shall be enhanced to strengthen its results orientation, to be given in an amount equivalent to one (1) month basic salary up to two (2) months basic salary, to be implemented in two (2) phases starting in FY 2017. The PBB shall be subject to the achievement by departments or agencies, including LGUs and individual employees of their performance targets or commitments and compliance with good governance and other conditions. The grant of the enhanced PBB shall be based on a progressive rate system. As the position and responsibility in improving agency performance becomes higher, so is the amount of PBB. The Inter-Agency Task Force on the Harmonization of National Government Performance Monitoring, Information and Reporting Systems created under istrative Order No. 25 (s. 2011) shall prescribe the conditions on eligibility and procedures for the grant of the enhanced PBB, including the ranking system to recognize differences in levels of performance. Section 6. Productivity Enhancement Incentive. Beginning FY 2016, the Productivity Enhancement Incentive shall be given not earlier than December 15 of every year to all qualified government employees at Five Thousand Pesos (P5,000) each for the purpose of improving the government employees’ productivity. Section 7. Provisional Allowance Schedule for Military and Uniformed Personnel. A monthly Provisional Allowance shall be given to the MUP to be implemented in four (4) tranches, as follows, in lieu of increases in base pay: DILG DND BJMP and BFP

PNP and PPSC

Fire/Jail Officer I

Police Officer I

Fire/Jail Officer II

Police Officer II

Fire/Jail Officer

Police Officer III

PCG

NAMRIA

Apprentice Seaman/ Seaman Third Class SeamanSecond Clas s Seaman First Class Petty Officer III Petty Officer II

Apprentice Seaman/ Seaman Third Class SeamanSecond Clas s Seaman First Class Petty Officer III Petty Officer II

CandidateSoldier Private Private First Class Corporal Sergeant Staff Sergeant

III TechnicalSergeant MasterSergeant Senior Master Sergeant Chief Master Sergeant First Chief Master Sergeant Cadet ProbationarySecondLieute nant SecondLieutenant

Senior Fire/ Jail Officer I Senior Fire/ Jail Officer II Senior Fire/Jail Officer III Senior Fire/Jail Officer IV

Senior Police Officer I Senior Police Officer II Senior Police Officer III Senior Police Officer IV Cadet

FirstLieutenant

Inspector

Inspector

Captain

Senior Inspector

Senior Inspector

Major

Chief Inspector

Chief Inspector

LieutenantColonel Colonel BrigadierGeneral Major General LieutenantGeneral General

Superintendent Superintendent SeniorSuperintend SeniorSuperintenden ent t ChiefSuperintende ChiefSuperintendent nt Director Director Deputy DirectorGen eral Director General

Petty Officer I

Petty Officer I

Chief Petty Officer

Chief Petty Officer

Senior Chief Petty Officer Master Chief Petty Officer First Master Chief Petty Officer Cadet

Senior Chief Petty Officer Master Chief Petty Officer First Master Chief Petty Officer

Ensign Ensign LieutenantJunior Gr LieutenantJunior Gr ade ade LieutenantSenior Gr LieutenantSenior Gr ade ade LieutenantComman LieutenantComman der der Commander Commander Captain

Captain

Commodore

Commodore

Rear iral Vice iral

Rear iral Vice iral

iral

iral

The Provisional Allowance shall be given as an interim measure to supplement the total compensation of MUP until such time that their Base Pay Schedule is rationalized in consideration of the pension implications of base pay adjustment of personnel in the active service under existing laws. Section 8. Hazard Pay. The Hazard Pay of all military and uniformed personnel shall be increased from the current rate of Two Hundred Forty Pesos (P240) per month to the following rates: a) Starting January 1,2016, Three Hundred Ninety Pesos (P390) per month; b) By January 1, 2017, Five Hundred Forty Pesos (P540) per month; c) By January 1, 2018, Six Hundred Ninety Pesos (P690) per month; an d) By January 1, 2019, Eight Hundred Forty Pesos (P840) per month. Section 9. Officers’ Allowance. An Officers’ Allowance shall be given to the following MUP ranks, likewise as an interim measure until such time that the Base Pay Schedule is modified and rationalized, at the rates below:

DILG DND

M

BJMP and BFP

PNP and PPSC

Captain

Senior Inspector

Senior Inspector

Major

Chief Inspector

Chief Inspector

LieutenantColon el

Superintendent

Superintendent

SeniorSuperintend SeniorSuperintendent ent BrigadierGenera ChiefSuperintende ChiefSuperintendent l nt MajorGeneral Director Director Colonel

LieutenantGener al General

Deputy DirectorGene ral Director General

PCG

NAMRIA

LieutenantSenior Gra LieutenantSenior Gra de de LieutenantCommand LieutenantCommand er er

