manual onstorage.googleapis.com/request-attachments...philippine government evolved as follows: 1.1...

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Department of Budget and ManagementManila, Philippines

MANUAL. ON

POSITION CLASSIFICATIONAND

COMPENSATION

Organization, Position Classification and Compensation Bureau

February 2007

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FOREWORD

"Equal :pay for substantially equal work and responsibility." The principlerecognizes the fact that requirements and demands for performance vary inrelative degrees from position to position. Fairness and equity require thatsimilar or substantially similar positions should receive similar pay.

The Philippine Government, in administering the Position Classification andCompensation System (PCCS) established under Republic Act No. 6758 or theCompensation and Position Classification Act of 1989, is guided by thisuniversally accepted principle.

For this reason, positions in the government are grouped into classes byoccupational groups on the basis of similarity and level of work to determinetheir relative worth. A reasonable gap between salary levels is maintained toclearly define the distinction between the different job levels and recognizegradations in duties and responsibilities.

Notwithstanding its noble objectives, the PCCS is not fully understood. This iswhy the Department of Budget and Management (DBM) prepared this Manual onPosition Classification and Compensation.

The Manual is a comprehensive documentation of the policies, rules, regulations,procedures and practices relative to the administration and maintenance of thePCCS. It reflects the legal bases as well as recent issuances, circulars, and otherpolicy and procedural changes affecting the system.

It is hoped that this Manual will enhance the capability of officials and employeesconcerned in the proper administration and maintenance of the PCCS.

ROJtOO G. ANOAYA, 'R.Secretary

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ACKNOWLEDGMENT

The DBM, through the Organization, Position Classification and CompensationBureau (OPCCB), greatly appreciates the contribution of the following DBMofficials and staff in the preparation of this Manual:

To then Secretary Emilia T. Boncodin, whose vision and direction paved theway for the preparation of the Manual;

Undersecretary Cynthia G. Castel, for the introduction of new ideas andapproaches used in the Manual;

OPCCB Director Solita S. Recolizado and Assistant Director Clemente Z.Sosito who guided previous and existing OPCCB complement, namely: Ms.Gloria E. Lauzon, Ms. Arceli J. Arcaina, Mr. Edgardo M. Macaranas, Ms.Sharlene L. Raquitico, Ms. Maria Theresa Beverly M. Tirol-Wadel, andMs. Maria LourdesZ. Trinidad-Aganon and their technical staff in thepreparation of their respective assigned chapters;

To other staff of the OPCCB, namely: Ms. Rose V. Nera, Ms. Arlene J.Opolento, Mr. Rodel G. Orantes, and specially Ms. Emilia V. Nobleza whorendered invaluable administrative services in the preparation of the Manual; and

Ms. Sharlene L. Raquitico, for updating and editing the Manual with thesupport of the present OPCCB staff.

~S~Director

II Table of Contents

I Foreword

Chapter 1 Overview of the Position Classification and Compensation System

I The American Regime 1-1Act No. 102 1-1

I The Commonwealth Regime 1-2Commonwealth Act No. 402 1-2

IThe Philippine Republic 1-4

The Position Classification and Pay Plans of 1957 1-4The Budgetary Reform Decree on Compensation

Iand Position Classification of 1976 1-6

The Compensation and Position Classification Act of 1989 1-7

I Chapter 2 The Position Classification Plan

Concepts of Position Classification 2-1

I Grouping of Classes Under the Position Classification Plan 2-1Categorization of Classes 2-2Index of Occupational Services, Position Titles and Salary Grades 2-3

,- Class Specification 2-4Position Classification Factors 2-8

1-The Position Classification Process 2-11Administration and Maintenance of the Position Classification Plan 2-19

IChapter 3 The Compensation Plan

Concepts of Compensation 3-1

I Policy of the State 3-3Governing Principles of the Compensation Plan 3-3General Guidelines on Government Compensation 3-4

I Contents of the Compensation Plan 3-4The Salary Schedule 3-5Salary Rules 3-5

I Other Compensation, Allowances and Benefits 3-9Step Increment 3-9

IPersonnel Economic Relief Allowance 3-18Additional Compensation 3-20Uniform/Clothing Allowance 3-23

IRepresentation and Transportation Allowances 3-26Year-End Bonus and Cash Gift 3-32Productivity Incentive Benefit 3-39

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IOvertime Pay 3-43 ICompensatory TIme-Off 3-47Per Diem 3-57 IHonoraria 3-60Honoraria for Government Personnel Involved in Government

Procurement 3-65 INight-Shift Differential Pay 3-70Hazard Duty Pay 3-72Subsistence Allowance 3-76 ILaundry Allowance 3-79Free Quarters for Certain Government Officials 3-81

IFree Quarters Privileges in Hospitals 3-84Special Counsel Allowance 3-85Anniversary Bonus 3-86 ICollective Negotiation Agreement Incentive 3-89Travel Expenses 3-99Terminal Leave Benefit and Monetization of Leave Credits 3-103 ICompensation for Casual Personnel and Those of Same Nature 3-106

Compensation for Contractual Personnel 3-109Maintenance of the Compensation Plan 3-112 IReferences 3-114

Chapter 4 Responsibility Centers in the Administration of the Position -1Classification and Compensation System,

Department of Budget and Management 4-1 -IThe Department/Bureau/Office 4-3Submission of Required Agency Documents/Reports to DBM 4-4 I

Chapter 5 Salary Grades of Positions of Constitutional and OtherOfficialsand their Equivalents ISalary Grades of Positions of Constitutional Officials 5-1Salary Grades of Positions of Equivalent Ranks 5-1 I

Chapter 6 Position Classification and Compensation Scheme for Teaching

IPositions in Elementary and Secondary Schools

The Teachers' Preparation Pay Schedule 6-1

IComponents of the Teachers' Preparation Pay Schedule 6-1Coverage 6-1Basis of Classification of Positions 6-2

ICareer Progression System for Public School Teachers 6-10Career Lines 6-10

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Classroom Teaching career LineSchool Administration Career Line

Compensation Benefits of TeachersHonoraria for Teaching OverloadProportional Vacation PayHardship/Special Hardship AllowanceOne Salary Grade Increase for Retiring Public School

Teachers

Chapter 7 Position Classification and Compensation Scheme for FacultyPositions in State Universities and Colleges

CoverageCommon Criteria for EvaluationQualitative Contribution EvaluationAccreditationDetermination of Appropriate Faculty Rank and SalaryPresidential DiscretionAppointment to Ranks Below ProfessorAppointment to Professor RanksAppointment to College/University Professor RanksConversion of Teaching and Teaching-Related Positions

in Commission on Higher Education-supervised HigherEducation Institutionsand Technical Education and SkillsDevelopment Authority-supervised Technical EducationInstitutions Integrated into State Universities and Colleges

Role of Agencies in the Implementation of National BudgetCircular No. 461

Evaluation CycleAdditional Compensation of Faculty

Chapter 8 Compensation Scheme for Foreign Service Personnel

CoverageDesignation When Assigned AbroadDesignation When in the Home OfficeSystem of Allowances

Overseas AllowanceLiving Quarters AllowancePost AllowanceFamily AllowanceClothing AllowanceMedical AllowanceRepresentation Allowance

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Education AllowanceService Attaches

Chapter 9 Position Classification and Compensation Scheme in LocalGovernment Units

Historical BackgroundBefore Presidential Decree No. 1136Presidential Decree No. 1136Republic Act No. 6758Republic Act No. 7160Administrative Order No. 42Joint Senate and House of Representatives Resolution

No. 01, Adopted on March 3, 1994The Position Classification Scheme for Local Government Units

Position Classification GuideCreation of New Positions/OfficesCreation of a New Class of Positions

The Compensation Scheme for Local Government UnitsBasic SalariesAdoption of Higher Salary ScheduleStep IncrementsOther Compensation, Allowances and Benefits

Representation and Transportation AllowancesPersonnel Economic Relief AllowanceAdditional CompensationYear-End Bonus and cash GiftHonorariaAnniversary BonusFree QuartersOtherCompensation, Allowances and BenefitsCompensation for Local Government Personnel

Designated to Fill Temporary VacanciesCompensation for Members of Local Regulatory

Boards/Quasi-Judicial Bodies and Similar Bodiesin Local Government Units

Compensation for Ex-Officio Members of the LocalSanggunian

Classification of Positions and Compensationfor Barangay Personnel

References .

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Chapter 1

Overview of the Position Classification andCompensation System

The Position Classification and Compensation System in thePhilippine Government evolved as follows:

1.1 The American Regime

During the first three years of the American regime (1898-1900), therewas no formal position classification and salary administration system inthe Philippines. The common designations of positions in the governmentservice were clerk, employee, inspector, teacher, translator-interpreter,stenographer-typist and janitor-messenger. To indicate levels ofdifficulty, adjectives such as deputy, assistant and chief were used.Salaries were paid in Mexican dollars and Spanish-Filipino pesos were setat certain levels. Higher salaries, however, were reserved for theAmericans to attract them to join the civil service. Salaries, on the otherhand, for new positions were arbitrarily fixed by legislative prerogative.The depreciation, however, of the said currencies coupled with theproblems of daily life placed the morale of civil servants on a rather lowprofile.

To resolve the problem, Act NO.5 entitled, "An Act for the Establishmentand Maintenance of an Efficient and Honest Civil Servants in thePhilippines," was enacted by the Philippine Commission on September19, 1900. Among the salient provisions of said Act were the creation ofthe Philippine Civil Service Board which was the forerunner of the CivilService Commission, the delineation of its powers and functions and theestablishment of rules and regulations especially those on positionclassification.

Notwithstanding the established salary rules, the Americans were paidhigher salaries than Filipinos occupying similar positions in the civilservice.

1.1.1 Act No. 102

To uplift the economic status of civil servants and to attractand retain qualified and competent staff, the PhilippineCommission passed Act No. 57 in December 1900directing the Philippine Civil Service Board to conduct a surveyof salaries in the civil service.

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Manual on Position Classification and Compensation

Based on the results of the said survey, a readjustment planwas submitted by the Philippine Civil Service Boardto the Philippine Commission which in turn passed Act No.102 entitled, "An Act Regulating the Salaries of Officers andEmployees in the Philippine Civil Service," dated March 9,1901. Act No. 102 categorized officers and employees of thecivil service into 2 general groups based on their salariesrather than on their duties and responsibilities. The first groupconsisted of 10 classes (1 to 10); the second group, 11 classes(A to K); or a total of 21 classes.

Exempted from the Act were the officers of the Department ofMindanao and Sulu. The Governor-General, with the consent 'of the Philippine Commission, fixed the salaries of the officersof this Department.

With the establishment of the monetary system of thePhilippines, the salary rates provided in the salary scale underAct No. 102 were adjusted from dollars to pesos at the rate of$1 to P2 effective August 26, 1907 pursuant to Act No. 1698.The revised salary scale was followed for many years until theFirst World War.

1.2 The Commonwealth Regime

The economic depression brought about by the First World War forcedthe Philippine Legislature and private firms to cut the salaries of theiremployees. Prices of commodities rose steadily. To alleviate theeconomic plight of the civil servants, the Philippine Legislature createdthe Government Survey Board in 1936 under Commonwealth Act No,Sto conduct a factual survey of all government departments and submitrecommendations concerning, among others, classification of positions,

After a two-year survey, the Board found out that civil servants werepaid on the basis of their civil service eligibilities and not on their dutiesand responsibilities. Promotions, on the other hand, were based onlength of service.

1.2.1 Commonwealth Act No. 402

To eliminate the said inequities, a Personnel and SalaryStandardization Board was created to classify positions based onduties and responsibilities and standardize salaries of civilservice personnel. The recommendations of said Board were putinto effect by virtue of Commonwealth Act (CA) No. 402 entitled,"An Act to Provide for the Classification of Positions andStandardization of Salaries in the Government," dated

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Overview of the Position Classification and Compensation System

September 13, 1938. Said law was patterned after the USClassification Act of 1923, as amended in 1930.

CA No. 402 created a Salary Board composed of theCommissioner of Civil Service as Chairman and theCommissioner of the Budget and the Auditor General asMembers. It provided for a schedule consisting of 10 gradeswith 3 salary' rates per grade, except Grade 10 which had only2 salary steps. The classified positions were grouped into 7services: administrative, professional and scientific, educational,navigation, Vigilance, sub-professional, and craft and labor.

The law covers all officers and employees embraced in theclassified and unclassified service except the following:

• Elective officers and officers whose compensation werefixed in the Constitution;

• Officers chosen by the National Assembly in accordancewith the Constitution;

• Employees stationed outside the territorial limits of thePhilippines;

• The President, deans of colleges, directors of schools, theregistrar, the business director, and members of theteaching staff of the University of the Philippines;

• Commissioned and enlisted members in the active serviceof the Philippine Army;

• Persons in the military, naval or civil service of the UnitedStates who were appointed or detailed to perform duties inthe Government of the Commonwealth; and

• Employees declared by the President of the Philippines asprimarily confidential or highly technical.

The law also provided for special groups of positions, theExecutive Group and the Judicial Group which were not subjectto classification by the Salary Board. It likewise provided forcompensation differentials for employees (a) stationed indisease-infected areas; (b) stationed in places subject tocriminal elements; (c) assigned for not less than 3 consecutivemonths to work earlier than 6:00 A.M. or later than 8:00 P.M.;and (d) requlred to wear uniforms not furnished by thegovernment.

During the Second World War, the Salary Board was renamedSalary Committee with the Auditor General as Chairman. Thenumber of national government employees as well as theirsalaries were reduced due to drastic changes in the organizationof the Philippine Government, as well as in the economy. To


cushion the effects of inflation, bonuses were granted togovernment officials and employees based on the number ofimmediate dependents.

1.3 The Philippine Republic

After the Liberation in 1945, the Salary Board was reactivated. Theclassification of positions made by the Salary Board in 1938 was revisedbut it was not updated. The rates of pay in CA No. 402 were nominallyapplied.

In 1947, when the government was reorganized, the powers andfunctions of the said Board were transferred from the Commissioner ofthe Civil Service to the Commissioner of the Budget. Pursuant toExecutive Order (EO) No. 94, s. 1947, the grades of positions and ratesof salaries provided under CA No. 402 were converted into 37 gradeswith single rates.

To relieve civil servants from the economic difficulties brought about bythe Second World War, Congress enacted 3 minimum wage laws whichwere adopted for the entire country. However, these laws led employeesin the middle and upper pay levels whose salaries were pegged at prewar levels to clamor for higher salaries. Congress sought solution inpiece-meal pay increases for certain groups of employees oroccupational groups which gave way to pay disparities and inequities.This situation went on for several years until 1957.

1.3.1 The Position Classification and Pay Plans of 1957

On June 4, 1953, the Philippine Government commissionedLouis J. Kroeger and Associates of San Francisco, California, toconduct a position and wage survey, to submit a positionclassification plan, a pay plan, and cost estimates to carry outthe plans. The firm would also train government personnel inposition classification and in determining salaries. Thisundertaking resulted in the establishment of the PositionClassification Plan, the Pay Plan, and the Wage and PositionClassification Office (WAPCO) under Reorganization Plan Nos. lA, 2-A, and 3-A, respectively.

The WAPCO classified positions on the bases of duties andresponsibilities and qualification requirements. Positions thatwere sufficiently alike as to duties, level of responsibilities andqualification requirements in terms of education, experience,knowledge, skills and abilities were given the same descriptivetitle and the same test of fitness.

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The Plans covered all positions in the national government andits instrumentalities, including quasi-public corporations.Exempted therefrom are the following:

• Elected officials and officers whose compensation werefixed in the Constitution;

• Officers and employees of the legislative and judicialdepartments of the government;

• Secretaries and undersecretaries of departments of thegovernment;

• Members of the Armed Forces;• Officers and employees of the Foreign Service; and• Provincial and municipal local officials.

The Position Classification Plan consisted of occupational groups,classes and class specifications or standards and the rules andregulations for its administration. The Pay Plan consisted of asalary schedule with 75 salary ranges and the salary rules. Eachsalary range had 5 salary steps. Each salary step wasapproximately 5% higher than the immediately preceding step.The spread between the minimum and maximum rates of asalary range was approximately 22%.

The Pay Plan also had a built-in mechanism for periodic payprogression to provide incentives for better performance andrecognize length of service through step increases. Due tofunding constraints, however, these schemes were notimplemented.

When the Position Classification and pay Plans were adopted onJuly 1, 1957, there were 237 occupational groups and 2,259classes into which 183,000 regular positions were classified. Dueto inadequate funds, the salaries of civil servants covered by thePlans were adjusted in 3 installments. The first adjustment was30% of the difference between the minimum rate of the salaryrange of the position and the actual salary of the incumbent.The second and third adjustments which were both 35% of thesaid difference were granted on July 1, 1960 and July 1, 1961,respectively.

From 1959 to the middle part of 1976, the concepts andprinciples of position classification and salary standardizationwere not fully appreciated by government functionaries becauseof the inability of the government to grant adequate salaryincreases. Consequently, exemptions from the coverage of theWAPCO Plans followed one after the other.

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1.3.2 The Budgetary Reform Decree on Compensation andPosition Classification of 1976

With the advent of the New Society, the President issued onAugust 22, 1976 Presidential Decree (PO) No. 985 known as"The Budgetary Reform Decree on Compensation and PositionClassification of 1976," in conformity with the follOWing provisionof Article XII -B, Section 6 of the 1973 Constitution:

"The Batasang Pambansa shall provide for thestandardization of compensation of governmentofficials and employees, including those ingovernment-owned and controlled corporations,taking into account the nature of the responsibilitiespertaining to, and the qualifications required for, theposition concerned."

PO No. 985 provided for the creation of the Office ofCompensation and Position Classification (OCPC) and theabolition of the WAPCO. It declared the policy of thegovernment to provide "equal pay for substantially equal workand to base differences in pay upon substantive differences induties and responsibilities and qualification requirements of thepositions. In determining rates of pay, due regard shall be givento prevailing rates in private industry for comparable work."

The salary schedule under PO No. 985 had 28 salary grades.Each salary grade consisted of 8 steps. The difference between2 successive salary grades was ten (10) "1%" increments. Thedifference between steps is five (5) "1%" increments. The salarysteps were increased from 5 to 8 to enable employees toreceive salary increases as rewards for exemplaryperformance. The last 2 or 3 salary steps were intended for thelongevity steps of employees who could not be promoted tomore difficult positions because of limitations in qualificationrequirements and/or abilities.

The reduction from 75 salary ranges to 28 salary gradesrequired the compression of the existing occupational groups toa more manageable size. It also required the consolidation of 2or more related classes into a class where duties andresponsibilities were sufficiently alike in terms of difficulty, skillsand qualification requirements.

When PO No. 985 was issued, there were 282 occupationalgroups and 4,388 classes in which 575,756 regular positionswere classified.

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The National Compensation and Position Classification Systemprovided for in PD No. 985 was applied to all positions, whetherpermanent, temporary, or emergency in nature, or on full-timeor part-time basis. Nine (9) groups of officials and officers wereexempted from the coverage of PD No. 985. These exemptionswere reduced to 2 groups under PD No. 1597 entitled, "FurtherRationalizing the System of Compensation and PositionClassification in the National Government." They are: (1) electedofficials and officers whose compensation were fixed in theConstitution and; (2) local government personnel whosecompensation were governed by PD No. 1136.

In addition to a standardized salary system, PD No. 985provided for allowances, bonuses, and other benefits that shallaccrue to officials and employees. This law expanded theconcept and coverage of compensation administration.

1.3.3 The Compensation and Position Classification Act of1989

Through the years, the increasing number of exemptions fromthe coverage of the Compensation and Position ClassificationSystem established under PD No. 985 through presidentialdecrees and other presidential issuances undermined theSystem which was not fully implemented. Special salaryincreases and additional compensation were likewise grantedto personnel holding positions belonging to certainoccupational groups and to personnel of so-called "critical"government agencies which resulted to the proliferation ofseveral salary schedules under the Compensation Plan. Theselaws also brought about salary disparities among governmentagencies which in turn gave rise to demoralization and

. dissatisfaction among government employees. Thus, the moraleamong many of the civil servants declined and the quality ofpublic service deteriorated.

Faced by the grim realities of the past, the President signed intolaw RA No. 6758 entitled, "An Act Prescribing a RevisedCompensation and Position Classification System in theGovernment and for Other Purposes" or "Compensation andPosition Classification Act of 1989," on August 21, 1989. This isalso popularly known as the Salary Standardization Law (SSL).

The law is the culmination of a painstaking study undertaken bythe Department of Budget and Management with the end inview of putting into realization the provisions of Section 5,Article IX-B of the 1987 Constitution which mandates that:

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"The Congress shall provide for the standardization ofcompensation of government officials and employees,including those in government-owned and/orcontrolled corporations with original charters, takinginto account the nature of the responsibilitiespertaining to, and the qualifications required for theirpositions."

1.3.3.1 Principles Governing the Position Classificationand Compensation System (PCCS)

The pees is governed by principles enunciated in RANo. 6758, as follows:

• All government personnel shall be paid just andequitable wages in accordance with the principle ofequal pay for substantially equal work. Differencesin pay shall be based upon substantive differencesin duties and responsibilities and upon thequalification requirements of positions;

• Basic compensation for all personnel in thegovernment and government-owned or controlledcorporations and financial institutions shallgenerally be comparable with those in theprivate sector doing comparable work, and mustbe in accordance with prevailing laws on minimumwages;

• The total compensation provided for governmentpersonnel must be maintained at a reasonablelevel in proportion to the national budget; and

• A review of government compensation rates takinginto account possible erosion in purchasing powerdue to inflation and other factors shall beconducted periodically.

1.3.3.2 Positions Covered by the PCCS

The pees applies to all positions in national and localgovernments, government-owned or controlledcorporations (GOees) and government financialinstitutions (GFls), elective or appointive, full-time orpart-time, existing or still to be created. It does notapply to those expressly exempted by law from thecoverage of the pees and those hired as part of a

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contract, paid on piecework or job order basis,including mail contractors and others similarlysituated.

1.3.3.3 Parts of the PCCS

The PCCS is composed of the Position ClassificationPlan (PCP) and the Compensation Plan (CP).

• The PCP is an orderly scheme which provides thecriteria and the standards for the classification ofpositions.

• The CP is an orderly scheme for determining ratesof compensation for positions. It is based on theprinciple of equity and requires uniform anddefinite application.

1.3.3.4 Important Features of the PCCS

• Grouped classes of positions into 4 maincategories, namely:

010 Professional Supervisory;

010 Professional Non-Supervisory;

010 Sub-Professional Supervisory; and

010 Sub-Professional Non-Supervisory.

• Revised the salary schedule from 28 to 33 salarygrades and prescribed the rules and regulations forits implementation;

• Assigned the salary grades of constitutionaiofficials and their equivalents and mandated theDBM to determine the officials who are ofequivalent rank;

• Established benchmark positions as an aid toposition classification and salary grade allocation;

• Provided for step increments based on merit orlength of service;

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• Reduced the number of classes of positions in thenational government from more than' 5,000 toabout 2,400; and

• Integrated allowances and other compensationinto the standardized salary.

1.3.3.5 Objectives of the PCCS

The pees serves as a tool for effective management,organizational analysis, budgeting and fiscal control,and as an information tool for the general public ortaxpayers.

• As a tool for effective management:

"" Standardizes salaries, allowances and benefitsof officials and employees;

"" Enables both the supervisors and employees tounderstand the job content and pay level ofpositions;

"" Provides basis for the evaluation of theperformance of officials and employees;

"" Raises morale by enabling an employee toidentify his/her position in the organization andto understand the job expected of him/her;

"" Provides basis for the development of trainingprograms; and

"" Provides the management of a governmentagency with the necessary standards on whichqualification requirements for recruitment,testing, selection and placement can be based.

• As a tool in organizational analysis:

"" Highlights problems of overlapping andduplication of functions or redundancies in agovernment agency;

"" Aids in the accurate analysis and review offunctions of a government agency.

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'" Facilitates the preparation of staffing patternsof government agencies;

'" Contributes to the effective placement of anemployee with regard to his job and abilities;and

• As a tool in budgeting and fiscal control:

'" Establishes common terminologies for budgetrequests for personal services;

'" Provides standardized compensation for similarservices among government agencies;

'" Serves as basis for accurate payroll reportingand analysis; and

'" Provides a basis for validating allotments andexpenditures.

• As an information tool:

'" Provides information to taxpayers on the kindsof positions in the government and how muchthese positions are paid.

For easy reference, a matrix on the evolution of the PCCS from the AmericanRegime to the enactment of RA No. 6758 is presented in Annex A of thisChapter.

Discussions on the American and Commonwealth Regimes were based on the book byTomas W. Flores, "Compensation and Position Classification in the PhilippineGovernment, 1900-1978," (Malacafiang, Manila: Ministry of the Budget, 1978).

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AnnexA

The Evolution of the Position Classification and Compensation System in the Philippine Government

American CommonwealthParticulars Regime Regime Philippine Republic

Legal basis Act No. 102, "An Act Commonwealth Act No. Reorganization Plan 1- Presidential Decree No. Republic Act No. 6758, theRegulating the Salaries of 402, "An Act to Provide A (The Position 985, "Budgetary Reform 'Compensation and PositionOfficers and Employees for the Oassification of Oassification Plan), and Decree on Compen- Oassification Act of 1979:in the Philippine Ovil Positions and Standardi- Reorganization Plan2-A sation and Position dated August 21, 1989Service," dated March 9, zation of Salaries in the (The Pay Plan) both Oassification of 1976:1901 Government, n dated dated May 5, 1956 dated August 22, 1976

September 13, 1938. as amended by PD No.1597, dated June 11,1978

Bases of classification Salary Duties and responsibilities Duties, responsibilities Duties, responsibilities Duties, responsibilities andof the position and qualification re- and qualification re- qualification requirements

quirements of the quirements of the of the positionposition position

Coverage Officers and employees of Officials and employees All positions in the All positions in the All positions in the govern-the Philippine Civil Service embraced in the classified national government national government, ment, including govern-

and unclassified service and its instrumentalities, including government- ment-owned and controlledincluding quasi-public owned or controlled corporations and govern-corporations corporations and ment financial institutions

government financialinstitutions

Exemption Officers and employees of l. Elective officers and l. Elected officers and l. Elected officers and Those expressly exemptedthe Department of officers whose com- officers whose com- officers whose cam- by subsequent lawsMindanao and Sulu pensation were fixed pensation were fixed pensation were fixed

in the Constitution in the Constitution in the Constitution

2. Officers chosen bv the 2. Officers and emplo- 12. Local oovernment

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Employees stationedoutside the territorial 3.limits of thePhilippines

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officials and employees, who weregoverned by PD No.1136

Philippine Republic

the

yees of thelegislative and judicial departments ofthe government

Secretaries andundersecretaries ofdepartments of thegovernment

Officers and employees of the ForeignService

4. Members ofArmed Forces

6. Provincial, municipaland local officials

National Assembly inaccordance with theConstitution

CommonwealthRegime

The President, deansof colleges, directorsof schools, theregistrar, the businessdirector and members 5.of the teaching staffof the University ofthe Philippines

Commissioned andenlisted members inthe active service ofthe Philippine Army

Persons in themilitary, naval or civilservice of the UnitedStates who wereappointed or detailedto perform duties inthe Government of theCommonwealth

Employees declaredby the President ofthe Philippines asprimarily confidentialor hiohlv technical

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AmericanRegimeParticulars

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American CommonwealthParticulars Regime Regime Philippine Republic

Number of 7 services 19 occupational servicesservices!occupationalservices

Number of 2 groups (first and second) 237 occupational groups 271 occupational groups 206 occupational groupsoccuoattonal orouos

Number of classes 21 classesof positions 2,259 classes of Number of classes were Number of classes wereof positions positions reduced from 4,300 to reduced from more than

2,700 5,000 to 2,541

Salary structure First Group (10 classes - 1 10 grades with 3 rates of 75 salary ranges with 5 28 salary grades with 8 33 salary grades with 8to 10) compensation salary steps each salary steps each salary steps each

The highest, Grade 1, hadSecond Group (11 c1asses- 3 rates.A to K) The lowest, Grade 10,

had 2 rates.

Agency responsible Civil service Board Salary Board was Wage and Position Office of Compensation Compensation and Positioncomposed of the renamed Salary Commi- Classification Office and Position Classifi- Classification BureauCommissioner of the Civil ttee during WW II. (WAPCO), Budget cation (OCPC), Budget (CPCB), now Organization,Service Commission as Chairmanship was trans- Commission Commission Position Classification andChairman and Commi- ferred to the Auditor- Compensation Bureau,ssioner of the Budget and General in 1945 and to Department of Budget andthe Auditor-General as the Commissioner of the ManagementMembers Budaet in 1947,

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Chapter 2

The Position Classification Plan

2.1 The Position Classification Plan

The Position Classification Plan (PCP) consists of occupational services,occupational groups, classes in series, specifications or writtendescriptions of the classes and the rules and procedures for theadministration and maintenance of the Plan.

2.2 Concepts of Position Classification

2.2.1 The position is the basic unit of an organization. It is a set ofcurrent duties and responsibilities assigned by competentauthority to be performed by an individual either on a full-time ora part-time basis. It may be filled or vacant.

2.2.2 Positions are grouped by class on the basis of similarity of kindand level of difficulty and responsibility of work.

2.2.3 As a general rule, only the duties and responsibilities of theposition are considered in position classification and not theincumbent's qualifications, except teaching positions where theincumbent's education, relevant training and experience and otherfactors are considered.

2.3 Grouping of Classes Under the PCP

A class consists of all those positions having sufficiently similar duties,responsibilities and qualification requirements such that they can begiven the same position title, salary grade, and for all administrative andcompensation purposes, be treated alike. Example: Public Health Nurse1.

The classes in the PCP are grouped into the following:

2.3.1 Series

A series consists of one or more classes of positions which aresimilar as to specialized line of work, arranged by level ofdifficulty and responsibility. Example: Public Health Nurse. Thisseries is composed of Public Health Nurse I, Public Health NurseII and Public Health Nurse III.

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2.3.2 Occupational Group

An occupational group consists of one or more series of classes ofpositions in the same or related occupation or occupational area.Example: Under the Medicine and Health Service is the NursingGroup.

2.3.3 Occupational Service

An occupational service consists of occupational groups of broadlyrelated or similar professions or occupations. Example: TheMedicine and Health Service is comprised of the followingoccupational groups, among others: Dentistry Group, DieteticsGroup, Health and Sanitation Group, Medical Group, MedicalTechnology Group, Nursing Group, etc.

2.4 Categorization of Classes

Classes are categorized under RA No. 6758 as follows:

2.4.1 Professional Supervisory (PS) Category - This category includesresponsible positions of a managerial character involving theexercise of management functions such as planning, organizing,directing, coordinating, controlling and overseeing withindelegated authority the activities of an organization, a unit thereofor of a group, requiring some degree of professional, technical orscientific knowledge and experience, and application ofmanagerial or supervisory skills.

Positions in this category require intensive and thoroughknowledge of a specialized field acquired through completion of

. bachelor degrees or higher degree courses.

The positions in this category are assigned Salary Grade 9 toSalary Grade 33. Examples: Engineer IV, Director II, ElementarySchool Principal I

2.4.2 Professional Non-Supervisory (PN) Category - This categoryincludes positions performing tasks which usually require theexercise of a particular profession or application of knowledgeacquired through formal training in a particular field or theexercise of a natural, creative and artistic ability or talent inliterature, drama, music and other branches of arts andletters. Also included are positions involved in research andapplication of professional knowledge and methods to avariety of technological, economic, social, industrial, andgovernmental functions; in the performance of technical tasks

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Position Classification Plan

auxiliary to scientific research and development; and in theperformance of religious, educational, legal, artistic or literaryfunctions.

These positions require thorough knowledge in the field of artsand sciences or learning acquired through completion of at leastfour years of college studies.

The positions in this category are assigned Salary Grade 8 toSalary Grade 30. Examples: Tourist Receptionist I, Chemist I,College Professor, University Professor

2.4.3 Sub-Professional Supervisory (SS) Category - This categoryincludes positions performing supervisory functions over a groupof employees engaged in work along technical, manual or clericallines which are short of professional work, requiring trainingand moderate experience or lower training but considerableexperience and knowledge of a limited subject matter or skills inarts, crafts or trades.

These positions require knowledge acquired from secondary orvocational education or completion of up to two years of collegeeducation.

The positions in this category are assigned Salary Grade 4 toSalary Grade 18. Examples: Bookbinder IV, Electrician Foreman,Chief Bookbinder

2.4.4 Sub-Professional Non-Supervisory (SN) Category - This categoryincludes positions involved in routine or repetitive work in supportof office or fiscal operations or those engaged in crafts, trades ormanual work.

These positions usually require skills acquired through training andexperience or completion of elementary education, secondary orvocational education or completion of up to two years ofcollege education.

The positions in this category are assigned Salary Grade 1 toSalary Grade 10. Examples: Draftsman I, Proofreader II, DentalAide

2.5 Index of Occupational Services, Position Titles andSalary Grades

A listing of the different occupational services, occupational groups andclasses in series existing in the PCP is shown in the Index

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of Occupational Services, Position Titles, and Salary Grades (lOS). Italso shows the salary grade assignment of each class.

The IOS consists of 3 volumes: Volume I is the Index of Classes byOccupational Services and Occupational Groups. Volume II is theIndex of

Classes by Alphabetical Order. Volume III is the Index of Classes bySalary Grades.

2.6 Class Specification

A class specification is a written description of a class of positionsconsisting of: class category, class identification, class title, classdefinition, characteristics and qualifications qulde,

2.6.1 Class Category

A class category may be either of the following: ProfessionalSupervisory (PS), Professional Non-Supervisory (PN), SubProfessional Supervisory (SS) or Sub-Professional Non-Supervisory(SN).

2.6.2 Class Identification (10)

A class ID identifies the class of positions. It shows thealphanumeric acronym and level of a class in a series. The classIDs are indicated in the lOS. Example: The class ID for Nurse I isNURSl.

2.6.3 ClassTitle

A class title is a brief, concise and descriptive name of a class. Asa general rule, a class title has three parts, namely:

Root word - This shows the general nature of the work such asSorter, Mechanic, Inspector.

Specialty - This shows the field of specialization or field of activitysuch as Mail Sorter, Aircraft Mechanic, Meat Inspector.

Level - This can either be an adjective, a noun or a number whichexpresses the relative rank or level of the class suchas Senior Mail Sorter, Aircraft Mechanic Foreman, MeatInspector II.

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• Levels of classes

As a general rule, the following are the standard levels ofclasses of positions:

"" Entrance Level or Level I - Classes under this level areunder immediate supervision, and with detailed rules andprocedures, perform the simplest, routine sub-professionalor professional work. Examples: Carpenter I, Engineer I,Budget and Management Analyst

"" Journeyman or Level II - Classes under this level are undergeneral supervision and with limited latitude for theexercise of independent judgment, perform somewhatdifficult but responsible sub-professional or professionalwork requiring training, some experience and a broadknowledge of a special subject matter. Examples:Radiologic Technologist II, Biologist II

"" Senior Level/Participating Supervisor/Foreman or Level III- Classes under this level are under general supervisionand with some latitude for the exercise of independentjudgment, serve as heads of section or other unit of anorganization of similar import, or in the case of those in thecrafts and trades, a crew engaged in moderately difficultbut routine work; or perform difficult and responsible subprofessional or professional work requiring training andmoderate experience or lower training but withconsiderable experience and a very broad knowledge of aspecial subject matter. Examples: Plumber Foreman,Senior Tax Specialist, Engineer III

"" Supervising Level/General Foreman or Level IV - Classesunder this level are under direction and with substantiallatitude for the exercise of independent judgment, serve asassistant heads of division or other unit of anorganization of similar import or in the case of thosein the crafts and trades, a large crew or several crewsengaged in varied work ranging from routine todifficult and specialized work; or perform very difficult,important and responsible sub-professional or professionalwork requiring training and moderate experience or a lowertraining but with considerable experience and thoroughknowledge of a special subject matter. Examples:Electrician General Foreman, Supervising EconomicDevelopment Specialist, Attorney IV

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'" Chief Level or Level V - Classes under this level are underdirection and with considerable latitude for the exerciseof independent judgment, serve as heads of division orother unit of an organization of similar import engaged invaried work ranging from routine to very difficult work; orperform exceptionally difficult and responsible subprofessional or professional work requiring training,considerable experience and demonstrated capacity forsound independent judgment and intimate knowledge ofspecial subject matter. Examples: Chief Photographer,Chief Air Traffic Controller, Forester V, Attorney V

• Use of Roman Numerals for levels of Positions

For ranking purposes, Roman numerals like I, II, III are usedto identify classes in a series when:

'" Duties and responsibilities of the classes are similar, butthe size of the organization, educationalrequirement/preparation, or some similar factors indicatehigher responsibilities and, therefore, a higher level class.Examples:

• Elementary School Principal I - supervises 10 to 29teachers

• Elementary School Principal II - supervises 30 to 59teachers

• Teacher I - Bachelor's degree for teachers (BSE,BSEE)

• Teacher II - Bachelor's degree for teachers plus 20MA units

'" Duties and responsibilities of the class are in the same fieldof specialization with a relatively gradual increase inthe complexity of the duties and responsibilities or whereeach class in the series consists of more than one job type.Examples: Engineer I, Engineer II, Engineer III.

