MALACANANGMANILA

1/,

.BY THE PRESIDENT OF TilE PHILIPPINES

EXECUTIVE ORDER NO. 389

IMPLEMENTING THE FOURTH AND FINAL YEAR SALARYINCREASES AUTIIORIZED BY JOINT SENATE AND HOUSE OFREPRESENTATIVES RESOLUTION NO.1, SERIES OF 1994

WHEREAS, Congress through RA No. 8244 has appropriated theamount of Twenty-Seven Billion Pesos (P27,000,000,000), or so muchthereof as may be necessary, for the fourth and final year ofimplementation of the salary increases authorized by Joint Senate-Houseof Representatives Resolution No. 01, Series of 1994, for all nationalgovernment civilian and uniformed personnel, in two (2) payments: 1)effective January 1, 1997 equivalent to fifty percent (50%) of theunimplemented balance! as of DeceMber 31, 1996 of the basic paycorresponding to the Salary Grade concerned, and 2) effective November1, 1997 the remaining fiftY percent (50%) of said unimplemented balanceto effect full salary adjustment; .

WHEREAS, the government has adopted with some modificationsthe Salary Schedule in the revised Compensation and PositionClassification System fdr the government recommended by Congressthrough said J<?int Resolution No.. 01 for implementation within four (4)ye&rs or not later than 1997;

WHEREAS, through said Joint Resolution the Senate and House ofRepresentatives have also categorically recognized and ?cknowledged theauthority of the President of the Philippines to revise the existingCompensation and Position Classification System in the governmentunder

the standards and guidelines therein provided;

WHEREAS, it has been determined more appropriate for aneffective compensation administration to adopt a 33-Grade SalarySchedule instead of the 35-Grade Salary Schedule recommended byCongress;

WHEREAS, said Salary sc~ edUl ~ modified to 33-Salary Gtadeswas partially implemented in 1994, ".95'and 1996 through ExecutiveOrder Nos, 164,218 and 290, res cllvely; '.'

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,WHEREAS, consultations have also been made with various'

leagues of local government units regarding the full implementation ofthe said Salary Schedule.

NOW, THEREFORE. I, FIDEL V. RAMOS, President of theRepublic of the Philippines, by virtue of the powers vested in me by theConstitution, P.D. No. 985, P.D. No. 1597, RA No. 6758, RA No. 8244and said Joint Resolution No.1 of Congress, do hereby order and direct:

SECTION 1. Salary Schedule. The 35~Grade Salary Schedule forCivilian personnel recommended by Congress through Senate-House ofRepresentatives Joint Resolution No.1, s. 1994, and adopted underExecutive Order No. 164, dated March 7, 1994 with modifications, ishereby modified to 33-Lrades Salary Schedule consistent with thoseprescribed in RA No. 6758.

SEC. 2. Fulllmplementation. The Department of Budget andManagement is hereby directed to implement in full in FY 1997 theremaining balance of said Salary Schedule after the partialimplementation made of the same in 1994, 1995 and 1996 to Civilianand :uniformed personnel, as follows: ~

For Civilian Personnel

1.

.Effective January 1, 1997 = in accordance with the

Fourth Interim Salary Schedule hereto attached andmarked as Annex A of :this Order. The adjustmentshall be to the designated salary step of the employeein the salary grade a\"'location of his position as ofDecember 31, 1996;' ..\

a.b.

'~i'. .Effective November 1, i997 = injJ.ccordance with theattached Salary Sche. 4ur~ ~arked as Annex B of thisOrder. The adjustme~,~~shall ?e to the designatedsalary step of the e~~oyee In th,e salary gradeallocation of his position ~ of October 31, 1997.

2. For Uniformed Personnel

In accordance with the attached Fourth Interim SalarySchedule marked as Annex C of this Order for the.implementation effective January" 1, 1997 and with the

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for fullSalary Schedule marked as Annex Dimplementation effective November 1, 1997.

the

SEC. 3. Coverage and Exemption. This Order shall cover onlyofficials and employees of the National Government Agencies (NGAs) ,Government-Owned and/or Controlled Corporations (GOCCs) ,Government Financial Institutions (GFIs) and Local Government Units(LG,Us) whose basic salaries conform to the Third Interim SalarySchedule prescribed under Executive Order No. 290, dated January 2,1996. Officials and employees of agencies who are exempted by law fromthe Compensation and Position Classification System and/ or do notfollow the Salary Schedule prescribed for government personnel are notentitled to the salary increases authorized herein.