FirstT h

1,0

1,5

Commander

Commander

2,0

Captain

Captain

3,0

Commodore

Commodore

4,0

Rear iral Vice iral

Rear iral Vice iral

5,0 6,0

iral

iral

7,0

9,0

Section 10. Compensation Adjustment for LGU Personnel. The modified Salary Schedule and additional benefits authorized herein for civilian personnel may likewise be granted to LGU personnel, subject to the following: a) Authorization from their respective sanggunian as provided under Sections 447(a), 458(a) and 468(a) of RA No. 7160; and b) Compliance with the Personnel Services (PS) limitation set under Sections 325 and 331 of RA No. 7160. LGUs shall likewise comply with the following rules in the implementation of the modified salary schedule and grant of additional benefits: i. The implementation of the modified Salary Schedule for LGU personnel, including the rate of Representation and Transportation Allowances, shall further correspond to the LGU’s income classification and shall not therefore exceed the percentage of the Salary Schedule in Section 3 hereof, as follows:

Special Cities 1st Class 2nd Class 3rd Class 4th Class 5th Class 6th Class

Percentage of the Salary Schedule For Provinces/Cities 100% 100% 95% 90% 85% 80% 75%

ii. The basic pay of barangay personnel shall be in the form of honoraria which shall not exceed the percentage of the Salary Schedule corresponding to the income classification of the LGU. They may likewise receive Mid-Year

For M

Bonus and Year-End Bonus based on the monthly honoraria as of May 15 and October 31 of the year, respectively, and Cash Gift of Five Thousand Pesos (P5.000). However, the minimum Year-End Bonus of One Thousand Pesos (P1,000) for the punong barangay and Six Hundred Pesos (P600) for other mandatory barangay officials shall not be subject to the PS limitation. Section 11. Implementation Schedule. The modified Salary Schedule and additional benefits authorized herein shall be implemented in National Government Agencies as follows, subject to appropriations by Congress: a. Starting January 1, 2016, the first tranche salary schedule for civilian personnel and the first tranche Provisional Allowance, Officers’ Allowance and Hazard Pay for MUP, together with the Mid-Year Bonus. b. By January 1, 2017, the second tranche salary schedule for civilian personnel and the second tranche Provisional Allowance, Officers’ Allowance and Hazard Pay for MUP, the Mid-Year Bonus and half of the enhanced PBB; c. By January 1, 2018, the third tranche salary schedule for civilian personnel and the third tranche Provisional Allowance, Officers’ Allowance and Hazard Pay for MUP, the Mid-Year Bonus and full amount of the enhanced PBB; and d. By January 1, 2019, the fourth tranche salary schedule for civilian personnel and the fourth tranche Provisional Allowance, Officers’ Allowance and Hazard Pay for MUP, the Mid-Year Bonus and full amount of the enhanced PBB. For covered GOCCs and LGUs, the implementation of the compensation adjustments shall be in at least four (4) years depending on their respective financial capability, with each tranche starting not earlier than the dates stated above. GOCCs and LGUs which do not have adequate or sufficient funds shall partially implement the modified Salary Schedule and authorized benefits. In case of partial implementation, the same shall be at uniform percentage across all positions for every GOCC/LGU. Section 12. Retroactive Application. The first tranche implementation of the modified Salary Schedule for civilian personnel, the grant of the Provisional Allowance, Officers’ Allowance and increased Hazard Pay for the MUP, shall be effective January 1, 2016. For covered GOCCs and LGUs, the retroactive application of the first tranche shall be subject to their financial capabilities and compliance with other requirements under existing laws. Section 13. Exempt Entities. The following exempt entities shall not be covered by the modified Salary Schedule and additional benefits authorized herein: (i) government agencies, including GOCCs that are exempted from the coverage of RA No. 6758, as amended, as provided in their respective enabling law or charter; and (ii) GOCCs governed by the CS established by the Governance Commission for GOCCs (GCG) and approved by the President of the Philippines, under RA No. 10149.

They shall be governed by their respective CS which shall be made effective upon the recommendation of the DBM or the Governance Commission for GOCCs, as the case may be, and approval by the President of the Philippines. Section 14. Applicability to Certain Officials. Consistent with the policy under Section 6 of Article VII and Section 10 of Article VI of the Constitution, the salaries authorized herein for the President, Vice President and of Congress shall take effect only after the expiration of the respective of the incumbents. The implementation of this Executive Order with respect to the regular of the Cabinet shall be effective starting July 1, 2016. Section 15. Funding Source. The funding sources for the amounts necessary to implement this Executive Order shall be as follows: a) For national government agencies funded in the GAA, the amount needed for the compensation adjustment in FY 2016 shall be charged against the appropriations provided in the FY 2016 GAA. The funding requirements for the compensation adjustment in FYs 2017, 2018 and 2019 will be included in the proposed annual National Expenditure Program submitted to Congress for its approval. The DBM, following the compensation adjustment strategy embodied in Section 1 hereof, and consistent with its authority under Section 7 of RA No. 6758, as amended, shall then be authorized to implement or adjust the compensation corresponding to the appropriations provided in the GAA. b) For GOCCs, the amounts shall come from their respective corporate funds in the corporate operating budgets approved by DBM. c) For LGUs, the amounts shall be charged against their respective funds in accordance with the pertinent provisions of this Order and RA No. 7160. Section 16. Implementing guidelines. The DBM shall issue the guidelines necessary to implement the provisions of this Order. Section 17. Separability. Should any provision of this Order be declared invalid or unconstitutional, the other provisions unaffected thereby shall remain valid and subsisting. Section 18. Repeal. All other rules, regulations and issuances, or parts thereof which are inconsistent with this Order are hereby repealed or modified accordingly.. Section 19. Effectivity. – This Order shall take effect immediately upon its publication in a newspaper of general circulation. DONE, in the city of Manila, this 19th day of February, in the year of our Lord, Two Thousand and Sixteen. (Sgd.) BENIGNO S. AQUINO III