2.6.4 Class Definition

A class definition is a general description of the overall dutiesand responsibilities of a class. It may indicate the alternativeuse of the class or job type. This usually begins with a statementas to the type of supervision received as follows:

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• Under immediate supervision - This is the closest degree ofsupervision. The position is subject to continuous and directcontrol. The position cannot decide on its own, hence, has torefer to specific and detailed guides and instructions. Its workis checked while in process and upon completion. This is thetype of supervision received by entrance level positions.

• Under general supervision - The supervision received is notclose, continuous or direct. Supervisory control is in termsof objectives and goals to be reached. The position is able towork with a reasonable degree of independence, referring onlyunusual or complicated matters to immediate supervisor foradvice and direction.

• Under direction - The supervision received comes in the formof guidance from policies and objectives of theorganization. Planning and organizing the details of the workand deciding the methods, systems and proceduresare completely entrusted to the employee. This is the type ofsupervision received by assistant division chiefs and higherlevel positions.

• Under administrative or executive direction - This is the type ofsupervision received where the work of the position is subjectonly to administrative/executive determination of policy. Thisis the type of supervision received by heads of office andequivalents. .

The last portion of the class definition is a general statement,"and does related work," to emphasize that the employee may begiven other assignments related or incidental to his work.

2.6.5 Characteristics

• The characteristics portion enumerates specific tasksperformed by the class. The typical tasks selected arethose most significant inallocating positions to the class. The tasks are in the presenttense verbs, third person, singular form with the tasksseparated by semi-colons.

• When an alternate job type or types are necessary, separateparagraphs are used to describe separately the job typeswithin a class because they may differ in objectives and inthe manner of accomplishing the objectives. Each newparagraph begins with the conjunction, "Or." The sequence

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of the paragraphs follows the order in the general descriptionof the job types in the "Definition" portion.

2.6.6 Qualifications Guide

The qualifications guide states the minimum education, trainingand experience needed to perform the duties and responsibilitiesof a class of positions.

Annex A of this Chapter is a sample class specification.

2.7 Position Classification Factors

A position classification factor is a characteristic/guide which measuresor compares the requirements or demands of a position. It influences thegrouping of positions into classes or the allocation of a position to aclass.

2.7.1 The Basic Classification Factors

The 3 basic classification factors are:

• Skills and Knowledge - These measure the extent of formaleducation and work experience normally required for thesatisfactory performance of the duties and responsibilities ofa position.

• Nature of Work - This measures the characteristicsinherent in the position. It considers the supervisory contentof the work, analysis and problem solving required,degree of mental/physical effort and exposure to hazards,and the degree and extent of internal and external relations.

• Responsibility - This measures the accountability of aposition for supervision exercised, decisions and actions,degree of control of assets, and accuracy and confidentialityof records and reports.

2.7.2 The Sub-Classification Factors

The 3 basic classification factors are dlvlded into the followingsub-factors:

2.7.2.1 Skills and Knowledge

• Education - This considers the minimum formaleducation, applicable training or equivalent

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knowledge required for the satisfactory performanceof the duties and responsibilities of a position.

• Experience ~ This considers the length of timenecessary for an average new employee with therequired minimum education to acquire the neededskills for satisfactory performance of the job.

2.7.2.2 Nature of Work

• Supervision Received - This considers the type,frequency and latitude by which assignments andinstructions are received, how work methodsare followed, and how work is checked for qualityand quantity.

• Analysis and Problem Solving Required - Thisconsiders the degree of difficulty and complexity ofthe assigned tasks and the extent to which the workinvolved requires analytical ability, exercise ofjudgment and creativity necessary to achieve thedesired results.

• Mental/Physical Effort - This considers the amountand continuity of physical exertion or mentalconcentration required in the completion of work,taking into consideration the pressure and extent ofphysical and/or mental effort involved.

• Internal and External Relationships - This refers tothe nature of communication and association withothers, both within and outside of the office, asrequired for the satisfactory performance of theduties and responsibilities of a position on a regularbasis. Contacts include personal discussions,telephone conversations and writtencommunications. This sub-factor is evaluatedaccording to the nature and limits of contact.

• Hardship, Hazard and Personal Risk Involved - Thisconsiders the degree and continuity ofexposure to health or accident hazards in theperformance of the duties and responsibilities of aposition.

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2.7.2.3 Responsibility

• For Work of Others or Supervision Exercised - Thissub-factor considers the responsibility of a positionfor the various facets of supervision such as workplanning and organization, work assignmentsand review, and the exercise of supervisoryfunctions.

• For Decision-Making - This measures the mentalprocesses involved in weighing facts and conditionsto determine appropriate courses of action. Itreflects the extent of analysis and planningexercised, the creativity required in developingpolicies, rules, methods or procedures. It alsoconsiders the impact of such decisions.

• For Accuracy of Records and Reports - Thisconsiders the accuracy required and importance ofinformation, records and reports prepared orreviewed by a position.

• For Funds, Property and Equipment - This considersthe accountability of a position for assets such ascash, negotiable instruments, equipment, supplies,materials and tools. Negligence could result inmonetary loss or property damage.

2.7.3 Other Classification Factors

• rank of the position in the organizational hierarchy;

• functions of the unit where the position is located;

• kind and number of existing positions in the unit performingsimilar or related tasks;

• consistency of the classification and salary grade assignmentof the positions in the unit, in the agency, and in othergovernment agencies;

• other quantitative factors, such as number of elementary/secondary school teachers supervised, etc.

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2.8 The Position Classification Process

The position classification process is the series of actions leading to thegrouping of positions into classes or to the determination of theappropriate class for a given position using the position classificationfactors as guides.

2.8.1 Steps in the Classification Process

There are 3 steps in the classification process. They are factfinding, analysis and evaluation.

2.8.1.1 Fact-Finding

2.8.1.1.1 Fact-finding involves the gathering of factsabout the duties and responsibilities of aposition. In fact-finding, the 2 sources offacts are as follows:

• Primary Sources - These include theaccomplished Position Description Form,incumbent of the position, the supervisorof the position, organizational charts andwork samples; and

• Secondary Sources - These include laws,rules and regulations, standard operatingprocedures, reports and publications,forms and materials used.

2.8.1.1.2 Fact-finding may employ the following 4techniques/tools:

• Use of the Position Description Form(PDF)

"" The PDF is the basic document in theposition classification process.

'" The PDF and the instructions foraccomplishing the same are attachedas Annexes Band C, respectively, ofthis Chapter.

• Conduct of Work Audit

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• the persons interviewed: names,position titles, and item numbers;

• the organizational location of theposition;


responsibilitiesto different

• The duties andstated pertainoccupations.

• an accurate and adequatedescription of the work performedand the amount of time spent onvarious duties and responsibilities;and

• an analysis of the position statingthe degrees of the pertinentallocation factors that wereconsidered.

• The tasks of the position involvedifferent levels of difficulty; and

• the title and item number of theposition audited;

• Information in the PDF isincomplete, unclear, or containsterminology, concepts orprocedures not well understood;

... The information gathered in the workaudit are documented in the form of awritten audit report containing thefollowing:

... The conduct of work audit involves theverification of the work through aninterview of the incumbent of theposition, the immediate supervisor orthe next higher supervisor and whennecessary, of peers or subordinates.It is intended to validate, clarify, orsupplement information gathered fromthe PDF. Interviews are resorted tounder the followlnq circumstances:



• Observation of Work Operations

"" This involves gathering facts throughmindful watching of a work in processand the recording/summarizing ofactivities/ actions observed. Datagathered may be documented in theform of a flow chart.

"" Flowcharting is an analyticaltechnique to document the process ofwork or activities in a clear, conciseand logical manner, showing themovements of documents and actiontaken through various steps from theirorigin to their final destination.

• Use of Organizational Charts

"" An organizational chart is agraphic presentation of the units,functions or positions of an agency.The three basic types of organizationalcharts are:

• Structural Organization Chart This chart is a graphicrepresentation of the organizationalunits in boxes. This chart providesa basis for determiningorganizational relationships.

• Functional Chart - This chartcontains the statements offunctions of all organizational unitsindicated in boxes. This chartprovides information about thegeneral objective andresponsibilities of each unit. Theduties and responsibilities of aposition are better understood byanalyzing the functions of a unit.

• Position Chart - This chart showsthe authorized positions in theorganizational unit, listed by itemnumber, position title and salary

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grade. This chart ascertains theofficial location of the position andits relation to other positions in theorganizational unit.

2.8.1.2 Analysis

Analysis is the critical examination of the duties andresponsibilities and other facts about the position. Theprocess involves selecting, organizing and commentingupon the duties and responsibilities of the position interms of the position classification factors to determinethe distinguishing characteristics of the position.

The steps in the analysis of· the duties andresponsibilities and other facts about the positionfollow:

Step 1: Organize the facts obtained about the positionby listing down its major duties andresponsibilities. The major duties andresponsibilities represent the primary reasonfor the position's creation. Typically, theyoccupy most of the employee's time. Theymay be performed in a continuous,uninterrupted manner or performed atrecurring intervals.

Make a separate list for incidental duties andresponsibilities which generally occupy asmall portion of the employee's time and arenot the primary purpose for which the positionwas created.

Step 2: Determine the occupational group and theseries on the basis of the kind of work involvedin the position.

Step 3: Tentatively determine the classes in the seriesto which the position may be classified usingthe position classification factors as guides.

Step 4: Ascertain whether or not there are writtenstandards or class specifications for the classesin the series.

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Step 5: Determine the distinguishing characteristics ofthe classes in the series.

Step 6: If no class specifications are available, list thefacts pertinent to the position being classifiedagainst those of positions already classified inthe series.

Hereunder is an illustrative example of analyzing aposition for classification:

Step 1: Facts as organized

• Location of Position - Accounting Division

• Immediate Supervisor - Accountant I

• Positions Supervised - 2 Accounting Clerk I and1 Accounting Clerk II

• Actual Duties -

50% Supervises and participates in the workof accounting clerks engaged inposting and balancing accounts in thegeneral ledger and maintaining booksof accounts;

40% Prepares trial balance and monthlyincome and expenditures; and

10% Prepares correspondences onbookkeeping matters as may bedirected by supervisors.

Step 2: Series of classes as determined by the kind ofwork:

• Accounting Clerk and Bookkeeper - recordingand posting financial transactions andmaintaining books of accounts

Note: The classes under the Accounting Group mentioned on this page and on the succeeding2 pages have been allocated to the corresponding levels of Administrative Officer,Administrative Aide and Administrative Assistant classes pursuant to Budget Circular No. 2004-3dated March 6, 2004.

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Step 3: The position appears to be allocable to theclass, Bookkeeper.

Step 4: Class specifications or written standards areavailable for the Accounting Clerk andBookkeeper series.

Step 5: Distinguishing characteristics of the followingclasses have been determined as follows:

• Accounting Clerk I - posts data and updatesrecords for payment and deductions forsalaries, wages and other accounts

• Accounting Clerk II - maintains subsidiaryledgers; reconciles subsidiary ledger balanceswith controlling account balances in the generalledger

• Accounting Clerk III - supervises the activitiesof accounting clerks engaged in posting entriesfrom the journals to the subsidiary and generalledgers

• Bookkeeper supervises the work ofaccounting clerks; prepares trial balances;maintains the journal or books of original entry;prepares adjusting entries and bankreconciliation

Step 6: This is not necessary in this particular casesince class specifications or written standardsare available.

2.8.1.3 Evaluation

After the duties and responsibilities and other factsabout the position have been reviewed and analyzedthe next step is to evaluate it, i.e., to determine itsrelative worth.

2.8.1.3.1 The Pre-Determined Class Method

• The Philippine government's PositionClassification Plan adopts the predetermined class method in theevaluation process. Under this method,

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classes with their appropriate salarygrades and written standards areestablished.

• Using the position classification factorsas guides, the facts pertaining to theposition are compared with those in theclass specification or standards forthe class. If the duties andresponsibilities of the position meet theallocation standards for the class, adecision is made to allocate the positionto the class.

• Using the same position in Sub-item2.8.1.2 as an example, the followinglast 2 steps constitute the evaluationprocess:

Step 7: All facts about the position are compared withthe facts found in the class specifications forthe series.

Step 8: All facts about the position are found in theclass, Bookkeeper. Decide to allocate theposition to the class, Bookkeeper, SG-8.

2.8.1.3.2 Evaluation of a Position in the Absenceof a Class Specification

In the absence of a class specification, aclassifier must resort to the following:

• Determine the series to which theposition may be allocated.

• Determine whether or not there havebeen positions classified under theseries.

• If there are positions classified under theseries, compare the facts pertaining tothe position being classified againstthose of the positions already classifiedto the series. If the duties andresponsibilities of the position arecomparable with those of the classified

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position, the position is allocated to theparticular class in the series.

• If the duties and responsibilities of theposition do not fall within the allocationstandards for the class requested or anyother existing class, considerrecommending the creation of a newclass.

2.8.1.3.3 Evaluation of Mixed-Grade Positions

• "Mixed-Grade" positions refer topositions in which the work falls partly inone class and partly in another. Thereis 'no single rigid rule fordetermining the classification of this kindof position. Only general guides can becited because these positions occurunder so many circumstances.

... As a general rule, the preponderantduties and responsibilities or those whichtake up the majority of the employee'sworking time must govern.

... When the position involves a set ofduties and responsibilities or a taskwhich enhances the relative value of theposition and is paramount in influence orweight even though it does not consumea majority of the employee's time, theposition may be classified on that basis.

In this case, the following conditionsshould be observed:

• The duties and responsibilitiesserving as the bases for the decisionare regular or recurring and are notemergency, infrequent, incidental ortemporary in nature.

• The duties and responsibilitiesserving as basis for the decision areso different from the other dutiesand responsibilities as to require

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materially higher qualifications, whichare, or will be reflected in thequalifications standards used inrecruiting, testing and selection.

2.9 Administration and Maintenance of the PCP

The PCP was designed as guide for the proper classification of positionsin the Philippine government based on major duties and responsibilitiesof the position in pursuance of agency functions.

To implement and manage the PCP, the Department of Budget andManagement (DBM) formulates and issues policies, standards, rules andprocedures. Changes in organization, duties and responsibilities,however, may result from reorganization, new work techniques orprocedures, abolition of functions, changes in administrative policies,or a variety of other causes.

Effect of such changes on the contents of the PCP must be determinedso that the latter could be modified/updated. The administration andmaintenance of the PCP, therefore, is a continuous process which restson those concerned in the DBM and in government agencies.

2.9.1 Rules and Procedures in the Administration of the PCP

2.9.1.1 Original Classification

Original classification action is applied to positionsclassified for the first time such as new positions.

• The agency submits a request for creation ofpositions, together with the following:

'" justifications for their creation;

'" duly accomplished PDFs;

'" organizational charts;

'" funding source; and

'" such other documents as may be necessary.

• The DBM analyst evaluates the necessity for thecreation of positions and classifies the positions. Foritemized positions, a corresponding Notice ofOrganization, Staffing and Classification Action

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..Manual on Position Classification and Compensation

(NOSCA) is issued to the agency. For nonitemized positions such as casual or contractualpositions, DBM issues a letter authorizing theircreation and their corresponding classification.

• The details in the NOSCA serve as inputs to thePersonal Services Itemization and Plantilla ofPersonnel (PSIPOP) for itemized positions issued bythe DBM to agencies each year. The original copy ofthe agency accomplished PSIPOP is submitted to theDBM. For non-itemized positions, the agencyprepares the corresponding Plantilla of Personnel.

2.9.1.2 Reclassification

Reclassification is a form of staffing modification and/orposition classification action which may be applied onlywhen there has been a substantial change in theregular duties and responsibilities of the incumbent ofthe position and which may result in a change in any orall of the position attributes: position title, level andsalary grade.

Such reclassification, however, should not result in adistortion in the staffing pattern nor in an unauthorizedchange in organizational structure or leveling, not onlywithin the unit where said position is deployed, but alsoamong equivalent or parallel structures in the agency.

Reclassification generally involves a change in theposition title and may be accompanied by an upward ordownward change in salary grade. However, if thesalary grade of the position is maintained, the staffingmodification and/or position classification action isdeemed as retitling, provided that such is within thesame occupational group.

2.9.1.2.1 Reclassification may also be applied when:

2.9.1.2.1.1 There are changes in the level/category of the governmententity which will bear on thelevel of key positions, e.g.,Prestdent and Vice-Presidentpositions in state universitiesand colleges (SUCs) andGeneral Manager, Assistant

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General Manager, and otherManagerial positions in LocalWater Districts;

2.9.1.2.1.2 There are changes inquantitative factors used indetermining the appropriateposition and level in accordancewith existing positionclassification standards, e.g.,coverage of agricultural facilityfor certain positions under theDepartment of Agriculture;

2.9.1.2.1.3 There are changes in theposition titles and salary gradesin the Index of OccupationalServices, Position Titles andSalary Grades approved by theDBM; and

2.9.1.2.1.4 The reclassification of a positionis provided by law orPresidential authority.

2.9.1.2.2 The following shall not be used as bases forthe reclassification of positions:

2.9.1.2.2.1 Non-performance of the reqularduties and responsibilities of aposition by reason of theincumbent's inability orincompetence;

2.9.1.2.2.2 New duties/assignments whichare temporary in nature;

2.9.1.2.2.3 Qualifications of the incumbentexcept those enumerated initems 2.9.1.2.3.1 to 2.9.1.2.3.3

2.9.1.2.3 The followlnq are the instances whenreclassification is based on the qualificationsof the incumbent:

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2.9.1.2.3.1 Implementation of theEquivalents Record Forms(ERFs) of teachers pursuant toSection 14 of PresidentialDecree No. 985, asimplemented by DBM CircularLetter No. 84040 dated May30, 1984 and Budget CircularNo. 2004-1 dated January 23,2004;

2.9.1.2.3.2 Implementation of the MasterTeachers career path providedunder Executive Order No. 500dated March 21, 1978, asimplemented by NationalBudget Circular (NBC) No. 303dated April 10, 1979 andNational Compensation CircularNo. 24 dated May 20, 1983; and

2.9.1.2.3.3 Implementation of NBC No. 461dated June 1, 1998 for facultymembers of SUCs, highereducation institutions, andTESDA technical educationinstitutions, and of NBC No. 308dated May 28, 1979 in the caseof faculty members of theUniversity of the PhilippinesSystem and the Mindanao StateUniversity System.

2.9.1.2.4A position may be reclassified if theincumbent fully meets the CSC's qualificationstandards requirement for the position asreclassified, pursuant to CSC law, rules andregulations.

2.9.1.2.5 Reclassification shall not apply to vacantregular positions which necessitate changesin their position titles for being under any ofthe instances cited in items 2.9.1.2.1.1 to2.9.1.2.1.4. Instead, they shall be converted,i.e., they shall be abolished and theappropriate positions shall be created.

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2.9.1.2.6 Procedural Guidelines

2.9.1.2.6.1 Government agencies shallsubmit to the DBM Budget andManagement Bureau orRegional Office concerned theirrequests for reclassification ofpositions as endorsed by agencyheads, together with thefollowlnq:

• Duly accomplished PositionDescription Forms (PDFs);

• Organization, functional andposition charts;

• Justification for thereclassification of thepositions;

• A certification that theincumbent fully meets thequalification standardsrequirement for the positionas reclassified, pursuant toesc rules and regulations.

• If no amount is appropriatedspecifically for thereclassification of positions,a proposal to implement the"scrap and build" policy, i.e.,funded vacant positions areto be offered for abolitionwhich shall be used asfunding source for the saidpurpose; and

• Justification for the abolitionof the funded vacantpositions by considering theeffects on the operation ofthe affected units.

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2.9.1.2.6.2 The analyst in the DBM Officeconcerned shall evaluate therequests. Should there be aneed to validate, clarify orsupplement informationgathered from the PDFs, theagencies shall assist the DBManalyst in his/her conduct ofposition/work audit.

2.9.1.2.6.3 An agency shall be informed ofthe approval of thereclassification of positionsthrough a Notice ofOrganization, Staffing andCompensation Action (NOSCA)or through a DBM letter, as thecase may be; otherwise, theagency shall be informed of thedenial action through a DBMletter.

2.9.1.2.6.4 A request for reconsiderationmay be made within thirty (30)calendar days after receipt ofthe NOSCA/DBM action.

2.9.1.2.6.5 Agencies which have beengranted budget flexibilities bythe DBM may reclassify filledpositions provided that thecondition in item 2.9.1.2.4 issatisfied; that such are inaccordance with the positionclassification standards and thatsuch are within their budqetmanagement authorities. Anyadditional funding requirementshall be sourced out of theabolition of funded vacantpositions. Upon receipt of thebudgetary actions made by theagency, the DBM analystconcerned shall evaluate thesame. If found in order, thecorresponding NOSCA shall be

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prepared to formalize thechange in the GMIS database,subject to approval of the DBMauthorities concerned. TheNOSCA shall be issued to theagency. However, if uponreceipt of the budgetary actions,the reclassification actions madeby agencies are not in order,the DBM reserves the right tomake alterations therein.

2.9.1.2.6.6 In the implementation ofreclassification action, thefollowing salary rules shallapply:

2.9.1.2.6.6.1 An employeewhose position isreclassifiedwithout changein salary gradeshall continue tobe paid hispresent salary.

2.9.1.2.6.6.2 If reclassified toa position with ahigher salarygrade, thefollowing salaryrules onpromotion shallapply:

2.9.1.2.6.6.2.1If the basicsalary of theemployee inhis/her formerposition is belowthe hiring rate ofthe reclassifiedposition, theemployee shallbe allowed the

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15t step or thehiring rate;

2.9.1.2.6.6.2.2If the presentsalary falls inbetween steps,the employeeshall be allowedthe higher step;

2.9.1.2.6.6.2.3If the presentsalary is inexcess of themaximum or 8th

step, theemployee shallbe allowed tocontinue toreceive his/herpresent salarywith the excessover the 8th steptreated as"transitionallowance" whichshall bededucted fromany future salaryadjustment ofthe employee.

2.9.1.2.6.6.2.4If to a lowersalary grade, theemployee shallbe allowed tocontinue toreceive his/herpresent salary.

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2.9.1.3 Reconsideration

An agency may request reconsideration of theclassification/reclassification of a position if itbelieves that the classification/reclassification actionmade was erroneous on the grounds that pertinentfacts were not considered in the evaluation, and thatsuch omission caused the classification error.

• A request for reconsideration may be made within30 calendar days after receipt of the NOSCA/DBMaction. The agency submits the request forreconsideration together with the following:

'" identification of the position which classificationis requested for reconsideration;

'" proposed classification of the position; and

'" explanation why the existing classification waserroneous, or a declaration of thefacts which, if considered, would have resultedin a different classification.

• The DBM evaluates the request in accordance withexisting position classification standards.

• The DBM issues a revised NOSCA or a letter if arequest concerns casual/contractual positions. For adenied request, the agency is informed through aDBM letter.

2.9.1.4 Upgrading

Upgrading of a class involves upward change in thesalary grade allocation of the class and consequently allpositions allocated to the class, without change in classtitle, if the duties and responsibilities and other factsabout the class so warrant.

2.9.1.5 Retitling

Retitling of a class involves a change to a moreappropriate title of a class and consequently allpositions allocated to the class, without change in salarygrade.

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2.9.2 Effectivity of Implementation of Classification Actions

2.9.2.1 All classification actions take effect on the dateindicated in the NOSCA or DBM letter. For positionsin schools and educational institutions, theeffectivity is not earlier than June 1 of the currentyear. For non-itemized positions, the effectivity date isindicated in the DBM letter.

2.9.2.2 A reclassification action takes effect on the dateindicated in the NOSCA but not earlier than the datewhen funds for the purpose are authorized in theGeneral Appropriations Act. For positions under theDepartment of Education and other schools, theeffectivity is not earlier than June 1 of the current year.

2.9.2.3 The implementation of a reconsideration action takeseffect on the effectivity date of the originalclassification/ reclassification of a position.

2.9.2.4 The retitling/upgrading of a position takes effect on thedate indicated in the NOSCA.

2.9.3 Maintaining/Updating the PCP

The DBM maintains/updates the PCP as follows:

2.9.3.1 Creation of New Occupational Services,Occupational Groups, Classes in Series

New occupational services, occupational groups,classes in series may be created when new duties andresponsibilities are found to exist or are not comparableto those existing in the PCP such that the positionscannot be allocated to existing classes.

2.9.3.2 Merging, Splitting, Abolition of OccupationalServices/Occupational Groups/Classes in Series

EXisting occupational services, occupational groups,classes in series may be merged, split, or abolishedwhen existing conditions of work assignments on whichthey were based are modified. These may includesplitting of functions, addition of new functions,abolition of functions, changes in work methods due totechnological development, organizationaldevelopment, changes in work entrance

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IIIIIIIIII•IIIIII.IIII


requirements, etc., which may cause the addition to orchanges in the duties and responsibilities of a position,

2,9.3.3 Procedure

• The BMB/DBM Regional Office concerned conductsinitial evaluation of the need for creation/merging/splitting/abolition of occupational services/occupational groups/classes in series, It submits itsrecommendations relative thereto, thecorresponding draft class specifications and otherpertinent documents to OPCCB,

• Using the position classification factors as quides,the OPCCB breaks down the facts pertaining to thepositions and compares them with those of existingclasses to ascertain the need for creation ofnew/modified classes.

• After deciding that new/modified classes are to becreated, OPCCB undertakes the following:

'" Determines the occupational service andoccupational group;

'" Within the occupational group, determines thedifferent levels of difficulty of duties andresponsibilities;

'" Reviews and finalizes the draft classspecifications;

'" Allocates each class to a salary grade On thebasis of grade level deflnfions or in the absencethereof, on the basis of comparability withestablished classes in the PCP;

'" Submits its recommendation for approval of theDBM Secretary;

• The DBM, through the OPCCB, issues a notice ofchange in the lOS to all DBM offices and to thegovernment agencies concerned; and

• The BMB or DBM Regional Office concerned adoptsthe new/modified class in processing the agencyrequest.

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2.9.3.4 Updating/Revision of Class Specifications orStandards

Occasionally and following consultations withgovernment agencies, the DBM through the OPCCBupdates class specifications or standards. The DBMmay revise, supplement or abolish existing classspecifications or standards so that as nearly aspracticable, positions existing at any given time withinthe government service shall be covered by currentstandards.

2.9.3.5 Revision of Rules and Procedures

The rules and procedures for implementing the PCP arerevised as the need arises to keep pace with changes inadministrative policies and other developments in thegovernment.

2.9.3.6 Use of Official Class Titles

The class titles found in the lOS shall be the officialclass titles of positions and shall be used for personnel,budget and fiscal purposes, without precluding the useof alternate titles for internal administration, publicconvenience, law enforcement, or similar purposes.

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IIIIIII

•III•-IIIII

••IIII



Annex A

SNELECl

ELECTRICIAN I

Definition

Under general supervision, does skilled electrical work in the installationmaintenance and repair of electrical wiring and equipment; or of power linesand electrical lighting; or of electrical generating and utilization equipment; anddoes related work.

Characteristics

Follows blueprints and specifications for the installation of channelboards, circuits and outlets and other equipment; installs electrical wiring,conduits, switches, cables, fuse boxes or circuit breakers in buildinqs, plantsand pumping stations and other structures; installs electrical circuits for buildingautomation controls, security devices, fire alarm devices, audio and videosystems, communication trunks, air-conditioning and refrigeration systems;installs additional circuits for additional lights and appliances; installs electricalequipment such as storage heaters, water heaters and electrical signs; installselectrical wiring in marine craft; tests electrical circuit to ensure safe operationas designed; installs coaxial or fiber optic cable from computers and othertelecommunications equipment; regularly inspects electrical wiring andequipment to identify potential problems; takes corrective action immediately;repairs or replaces defective parts of the electrical system.

Or interprets electrical transmission and distribution plans; installselectric wires from powerhouse to pole; installs on poles electrical fixtures andequipment such as insulators, transformers, street lighting, lightning arrestersand platforms and traffic signals; tests installed electrical equipment andlighting to ensure safe operation; installs connecting wires from main powerlines to buildings and other structures; tests, locates and inspects main line andconnecting lines to locate source of power failure; repairs or replaces defectiveparts of the power system and lighting; may operate aerial bucket truck or anylarge construction equipment.

Or determines repairs and replacements to be made on electricalgenerating, utilization and control equipment using testing instruments;following using diagrams, rewinds armatures and field coils of motors andgenerators and primary and secondary windings of transformers; checks andrepairs electric wiring of motor vehicles and heavy equipment; repairs, rebuilds

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and recharges storage batteries; repairs magnetic switches and horn relays;repairs water temperature and oil gauges and indicators.

Qualifications Guide

Any combination of training and experience equivalent to graduationfrom secondary trade school.

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2-33

oPROVINCE

: l.bOTHERCOMPENSATION

5th 6th

D 0If more space is needed,

BUREAU OR OFFICE

o

Annex B

(Family Name) (Given Name) (Middle

11. OCCUPATIONAL GROUP TITLE(Leave Blank)

9. WORKING OR PROPOSED illLE

ACTUAL

l.a SALARYAUTHORIZED

5. WORK STATION/PLACE OF WORK

1. NAME OF EMPLOYEE

3.

CITY

Duties and Responsibilities

: ORD. NO.: ITEM NO.

ORD. NO.ITEM NO.

13. STATEMENTS OF DUTIES AND RESPONSIBILmES.please attach additional sheets.

Percent of WorkingTime

10. DBM CLASSIFICATION OF THISPOSmON

12. FOR LOCAL GOVERNMENT pOSmON, CHECK GOVERNMENTAL UNIT AND UNITCLASS

MUNICIPAL D

8. OFFICIAL DESIGNATION OFPOSmON

2. DEPARTMENT, CORPORATION ORAGENCY/LOCAL GOVERNMENT UNIT

6a. PRES. APPROP. : 6b. PREV.APPROP.ACT/BOARD RES'; : ACT/BOARD RES';

4. DEPARTMENT/BRANCH/DIVISION

Republic of the PhilippinesDBM-CSC Form No.1(POSmON DESCRIPTION FORM)Name)

III

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IIIIIIIIII

Education:

23b.Licenses or certificates required to do this work, if any.

Experience:

22. Describe briefly the general function of the position.

III

I

IIIIIIII•IIIIIIIIII

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Head of Agency

Signature of Employee

5 Normal Working ConditionField Work

5 Field TripsExposed to Varied Weather

LJ Others (Specify)

19. WORKING CONDmONS

15. rosrnos rrns OF NEXTHIGHER SUPERVISOR

Signature and Title of Immediate Supervisor

Date

5555

Date

Date

Occasional FrequentGeneral PublicOther AgenciesSupervisorsManagementOthers (Specify)

25. APPROVED:

24. I hereby certify that the above answers are accurate and complete.


23a.Indicate the required qualifications by years and kind of education considered infilling up a vacancy for this position. (Keep the position in mind rather than thequalifications of the present incumbent. This item should be filled for all positionsother than teaching.)

21. Describe briefly the general function of the unit or section.

TO BE FILLED OUT BY IMMEDIATE SUPERVISOR

20. I certify that the above answers are accurate and complete.

18. CONTACTS

17. MACHINES, EQUIPMENT, TOOLS, etc. used regularly in performance of work

16. NAMES, rmss and ITEM NOS. OF THOSE YOU DIRECTLY SUPERVISE (If morethan seven (7), list only their item nos. and position titles.)

14. rosrnos rm.s OF IMMEDIATESUPERVISOR

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Annex C

INSTRUCTIONS FOR ACCOMPLISHING THE POSITION DESCRIPTION FORM

The following instructions show how the Position Description Form (PDF) shouldbe filled and how the supervisor should review it.

THE ADMINSTRATIVE OFFICER

The Administrative Officer or equivalent officer of the department, corporation,agency, or local government unit in charge of human resource managementfunctions in which the position is located should fill in Items 1 to 12, exceptItem 11.

Item 1. Name of Employee - Write the name of the employee presentlyoccupying the position. Write the word "vacant" if the position is vacant at thetime this form is accomplished.

Item 2. Department, Corporation or Agency/Local Government - Write downthe exact name of the Office. Avoid using abbreviations. (Write "Departmentof Justice" instead of "DOJ" if a department, "Social Security System" instead of"SSS" if a corporation, and "Rizal Provincial Government" instead of "Rizal" if alocal government unit.)

Item 3. Bureau or Office - Write down the major subdivision of the agencyto which the position belongs and is directly under, such as "Bureau ofImmigration" or "Financial and Management Service" if in the departmentproper.

Item 4. Department/Branch/Division - Write down the immediatesubdivision of the office indicated in Item 3 where the position is deployed,such as "Administrative Services Department," "Personnel Branch," or"Management Division."

Item 5. Work Station/Place of Work - Indicate the geographic location ofthe position, such as Manila, Bataan, Davao, etc.

Items 6a and 6b. Appropriations Act/Board Resolution - Write down thepresent and previous appropriations act, board resolution or ordinance numberand the item number of the position in said appropriations act, board resolutionor ordinance.

Items 7a and 7b. Salary and Other Compensation - Write down the salaryof the position as authorized in the appropriations act, board resolution

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or ordinance and the actual salary of the employee occupying the position. Ifthe position is vacant at the time this form is being accomplished, indicate N.A.for not applicable opposite actual salary. Write down the other regularcompensation for the position.

Item 8. Official Designation of Position - Write down the class title of theposition as authorized in the appropriations act, board resolution or ordinance.

Item 9. Working or Proposed Title - Write down the class title of theposition as requested.

Item 10. DBM Classification of this Position - Write down the classificationof the position as certified to the agency by the DBM. Leave blank if theposition is new and not yet classified.

Item 11. Occupational Group Title - Leave this blank. DBM willindicate the occupational group title after the position has been classified.

Item 12. For local government positions, check the appropriate localgovernment unit and income class of the unit where the position is authorized.

THE EMPLOYEE

Writing the statements of duties and responsibilities (position description) is theresponsibility of the employee holding the position as well as his/her supervisorso as to insure the adequacy, validity and correctness of the statements madetherein. Any duly accomplished PDF submitted, signed and endorsed becomesan official record and a public document. Therefore, care should be taken inaccomplishing the PDF. The employee who presently occupies the positionshould write the description of the duties and responsibilities of the position asperformed and understood by him/her. In case the position is vacant, theimmediate supervisor of the position shall accomplish the PDF for the position.

Below are pointers in writing position descriptions:

A. Do not attempt to write down in a single sitting all the duties andresponsibilities of the position. Take time and give them a little thought.Note down on a sheet of paper the duties and responsibilities asrecalled. Examine the relationship of the position with the otherpositions in the organization. This will help in visualizing the tasksperformed by the position in the overall organizational pattern.

B. After all the duties and responsibilities of the position have been written,rearrange them in descending order from the most important tothe least important, indicating the percent of working time spent on eachof the duties and responsibilities.

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IIIIIIIIII•

IIIIIIIIII


C. Simple, clear and short statements should be used in discussing theduties and responsibilities. Such statements, therefore, should indicatethe what-it-is, the why or purpose, and the how-it-is accomplished.Samples of the work which cannot be adequately described should beattached to the PDF such as reports made, forms accomplished, designsand drawings made, etc.

D. Avoid using vague terms such as "maintains," "checks," "helps," and"prepares." Explain in detail how the position "maintains" mechanicaiequipment and/or records; "checks" plans and/or reports; "helps"carpenters or engineers; "prepares" reports and/or layouts, Forexample, a statistician may "prepare" statistical reports, and so does atypist.

