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TO:	The Minister of the Budget

WHEREAS, the Constitution provides for the standardization of compensation of government officials and employees, including those of government owned or controlled corporations;

WHEREAS, PD 985 establishes a system of compensation standardization and position classification for all government employees;

WHEREAS, PD 985 empowers critical government agencies,   corporations and financial institutions to provide more incentives for their personnel despite a standardized salary system for all government officials and employees;

WHEREAS, the BIR being the premier income-producing agency of the national government may be considered as one of most critical and sensitive government agencies;

WHEREAS, increases in the cost of living call for increased salaries of government personnel;

WHEREAS, the previous exemption of certain agencies of the government from the coverage of the National Compensation and Classification Plan calls for a specific study of their compensation plans preparatory to the adoption of measures to increase salary;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, wishing to ensure a fully rational compensation system in the Government, do hereby order and instruct:

1. The Minister of the Budget shall study the existing compensation plan of the Bureau of Internal Revenue with the purpose of recommending salary increase measures consistent with the policy of Government to establish compensation standards, policies, rules and regulations applicable to critical government agencies.
   
   
2. In his study, the Minister of the Budget shall closely coordinate with the Minister of Finance and the Commissioner of Internal Revenue.

Done in the City of Manila, this 5th day of September, in the year of Our Lord, nineteen hundred and seventy-nine.