By the President: (Sgd.) PAQUITO N. OCHOA JR. Executive Secretary Source: Malacañang Records Office Office of the President of the Philippines. (2016). [Executive Order]. Manila : Malacañang Records Office.

t Resolution No. 4 June 17, 2009

REPUBLIC OF PHILIPPINES CONGRESS OFTHE THE PHILIPPINES METRO MANILA Fourteenth Congress

Second Regular Session Begun and held in Metro Manila, on Monday, the twenty-eighth day of July, two thousand eight. T RESOLUTION NO. 4 T RESOLUTION AUTHORIZING THE PRESIDENT OF THE PHILIPPINES TO MODIFY THE COMPENSATION AND POSITION CLASSIFICATION SYSTEM OF CIVILIAN PERSONNEL AND THE BASE PAY SCHEDULE OF MILITARY AND UNIFORMED PERSONNEL IN THE GOVERNMENT, AND FOR OTHER PURPOSES WHEREAS, Section 5, Article IX-B of the Philippine Constitution states that Congress shall provide for the standardization of compensation of government officials and employees, including those in government-owned or -controlled corporations with original charters, taking into the nature of the responsibilities pertaining to and the qualifications required for their positions; WHEREAS, Republic Act No. 6758 prescribes a revised Compensation and Position Classification System for civilian personnel in accordance with the above-cited constitutional provision and anchored on the. basic principle of equal pay for substantially equal work; WHEREAS, t Resolution No. 01 of the Senate and the House of Representatives approved by the President of the Philippines on March

7,1994, urged the latter to revise the then existing Compensation and Position Classification System for civilian personnel and base pay of military and uniformed personnel to make it more responsive to the economic needs of government personnel, to provide adequate incentives to public servants and to improve the quality of public services; WHEREAS, the present Compensation and Position Classification System has to be revised further to update the same, to further encourage excellent performance and productivity, and to clearly distinguish differences in levels of responsibility and ability among government officials and employees; WHEREAS, the current structure of the Salary Schedule causes the overlapping of salaries between salary grades, thereby resulting to salary inequities between positions; WHEREAS, the grant of benefits to selected professions under special laws undermines the compensation standardization and equal protection of the law clauses in the Constitution, distorts the standardized compensation scheme and breeds demoralization among other government personnel; WHEREAS, the military personnel of the Department of National Defense and uniformed personnel of the Department of the Interior and Local Government, the Philippine Coast Guard, and the National Mapping and Resource Information Authority are similarly in need of a modified base pay that provides adequate remuneration and benefits in view of the vital role they play in internal security; WHEREAS, in order to make the present Compensation and Position Classification System and Base Pay Schedule more effective in motivating government personnel and in invigorating public service, reforms in the present System and Pay Schedule need to be instituted: Now, therefore, be it: Resolved.by the Senate and the House of Representatives in Congress assembled, To authorize the President of the Philippines to modify the existing Compensation and Position. Classification System of civilian personnel and Base Pay Schedule of military and uniformed personnel and to initially implement the same effective July 1, 2009 and in the case of local government units (LGUs) to take effect January 1, 2010. Resolved, further, To express the strong sentiment of the Senate and the House of Representatives, that said modification must be in line with the governing principles, coverage and particulars of the Compensation and Position Classification System. and Base Pay Schedule prescribed hereunder. Resolved, finally, That the amendments of existing laws and issuances contrary to the provisions of this t Resolution shall be effective upon approval of this t Resolution.

(1) Governing Principles – The following principles shall govern the modified Compensation and Position Classification System and Base Pay Schedule of the government: (a) All government personnel shall be in accordance with the principle of Differences in pay shall be based on classification-factors in due regard government;

paid just and equitable compensation equal pay for work of equal value. verifiable compensation and position to the financial capability of the