E. Finally, copy what were written on the sheet of paper to the PDF underItem 13 (Statements of Duties and Responsibilities). It is suggested thatbefore doing so, a final review of the statements be made by asking thefollowing questions:

Have all the duties and responsibilities pertinent to the position beenwritten down?

Are the duties and responsibilities statements written in the most conciseand specific terms possible and outlining the what, why and how?

Can the position description be used as an instruction sheet for a newemployee of the position?

Item 13. Statements of Duties and Responsibilities. This is the mostimportant part of the form. Write down in detail what are actually done by theposition. The "Percent of Working Time" in the left-hand column shouldindicate the percentage of working time consumed in performing eachstatement of duties and responsibilities. List the duties and responsibilities inthe order of their importance with the most important duty and responsibilityfirst, the second most important duty second and so on. State fully whetherinstructions are received in detail or in a general way (work is reviewed closelyor from time to time only). Describe also the degree of supervision receivedand given to subordinates, if a supervisor). "Degree of Supervision Received"means the amount and type of instructions and guidance usually received fromthe immediate supervisor, including the rules and regulations, office practicesand procedures and the extent the supervisor controls the performance of thesubordinate's work.

Item 14. Position Title of Immediate Supervisor - Write down theauthorized position or class title of the first or immediate supervisor."Immediate supervisor" refers to the supervisor nearest in levei to the positionsupervised. For example, in a division consisting of seven (7) positions,

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inclusive of one (1) Information Officer V as chief of division and one (1)Information Officer IV as assistant chief of division, the immediate supervisor isthe latter and not the former.

Item 15. Position Title of Next Higher Supervisor - Write down theauthorized position or class title of the next higher supervisor. In the examplegiven in Item 14, this would be the chief of division, the Information Officer V.

Item 16. Names, Titles, and Item Numbers of Employees Supervised Directly- One supervises employees when one gives work assignments or instructionsto them and reviews their work. Write down the names, item numbers, andpositions or class titles of the employees supervised.

Item 17. Machines, Equipment and Tools Used - Write down the machines,equipment or tools used regularly such as a typewriter, mechanic's tools orcalculator or those operated regularly such as a water pump, diesel generatoror computer.

Item 18. Contacts - Check the appropriate box to describe the approximatefrequency of the contacts required of the position in connection with its work.

Item 19. Working Condition - Check the appropriate box that describes theworking condition of the position.

Item 20. Certification by the Employee for Accomplishing the Form Indicate the date the form was fully filled-up. The incumbent of the positionsigns his/her name. Leave this item blank if the position is vacant.

THE SUPERVISOR

The first or immediate supervisor should review the accuracy of the statementsfrom Items 13 to 20. He may add to or explain any of the employee'sstatements that may be inaccurate or incomplete. He/She should also fill inItems 21 to 24.

Item 21. Brief Description of the General Function of the Unit or Section Write a brief description of the function of the unit where the position isdeployed.

Item 22. Brief Description of the General Function of the Position - Write abrief description of the function of the position. Any exception to any statementof duties and responsibilities described by the employee under Item 13 of thisform may be indicated.

Item 23a. Minimum Qualifications Required - The supervisor indicates thesuggested minimum number of years of training and experience which will haveto be considered of an applicant in filling a vacancy for this position. It is

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IIIIIIIIII•II.IIIIIIII



important that the qualifications of the present incumbent of the positionshould not be considered. Other skills, knowledges and abilities preferablyrequired of an incumbent of this position should also be indicated. The filling ofthis item is important especially if the position under consideration is new orproposed.

Item 23b. Licenses or Certificates of Proficiency. Indicate licenses orcertificates required of an incumbent of this position. If no license or certificateis required, write down "None."

Item 24. Certification of Immediate Supervisor - After reading the statementscarefully and giving comments on the adequacy, validity and correctness of thefacts stated, the immediate supervisor certifies to the completeness andaccuracy of the statements/data in the PDF by signing his/her name andindicating the date of certification.

THE AGENCY HEAD

Item 25. Approved - The agency head signs his/her name on the spaceprovided to indicate his/her approval of the statements/data in the PDF.

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Chapter 3

The Compensation Plan

3.1 The Compensation Plan

The Compensation Plan (CP) under RA No. 6758 is an orderly scheme fordetermining rates of compensation of government personnel. It wascrafted to attract, motivate and retain good and qualified people toaccomplish the Philippine Government's mission and mandates, toencourage personal and career growth, and to reward good performanceand length of service. To achieve these goals, the CP has a mix ofcompensation components, namely; basic payor salaries, fringe benefits,incentives and non-financial rewards which provide reasonable levels ofcompensation packages within existing government resources, and areadministered equitably and fairly.

3.2 Concepts of Compensation

3.2.1 Total Compensation - This represents all financial and nonfinancial rewards and entitlements arising from employmentrelationship.

3.2.2 Intrinsic Rewards - These are derived from the workenvironment, which are valued internally by an indlvldual, likequality of worklife, job satisfaction, challenge, personal andprofessional growth opportunities, feeling of belonging, freedomto act, visionary leadership, and the like.

3.2.3 Extrinsic Rewards/Entitlements - These comprise allcompensation benefits, both monetary and non-monetary, andreceived directly or indirectly by the employee.

3.2.4 Direct Compensation - These are cash compensation itemswhich are either fixed or variable and are paid to an employeefor the performance of work. These include basic pay, cashallowances and fringe benefits.

3.2.5 Indirect Compensation - These are usually non-cash or inkind benefit items that contribute to the employee's welfare,standard of living and personal development. These includeprotection programs such as insurances, paid leaves, perquisitesand training programs.

3-1


3.2.6 Fixed Compensation - These are cash compensation itemswhich are regularly granted to all employees. Examples are:basic salaries, Personnel Economic Relief Allowance (PERA), andAdditional Compensation (ADCOM).

3.2.7 Variable Compensation - These are cash compensation itemswhich are granted to employees based on certain qualificationsor rendition of special services. Examples are, hazard pay,honoraria, night-shift differential pay, and overtime pay.

3.2.8 Basic Pay - This is the primary cash compensation for workperformed, excluding any other payments, allowances andfringe benefits.

3.2.9 Salary - This refers to the basic pay for work performed by anemployee paid on a monthly basis.

3.2.10 Wage - This refers to the basic pay for work performed by anemployee paid on a daily or hourly basis.

3.2.11 Fringe Benefits - These refer to cash compensation benefitsgiven to an employee to supplement the basic pay. Theseinclude cash allowances, bonuses, premium payments, etc.

The chart on page 3-3 shows the Concept of Total Compensation andwhat comprises it under the existing Compensation Plan of the PhilippineGovernment.

3-2

IIIIIIIIII•IIIIIIIII

I

II TheCompensation Plan

Total Compensation'I

I Intrinsic Rewards I I Extrinsic Rewards I~job satisfaetlonLcerscrercareer growth~quaUty of workJtfeLsense of belonging

I Direct Compensation I I Indirect Compensation I

I Fixed I Variable II

Paid leave IProtective r IVariable Fringe Benefits ..J t health insurance vacation leave _

Basic Pay · hazard pay retirement benefit sick reeve ;· salary · honoraria employee compensation special privilege leave _· Wage · overtime pay Insurance patemrtv/metermtv leave _L-Flxed Fringe Benefits · night-shift differential pay single parent's leave _

· PERA · subsistence Allowance monetization ofleave credits _

· ADeOMAdditional service! I I

I· unifonn allowance PersonalI I Develooment

I- free medical/dental sports activities-eUnic cultural activities-,

I- shuttle service training programs-L... free meals (hospitals) scholarship grants_

intershlp programs_

others Perquisites

IIIIIIII•II

~housIng loanPAG·IBIG Fund benefitsProvident Fund benefitsquarters privilege

_ laundry allowance

service car_mobile/cell phone _

assigned driver/secretary _preferred office fumlshinq _

assigned parking space _free quarters _

newspaper subscriptions _

IIIIIIII

3.3 Policy of the State

Section 2 of RA No. 6758 provides the compensation policy of the State,to wit:

"It is hereby declared the policy of the State to provide equalpay for substantially equal work and to base differences inpay upon substantive differences in duties andresponsibilities, and qualification requirements of thepositions. In determining rates of pay, due regard shall begiven to, among others, prevailing rates in the private sectorfor comparable work. "

3.4 Governing Principles of the Compensation Plan

Pursuant to RA No. 6758, the CP is based on the follOWing principles:

3.4.1 All government personnel shall be paid just and equitable salaries

3-3


and wages.

3.4.2 The basic pay for all personnel in the government shall generallybe comparable with those in the private sector.

3.4.3 The total compensation program of government personnel shallbe maintained at a reasonable level in proportion to the nationalbudget.

3.4.4 Government compensation rates shall be reviewed periodicallytaking into account possible erosion in purchasing power due toinflation and other economic factors.

3.5 General Guidelines on Government Compensation

Government compensation shall be governed by the following generalquidelines:

3.5.1 Each class of positions in the Position Classification Plan shall beassigned a salary grade.

3.5.2 Compensation for part-time services rendered shall be computedproportionately.

3.5.3 Across-the-board salary or wage adjustment shall be granted to allemployees.

3.5.4 Salary and other compensation adjustments including the grant ofnew benefits shall be covered by appropriate legal basis orauthority.

3.5.5 As a general rule, no official or employee shall receive a salaryequal to or higher than the salary of his/her immediate supervisor,except when otherwise authorized by law, rules and regulations.

3.5.6 Unless otherwise specifically approved by the President, no personshall be appointed in the government under the guise of voluntaryservice, with compensation below the hiring rate for the position,provided that, the application of this provision may be waived toauthorize voluntary service in the Armed Forces of the Philippinesor in connection with relief operations.

3.6 Contents of the Compensation Plan

The CP contains the follOWing:

• Salary schedule;

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• Salary rules; and

• Policies, rules and regulations related to other compensation such asallowances and other benefits.

3.7 The Salary Schedule

• The salary schedule under the CP is a table of salary grades witheach salary grade consisting of several salary steps withcorresponding money values.

• A salary,grade represents a level of difficulty and responsibility ofwork. The present Salary Schedule consists of 33 salary grades.

• Each of Salary Grades 1 to 32 consists of 8 salary steps which areused to provide incentives for length of service in the position. SalaryGrade 33 has only 1 salary step.

• The 1st salary step is the minimum or hiring rate. The 2nd to i h

salary steps are the intermediate salary rates. The 8th step is themaximum salary rate.

• All rates in the Salary Schedule represent full compensation for fulltime employment in a 40-hour work week regardless of where thework is performed.

• The daily wage represents full compensation for full-timeemployment in an 8-hour work day regardless of where the work isperformed. The daily rate shall be computed based on theauthorized/actual monthly rate for the position divided by 22 days.

3.8 Salary Rules

The rules governing the implementation of the salary schedule are asfollows:

3.8.1 Hiring Rate

3.8.1.1 The first step in the salary grade for a given class ofpositions shall be the hiring rate for new employees.

3.8.1.2 No employee shall receive a salary less than the hiringrate for the position.

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3.8.2 Promotion - This is a movement from a lower level position to ahigher level position within the same or in another organizationalunit in the same department or agency.

3.8.2.1 If the actual salary of the employee at the time of his/herpromotion is below the hiring rate of the new position,he/she shall be allowed the hiring rate or 1st step of thesalary grade of the new position.

3.8.2.2 If the present salary falls between steps, he shall beallowed the next higher step, i.e., the immediatelysucceeding step to an off-step salary rate. Hence, if thesalary rate falls between steps 3 and 4/ the next higherstep is step 4.

3.8.2.3 If the present salary is equal to any of the steps of thenew position, he/she shall be allowed the next higherstep. However, if it is equal to the maximum or 8th step,he/she shall only continue to receive the same salaryrate.

3.8.2.4 If the present salary is over the maximum or 8th step ofthe new position, he/she shall continue to receive his/herpresent salary. Any excess over the 8th step shall betreated as transition allowance which shall be consideredas advanced implementation of future salary increase/so

3.8.3 Demotion - This is a movement from a higher level position to alower level position within the same or in another organizationalunit in the same department or agency.

3.8.3.1 If the demotion is due to the exigency of the service, theemployee shall be allowed to continue to receive his/herpresent salary in the higher level position.

3.8.3.2 If the demotion is voluntary or at the instance of theemployee or a result of disciplinary action, he/she shallbe allowed only the hiring rate of the lower level position.

3.8.4 Transfer - This is a movement from one position to another fromone department or agency to another, or from one organizationalunit to another within the same department or agency.

3.8.4.1 If the transfer is to a higher level position, the salaryrules on promotion shall apply.

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3.8.4.2 If the transfer is to a position of equivalent rank or of thesame salary grade as the previous position, the employeeshall continue to receive his/her present salary.

3.8.4.3 If the transfer is to a lower level position, the salary ruleson demotion shall apply.

3.8.5 Reclassification of Position - This is a form of positionclassification action which may result in a change in position titleor position level, and mayor may not involve a change in salarygrade.

3.8.5.1 An employee whose position was reclassified to anotherposition at the same salary grade shall continue to bepaid his/her present salary rate.

3.8.5.2 If reclassified to a position with a higher salary grade, thesalary rules on promotion shall apply.

3.8.5.3 If reclassified to a position with a lower salary grade, theemployee shall be allowed to continue to receive his/herpresent salary.

3.8.6 Reorganization - This involves the restructuring of theorganization and staffing of government agencies for the efficientconduct of their functions, services and activities.

3.8.6.1 An employee who holds a permanent position in the oldorganization's staffing pattern and is reappointed to alower level position in the new staffing pattern shallcontinue to receive his/her actual salary at the time ofreorganization.

3.8.6.2 If an employee is reappointed to the same position or toa position at the same salary grade, he/she shall continueto receive his/her present salary.

3.8.6.3 If an employee is reappointed to a higher level position,the salary rules on promotion shall apply.

3.8.7 Re-employment - An employee who was separated from theservice because of reduction in force, reorganization, voluntaryresignation or any non-disciplinary action such as dropping fromthe rolls and is reemployed, shall be paid the hiring rate or the 1'tstep of the salary grade of the position.

3-7


3.8.8 Reinstatement - An employee who was charged andterminated from government service but was subsequentlyexonerated and reinstated shall continue to receive his/herprevious salary.

3-8

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'.I

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3.9 Other Compensation, Allowances and Benefits

3.9.1 Step Increment

Step increment is the increase in salary from step to step withinthe salary grade of a position.

The grant of step increments to government personnel based ontheir lengths of service is pursuant to Item 8 of Joint SenateHouse of Representatives Resolution No.1, s. 1994, as adoptedunder Executive Order No. 164 (Adopting a Revised Compensationand Classification System in the Government), dated March 8,1994.

3.9.1.1 Coverage

Officials and employees of national government agencies(NGAs) including state universities and colleges (SUCs),government-owned or -controlled corporations (GOCCs),government financial institutions (GFIs) and localgovernment units (LGUs) who are appointed in thecareer service under permanent status and in the noncareer service whose positions are found in the regularplantillas of agencies

3.9.1.2 Not Covered

3.9.1.2.1 Career and non-career officials andemployees who are occupying positions inagencies exempted from or not followlnq RANo. 6758;

3.9.1.2.2 career Executive Service Officers whose stepincrements are governed by career ExecutiveService Board Circulars;

3.9.1.2.3 Military personnel under the Armed Forces ofthe Philippines, and uniformed personnelunder the Department of the Interior andLocal Government, Philippine Coast Guardunder the Department of Transportation andCommunications and National Mapping andResource Information Authority under theDepartment of Environment and NationalResources; and

3-9


3.9.1.2.4 Elective officials

3.9.1.3 Rules and Regulations

3.9.1.3.1 A one (1) step increment shall be granted toofficials and employees for every 3 years ofcontinuous satisfactory service in theirpresent positions.

3.9.1.3.2 The length of service in the present positionsshall include the following:

3.9.1.3.2.1 Those rendered by incumbentsbefore their positions were:

• reclassified to classes withlower or the same salarygrades, as in IllustrativeExample 1, Annex A;

• allocated to lower or thesame salary grades in areorganization, whether ornot the position titles werechanged as in IllustrativeExample 2, Annex A; and

• upgraded, i.e., with upwardchange in the salary gradeallocation of a class ofpositions without change inthe position title, as inIllustrative Example 3, AnnexA.

3.9.1.3.2.2 Those rendered by incumbentsbefore they were:

• transferred to other positionswithin the same NGA, SUC,GOCC or GFI, transferred toanother agency ortransferred/devolved to anLGU or vice versa, withoutchange in position titles andin salary grades, as in

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Illustrative Example 4, AnnexA',

• separated due to phase-outof position duringreorganization butsubsequently re-appointed tothe same positions or toother positions with thesame or lower salary gradesin view of the decisions ofjudicial/quasi-judicial bodies,as in Illustrative Example 5,Annex A; and

• placed under preventivesuspension without pay butsubsequently exonerated byappropriate judicial/quasijudicial bodies, as inIllustrative Example 6, AnnexA-,

3.9.1.3.2.3 Those rendered by incumbentsappointed to regular positionson a temporary/provisionalstatus who have beensubsequently appointed to thesame positions in permanentstatus, as in Illustrative Example7, Annex A.

3.9.1.3.3 Services rendered by incumbents under thefollowing instances shall not be considered inthe computation of their lengths of service:

• Those rendered before their promotion;

• Those rendered before the upwardreclassification of their positions; and

• Those rendered before voluntarydemotion or demotion as a result ofdisciplinary action.

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3.9.1.3.4 Step increments shall be limited to themaximum step of the salary grades ofpositions.

3.9.1.3.5 Authorized vacation leave without pay for anaggregate of 15 days or less, inclusive ofSaturdays, Sundays and holidays, shall notinterrupt the continuity of the 3 years servicerequirement for the grant of a stepincrement. When the total number ofauthorized vacation leave without payincurred within the 3- year period exceeds 15days, the date of the grant of step incrementsshall be moved or adjusted accordingly.

3.9.1.3.6 In case of downward reclassification of aposition due to the exigency of the service orin case of involuntary demotion, in which casethe actual salary of the incumbent falls inbetween steps, e.g., between step 4 and step5 of the salary grade of the position, thesalary of the incumbent which is off-step shallonly be adjusted to the next higher step, orstep 5 after completing 3 years of service inthe previous higher position.

3.9.1.3.7 Public Health Workers shall either be grantedstep increments or longevity pay, but notboth benefits as the grant of both for thesame purpose and period constitutes doublerecovery of the same benefit which iscontrary to Section 36 of RA No. 7305(Magna Carta of Public Health Workers).

3.9.1.4 Applicability of Personal SelVices Cap

The step increment forms part of the implementation ofRA No. 6758, hence, the personal services cap under theLocal Government Code shall not be applicable to thegrant thereof to appointive LGU employees, provided thatthe prescribed salary schedule for the LGUs' incomeclasses are being implemented.

3.9.1.5 Notice of Step Increment

Heads of agencies shall notify the officials and employeesentitled thereto through a Notice of Step Increment as

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shown in Annex B hereof, copy furnished the GovernmentServic-e Insurance System (GSIS).

3.9.1.6 Funding Source

3.9.1.6.1 For NGAs including SUCs, the amounts shallbe charged against agency savings fromappropriations.

3.9.1.6.2 For GOCCs and GFIS, the amounts shall becharged against their respective corporatefunds.

3.9.1.6.3 For LGUs, the amounts shall be chargedagainst their respective local governmentfunds.

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3-14

Annex A

ILLUSTRATIVE EXAMPLES


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March I, 2000 (Date ofupgrading of the position)

February I, 1999 (Date ofappointment

May IS, 2002 (Date ofpromotion)

January 1,2005 (Effectivityof reorganization)

July 1,2004 (Date ofappointment)

January I, 2005 (Effectivitydate of reclassification ofthe position)

6,2 I I

13,300

13,300

6,522

6,522

P4,796

SG-I I

SG-15

SG-4

SG-4

Legislative Staff Employee I SO-4

Legislative Staff Employee I SG-2

Information Officer I

The computation of the length of service shall start from February I, 1999. The salaryadjustment to Step 2 in the position of Legislative Staff Employee I, SG-4, shall be onFebruary I, 2002; to Step 3 on February 1,2005.

Information Officer II

The computation of the length of service shall start from May 15,2002. The resultantsalary due to involuntary demotion on January I, 2005 shall be P13,300 which is alreadybeyond Step 8 of SG-II. The employee is no longer entitled to step increment in theposition of Information Officer I.

Illustrative Example 3 - Upgrading of Position

The computation of the length of service shall start from July I, 2004, The salaryadjustment to Step 2 in the position of Science Aide, SG-4, shall be on July 1,2007.

Illustrative Example 2 - Involuntary Demotion

Science Aide

Geologic Aide

Illustrative Example 1 - Reclassification of Position

3-15

Illustrative Example 5 - Reappointment to a Position with Lower Salary Grade


The computation of the length of service shall start from December I, 1997. The salaryadjustment to Step 7 in the position of Engineer lll, SG-19, shall be on December 1,2000; (0 Step8 on December I, 2003.

March I, 2003 (Dateof appointment)

October I, 2004 (Dateof transfer)

July I, 2002 (Date of court'sdecision)

July I, 2000 (Date of reappointment withoutdiminution in salary)

July I, 2000 (The positionwas phased-out due toagency reorganization.)

December I, 1997 (Date ofpromotion)

P6,522

P6,522

P16,667

P18,334(adjustedsalary in thepreviousposition ofEngineer IV;falls betweenthe step 6and step 7 ofSG-19)

SG-19

SG-22

SG-4

SG-4

Engineer III

Engineer IV

Dental Aide

Dental Aide

The computation of the length of service shall start from March I, 2003. The salaryadjustment to Step 2, shall be on March I, 2006, and succeeding step increments shall beevery 3 years thereafter, if the incumbent remains in the same position.

Illustrative Example 4 - Transfer

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Illustrative Example 6 - Exoneration of an Employee Placed under PreventiveSuspension

The computation of the length of service shall start from November 15, 2000. The salaryadjustment to Step 2 shall be on November 15,2003, and succeeding step increments shall beevery 3 years thereafter, if the incumbent remains in the same position.

The salary of the incumbent is adjusted to Step 4 on April 1,2005.

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•IIII

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August 15, 2004(Date of change ofstatus of appointment)

April I, 1996 (Date ofappointment)

June 15,2004 (Dateof exoneration)

December 15, 20003(Placed' underpreventive suspensionwithout pay)

November 15, 2000(Date of appointment)

P6,039

P6,039

P9,466

SO-3

SO-3

SO-IO

Ticket Checker (Permanentstatus)

Ticket Checker (Temporarystatus)

Illustrative Example 7 - Change of Status of Appointment

Nurse I

p--------Add: Step Increment ( Step)

=-- (Step )

3-17

Head of Agency

Very truly yours,

P_------

Adjusted Salary Effective

Basic Monthly Salary as of

Date

NOTICE OF STEP INCREMENT

Name of Agency


Annex B

Copy furnished: GSIS

This step increment is subject to post-audit by the Department of Budget andManagement and to appropriate re-adjustment and refund if found not in order.

Pursuant to CSC and DBM Joint Circular No. I, s. 1990, as amended,implementing Paragraph 8 of the Senate and House of Representatives JointResolution No. I, s. 1994, as adopted under Executive Order No. 164 (Adopting aRevised Compensation and Position Classification System in the Government), datedMarch 8, 1994, your salary as , is hereby adjusted effective________, as follows:

SirlMadam:

Mr.lMs. _

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IIII

IIII

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3.9.2.2.1 Elective officials;

3.9.2.1.2 Casual or contractual employees; and

3.9.2.2 Not Covered

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I,,

III

Consultants, experts, student laborers,apprentices, laborers of contracted projects("pakyaw"), mail contractors, those paid onpiecework bases; and others similarlysituated.

3.9.2.2.4

3.9.2.3.1 Government personnel who are paid salarieson monthly basis shall be granted PERA ofPSOO each per month.

3.9.2.2.3 Those declared by the authorities concernedas absent without leave during the month;and

3.9.2.2.2 Government personnel stationed abroad andothers similarly situated;

3.9.2.1.3 Military personnel of the Armed Forces of thePhilippines, and uniformed personnel of theDepartment of the Interior and LocalGovernment, Philippine Coast Guard underthe Department of Transportation andCommunications, and the National Mappingand Resource Information Authority under theDepartment of Environment and NaturalResources.

3.9.2.1.1 Appointive government personnel occupyingregular plantilla positions;


3.9.2.1 Coverage

The Personnel Economic Relief Allowance (PERA) is a PSOOmonthly allowance authorized under the pertinent generalprovision in the annual General Appropriations Act (GAA). It isgranted to augment a government employee's pay due to therising cost of living.


3.9.2 Personnel Economic Relief Allowance

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3.9.2.3.5 The rules and regulations relative to the PERAfor LGU personnel are covered by Chapter 9of this Manual.

~umber of Days ]

Worked Duringthe Month

3.9.2.4.2 For GOCCs and GFls, the amounts shall becharged against their respective corporatefunds.

3.9.2.4.1 For NGAs including SUCs, the PERA forpersonnel occupying regular positions shall becharged against the appropriations for thepurpose in the annual GAA. The PERA forcasual and contractual personnel shall becharged against their respective lump-sumappropriations.

3.9.2.3.4 Government personnel who are on full-timeor part-time detail with another governmentagency shall receive the PERA from theirmother agencies, or from the same sourcewhere they draw their basic pay. No oneshall receive PERA from more than onesource.

3.9.2.3.3 Actual services rendered during the month forwhich PERA is to be paid shall include leavesof absences with pay.

3.9.2.3.2 The PERA of government personnel paid ondaily or part-time basis shall be computed asfollows, based on the actual servicesrendered during the month but not to exceedPSOO per month:

PERA for the Month =I---~-~~~:~~~~---- Jt WorkDays/Month

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3.9.3 Additional Compensation

The Additional Compensation (ADCOM) of P500 per monthauthorized under Administrative Order (AO) No. 53, dated May 17,1993, is granted as a supplement to basic pay. AO No. 144 datedFebruary 28, 2006, authorized the increase in the existing P500per month ADCOM by Pl,OOO per month, resulting to a total ofPl,500 per month.

3.9.3.1 Coverage

3.9.3.1.1 Civilian appointive personnel underpermanent, temporary, contractual, casual orsubstitute status, on full-time or part-timebasis, in national government agencies(NGAs), including state universities andcolleges, government-owned and/orcontrolled corporations (GOCCs) andgovernment financial institutions (GFIs)created by law, which are covered by orfollowinq RA No. 6758 (Compensation andPosition Classification Act of 1989), asamended;

3.9.3.1.2 Military personnel of the Armed Forces of thePhilippines and uniformed personnel of theDepartment of the Interior and LocalGovernment, Philippine Coast Guard underthe Department of Transportation andCommunications and the National Mappingand Resource Information Authority under theDepartment of Environment and NaturalResources; and

3.9.3.1.3 Officials and employees of local governmentunits (LGUs)

3.9.3.2 Not Covered

3.9.3.2.1 Government officials and employees in NGAsand GOCCs/GFIs exempt from the coverageof RA No. 6758; and

3.9.3.2.2 Consultants, experts, student laborers,apprentices, laborers of contracted projects("pakyaw''), mail contractors, those paid onpiecework basis and others similarly situated

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i

IIII




3.9.3.3.1 Government personnel who are paid salarieson monthly basis shall be granted ADCOM ofPl,sOO each per month.

3.9.3.3.2 The ADCOM of government personnel paid onhourly, daily or part-time basis shall becomputed on the basis of actual servicesrendered on an eight-hour work day, 22 workdays per month, regardless of the number ofwork days in a month but not to exceedPl,sOO per month.

3.9.3.3.3 The ADCOM of government personnel onabsence without leave and/or on leavewithout pay during the month shall becomputed on the basis of actual servicesrendered with pay during the month.

3.9.3.3.4 Government personnel on full-time or parttime detail with other government agenciesshall be paid the ADCOM by their motheragencies. Those on full-time or part-timedetail with projects shall be paid ADCOM fromproject funds if they draw their basic salariestherefrom. No one shall receive ADCOM frommore than one (1) fund source.

3.9.3.3.5 The ADCOM of government personnel withpending cases shall continue to be paid for aslong as they render services and are paidtheir basic salaries.

3.9.3.3.6 The ADCOM of government personnel underpreventive suspension shall not be paidduring the period of their suspension. If theyare exonerated and if decided upon by theauthorities concerned, they shall be entitled'to the full amount of the ADCOM startingfrom the day of suspension. If they weremeted penalties and not paid their salaries,they shall not be entitled to the ADCOM untilthey have served their penalties.

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3.9.3.3,6.1 If the penalty meted out is onlya reprimand, such penalty shallnot be a basis for thedisqualification to receive saidbenefit.

3.9.3.3.7 The rules and regulations relative to thepayment of ADCOM to LGU personnel areprovided in Chapter 9 of this Manual.


3,9.3.4.1 For NGAs including SUCs, the ADCOM forpersonnel occupying regular positions shall becharged against the appropriations in the

. annual GAA. The ADCOM for casual andcontractual personnel shall be chargedagainst their respective lump-sumappropriations.

3.9.3.4.2 For GOCCs and GAs, the amount shall becharged against their respective corporatefunds.


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,



3.9.4 Uniform/Clothing Allowance

The Uniform/Clothing Allowance (UCA) authorized under thepertinent general provision of the annual GAA is granted to coverthe cost of uniform/clothing of government employees to identifythem with their mother agency/office.

3.9.4.1 Coverage

All government personnel regardless of status ofemployment

3.9.4.2 Not Covered

3.9.4.2.1 Military personnel of the Armed Forces of thePhilippines and uniformed personnel of theDepartment of the Interior and LocalGovernment and the Philippine Coast Guardunder the Department of Transportation andCommunications;

3.9.4.2.2 Foreign service personnel of the Departmentof Foreign Affairs and of other departmentsand agencies who are stationed abroad;

3.9.4.2.3 Government personnel who are on leavewithout pay for more than 6 consecutivemonths in a particular year;

3.9.4.2.4 Government personnel whose U/CA rates arespecifically provided for by law; and

3.9.4.2.5 Those who are hired as consultants, experts,student laborers, laborers of contractedprojects ("pakyaw"), mail contractors, thosepaid on piecework bases, and others similarlysituated


3.9.4.3.1 The U/CA, which rate shall be as prescribed inthe pertinent general provision of the annualGAA, may be given in cash or in kind subjectto the discretion of the agency head.

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3.9.4.3.2 Government personnel who are expected torender at least 6 consecutive months ofservice in a particular year including leaves ofabsence with pay shall be entitled to UjCA.

3.9.4.3.3 Newly hired government personnel shall beentitled to UjCA after they have rendered 6consecutive months of service, or in the nextgrant thereof, whichever comes later.

3.9.4.3.4 Part-time government personnel shall not beentitled to UjCA except medical personnelwho shall be entitled to UjCA equivalent to1j2 of the amount authorized in the GAA.

3.9.4.3.5 The UjCA for special police, security guards,prison guards, firefighters and other similarpositions shall be inclusive of other articles ofclothing like regulation caps, belts, and coats.

3.9.4.3.6 The UjCA of government personnel who areon detail with other government agenciesshall be borne by the mother agency.

3.9.4.3.7 Government personnel who transferred toother agencies during the first 6 months of aparticular year and were not granted UjCA bytheir former agencies, whether in cash or inkind, shall be granted UjCA by their newagencies. If they transferred to otheragencies within the last 6 months of aparticular year, they shall no longer begranted UjCA by their new agencies as bythen they are deemed to have been grantedUjCA by their former agencies.

3.9.4.3.8 Government personnel who are required towear uniforms at all times in the performanceof their functions such as security guards,prison guards, firefighters, teachers, thosewhich are in direct contact with patients, andothers occupying similar positions, shall begranted U/CA whether or not they meet theservice requirement.

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3.9.4.3.9 Government personnel who transferred toother agencies and who are required to wearuniforms at all times like the positions citedunder item 3.9.4.3.8 hereof, may be grantedU/CA by their new agencies even if they havereceived U/CA from their former agencies,subject to the discretion of the agency headconcerned.

3.9.4.3.10 The guidelines on the wearing of the uniform,e.g. for those in mourning, on maternityleave, during wash days, etc. shall be at thediscretion of the agency head.


3.9.4.4.1 For NGAs including SUCs, the amounts shallbe charged against the appropriations for thepurpose under the annual GAA. The U/CA ofcasual and contractual personnel shall becharged against their respective lump-sumappropriations.



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3.9.5 Representation and Transportation Allowances

The pertinent general provisions of the General AppropriationsActs (GAAs) prior to FY 1993 and in the FY 1999 GAA providedthat the officials listed therein and those of equivalent ranks asmay be determined by the Department of Budget andManagement (DBM) are to be granted monthly commutableRATA. Hence, prior to FY 1993 and in FY 1999, RATA wereallowances attached to the position.

The pertinent general provisions of the FYs 1993 to 1998 GAAsand in the FY 2000 GAA provided that the officials listed thereinand those of equivalent ranks as may be determined by the DBMwhile in the actual performance of their respective functions areto be granted monthly commutable RATA. This provision wasreiterated in the pertinent general provisions of subsequent GAAs.Hence, in FYs 1993 to 1998 and beginning FY 2000 and up to thepresent, the actual performance of an official's duties andresponsibilities was a pre-requisite to the grant of RATA.

The rationale behind the qualifying phrase, "while in the actualperformance of their respective functions," is to provide theofficial concerned with additional funds to meet necessaryexpenses incidental to and connected with the exercise or thedischarge of the functions of the office. Thus, if the official is outof office, whether voluntary or involuntary, the official does notand is not supposed to incur expenses. There being no expensesincurred, there is nothing to reimburse.

Since RATA are' privileges or benefits in the form ofreimbursement of expenses, they are not salaries or part of basicsalaries. Forfeiture or non-grant of the RATA does not constitute

.diminution in pay.

RATA may be spent in variable amounts per work day dependingon the situation. Entitlement thereto should not be proportionateto the number of work days in a month, inclusive of regular andspecial holidays falling on work days.

3.9.5.1 Coverage

3.9.5.1.1 Officials enumerated in the pertinent generalprovision of the annual GAA;

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3.9.5.2.1 ~TA Rates



3.9.5.1.4 Those hired on full-time contractual basis aspart of agency organizations and whosepositions were determined by the DBM asequivalent in ranks with the officialsenumerated under item 3.9.5.2.1 hereof.

P 7,500

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Monthly Ratefor Each Typeof AllowanceOfficials

Department Secretariesand those of equivalent ranks

Pursuant to Section 45 of the GeneralProvisions of ~ No. 9336, the FY 2005 GAA,re-enacted in FY 2006, and as implementedby National Budget Circular No. 498 datedApril 1, 2005, the following are the RATArates:

Officials and those of equivalent ranks as maybe determined by the DBM who actuallyperform the regular duties and responsibilitiesof their positions are authorized to collectmonthly commutable ~TA at ratesprescribed under the pertinent generalprovision of the annual GAA.

3.9.5.1.3 Those duly designated by competentauthorities to perform the full-time duties andresponsibilities, whether or not in concurrentcapacities, as Officers-In-Charge (OICs) ofpositions in items 3.9.5.1.1 and 3.9.5.1.2hereof; and

3.9.5.1.2 Those whose positions were determined bythe DBM to be of equivalent ranks with theofficials enumerated under item 3.9.5.2.1hereof, including those in GOCCs, local waterdistricts (LWDs) and GFIs;



Department Undersecretaries 6,000and those of equivalent ranks

Department Assistant Secretaries 5,500and those of equivalent ranks

Bureau Directors, Department 5,000Regional Directors and thoseof equivalent ranks

Assistant Bureau Directors, Department 4,500Assistant Regional Directors, BureauRegional Directors, Department ServiceChiefs and those of equivalent ranks

Assistant Bureau Regional Directors 4,000and those of equivalent ranks

Chiefs of Division identified as such 3,000in the Personal Services Itemization andPlantilla of Personnel and thoseof equivalent ranks

Revised RATA rates may be implemented in future yearsif authorized in the GAA, subject to the provisions ofimplementing circulars.

3.9.5.2.2 Officials and employees enumerated underitem 3.9.5.1 hereof shall no longer beauthorized to continue to collect RATA if theyare in the following instances for one (1) fullcalendar month or more: .

