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TO:	The Minister of the Budget

WHEREAS, the BIR as a premier income-producing agency of the national government has consistently increased its internal revenue collections and reduced the cost of collection thereof;

WHEREAS, the Government has recognized the necessity of giving a higher salary scale to personnel of critical offices such as the Bureau of Internal Revenue;

WHEREAS, by the promulgation of P.D. 640, BIR personnel were granted an average salary increase of about seven (7) ranges over and above the salary ranges of personnel of other government offices;

WHEREAS, consistent with.this government policy further adjustments of salaries of BIR personnel were made in 1977 and 1979;

WHEREAS, with similar salary increases given to personnel of other national government agencies also in 1977 and 1979, BIR personnel no longer enjoy the advantage in compensation as provided in P.D. 640 and re-established in P.D. 935;

WHEREAS, in recognition of the performance of BIR officials and employees for the past five (5) years and due to the rising costs of living brought about by the energy crisis, there is a need to upgrade the salary scale of BIR personnel, consistent with the policy of the government to establish compensation standards, policies, rules and regulations applicable to critical government agencies;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by law do hereby order the implementation of salary adjustment equivalent to one salary step effective August 1, 1980 to officers and employees of the BIR.  The salary adjustments covered by this Letter of Instruction shall be drawn from savings of the said Bureau and/or Salary Adjustment Fund m the CY 1980 General Appropriations Act.

Done in the City of Manila, this 1st day of August, nineteen hundred eighty.