(b) The compensation for all civilian government personnel shall generally be comparable with those in the private sector doing comparable work in order to attract, retain and motivate a corps of competent civil servants; (c) The compensation for all civilian government personnel shall likewise be standardized and rationalized across all government agencies to create an enabling environment that will promote social justice, integrity, efficiency, productivity, ability and excellence in the civil service; (d) A performance-based incentive scheme which integrates personnel and organizational performance shall be established to reward exemplary civil servants and well-performing institutions; (e) A periodic review of the government’s Compensation and Position Classification System shall be conducted every three (3) years, taking into the changes in skills and competency requirement in the bureaucracy, the relative demand for certain expertise, the possible erosion in the purchasing power due to inflation, and other factors. The Base Pay Schedule of military and uniformed personnel shall likewise be subject to the said periodic review to ensure that they are adequately compensated; (f) The Base Pay Schedule of military and uniformed personnel of the government shall likewise take into prevailing economic realities and create professionalism, exemplary performance, and commitment to service; and (g) The compensation for government personnel shall be kept fair and reasonable in recognition of fiscal realities and an efficient allocation of personal services cost which shall be maintained at a realistic level in proportion to the overall expenditure of the government. (2) Coverage—The Compensation and Position Classification System herein provided shall apply to all positions for civilian government personnel in the Executive, Legislative and Judicial Branches, the Constitutional Commissions, State Universities and Colleges (SUCs), Government-Owned or -Controlled Corporations (GOCCs), Government Financial Institutions (GFIs) and LGUs, whether regular, casual or contractual in nature, appointive or elective, on full-time or part-time basis, now existing or hereafter created. The military and uniformed personnel shall be covered by a separate compensation system as provided in item (8) hereof.

Individuals and groups of personnel whose services are engaged through job orders or contracts of services shall be excluded from the coverage of the System. (3) Position Classification System – (a) Re-categorized Groups of Classes of Positions – The classes of positions shall be re-categorized as follows: (i) Subprofe9sional Category; (ii) Professional Category; and (iii) Executive Category. (i) Subprofessional Category – This category include positions involved in structured work in of office operation or those engaged in arts, crafts, trades, manual or clerical work Also included in this category are positions engaged in supervising groups of employees performing such work. These positions require completion of up to elementary education, secondary or vocational education or completion of a least two (2) years of college education, and skills acquired through training and moderate to considerable experience and knowledge of a limited subject matter or skills in arts, crafts, trades, manual and clerical work. (ii) Professional Category – This category includes positions performing work requiring the exercise of profession on application of knowledge acquired through formal training in a particular field or the exercise of a natural, creative and artistic ability or talent in arts and letters. Also included in this category are positions involved in research and application of professional knowledge and methods to a variety of technological., economic, social, industrial and governmental functions. Further included in this category axe positions engaged in supervising groups of employees performing professional work These positions require thorough knowledge in the field of arts and sciences or learning acquired through completion of at least four (4) years of college studies or thorough knowledge of specialized fields acquired through completion of bachelor’s, master’s or doctorate degrees. (iii) Executive Category – This category includes managerial positions involved in the execution of laws, rules and regulations, both in the national and local governments, in the legislation of laws and ordinances, and in the istration of justice. Appointive executive positions require thorough knowledge acquired through completion of at least a bachelor’s degree. Elective executive positions only require knowledge acquired through the minimum education prescribed by the Constitution and existing laws. (b) Index of Occupational Services, Occupational Groups, Classes arid Salary Grades – The existing levels of classes of positions shall be reviewed to convert them to the more appropriate number of levels that recognizes reasonable gradations in the levels of difficulty, substantial changes and complexity of the duties and responsibilities of positions, work methods,

skills, competencies and other relevant factors and to convert them into generic, brief but descriptive and gender-neutral class/position titles. For this purpose, the Index of Occupational Services, Occupational Groups, Classes and Salary Grades, which is a component of the position classification system, shall be updated by the Department of Budget and Management (DBM) in coordination with the Civil Service Commission (CSC). (4) Compensation System—(a) Total Compensation Framework – The existing basic salaries, allowances, benefits and incentives granted to government officials and employees shall be rationalized and standardized in accordance with the herein established Total Compensation Framework. Under this Framework, the total payment given to an employee for services rendered shall hereinafter be limited to the following: (i) Basic Salaries, including Step Increments; (ii) Standard Allowances and Benefits; (iii) Specific-Purpose Allowances and Benefits; and (iv) Incentives. Provided, That the Total Compensation Framework shall exclude all indirect compensation under existing laws such as, but not limited to: life and retirement insurance benefits; employee compensation insurance; health insurance; Pag-IBIG Fund benefits; and Provident Fund benefits. (b) The modified Salary Schedule for Civilian Personnel, to be implemented in tranches, shall, be as follows: Salary Grade