3.9.5.2.2.1 When on full-time detail withother government agencies oron reassignment within thesame government agencies,except when the duties andresponsibilities they perform arecomparable with those of theirregular positions, in which case,they may be authorized tocontinue to collect RATA on areimbursable basis, subject tothe availability of funds; and

3-28

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3.9.5.2.2.2 When on vacation, sick ormaternity leave of absence withor without pay.

3.9.5.2.3 Officials and employees whose detail orreassignment has been found by appropriatejudicial bodies to be not in accordance withexisting laws, rules and regulations, shall beauthorized to collect RATA on reimbursablebases for the duration of such detail orreassignment.

3.9.5.2.4 Officials and employees who are onauthorized attendance at a trainingcourse/scholarship grant/seminar or anyother similar activity, which is tantamount tothe performance of their regular duties andresponsibilities, may be authorized tocontinue to collect RATA on a reimbursablebasis, subject to the availability of funds.

3.9.5.2.5 Officials and employees designated asOfficers-In-Charge of positions entitled tocommutable RATA may be authorized tocollect reimbursable RATA for the positions ifprovided in the office orders designating themas such, except in the followlnq instances:

3.9.5.2.5.1 When designated in concurrentcapacities and the officials andemployees so designated arealready entitled to commutableRATA in their permanentpositions, in which case theymay be authorized to collect thedifference only, if any, betweenthe RATA of the two positions;and

3.9.5.2.5.2 When on full-time or part-timedetail with another governmentagency or on reassignment inan organizational unit of thesame government agency;attending a training course/scholarship grant/seminar orany other similar actiVity; or on

3·29


vacation, sick or maternity leaveof absence, for one (1) fullcalendar month or more.

3.9.5.2.6 The Transportation Allowance (TA) shall notbe granted to officials who are assigned orwho use government service vehicles in theperformance of their duties andresponsibilities.

3.9.5.2.7 Officials whose service vehicles could not beused for at least one (1) week since these areout of order or are undergoing repair shall beallowed to claim the proportionate monthlycash equivalent of their TAs until such servicevehicles are ready for use.

3.9.5.2.8 Full-time contractual employees whosepositions were determined by the DBM to beof equivalent ranks to the officialsenumerated under item 3.9.5.2.1 hereof areentitled to commutable RATA at ratesindicated therein. The grant of RATA shall beindicated in the terms of the contracts ofservice.


3.9.5.3.1 NGAs Including SUCs

3.9.5.3.1.1 The commutable RATA forofficials in NGAs and sues who.occupy regular positions shall becharged against theappropriations for the purposein the annual GAA. Deficienciesshall be charged against savingsin agencies' appropriations forpersonal services.

3.9.5.3.1.2 The reimbursable RATA for dulydesignated Officers-In-Chargeof funded vacant positions shallbe charged against the RATAappropriated for the positions. Ifthe positions are unfunded, thereimbursable RATA shall be

3-30

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charged against savings fromappropriations for maintenanceand other operating expenses.

3.9.5.3.1.3 The RATA for contractualofficials shall be charged againstthe corresponding lump sumappropriations.

3.9.5.3.2 GOCCs and GAs

The RATA shall be charged against theirrespective corporate funds.

In all cases, no one shall be allowed to collect RATA frommore than one source.

3-31

'" resignation;


3.9.6 Year-End Bonus and Cash Gift

3.9.6.1 Coverage

IIIIIIIII'II•IIIIIIIIII

3-32

contract!'" termination ofappointment; or

'" separation not for cause;

o before the termination of theemployment during the year under thefolloWing modes:

The aggregate service requirement forpurposes of the grant of YEB shallinclude such services

• those who have rendered at least a totalor an aggregate of 4 months of serviceincluding leaves of absence with pay;

• those who have rendered less than 4months of service

• those who are on approved leave ofabsence without pay but have rendered atleast a total or an aggregate of 4 monthsof service provided they are not yetdropped from the rolls; and

I

3.9.6.1.1 All government personnel in NGAs includingSUCs, GOCCs, GFls and LGUs, whetherappointive or elective, under permanent,temporary or casual status, and those issuedcontractual appointments who are under thefollowing instances from January 1 to October31 of each year:

The Year-End Bonus and Cash Gift are intended as year-endpremiums to government personnel for satisfactory and dedicatedservice. They are collectively referred to as the Year-end Benefit(YEB), authorized under Republic Act (RA) No. 6686, as amendedby RA No. 8441. The liberalization of the grant thereof isauthorized pursuant to the pertinent general provision in theannual GAA.

\~



'" termination of term in office

o from the date they wererehired/reappointed during the year tothe same or another position in thesame or another agency.

3.9.6.1.2 All "punong barangay," "sangguniangbarangay" members, "barangay" secretariesand "barangay" treasurers

3.9.6.2 Not Covered

All government personnel under the following instancesshall not be entitled to the one-half (1/2) YES or the fullYES:

3.9.6.2.1 those on absence without leave (AWOL);

3.9.6.2.2 consultants, experts, student laborers,apprentices, laborers of contracted projects("pakyaw''), mail contractors, those paid onpiecework bases, and others similarlysituated; and

3.9.6.2.3 those who are formally chargedadministrative cases as well as criminal caseswhich relate to acts or omissions inconnection with their official duties andfunctions and found guilty and/or metedpenalties, subject to conditions stipulated initem 3.9.6.3.6 hereof.


3.9.6.3.1 Payment of the YES

3.9.6.3.1.1 Government personnel whohave rendered at least a total of4 months service includingleaves of absence with pay fromJanuary 1 to October 31 of aparticular year, and who are inthe service as of October 31 ofthe same year, shall be entitledto the full YES based on the

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basic monthly salaries as ofOctober 31.

3.9.6.3.1.2 One-half (112) of the YEBs maybe paid to governmentpersonnel not earlier than May 1and not later than May 31 of aparticular year, based on thebasic monthly salaries as ofApril 30, provided that theyhave rendered at least 4 monthsof service including leaves ofabsence with pay from January1 to April 30 of the same year,regardless of whether or notthey will still be in the service asof October 31 of the same year.

3.9.6.3.1.3 The remaining half or thebalance of the full YEBs (due tostep increments or promotions)or full YEBs (for those notgranted '12 YEBs in May for lackof service requirement) shall bepaid not earlier than November15 and not later than November30 of each year, provided thatthe conditions stipulated underitem 3.9.6.3.1.1 are satisfied.

3.9.6.3.1.4 Those who have rendered morethan 4 months of service in agiven year and are to retire orare to be separated beforeOctober 31 of the year mayreceive the proportionateshares of the remainingbalances of their cash gifts inaddition to their V2 YEBs, basedon the following scheme, to bepaid within the month ofretirement/separation of theemployees concerned:

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IIIIIIIIII't.

IIIIIIIIII


Month of Retirement/ Percentage CorrespondingSeparation of P5.000 Amountfrom the Service

Mav 0% P 0June 20% 500Julv 40% LOOOAuoust 60% 1500Seotember 80% 2000October 100% 2.500

3.9.6.3.1.5 Government personnel whohave rendered less than 4months of service as of October31 of the same year shall beentitled solely to the cash giftpro-rated as follows:

Length ofService Percentage of CorrespondingP5 000 Amount

3 months but less than 4 40% P2,000months2 months but less than 3 30% 1,500months1month but less than 2 months 20% 1000Less than 1 month 10% 500

3.9.6.3.2 Personnel on Part-Time Service

Provided that the conditions stipulated in item3.9.6.3.1.1 are satisfied, the YEBs foremployees on part-time service are asfollows;

3.9.6.3.2.1 Those who are employed onpart-time bases are entitled tothe YEBs corresponding to theirbasic monthly salaries and tothe proportionate amounts oftheir cash gifts.

3.9.6.3.2.2 Those who render part-timeservices in 2 or more differentagencies shall be entitled to theYEBs corresponding to each oftheir total basic monthly salaries

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provided that each of their totalcash gifts shall not exceedP5,OOO.

3.9.6.3.3 Personnel on Full-Time or Part-Time Detail

The YEBs of government personnel on fulltime or part-time detail with other agenciesshall be paid by their respective motheragencies.

3.9.6.3.4 Transferred Personnel

The YEBs of government personnel whotransferred from one agency to another shallbe granted by the new offices. If they weregranted their 112 YEBs in their former offices,only the remaining balances of their YEBsshall be paid by their new offices.Certifications from the former offices of theavailment of the V2 YEBs are necessary.

3.9.6.3.5 Personnel Charged with Administrative Cases

3.9.6.3.5.1 Government personnel formallycharged administrative and/orcriminal cases and whose casesare still pending for resolutionshall be entitled to the YEBsuntil found guilty and metedpenalties.

3.9.6.3.5.2 Those found guilty shall not beentitled to the YEBs in the yearthe decisions were handeddown. If the penalties metedout are only reprimands, suchpenalties should not be madethe bases of disqualification toreceive the YEBs.

3.9.6.3.s.3 Those found guilty and later onexonerated by competentauthorities upon appeal of thecases shall be entitled to theback YEBs unless decidedotherwise by said authorities.

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III


3.9.6.3.6 "Barangay" Officials

3.9.6.3.6.1 "Barangay" officials under item3.9.6.1.2 hereof shall beentitled only to cash gifts ofP5,000 each, provided theconditions stipulated in item3.9.6.3.1.1 are satisfied.

3.9.6.3.6.2 One-half (V2) of the cash giftmay be paid to each of themnot earlier than May 1 and notlater than May 31 of a particularyear, provided that theconditions stipulated in item3.9.6.3.1.2 are satisfied.

3.9.6.3.6.3 The remaining half of the cashgifts shall be paid to each ofthem not earlier than November15 and not later than November30 of each year, provlded thatthey are still in the service as ofOctober 31.

3.9.6.3.6.4 Those who have rendered more·than 4 months of service in agiven year and are to beseparated before October 31 ofthe year may each receive theremaining balance of the cashgift in addition to V2 of the cashgift, based on the scheme initem 3.9.6.3.1.4, to be paidwithin the month of separationof the barangay officialsconcerned.

3.9.6.3.7 Prohibition Against Payment of AdditionalBonuses

Agencies are prohibited from grantingadditional bonuses in any form other than theYEB.

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3.9.6.4.1 For NGAs including SUCs, the amounts shallbe charged against the appropriations for thepurpose in the annual GAA. Deficiencies inappropriations shall be charged againstavailable savings of agencies. The YEBs forcasual and contractual personnel shall becharged against their respective lump-sumappropriations.



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3.9.7 Productivity Incentive Benefit

The Productivity Incentive Benefit (PIB) is a cash awardauthorized under Administrative Order (AO) No. 161, datedDecember 6, 1994, to recognize individual personnel productivityand performance which contributed to attainment of agency goalsand targets. Performance includes conduct and behavior in thedischarge of the duties of a public office.

3.9.7.1 Coverage

3.9.7.1.1 Appointive personnel of NGAs including SUCs,GOCCs, GFIs and LGUs on permanent ortemporary status; and

3.9.7.1.2 Those issued casual and contractualappointments, even if their services havebeen terminated effective December 31 ofthe year for which the PIBs are granted

3.9.7.2 Not Covered

3.9.7.2.1 Those who were suspended eitherpreventively or as a penalty as a result of anadministrative charge within the year forwhich PIBs are granted, regardless of theduration of the suspension;

3.9.7.2.2 Those who were dismissed within the year forwhich PIBs are granted;

3.9.7.2.3 Those who have been absent without officialleave within the year for which PIBs aregranted;

3.9.7.2.4 Those hired not as part of the organicmanpower of agencies but as consultants,experts, student laborers, apprentices,laborers of contracted projects ("pakyaw"),those paid on piecework bases, and otherssimilarly situated;

3.9.7.2.5 Elective national government officials andlocal government officials down to themunicipal level in the absence of an objectivesystem of evaluating their individual

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productivity and performance, unless AO No.161 is amended; and

3.9.7.2.6 Elective and appointive barangay personnelpaid honoraria


3.9.7.3.1 Basis of Grantof PIB

3.9.7.3.1.1 The grant of the PIB shall bebased on individual personnelproductivity and performance asevaluated and determined bythe agency authoritiesconcerned in accordance withthe policies and standards setby the Civil Service Commission.

3.9.7.3.1.2 To be entitled to PIBs,government personnel shallhave at least satisfactoryperformance ratings for the 2semesters during the year forwhich PIBs are granted andshall have contributed to theproductivity of the office.

3.9.7.3.1.3 The minimum appraisal periodshall be at least 90 days or 3months. No appraisal periodshall be longer than 1 year.Should there be only oneperformance rating, it shall beunderstood to apply for the 2semesters or 1 year covered bythe rated performance.

3.9.7.3.2 Amount of PISs

3.9.7.3.2.1 The amount of PISs to begranted to deserving personnelin agencies may vary perindividual, depending on thelatter's productivity andperformance appraisal. Agency

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111111111I••I1I,111111I

3.9.7.3.5 PIBs for Other Personnel

3.9.7.3.4 PIBs for Part-Time Personnel

3.9.7.3.3 PIBs for Transferred Personnel

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The total cost of the PIBsgranted shall in no case exceedthe average of P2,OOO per filledposition. This should not beconstrued to mean asprescribing an across-the-boardgrant of incentive.


heads shall establish theinternal gUidelines for the grantthereof.

The PIBs for personnel employed on parttime bases, whether employed on permanent,temporary or contractual status, shall beequivalent to V2 of the full amount receivedby full-time personnel with the sameproductiVity and performance appraisals.

Cases concerning the PIBs of personnel whowere newly-hired, retired, on leave ofabsence With or without pay, or on authorizedattendance at a training course/scholarshipgrant or any other similar activity shall bereferred to the Civil Service Commission forresolution. Other cases not covered by this

3.9.7.3.3.2 The PIBs of those whotransferred after December 31of the year for which the PIBsare granted shall be paid by theformer agencies.

3.9.7.3.3.1 The PIBs for personnel whotransferred to other governmentagencies on or before the endof the calendar year for whichthe PIBs are granted shall bepaid by the new agencies.

3.9.7.3.2.2

/!

/~



Manual shall be referred to the DSM forproper study and recommendation to theOffice of the President.

3.9.7.3.6 Subject to the conditions stipulated in item3.9.7.3.1.2 hereof,

• Personnel who were preventivelysuspended but later exonerated of thecharges filed against them shall beentitled to PISs.

• If the penalties are only reprimands, thepersonnel may be entitled to PISs.


3.9.7.4.1 For NGAs including SUCs, the PISs forpersonnel occupying regular positions shall becharged against the appropriations for thepurpose in the annual GAA. The PISs forcasual and contractual personnel shall becharged against their respective lump-sumappropriations.

3.9.7.4.2 For GOCCs and GFIs, the amounts shall becharged against their respective corporatefunds.


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3.9.8 Overtime Pay

Government employees are required to render 40 hours of workin a week, subject to the work schedule adopted by the agenciesconcerned. Through adequate planning of work activities,overtime work could be avoided. Hence, overtime work shouldnot be resorted to in the performance of regular work, except incases when unforeseen events and emergency situations willresult in any of the following:

• Cause financial loss to the government or its instrumentalities;

• Embarrass the government due to its inability to meet iscommitments; or

• Negate the purposes for which the work or activity wasconceived.

Should the need to render overtime services become verynecessary, overtime pay may be paid pursuant to Section 63,Chapter 7, Book VI of Executive Order No. 292 (AdministrativeCode of 1987), dated July 25, 1987, as implemented by BudgetCircular No. 10, dated March 29, 1996.

3.9.8.1 Coverage

3.9.8.1.1 Incumbents of positions of chiefs of divisionand below under permanent, temporary orcasual status, and contractual personnelwhose employments are in the nature ofregular employees; and

3.9.8.1.2 Incumbents of positions of chiefs of divisionand below who are designated to positionshigher than chiefs of division

3.9.8.2 Not Covered

3.9.8.2.1 Those occupying the following positions:

• Department Secretaries;

• Department Undersecretaries;

• Department Assistant Secretaries;

• Bureau Directors and Regional Directors

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• Assistant Bureau Directors and AssistantRegional Directors; and

• Department Service Chiefs and AssistantDepartment Service Chiefs

3.9.8.2.2 Incumbents of positions of equivalentcategory as those above-mentioned in SUCs,GOCCs, GFIs and LGUs;

3.9.8.2.3 Incumbents of intermediate positions to theabove enumerated positions in the NGAs,SUCs, GOCCs, GFIs and LGUs;

3.9.8.2.4 Elective officials; and

3.9.8.2.5 Other appointive officials whose equivalentranks are higher than chiefs of division


3.9.8.3.1 Overtime services shall include:

• Those rendered beyond eight (8) workhours of regular work days;

• Those rendered on rest days, such asSaturdays and Sundays; and

• Those rendered on holidays or nonworking days.

3.9.8.3.2 Personnel who rendered overtime servicesshall be granted overtime pay by the hourwhich shall be based on his/her actual hourlyrate derived as follows:

Actual HourlyRate (HR) = Actual Salary/Month

(22 Days/Month) (8 Hours/Day)

3-44

I

••I

••IIII•

•I:.

IIIIIII

IIIIIIIII

".,IIIIII

IIII


3,9,8.3.3 Overtime pay shall be computed as follows:

• For ordinary work days: Plus 25% of thehourly rate (0.25 x HR)

Overtime Pay = 1.25 x HR x Number ofHours of Overtime Services Rendered

• For rest days, holidays and non-workdays: Plus 50% of the hourly rate (0.50x HR)

Overtime Pay = 1.50 x HR x Number of Hoursof Overtime Services Rendered

3.9.8.3.4 The total overtime pay of an employee for theyear shall not exceed 50% of his/her annualbasic salary.


3.9.8.4.1 For NGAs including sues, the overtime payshall be charged against:

3.9.8.4.1.1 The amounts specificallyappropriated for the purpose inagency budgets; and/or

3.9.8.4.1.2 Savings from releasedallotments for current operatingexpenditures, provided that:

• All mandatory expenses asauthorized by law have beenpaid; and

• Total overtime paymentsmade in a given calendaryear shall not exceed 5% ofthe total salaries ofauthorized positions of theagency.

Such savings may be usedwithout need for prior authorityfrom the DBM, provided that the

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aforestated conditions are fullysatisfied.

3.9.8.4.2 For GOCCs, and GFIs, the amounts shall becharged against their respective corporatefunds.

3,9.8.4.3 For LGUs, the amounts shall be chargedagainst their respective local governmentfunds.

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111111111I'•111111I1I1


3.9.9 Compensatory Time-Off

Section 1 (d) of Administrative Order No. 103 (Directing theContinued Adoption of Austerity Measures in the Government)dated August 31, 2004, provides for the adoption of a schemethat will allow employees to be compensated through time/daysoff in lieu of overtime pay. Thus, Civil Service Commission andDBM Joint Circular No.2, s. 2004, was issued to implement saidprovision.

Said Joint Circular refers to the Compensatory time-Off (CTO) asthe number of hours or days an employee is excused fromreporting for work with full pay and benefits. It is a non-monetarybenefit provided to an employee in lieu of overtime pay.

3.9.9.1 Coverage

3.9.9.1.1 Incumbents of positions of chiefs of divisionand below under permanent, temporary orcasual status, and contractual personnelwhose employments are in the nature ofregular employees

3.9.9.1.2 Incumbents of positions of chiefs of divisionand below who are designated to positionshigher than chiefs of division

3.9.9.2 Not Covered

3.9.9.2.1 Those occupying positions whose equivalentranks are higher than chiefs of division;

3.9.9.2.2 Elective officials; and

3.9.9.2.3 Military and uniformed personnel

3.9.9.3 Guidelines

3.9.9.3.1 Overtime services which may becompensated through ero as may beauthorized by heads of agencies for thefollowing activities:

• completion of infrastructure and otherprojects with set deadlines when due tounforeseen events the deadlines cannot

3-47


be met without resorting to overtimework;

• relief, rehabilitation, reconstruction andother related work or services duringcalamities and disasters;

• work related to school graduation/registration where the additional workcannot be handled by existing personnelduring regular work hours;

• work involving the preparation for andadministration of governmentexaminations, including the promptcorrection and release of results thereofwhere existing personnel are not adequateto handle such work during regular workhours;

• seasonal work such as budget preparationand rendition of annual reports to meetscheduled deadlines;

• preparation of specialjfinancialjaccountability reports requiredoccasionally by central monitoringagencies like the Congress of thePhilippines, Office of the President,Commission on Audit, DBM, and NationalEconomic and DevelopmentAuthority;

• the provision of essential public servicesduring emergency situations, such aspower and energy, water, distribution andcontrol of basic staples, communicationand transportation, medical and healthservices, peace and order, and security;

• implementation of specialprograms/projects embodied inPresidential directives and authorizationswith specific dates of completion;

• legal services to facilitate the dissolutionof cases/resolutions/ decisions;

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• services rendered by drivers and otherimmediate staff of officials when requiredto keep the same working hours as theirsuperiors; and

• such other activities as may bedetermined by the head of agency.

3.9.9.3.2 Computation of Compensatory OvertimeCredit

As a result of services rendered beyondregular work hours, and/or those rendered onSaturdays, Sundays, holidays or scheduleddays off without the benefit of overtime pay,an employee earns accrued number of hoursworked. These are collectively referred to ascompensatory overtime credit (COC).

The COC is expressed in number of hours andcomputed as follows:

3.9.9.3.2.1 For overtime services renderedon weekdays or scheduled workdays:

COC =Number of Hours of Overtime Services x 1.0

The 1.0 multiplier is used sinceovertime services duringweekdays or scheduled workdays are considered as mereextension of regular work hours.The employees renderingovertime services are notexpected to incur additionalexpenses.

3.9.9.3.2.2 For overtime services renderedon weekends, holidays orscheduled days off:

COC = Number of Hours of Overtime Services x 1.5

The 1.5 multiplier is used sincethe employees who renderovertime services on weekends,

3-49


holidays or scheduled days offincur incidental expenses fortransportation and meals.

3.9.9.3.3 Accrual and Use of CDCs

3.9.9.3.3.1 Employees may accrue notmore than 40 hours of CDC in amonth. In no instance,however, shall the total CDCexceed 120 hours at any giventime. CDC in excess of the limitshall be forfeited. Thesemeasures are intended toensure judicious use of regularwork hours and to efficientlybalance agency manpower withrespect to the availment of thecro.

3.9.9.3.3.2 The CDC should be used astime-off within the year they areearned until the immediatelysucceeding year. Thereafter,any unutilized CDCs are deemedforfeited.

3.9.9.3.3.3 The CDCs shall be considered·asofficial time for the followingpurposes:

3.9.9.3.3.3.1 compliance withcompensationrules relative tothe entitlement toPERA, AdditionalCompensation,year-end benefits,and other benefitsreceived onregular bases; and

3.9.9.3.3.3.2 computation ofservice hours forentitlement to sickand vacation leavecredits, and step

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increment due tolength of service.

3.9.9.3.3.4 Limitation on the Use of CDCs

3.9.9.3.3.4.1 The CDCs cannotbe used to offsetundertlme/s ortardiness incurredby the employeeduring regularwork days.

3.9.9.3.3.4.2 The COCs cannotbe converted tocash, hence, arenon-commutative.

3.9.9.3.3.4.3 The COCs cannotbe added to theregular leavecredits of theemployee. Hence,it is not part of theaccumulated leavecredits of theemployee.

3.9.9.3.3.5 Effect on Personnel Movement

3.9.9.3.3.5.1 In cases ofresignation,retirement, orseparation fromthe service, theunutilized COCsare deemedforfeited.

3.9.9.3.3.5.2 In cases of detail,secondment ortransfer to anotheragency, the CDesearned in oneagency cannot betransferred toanother agency,

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nor could theemployees receivethe monetaryequivalentsthereof.

3.9.9.3.3.5.3 In cases ofpromotion, exceptwhen promoted topositions notqualified to receiveovertime pay, theemployees shallretain theiraccrued CDCs.

3.9.9.3.3.6 Issuance of Certificate of CDCEarned

An employee who has earnedCDC shall be granted aCertificate of CDC Earned(Annex C) duly approved andsigned by the agency head. Thecertificate shall indicate theemployee's number of hours ofearned CDC in a month. Thecertificate should be issued atthe end of each month.

3.9.9.3.3.7 Availment of cro

3.9.9.3.3.7.1 To ease trackingof CDes andsimplify erDavailment process,the Cl'O may beavailed of in blocksof 4 or 8 hours.Agencies adoptingalternative workschedules shouldmake paralleladjustments in theavailment blocks,

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tantamount toeither a half or fullday leave fromwork.

3.9.9.3.3.7.2 The employee mayuse the Cl'Ocontinuously up toa maximum of 5consecutive daysper singleavailment, or onstaggered basiswithin the year.

3.9.9.3.3.7.3 The employeemust first obtainapproval from theagency head orauthorized officialregarding theschedule ofavailment of Cl'O.The managementshallaccommodate, tothe extentpracticable, allapplications foravailment of erGat the timerequested by theemployee. In theexigency of theservice, however,the schedule maybe recalled andsubsequently rescheduled withinthe year by theagency head orauthorized official.

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I

II

employeeovertime

asthe

3.9.9.3.3.8.2 Therendersservicesstipulated inoffice order.

3.9.9.3.3.8.3 The AdministrativeOfficer concernedprepares asummary ofovertime servicesrendered in amonth, andcomputes theequivalent COC,for the purpose ofthe issuance of theCOC Certificate.

The following procedure shall beobserved in the rendition ofovertime services and availmentofCTO:

3.9.9.3.3.8.1 The agency heador authorizedofficial issues anoffice orderauthorizing therendition ofovertime servicesand indicating thetasks to becompleted and theexpected time ofcompletion.

3.9.9.3.3.8.4 The agency heador authorizedofficial issues theCertificate of COC,specifying thenumber of hoursof COC earned in amonth.

3.9.9.3.3.8 Procedure


111111111I-•I1III111II


3.9.9.3.3.8.5 The employeerequests approvalfrom the agencyhead or authorizedofficial on theschedule of era.

3.9.9.3.3.8.6 The employeeavails of the era.

3-SS

IManual on Position Classification and Compensation

Head of Office

(number ofhrs.)

_________ of Compensatory Overtime Credits.

IIIIII

Front I

Annex C

IICertificate of cac Earned

IIThis certificate entitles Mr./Ms. 10

Date Issued: _

Valid Until:

No. of Hours of EarnedCOCsiBeginning Balance

Date ofCTO Used COC Remaining COC Remarks

II•IIII

Approved by:

Head of Office

Date

Claimed:

HRMO

Date

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3.9.10.2 Not Covered

3.9.10Per Diem

andNGAs,

3.9.10.1.2 Chairpersons and members of the Board ofRegents(Trustees of sues

3.9.10.2.4 Members of local regulatory boards, quasijudicial bodies and similar bodies whose perdiem and the rules and regulations on thegrant thereof are included in Chapter 9 ofthis Manual.

3.9.10.2.3 Chairpersons, vice-chairpersons andmembers of collegial bodies who are paidhonoraria pursuant to existing laws andimplementing rules and regulations; and

3.9.10.2.2 Appointed chairpersons, vice-chairpersonsand members of collegial bodies whoreceive salaries and other compensation;

3.9.10.2.1 Department Secretaries, DepartmentUndersecretaries and Department AssistantSecretaries occupying ex-officio positions ingoverning boards, commissions,committees, councils and similar bodies, inview of the Supreme Court rulinq in thecase, Civil Liberties Union vs. ExecutiveSecretary (G.R. No. 83896) dated February22, 1991;

3.9.10.1.1 Chairpersons, vice-chairpersonsmembers of collegial bodies inGOCCs and GAs; and

3.9.10.1 Coverage

The gUidelines on per diems granted to members of collegialbodies and members of the Board of Trustees of State Universitiesand Colleges (SUCS) are provided under Budget Circular (BC) No.2003-6, dated September 29, 2003.

Per diem is a compensation granted to a chairperson, vicechairperson or member of a collegial body created by law forattendance in collegial meetings with quorum.

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3.9.10.3.1 Per diems of members of collegial bodies

3.9.10.3.1.1 The chairpersons andmembers of collegial bodiesshall be entitled to per diemsat rates not exceeding thefollowing:

Chairpersons Amount equivalent to 25%of the monthlyrepresentation andtransportation allowances(RATA) of the chiefoperating officer of thecollegial body for everymeeting actually attendedbut not to exceed 4 paidmeetings in a month

Members Amount equivalent to 25%of the monthly RATA of thesecond ranking official of thecollegial body for everymeeting actually attendedbut not to exceed 4 paidmeetinos in a month

3.9.10.3.2 Per diems of the members of Board ofRegentsfTrustees of sues

3.9.10.3.2.1 Chairpersons and members ofthe Boards of Regents/Trustees of SUCs shall beentitled to per diems at ratesnot exceeding the following:

Chairpersons Amount equivalent to 25%of the monthly RATA of thesue President for everymeeting actually attendedbut not to exceed 4 paidmeetings in a month

Members Amount equivalent to 25%of the monthly RATA of thesue Vice- President foreverY meetina actuallv

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attended but not to exceed 4paid meetinas in a month

3.9.10.3.3 Duly authorized representatives of ex-officioand other members of collegial bodies andBoards of Reqents/Trustees of SUCs whoactually attended board meetings shall beentitled to per diems not exceeding therates provided under item 3.9.10.3.1 and3.9.10.3.2 hereof, respectively, In no case,however, shall a member and his/herrepresentative be each entitled to per diemfor the same meeting notwithstanding thatthey both attended said meeting.

3.9.10.3.4 Higher per diem rates and/or other benefits,whether commutable or reimbursable, incash or in kind, shall not be allowed unlessspecifically authorized by law or by thePresident.

3.9.10.3.5 Board Secretaries who are already paidsalaries for, among other functions,attendance in the meetings of the boardshall not be entitled to per diem.

3.9.10A Funding Source

3.9.10.4.1 For NGAs, the per diem shall be chargedagainst the appropriations for the purposein the annual GAA. Deficiencies inappropriations shall be charged againstagency savings.

3.9.10.4.2 For SUCs, the per diem shall be chargedagainst the appropriations for the purposein the annual GAA or against their incomes.

3.9.10.4.3 For GOCCs and GAs, the per diem shall becharged against their respective corporatefunds.

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3.9.11 Honoraria

Honoraria are token payments in recognition of incidental servicesrendered.

Since FY 2003, the grant of honoraria is limited only to thegovernment personnel enumerated under Section 42, GeneralProvisions, RA No. 9206, the FY 2003 GAA.

3.9.11.1 Coverage

The grant of honoraria shall apply to the followingpersonnel in all NGAs, GOCCs, GAs, and LGUs:

3.9.11.1.1 Teaching personnel of the Department ofEducation, Commission on HigherEducation, Technical Education and SkillsDevelopment Authority, SUCs and othereducational institutions engaged in actualclassroom teaching whose teaching loadsare outside of their regular office hoursand/or in excess of their regular loads;

3.9.11.1.2 Those who act as lecturers, resourcepersons, coordinators and facilitators inseminars, training programs and othersimilar activities in training institutions,including those conducted by entitles fortheir officials and employees; and

3.9.11.1.3 Chairpersons and members of commissions,boards, councils and other similar entitieswhich are hereinafter referred to ascollegial bodies including the personnelthereof, who are neither paid salaries norper diems but compensated in the form ofhonoraria as provided by law, rules andregulations.

3.9.11.1.4 Those who are involved in science andtechnological activities who receive servicesbeyond their regular work load.

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3.9.11.2.1 Chairpersons and Members of the variousProfessional Regulatory Boards of theProfessional Regulation Commission (PRC)who are compensated in the form ofhonoraria pursuant to DBM and PRC JointCircular No. 2002-1, dated March 11, 2002;

3.9.11.2.2 Agency personnel who are designated asmembers of agency committees, boards,councils, or assigned to agency or interagency special projects; and

3.9.11.2.3 Personnel granted honoraria by LGUspursuant to the pertinent provisions of RANo. 7160 (Local Government Code of 1991).

3.9.11.3 Definition of Terms

3.9.11.3.1 Coordinator - any government personnelwho directs, supervises and/or participatesin the organization, coordination andconduct of seminars, training programs andother similar activities

3.9.11.3.2 Facilitator - any government personnel whoextends technical assistance to facilitate theconduct of seminars, training programs andsimilar activities by providing instructionalmaterials such as charts, handouts,projectors, multi-media equipment andother devices, and to empower theparticipants to solve issues by bringing outquality of thinking and structuring thedynamic flow of discussions.

3.9.11.3.3 Lecturer/Resource Person - any personwho serves as lecturer/speaker inseminars, training programs and othersimilar activities

3.9.11.3.4 Training Institutions - refer to thoseagencies mandated by existing laws toconduct training programs

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3.9.11.4.1 Teaching personnel mentioned under item3.9.11.1.1 hereof may be paid honoraria inaccordance with the formula in Chapters 6and 7 of this Manual.

3.9.11.4.2 For lecturers and resource persons:

Regardless of the regular positions of thelecturer/resource person, he/she may bepaid the hourly rate of a Professor VIposition at SG-29 for actual lecture hours,including reasonable time for preparation ofmaterials not exceeding 10 hours in all.

3.9.11.4.3 Government personnel who serve ascoordinators, facilitators, lecturers orresource persons in seminars, trainingprograms and similar activities conducted bytheir own agencies shall not be entitled tohonoraria. Such services are in connectionwith their agencies' objectives or obligationsto disseminate instructions, to clarify issuesand concerns and to interact with clientsand/or implementors of agency mandates.These activities are considered part of theregular functions of agencies, hence, alsoform part of the related work of thoseassigned to perform said activities.

3.9.11.4.4 Agency personnel who are members ofagency committees, boards, councils, orspecial projects are not entitled to honorariaas their duties and responsibilities thereinmay be considered pertinent to or withinthe scope of their regular duties andresponsibilities in their agencies for whichthey are paid salaries.

3.9.11.4.5 The chairpersons, members and personnellisted under item 3.9.11.1.3 hereof may bepaid honoraria at the following rates:

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Chairpersons: 25% of the monthly representation and transportationallowances (RATA) of the chief operating officer of thecollegial body for every meeting actually attended butnot to exceed 4 paid meetings a month

Members: 25% of the monthly RATA of the second ranking officialof the collegial body for every meeting actually attendedbut not to exceed 4 paid meetings a month

Personnel: The hourly rate of equivalent positions in the nationalgovernment as determined by the DBM but not toexceed 8 hours a day or 40 hours a week.

They shall not be allowed other benefits,whether in cash or in kind, except whenspecifically provided by law. In case theirpresent honoraria are higher than thehonoraria authorized herein, they shallcontinue to receive the same until thetermination of their appointments.

3.9.11.4.6 Department Secretaries, DepartmentUndersecretaries and Department AssistantSecretaries who are ex-officio members ofcollegial bodies shall not be paid thehonoraria authorized therein pursuant to theSupreme Court ruling in G.R. No. 83896dated February 22, 1991.

3.9.11.4.7 GOCCs and GAs exempted from thecoverage of RA No. 6758 and LGUs areencouraged to adopt the foregoingprovisions on honoraria as far aspracticable.

3.9.11.4.8 Honoraria shall not be paid to personneloutside of those covered herein exceptwhen specifically provided by law.


3.9.11.5.1 For NGAs including SUCs, the amounts forhonoraria shall be charged against theappropriations for the purpose in the annualGAA.

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3.9.12Honoraria for Government Personnel Involved inGovernment Procurement

Honoraria are granted to government personnel involved ingovernment procurement pursuant to Section 15, RA No. 9184(Government Procurement Reform Act), and the ImplementingRules and Regulations (IRR), Part A, for fully domestically-fundedprocurement projects, which took effect on October 8, 2003.

Budget Circular (BC) No. 2004-5 dated March 23, 2004,superseded by BC No. 2004-5A dated October 7, 2005, providethe guidelines on the grant of honoraria to said governmentpersonnel.

3.9.12.1 Coverage

Government personnel in NGAs including SUCs, GOCCs,GAs and LGUs involved in procurement.

3.9.12.2 Guidelines

3.9.12.2.1 The chairs and members of the Bids andAwards Committee (BAC) and the TechnicalWorking Group (TWG) may be paidhonoraria only for successfully completedprocurement projects. In accordance withSection 7 of the Implementing Rules andRegulations Part A (IRR-A) of RA No. 9184,a procurement project refers to the entireproject identified, described, detailed,scheduled and budgeted for in the ProjectProcurement Management Plan prepared bythe agency.

A procurement project shall be consideredsuccessfully completed once the contracthas been awarded to the winning bidder.

