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(NAR) VOL. 20 NO.2 / APRIL - JUNE 2009

[ OP EXECUTIVE ORDER NO. 811, June 17, 2009 ]

ADOPTING THE FIRST TRANCHE OF THE MODIFIED SALARY SCHEDULE OF CIVILIAN PERSONNEL AND BASE PAY SCHEDULE OF MILITARY AND UNIFORMED PERSONNEL IN THE GOVERNMENT, AS WELL AS THE MODIFIED POSITION CLASSIFICATION SYSTEM PURSUANT TO SENATE AND HOUSE OF REPRESENTATIVES JOINT RESOLUTION NO. 4, S. 2009



WHEREAS, Senate and the House of Representatives Joint Resolution No. 4, s. 2009, authorizes the President of the Philippines to modify the existing Compensation and Position Classification System of civilian personnel and the Base Pay Schedule of military and uniformed personnel;

WHEREAS, said authority shall be exercised in accordance with the governing principles, coverage and particulars of the modified Compensation and Position Classification System prescribed in the Joint Resolution;

WHEREAS, the amount of P18.4 billion is appropriated under the Miscellaneous Personnel Benefits Fund in Republic Act No. 9524 or the Fiscal Year 2009 General Appropriations Act, to cover the compensation adjustments necessary to implement the first tranche of the modified Salary Schedule for civilian personnel and Base Pay Schedule for military and uniformed personnel in the national government;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, Presidential Decree No. 985, Presidential Decree No. 1597, Republic Act No. 6758, as amended by the Senate and House of Representatives Joint Resolution No. 01 approved on March 7, 1994, and Senate and House of Representatives Joint Resolution No. 4 approved on June 17, 2009, do hereby order and direct:

SECTION 1. Purpose - This Executive Order is issued in accordance with House of Representatives Joint Resolution No. 4, s. 2009, and shall:

(a) prescribe the first tranche of the modified salary schedule of civilian personnel and base pay schedule of military and uniformed personnel in the government; and

(b) direct the review and modification of the position classification system.

SECTION 2. Coverage and Exclusion

(a) Civilian Personnel - The modified Compensation and Position Classification System shall cover all positions for civilian 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 Local Government Units (LGUs), whether regular, casual, or contractual in nature, appointive or elective, on full-time or part time basis, now existing or hereafter created.

The following shall be excluded from the coverage of the System:

(i) individuals and groups of personnel whose services are engaged through job orders, contracts of services, or others similarly situated; and

(ii) positions for civilian personnel in government entities which are authorized by law to adopt, and are actually implementing their own compensation and position classification systems.

(b) Military and Uniformed Personnel - The modified Base Pay Schedule provided in item (8) of said Joint Resolution, shall cover the military personnel under the Department of National Defense (DND) and uniformed personnel under the Department of the Interior and Local Government (DILG), Philippine Coast Guard (PCG), and National Mapping and Resource Information Authority (NAMRIA).

SECTION 3. Implementation Period -

(a) For national government agencies (NGAs), the Salary Schedule in item (4) (b) and the Base Pay Schedule in item (8) of said Joint Resolution, shall be implemented in four (4) equal yearly tranches, but in no case beyond four (4) years.

(b) For GOCCs, GFIs, and LGUs, the implementation period shall be four (4) years or more depending on their financial capability.

SECTION 4. First Tranche of Implementation -

(a) For Civilian Personnel -

(i) For NGA, GOCC and GFI Personnel -

The salary rates shall be in accordance with the First Tranche Monthly Salary Schedule for Civilian Government Personnel Effective July 1, 2009 attached as Annex “A”[*].

(ii) For LGU Personnel -

The salary rates for LGU personnel shall be determined by the sanggunian, on the basis of LGU income class and financial capability: Provided, That such salary rates shall not exceed the applicable percentages shown in the table below, pursuant to item 7(a) of the Joint Resolution: Provided, Further That the resulting personal services (PS) cost shall not exceed the PS limitation in local government budgets, as provided under Sections 325(a) and 331(b) of Republic Act No. 7160: Provided, Finally That there shall be no diminution in the basic salaries of incumbents for purposes of complying with said PS limitation.


Percentages of Salary Rates Shown in Annex “A”




For Provinces/Cities
For Municipalities



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%

For this purpose, the DBM shall issue the First Tranche Monthly Salary Schedule for Local Government Personnel for each LGU income class which shall take effect January 1, 2010.

(b) For Military and Uniformed Personnel -

The base pay rates shall be in accordance with the First Tranche Monthly Base Pay Schedule for Military and Uniformed Personnel Effective July 1, 2009, attached as Annex “B”[*].

SECTION 5. Uniform Implementation in Case of Insufficiency of Funds -

(a) GOCCs and GFIs which do not have adequate or sufficient funds shall implement salary schedules which shall be at uniform percentages of the salary rates in Annex “A”.

(b) Likewise, LGUs which do not have adequate or sufficient funds to implement the maximum salaries prescribed for the LGU income class shall implement salary schedules which shall be at uniform percentages of the salary rates in the First Tranche Monthly Salary Schedule for Local Government Personnel.

SECTION 6. Changes in Position Titles and Salary Grade Assignments of Certain Positions -

The position titles and salary grade assignments of the entry levels of the following positions are hereby modified:

Position Title
Salary Grade
From
To
Teacher I
10
11
Nurse I
10
11
Medical Officer I
14
16
Accountant I
11
12
[Legal Officer I] Attorney I
[14]
16

The DBM, in coordination with the Civil Service Commission (CSC), shall review the other levels of the above-listed positions and other classes of positions to determine their appropriate levels, and to allocate them to their proper salary grades.

Accordingly, the DBM, in coordination with the CSC, shall update the Index of Occupational Services, Occupational Groups, Classes, and Salary Grades, in accordance with organizational, technological, professional and other developments.

SECTION 7. 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 the Joint Resolution and this Executive Order.

SECTION 8. Funding Sources - The funding sources for the amounts necessary to implement the modified Compensation and Position Classification System shall be as follows:

(a) For NGAs, the amounts shall be charged against appropriations set aside for the purpose in the FY 2009 General Appropriations Act (GAA) and from savings generated by the different departments, bureaus, offices and agencies of the national government. Thereafter, such amounts as are needed shall be included in the annual GAA.

(b) For GOCCs and GFIs, the amounts shall come from their respective corporate funds in the approved corporate operating budgets.

(c) For LGUs, the amount shall be charged against their respective local government funds.

SECTION 9. 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 Members of Congress shall take effect only after the expiration of the respective terms of the present incumbents.

SECTION 10. Subsequent Issuances. The President, upon recommendation by the DBM, shall issue such other Executive Orders to fully implement the provisions of Senate and House of Representatives Joint Resolution No. 4, s. 2009.

SECTION 11. Effectivity - This Executive Order shall take effect immediately.

Adopted: 17 June 2009

(SGD.) GLORIA M. ARROYO
President of the Philippines  

BY THE PRESIDENT:

(SGD.) EDUARDO R. ERMITA
Executive Secretary



[*] Text Available at Office of the National Administrative Register, U. P. Law Complex, Diliman, Quezon City.

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