1.0 Purpose

This Circular is being issued to prescribe rules and regulations in the computation of the salary adjustments of public school teachers and related personnel with over-and-above allowance (OAA) under NBC No. 458 due to rescission pursuant to Executive Order No. 1 of the proviso on the said OAA under EO No. 389.

2.0 Coverage

All public school teachers and related personnel who received OAA from local government units which were absorbed and paid by the national government effective July 1, 1989.

3.0 Rules and Regulations

A. For those who were not promoted or whose positions were not reclassified from July 1, 1989 to the present.

1. Their salary steps shall be determined based on the total of their salaries under NCC No. 56 and the amount of OAA they were actually receiving as of June 30, 1989.
   
   
2. Under existing salary rules, the salary of an employee that is between or equal to any of the steps shall be adjusted to the next higher step of the salary grade of his position. If it exceeds the eighth (8th) step of the salary grade of his position, he shall be allowed or continue to receive that salary.
   
   
3. Their adjusted salaries as of January 1, 1999 shall be the rate corresponding to the salary step as determined above, under the salary schedule contained in NBC 458.

Illustrative Examples
For employees who were not promoted or whose positions were not reclassified up to the present

	Case I	Case II	Case III	Case IV
Teacher I	3,102	3,102	3,102	3,102
Add: OAA	30	150	200	832
	3,132	3,252	3,302	3,934
	=====	=====	=====	=====

Adjusted Salary effective July 1, 1989 (NCC No. 56)

SG-10	step 2 3,133	step 6 3,260	step 8 3,325	step 8 3,325*
	====	====	=====	=====

Adjusted salary effective January 1, 1999 (Annex B of NBC No. 458)

SG-10	step 2 8,821	step 6 9,736	step 8 10,229	step 8 10,229
	====	====	=====	=====

*The incumbent shall be allowed to continue to receive his previous salary of P3,934.

B. For those who were promoted or whose positions were reclassified between July 1, 1989 to December 31, 1998.

Ex: Teacher I, SG-10 promoted/reclassified to Teacher III, SG-12 effective November 1, 1994

1. Their salary steps shall be determined based in the total of their salaries before their promotion or the reclassification of their positions and the OAAs they were actually receiving as of June 30, 1989.
   
   
2. Under existing salary rules, promotion/reclassification shall be to the hiring rate of the position except when the employee is already receiving a salary higher than the hiring rate in which case his salary shall be adjusted to the next higher step or allowed to continue receiving his salary if it is higher than the 8th step of the salary grade of the higher position.
   
   
3. The salary steps at which the employee were promoted or their positions were reclassified shall be retained and made the basis of salary adjustment herein authorized.

Illustrative Examples
For employees promoted or whose positions were reclassified between July 1, 1989 to December 31, 1998.

Teacher I, SG-10 promoted/reclassified to Teacher III, SG-12 in FY 1994

Salary before
Promotion/reclassification

(NCC No. 72)	3,902	3,902	3,902	3,902
Add: OAA	30	150	200	832
	3,932	4,052	4,102	4,734
SG-10	step 2 3,933	step 6 4,060	step 8 4,105	step 8 4,125**
	====	====	====	====
Salary upon promotion/reclassification (NCC No. 72)
SG-12	step 1 4,240	step 1 4,240	step 1 9,668	step 8 11,493
	=====	====	====	=====

**The incumbent shall be allowed to continue to receive his previous salary of P4,7734.

N.B.

An employee whose salary is not yet at the eighth step shall still be entitled to step increments due to length of service. The reckoning date for the grant thereof shall be based on the date he was appointed to his position in the case of Rule A or from the date of his promotion or the reclassification of his position in the case of Rule B.

4.0 Saving Clause

As only the Items on the over-and-above allowance of public school teachers and related personnel are being amended/deleted, all the rules and regulations prescribed under NBC No. 458 shall continue to be adopted.

5.0 Funding Source

The additional funding requirement shall be sourced from the CY 1999 Miscellaneous Personnel Benefits Fund (MPBF).

6.0 This Circular shall take effect January 1, 1999.

Adopted: 01 Jan. 1999

(SGD.) BENJAMIN E. DIOKNO
Secretary