SEC. 4. Salary Grade Allocation of Positions. The salary gradeallocation of positions pursuant to RA No. 6758 shall be maintained.

SEC. 5. Continuation of the Personnel Economic ReliefAllowance (PERA) and Additiorlal Compensation (ADCOM). The PERAand ADCOM authorized under RA No. 7078 and Administrative OrderNo. 53, respectively, shall continue to be paid as allowances and notintegrated into the basic pay.

SEC. 6. Transition Allowance. The transition allowanceresulting from the implementation of RA No. 67~8 and other personneland compensation actions thereafter, including the "over and aboveallowance" of public school teachefs and related personne] shal] beconsidered as advance payment of the salary increases authorizedherein; Provided, That, in the case of public schoo' teachers and related,personnel said "over and above allowance" shall first })c added to thesalary rate in the equivalent salary grade and step under the SalarySchedule marked Annex B before determining the ~propriate salary stepin the salary grade allocation of their position .in the new SalarySchedule.

SEC. 7. Allowances and Bellefits Based on Percentage ofBasic Salaries. Notwithstanding the salary increases authorized herein,there shall be no corresponding increase in the present allowances andbenefits being received by officials and~mployees which are based on apercentage of their basic salaries.

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SEC. 8. Flexibility for Local Govemment Units. Flexibility ishereby given to each LGU to set its own schedule for the implementationof the herein authorized salary increases depending on its financialcapability: Provided, That, the implementation of the same shall be inaccordance with the schedule prescribed for civilian personnel in Section1 herecf, and the percentage application under Section 10 of RA No.6758 strictly complied with.

SEC. 9. Separation from Govemment Service. For those whowill be compulsorily separated from government service for havingreached the age of mandatory retirement, or due to death,sickness/ disability in 1997 but before the full implementation effectiveNovember 1, 1997, their retirement/separation benefits, gratuity andpayment of accumulated leave credits shall be computed on the basis ofthe salary rate in the Salary Schedule in Ann.ex B hereof correspondingto their previous designated salary step; Provided, That, those who will becompulsorily retired on' account of having reached the age of mandatoryretirement will be given the option to retire pursuant to RA No. 660 andthe difference between the lump-sum amount that the retiree will receiveunder RA No. 660 and the amount of retirement benefit had theemployee retired under RA 1616, shal1 still be p~id to the retiringemployee by the last employer.

SEC. 10. Funding Source. The funding sources for the amountsnecessary to implement the herein authorized salary increases shall be.as follows: I.

For NGAs, the amount shall be charged against theP27.0 Billion appropriated for the purpose under saidRA No. 8244 and acco'Fdingly set aside for the purposein their respective budgets for FY 1997.

a.

b.

."For GOCCs and GFIs, the amount shall be chargedagainst their respective corporate funds.

For LGUs, the amount shall be charged against theirrespective funds.

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GOCCs, GFIs and LGUs which do not have adequate or sufficientfunds to pay the salary increases prescribed herein, may only partiallyimplement the established rated; Provided, That, any partialimplementation shall be fIXed at a uniform percentage such that no

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official or employee shall receiv~'t~:percentag~ adjustment higher than".!,~-

.SEC. 11. Prohibition. Pursuant to Section 4 of said RA No. 8244,

the salary adjustment herein authorized, shall not benefit the President,the Vice President and Members of Congress.

SEC. 12. Implementing Guidelines. The Department of Budgetand Management shall prepare and issue the necessary guidelines forthe implementation of this Executive Order. .

Effectivity. Thi~ Executive Order shall take effectSEC. 13.January 1, 1997.

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DONE in the City of Manila this 28th day of December in the yearof Our Lord, Nineteen Hundred and Ninety Six.'.

.,

By the President:

Executive Secretary

P~AS LIBRARYBEURCG/eib

'Jf'\~Rc:~i\'

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JAr..) 0 7 1997

Date ~

that of any oth~r officialjemployee',W the same corporate entity and local i!government umt. .' \ I

ANNEX B

SALARY SCHEDULEFor Civilian Personnel

Full implementation effective November 1, 1997

~ ~t~ Step 2 Step 3 Step 4 ~p.5 J Step 6 Step 7 Step 8

440047965228564660986585704675408067:8605:91219668

102481086311515:12206

11293813715

1145381541016026166671733418028'

11874919499\20279f2109021934250003500040000

150000

451014916:53581

15787625067507222772882698821

1934999101

10505111135

11803j12511

I'

1326214058114901

,15795

1642717084177671 8479'

I

19218,19986

120786

21617122482

125625

358751I

41000

462350395492593264066919

740317921

8476[90419583.