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

1

9.000

9.090

9,181

9.273

9,365

9.469

2

9,675

9,772

9,869

9,968

10,068

10,169

3

10,401

10,505

10,610

10,716

10,823

10,931

4

11,181

11,292

11,405

11,519

11,635

11,751

5

12.019

12,189

12,261

12.383

12,507

12,632

6

12,921

13,050

13,180

13.312

13,445

18,580

7

13,890

14.029

14,169

14,311

14,454

14,598

8

14,931

16,081

15.232

15,384

15,538

15,693

9

16,051

16,212

16,374

16,538

16,703

16.870

10

17,255

17,428

17,602

17,778

17,956

18,185

11

18,549

18,735

18,922

19,111

19,302

19,495

12

19,940

20,140

20,341

20,545

20,750

20,958

13

21,436

21.650

21,867

22,086

22,306

22,529

14

23,044

23,274

23,507

23,742

23,979

24,219

15

24,887

25,161

25,438

25,718

26,000

26,286

16

26,878

27,174

27,473

27,775

28,080

28,389

17

29,028

29,349

29,671

29,997

30,327

30,661

18

31,351

31,696

32,044

32,397

32,753

33,113

19

33,859

34,231

34,608

34,988

35,373

35,762

20

36,567

36,970

37,376

37,788

38,203

38,,623

21

39,493

39,927

40,367

40,811

41,259

41,713

22

42,652

43,121

43,596

44,075

44,560

45,050

23

46,064

46,571

47,083

47.601

48,125

48,654

24

49,750

50,297

50,850

51,410

51,975

52,547

25

53,730

54,321

54,918

55,522

56,133

66,750

26

58,028

58,666

59,312

59,964

60,624

61,291

27

62,670

63,360

64,057

64,761

65,474

66,194

28

67,684

68,428

69,181

69,942

70,711

71,489

29

73,099

73,903

74,716

75,537

76,368

77,208

30

78,946

79,815

80,693

81,580

82,478

83,385

31

90,000

90,990

91,991

93,003

94,026

95,060

32

103,000

104,133

105,278

106,437

107,607

108,791

33

120,000

(c). Salary Grade AssigNments of PositioNs—The salary grades for positions for constitutional officials and their equivalent shall be as provided under Section 8 of Republic Act No. 6758. The benchmark position schedule in item (4) of Senate and House of Representatives t Resolution No. 01, s. 1994, is abolished. The existing position classification factors and other relevant factors shall guide the DBM in the review of salary grade assignments for classes of positions below those for constitutional officials and their equivalent for possible modifications in view of organizational, technological, professional and other developments, and in determining the salary grade assignments of new classes of positions: Provided, That teachers with specialization in

Science and Mathematics shall be given three (3) steps higher of his/her assigned grade. (d) Step Increments – An employee may progress from Step 1 to Step 8 of the salary grade allocation of his/her position in recognition of meritorious performance based on a Performance Management System approved by the CSC and/or through length of service, in accordance with the rules and regulations to be promulgated tly by the DBM and the CSC. Employees authorized to receive Longevity Pay under existing laws shall no longer be entitled to Step Increments Due to Length of Service. The grant of Step Increment based on Merit and Performance shall be in lieu of the Productivity Incentive Benefit. (e) Rationalization of Allowances, Benefits and Incentives—The coverage, conditions for the grant, including the rates of allowances, benefits and incentives to all government employees, shall be rationalized in accordance with the policies to be issued by the President upon recommendation of the DBM. Far this purpose, all existing and authorized allowances, benefits and incentives shall be categorized as Standard Allowances and Benefits, Specific-Purpose Allowances and Benefits or Incentives in accordance with items (4)(f), (g) and (h) hereof: Provided, That henceforth all allowances, benefits and incentives to be granted to any and all government employees shall be limited to the foregoing categories: Provided, further, That said allowances, benefits and incentives shall be granted only upon compliance with all of the qualifications and conditions laid down by the President. Provident fund benefit and other benefits, which are excluded in the Total Compensation Framework as may be determined by the DBM, shall be rationalized in accordance with the policies to be issued by the President upon recommendation of the DBM. (f) Standard Allowances and Benefits—These are allowances and benefits given to all employees across agencies at prescribed rates, guidelines, rules and regulations, which shall be limited to the following: (i) Personnel Economic Relief Allowance – This shall be given at Two thousand pesos (P2,000.00) per month, the combined total of the current Five hundred pesos (P5O0.00) Personnel Economic Relief Allowance and the One thousand five hundred pesos (P1,500.00) Additional Compensation, to supplement pay due to the rising cost of living; (ii) Uniform/Clothing Allowance – This is to provide for the required uniform/clothing to employees, at prescribed rates; and (iii) Year-End Bonus and Cash Gift – This is equivalent to one (1) month basic salary and Cash Gift provided under Republic Act No. 6686, as amended by Republic Act No. 8441. Henceforth, the year-end bonus and other cash gifts shall be funded from the annual general appropriations.

(g) Specific-Purpose Allowances and Benefits – These are allowances and benefits given to employees across agencies under specific conditions and situations related to the actual performance of work; at prescribed rates, guidelines, rides and regulations. These are limited to the following: (i) Representation and Transportation Allowances – These are given to officials down to division chiefs at monthly standard rates in order to defray transportation and representation expenses while in the actual performance of the duties of the positions. Transportation allowance shall not be given to those assigned government transportation; (ii) Per Diem – This is a compensation for attendance in meetings in view of hip in collegial bodies created by law; (iii) Honoraria – These are token payments in recognition of services rendered beyond the regular duties and responsibilities of positions; (iv) Night-Shift Differential – This is given to an employee whose regular working hours fall wholly or partially within six o’clock in the evening to six o’clock in the morning of the following day; (v) Overtime Pay—This is cash payment for work performed by an employee beyond the regular working hours in a day, and those performed on rest days, holidays and nonworking days; (vi) Subsistence Allowance – This is an allowance for meal or sustenance given only to government personnel who, by the nature of the duties and responsibilities of their positions, have to make their services available at all times in their places of work even during mealtimes. This shall be given at the prescribed standard rate; (vii) Hazard Pay – This is a given only to government personnel exposed to hazardous situations such as, but not limited to, assignment in strife-torn or embattled areas, distressed or isolated stations, prison camps, mental hospitals, leprosaria, radiation-exposed clinics/laboratories/workshops, disease-infested areas and areas declared under state of calamity or emergency which pose occupational risks or perils to life; (viii) Special Counsel Allowance – This is an allowance for lawyer personnel in the legal staff of departments, bureaus or offices of the national government deputized by the Office of the Solicitor General to appear in court as special counsel in collaboration with the Solicitor General or Prosecutors concerned; (ix) Overseas and Other Allowances for Government Personnel Stationed Abroad – These are allowances given to government officials and employees assigned abroad at such rates authorized under Republic Act No. 7157, as amended, and its implementing rules and regulations; and (x) Other allowances and benefits granted under specific conditions and situations, related to the actual performance of work as may be determined