3.9.12.2.2 The payment of honoraria shall be limited toprocurement that involves competitivebidding. Competitive bidding activities arepresent only in:

• Open and competitive bidding;• Limited source bidding;

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• Negotiated procurement under Section53 (a) of the IRR-A, where there hasbeen failure of bidding for the secondtime; and

• Negotiated procurement under Section53 (b) of the IRR-A following theprocedures under Section 54.2 (b)thereof, whereby the procuring entityshall draw up a list of at least (3)suppliers or contractors who will beinvited to submit bids.

Conversely, honoraria will not be paid whenprocurement is thru:

• Direct contracting;• Repeat order;• Shopping;• Negotiated procurement under Section

53 (b) of the IRR-A following theprocedures under Section 54.2 (d)thereof, whereby the procuring entitydirectly negotiates with previoussupplier, contractor or consultant; orwhen the project is undertaken byadministration or in high security riskareas, through the Armed Forces of thePhilippines, in case of infrastructureprojects; and

• Negotiated procurement under Section53 (c) to (g) of the IRR-A.

3.9.12.2.3 The honoraria of each person shall notexceed the rates : indicated below percompleted procurement project:

MaximumHonorarium RatePer Procurement

ProjectBAC Chair P 3 000BAC Members 2500TWG Chair and 2,000Members

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3.9.12.2.4 The average amount of honoraria permonth over one year shall not exceed 25%of the basic monthly salary. The honoraria,however, shall be paid only upon thesuccessful completion of each procurement.

3.9.12.2.5 To be entitled to honoraria, personnelshould be duly assigned as chair or memberof the BAC or the TWG by the head of thedepartment/agency concerned.

3.9.12.2.6 The members of the BAC Secretariat whoare performing the attendant functions inaddition to their regular duties in other nonprocurement units of the agency maylikewise be paid honoraria at the same rateas the TWG Chair and Members, subject tothe same regulations.

The members of the BAC Secretariat whosepositions are in the Procurement Unit of theagency shall not be entitled to honoraria.The payment of overtime services may beallowed, subject to existinq policy on thematter.

3.9.12.2.7 Heads of government entities are prohibitedfrom paying honoraria to personnel involvedin procurement activities outside of thosecovered herein.

3.9.12.2.8 By reason of jurisprudence, a DepartmentUndersecretary or Department AssistantSecretary who concurrently serves in theBAC, in whatever capacity, shall not beentitled to honoraria.

3.9.12.2.9 In lieu of honoraria, the payment ofovertime services may be allowed for theadministrative staff, such as clerks,messengers and drivers supporting the BAC,the TWG and the Secretariat, forprocurement activities rendered in excess ofofficial working hours. The payment ofovertime services shall be in accordancewith the existing policy on the matter.

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3.9.12.2.lOThose who are receiving honoraria for theirparticipation in procurement activities shallno longer be entitled to overtime pay forprocurement-related services rendered inexcess of official working hours.


3.9.12.3.1 The amount necessary for the payment ofthe honoraria and overtime pay shall besourced only from the following:

• Proceeds from sale of bid documents;• Fees from contractor/supplier registry;• Fees charged for copies of minutes of

bid openings, BAC resolutions and otherBAC documents;

• Protest fees;• liquidated damages; and• Proceeds from bid/performance security

forfeiture.

3.9.12.3.2 Pursuant to the DOF-DBM-COA PermanentCommittee Resolution No. 2005-2 of June2005, all agencies are authorized to treatthe collections from the sources identified initem 3.9.12.3.1 hereof as trust receipts tobe used exclusively for the payment ofhonoraria and overtime pay. Agencies mayutilize up to 100% of the said collections forthe payment of honoraria and overtime paysubject to the gUidelines in item 3.9.12.2.Any excess in the amount collected shall beremitted by NGAs to the Bureau of theTreasury. In the case of GOCCs and LGUs,the same shall form part of their corporateor local government funds, respectively.

3.9.12.3.3 The total amount of honoraria and overtimepay to be paid for procurement-relatedactivities shall not exceed the saidcollections.

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3.9.12.3.4 In case of deficiency in collections from thesources identified in item 3.9.12.3.1, theamount of honoraria and overtime pay shallbe adjusted proportionately for all thoseentitled thereto.

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3.9.13 Night-Shift Differential Pay

Night-Shift Differential Pay is a compensation premium granted togovernment personnel whose regular work hours fall wholly orpartly within 6:00 PM to 6:00 AM of the following day.

Its grant was standardized and rationalized pursuant to BudgetCircular No.8, s. 1995.

3.9.13.1Coverage

All government employees regardless of status ofemployment, whether permanent, casual, temporaryand contractual, whose regular schedule of work fallpartly or wholly between 6:00 PM and 6:00 AM of thefollowing day


3.9.13.2.1 Public Health Workers (PHWs);

3.9.13.2.2 Government personnel whose schedules ofoffice hours or work shifts fall between 6:00AM to 6:00 PM; and

3.9.13.2.3 Government personnel whose services arerequired, or are on call 24 hours a day suchas the military personnel of the ArmedForces of the Philippines, uniformedpersonnel under the Department of theInterior and Local Government, andPhilippine Coast Guard under theDepartment of Transportation andCommunications


3.9.13.3.1 The night-shift differential pay shall notexceed 20% of the actual rate of theemployee derived as follows:

Actual Salary/MonthActual Hourly Rate (HR) = -------------------------------------

(22 Days/Month) (8 Hours/Day)

Night-Shift Differential Pay =1.20 x HR x Number of Hours Rendered

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3.9.13.3.2 When the schedule of work hours fall partlywithin 6:00 PM to 6:00 AM, the night-shiftdifferential pay shall be paid only for thehours within 6:00 PM to 6:00 AM of thefollowing day.

3.9.13.3.3 When an employee working in a regularnight-shift falling within the 6:00 PM to 6:00AM period renders services in excess of theregular 8-hour night-shift, the excess hoursshall be compensated through overtimepay, unless payment thereof is suspendedby order of the President, or throughcompensatory time-off.

3.9.13.3.4 To qualify for the night-shift differential pay,the official work hours shall be prescribedby the head of office taking intoconsideration the nature of the services ofthe office concerned and the necessity foran official shift outside the ordinary workhours prescribed by the Civil ServiceCommission, provided that such officialwork hours are observed for a period of atleast 10 work days.

3.9.13.3.5 Payment of night-shift differential pay maybe authorized by the Head of Office withoutthe need of prior approval from the DBM.


3.9.13.4.1 For NGAs including sues, the amounts shallbe charged against the appropriations forthe purpose. Deficiencies in appropriationsshall be charged against agency savinqs,


3.9.13.4.3 For LGUs, the amounts shall be chargedagainst local government funds.

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3.9.14 Hazard Duty Pay

The hazard duty pay (HDP) authorized under Section 54, GeneralProvisions of Republic Act No. 9336 (FY 2005 GeneralAppropriations Act) is a compensation premium granted to eachofficial and employee actually assigned to, and performing dutiesin, strife-torn or embattled areas.

3.9.14.1 Coverage

All government personnel in NGAs, including SUCs,GOCCs, GFls, and LGUs, whether appointive or elective,on full-time or part-time basis, under permanent ortemporary status, personnel with casual and contractualappointments whose salaries/wages are charged to thebudqetary allocation for personal services, and who areactually assigned to and performing their duties andresponsibilities in strife-torn or embattled areas


3.9.14.2.1 Those entitled to HDP or other similarallowances under existing laws, such as themilitary and uniformed personnel, publichealth workers, scientists, engineers,researchers and science and technologypersonnel;

3.9.14.2.2 Those hired through contract of service orjob order basis; and

3.9.14.2.3 Those who are not actually assigned to norperforming their duties and responsibilitiesin strife-torn or embattled areas


3.9.14.3.1 Heads of government agencies may grantHDP to their personnel at the followingrates without the need for approval by theDBM, provided that the following conditionsare met:

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• on vacation, sick or study leave with orwithout pay;

Those who work part-time shall receive halfof the amounts received by full-timepersonnel in the same situation.

P 400500600

MonthlyRates

1 to 7 days8 to 14days

15or more days

Period of Assignmentin Work Days

Government personnel who are assigned tostrife-torn or embattled areas shall nolonger be entitled to receive HDP when theyare under the following instances for one(1) full calendar month or more:

The HDP of personnel detailed in othergovernment agencies which work areas areidentified as strife-torn or embattled shall bepaid by their respective mother agencies.

The periods of entitlement to HDP shall becoterminous with the duration of the actualassignments of the personnel in strife-tornor embattled areas, but in no case theyshall exceed 3 months. Such entitlement toHDP may be renewed as deemed necessaryby the head of agency, subject to items3.9.14.3.1.1 and 3.9.14.3.1.2 above.

3.9.14.3.1.2 The areas of assignmenthave been determined andcertified by the Secretary ofNational Defense or by hisauthorized representative asstrife-torn or embattled areas.

3.9.14.3.1.1 The personnel were actuallyassigned to, and performingtheir duties andresponsibilities in, strife-tornor embattled areas for thefollowing periods in a month:

3.9.14.3.5

3.9.14.3.4

3.9.14.3.3

3.9.14.3.2

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• on terminal leave;

• on maternity leave;

• on summer vacation, such as teachers;

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in training courses/grants/seminars/similar

• on attendancescholarshipactivities; and

3.9.14.4.3 For LGUs, the amounts shall be chargedagainst their respective local governmentfunds, subject to the personal serviceslimitation under Section 325 (a), RA No.7160 (Local Government Code of 1991),and subject further to the enactment of theappropriate Sanggunian ordinances.

• on detail with another agency whichwork areas are not strife-torn orembattled;

3.9.14.4.2 For GOCCs and GFls, the amounts shall becharged against savings from theirrespective corporate funds; and

• on official travel outside of their officialstations.

3.9.14.4.1 For NGAs, including SUCs/ the amountsshall be charged against available savingsfrom released allotments for currentoperating expenditures without need forprior authority from the DBM, provided allauthorized mandatory expenses shall havebeen paid first;

3.9.14.3.6 The government agencies concerned shallsubmit to the respective DBM Budget andManagement Bureaus or Regional Officesnot later than fifteen (15) days after theend of each fiscal year a report on thepersonnel granted HDP by following theformat attached as Annex D.



Department _Bureau/Agency _

Report on Personnel Granted Hazard Duty Pay (HDP)

Pursuant to Budget Circular No. 2005-4FY __

Annex 0

Position Period of Assignment HDP PaidUnique Title and (5) (6) TOlalNameof Item Salary Work

Personnel Number Grade Area Amount

(J) (21 (3) (4) Jan Feb March April May June July Aug Sep Oct Nov Dec Jan Feb March April May June July Aug SeD Oct Nov Dec I7l

Prepared/Certified Correct:

Administrative Officer

Approved:

Agency Head

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3.9.15 Subsistence Allowance

Subsistence Allowance is allowance for meal or sustenance ofgovernment personnel who, by the nature of their duties andresponsibilities, have to make their services available in theirplaces of work even during mealtimes. The grant thereof ispursuant to Section 69, Chapter 7, Book VI of Executive Order No.292 (Administrative Code of 1987).

3.9.15.1 Coverage

3.9.15.1.1 Public Health Workers (PHWs) as definedunder RA No. 7305 (Magna Carta of PublicHealth Workers);

3.9.15.1.2 Marine officers, engineers, and crew ofgovernment vessels, launches, andmotorboats, who take their meals on themess when aboard said vessels, launchesor motorboats;

3.9.15.1.3 Officials and employees who are required torender services within penal institutions,military installations and other similarinstitutions, and who are required to livewithin the premises of said institutions forcontinuous periods that include meal timesso as to make their services available at anyand all times;

3.9.15.1.4 Lightkeepers and other employees in lightstations who are authorized by the head ofagency to receive subsistence allowance;and

3.9.15.1.5 Laborers temporarily fielded to isolated orunsettled areas


3.9.15.2.1 For PHWs

3.9.15.2.1.1 The rate for subsistenceallowance as provided underthe GAA, shall be P30 per dayper employee, or as presently

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enjoyed by them based ontheir respective authorizations.

3.9.15.2.1.2.PHWs are eligible to receivefull subsistence allowance aslong as they render actualduties. Those onvacation/sick leave, with orwithout pay, on specialprivilege leave,maternity/paternity leave, onterminal leave, or on officialtravel are not entitled to thesubsistence allowance.

3.9.15.2.1.3 Higher rates for subsistenceallowance for PHWs may begranted, but not exceedingP50 per day pursuant to therevised Implementing Rulesand Regulations (IRR) of RANo. 7305, provided that theadditional requirement shall betaken from agency savings.

3.9.15.2.2 For Other Personnel

3.9.15.2.2.1 The subsistence allowance formarine officers and crew ofmarine vessels operated bythe government shall not becommutable since it is grantedfor conducting a mess onboard said vessels.

3.9.15.2.2.2 When there is no mess hall orwhen the same is available butinadequate, the subsistenceallowance may be commuted.

3.9.15.2.2.3 The subsistence allowance forlightkeepers and otheremployees in light stationsand of laborers temporarilyfielded to isolated or unsettleddistricts may be commuted, or

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the equivalent may be used tofurnish them with the usualrations.

3.9.15.2.2.4 Personnel who are onmaternity/ paternity leave, onsick or vacation leave with orwithout pay, or on full-time orpart-time detail with anotheragency, or reassigned toanother organizational unit orspecial project of the sameagency, or attending trainingcourse/scholarship grant!seminar, or any other similaractivity, or on official travelare not entitled to subsistenceallowance for the durationthereof.


3.9.15.3.1 For NGAs including SUCs, the amountsshall be charged against the appropriationsfor the purpose in the annual GAA.



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3.9.16 Laundry Allowance

The Laundry Allowance is intended to defray the laundry costincurred for uniforms of specific government personnel pursuantto Section 67, Chapter 7, Book VI of Executive Order No. 292(Administrative Code of 1987).


. 3.9.16.1.1 Public Health Workers (PHWs)

3.9.16.1.1.1 The laundry allowance forPHWs shall be P125 permonth as provided in theannual GAA.

3.9.16.1.1.2 PHWs may be granted higherrates of laundry allowancenot exceeding P150 permonth, regardless of theactual work rendered,pursuant to the RevisedImplementing Rules andRegulations of RA No. 7305,provided that the additionalrequirement shall be takenfrom agency savings.

3.9.16.1.2 The laundry allowance for officials oremployees serving in penal institutions orother similar institutions, who are requiredto wear uniforms during the performance oftheir duties and responsibilities shall be atrates as provided under their respectiveauthorizations.


3.9.16.2.1 For NGAs including SUCS, the amounts shallbe charged against the appropriations forthe purpose in the annual GAA.

3.9.16.2.2 For GOCCs and GFIs, the amounts shall becharged against their respective corporatefunds.

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3.9.17 Free Quarters for Certain Government Officials

Free quarters for government officials refer to the free use ofgovernment-owned or leased place of lodgings which may includetelephone, water and electricity for basic needs.

National Budget Circular No. 456, dated November 11, 1996,provides the guidelines on free quarters for certain governmentofficials to implement the pertinent general provision of theannual GAA.

3.9.17.1 Coverage

Government officials and their equivalents under thefollowing categories, who by virtue of agency policies ofreshuffling or rotation are assigned or transferred toplaces other than those of their domiciles and do notown houses or rooms therein:

Position levels Category

Department Regional Directors ADepartment Assistant Regional Directors A

Bureau Regional Directors B

Assistant Bureau Regional Directors B


3.9.17.2.1 Public Health Workers who are entitled freequarters under RA No. 7305;

3.9.17.2.2 Military personnel under the Armed Forcesof the Philippines and uniformed personnelof the Department of the Interior and LocalGovernment, Philippine Coast Guard underthe Department of Transportation andCommunications, and National Mapping andResource Information Authority under theDepartment of Environment and NaturalResources (DENR) who are entitled toquarters allowances pursuant to existinglaws, rules and regulations;

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3.9.17.2.3 Those who are expressly authorized freequarters under existing laws, rules andregulations; and

3.9.17.2.4 Those who are stationed abroad.


3.9.17.3.1 Heads of agencies may provide freequarters within their office premises to theirofficials without the need for approval bythe DBM.

3.9.17.3.2 Where there is not enough space to be usedas quarters, houses or rooms may be rentedwhich shall serve as quarters at reasonablerates based on the prevailing cost of rentalin the area or locality as determined underChapter 4 of the Manual of Building Servicesand Real Property Management issuedunder Joint DBM, DENR and Department ofPublic Works and Highways Circular No.1,dated September 30, 1989 but not toexceed the rates prescribed below:

Catec orvArea/Locality A B

Special Cities (Manila/ P3,000 P2,500Quezon City

Highly Urbanized Cities/ 2,500 2,000Caoital Centers

Others 2,000 2000

3.9.17.3.2.1 The rental contract shall beentered into by and betweenthe agency concerned and theowner of the dwelling unit;and the rental payment shallbe paid to the latter and notcommuted in favor of theofficial concerned.

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3.9.17.3.2.2 The above rates shall beinclusive of the amounts fortelephone, water and electricbills.

3.9.17.3.3 Those who desire more expensive/extensive quarters other than thoseprovided by their agencies or at theauthorized maximum rental rate, maysecure such preferred quarters, providedthat the difference between the rental costand the amount authorized therefor shall bepaid by the officials concerned.

3.9.17.3.4 The quideilnes for free quarters for certainLGU elected officials are provided in Chapter9 of this Manual.


3.9.17.4.1 For NGAs, the amounts shall be chargedagainst the released allotments formaintenance and other operating expenses.


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3.9.18 Free Quarters Privileges in Hospitals

Free quarters privileges refer to the free use of governmenthospital-owned place of lodging authorized under the pertinentgeneral provision in the annual GAA.

3.9.18.1 Guidelines

3.9.18.1.1 Pursuant to item 7.7.1, Rule XV, RevisedImplementing Rules and Regulations, RANo. 7305, all PHWs who are on tour of dutyand those who, because of unavailablecircumstances are forced to stay inhospitals, sanitaria or health infirmarypremises, shall be entitled to free livingquarters within hospitals, sanitaria orhealth infirmary premises.

3.9.18.1.2 Pursuant to DBM Circular Letter No. 200017, dated September 19, 2000, freequarters may be provided for the Chief ofHospital, Chief of Clinics, HospitalAdministrative Officer and Chief Nurse inview of the nature of their functions whichinvolve round-the-clock supervision of thedifferent activities of the hospital.

3.9.18.1.3 In case the above-mentioned hospitalofficials own houses within the locality orin close proximity to the hospital, said freequarters privilege shall be forfeited andconcerned officials shall instead be allowedreimbursement of light and water bills,pertaining to their personal basicconsumption and not of the entirehousehold, at rates not exceeding theminimum charges for water and electricityprevailing in the locality for residentialusers, as certified by the local electric andwater utilities offices/providers in theparticular areas. Minimum charge refers tothe nominal rate charged by water andelectric companies/cooperatives toresidential users which is the fixed rate forthe first block of cubic meter consumptionfor water or kilowatt for electricity.

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3.9.19 Special Counsel Allowance

The Special Counsel Allowance authorized under the pertinentgeneral provision in the annual GAA is granted to lawyerpersonnel, including those designated to assume the duties of alegal officer and those deputized by the Office of the SolicitorGeneral in the legal staff of departments, bureaus or offices of thenational government to appear in court as special counsel incollaboration with the Solicitor General or prosecutors concerned.

3.9.19.1 Rate of Special Counsel Allowance

The Special Counsel Allowance is granted at PSOO foreach court appearance, but not exceeding P3,OOO permonth.


Savings in agency appropriations/budgets

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3.9.20 Anniversary Bonus

The Anniversary Bonus (AB) is a financial incentive authorizedunder Administrative Order No. 263 dated March 28, 1996, to begranted to government employees on the occasion of theiragencies' milestone years.

3.9.20.1 Coverage

All government personnel whether employed on fulltime or part-time bases, under permanent, temporaryor casual status, elective or appointive, includingcontractual personnel whose employments are in thenature of regular employees who have rendered atleast 1 year of service in the same agencies as of thedate of milestone years and continue to be-employed inthe same government entities as of the occasion oftheir milestone anniversaries


3.9.20.2.1 Those absent without leave as of the dateof the milestone year for which the AB isbeing paid;

3.9.20.2.2 Those who are no longer in the service inthe same government entity as of the dateof the milestone year; and

3.9.20.2.3 Those consultants, experts, laborers ofcontracted projects Cpakyaw"), studentlaborers, apprentices, mail contractors,those paid on piecework bases, and otherssimilarly situated


3.9.20.3.1 The AB shall be paid at P3,OOO perpersonnel, provided that he/she hasrendered at least 1 year of service in thesame agency as of the date of the milestoneyear.

3.9.20.3.2 In case of insufficiency of funds, a lesserbut uniform amount of AB may be paid tothe personnel entitled thereto.

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3.9.20.3.3 A milestone year refers to the 15th

anniversary and to every 5th year thereafter.

3.9.20.3.4 "Government entities" shall refer todepartments, bureaus, offices, commissionsand similar bodies of the nationalgovernment, including GOCCs and GFIs;provided that staff bureaus or entities whichform part of the organizational structure ofdepartments or offices shall be deemedabsorbed by the latter and shall not betreated as separate agencies.

3.9.20.3.5 A frontline bureau or entity created as suchunder a distinct law, thus, deemed as aninstitution in its own right shall beconsidered a distinct and separate agencyfor purposes of the grant of AS,notwithstanding the fact that it had sincebeen organizationally integrated with adepartment or office.

3.9.20.3.6 The counting of milestone years shall startfrom the year the government entity wascreated regardless of whether it wassubsequently renamed or reorganized,provided that its original primary functionshave not substantially changed. Otherwise,the counting of milestone years shall startfrom the date the functions weresubstantially changed.

3.9.20.3.7 The counting of the milestone years ofmerged agencies shall start from the datethey were merged.

3.9.20.3.8 Officials and employees in governmententities attached to or are placed directlyunder a department or department levelentity and which creation are not throughcharters, may be considered as organicpersonnel of the mother department!department level entity, for purposes of thegrant of the AS.

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3.9.20.3.9 The AB shall be granted only duringmilestone years and shall be received by theemployee only once every 5 years,regardless of transfer from one governmententity to another.

3.9.20.3.10Government personnel who were foundguilty of any offense in connection withtheir work during the 5-year intervalbetween milestone years shall not beentitled to the immediately succeeding AB.

3.9.20.3.11The foregoing rules and regulations shallalso apply to LGUs as far as applicable, inaddition to the rules and regulations inChapter 9 of this Manual.


3.9.20.4.1 For NGAs including SUCs, the amounts shallbe solely charged against savings fromreleased allotments for current operatingexpenses, provided that all authorizedmandatory expenses shall have been paidfirst.

3.9.20.4.2 For GOCCs and GFls, the amounts shall becharged against savings from theirrespective corporate funds.


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3.9.21 Collective Negotiation Agreement (CNA) Incentive

The CNA Incentive is a cash incentive in whatever form providedfor in CNAs and supplements thereto, which were grantedpursuant to PSLMC Resolution No, 04, s. 2002 or PSLMCResolution No. 02, s. 2003, or the rationalized cash incentivegranted on or after the effectivity of Budget Circular No. 2006-1dated February 1, 2006, to the government employees concernedwho have contributed either in productivity or cost savings in anagency, in fulfillment of the commitments in the CNAs orsupplements thereto. It excludes such other items that arenegotiable, in cash or in kind, listed under Section 2, Rule XII,PSLMC Resolution No. 02, s. 2004, and non-negotiable concernsspecified in PSLMC Resolution No. 04, s. 2002 and PSLMCResolution No. 02, s. 2003.

3.9.21.1 Coverage

3.9.21.1.1 Rank-and-file employees who are membersof employees' organizations accredited bythe Civil Service Commission (CSC) in NGAs,SUCs, LGUs, and GOCCs/GFIs, whether ornot covered by RA No. 6758 (Compensationand Position Classification Act of 1989).They do not fall under the followingcategories:

3.9.21.1.1.1 Those who performmanagerial functions;

3.9.21.1.1.2 "Coterminous employees" orthose whose entrance andcontinuity in governmentservice are "based on any ofthe followinq: 1) trust andconfidence of the appointingauthority or of the head of theorganizational unit where theformer is assigned; or, 2)duration of the project, or theperiod for which an agency oroffice was created;"lor

1 Section 1, RuleI, Definition ofTenns, PSLMC Resolution No.02, s. 2004.

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3.9.21.1.1.3 "Highly confidentialemployees" or thosewho occupy positions whichrequire "high degree of trustand confidence and closeintimacy with the appointingauthority or immediatesupervisor which ensures freeand open communicationwithout harassment orfreedom from misgivings ofbetrayal of personal trust orconfidential matters of state.'?

3.9.21.2 Policy Guidelines

3.9.21.2.1 The CNA Incentive in the form of cash maybe granted to employees covered by thegrant of the CNA Incentives, if provided forin the CNAs or in the supplements thereto,executed between the representatives ofmanagement and the employees'organization accredited by the CSC as thesole and exclusive negotiating agent for thepurpose of collective negotiations with themanagement of an organizational unit listedin Annex "A" of PSLMC Resolution No. 01, s.2002, and as updated.

3.9.21.2.2 The grant of the CNA Incentive may beextended to employees under items3.9.21.1.1.2 and 3.9.21.1.1.3 hereof whocontributed to agency productivity andimplementation of cost-cutting measuresidentified in the CNAs or supplementsthereto, in line with the equal protectionclause of the 1987 Constitution, providedthey are assessed and have paid thecorresponding agency fees pursuant toPSLMC Resolution No.1, s. 1993.

3.9.21.2.3 Such CNA Incentive shall refer to thoseprovided in CNAs and supplements theretowhich were signed on or after the effectivityof PSLMC Resolution No. 04, s. 2002, and

2 Section I, Rule I, Definition of Terms, PSLMC Resolution No. 02, s. 2004.

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PSLMC Resolution No. 02, s. 2003, orsigned and ratified by a majority of thegeneral membership on or after theeffectivity of PSLMC Resolution No. 02, s.2004, "Approving and Adopting theAmended Rules and Regulations Governingthe Exercise of the Right of GovernmentEmployees to Organize."

3.9.21.2.4 The form of the CNA Incentive shall besimplified and rationalized as follows:

3.9.21.2.4.1 All existing cash incentives inthe CNAs in the form ofallowances and benefits, suchas staple food allowance, ricesubsidy, grocery allowance,inflation allowance, relocationallowance, SONA bonus,bonuses other than the yearend benefit authorized underRA No. 6686, as amended byRA No. 8441, etc., shall beconsolidated into a single cashincentive, and shall bereferred to and collectivelypaid as the CNA Incentive.

3.9.21.2.4.2 Existing cash incentives in theCNAs which are alreadyprovided under existing laws,administrative orders, or withPresidential approval, or underthe csc-approveo Program onAwards and Incentives forService Excellence (PRAISE)established under escMemorandum (MC) No. 01, s.2001/ shall not be part of theCNA Incentive to precludedouble compensation which isprohibited under theConstitution, and as paymentsthereof are subject to separateauthority and pertinentconditions.

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3,9.21.2.4,3 Starting from the effectivity ofBC No. 2006-1, all CNAs andsupplements thereto shall onlyprovide for the CNA Incentiveas the cash incentive.

3.9.21.2.5 The grant of the CNA Incentive in whateverform of cash benefit pursuant to CNAs andsupplements thereto, which were signedand ratified on or after the effectivity ofPSLMC Resolution No. 04, s. 2002, andPSLMC Resolution No. 02, s, 2003, andbefore the effectiVity of the Circular, whichwere granted in strict compliance with saidPSLMC Resolutions, are thus confirmed asvalid CNA Incentives.

3.9.21.2.6 The amount/rate of the individual CNAIncentive:

3.9.21.2.6.1 Shall not be pre-determinedin the CNAs or in thesupplements thereto since it isdependent on savingsgenerated from cost-cuttingmeasures and systemsimprovement, and also fromimprovement of productivityand income in GOCCs andGAs;

3.9.21.2.6.2 Shall not be given uponsigning and ratification of theCNAs or supplements thereto,as this gives the CNAIncentive the character of theCNA Signing Bonus which theSupreme Court has ruledagainst for not being a trulyreasonable compensation(Social Security System vs.Commission on Audit, 384SeRA 548, July 11, 2002);

3.9.21.2.6.3 May vary every year duringthe term of the CNA, at ratesdepending on the savings

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generated after the signingand ratification of the CNA;and

3.9.21.2.6.4 May be higher for employeesin offices or organizationalunits which contributed morein cost savings, productivity,profitability, or a combinationthereof, as the case may be.

3.9.21.2.7 The CNA Incentive for the year shall bepaid as a one-time benefit after the end ofthe year, provided that the plannedprograms/activities/projects have beenimplemented and completed in accordancewith the performance targets for the year.

3.9.21.3 Procedural Guidelines

3.9.21.3.1 An Employees' Organization - ManagementConsultative Committee or a similar bodycomposed of designated representativesfrom the management and the accreditedemployees' organization shall review theagency's financial records and report ofoperations at the end of the fiscal year, andshall arrive at a consensus on the followingitems:

3.9.21.3.1.1 The guidelines/criteria to befollowed in the grant of theCNA Incentive;

3.9.21.3.1.2 The total amount ofunencumbered savings at theend of the year which wererealized out of cost-cuttingmeasures identified in theCNAs and supplementsthereto, and which were theresults of the joint efforts oflabor and management;

3.9.21.3.1.3 The apportioned amounts ofsuch savings shall cover thefollOWing items:

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"Fifty percent (50%) for CNAIncentive

Thirty percent (30%) forimprovement of workingconditions and other programsand/or to be added as part ofthe CNA Incentive, as may beagreed upon in the CNA

Twenty percent (20%) to bereverted to the General Fundfor the national governmentagencies or to the GeneralFund of the constitutionalcommissions, state universitiesand colleges, and localgovernment units concerned,as the case may be;,,2 or forGOCCs and GFIs, the twentypercent (20%) is to beretained and "to be used forthe operations of the agencyto include among others,purchase of equipment criticalto the operations andproductivi~ improvementprograms"

3.9.21.3.1.4 The individual amount of theCNA Incentive to be grantedto the employees concernedbased on the establishedguidelines/criteria.

Such agreements shall beincorporated in a writtenresolution to be signed by therepresentatives of both partiesand noted by the agencyhead. This resolution shallserve as basis for accountingand auditing purposes.

2 Section 5, PSLMC Resolution No. 04, s. 2002.3 Section 6 c), PSLMC Resolution No. 02, s. 2003.

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3.9.21.3.2 The Employees' OrganizationManagement Consultative Committee orsimilar body in GOCCs and GFIs shalldetermine if the employees concerned areentitled to the CNA Incentive based oncompliance with the following conditions,pursuant to Section 2, PSLMC ResolutionNo. 02, s. 2003:

"a) Actual operating income at least meetsthe targeted operating income in theCorporate Operating Budget (COB)approved by the Department of Budgetand Management (DBM)/Office of thePresident for the year. For GOCCs/GFIs,which by the nature of their functionsconsistently incur operating losses, thecurrent year's operating loss shouldhave been minimized or reducedcompared to or at most equal that ofprior year's level;

b) Actual operating expenses are less thanthe DBM-approved level of operatingexpenses in the COB as to generatesufficient source of funds for thepayment of CNA Incentive; and

c) For income generating GOCCs/GFIs,dividends amounting to at least 50% oftheir annual earnings have beenremitted to the National Treasury inaccordance with the provisions ofRepublic Act No. 7656 dated November9, 1993,"

The following are the definitions of theterms aforestated, pursuant to Section 4,PSLMC Resolution No. 02, s. 2003:

"a) Corporate Operating Budget - refers tothe budget of a government- ownedand/or -controlled corporation/government financial institutionconsisting of estimates of revenues,expenditures and borrowings. This isprepared prior to the beginning of the

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fiscal year and recommended by thegoverning board of the corporation forconsideration and final approval of thePresident through the DBM.

b) Actual operating income - refers togross income/ revenues generatedfrom the exercise of the corporation'sregular functions as mandated by law.This excludes revenues not recurring innature, such as interest income,proceeds from the sale of scrap and/orobsolete equipment, materials and/orreal estate assets, which sale is not themain function of the corporation.

c) Actual operating expenses - refer to allexpenses incurred by the corporation inthe conduct of its regular functions.This excludes non-cash items likeallowance for bad debts,depreciation/depletion expense, lossesfrom foreign exchange and similarexpenses.

d) Operating loss - refers to the excess ofactual operating expenses over actualoperating income/ revenue."

The computation of savings for the CNAIncentive in GOCCs and GAs is illustrated inAnnex E.


3.9.21.4.1 The CNA Incentive shall be sourced solelyfrom savings from released Maintenanceand Other Operating Expenses (MOOE)allotments for the year under review, stillvalid for obligation during the year ofpayment of the CNA, subject to thefollOWing conditions:

3.9.21.4.1.1 Such savings weregenerated out of the costcutting measures identified in

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the CNAs and supplementsthereto;

3.9.21.4.1.2 Such savings shall bereckoned from the date ofsigning of the CNA andsupplements thereto;

3.9.21.4.1.3 Such savings shall be net ofthe priorities in the usethereof such as augmentationof amounts set aside forcompensation, bonus,retirement gratuity, terminalleave benefits, old-agepension of veterans and otherpersonnel benefits authorizedby law and in special andgeneral provisions of theannual General AppropriationsAct, as well as other MODEitems found to be deficient.Augmentation shall be limitedto the actual amount ofdeficiencies incurred; and

3.9.21.4.1.4 The basic rule thataugmentation can be doneonly if there is deficiency inspecific expenditure items,should be strictly observed.

3.9.21.4.2 National government agencies may use anyfree portion of their respective cashallocation for payment of the CNA Incentiveor, if necessary, may request the release ofcash allocation from the Department ofBudgetand Management (DBM).

3.9.21.4.3 GOCCs/GFIs and LGUs may pay the CNAIncentive from savings in their respectiveapproved corporate operating budgets orlocal government budgets.

3.9.21.4.4 NGAs shall submit to DBM a report on theutilization of savings for the payment of theCNA Incentive.

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1Manual on Position Classification and Compensation 1

Annex E

Illustration 1GOCC A, which meets the conditions in item 6.2 of this Circular, may grant the CNA Incentive asillustrated below and in Annex "A" ofPSLMC Resolution No. 02, s. 2003: 1

Compliance with item 6.2.a) and 6.2.b)

ParticularsInThousand Pesos

Operating incomeLess: Operating ExpensesblNet Operating Income

20,000

-I

I

I1

11

160,000

150.000

o20.000

Variance

50.000

30.000

40.000

150,000(100.000) aI

150,000(120.000) aI

30,000

Compliance with item 6.2.c)(In Thousand Pesos)

MOOE

Revenues:Operating incomeNon-operating income

•

Total incomeExpenses:Operating Expenses

Personal Services40,000

I.

II.

46,000 ....Equipment Outlay

30.000Sub-total, Operating Expenses

30.000

100.000 aI 116,000

•I

Non-Operating Expenses:Non-Cash Expenses

8,000V. Net Profit After IncomeTax

Dividend Payable to the National Government (50%)

5.000

III.tv,

Othe.-sSub-total. Non-Operating ExpensesTotal ExpensesNet Profit Before Income TaxIncome Tax

5,00010,000

12600034,000

26,000

13,000

11I

Notes:Including payment of the CNA Incentive in the amount of P10 Million, net of P4 million 10 be retained by the GQC('IGFl

.. Including amount used for improvement of working conditions which as an alternative may also be used for CNA incentive Ial Excluding paymentof CNA Incentive Ibl Amount to be used for CNA Incentive Distribution: (In thousand pesos)

Fifty percent (50%) CNA Incentive

Thirty percent (30%) for improvement of working

conditions and/or to be added as part of the CNA Incentive

Twenty percent (20%) to be retained by the GOCC/GFI

Total

20.000

10,000

6,000

4,000

20,000

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3922 Travel Expenses

Travel Expenses constitute the amounts authorized underExecutive Order (EO) No. 248, dated May 29, 1995 and EO No.248-A, dated August 14, 1995, as amended by EO No. 298, datedMarch 23, 2004, as recommended by the Travel Rates Committeecreated under Section 72, Book VI of Executive Order No. 292,the Administrative Code of 1987, to cover hotel/lodging rate,meals and incidental travel expenses excluding transportationexpenses going to and from the destination.