10158110767!

11413"120981282413593

1144091527416190168381751118212 !

18941

119698

20486121306122158

123044

26266136772'

42025:

473~5165,563060806566709275888119

'8688'I

9267'9822

104121103611699124001314513933

11477015656165951725917949:18667!19414 '

I20191209982183822712

2362C1r

26922137691'43076:

485',52945770623216731

726917778'832289059499

10068,106721131211991,12710:13473114282115139116047

117010~

1769011839819133

19900,2069512152322384232792421127595138633

441531

4978542659156388689974517972853091279736

103201093911595122911302813810.146391551716448, 17435

18132188581961220397'-

21213!,22061122944238612481628285!39599'

45256j

5103556260626547707176378172874493569980

1057811212118851259813354141551500515905168601787118586193292010220907'2174322613235172445825436128992140589

463881

523057016214671172487828837689629589

10229108421149312182129131368814509153801630317281183181905019812120605!21430;2228723178241052506926072

29717141604

47547:

12345678910111213141

15116

171819 i

20212223242526272829

30313233

ANNEX C

FOURTH INTERIM SALARY SCHEDULEFor Uniformed Personnel

For implementation effective January 1, 1997

R A N K

EffectiveJan. 1, 1997MONTHLY

BASIC PAY

NAMRIACommissioned &

Enlisted Personnel

PNP/EquivalentDILG Uniformed

PersonnelAFP

Enlisted Ranks

400014600

47001

49001

Seaman, 3rd Class

Seaman, 2nC: :;Iass

Seaman, 1st Class

Police Officer IPolice Officer IIPolice Officer III

Candidate SoldierPrivatePrivate, First Class

Corporal

INon-Commissioned

Officers

54001570063356995

Senior Police Officer ISenior Police Officer IISenior Police Officer IIISenior Police Officer IV

PettyPettyPettyChief

SergeantStaff SergeantTechnical SergeantMaster Sergeant

Cadet 7840:83951

I

90559620

10055

EnsigrlLieutenant, Jr. GradeLieutenant, Sr. Grade

InspectorSenior Inspector

CadetProb. 2nd LieutenantSecond LieutenantFirst Lieutenant

Captain

Field Grade Officers

Lt. Coml

Commal

Captain

107301123011795

Chief Inspector

SuperintendentSenior Superintendent

MajorLieutenant ColonelColonel

General Officers

Commodore12840i133401421015650

Brigadier GeneralMajor GeneralLieutenant GeneralGeneral

Chief SuperintendentDirectorDeputy Director-GeneralDirector':General

Office!Office!

Officel

Petty'

rill

r IIr IOfficer

mandernder

4 ANNEX D

SALARY SCHEDULE ..~.

For Uniformed Personnel"

For implementation effeo~ive Nove.nber 1,1997

R A N K

EffectiveJan. 1, 1997MONTHLYBASIC PAY

PNP/EquivalentDILG Uniformed

Personnel

NAMRIACommissioned &

Enlisted Personnel~

AFP

40001500')

!530056001

Police Officer IPolice Officer IIPolice Officer III

Seaman, 3rd Class,Seamanj 2nd Class"Seaman..1,st Class

Enlisted Ranks

Candidate SoldierPrivatePrivate, First Class

Corporal

..

INon-CommisSioned Officers

Senior Police Officer ISenior Police Officer IISenior Police Officer IIISenior Police Officer IV

Petty Officer IIIPetty Officer IIPetty OfficJ. IChief Petty Officer

6400

16800

7700:8500

SergeantStaff SergeantTechnical SergeantMaster Sergeant

ICompany

Grade Officers

Cadet 98001106001140012000

124001

CadetProb. 2nd LieutenantSecond LieutenantFirst Lieutenant

Captain

EnsignLieutenant, Jr. GradeLieutenant, Sr. Grade

InspectorSenior Inspector

IField

Grade Officers

~Lt.,CommanderCommanderCaptain.

1290011340014000

MajorLieutenant ColonelColonel

Chief InspectorSu peri ntendentSenior Superintendent

IGeneral

Officers

Commodore 14800;15300116100

116600

Brigadier GeneralMajor GeneralLieutenant GeneralGeneral

Chief SuperintendentDirector

Deputy Director-GeneralDirector-General,