by the DBM: Provided, That Section 8 of Republic Act No. 9417 shall remain effective and enjoyed in the manner prescribed under said law. (h) Incentives – This shall be limited to the following: (i) Incentives to reward an employee’s loyalty to government service and contributions to the agency’s continuing viable existence, as follows: (aa) Loyalty Incentive – This is an incentive to be given in milestone years to reward an employee’s loyalty to government service with at least satisfactory performance. This shall be in lieu of the Loyalty Award; and (bb) Anniversary Bonus—This is a one-time incentive to be given to employees on the occasion of their agencies’ milestone anniversaries, to recognize the employees’ participative efforts in and contributions to the agencies’ continuing and/or viable existence; (ii) Incentives as rewards for exceeding agency financial and operational performance targets, and to motivate employee efforts toward higher productivity, as follows: (aa) Collective Negotiation Agreement (CNA) Incentive -This may be granted to both management and rank-and-file employees of agencies with approved and successfully implemented CNAs in recognition of their efforts in accomplishing performance targets at lesser cost, in attaining more efficient and viable operations through cost-cutting measures and systems improvement, such CNA incentive shall be provided for under the annual General Appropriations Act; and (bb) Productivity Enhancement Incentive – This may be authorized by the President of the Philippines for the Executive Branch and LGUs, the Senate President and the Speaker of the House of Representatives for the Legislative Branch, the Chief Justice of the Supreme Court for the Judicial Branch, the Ombudsman for the Office of the Ombudsman and the Heads of Constitutional Commissions for Constitutional Offices vested with fiscal autonomy at the end of the year. Such productivity enhancement incentive shall be funded from the annual general appropriations; and (iii) Other existing benefits to be categorized by the DBM as incentives. (5) Special Allowances – The grant of Special Allowances to certain officials and employees as provided under Republic Act No. 9227, Republic Act No. 9279, Republic Act No. 9347, Republic Act No. 9406 and Republic Act No. 9417 which shall not exceed one hundred percent (100%) of the applicable salary schedule, as provided in their respective implementing rules and regulations, shall be considered as an advance implementation of any subsequent increases in the salary rates under Republic Act No. 6758, as amended. Accordingly, the full amount of Special Allowances or portions thereof that have been received shall be converted as part of basic salaries as a result of

the salary increases authorized pursuant to this t Resolution and such other subsequent issuances and/or laws authorizing salary adjustments: Provided, That any balances in the amount of Special Allowances not converted as part of basic salaries shall continue to be granted as such and funded from sources specified under applicable laws: Provided, further, That the maximum limit of the Special Allowances that may be granted thereafter shall be reduced by the amount of Special Allowances converted as part of basic salaries: Provided, finally, That such Special Allowances shall cease to be granted once the full amount of the authorized Special Allowances have been received by the employee concerned. (6) Magna Carta Benefits – Within ninety (90) days from the effectivity of this t Resolution, the DBM is hereby authorized to issue the necessary guidelines, rules and regulations on the grant of Magna Carta benefits authorized for specific officials and employees in the government to determine those that may be categorized in the Total Compensation Framework. Nothing in this t Resolution shall be interpreted be reduce, diminish or, in any way, alter the benefits provided for in existing laws on Magna Carta benefits for specific officials and employees in government, regardless of whether said benefits have been already received or have yet to be implemented. The DBM, in coordination with the agencies concerned, shall determine the qualifications, conditions and rates in the grant of said benefits. Accordingly, the consultative councils, departments and officials previously authorized to issue the implementing rules and regulations of Magna Carta benefits shall no longer exercise said function relative to the grant of such benefits. (7) Local Government Units – The salaries, wages, allowances and other emoluments and benefits of officials and employees of LGUs shall be determined by their respective sanggunians in accordance with the pertinent provisions of Republic Act No. 7160: Provided, That LGUs may, if their finances warrant, grant salary or wage adjustments to their personnel, subject to the personal services limitation in LGU budgets under Republic Act No. 7160: Provided, further, That the grant of allowances and other benefits shall be subject to the said personal services limitation. In case of partial implementation of salary or wage adjustments, the same shall be at uniform proportion of the established rates for all positions in each LGU. (a) The salary or wage adjustments, if warranted by the finances of the LGUs, shall be determined on the basis of the income class and financial capability of each LGU but shall not exceed the following percentages of the rates in the Salary Schedule under item (4)(b) of this t Resolution: For Provinces/Cities