3.9.22.1 Coverage

Government personnel, both from the national and localgovernments

3.9.22.2 Rules and Regulations for Local Travel

Hereunder are the rules and regulations relative to localtravels approved by the authorities concerned:

3.9.22.2.1 The travel expenses of governmentpersonnel regardless of rank and destinationshall be P800 per day which shall beapportioned as follows:

50% for hotel/lodging (P400)30% for meals (P240 or P80 per meal)20% for incidental expenses (P160)

3.9.22.2.2 Entitlement to travel expenses shall startonly upon arrival at the place of destinationand shall cease upon departure therefromat the following percentages:

Particulars Percentaoe To coverArrival not later 100% Hotel/lodging (50%), mealsthan 12 noon (30%) and incidental expenses

(20%)

Arrival after 12 80% Hotel/lodging (50%), dinnernoon (10%) and incidental expenses

(20%)

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Departure before 30% Breakfast (10%) and incidental12 noon expenses (20%)

Departure at 12 40% Breakfast (10%), lunch (10%)noon and later and incidental excensestzoss)

3.9.22.2.3 In case the local travel occurred only in one(1) day, e.g., an employee arriving at theplace of destination at 10:00 AM and leavesat 4:00 PM, he/she shall be entitled only to40% of the per day rate of P800 or P320,broken down as follows: 10% for breakfast,10% for lunch, and 20% for incidentalexpenses.

3.9.22.2.4 Claims for reimbursement of actual travelexpenses in excess of the prescribed rate ofP800 may be allowed upon certification bythe head of the agency concerned asabsolutely necessary in the performance ofan assignment and upon presentation ofbills and receipts, provided that certificationor affidavit of loss shall not be consideredas appropriate replacement for the requiredbills and receipts.

3.9.22.2.5 Claims for payment of expenses

Claims for payment of expenses due totravel/assignment to places within the 50kilometer radius from the last city ormunicipality covered by the MetropolitanManila Area in the case of those whosepermanent official stations are in theMetropolitan Manila Area, or from the city ormunicipality wherein their permanent officialstations are located in the case of thoseoutside the Metropolitan Manila Area, shallbe allowed only upon presentation ofproofs, duly supported by bills or invoiceswith official receipts of expenses incurred,that they stayed in their places ofassignment for the whole duration of theirofficial travels. If they commute daily fromthe places of assignments to the places of

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residences or permanent official stations,they shall be allowed only thereimbursement of actual fares at theprevailing rates of the authorized mode oftransportation from the permanent officialstations to the destinations or places ofwork and back, and reasonable costs formeals. The total actual fare and cost ofmeals and incidental expenses shall in nocase exceed P400 per day per personnel.

3.9.22.3 Rules and Regulations for Foreign Travel

Hereunder are the rules and regulations relative toforeign travels approved by the President, DepartmentSecretaries and their equivalents, as the case may be,under the following authorized purposes/categories.

3.9.22.3.1 Government personnel who travel abroadshall be entitled to the Daily SubsistenceAllowance (DSA) as provided in the UnitedNations Development Program (UNDP)Index which can be secured from theDepartment of Foreign Affairs.

3.9.22.3.2 The DSA shall be apportioned in the samemanner as the travel expenses for localtravel.

3.9.22.3.3 Entitlement to DSA shall start only uponarrival at the place of destination and shallcease upon departure therefrom at thesame percentages indicated in item3.9.22.2.2.

3.9.22.3.4 In case the officials or employeesauthorized to travel are not provided withtransportation by the host country orsponsoring organization, they shall be.allowed official transportation, which shallbe of the restricted economy class, unlessotherwise authorized by the President of thePhilippines.

3.9.22.3.5 The airport terminal fee at the point ofembarkation to go back to the Philippines

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upon completion of the official trip abroadmay be reimbursed.


3.9.22.4.1 For NGAs including sues, the amounts shallbe charged against their respectiveappropriations for traveling expenses.



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Given:

3.9.23.1 Guidelines

The CF was derived as follows:

Leave

365 = Days in a regular year104 = Saturdays and Sundays in a regular

year10 = Legal holidays (per EO No. 292)

Where: TLB = Terminal leave benefitS = Highest monthly salary

receivedD = Number of days

of accumulatedvacation and sick leavecredits

CF = Constant factor of0.0478087 month/day

TLB = S x D x CF

3.9.23.1.1 Pursuant to Section 40, CSC MC No. 14, theTLB shall be computed as follows:


Budget Circular No. 2002-1 dated January 14, 2002, prescribedthe gUidelines relative to the computation of the TLB and MLC inaccordance with Memorandum Circular (MC) No. 14, s. 1999,issued by the Civil Service Commission (CSC).

Monetization of Leave Credits (MLC) refers to the payment inadvance under prescribed limits and subject to specified termsand conditions of the money value of the vacation and sick leavecredits of an employee upon his/her request, without actuallygoing on leave.

The Terminal Leave Benefit (TLB) refers to the money value ofthe total accumulated vacation and sick leave credits of anemployee based on the highest salary received prior to or uponretirement or voluntary separation from government service.

3.9.23 Terminal Leave Benefit and Monetization ofCredits

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Manual on Position Classification·and Compensation

12 months/yearC:F == --------------------------

[3 65 - (104 + 10)] daysfyear

12monthsC:F == --------------------------

251 days

C:F = .0478087 month/day

Conversely, a day is equal to 0.0478087month. The equivalent number of days in amonth for the purpose of computation ofTLB is 20.91667 derived as follows:

Number of days = 1 day-------------.- x 1 month

0.0478087 month

Number of days = 20.91667 days

3.9.23.1.2 The monetization of leave credits shall becomputed by using the same formulae forthe computation of the TLB.


3.9.23.2.1 For the TLB

3.9.23.2.1.1 For NGAs including SUCs, theTLBs for compulsory retireesshall be charged against theappropriations for the purposein the annual GAA. However,compulsory retirees shall begiven priority over optionalretirees in the use of the builtin appropriations in caseswhere claimants simultaneously request for fundreleases. Deficiencies inappropriations shall becharged against agencysavings.

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Funds for the MLC shall be charged solelyfrom savings of government entities.

3.9.23.2.1.2 For GOCCs and GAs, the TLBsshall be charged against theirrespective corporate funds.

the TLBs shall beagainst their

local government

3.9.23.2.1.3 For LGUs,chargedrespectivefunds.

3.9.23.2.2 For the MLC

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3.10 Compensation for Casual Personnel and Those of SameNature

Casuals, temporary and emergency employees, including skilled, semiskilled and unskilled laborers refer to those hired for short durationsonly, depending on the needs of the service.

3.10.1 Rules and Regulations

3.10.1.1 In accordance with Section 7, RA No. 6758, the dailywage rate for casual personnel and those of similarnature shall be derived based on the followingformulae:

Authorized Monthly Salary for the PositionDaily Wage Rate =

22 days

3.10.1.2 Payment of the daily wage shall be in accordance withthe "No Work, No Pay" policy. Accordingly, casualemployees shall be paid wages only on days actuallyworked based on the above formulae, regardless ofthe number of work days in a month. Annex F showsa sample computation.

3.10.1.3 No wages shall be paid on rest days such asSaturdays, Sundays and regular holidays falling onweekdays unless casual employees worked on thesedays, and during leaves of absence without pay.

3.10.1.4 Pursuant to PO No. 442, casual employees are entitledto wages on special holidays proclaimed by thePresident even if they did not work on these days.

3.10.1.5 Work performed on special work holidays aretantamount to work performed on ordinary work days.

3.10.1.6 Casual personnel and those of similar nature shall beentitled to allowances received by regular personnel,including membership in the GSIS, healthinsurance, employees compensation insurance,membership in the PAG-IBIG Fund, vacation andsick leaves and the monetization thereof, andpayment of terminal leave benefits.

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3.10.2 Funding Source

Funds for wages, allowances and other personnel benefits ofcasual personnel and those of similar nature, including thegovernment's share in the Government Service InsuranceSystem (GSIS) retirement and life insurance premiums, healthinsurance premiums, employees compensation insurancepremiums, and PAG-IBIG Fund contributions shall be chargedagainst the lump-sum funds for the purpose under the agencyappropriations/ budgets for personal services.

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Annex F

SAMPLE COMPUTATION OF DAILY WAGE

Mr. Dante dela Cruz, a casual employee, is occupying the position of UtilityWorker I, SG-1, with authorized monthly salary of PS,082.

His aggregate monthly wages are as follows:

Daily Wage Rate Aggregate WageNumber of = [PS,082~ For the Month*

Months Work Days 22 days (2) x (3) = (4)

(1) (2) (3) (4)

January 22 P231 PS,082February 20 231 4,620October 23 231 5,313

* Based on the assumption that the number of work days is equal to daysactually worked

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3.11 Compensation for Contractual Personnel

Contractual personnel are those hired in accordance with specificcontracts for specified periods and with definite expected outputs, andare employed to undertake a particular work or project, and whosehiring creates employee-employer relationships between them and thehiring agencies. Contractual personnel are considered as employees ofhiring agencies limited to such periods when their services arereasonably required,

Civil Service Commission and Department of Budget and ManagementJoint Circular No. 99-7 dated December 29, 1999, provides theguidelines governing contractual personnel.

3.11.1 Not Covered

3.11.1.1 Student laborers, apprentices, laborers of contractedprojects C'pakyaw"), mail collectors, including thosepaid on piecework bases; and

3.11.1.2 Those whose positions are not classified/approved bythe DBM and the esc

3.11.2 Rules and Regulations

3.11.2.1 The hiring of contractual personnel shall be allowedunder the following conditions:

3.11.2.1.1 The desired expertise is not availableamong the regular staff.

3.11.2.1.2 The service to be rendered is of shortduration and the service has to beterminated thereafter.

3.11.2.1.3 The work to be accomplished is veryurgent but in utilizing the regular staff,other functions of the agency will beunduly prejudiced.

3.11.2.2 Contractual personnel may be hired only if funds forthe purpose are available in agencyappropriations/budgets.

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3.11.2.3 Contractual personnel shall not be allowed more thantwo part-time contracts with government at anyonetime.

3.11.2.4 Contractual personnel must not be designated in anycase to positions wherein they will exercise control orsupervision over regular personnel of hiring agencies.

3.11.2.5 Employment contracts shall only be issued on thebases of classified contractual positions duly approvedby the DBM, and in no case shall the contracts extendbeyond the fiscal year they were approved.

3.11.2.6 Compensation for Contractual Personnel

3.11.2.6.1 Contractual personnel shall be paidsalaries of equivalent permanent positionsas determined by the DBM, but not toexceed the salaries of immediatesuperiors.

3.11.2.6.2 Contractual personnel shall be entitled toallowances received by regular personnel,including membership in the GSIS, healthinsurance, employees compensationinsurance, membership in the PAG-IBIGFund, vacation and sick leaves and themonetization thereof, and payment ofterminal leave benefits.

3.11.2.6.3 The contractual employees' share in theGSIS retirement and life insurancepremiums, health insurance premiums,employees compensation insurancepremiums and PAG-IBIG Fundcontributions shall be paid by theindividual contractual employees.

3.11.2.6.4 The Representation and TransportationAllowances (RATA) for contractual officialswhose positions have been determined bythe DBM as comparable or equivalent inrank to any of the positions enumerated initem 3.9.5.2.1 of this Chapter, may begranted RATA in accordance with the rulesand regulations provided under item3.9.5.2.14 of this Chapter.

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3.11.3 Funding Source

Funds for the salaries, allowances, other personal benefits ofcontractual personnel, including the government's share in theGSIS retirement and life insurance premiums, health insurancepremiums, employees compensation insurance premiums andPAG-IBIG Fund contributions shall be charged against the lumpsum funds for the purpose under agency appropriations/budgetsfor personal services.

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3.12 Maintenance of the Compensation Plan

The Compensation Plan should provide compensation which can standcomparison with those in private industries and which can providemaximum benefit to the service so that the Philippine Government couldretain its core of public servants. Thus, the Compensation Plan wasestablished with maintenance mechanisms such that compensationissues brought about by changes in economic conditions, employmentconditions, policy decisions, administrative reforms, etc., could readily beaddressed without disrupting the relationship between the PositionClassification Plan and the Compensation Plan.

3.12.1 Maintenance Mechanisms

3.12.1.1 Regular review of the Compensation Plan

To keep the Compensation Plan current so that itremains reasonable and competitive, the DBM reviewsthe salary schedule on a regular basis to identifyproblems brought about by:

• inherent defects in the salary schedule reinforcedby special salary adjustments to specific groups ofgovernment personnel which eventually createsalary problems that may disturb salaryrelationships of positions;

• inflation, changes in the working environment andin the organization which eventually make therules and rates of certain fringe benefitsunrealistic;

• new rulings and decisions of courts and quasijudicial bodies which need to be harmonizedand/or rationalized with the existinq compensationrules and regulations;

• enactment of laws providing special compensationto special groups;

• changes in the number of years of academicrequirements:

• budgetary constraints; and

• other factors.

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The regular review of the salary schedule, salaryrules, rules and regulations on the grant of allowancesand other personnel benefits enables the DBM toadopt appropriate measures to ensure that thecompensation plan is updated and pay equity ismaintained.

3.12.1.2 Compensation Survey

The DBM conducts compensation surveys as often aseconomic conditions affect general salary/wage levels.

Through the compensation survey, information aboutcompensation levels and practices in selected privatefirms are gathered using benchmark positions existingin both the public and private sectors. The surveymay be by occupation or by industry, and may beconducted by geographical area. The data collectedare tabulated, organized and processed statistically toobtain the desired information.

Based on the compensation survey results, the DBM isguided in the determination of the prevailing rates ofsalaries, allowances and other personnel benefits.Policy decisions are made as to the extent ofadjustment of salary levels and implementation ofallowances and other personnel benefits, taking intoconsideration the following:

• statistical results of survey;

• the government's ability to finance thecompensation of its personnel on a sustainablebasis; and

• other considerations such as standard cost ofliving, geographical location, etc.

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References

Salaries

Issuances Titles

Republic Act No. 6758, An Act Prescribing a Revised Compensation and PositionAugust 21, 1989 Classification System in the Government and for Other

Purposes

National Compensation Rules and Regulations on the Standardization ofCircular No. 56, September Compensation and Position Classification Plan in the30, 1989 Government

National Compensation List of Allowances/Additional Compensation ofCircular No. 59, September Government Officials and Employees Which Shall Be30, 1989 Deemed Integrated Into the Basic Salary

Corporate Compensation Rules and Regulations for the Implementation of theCircular No. 10, October 2, . Revised Compensation and Position Classification Plan in1989 and February 15, Government-Owned and/or -Controlled Corporations and1999 Government Financial Institutions (GOCCs/GFIs)

Joint Senate-House of Joint Resolution Urging the President of the Philippines toRepresentatives Resolution Revise the Existing Compensation and PositionNo.1, s. 1994, March 7, Classification System in the Government and to1994 Implement the Same Initially Effective January 1, 1994

Executive Order No. 164, Adopting a Revised Compensation and PositionMarch 7, 1994 Classification System in the Government

National Compensation Guidelines for the Initial Implementation of the RevisedCircular No. 72, March 9, Compensation and Position Classification System1994

Executive Order No. 218, Second Year Implementation of the New Salary ScheduleJanuary 1, 1995 in the Government

National Compensation Guidelines for the Second Year Implementation of theCircular No. 74, January 2, New Salary Schedule in the Government1995

Corporate Compensation Rules and Regulations for the Implementation of theCircular No. 11, series of Revised Compensation and Position Classification Plan in1996, January 15, 1996 Government-Owned and/or Controlled Corporations and

Government Financial Institutions (GOCCs/GFIs)

Executive Order No. 290, Third Year Implementation of the New Salary Schedule inJanuary 2, 1996 the Government

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Issuances Titles

National Budget Circular Guidelines for the Third Year Implementation of the NewNo. 448, series of 1996, Salary Schedule in the GovernmentJanuary 2, 1996

Executive Order No. 389, Implementing the Fourth and Final Year Salary IncreasesDecember 28, 1996 Authorized by Joint Senate and House of Representatives

Resolution No.1, series of 1994

National Budget Circular Guidelines for the Full Implementation of the New SalaryNo. 458, series of 1997, Schedule in the GovernmentJanuary 2, 1997

Executive Order No. 219, Grant of Salary Adjustment to All Government PersonnelMarch 20, 2000

National Budget Circular Guidelines for the Grant of Ten Percent (10%) SalaryNo. 468, March 21, 2000 Adjustment to All Government Personnel Effective

January 1, 2000

Executive Order No. 22, Grant of Salary Adjustment to All Government PersonnelJune 27, 2001

National Budget Circular Guidelines for the Grant of Five Percent (5%) SalaryNo. 474, June 15, 2001 Adjustment to Ail Government Personnel Effective July 1,

2001

Step Increments

Issuances Titles

Civil Service Commission Rules and Regulations Governing the Grant of Stepand Department of Budget Increments to Deserving Officials and Employees of theand Management Joint GovernmentCircular No.1, s. 1990,March 29, 1990

Civil Service Commission Amending Section 1, Rule I of the Joint CSC-DBM Circularand Department of Budget No.1, s. 1990and Management JointCircular No.2, s. 1991,July 5, 1991

Civil Service Commission Amending Further Joint CSC-DBM Circular No.1, s. 1990and Department of Budget (Entitlement to Step Increment)and Management JointCircular No. 1-2003, April11,2003

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Personnel Economic Relief Allowance

Issuances Titles

Budget Circular No.4, Grant of Personnel Economic Relief Allowance to AllJune 28, 1991 Employees of the Government

Budget Circular No.4-A, Grant of Personnel Economic Relief Allowance (PERA) toJuly 1, 1991 All Employees of the Government

Circular Letter No. 95-9, Grant of Personnel Economic Relief Allowance (PERA) toseries of 1995, December Substitute Teachers15, 1995

Budget Circular No. 4-B, Amending Budget Circular No.4 Dated June 28, 1991series of 1996, February 2, Relative to the Grant of Personnel Economic Relief1996 Allowance to All Employees of the Government

Budget Circular No. 12, Updated Rules and Regulations on the Grant of PersonnelApril 7, 1997 Economic Relief Allowance (PERA) and Expansion of

Coverage to Include All Employees of the Government

Additional Compensation

Issuances Titles

Administrative Order No. Implementing the Grant of Additional Compensation in53, May 17, 1993 the Amount of P500.00 Per Month to Public School

Teachers, and Uniformed Personnel of the PhilippineNational Police and the Armed Forces of the Philippines,and Extending the Benefit to the Rest of the Personnel ofthe Government

Administrative Order No. Clarifying the Implementation of the Grant of Additional76, August 17, 1993 Compensation in the Amount of P500.00 Per Month to

Contractual Personnel of the Government and to LocalOfficials and Employees

Budget Circular No. 15, Compensation and Additional Benefits of SuspendedMarch 5, 1998 Government Personnel

Budget Circular No. 17, Extending the Grant of P500 Per Month AdditionalFebruary 24, 1999 Compensation (ADeOM) to Government Personnel

Allocated to Salary Grade 26 and Above

Administrative Order No. Granting Additional Compensation in the Amount of One144, February 28, 2006 Thousand Pesos (P1,000.00) Per Month to All Employees

of the National Government

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Issuances Titles

Budget Circular No. 2006- Rules and Regulations on the Increase in the Additional2, March 2, 2006 Compensation of Government Employees

Budget Execution Specific Guidelines on the Release of Funds for theGuidelines No. 2006-8, Increase in the Additional CompensationMarch 3, 2006

Uniform/Clothing Allowance

Issuances Titles

Budget Circular No. 2003- Rules and Regulations on the Grant of Uniform/Clothing8, December 8, 2003 Allowance (U/CA) to All Government Personnel for FY

2004 and Years Thereafter

Budget Circular No. 2003- Rules and Regulations on the Grant of Uniform/Clothing8A, July 2, 2004 Allowance (U/CA) to All Government Personnel for FY


Representation and Transportation Allowances

Issuances Titles

National Compensation Representation and Transportation Allowances ofCircular No. 67, January 1, National Government Officials and Employees1992

National Compensation Amending National Compensation Circular No. 67 DatedCircular No. 67-A, May 15, January 1, 1992 Relative to the Representation and1992 Transportation Allowances of National Government

Officials and Employees

National Budget Circular Representation and Transportation Allowances ofNo. 450, March 5, 1996 Contractual Personnel

National Budget Circular Guidelines on the Grant of the Monthly Cash EquivalentNo. 454, October 14, 1996 of the Transportation Allowance Authorized Under the

Annual General Appropriations Act

Corporate Budget Circular Guidelines for the Implementation of the Revised RatesNo. 18, November 14, of Representation and Transportation Allowances (RATA)2000 of Officials in Local Water Districts (LWDs)

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Issuances Titles

National Compensation Further Amending National Compensation Circular No. 67Circular No. 67-B, August Dated January 1, 1992 Relative to the Representation8, 2002 and Transportation Allowances of National Government

Officials and Empioyees

National Budget Circular Revised Rates of Representation and TransportationNo. 498, April 1, 2005 Allowances (RATA)

Year-End Bonus and Cash Gift

Issuances Titles

Executive Order No. 74, Granting Year-End Bonus and Cash Gift to National andNovember 26, 1986 Local Government Officials and Empioyees

Executive Order No. 74-A, Expanding the Coverage of the Year-End BonusDecember 19, 1986

Republic Act No. 6686, An Act Authorizing Annual Christmas Bonus to NationalDecember 14, 1988 and Local Government Officials and Employees Starting

CY 1988

Administrative Order No. Prescribing the Guidelines for the Advance Payment of57, June 1, 1993 One-Half (1/2) of the Amount of the Christmas Bonus

and Cash Gift for CY 1993 Under R.A. No. 6686 toGovernment Personnel

National Compensation Grant of the Balance of One-Half Month Year-End BonusCircular No. 70, November and Cash Gift for Calendar Year 1993 to Government8, 1993 Officials and Employees Including Those in Government-

Owned and/or Controlled Corporations and FinancialInstitutions and Local Government Units

Administrative Order No. Prescribing the Guidelines for the Loan of One-Half (1/2)132, June 8, 1994 of the Amount of the Christmas Bonus and Cash Gift for

CY 1994 Under R.A. No. 6686 to Government Personnel

Budget Circuiar No.5, Grant of Year-End Bonus and Cash Gift for CY 1994October 14, 1994

Budget Circular No.5-A, Grant of Year-End Benefits for CY 1994December 16, 1994

Administrative Order No. Authorizing the Grant of an Interest-Free Loan to195, May 30, 1995 Government Personnel in CY 1995 and Years Thereafter

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Issuances Titles

Budget Circular No.7, Grant of Year-End Bonus and Cash Gift for FY 1995 andNovember 2, 1995 Years Thereafter

Circular Letter No. 12-96, Grant of an Interest-Free Loan to Government OfficialsMay 3, 1996 and Employees

Budget Circular No. 11, Grant of Year-End Bonus and Cash Gift and AdvanceOctober 31, 1996 Payment of One-Half (1/2) Thereof for FY 1996 and

Years Thereafter

Budget Circular No. 11-A, Amending Budget Circular (BC) No. 11, Dated OctoberApril 24, 1997 31, 1996 Relative to the Grant of Year-End Bonus and

Cash Gift and Advance Payment of One-Half (1/2)Thereof for FY 1996 and Years Thereafter

Republic Act No. 8441, An Act Increasing the Cash Gift to Five Thousand PesosDecember 22, 1997 (P5,000.00), Amending for the Purpose Certain Sections

of Republic Act Numbered Six Thousand Six HundredEighty-Six and for Other Purposes

Budget Circular No. 11-B, Amending Further Budget Circular (BC) No. 11, DatedMarch 30, 1998 October 31, 1996 Relative to the Grant of Year-End

Bonus and Cash Gift and Advance Payment of One-Half(1/2) Thereof for FY 1996 and Years Thereafter

Budget Circular No. 15, Compensation and Additional Benefits of SuspendedMarch 5, 1998 Government Personnel

Budget Circular No. 2000- Grant of Year-End Bonus and Cash Gift and Advance18, September 6, 2000 Payment of One-Half (1/2) Thereof for FY 2000 and

Years Thereafter

Circular Letter No. 2002- Clarification on the Service Requirement for Entitlement14, June 25, 2002 to Year-End Benefits (YEB)

Circular Letter No. 2003- Prohibition on the Grant of Additional Bonuses in Any10, October 17, 2003 Form

Budget Circular No. 2003- Liberalization of the Rules and Regulations on the2, May 9, 2003 Payment of Year-End Bonus and Cash Gift

Budget Circular No. 2005- Updated Rules and Regulations on the Grant of the Year-6, October 28, 2005 End Bonus and Cash Gift to Government Personnel for FY


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Productivity Incentive Benefit

Issuances TItles

Administrative Order No. Rationalizing the Grant of Productivity Incentive Benefits268, February 21, 1992 for Calendar Year 1991 to All Personnel of Government

Agencies

National Budget Circular Grant of Productivity Incentive Benefits to Officials andNo. 426, April 1, 1992 Employees of the Government

Administrative Order No. Authorizing the Grant of CY-1993 Productivity Incentive103, January 14, 1994 Benefits to Government Personnel and Prohibiting

Payments of Similar Benefits in Future Years Unless DulyAuthorized by the President

Administrative Order No. Prescribing a Standard Incentive Pay System Based on161, December 6, 1994 Productivity and Performance, for All Officials and

Employees of the Government; National and LocalIncluding Those of Government-Owned and/or-Controlled Corporations and Government FinancialInstitutions and for Other Purposes

National Compensation Grant of Productivity Incentive Benefits to Officials andCircular No. 71, January Employees of the Government19, 1994

National Compensation Grant of Productivity Incentive Benefit (PIB) for CY 1994Circular No. 73, December and Years Thereafter27, 1994

National Compensation Supplementing National Compensation Circular No. 73Circular No. 73-A, March 1, Dated December 27, 1994 on the Grant of Productivity1995 Incentive Benefits (PIB) for CY 1994 and Years

Thereafter

Circular Letter No. 3-96, Grantof Productivity Incentive Benefit (PIB) for CY 1995series of 1996, January 15,1996

Circular Letter No. 3-97, Grant of Productivity Incentive Benefit (PIB) for FY 1996January 31, 1997 and Years Thereafter

Circular Letter No. 2001-6, Grantof Productivity Incentive BenefitMarch 2, 2001

Circular Letter No. 2002-3, Additional Guidelines on the Grant of ProductivityJanuary 2, 2002 Incentive Benefit (PIB)

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Overtime Pay·

Issuances Titles

Memorandum Order No. Prescribing Guidelines Governing the Rendition and228, March 29, 1989 Payment of Overtime Services of Government Personnel

National Budget Circular Rules and Regulations Implementing Memorandum OrderNo. 410, April 28, 1989 No. 228 on the Rendition of Overtime Services With Pay

Memorandum Order No. Amending Memorandum Order No. 228, Prescribing227, August 26, 1994 Guidelines Governing the Rendition and Payment of

Overtime Services of Government Personnel

Budget Circular No. 10, Prescribing and Updating the Guidelines and ProceduresMarch 29, 1996 on the Rendition of Overtime Services With Pay of

Government Personnel

Compensatory Time-Off

Issuances Titles

Administrative Order No. Directing the Continued Adoption of Austerity Measures103, August 31, 2004 in the Government

Civil Service Commission Non-Monetary Remuneration for Overtime Servicesand Department of Budget Renderedand Management JointCircular No.2, series of2004, October 4, 2004

Civil Service Commission Amendments to CSC-DBM Joint Circular (JC) No.2, s.and Department of Budget 2004 re: Non-Monetary Remuneration for Overtimeand Management Joint Services RenderedCircular No.2-A, s. 2005,July 1, 2005

Per Diem

Issuances Titles

Executive Order No. 389, Authorizing Officials and Employees of the RegularDecember 30, 1989 Agencies/Offices of the National Government and of

Other Government-Owned and/or Controlled Corporationsto Adopt the Rates of Per Diem and Allowances asAuthorized Pursuant to Executive Order No. 151 Dated

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Issuances Titles

March 19, 1987, as Implemented by National BudgetCircular No. 391 Dated October 6, 1987, as Amended,and Ratifying for the Purpose All Previous Payments Madeby National Government Agencies/Offices Pursuant to theSaid Issuances

Budget Circular No. 2003- Guidelines Relative to the Grant of Per Diems to Members6, September 29, 2003 of Collegial Bodies and Members of the Board of

Regents/Trustees of State Universities and Colleges

Honoraria

Issuances Titles

Compensation Policy National Government Officials Entitled to HonorariaGuidelines No. 98-1, March Chargeable Against Local Funds23, 1998

Budget Execution Updated Rules and Regulations on the Grant of AdditionalGuidelines No. 2004-1, Allowance and Other Benefits to National GovernmentJanuary 8, 2004 Officials/Employees Assigned to Local Government Units

Budget Circular No. 2003- Prescribing Guidelines on the Grant of Honoraria to5, September 26, 2003 Government Personnel for FY 2003 and onwards

Honoraria for Government Personnel Involved in GovernmentProcurement

Issuances TItles

Budget Circular No. 2004- Guidelines on the Grant of Honoraria to Government5, March 23, 2004 Personnel Involved in Government Procurement

Budget Circular No. 2004- Guidelines on the Grant of Honoraria to GovernmentSA, October 7, 2005 Personnel Involved in Government Procurement

Night-Shift Differential Pay

Issuance Title

Budget Circular No.8, Prescribing Guidelines and Procedures for the Grant ofSeries 1995, December 4, Night-Shift Differential Pay to Government Employees1995

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Hazard Duty Pay

Issuance Title

Budget Circular No. 2005- Rules and Regulations on the Grant of Hazard Duty Pay4, July 13, 2005

Subsistence Allowance

Issuance Title

Republic Act No. 7305, Magna Carta of Public Health WorkersMarch 26, 1992

November 1999 Revised Implementing Rules and Regulations for PublicHealth Workers

Laundry Allowance

Issuances Title


November 1999 Revised Implementing Rules and Regulations for PublicHealth Workers

Free Quarters for Certain Government Officials

Issuance Title

National Budget Circular Guidelines on the Provision of Free Quarters to CertainNo. 456, November 11, Officials1996

Free Quarters Privileges in Hospitals

Issuance Title


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Issuance Title

November 1999 Revised Implementing Rules and Reguiations for PublicHealth Workers

Anniversary Bonus

Issuances Titles

Administrative Order No. Authorizing the Grant of Anniversary Bonus to Officials263, March 28, 1996 and Employees of Government Entities

National Budget Circular Amplifying and Clarifying the Implementation of theNo. 452, May 20, 1996 Grant of Anniversary Bonus to Officials and Employees of

Government Entities

Collective Negotiation Agreement Incentive

Issuances Titles

Executive Order No. 180, Providing Guidelines for the Exercise of the Right toJune 1, 1987 Organize of Government Employees, Creating a Public

Sector Labor-Management Council and for OtherPurposes

Public Sector Labor- Grant of Collective Negotiation Agreement (CNA)Management Council Incentive for National Government Agencies, StateResolution No. 04, s. 2002, Universities and Colleges and Local Government UnitsNovember 14, 2002

Public Sector Labor- Grant of Collective Negotiation Agreement (CNA)Management Council Incentive for Government Owned or ControlledResolution No. 02, s. 2003, Corporations (GOCCs) and Government FinancialMay 19, 2003 Institutions (GFIs)

Public Sector Labor- Approving and Adopting the Amended Rules andManagement Council Regulations Governing the Exercise of the Right ofResolution No. 02, s. 2004, Government Employees to OrganizeSeptember 28, 2004

Executive Order No. 135, Authorizing the Grant of Collective NegotiationDecember 27, 2005 Agreement (CNA) Incentive to Employees in Government

Agencies

Budget Circular No. 2006- Grant of Collective Negotiations Agreement (CNA)1, February 1, 2006 Incentive

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Travel Expenses

Issuances Titles

Executive Order No. 248, Prescribing Rules and Regulations and New Rates ofMay 29, 1995 Allowances for Official Local and Foreign Traveis of

Government Personnel

Executive Order No, 248-A, Amending Executive Order No. 248 Dated May 29, 1995,August 14, 1995 Which Prescribes Rules and Regulations and New Rates

of Allowances for Official' Local and Foreign Travels ofGovernment Personnel

Executive Order No. 298, Amending Further Executive Order No. 248 Dated MayMarch 23, 2004 29, 1995 as Amended by Executive Order No. 248·A

Dated August 14, 1995, Which Prescribes Rules andRegulations and New Rates of Allowances for OfficialLocal and Foreign Travels of Government Personnel

Terminal Leave Benefit and Monetization of Leave Credits

Issuances Titles

Civil Service Commission Rules and Regulations Governing the Monetization ofand Department of Budget Leave Credits of Government Officials and Employeesand Management JointCircular No.1, s. 1991,June 27, 1991

Civil Service Commission Guidelines in the Application for Monetization of LeaveMemorandum Circular No. Credits and the Computation of the Money Value of the31, s. 1991, Juiy 23, 1991 Ten (10) Days Monetized Leave Credits

Civil Service Commission Amendatory Rules and Regulations Governing theand Department of Budget Monetization of Leave Credits of Government Officialsand Management Joint and EmployeesCircular No. 2-97, June 25,1997

Civil Service Commission Amendments to Rules I and XVI of the Omnibus RulesMemorandum Circular No. Implementing Book V of the Administrative Code of 198741, s. 1998, December 24, (Executive Order 292)1998

Civil Service Commission Additional Provisions and Amendments to CSCMemorandum Circular No. Memorandum Circular No. 41, s. 199814, s. 1999, August 23,1999

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Issuances Titles

Budget Circular No. 2002· Computation and Funding of Terminal Leave Benefits and1, January 14, 2002 Monetization of Leave Credits

Compensation for Casual Personnel and Those of Same Nature

Issuance Title

Budget Circular No. 2003· Rules and Regulations on the Computation and Payment4, September 26, 2003 of Daily Wage

Note:

Compensation Policy GUidelines and Budget Execution Guidelines are only for internai use ofDBM technical staff.

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• 4

Chapter 4·..... "

Responsibility Centers in the Administration of thePosition Classification and Compensation System

4.1 Department of Budget and Management

The Department of Budget and Management (DBM) is the primarygovernment agency responsible for the formulation and implementation ofthe National Budget through the efficient and sound utilization ofgovernment funds and resources for the attainment of the country'sdevelopment objectives. One of the major functions of the DBM to fulfillits mandate is the development, administration and maintenance of aunified government Position Classification and Compensation System(PCCS). It carries this out principally through the Organization, PositionClassification and Compensation Bureau (OPCCB), Budget andManagement Bureaus (BMBs) and DBM Regional Offices (DBM-ROs).Below are the pertinent functions of each bureau/office in so far as thepces is concerned.

4.1.1 Organization, Position Classification and CompensationBureau

4.1.1.1 Administer and maintain the PCCS;

4.1.1.2 Develop standards, guidelines, rules and regulations onorganization, staffing, and classification andcompensation of positions;

4.1.1.3 Render advice to or process requests of governmententities referred by DBM offices, or by other governmentoffices on organization, staffing, position classificationand compensation matters;

4.1.1.4 Maintain, update and enforce position classification andcompensation policies and standards;

4.1.1.5 Monitor government manpower levels and maintain acomprehensive database on government positions andcompensation through the Government ManpowerInformation System (GMIS);

4.1.1.6 Establish the government-wide budgetary requirementsfor personal services and associated budgetary items forinclusion in the annual national budget;

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4.1.3 The DBM Regional Offices

4.1.2 Budget and Management Bureaus (BMBs) A-E

4.1.1.10 Perform other related functions as may be provided bylaw.

4.1.1.8 Conduct training programs in the field of organization,staffing position classification and compensation;

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Evaluate and process position classification andcompensation proposals of government entitiesdelegated to DBM-ROs;

4.1.3.1

4.1.2.5 Prepare recommendations/position papers on legislativeproposals/bills and proposed executive issuances withspecific agency issues on organization, staffing, positionclassification, and compensation; and with fundingimplications.

