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To prescribe the guidelines in the implementation of the upgrading of District and Education supervisors pursuant to Special Provision No. 19 of the Budget of the Department of Education (DepEd) under RA 9206, the FY 2003 General Appropriations Act.

2.0 COVERAGE

All incumbents of positions which are allocated to the positions of Public Schools District Supervisor (PSDS) SG - 19, Education Supervisor (ES) I, SG - 19 and ES II, SG - 20, ES III, SG - 22 and Chief Education Supervisor (CES), SG - 24.

3.0 DEFINITION OF TERMS

As used in this Circular the following shall mean: 

3.1 Present Salary - the actual basic salary of the incumbent as of the date of salary upgrading exclusive of Personnel Economic Relief allowance (PERA), Additional Compensation (ADCOM), Christmas Bonus and cash gift, honoraria and any other forms of additional compensation usually paid in addition to basic salary but inclusive of transition allowance, if any. 

3.2 Transition Allowance - the excess of the present salary over the eighth step of the salary grade allocation of the employeee position. 

3.3 Two-stage salary grade adjustment - the salary grade adjustment for positions of PSDS, ES I and ES II where subject positions shall be adjusted by a one salary grade adjustment in FY 2003 and a second one salary grade adjustment in FY 2004.

4.0 GUIDELINES 

4.1 To maintain the previous salary grade relationships under RA No. 6758 among the PSDS and ES I, on the one hand, and Elementary School Principal (ESP) IV and Secondary School Principal (SSP) II, on the other hand and to preserve the consistency in the salary grade relationships of said positions, the following are hereby authorized:

4.1.1 Upgrading of the PSDS and ES I positions from SG-19 to SG-20 in July 2003 and to SG-21 in July 2004 

4.1.2 Upgrading of the ES II positions by two (2) salary grades from SG-20 to SG-21 in July 2003 and to SG-22 in July 2004 

4.1.3 A one-step salary adjustment to incumbents of ES III positions starting July 2003 and another one-step salary adjustment starting July 2004; 

4.1.4 A one-step salary adjustment to incumbents of CES positions starting July 2003 and another one-step salary adjustment starting July 2004. 

5.0 SALARY RULES 

5.1 For purposes of the salary upgrading herein authorized, the basic salary of the employee concerned shall be adjusted as follows:

5.1.1 Effective July 1, 2003 - at the same salary step of his assigned salary grade as of June 30, 2003 (Illustrative Example A) adopting the Salary Schedule prescribed under National Budget Circular (NBC) No. 474 (Annex B^*) 

5.1.2 Effective July 1, 2004 - at the same salary step of his assigned salary grade as of June 30, 2004 (Illustrative Example A) adopting the Salary schedule prescribed under National Budget Circular (NBC) No. 474 (Annex B^* )

5.2 The transition allowance as defined in 3.2 being received by the PSDS and ES, if any, shall be considered as advance entitlement of the salary increase herein authorized, (Illustrative Examples B and C^*) 

5.3 No step adjustment shall be granted to incumbents of positions whose salary already falls at or exceeds the maximum step (eight step of the salary grade allocation of their positions. (Illustrative Example D^*) 

5.4 The herein salary increases shall be effected through the issuance of a Notice of Salary Adjustment (NOSA) by the duly authorized official. (Annex C^*)

6.0 FUNDING SOURCE

The amounts necessary to implement the salary adjustments authorized herein shall be charged against the Nationwide lump sum appropriation for the purpose amounting to fifty million pesos (P50,000,000) in the DepEd's budget in RA 9206, the CY 2003 General Appropriations Act. For CY 2004, the same shall be charged against the lump sum appropriation for the purpose that may be included in the 2004 budget.

7.0 POST AUDIT

Any salary adjustment paid under this Circular shall be subject to post-audit by the DBM-ROs concerned. Any payments thereof which are not in accordance herewith shall be adjusted accordingly.

8.0 CONTRIBUTIONS

The salary adjustments authorized herein are subject to the mandatory requirements for life and retirement premiums, and health insurance premiums.

9.0 SAVING CLAUSE

Conflicts arising from the implementation of the provisions of this Circular shall be resolved by the Department of Education, upon prior consultation with the Department of Budget and Management.

10.0 EFFECTIVITY

This Circular Letter shall take effect on July 1, 2003.

Adopted: 03 November 2003