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[ LETTER OF IMPLEMENTATION NO. 103, October 01, 1979 ]


WHEREAS, pursuant to the mandate of the Constitution, P.D. No. 985 was issued to standardize compensation of government officials and employees, including those in government-owned and controlled corporations, taking into account the nature of the responsibilities pertaining to, and the qualifications required for, the positions concerned;

WHEREAS, the said Decree authorizes the adoption of additional financial incentives for viable and profit-making corporations and those performing critical functions, to be supported from net earnings and profits of such corporations;

WHEREAS, for purposes of rationalizing Compensation and Position Classification systems for groups of corporations belonging to the same functional sectoral interests which presently maintain differing compensation and position classification plans, the said Decree and subsequently LOI No. 62, created Compensation Committees to formulate and recommend policies and standards governing classification, compensation, allowances and incentives for such groups of corporations;

WHEREASE, LOI No. 841 directed the Compensation Committees to submit immediately for Presidential approval, adjustments in salary, allowances and fringe benefits as may be called for by present economic conditions, for government-owned or controlled corporations,

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines by virtue of the powers vested in me by law, do hereby instruct the implementation of the Uniform Position Classification and Pay Plan for the Agricultural/Promotional/ Trading group of corporations:

1.  Scope of the Plan–The Position and Compensation Plans for the Agricultural/Promotional/Trading group shall apply to the following corporations:

Agricultural Credit Administration
Cooperatives Development Loon Fund
Export Development Corporation
Natioanl Grains Authority
Philippine Coconut Authority
Philippine Convention Bureau
Philippine Cotton Corporation
Philippine Fish Marketing, Authority
Philippine International Trading Corporation
Philippine Shippers’ Council
Philippine Tobacco Administration
Philippine Virginia Tobacco Administration

2.  Position Classification – Positions shall be classified by the Ministry of the Budget on the basis of the national classification and pay plans. The position classification plan for each of the corporations in the agricultural/Promotional/Trading Group shall be determined on the basis of duties and responsibilities.

3.  Compensation Schedule – The schedule attached to this Letter shall comply the compensation schedule applicable to positions paid on monthly or annual basis.

4.  Salaries for Top Taroo Management  Positions – The compensation of the executive positions in a corporation shall depend upon the asset size of the corporation and upon its overall financial performance. The maximum levels of basic salary for the top positions in the largest corporations shall be as follows:
President/General Manager/HeadP82,000
Senior Deputy General Manager 73,000
Deputy General Manager 66,000

Provided,  That salaries actually being received by any official in excess of these rates may continue, subject to item no. 6 hereof.

5. Maximum Level of Allowances and Benefits – Existing policies on allowances and other benefits now in force for each corporation shall be maintained.

6. Implementing Details – Details for implementing the Position and Compensation plan shall be issued by the Ministry of the Budget, which shall observe the following guidelines:

a. The increases shall be staggered within the limits of corporate financial performance. No government subsidy or equity investment shall be approved to finance any salary increase.

b. The implemented total increase in basic salary, allowances and fringe benefit in any one year shall not exceed twenty five percent (25%) of the actual total personel services expenses of the immediately preceding year, adjusted for increases in staffing;

c. An across the board increase of ten per cent (10%) in basic salary shall be immediately implemented for the various corporations, except for senior executive positions where existing scales exceed those indicated by item no. 4 of this Letter. This shall be considered as an interim measure pending the completion of the study described under Item No. 2 hereof;

d. The allowances and/or fringe benefits of senior executive whose basic salary already exceed those specified in item no. 4hereof may be increased to make up for any difference between actual compensation now received and the amount otherwise ‘authorized under this Letter;  

e. Hiring rates for positions shall be established for each corporation, depending upon its size and profitability;

f. The implementation schedule for corporations incurring a loss in 1970 shall be prepared by the corporations concerned hand inland with a profit plan and shall be subject to case to case approval by the Ministry of the Budget; and

g. Any changes in the approved position classification and pay plans, including reclassification action, shall be subject to the approval of the Minister of the Budget.

7.  Effectivity Date – The Position Classification and Compensation Plans herein directed shall take effect on May 1, 1979.

Done in the City of Manila, this 1st day of October, in the year of Our Lord, nineteen hundred and seventy-nine.

  President of the Philippines

By the President:

Presidential Executive Assistant

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