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WHEREAS, Senate and the House of Representatives Joint Resolution No. 4, s. 2009, authorizes the President of the Philippines to modify the existing Compensation and Position Classification System of civilian personnel and the Base Pay Schedule of military and uniformed personnel;

WHEREAS, said authority shall be exercised in accordance with the governing principles, coverage and particulars of the modified Compensation and Position Classification System prescribed in the Joint Resolution;

WHEREAS, the amount of P18.4 billion is appropriated under the Miscellaneous Personnel Benefits Fund in Republic Act No. 9524 or the Fiscal Year 2009 General Appropriations Act, to cover the compensation adjustments necessary to implement the first tranche of the modified Salary Schedule for civilian personnel and Base Pay Schedule for military and uniformed personnel in the national government;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, Presidential Decree No. 985, Presidential Decree No. 1597, Republic Act. No. 6758, as amended by the Senate and House of Representatives Joint Resolution No. 01 approved on March 7, 1994, and Senate and House of Representatives Joint Resolution No. 4 approved on June 17, 2009, do hereby cider and direct:

SECTION 1. Purpose - This Executive Order is issued in accordance with House of Representatives Joint Resolution No. 4, s. 2009, and shall:

(a) prescribe the first tranche of the modified salary schedule of civilian personnel and base pay schedule of military and uniformed personnel in the government; and

(b) direct the review and modification of the position classification system.

SECTION 2. Coverage and Exclusion -

(a) Civilian Personnel - The modified Compensation and Position Classification System shall cover all positions for civilian personnel in the Executive, Legislative and Judicial Branches, the Constitutional Commissions, State Universities and Colleges (SUCs), Government-Owned or Controlled Corporations (GOCCs), Government Financial institutions (GFIs), and Local Government Units (LGUs), whether regular, casual, or contractual in nature, appointive or elective, on full-time or part-time basis, now existing or hereafter created.

The following shall be excluded from the coverage of the System:

(i) individuals and groups of personnel whose services are engaged through job orders, contracts of services, or others similarly situated; and

(ii) positions for civilian personnel in government entities which are authorized by law to adopt, and are actually implementing their own compensation and position classification systems.

(b) Military and Uniformed Personnel - The modified Base Pay Schedule provided in item (8) of said Joint Resolution, shall cover the military personnel under the Department of National Defense (DND) and uniformed personnel under the Department of the Interior and Local Government (DILG), Philippine Coast Guard (PCG), and National Mapping and Resource Information Authority (NAMRIA).

SECTION 3. Implementation Period -

(a) For national government agencies (NGAs), the Salary Schedule in item (4)(b) and the Base Pay Schedule in item (8) of said Joint Resolution, shall be implemented in four (4) equal yearly tranches, but in no case beyond four (4) years.

(b) For GOCCs, GFIs, and LGUs, the implementation period shall be four (4) years or more depending on their financial capability.

SECTION 4. First Tranche of Implementation -

(a) For Civilian Personnel -

(i) For NGA, GOCC and GFI Personnel -

The salary rates shall be in accordance with the First Tranche Monthly Salary Schedule for Civilian Government Personnel Effective July 1, 2009, attached as Annex “A”.

(ii) For LGU Personnel -

The salary rates for LGU personnel shall be determined by the sanggunian, on the basis of LGU income class and financial capability: Provided, That such salary rates shall not exceed the applicable percentages shown in the table below, pursuant to item 7(a) of the Joint Resolution: Provided, Further That the resulting personal services (PS) cost shall not exceed the PS limitation in local government budgets, as provided under Sections 325(a) and 331(b) of Republic Act No. 7160: Provided, Finally That there shall be no diminution in the basic salaries of incumbents for purposes of complying with said PS limitation.

Percentages of Salary Rates Shown in Annex "A"
	For Provinces/Cities	For Municipalities
Special Cities	100%
1 st Class	100%	90%
2 nd Class	95%	85%
3 rd Class	90%	80%
4 th Class	85%	75%
5 th Class	80%	70%
6 th Class	75%	65%

For this purpose, the DBM shall issue the First Tranche Monthly Salary Schedule for Local Government Personnel for each LGU income class which shall take effect January 1, 2010.