For Municipalitie

Special Cities

100%

1st Class

100%

90%

2nd Class

95%

85%

3rd Class

90%

80%

4th Class

85%

75%

5th Class

80%

70%

6th Class

75%

65%

(b) The rates of representation and transportation allowances shall be determined on the basis of the income class of each LGU. (c) Each barangay official/employee paid monthly honorarium may be granted year-end bonus based on the monthly honorarium rate as of October 31 of the year, and cash gift, subject to the budgetary requirements and personal services limitation in barangay budgets under Republic Act No. 7160. Enforcement of the personal services limitation shall be waived insofar as the minimum year-end bonus of One thousand pesos (P1,000.00) for the punong barangay and Six hundred pesos (P600.00) for the other mandatory barangay officials, and their cash gifts are concerned. (8) Military and Uniformed Personnel—The military personnel of the Department of National Defense (DND) and the uniformed personnel of the Department of the Interior and Local Government (DILG), the Philippine Coast Guard (PCG) and the National Mapping and Resource Information Authority (NAMRIA) shall be covered by a compensation system that will promote pay equity for an effective, efficient, professional and motivated corps of military and uniformed personnel. They shall be covered by only one Base Pay Schedule as follows: DILG DND

BJMP and BFP

PGC and PNP and PPSC

NAMRIA

Candidate Soldier Apprentice

Seaman/Seaman Private

Fire/Jail Officer I

Police Officer I

Third Class Seaman Second

Class

Private First Class Corporal

Fire/Jail Officer II

Police Officer II

Seaman First

Class Sergeant

Petty Officer III

Staff Sergeant

Fire/Jail Officer III

Police Officer III

Technical Sergeant

Petty Officer II Petty Officer I

Senior Fire/

Jail Officer I

Master Sergeant

Chief Petty Senior Police Officer I

Senior Fire/ Senior Master Sergeant

Jail Officer II

Senior Chief Senior Police Officer II

Senior Fire/ Chief Master Sergeant

Jail Officer III

Jail Officer IV

Cadet

Petty Officer Master Chief

Senior Police Officer III

Senior Fire/ First Chief Master Sergeant

Officer

Petty Officer First Master

Senior Police Officer IV

Chief Petty Officer

Cadet

Probationary Second Lieutenant Second Lieutenant

Ensign Lieutenant

First Lieutenant

Inspector

Inspector

DILG DND

Captain

Major

Junior Grade

PCG and

NAMRIA

BJMP and BFP

PNP and PPSC

Senior

Senior

Lieutenant

Inspector

Inspector

Senior Grade

Chief

Chief

Lieutenant

Inspector

Inspector

Commander

Superintendent

Superintendent

Commander

Senior

Senior

Superintendent

Superintendent

Lieutenant

Colonel

Colonel

Captain

Brigadier

Chief

Chief

General

Superintendent

Superintendent

Director

Director

Commodore

Major

General

Rear iral Vice iral

Lieutenant

Deputy Director

General

General

General

Director General

iral

The remuneration for military and uniformed personnel shall be reckoned on a separate Total Compensation Framework which shall include: (a) Base Pay, including Longevity Pay; (b) Standard Allowances and Benefits; (c) Specifiurpose Allowances and Benefits; and (d) Incentives. All existing types of allowances and benefits authorized for military/uniformed personnel such as, but not limited to, Longevity Pay, Quarters Allowance, Subsistence Allowance, Clothing Allowance, Laundry Allowance and Hazard Pay shall continue to be authorized and categorized in accordance with this separate Total Compensation Framework. (9) Exempt Entities – Government agencies which by specific provision/s of laws are authorized to have their own compensation and position classification system shall not be entitled to the salary adjustments provided herein. Exempt entities shall be governed by their respective Compensation and Position Classification Systems: Provided, That such entities shall observe the policies, parameters and guidelines governing position classification, salary rates, categories and rates of allowances, benefits and incentives, prescribed by the President: Provided, further, That any increase in the existing salary rates as well as the grant of new allowances, benefits and incentives, or an increase in the rates thereof shall be subject to the approval by the President, upon recommendation of the DBM: Provided, finally, That exempt entities which still follow the salary rates for positions covered by Republic Act No. 6758, as amended, are entitled to the salary adjustments due to the implementation of this t Resolution, until such time that they have implemented their own compensation and position classification system. (10) Disclosure of Compensation and Position Classification Systems Adopted by Exempt Entities – In conformity with the provisions of item (9) hereof, exempt entities shall submit their existing compensation and position classification systems and their implementation status to the DBM. (11) Non-diminution in the Basic Salaries of Incumbent Employees—In no case shall there be any diminution in the basic salaries of incumbent employees upon the implementation of this t Resolution. For this