4.1.2.4 Provide technical assistance to government agenciesunder their coverage on organization, staffing, positionclassification and compensation matters; and

4.1.2.2 Establish agency-specific annual budqetary requirementsfor personal services and associated budgetary items forinclusion in the annual national budget;

4.1.2.3 Conduct position audits in government agencies toascertain the duties and responsibilities of positions, asnecessary;

4.1.1.9 Conduct compensation surveys in private industry to

determine prevailing rates of pay for comparablepositions in the government; and

4.1.2.1 Evaluate and process organization, staffing, positionclassification and compensation proposals of governmentagencies under their coverage;


4.1.1.7 Prepare recommendanons/oosmon papers on legislativeproposals/bills and proposed executive issuances withpolicy and government-wide implications on organization,staffing and position classification and compensation;

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Responsibility Center in the Administration of the PCCS

4.1.3.2 Establish annual budgetary requirements for personalservices and associated budgetary items of delegatedgovernment entities for inclusion in the annual nationalbudget;

4.1.3.3 Conduct position audits in delegated government entitiesto ascertain the duties and responsibilities of positions,as necessary;

4.1.3.4 Review budgets of provinces and highly urbanized citiesunder their coverage, particularly the personal servicescomponent, to ensure compliance with existing laws,rules and regulations; and

4.1.3.5 Provide technical assistance to government entitiesdelegated to DBM-ROs on organization, staffing, positionclassification and compensation matters.

4.2 The Department/Bureau/Office

4.2.1 Agency Head

The head of the department, bureau, office or agency shall:

4.2.1.1 Ensure compliance by all concerned with the rules andregulations on position classification and compensation;

4.2.1.2 Prescribe the duties and responsibilities of each employeein accordance with the approved classification of theposition; and

4.2.1.3 When requested, provide information about the functionsof the organization and such other matters necessary forposition classification, pay determination and preparationof class specifications.

4.2.2 The Administrative Officer or Equivalent Officer

The Administrative Officer or equivalent officer of a governmentagency in charge of human resource management functions servesas the link between the agency and the DBM through theOPCCBjBMBjDBM-RO concerned. The Administrative Officer orequivalent officer shall:

4.2.2.1 Cause the preparation of the Position Description Form(PDF);

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4.2.2.2 Review the accomplished PDF for completeness;

4.2.2.3 Indicate BMB/DBM-RO classification action on the agencycopy of the PDF and in the Personal Services Itemizationand Plantilla of Personnel (PSIPOP);

4.2.2.4 Prepare position classification and compensation reportsas required by the DBM; accomplish and update thePSIPOP; and

4.2.2.5 Keep and maintain offlciai position classification andcompensation records.

4.2.3 The Immediate Supervisor

The immediate supervisor shall:

4.2.3.1 Assign to the incumbent the duties and responsibilitiesused as basis for the classification of the incumbent'sposition; and

4.2.3.2 Review the PDF of employees for consistency with actualduties and responsibilities.

4.3 Submission of Required Agency Documents/Reports toDBM

4.3.1 A well maintained pees would proactively address all issues relatedto human capital, and would be an invaluable tool for strategicplanning and decision-making in all levels of management. To keepthe pees updated and responsive with the times, the DBM enliststhe full support of agencies through the submission of agencydocuments/reports on personnel complement and compensationmatters for monitoring, planning and other purposes.

4.3.2 Failure on the part of agency heads, chief accountants,administrative officers, and other responsible agency officers tosubmit current PSIPOP and such other documents/reports as maybe required by the DBM shall subject the agency concerned toappropriate sanctions under existing rules and regulations.

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Chapter 5

Salary Grades of Positions of Constitutional andOther Officials and Their Equivalents

5.1 Salary Grades of Positions of Constitutional Officials

Under RA No. 6758, the salary grades of positions of constitutional officialsare as follows:

SalaryPosition Grade

President 33Vice-President 32President of the Senate 32Speaker of the House of Representatives 32Chief Justice of the Supreme Court 32Senator 31Member of the House of Reoresentatives 31Associate Justice of the Supreme Court 31Chairman Constitutional Commission 31Commissioner Constitutional Commission 30

5.2 Salary Grades of Positions of Equivalent Ranks

The Department of Budget and Management (DBM) determines thepositions that are of equivalent ranks to any of the foregoing officialsbased on the following guidelines:

5.2.1 Salary Grade 33 - This Salary Grade is assigned to the President ofthe Republic of the Philippines as the highest position in thegovernment. No other position in the government service isconsidered to be of equivalent rank.

5.2.2 Salary Grade 32 - This Salary Grade is assigned to the VicePresident of the Republic of the Philippines and to positions whichhead the Legislative and Judicial Branches of the government,namely: the President of the Senate, the Speaker of the House ofRepresentatives, and the Chief Justice of the Supreme Court. Noother positions in the government service are considered to be ofequivalent rank.

5.2.3 Salary Grade 31 - This Salary Grade is assigned to Senators, andMembers of the House of Representatives and those of

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equivalent rank. The following are examples of positions ofequivalent rank:

• Executive Secretary;

• Department Secretary;

• Presidential Spokesman;

• Ombudsman;

• Press Secretary;

• Presidential Assistant II;

• Presidential Adviser;

• Director-General (National Economic and DevelopmentAuthority);

• Presiding Justice, Court of Appeals;

• Presiding Justice, Sandiganbayan;

• Secretary of the Senate;

• Secretary-General of the House of Representatives; and

• UP President.

A position, other than ex-officio, which heads an entity that can beconsidered organizationally equivalent to a Department by reason ofits broad functional scope of operations and Wide area ofcoverage ranging from top level policy formulation to the provisionof technical and administrative support to the units under it, can beconsidered as of equivalent rank to a Department Secretary.

5.2.4 Salary Grade 30 - Examples. of positions included in this SalaryGrade are the following:

• Department Undersecretary;

• Presidential Assistant I;

• Solicitor-General;

• Government Corporate Counsel;

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Salary Grades of Positions of Constitutional and Other Officials andTheir Equivalents

• Court Administrator of the Supreme Court;

• Chief of Staff (Office of the Vice-President);

• Deputy Director-General (National Economic andDevelopment Authority);

• Deputy Ombudsman;

• Associate Justice, Court of Appeals;

• Associate Justice, Sandiganbayan;

• Special Prosecutor;

• UP Executive Vice-President; and

• SUC President IV.

Heads of councils, commissions, boards and similar entities whoseoperations cut across sectors or are serving a sizeable portion ofthe general public and which coverages are nationwide or whosefunctions are comparable to the aforecited positions, may beplaced at this level.

5.2.5 The salary grades of positions not mentioned herein or those thatmay be created shall be determined based on the above guidelines.

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Chapter 6

Position Classification and Compensation Schemefor Teaching Positions in Elementary and SecondarySchools

There is no distinction between the duties of one teaching position and those ofother teaching positions. All are involved in classroom teaching. Hence,teaching positions are classified based on the personal qualifications of theincumbents thereof rather than based on the preponderant duties andresponsibilities and qualification requirements of the positions. This conceptdeviates from existing standards that work assignments determine theclassification and pay levels of positions. The deviation is made in the case ofteachers to encourage and reward initiatives for professional growth which arevital in a dynamic educational system. The progression to a higher positionlevel, which does not entail an increase in duties and responsibilities, recognizesthe increase in the academic preparation level.

6.1 The Teachers' Preparation Pay Schedule (TPPS)

The TPPS is the position classification and compensation scheme forteaching positions in elementary and secondary schools. It similarlyapplies to qulcance counselors/coordinators, school librarians who aresimilarly assigned teaching loads. It does not cover school nurses, schoolphysicians, school dentists and other school employees.

6.2 Components of the TPPS

6.2.1 Coverage

The TPPS applies to the followlnq classes of positions:

Class Level Salary Grade

Teacher I II. III 10 1112Master Teacher I II. III IV 16171819Head Teacher I II. III IV, V VI 13 14 15 16 17 18Special Education Teacher I. II III IV, V 13 14 15 16 17Special Science Teacher I. II III IV, V 13 16,19,22 24Guidance Counselor I. II III 10 11 12Guidance Coordinator I II III 13 14,15School Farmina Coordinator I II III 13 14 15Vocational Instruction Suoervisor I II III 16,1718

It also applies to certain classes of positions in the LibraryServices Group which have at least one teaching load:

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6.2.2 Basis of Classification of Positions


The TPPS does not apply to Librarian positions not assigned inschools.

The Department of Education (DepEd), in consultation with theDepartment of Budget and Management (DBM), maintains theTPP5, as shown below:

IIIIIIIII-I•IIIIIIIII:

I

6·2

Bacheior of Science in Education or equivalentBachelor of Science in Education or equivalent plus 20 units in Master ofArts or 20 years of teaching at Level I or Level iV in the case of HeadTeachersMaster of Arts***

***

OccupationalTeachers' Academic Preparation

GroupBSE* BSE + 20** MA***

Library School Librarian I, School Librarian II, School LibrarianServices SG-10 SG-11 III, SG-12

School, Teacher r, SG-10 TeacherII, SG-11 Teacher III, SG-12College andUniversity Head Teacherr, Head Teacher II, Head TeacherIII,Teaching SG-13 SG·14 SG-15

Head Teacher iV, Head TeacherV, Head TeacherVi,SG-16 SG-17 SG-18

Special Education Special Education Special EducationTeacher I, Teacher II, Teacher III,

SG-13 SG-14 SG-15

Guidance Guidance Counselor GuidanceCounselor I, II, SG-11 Counselor III,

SG-lO SG-12

School Farming School Farming School FarmingCoordinator I, Coordinator II, Coordinator III,

5G-13 SG-14 SG-1S

Vocational Vocational Vocationalinstruction instruction instruction

Supervisor I, Supervisor II, Supervisor III,SG-16 SG-17 SG-18

Class Level Salary Grade

School Librarian i, II, III 10,11,12


III

Classification and Compensation Scheme for Teaching Positions inElementary and Secondary Schools

6.2.2.1 Factors for Classification of Positions

Under the TPPS, the classification of the teachingpositions and others similarly covered are in accordancewith the principle of "equal pay for equal work, trainingand experience." The classification of such positionsare determined based on:

6.2.2.1.1 academic or educational preparation;

6.2.2.1.2 teaching experience including those in privateschools; and

6.2.2.1.3 extra-curricular activities for professionalgrowth.

6.2.2.2 Academic Preparation Prerequisites

The minimum requirements for the classification ofpositions to the levels established for each class ofpositions are as follows:

6.2.2.2.1 Level I, e.g., Teacher I, School Librarian I Bachelor of Science in Education degree orequivalent;

6.2.2.2.2 Level II, e.g., Teacher II, Guidance CounselorII - Bachelor of Science in Education degreeor equivalent, plus 20 graduate units; and

6.2.2.2.3 Level III, e.g., Teacher III, School LibrarianIII, Guidance Counselor III - Master's degree orequivalent.

6.2.2.3 Equivalents and Areas of Equivalents

The DepEd, in consultation with the DBM, establishes"equivalents" to the academic preparation prerequisitesand defines the "area of equivalents" and thecorresponding units or points. The existing equivalentsand areas of equivalents are as follows:

6.2.2.3.1 Table of Equivalents

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BasicPreparation

For Level I

Bachelor's degreefor teachers(BSE, BSEE, etc.)

For Level II

Bachelor's degreefor teachers plus20 years teaching experience(BSE+20)

For Level III

Category I(Equivalent Titles

or Degrees)

l(a) Bachelor ofPedagogy, Bachelor in LibraryScience, Bachelorof Science inNursing, etc.

(b) All otherBachelor's degree courses plusat least 18professionai education units

2(a) Courses inNo. l(a) abovepius 20 graduate units

(b) Courses inNo. l(b) abovewith at least 18professional education units plus20 graduateunits

Category II(YearsofTeaching)

Teacher's Certificate (2 or 3years) or equivalent with atleast 20 yearsteachingexperience

Bacheior's degree for teachersor equivalentwith at least 20years teachingexperience

CategoryIII

(CreditAllowances)

148 or moreunits (according to majoror minorsubject)

Bachelor's degree for teachers plus atleast 20 unitsof credit allowances

IIIIIIIIII•III

Master's degree Master of Science/in Education Arts

Bachelor's degree for teachersor equivaientwith at least 20graduate unitsplus 20 years ofteaching experience

Bachelor's degree for teachers or equivaient with atleast 20 graduate units,pius credit allowances. Thetotal of graduate unitsand credit allowances shouldbe equal to thenumber ofunits requiredto graduatewith an MAdegree.

6-4

IIII

III

IIIIIIIIII'•III1III1

II


6.2.2.3.2 Table of Areas of Equivalents

Professional Activities Units of Credit

1. Formal Training 1 unit per academicunit

2. Service in professional com-mitteesa. Workshop, seminar, 1 unit per 2S hours

conference, etcb. Special assignment from 1 unit per

the Director to perform assignment of notspecial educational less than 30 hoursactivity (assignment bydetail excluded)

3. Educational travel not for 2 units per 6study purposes (report to monthsbe submitted andevaluated)

4. Work experiencea. Trade (must be 5 units per year

functionally related toschool assignment)

b. camp counselor 1 unit per 2-weekcarnolno

5. In-service training on thenational level

a. Boy Scouting for scout 1 unit per training

masters periodb. Public administration or 1 unit per training

educational sunervision oeriod6. Teaching experience with

paid servicea. Public school 1 unit per 3 yearsb. Government summer '12 unit per 3-unit

school coursec. Private school prior to 1 unit per 5 years

assignment in publicschool

d. Private school courses 1 unit per 3 unitdifferent from subjects course, 112 unit pertaught in public schools annual high school

subject7. Authorship of educational 5 units

material excluding thesisand dissertations used toobtain a Master's orDoctor's deoree

8 Administrative and super-visory experiencea. Public school 1 unit per 2 yearsb. Private school 1 unit oer 4 years

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6.2.2.4 The Equivalents Record Form (ERF)

6.2.2.4.1 The ERF is a tool for determining theappropriate classification of a Teacherposition. It reflects the educationalpreparation, training, teaching experience,workshop and seminars for professionalgrowth undertaken by a teacher.

• The ERF contains information on positiontitle, unique item number and authorizedsalary in the current Personal ServicesItemization and Plantilla of Personnel(PSIPOP).

• Credits claimed as to educationalpreparation, years of teaching experiencein public or private schools andprofessional activities shall be itemizedand supported either by the original orcertified true copy of the teacher's specialorders, diploma or transcript of records.The authenticity of the documents such aseducational preparation and seminarsattended shall be certified by the schoolregistrar and the director of training,respectively.

• The allowable credits are computed on thebasis of the Table of Equivalents.

• The educational preparation, teachingexperience and credits allowed arematched with corresponding category inthe preparation and classification levels ofthe TPPS.

6.2.2.4.2 The processing of the ERF involves thefollowing steps:

• Role of the DepEd

'" The filling of the ERF can be initiatedeither by the schools division (SD) orthe teacher concerned.

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••II-.• •IIII

IIIIII

IIIIIIIIII'•IIIII1III1


• SO Initiative

1. The SO shall identify teacherswith 20 or more years ofteaching experience, evaluatethe duly certified servicerecords, prepare theCertification as to the names ofqualified teachers, and informthe teacher concerned that suchsubmission has been made onhis/her behalf.

2. In case of approval, the SOshall determine whether or notthe approved ERF is within thecut-off date. In case ofdisapproval, the teacher shall beinformed by the SO concerned.

Teachers retiring during theyear are not covered by the cutoff dates.

3. If within the cut-off date, theSO shall prepare a request forERF implementation which shallbe endorsed and submittedtogether with the duly certifiedservice records and Certificationas to the names of qualifiedteachers by the OepEd RegionalOffice (RO) to the OBM ROconcerned.

4. Upon receipt of the Notice ofOrganization, Staffing andClassification Action (NOSCA),the DepEd RO shall prepare theNotices of Salary Adjustment(NOSA) and the necessaryadjustment to the salaries of theteachers concerned.

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5. The SO shall issue the NOSA tothe teacher concerned.

• Teacher's Initiative

1. A teacher who has renderedless than 20 years of service buthas earned 20 masteral unitsshall prepare and submit his/herERF to the SO.

2. The ERF shall be evaluated bythe SO and post-audited by theOepEd RO concerned todetermine whether or not itmeets the required points.

3. The teacher shall be dulyinformed by the OepEd ROthrough the SO whether his/herERF is approved or disapproved.

4. Consequently, steps 2 to 5 ofthe SO Initiative are taken.

'" The flow chart for the processing ofERFs is shown in Annexes A and A-I ofthis Chapter.

• Role of the OBM

'" The OBM RO shall determine whetheror not there are available funds for theimplementation thereof. If none, thesame shall be returned to the DepEdRO with theinformation that the reclassificationmay be considered in the next budgetcycle.

'" If there are available funds, the DBMRQ shall prepare the correspondingNOSCA and issue the same to theOepEd RO. The salary adjustmentaccruing to the teachers concerned

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IIII,

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IIII

II


shall be charged against the lump-sumfor ERF implementation.

6.2.2.4.3 Specific Compensation Guidelines forTeachers with Approved ERFs

6.2.2.4.3.1 Movement in position level dueto the implementation of theERF is considered asreclassification, whichsimultaneously partaking thenature of promotion.

6.2.2.4.3.2 Allowable salaries of teacherswith approved ERFs

To determine the salary thatmay be authorized for teachersand other teaching relatedpersonnel who are appointed tohigher level positions due toapproved ERFs, the rules onpromotion under Item 1 ofAnnex C of NBC No. 458 may beadopted.

To illustrate:

A Teacher I whose salary is onthe 5th step of SG-10 due tostep increment based on lengthof service, with an approvedERF as Teacher II, SG-ll shallhave his salary adjusted to 3'dstep of SG-ll, applying therules of promotion.

From: Teacher I, SG-10 atP10,971 per month (5th

step)To: Teacher II, SG-ll at

Pll,068 per month (3'dstep)

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6.2.2.4.3.3 Grant of step increment due tolength of service

The reckoning date for thegrant of step increment shall bebased on the date ofappointment to the latestposition of the incumbent.Thus, step incrementspreviously earned by a teachershall no longer be credited in hisnew position. Likewise,teaching services not credited inthe ERF evaluation can nolonger be used in computing thestep increments of theincumbent in his reclassifiedposition.

6.3 Career Progression System for Public School Teachers

In addition to the TPPS, the Career Progression System for Public SchoolTeachers attaches a premium to classroom effectiveness and allowsteachers to remain in the classroom while advancing in status andcompensation. The system provides for equivalence in duties,recognition and compensation for whatever career line a teacherchooses.

6.3.1 Career Lines

6.3.1.1 For purposes of advancement, teachers are given theoption of choosing alternative career lines in schooladministration or classroom teaching.

6.3.1.2 At the base of the career system is the Teacherposition. Thereafter, a teacher may be promoted eitheras Elernentarv/Secondarv School Principal, following theschool administration career line, or as Master Teacher,which falls under the teaching career line.

6.3.2 Classroom Teaching Career Line (CTCL)

6.3.2.1 Executive Order No. 500 established a system of careerprogression and promotion for public school teachers.Four (4) levels of Master Teacher classes under theCTCL, were created as follows:

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IIIIII

•I

•'.•II

•III

•III

IIIIIII

/ /

I /

,-aI•.

IIIIIIIIII


Class SalarvGradeMaster Teacher I 16Master Teacher II 17Master Teacher III 18Master Teacher IV 19

6.3.2.2 There are established qualitative and quantitativecriteria for each level of Master Teacher. An applicantmust possess all the prescribed qualifications to beconsidered for a particular level which is measured interms of educational preparation, performance rating,and teaching experience.

6.3.2.3 There is, likewise, a quota system on the allowablenumber of Master Teacher positions in elementary andsecondary schools. The quota system as determined bythe DepEd, in consultation with DBM, is as follows:

6.3.2.3.1 For elementary schools: Total Master Teacherpositions shall not exceed 10% of the totalauthorized teacher positions in the district, towit:

• Master Teacher I positions shall notexceed 6.6% of the total number ofauthorized teaching positions.

• Master Teacher II positions shall notexceed 3.4% of the number of authorizedMasterTeacher I positions.

6.3.2.3.2 For secondary schools: One (1) MasterTeacher position regardless of level may beallowed per subject area with at least 5-7authorized teacher positions within theschool.

6.3.2.4 Attributes and Functions

The followinq attributes and functions have beenidentified for MasterTeacher levels:

6.3.2.4.1 All Master Teachers shall be administrativelyunder the school heads where they are

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assigned notwithstanding their rank andsalary.

6.3.2.4.2 Master Teachers shall have regular teachingloads.

6.3.2.4.3 Master Teachers shall guide other teachers inthe school or district towards improving theircompetencies as well as taking the lead in thepreparation of instructional materials.

6.3.2.4.4 Master Teachers shall serve as demonstrationteachers or teacher consultants in otherschools in the district.

6.3.2.5 Criteria

As provided under DECS Order No. 57, series of 1997,the requisites/qualifications needed for a candidate tobe considered for the Master Teacher position are asfollows:

6.3.2.5.1 MasterTeacher I

6.3.2.5.1.1 Permanent teacher;

6.3.2.5.1.2 Bachelor's degree for teachersor equivalent as provided in theMagna Carta for Public SchoolTeachers;

6.3.2.5.1.3 Very satisfactory performancerating for the last two years;

6.3.2.5.1.4 At least 3 years teachingexperience; and

6.3.2.5.1.5 At least 25 points in leadershipand potential, or has been ademonstration teacher in thedistrict level plus 15 points inleadership and potential.

6.3.2.5.2 MasterTeacher II

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I••IIIIIIII1\I



6.3.2.5.2.1 Master Teacher I for at leastone year;

6.3.2.5.2.2 Very satisfactory rating asMasterTeacher I;

6.3.2.5.2.3 Bachelor's degree for teachersor equivalent as provided in theMagna Carta for Teachers, pluscompletion of academicrequirements for Master of Arts;and

6.3.2.5.2.4 At least 30 points in leadership,potential and achievement; orhas been a demonstrationteacher in the division level plus20 points in leadership andpotential, provided the activitiesor accomplishments listed forthis purpose had not beencredited or used for similarpromotions.

6.3.2.5.3 MasterTeacher III

6.3.2.5.3.1 MasterTeacher II;

6.3.2.5.3.2 M.A. in education or equivalent;

The following are consideredM.A. equivalent:

• Bachelor's degree forteachers or equivalent plus20 years experience and atleast 20 M.A. units;

• Bachelor's degree forteachers or equivalent plusat least 20 graduate unitsand at least 18 creditallowances.

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6.3.2.5.3.3 Very satisfactory performancerating as Master Teacher II; and

6.3.2.5.3.4 At least 45 points in leadership,potential and achievement,provided the activities oraccomplishments cited for thispurpose had not been creditedfor an earlier promotion.

6.3.2.5.4 MasterTeacher IV

6.3.2.5.4.1 Master Teacher III;

6.3.2.5.4.2 At least an M.A. in Education,M.A. in Teaching or Masters inEducation;

6.3.2.5.4.3 Outstanding performance ratingas MasterTeacher III; and

6.3.2.5.4.4 At least 60 points in leadership,potential, and achievementsprovided the accomplishmentsand achievements cited for thispurpose had not been creditedfor an earlier promotion.

Requests for reclassification of teaching positions toMaster Teacher I and from Master Teacher I to MasterTeacher II shall be supported by the plantilla and thepertinent evaluation documents. It shall then bereviewed and verified by the DBM RO concerned,subject to the budget rules and regulations on releaseof funds prescribed under National Budget Circular No.303 and National Compensation Circular No. 24,respectively.

6.3.3 School Administration Career Line

The second career line is school administration which covers HeadTeachers and School Principals.

6.3.3.1 Item E (12), Section 7, Chapter I of Republic Act (RA)9155. provides that the selection, promotion anddesignation of school heads shall be anchored on the

6-14

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,

I'II1I

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.'••IIIIIIIII


principles of merit, competence, fitness and equality,rather than on the number of teachers/learningfacilitators and learners in the school.

6.3.3.2 Applicants for Head Teacher and Principal positionsmust possess executive and managerial competence, inaddition to the following criteria:

6.3.3.2.1 Performance

6.3.3.2.2 Experience and Outstanding Accomplishments

6.3.3.2.3 Education and Training

6.3.3.2.4 Potential

6.3.3.2.5 Psycho-social Attributes and Personality Traits

6.3.3.3 Promotion to higher Head Teacher (HT) and Principalpositions shall be an open ranking basis where meritand fitness are the main consideration and not theposition.

6.3.3.4 The detailed guidelines on the selection, promotion anddesignation of school heads are provided under DepEdAdministrative Order (AO) No. 85, s. 2003 datedNovember 27, 2003 (Annex B).

6.3.3.5 The modified qualification standards for Head Teacherand Principal positions are prescribed under Civil ServiceCommission (CSC) Resolution No. 040863 promulgatedon July 28, 2004 (Annex C).

6.4 Compensation Benefits of Teachers

6.4.1 Honoraria for Teaching Overload

Section 13 of RA No. 4670 (Magna Carta for Public SchoolTeachers) provides that the actual classroom teaching hours for ateacher shall not be more than 6 hours per day or 30 hours perweek. The number of teaching hours is designed to give teachersample time for preparation of lesson plan, correction of exercisesand other work incidental to their normal teaching duties.Teaching hours in excess thereof are paid honoraria. The rates,

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6.4.2 Proportional Vacation Pay

AR = Annual salary rate of each teacher proposed to be paidhonoraria

IIIIIII11-I '•1IIIIIIIII

0.000781 ARAR

= --------- 1.25 =1,600

AR= ------- T

W

6.4.2.5 The service credits earned by teachers may be used tooffset absences of teachers due to illness or to offsetproportional deduction in PVP.

6.4.2.1 Among the benefits unique to public school teachers isthe proportional vacation pay (PVP) whereby teachersare paid during the Christmas break and the summervacation.

6.4.2.4 Teachers earn service credits when they renderauthorized services during the vacation period,Saturdays, Sundays and holidays in the course of therequtar school year.

6.4.2.3 Those incurring absences without pay of more than 1V2 days are still entitled to PVP, computed in proportionto the number of days they have served during theschool year.

W = Total teaching hours (This is computed at 40 hours/weekmultiplied by 40 weeks or 1, 600 hours.)

6.4.2.2 Teachers who rendered continuous services in a schoolyear without incurring absences without pay of morethan 1 112 days are entitled to full salaries duringChristmas and summer vacation.

T = 1.25 or 125% of the teacher's remuneration for servicesin excess of 6 hours actual teaching per day but not morethan 2 hours.

Where:

PHTR

which shall be based on the Prime Hourly Teaching Rate (PHTR),shall be computed in accordance with the following formula:

IIIIIIIIII-•IIIIIIIIII


6.4.3 Hardship/Special Hardship Allowance

6.4.3.1 Hardship Allowance, as provided under Section 19 of RANo. 4670, is given to all teachers who are assigned tohardship posts whether resident or transient, on regularor temporary status of employment.

6.4.3.2 Hardship posts are public schools that are accessibieonly by hiking, animal ride or banca ride, partly orwholly. Schools that are directly accessible bymotorized land or water transport do not qualify ashardship posts.

6.4.3.3 Special hardship allowance is granted to teachersassigned to handle multi-grade classes.

6.4.3.4 A multi-grade teacher is defined as a public schoolteacher handling a class of two or more grades.Combined or multi-grade classes may be allowed at theprimary level, from Grades I to IV, if the school agepopulation for a given grade cannot meet the minimumrequirement of 15 pupils per class.

6.4.3.5 The hardship/special hardship allowance shall notexceed 25% of the basic pay of the teacher, and is inlieu of hazard duty pay.

6.4.4 One Salary Grade Increase for Retiring Public SchoolTeachers

6.4.4.1 As provided under Joint DECS, CHED, GSIS and DBMCircular No.1, series of 1997, all incumbents of publicschool teacher positions are entitled to one (1) salarygrade increase on the last day of service for retirementbenefit purposes. Similarly covered are positions whichfall within the purview of a public school teacher asdefined under Section 2 of RA No. 4670 and asamended/modified by RA No. 6758.

6.4.4.2 The one salary grade increase shall take effect on thelast day of the service of the retiring public schoolteacher. The salary of the retiring teacher shall beadjusted upward by one salary grade at the same stepof his/her previously assigned salary grade.

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Annex A

Flowchart for Processing ERFsSchools Division Initiative

III

Teacher Department of Education (DepEd)Schools Division (SD)

Identifies teacherswith 20 ormoreyears of teaching

serace

Regional Offices(RO)

DBM RO III

NextBudgetCycle

Prepares Certfication asto names of qualified

teachers Certification II

Determines jf withincutoff date

Within thecut offdate?

No

Yes

Prepares therequests for ERFimolementation

Next Budget(yde

No

Determines if retiringduring theyear

RetiringdUring the

year?

Yes

Endorses request

Transmits DBMdisapproval

Certification andendorsement letter

NoFunds

available?

Yes

I

•IIIII

NOSA NOSCA!NaSA

NOSCAINQSA

Prepares NOSAPrepares NOSCA andSARO; Mocfirlcatlon

effected in theGMIS

NasCA;SARO

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I

IIII

II


Annex A-I

Flowchart for Processing ERFsTeacher's Initiative

IIII

Teacher

Prepares andsubmits ERF

Department of Education(DepEd)Schools Division (SO)

Pre-evaluates theERF

RegionalOffices(RO)

Post-audits the ERF

Certification

DBM RO

Informs the teacherIII

letter

PreparesCertification astonames of qualified

teachers Certification

No Requiredpointsmpt?

yes

I•

Determines ifwithin cut off

date?

Determines ifretiring during

the year?

IIII

No

Withinthecutoff date

No

Yes

Prepares therequests for ERFimplementation

Retiringduringthe year

Yes

Endorsesrequest

Certlrkatton andendorsement letter

Yes

Fundsavailable?

Prepares NOSCA andSARO; Modification

effected in theGMIS NOSCA/SARO

No

PreparesNOSA

Transmits DBMdisapproval

NOSCA/NOSA

Receivessalary

adjustment

II

II

I 6-19

I

As statedEncl.:

Allotment: 1 _ (D.O. 50-97)

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•I

III

November 27, 2003

OFFICIALSPOLICYPROMOTION

Annex B

REPUBUKA NG PILIPINASREPUBLIC OF THE PHILIPPINES

KAGAWARAN NG EDUKASYONDEPARTMENT OF EDUCATION

Dep Ed Complex, Meralco Ave., Pasig City, Philippines

(SIGNED) EDIlBERTO C. DE JESUSSecretary


To be indicated in the Perpetual Indexunder the following subjects:

ReferenceDepEd Order No.1, s. 2003

2. Immediate dissemination of and compliance with this Order is directed.

1. Pursuant to the Implementing Rules and Regulations of R.A. 9155, the selection,promotion and designation of school heads shall be based on merit, competence,fitness and equality. It is based on these principles that the enclosed guidelines arehereby issued.

GUIDELINES ON THE SELECTION, PROMOTIONAND DESIGNATION OF SCHOOL HEADS

TO: UndersecretariesAssistant SecretariesRegional DirectorsSchools Division/City SuperintendentsHeads, Public Elementary and Secondary Schools

DepEd ORDERNo. 85 s. 2003

Tanggapan ng KalihimOffice oftn, Secretary



GUIDELINES ON THE SELEcrION, PROMOTIONAND DESIGNATION OF SCHOOL HEADS

I. Leadership Framework

Pursuant to Section 6.1, Rule VI of the Implementing Rules and Regulations of RepublicAct No. 91SS (Governance of Basic Education Act of 2001) there shall be a school head for allpublic elementary and secondary schools or a cluster thereof.

A school head is a person responsible for the administrative and instructionalsupervision of the school or cluster of schools. As such, a school head is expected to possessthe following leadership dimensions:

1. Education Leadership. The ability to lead in crafting a shared school visionincluding the development of curriculum policies and practices which providesuccess for all students;

2. People Leadership. The ability to work with various stakeholders; developeffective relationships with diverse individuals and groups; inspire the respect andcooperation of people and promote the development and effectiveness of peoplewithin the organization;

3. Strategic Leadership. The ability to expire complex issues from a globalperspective, to manage an educational enterprise, to focus resources and motivatepeople in the realization of the shared school vision.

It is within the framework of leadership that the succeeding guidelines on the selection,promotion, and designation of school heads have been formulated.

II. Basic Policies

1. The selection, promotion and designation of school heads shall be anchored onthe principles of merit, competence, fitness and equality.

2. Applicants for Head Teacher and Principal positions must possess executive andmanagerial competence, in addition to the following criteria:

I. Performanceii. Experience and Outstanding AccomplishmentsiiI. Education and Traininglv, Potentialv. Psycho-social Attributes and PersonalityTraits

Annex 1 presents the details on these criteria.

3. Policies pertaining to Principals

3.1 Aspirants for Principalship must pass a test to be considered for selectionand promotion.

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4.

5.


a. To qualify for the test, the aspirant must be any of the following:

;;. Master Teacher I for at least two (2) years;;. Master Teacher II for at least one (1) year;;. Head Teacher for at least one (1) year;;. Teacher-in-Charge for at least two (2) years;;. Teacher III for at least three (3) years;;. Teacher II for at least four (4) years;;. Teacher I for at least five (5) years

b. The test shall serve as a mechanism for evaluating the aspirants interms of the 3-dimensional leadership qualifications. It may consist ofpaper & pencil, simulation, etc.

c. The Department Central Office will set the standards for testing.

d. Test development and quality assurance will be provided by theRegional Office. The test administration will be division-based.

3.2 Those who pass the test shall form the pool of qualifiers from which shallbe drawn those who will undergo the training for Principalship.

3.3 Pending the development of the test, those who have successfullycompleted the Basic School Management Course (BSMC) and the StrategicManagement and Instructional Leadership Course for School Administrators(SMILE'CSA) being conducted by the National Educators Academy of thePhilippines (NEAP) will be exempted from the test requirement for a oneyear period reckoned from the date of the issuanceof this Order.

3.4 The ranking of candidates for Principal position shall be open to allqualified applicants/candidates.

3.5 The appointment of a school principal shall be non-station specific.

Policies pertaining to Head Teachers

4.1 Promotion to higher Head Teacher positions shall likewise be on an openranking basis.

4.2 The ranking of candidates to a Head Teacher position shall be open to allqualified applicant/candidates.

Policies pertaining to Teacher-in-Charge

5.1 The Schools Division Superintendent shall designate Teachers-In-Charge.

5.2 To be designated as Teacher-In-Charqe, a teacher must have teachingexperience of at least three (3) years.

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III.


Computation of Points

1. In computing the number of points for purposes of ranking the HeadTeacher/Principal, a specific number of points is assigned to each criterion asfollows:

Criteria Maximum No. of Points Total

Performance Rating 40 40

. Experience/OutstandingAccomplishments 10/25 35

Education/Training 10/10 20

Potential 2.5 2.5

Psychosocial attributes andPersonality traits 2.5 2.5

Total 100

2. In the evaluation of accornpllshrnent/s, the following matrix is suggested.

OutstandingMeasures Maximum

Accomplishment/s No. of Points

Outstanding Employee Award 5

Innovations 5

Research and Dev. Projects 4

Publication/Authorsh ip See Annex II 4

Consultancy/Resource 45peakership

Linkages & Resource 3Mobilization ./

TOTAL 25

Annex II presents the details on computation of points.

6-23

IManual on Position Classification and Compensation

Annex I I

I. Head Teacher

Following are the basic qualifications required of:

II. Principal

Note: Promotion to higher Head Teacher (HT) positions shall be on an open ranking basis where meritand fitness shall be the main consideration and not the position

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For Head Teacher and Principal: Training credited in the previous promotion will not beconsidered in succeeding promotion.

Note:

Criteria PI PII PIlI PIV

Education BEEd/BSE with 18 pro- BEEd/BSE + 6 units BEEd/BSE + 6 units BEEd/8SE + 9 unitfessional units in educa- of Management of Management of Managementtion or its equivalent

Training 8 hrs. of relevant training 8 hrs. of relevant 8 hrs. of relevant 8 hrs. of relevantraining training training

Experience MT I for at least 2 yrs.; or 1 yr. as Principal 1 yr. as Principal 1 yr. as PrincipalMT II for at least 1 yr.; orHT for at least 1 yr., orTIC for at least 3 yrs.; orTil for at least 4 yrs.; orTI for at least Syrs.

Performance VS for the last 3 yrs. VS for the last3 yrs. VS for the last 3 yrs. VS for the last 3vrs.

Criteria HTI HTII HTIII HTIV HTV HTV!