(b) For Military and Uniformed Personnel -

The base pay rates shall be in accordance with the First Tranche Monthly Base Pay Schedule for Military and Uniformed Personnel Effective July 1, 2009, attached as Annex “B.”

SECTION 5. Uniform Implementation in Case of Insufficiency of Funds

(a) GOCCs and GFIs which do not have adequate or sufficient funds shall implement salary schedules which shall be at uniform percentages of the salary rates in Annex “A.”

(b) Likewise, LGUs which do not have adequate or sufficient funds to implement the maximum salaries prescribed for the LGU income class shall implement salary schedules which shall be at uniform percentages of the salary rates in the First Tranche Monthly Salary Schedule for Local Government Personnel.

SECTION 6. Changes in Position Titles and Salary Grade Assignments of Certain Positions -

The position titles and salary grade assignments of the entry levels of the following positions are hereby modified:

 

Position Title	Salary Grade
	From	To
Teacher I	10	11
Nurse I	10	11
Medical Officer I	14	16
Accountant I	11	12
[Legal Officer I] Attorney I	[14]	16

The DBM, in coordination with the Civil Service Commission (CSC), shall review the other levels of the above-listed positions and other classes of positions to determine their appropriate levels, and to allocate them to their proper salary grades.

Accordingly, the DBM, in coordination with the CSC, shall update the Index of Occupational Services, Occupational Groups, Classes, and Salary Grades, in accordance with organizational, technological, professional and other developments.

SECTION 7. Non-Diminution in the Basic Salaries of Incumbent Employees - In no case shall there be any diminution in the basic salaries of incumbent employees upon the implementation of the Joint Resolution and this Executive Order.

SECTION 8. Funding Sources - The funding sources for the amounts necessary to implement the modified Compensation and Position Classification System shall be as follows:

(a) For NGAs, the amounts shall be charged against appropriations set aside for the purpose in the FY 2009 General Appropriations Act (GAA) and from savings generated by the different departments, bureaus, offices and agencies of the national government. Thereafter, such amounts as are needed shall be included in the annual GAA,

(b) For GOCCS and GFTs, the amounts shall come from their respective corporate funds in the approved corporate operating budgets.

(c) For LGUs, the amount shall be charged against their respective local government funds.

SECTION 9. Applicability to Certain Constitutional Officials. - Pursuant to Section 6 of Article VII and Section 10 of Article VI of the Constitution, the salaries prescribed herein for the President of the Philippines, Vice-president of the Philippines, and Members of Congress shall take effect only after the expiration of the respective terms of the present incumbents.

SECTION 10. Subsequent Issuances. The President, upon recommendation by the DBM, shall issue such other Executive Orders to fully implement the provisions of Senate and House of Representatives Joint Resolution No. 4, s. 2009.

SECTION 11. Effectivity. - This Executive Order shall take effect immediately.

Done in the City of Manila this 17^th day of June in the year of our Lord, Two Thousand and Nine.


By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

Annex “A”

First Tranche Monthly Salary Schedule for Civilian Government Personnel
Effective July 1, 2009 for National Government Personnel
(In Pesos)