purpose, they shall receive the new salary rates prescribed herein, to be implemented in tranches,. which in no case shall be less than their existing salary rates. (12) Funding Source – The funding sources for the amounts necessary to implement the modified Compensation and Position Classification System and Base Pay Schedule shall be as follows: (a) For national government entities, the amounts shall be charged against appropriations set aside for the purpose in the FY 2009 General Appropriations Act and from savings generated by the different departments, bureaus, offices and agencies of the government. Thereafter, such amounts as are needed shall be included in the annual General Appropriations Act: Provided, That for every Fifty billion pesos (P50,000,000,000.00) increase in the programmed new appropriations, five percent (5%) will be earmarked for the salary increase of personnel; (b) For GOCCs and GFIs, the amounts shall come from their respective corporate funds in the approved corporate operating budgets. Government corporations which do not have adequate or sufficient funds shall only partially implement the established rates: Provided, That any partial implementation shall be at uniform proportion of the established rates for all positions in each government corporation; and (c) For LGUs, the amounts shall be charged against then-respective, local government funds in accordance with the pertinent provisions of this t Resolution and Republic Act No. 7160. (13) Implementation—For national government employees, the Salary Schedule in item (4)(b) and the Base Pay Schedule in item (8) shall be implemented in four (4) equal yearly tranches but in no case beyond four (4) years: Provided, That the initial implementation shall take effect July 1, 2009. For GOCCs/GFIs and LGUs, the implementation period shall be at least four (4) years depending on their financial capabilities: Provided, further, That the initial implementation for GOCCs/GFIs shall take effect July 1, 2009 and in the case of LGUs, January 1, 2010. (14) Applicability to Certain Constitutional Officials -Pursuant to Section 6 of Article VII and Section 10 of Article VI of the Constitution, the salaries prescribed herein for the President of the Philippines, Vice President of the Philippines and of Congress shall take effect only after the expiration of the respective of the present incumbents. (15) Applicability of Other Laws – All provisions of Presidential Decree No. 985, as amended by Presidential Decree No. 1597, Republic Act No. 6758, as amended by Senate and House of Representatives t Resolution No. 01, s. 1994, which are not inconsistent with and are not expressly modified, revoked or repealed by this t Resolution shall continue to be in full force and effect.

(16) Amendment of Existing Laws – The provisions of all laws, decrees, executive orders, corporate charters, rules, regulations, circulars, approvals and other issuances (…) inconsistent with the provisions of this t Resolution such as, but not limited to, Republic Act No. 4670, Republic Act No. 7160, Republic Act No. 7305, Republic Act No. 8439, Republic Act No. 8551, Executive Order No. 107 dated June 10, 1999, Republic Act No. 9286, Republic Act No. 9166, Republic Act No. 9173 and Republic Act No. 9433 are hereby amended. All provisions of laws, executive orders, corporate charters, implementing rules and regulations prescribing salary grades for government officials and employees other than those in Section 8 of Republic Act No. 6758 are hereby repealed. (17) Functional Responsibilities — (a) In addition to the powers and functions provided in the pertinent items of this t Resolution and Presidential Decree No. 985, as amended by Presidential Decree No. 1597, Republic Act No. 6758, and Senate and House of Representatives t Resolution No. 01, s. 1994, the DBM shall; (i) Prepare and issue the guidelines, rides and regulations necessary to implement the modified Compensation and Position Classification System for all government personnel herein established consistent with the executive orders to be issued by the President; (ii) ister the modified Compensation and Position Classification System; (iii) Undertake a continuing review of the Compensation and Position Classification System for civilian government personnel in coordination with the CSC; and (iv) Recommend for the consideration and approval of the President, the updating of the Compensation and Position Classification System for civilian personnel, and Base Pay Schedule for military and uniformed personnel, as well as the policies on and levels of allowances, benefits and incentives applicable to all government personnel, including those for exempt entities. (b) The CSC and the DBM shall tly formulate the guidelines, rules and regulations on the grant of incentives in items (4)(h)(i) and (ii). (c) The CSC, in developing the Performance Management System, shall ensure that personnel performance shall be linked with organizational performance in order to enhance the performance orientation of the compensation system. (18) Preparation of a Consolidated Compensation and Position Classification Report – The DBM shall prepare a Consolidated Compensation and Position Classification Report, summarizing the approved systems for all government entities in the national government, government-owned or -controlled corporations and government financial institutions including exempt entities

and the status of implementation thereof. Said report shall be periodically updated and submitted to Congress and the Commies ion on Audit for public disclosure, monitoring, compliance with established policies and as basis for future policy decisions. Approved, (Sgd.) JUAN PONCE ENRILE

(Sgd.) PROSPERO C. NOGRALES

President of the Senate

Speaker of the House of Represent

This t Resolution which is a consolidation of House t Resolution No. 36 and Senate t Resolution No. 26 was finally adopted by the House of Representatives and the Senate on June 1, 2009 and June 2, 2009, respectively. (Sgd.) EMMA L1RIO-REYES

(Sgd.) MARILYN B. BARUA-YAP

Secretary General

House of Representatives Secretar

Approved: JUN 17 2009 (SGD.) GLORIAof MACAPAGAL-ARROYO President the Philippines