Salary Grade	Step 1	Step 2	Step 3	Step 4	Step 5	Step 6	Step 7	Step 8
1	6,862	7,000	7,140	7,285	7,432	7,583	7,737	7,895
2	7,446	7,749	7,749	7,906	8,065	8,229	8,397	8,569
3	8,080	8,409	8409	8,580	8,753	8,932	9,113	9,301
4	8,713	9,069	9,069	9,252	9,441	9,634	9,830	10,031
5	9,396	9,780	9,780	9,978	10,181	10,390	10,601	10,819
6	10,133	10,338	10,548	10,761	10,981	11,206	11,434	11,669
7	10,858	11,076	11,302	11,531	11,766	12,005	12,251	12,503
8	11,636	11,871	12,110	12,357	12,607	12,864	13,128	13,396
9	12,469	12,721	12,978	13,242	13,510	13,785	14,067	14,353
10	13,333	13,603	13,877	14,158	14,445	14,740	15,040	15,348
11	14,198	14,483	14,775	15,072	15,379	15,691	16,011	16,335
12	15,119	15,422	15,733	16,050	16,374	16,706	17,044	17,390
13	16,101	16,424	16,753	17,089	17,433	17,786	18,147	18,514
14	17,147	17,490	17,839	18,197	18,563	18,938	19,321	19,711
15	18,292	18,661	19,040	19,426	19,822	20,228	20,640	21,064
16	19,514	19,906	20,309	20,722	21,142	21,573	22,013	22,462
17	20,819	21,237	21,665	22,102	22,552	23,009	23,477	23,995
18	22,214	22,659	23,115	23,581	24,057	24,542	25,041	25,549
19	23,703	24,177	24,661	25,157	25,664	26,182	26,710	27,251
20	25,295	25,799	26,314	26,842	27,381	27,931	28,494	29,070
21	26,671	27,200	27,741	28,293	28,856	29,433	30,024	30,626
22	28,134	28,687	29,254	29,832	30,424	31,029	31,647	32,278
23	29,684	30,265	30,861	31,467	32,086	32,720	33,368	34,030
24	31,334	31,943	32,567	33,201	33,853	34,516	35,195	35,890
25	33,085	33,724	34,376	35,044	35,725	36,422	37,133	37,862
26	34,945	35,615	36,301	37,001	37,716	38,446	39,193	39,956
27	36,923	37,627	38,347	39,080	39,830	40,597	41,380	42,181
28	39,026	39,766	40,521	41,291	42,078	42,882	43,705	44,545
29	41,264	42,041	42,833	43,642	44,469	45,314	46,176	47,056
30	45,941	46,813	47,705	48,615	49,544	50,495	51,464	52,455
31	59,186	60,351	61,540	62,757	64,000	65,272	66,570	67,898
32	67,677	69,008	70,369	71,760	73,181	74,634	76,119	77,637
33	82,400

Annex “B”

First Tranche Base Pay Schedule for Military and Uniformed Personnel
Effective July, 2009
(In Pesos)

DND	DILG		PCG and NAMRIA	Monthly Base Pay
	BJMP and BFP	PNP and PPSC
Candidate Soldier				8,630
Private	Fire/Jail Officer I	Police Officer I	Apprentice Seaman/ Seaman Third Class	10,808
Private First Class			Seaman Second Class	11,513
Corporal	Fire/Jail Officer II	Police Officer II	Seaman First Class	12,210
Sergeant			Petty Officer III	12,891
Staff Sergeant	Fire/Jail Officer III	Police Officer III	Petty Officer II	13,628
Technical Sergeant			Petty Officer I	14,540
Master Sergeant	Senior Fire/ Jail Officer I	Senior Police Officer I	Chief Petty Officer	15,513
Senior Master Sergeant	Senior Fire/ Jail Officer II	Senior Police Officer II	Senior Chief Petty Officer	16,552
Chief Master Sergeant	Senior Fire/ Jail Officer III	Senior Police Officer III	Master Chief Petty Officer	17,664
First Chief Master Sergeant	Senior Fire/ Jail Officer IV	Senior Police Officer IV	First Master Chief Petty Officer	18,850
Cadet		Cadet		18,850
Probationary Second Lieutenant				18,850
Second Lieutenant			Ensign	20,708
First Lieutenant	Inspector	Inspector	Lieutenant Junior Grade	21,836
Captain	Senior Inspector	Senior Inspector	Lieutenant Senior Grade	23,128
Major	Chief Inspector	Chief Inspector	Lieutenant Commander	24,202
Lieutenant Colonel	Superintendent	Superintendent	Commander	25,543
Colonel	Senior Superintendent	Senior Superintendent	Captain	26,967
Brigadier General	Chief Superintendent	Chief Superintendent	Commodore	28,481
Major General	Director	Director	Rear Admiral	30,090
			Vice Admiral	31,801
Lieutenant General		Deputy Director-General	Admiral	35,428
General		Director General		37,500