Education SEEd/BSE or BEEd/BSE or BEEd/BSE or BEEd/BSE or BEEd/BSE or BEEd/BSE orits equivalent its equivalent its equivalent its equivalent its equivalent its equivalentor Bachelors or Bachelors or Bachelors or Bachelors or Bachelors or Bachelorsdegree with degree with degree with degree with degree with degree with1B professlo- 18 protessio- 18 professio- 18 professio- 18 professio- 18 protessio-nal education nal education nal education nal education nal education nal educationunits units units units units units

Training 8 hrs, of 8 hrs. of 8 hrs. of 8 hrs. of 8 hrs. of 8 hrs. ofrelevant relevant relevant relevant relevant relevanttraining training training training training training

Experience 1 year asTICor 3 yrs.Teaching 1 year as HT 2 years as HT 3 years as HT 4 years as HT 5 years as HT

experience

Performance VS for the last VS for the last VS for the last VS for the last VS for the last VS for the last3 rating 3 rating 3 rating 3 rating 3 rating 3 ratingperiods periods periods periods periods periods

Annex II


Relevant experience consists of the performance of duties and functions relevant to thenext higher position over a period expressed in years with every year given a point butnot to exceed ten (10) points equivalent to 10 years.

COMPUTATION OF POINTS

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- 5 pts,- 4 pts.

- 1 pt.

- 3 pts.

- 5 pts.

- 3 pts.- 4 pts.- 5 pts.

- 1 pt.- 2 pts.

- 5 pts,

, 1 pts,- 2 pts.- 3 pts,- 4 pts.

Conceptualized an innovative work plan and properlydocumented and approved by immediate chief andattested by authorized regional/division official

Implementation of work plan has been startedWork plan has been implemented with documented

outputs

Awardee in the schoolNomination in the division/awardee in the districtNomination in the region/awardee in the divisionNomination in the Department/awardee in the regionNational awardee (Kapwa Award/Pagasa Award/

Presidential Award)

Conducted research at other levelsConducted research at the other school levelConducted research at the division level

Work plan or essential parts thereof adopted forwider implementation

Sole Authorship of a bookCo-authorship of a book

(Shall be divided by the number of authors)Articles published

. (Per article but not to exceed 4 pts.)

D. Research and Development Projects (5 points)

C. Research and Development Projects (5 points)

B. Innovations (5 points)

A. Outstanding Employee Award (5) points

Numerical Rating result multiplied by forty (40) per cent

III. Outstanding Accomplishments (25) points

II. Experience (10) points

I. Performance Rating (40 points)

1I1I

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IV.

V.

VI.

E. Consultancy/Resource Speakershlp in Training/seminars/Workshops/Symposia (5 points)

District levelDivision levelRegional levelNational levelInternational level

Education and Training (20 points)

A. Education (10 points)

Bachelors degree in EducationMa units

18 units24 units or completion of academic requirementsMA degree

B. Training (10 points)

Participant in 3 or more training activitiesFor at least 2 days

Co-chairmanship of a technical committeeChairmanship of a technical committeeCo-chairmanship of a planning committeeChairmanship of a planning committee

Potential (2.5 points)

Psychosocial attributes and physical characteristics (2.5 points)

- 1 pt.- 2 pts.- 3 pts.- 4 pts,- 5 pts.

- 4 pts.

- 6 pts,- 8 pts.- 10 pts.

- 2 pts.- 4 pts.- 6 pts.- 8 pts.- 10 pts,

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Annex C

RESOLUTION NO . 040863

6-27

WHEREFORE, foregoing premises, considered, the Commission Resolves to approve themodified qualification standards of the following positions in the Department of Education:

For Secondary School

Head Teacher I to VIPrincipal I to IV

For Elementary School

Head Teacher I to IIIPrincipal I to IV

An evaluation of DepEd's proposed modified qualification standards vis-a-vis theapproved minimum qualification standards of positions as provided in the 1997 RevisedQualification Standards Manual shows that the proposed modified qualification standards arehigher.

Policy No.2, Part I - General Policies of ese Me No. 030962 dated September 12, 2003specifically the 3'd paragraph provides that "Agencies are encouraged to set specific or higherstandard for their positions. These standards shall be submitted to the Commission forapproval, and once approved they shall be adopted by the Commission as qualificationstandards in the attestation of appointments of the agency concerned." (Underscoringsupplied).

Secretary De Jesus stated that the modification is anchored under DepEd's Guidelineson the Selection, Promotion and Designation of Schools Heads under DepEd Order No. 85, s.2003 pursuant to RA 9155, otherwise known as the Basic Education Act of 2001. Said Actprovides, among other things, that the selection, promotion and designation of school headsshall be based on merit, competence, fitness and equality. He likewise stated that that theproposed modified requirements are not lower than those provided under the CSC QualificationStandards.


Secretary Edilberto C. De Jesus of the Department of Education (DepEd) requests themodification of its 1995 approved qualification standards for the following positions:

POSITIONSG LEVEL EDUCATION EXPERIENCE TRAINING ELIGIBILITY

TITLE


Head 14 2 Bachelor's degree 1 year as 8 hours of RA 1080Teacher II in Elementary or HeadTeacher relevant

Bachelor's degree training(Teacher)

with 18 professio-nal educationunits

DE JESUS, Edilberto C.Re: Qualification Standards for Head

Teacher I to III and Principal I to IV (ForElementary School); Teacher I to VI andPrincipal I to iv (For Secondary School)Positions in the Department of Education

x---------------------------------------------------------ox

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POSITIONSG LEVEL EDUCATION EXPERIENCE TRAINING ELIGIBILITYTITLE

Head 15 2 Bachelor's degree 2 years as 8 hours of RA 1080Teacher III in Elementary or Head Teacher relevant

Bachelor's degree training (Teacher)with 18 professio-nal educationunits


Head 13 2 Bachelor's degree 1 year as 8 hours of RA 1080Teacher I in Elementary or Teacher-In- relevant

Bachelor's degree Charge or 3 training (Teacher)with 18 prcfesslo- years teachingnal education experienceunits with appro-priate field ofspecialization

Head 14 2 Bachelor's degree 1 year as 8 hours of RA 1080Teacher II in Elementary or Head Teacher relevant

Bachelor's degree training (Teacher)with 18 professio-nal educationunits with appro-priate field ofspecialization

Head 15 2 Bachelor's degree 2 years as 8 hours of RA 1080Teacher III in Elementary or Head Teacher relevant


Head 16 2 Bachelor's degree 3 years as 8 hours of RA 1080Teacher IV in Elementary or Head Teacher relevant


Head 17 2 Bachelor's degree 4 years as 8 hours of RA 1080Teacher V in Elementary or Head Teacher relevant

Bachelor's degree training (Teacher)with 18 professio-nal educationunits with appro-priate field of

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III

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specialization

Head 18 2 Bachelor's degree 5 years as 8 hours of RA 1080Teacher VI in Elementary or Head Teacher relevant



Principal I 18 2 Bachelor's degree MT I for at 8 hours of RA 1080in Elementary or least 2 yrs.; or relevantBachelor's degree MT II for at training (Teacher)with 18 professio- least 1 yr.; ornai education HT for at leastunits 1 yr.; or TIC

for at least 2years; or T IIIfor at least 3years; or T IIfor at least 4years; or T Ifor at least 5years

Principai II 19 2 Bachelor's degree 1 year as 8 hours of RA 1080in Eiementary or Principal relevantBachelor's degree training (Teacher)with 18 professio-nal educationunits + 6 units ofManagement

Principal 20 2 Bachelor's degree 2 years as 8 hours of RA 1080III in Elementary or Principal relevant

Bachelor's degree training (Teacher)with 18 professio-nal educationunits + 6 units ofManagement

Principal V 21 2 Bachelor's degree 3 years as 8 hours of RA 1080in Elementary or Principal relevantBachelor's degree training (Teacher)with 18 protesslo-nal educationunits + 6 units ofManagement

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Principal I 18 2 Bachelor's degree MT I for at 8 hours of RA 1080in Elementary or least 2 yrs.; or relevantBachelor's degree MT II for at training (Teacher)with 18 professlo- least 1 yr.; ornal education HT for at leastunits 1 yr.; or TIC

for at least 2years; or T IIIfor at least 3years; or T IIfor at least 4years; or T Ifor at least 5years

Principal II 19 2 Bachelor's degree 1 year as 8 hours of RA 1080in Elementary or Principal relevantBachelor's degree training (Teacher)with 18 professlo-nal educationunits + 6 units ofManagement

Principal III 20 2 Bachelor's degree 2 years as 8 hours of RA 1080in Elementary or Principal relevantBachelor's degree training (Teacher)with 18 professio-nal educationunits + 6 units ofManagement

Principal IV 21 2 Bachelor's degree 3 years as 8 hours of RA 1080in Elementary or Principal relevantBacheior's degree training (Teacher)with 18 professio-nal educationunits + 6 units ofManagement

RESOLVED further, that the above approved qualification standards shall be the basesof the Civil Service Commission in the attestation of appointments and other personnel actions.

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6·31

Quezon City, july 28, 2004.

(Signed) REBECCA A. FERNANDEZDirector IV

(Signed) KARINA CONSTANTINO-DAVIDChairman

(Signed) CESAR D. BUENAFLORCommissioner

Attestedby:


Let copy of this Resolution be disseminated to all Civil Service Commission Regional andField Offices.

(Signed) 1. WALDEMAR V. VALMORESCommissioner

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Chapter 7

Position Classification and Compensation Schemefor Faculty Positions in State Universities andColleges

Prior to the issuance of PD No. 985, State Universities and Colleges (SUCs)which were exempted from the coverage of the National Position Classificationand Compensation Plans adopted individual staff credentials and qualifications,position classification and pay plans. The disparities in pay and compensationamong similar comparable positions brought about by the different schemesadopted by the various SUCs gave rise to demoralization and dissension amongthe ranks of faculty members and further complicated the process ofcompensation administration in SUCs.

When the SUCs were placed within the ambit of PD No. 985, the need torationalize the academic ranks/salaries/advancement of faculty members inSUCs became apparent due to the application of varied faculty evaluationinstruments. As early as 1982, the Philippine Association of State Universitiesand Colleges (PASUC), together with the DBM, started deliberating on a schemeof upgrading/promoting qualified and deserving faculty members through aprocess of objective evaluation. This paved the way to the development andadoption of a Common Criteria for Evaluation (CCE) across programs anddisciplines which aimed to rationalize academic ranks and salaries.

National Compensation Circular (NCC) No. 33 was issued on January 2, 1985with retroactive effect on July 1, 1984. This Circular established the positionclassification and compensation scheme for faculty positions in SUCs. Sincethen, amendments of certain provisions including improvements of the CCEhave been introduced through NCC No. 68, NCC No. 69 and the latest, NationalBudget Circular (NBC) No. 461. NBC No. 461 is a revision and an update of NCCNo. 69 which was exclusively for the faculty positions in SUCs. Under NBC No.461, Commission on Higher Education (CHED)-supervised higher educationinstitutions (HEIs), Technical Education and Skills Development Authority(TESDA)-supervised Technical Education Institutions (TEIs) and sues arecovered.

7.1 Coverage

The Position Classification and Compensation Scheme For Faculty Positions(PCCSFP) covers all teaching positions involved in instruction, research andextension activities in all SUCs, CHED-Supervised HErs and TESDASupervised TEIs.

7-1

7-2

7.2.2.1 Major Factors and Maximum Points


1.2.1 The CCE Concept and Objectives

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rank andacademic

MaximumFactors Number of

Points

Educational Qualification 85

To motivate a faculty to upgrade his/hercompensation by improving his/herqualifications, achievements and performance.

7.2.1.5

7.2.1.4 To serve as basis for policy decisions for acceleratedfaculty development; and

To implement a standardized PCCSFP, it is imperative for all facultyto pass through a CCE that can distinguish the differentfaculty ranks within institutions, across institutions and acrossdisciplines and fields. The CCE has the following objectives:

7.2.1.1 To standardize faculty ranks among institutions;

7.2.1.2 To rationalize the salary rate appropriate to a facultyrank;

7.2.1.3 To have an instrument for generating the faculty profileacross SUCS, HEls and TEls;

7.2.2 The Point System

The CCE point system in determining faculty rank and sub-rank isas follows:

As part of the PCCSFP, a CCE is established which shall be the primarybasis for recruitment, classification and promotion of a faculty. The CCE isa set of factors consisting of services and achievements which establishesthe relative performance of a faculty in the institution for the period ofevaluation through the application of a point system in determining facultyrank and sub-rank. The new CCE which was developed by the CHED andPASUC places more emphasis on advancement and performance ratherthan on educational qualifications.

7.2 Common Criteria for Evaluation

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Classification and Compensation Scheme for Faculty Positions

Experience and Professional Services 2S

Professional Development, Ach ievement 90and Honors

TOTAL 200

The specific factors and quldelines for determining creditpoints are in Annex A of this Chapter.

7.2.2.2 Point Allocation Under NBC No. 461

Faculty Rank Sub-Rank SG Point Bracket

I 12 6S - BelowInstructor II 13 66 -76

III 14 77 - 87I 15 88 - 96

Assistant II 16 97 - 105Professor III 17 106- 114

IV 18 11S - 123I 19 124- 130II 20 131- 137

Associate III 21 138- 144Professor IV 22 14S - 151

V 23 152- 158I 24 159- 164II 25 165- 170

Professor III 26 171- 176IV 27 177- 182V 28 183- 188VI 29 189- 194

College/University 30 195-200Professor

7.2.2.2.1 The highest rank that can be allowed in HErsand TEIs is Associate Professor V.

7.2.2.2.2 The quota for the rank of Professor shall be20% of the total number of faculty positionsof each SUe.

7-3


7.3 Qualitative Contribution Evaluation

7.3.1 In addition to the CCE, promotions to higher rank and sub-rankshall be subject to Qualitative Contribution Evaluation (QCE). QCEis the process of determining the eligibility of a faculty candidate forthe particular rank and sub-rank indicated by the CCE.

7.3.2 Qualitative Contribution (QC) is the continuous improvementtowards excellence by a faculty member in all four (4) functionalareas of the institution, namely: instruction, research, extensionand production.

7.3.2.1 For those seeking promotion to the higher sub-rank ofInstructor and Assistant Professor, the QC shall be onTeaching Effectiveness.

7.3.2.2 For those seeking promotion to the Associate Professorrank, the QC shall be in any two (2) functional areaschosen by the candidate prior to any assessment year.

7.3.2.3 For those seeking promotion to the Professor rank, theQC shall be in any three (3) functional areas chosen bythe candidate prior to any assessment year.

7.3.3 For the QC of Instructors and Assistant Professors, a commonevaluation instrument is prepared by a joint committee of CHED,PASUC and TESDA. The evaluation is done by the facultyconcerned, his/her peers, his/her supervisor and his/her studentbeneficiaries.

7.3.4 For the QC of Associate Professors and Professors, a commonevaluation instrument is prepared by a joint committee of CHEDand PASUC. The evaluation is done by the ratee's client, by thedirect supervisor, by the stakeholders in the completed projects,and by his/her external and internal communities.

7.4 Accreditation

Accreditation is a screening process for validating the eligibility of a facultycandidate to the rank of Associate Professor or Professor. The processinvolves written exams and interviews, particularly on substantive issues/questions related to the field of specialization/ discipline of the candidate.

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7.5 Determination of Appropriate Faculty Rank and Salary

7.5.1 A faculty member who is assigned on the basis of the CCE and QCEto a sub-rank higher than his/her present rank, or subsequentlypromoted through presidential discretion, shall be given the rankand salary corresponding to that higher rank.

7.5.2 A faculty member who merited a higher rank based on the CCE butassigned a lower rank based on the QCE shall be given the rankand salary corresponding to that lower rank.

7.5.3 In the initial implementation of NBC No. 461, a faculty member whois assigned on the basis of the CCE and QCE to a sub-rank lowerthan his/her present rank shall retain his/her present rank andsalary.

7.6 Presidential Discretion

The Head of the SUC, HEI or TEl, may subsequently grant promotions tofaculty members for meritorious performance, provided that the aggregatenumber of sub-ranks involved in all such promotions shall not exceed 15%of the total number of current authorized full-time faculty membersannually, provided further that such upward movements shall be limitedto the highest sub-rank of the assigned rank as indicated in the CCE.Upward movements to Professor ranks in SUCs and to Associate Professorranks, in HEls and TEls shall similarly be subject to prior evaluation by theAccreditation Committee, to the requirement for appointment to suchranks, and to the quota system prescribed for Professors, in the case ofSUCs.

7.7 Appointment to Ranks Below Professor

7.7.1 Instructor I - Entry level, total of CCE points is 65 or less.

7.7.2 Appointment to the ranks of Instructor II to Assistant Professor IVshall be subject to the follOWing requirements:

7.7.2.1 CCE points of at least 66 for the higher sub-rank of theInstructor position and at least 88 for the AssistantProfessor position;

7.7.2.2 Earned MA degree for Assistant Professor II to IV; and

7-5


7.7.2.3 QC in instruction, otherwise known as TeachingEffectiveness.

7.7.3 Appointment to the rank of Associate Professor shall be subject tothe following requirements:

7.7.3.1 CCE points of at least 124;

7.7.3.2 Earned MAdegree;

7.7.3.3 QC in at least 2 of the 4 functional areas; and

7.7.3.4 Accreditation by a committee of experts constituted byPASUC for candidates entering the Associate Professor rankfor the first time; in the case of those in HEIs and TEIs.

7.8 Appointments to Professor Ranks

7.8.1 The minimum criteria for appointment to full Professor ranks are asfollows:

7.8.1.1 Education - This refers to the relevant doctoral academicdegree from a college or university of recognizedstanding either locally or abroad. However, in highlymeritorious and extremely exceptional cases as in areasof specialization or fields of discipline where there is adearth of doctoral programs or the same are not readilyavailable, the foregoing doctoral degree requirement maybe waived.

7.8.1.2 Productivity - This refers to significant outputs,contributions and applications and/or use of researchresults in commercial or industrial projects in relevantfields of applied and natural sciences and includes thefollowlnq:

7.8.1.2.1 Scientific articles in publications ofinternational circulation, and other works ofsimilar nature;

7.8.1.2.2 Discoveries, inventions and other significantoriginal contributions;

7.8.1.2.3 Books, monograms, compendiums and majorbodies of published work;

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7-7



7.8.2.2.4 Research recommendations transformed topublic policy benefiting the country;

publications ofand other works of

Scientific articles ininternational circulation,similar nature;

7.8.2.2.2

7.8.2.2.5 Supervision, tutoring or coaching of graduatescientists and technologists; and

7.8.2.2.3 Discoveries, inventions and other significantoriginal contributions;

7.8.2.2.1 Books, monograms, compendiums, and majorbodies of published work;

7.8.1.2.5 Such other criteria which the AccreditationCommittee may require as may be warrantedby new developments in science andtechnology.

7.8.1.2.4 Transformation of research recommendationsto public policy benefiting the country'straining of science graduates or significantcontribution to manpower developmentand/or science and technology, practicalapplication of research results in industrial orcommercial projects and/or undertakings; and

7.8.2.2 Earned doctorate, in the case of Professors IV to VI;where a doctorate is not normally part of careerpreparation, or where such doctoral program is rare asdetermined by CHED, the doctoral requirement may bewaived, provided that the candidate has an appropriatemaster's degree, and has earned 20 points in thefollowing areas:

7.8.1.3 Professional standing - This refers to the level ofacceptance and recognition in the academic community interms of professional, moral and ethical integrity.

7.8.2 The appointment to Professor ranks shall be subject to thefollowing requirements:

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III


7.8.2.2.6 Research results applied or utilized inindustrial and/or commercial projects orundertaking.

7.8.2.3 QC in at least 3 of the 4 functional areas; and

7.8.2.4 Accreditation by a committee of experts constituted byPASUC for candidates entering the Professor rank for thefirst time.

7.8.3 Limitations

The following guidelines set the limitations for appointment toProfessor ranks:

7.8.3.1 The number of Professor positions shall not exceed 20%of the total number of faculty positions in the SUCconcerned; and

7.8.3.2 An applicant who fails in the accreditation processincluding those who qualify as Professors but are inexcess of the quota for Professor ranks shall be appointedto the position of Associate Professor V.

7.9 Appointments to College/University Professor Ranks

7.9.1 The following are deemed qualified for appointment as College/University Professors:

7.9.1.1 Deserving faculty members, occupying Professor positionswho satisfy the qualification for accreditation under item7.9.5 hereof and duly accredited by the PASUCAccreditation Committee;

7.9.1.2 SUC Presidents and Vice-Presidents or their equivalentswho opt to receive the basic salary pertaining to theirassigned academic rank under the CCE, and those whoopt to return to teaching due to theirresignation/retirement not for cause before the expirationof their fixed terms of office provided that they havecomplied with the requirements prescribed forCollege/University Professors; and

7.9.1.3 SUC Presidents/Vice-Presidents who opt to return toteaching after the expiration of their fixed terms of office

7-8

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•


may be appointed as College/University Professorssubject to the provisions of NBC No. 461, insofar aspertinent, in addition to the slots available for deservingfaculty members.

Thereafter, any vacancy arising from the retirement/resignation of a faculty member appointed asCollege/ University Professor, shall not be filled untilsuch time that the SUC President/Vice-President similarlyappointed as College/University Professor hasretired/resigned from the government service.

7.9.2 The followinq are the requirements for appointment asCollege/University Professor:


7.9.2.2 Earned doctorate;

7.9.2.3 Professorial accreditation, in case of a faculty;

7.9.2.4 A pass from a Screening Committee, duly constituted byPASUC;and

7.9.2.5 QC in at least 3 out of the 4 functional areas.

7.9.3 Limitations

The following quldellnes set the limitations for appointment asCollege or University Professor:

7.9.3.1 Only one position of College Professor, per college, isauthorized for every 6 years, the total of which shall notexceed the number of authorized colleges and externalcampuses of the respective SUC;

7.9.3.2 Only one position of University Professor, per University,is authorized for every 6 years, the total of which shallnot exceed 5% of the total number of accredited fullprofessors in the university concerned; and

7.9.3.3 The classification of existing College Professor positionsat SG-29 whose incumbents were appointed based on theprevious point allocation under NCC No. 69 shall becoterminous with the incunibents. Hence, upwardmovements of incumbents of positions of College

7-9


Professor, SG-29, to the new rank of College/UniversityProfessor, SG-30, is not automatic. The salary grade ofincumbents thereof who were accredited under NCC No.69 shall remain at SG-29 until they qualify asCollege/University Professor based on the point allocationunder NBC No. 461.

7.9.4 Screening Process

Upon recommendation by the institution head concerned, allcandidates for the rank of College/University Professor shallundergo screening by an independent body, to be organized bythe Philippine Association of State Universities and Colleges(PASUC).

7.9.5 Qualifications for Accreditation as College/University Professor

7.9.5.1 He/She must be an outstanding scholar and scientist asshown in the quality of his/her publications andresearches in his/her principal field of study and in alliedfields; or he/she must have manifested outstandingperformance in his/her executive leadership role.

7.9.5.2 He/She must have expert knowledge in one field ordivision and familiar with at least one other subject withinanother division.

7.9.5.3 He/She must be known for intellectual maturity andobjectivity in his/her judgment.

7.9.5.4 He/She must have a high reputation among his/hercolleagues and other scholars for his/her mastery of thesubject of his/her specialization.

7.9.5.5 Recognition and esteem could be manifested in thefollowing ways:

7.9.5.5.1 His/her contributions to the advancement ofhis/her fields of specialization are recognizedby colleagues, here and abroad.

7.9.5.5.2 He/She is published in the most respectedlearned journals in his/her field ofspecialization.

7.9.5.5.3 His/Her works are worldly acclaimed and

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I

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7-11


provoke spirited discussions among scholars,often from various disciplines.

7.9.5.5.5 He/She is accorded various forms of honors(awards, chairs, titles, etc.),

Associate Professor I, SG·19Assistant Professor III, SG-17Assistant Professor I, SG-15

Examples:

Secondary School Principal II, SG-19Master Teacher II, SG-17Head Teacher III, SG-lS

7.10.3 The initial faculty ranks shall serve as bases for futuremovements/promotions to higher level positions. Should theensuing evaluation under NBC No. 461 result in thedowngrading of the initial ranks, the faculty concerned shallretain his/her assigned rank and salary grade at conversion untilhe/she qualifies for a higher rank.

7.9.5.5.4 He/She is often invited to other universitiesand scholarly gatherings for the originality ofhis thoughts.

7.10.4 Teaching positions handling laboratory classes in teachereducation courses may be converted/retitled to faculty positionsprovided they serve as critic teacher in such teacher educationcourses and each attends to at least three (3) practicumstudents at the senior level.

7.10.2 All positions of Teacher I, SG-l0, Teacher II, se-n. andTeacher III, SG-12, shall be automatically converted/retitled toInstructor I, SG-12.

7.10.1 To preclude position downgrading implications, the existingteaching/teaching related positions integrated with the staffingpattern of newly converted SUCs shall be initiallyconverted/retitled to their lateral equivalent SUC facultypositions based on salary grades without the need for priorevaluation under NBC No. 461.

7.10 Conversion of Teaching and Teaching-RelatedPositions in CHED-supervised HEIs and TESDAsupervised TEIs Integrated into SUCs

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7.11 Role of Agencies in the Implementation of NBC No.461

7.11.1. Role of SUCs, HEIs and lEIs

The heads of sues, HEIs and TEIs shall submit the PersonalServices Itemization and Plantilla of Personnel (PSIPOP).

reflecting the modifications in rank/sub-rank and thecorresponding salary adjustments of faculty members concernedtogether with the CCE Computer Print-out and pertinentevaluation documents.

7.11.2. Role of DBM

The DBM Regional Offices (ROs) shall verify and post-audit thePSIPOP. The DBM ROs shall then prepare the Notice ofOrganization, Staffing and Compensation Action (NOSCA)reflecting the changes in the rank/sub-rank and salaries offaculty members concerned in the respective institution.

7.12 Evaluation Cycle

As a matter of policy, the evaluation may be undertaken every odd yearfor SUCs. In the case of HEIs and TEIs, the evaluation may beundertaken every even year.

7.13 Additional Compensation for Faculty

7.13.1 Honoraria for Teaching Overload

Faculty members are entitled to honoraria for services renderedin excess of the regular teaching load. Honoraria shall be basedon the Prime Hourly Teaching Rate (PHTR) which shall becomputed as follows:

7.13.1.1 For undergraduate program

AR ARPHTR =--------T = -------- x 1.25 =0.000781 AR

W 1600

Where:

AR = annual salary rate of each faculty proposed to be paidhonoraria

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W = Total teaching hours (40hrs/week multiplied by 40weeks or 1600 hrs.)

T = 1.25 or 125%of the faculty's remuneration forservices in excess of 6 hours of actual teaching perday but not more than 2 hours

7.13.1.2 For graduate program

7.13.1.2.1 For faculty members with Bachelor'sdegrees and with special vocationalpreparation

ARPHTR = --------- x 1.5 =0.0012 AR

1,296

7.13.1.2.2 For faculty members with Master'sdegrees

PHTR = 0.0014 AR

7.13.1.2.3 For faculty members with DoctorateDegrees

PHTR =0.0015 AR

7.13.1.3 Reduced Teaching Load for Faculty Assignedwith Workload Other than Teaching

In the determination of the load of a faculty who isgiven assignments other than teaching, the followingallowable percentage weights are adopted:

• 25% of the official time of faculty membersconcerned shall be credited to actual teachingload; and

• 75% of the official time of faculty membersconcerned shall be allotted for workload other thanteaching in connection with research andextension functions, or as a Dean/DepartmentHead or Director.

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7.13.2 Representation and Transportation Allowances (RATA)

Faculty members who are designated as Vice- Presidents/Deans/Directors/Department Heads are authorized RATA based on theirrank equivalence at the rates provided in the annual GeneralAppropriations Act (GAA).

7.13.2.1 Vice-Presidents

SUC Level Rank Equivalence

4 Bureau Director3 Assistant Bureau Director2 Bureau Regional Director1 Bureau Assistant Reqional Director

7.13.2.2 Deans equivalent to Assistant Bureau RegionalDirector

7.13.2.2.1 Designated Dean of the Graduate School withat least a Master of Arts/Master of ScienceProgram with 15 faculty members.

7.13.2.2.2 Designated Deans of Colleges with at leastfour (4) degree programs and a teachingcomplement of 40 full-time faculty members.

In case the SUC cannot meet the minimumnumber of programs required, it may still beentitled to a Dean, if it meets the following:

No. of No. of Full-TimeProQrams Faculty Members

4 403 502 601 70

7.13.2.3 Directors/Department Heads equivalent to Chiefsof Division

7.13.2.3.1 Designated Director of Research Services,with at least P500,OOO appropriation forresearch service function; when noauthorized research function in the GAA, the

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sue to have at least 10 research projectswith a total cost of P500,000 per annum.

7.13.2.3.2 Designated Director of Extension Services,with at least P500,000 appropriation forextension service function; when noauthorized extension services function in theGM, the sue to have at least 10 extensionservices projects with a total cost of P500,000per annum.

7.13.2.3.3 Designated Director of Auxiliary Services,provided the sue has a yearly income fromits operations of at least P60,000 and at least7 personnel involved in such incomegenerating projects.

7.13.2.3.4 Designated Director of each satellite campus/branch/center/institute, duly mandated bylaw, provided each campus/branch/center/institute has a complete administrative staff,l.e., at least a budget officer, anaccountant/bookkeeper, an administrativeofficer/administrative assistant, a supplyofficer/property custodian, a cashier/disbursing officer and other support positionssuch as clerks, janitors and security guardsand at least 1,000 students in the tertiarylevel.

7.13.2.3.5 Designated Director of Student AffairsServices for SUCs with at least 4,000 collegestudents.

7.13.2.3.6 Designated Department Heads of differentdepartments/colleges, each one having atleast 4 degree programs with each programdifferentiated from each other by 33% (thedistinction of the programs to be certified bythe CHED).

7.13.3 Compensation offaculty/non-faculty members designatedas Vice- Presidents (VP)

7.13.3.1 Faculty and non-faculty members who are designatedas VPs shall be entitled to the difference between their

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present salaries and the 1st step of the salary grade ofthe VP positions corresponding to the level of the suesconcerned. Said salary differentials shall form part oftheir actual salaries as designated VPs. The year-endbenefits (YEB) and retirement and life insurancepremiums (RLIP) shall be adjusted accordingly duringtheir periods of designation.

7.13.3.2 A designated VP who is already receiving a salaryhigher than the 1st step of a permanent VP positionshall only be entitled to the corresponding RATA for theposition. In no case shall the designee's basic salaryplus the salary differential exceed the hiring rateprescribed for a permanent VP position for theparticular sue level.

7.13.3.3 The aggregate salary received during the designationcannot be used as previous salary for purposes offuture appointment. It shall not be considered forpurposes of the computation of terminal leave benefits(TLB).

7.13.3.4 During the period of designation, the VP shall continueto be entitled to step increment in his/her regularposition but not as VP. In case his/her step increment inhis/her lower position overtakes the 1st step of the VPposition, he/she shall be allowed to receive the highersalary.

7.13.3.5 In the event that the designation, being of a temporarynature, is revoked by the Governing Board of the sueconcerned, he shall revert to his/her salary in his/herregular position plus any step increment he/she earnedduring the period of designation.

7.13.4 Night Pay of Faculty/Non-Faculty of the PolytechnicUniversity of the Philippines (PUP)

7.13.4.1 The pup is authorized by law to compensate its facultyand non-faculty including those from outside of theUniversity for night services rendered on top of theirregular services.

The night service is considered as a separate anddistinct program from the regular 8-hour service. Thenight pay does not partake of the nature of overtime

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pay which is not part of basic salary. The night paypartakes more of the nature of basic salary, as a matterof right for recompense of services rendered in thenight program of the University.

7.13.4.2 The night pay, therefore, is integrated into the basicsalaries of the University's employees for purposes ofretirement benefits. This authority, however, isapplicable only to PUP.

7.13.5 Step Increment of Faculty Members

7.13.5.1 In cases of promotion or movements from onerank/sub- rank to another, the step increment earnedby a faculty member in his/her previous faculty rankcannot be carried over to his/her salary in the higherlevel faculty rank. His/Her next step increment shall bereckoned from the date of his/her appointment to thehigher level faculty rank.

7.13.5.2 In case of conversion of a teaching position to a facultyrank, the step increment earned by a teacher in his/herprevious position cannot also be carried over to theconverted faculty rank. His/Her step increment shall bereckoned from the date of his/her appointment to thenewly converted faculty rank.

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AnnexA

Specific Factors and Guidelines for Determining Credits PointsUnder the Common Criteria for Evaluation

1. Educational Qualifications ----------------------------------- 85 pts.

1.1 Highest relevant academic degree or educational attainment withthe following maximum points credits

1.1.1 Doctorate Degree 851.1.2 Master's Degree .., 651.1.3 LLB and MD 65

The MD shall be considered a Doctorate degree if theholder is teaching in a College of Medicine

1.1.4 Diploma course (above a bachelor's degree).. 551.1.5 Bachelor's degree (4 years) 45

In the case of a Bachelor's degree which is more than 4years, additional credit of 5 points is given for every yearover 4 years

1.1.6 Special Courses

• 3-year post secondary course 30• 2-year post secondary course 25

1.2 Additional equivalent and relevant degree earned

1.2.1 Additional Master's degree .41.2.2 Additional Bachelor's degree 3

An additional equivalent and relevant degree earnedrelated to the present position refers to another degree onthe same level as the advanced degree that the faculty hasalready earned.

Relevance is the applicability of the degree to teaching andto the subjects the faculty is teaching, or the duties andfunctions other than teaching which the faculty performs.

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For example, a holder of an M.s. in Math acquired a degreein M.S. Physics. However, an M.A. holder, who acquired 2bachelor degrees like A.B., BSE, shall be credited only forhis/her M.A. degree.

1.3 Additional credits earned

1.3.1 For every 3 units earned toward a higher approved degreecourse (maximum of 10 pts.) 1

2. Experience and Professional Services-------------------------------- 25 pts,

The services and experiences of a faculty who is designated to anadministrative position like Vice-President, Dean, Director, etc., shall becredited only once, whichever is highest, within the period of his/herdesignation.

2.1 For every year of full-time academic............... ..................... 1service in a state institution of higherlearning

Academic service refers to teaching in college or doing researchand extension functions.

A year means at least 2 semesters.

Full-time service means the official full-time equivalent load(FfEL) hours of actual teaching or its equivalent in other functionsapproved by the institution's Board of Regents/Board of Trustees.

State institution of higher learning refers to a chartered sue,CHED-Supervised HEI or TESDA-Supervised TEl whose mainfunction and responsibility is tertiary education and which offersdegree programs.

2.2 For every year of full-time academic. 0.75service in an institution of higherlearning other than SUCs, CHED-Supervised HEls and TESDA-Supervised TEls;service in a public or private research institution

Academic service refers to teaching in the tertiary level in aninstitution of higher learning which is not a SUC, CHED-SupervisedHEI or TESDA- Supervised TEl, or doing research on aprofessional level in a research institution.

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2.3 Forevery year of administrative designation as:

a. President.. .3.0

b. Vice-President.. 2.5c. Dean/Director/School Superintendent... 2.0d. Principal/Supervisor/Department... 1.0

Chairperson/Head of Unit

2.4 For every year of full-time industrial/agricultural/teachingexperience as:

a. Engineer, Plant/Farm Manager 1.5b. Technician 1.0c. Skilled Worker 0.5

2.5 Forevery year of experience as:

a. Cooperating Teacher 1.5b. Basic Education Teacher 1.0

3. Professional Development Achievement and Honors 90 pts.

3.1 Innovations, patented inventions, publications and other creativeworks (maximum of 30 pts.)

3.1.1 Forevery cost and time-saving 1 to 7innovation, patented inventionand creative work as well asdiscovery of an educational,technical, scientific and/orcultural value

Sub-categories under 3.1.1 are as follows:

A. Inventions

These are original patented (or must have patent pending)works which have direct contribution to education, science andtechnology. The basis for the weight is the patent score.

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B. Discoveries

Commercial utility on:


The accrediting bodies for these factors on the internationaland national scale are:

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Credits

40% of 7 (0.4 x 7)

60% of 7 (0.6 x 7)

Credits

Multiply patent by weightaccording to utility

Multiply patent score byweight assigned accordingto criterion of utility

Criteria

2. Evidence of wide dissemination; e.g. exhibits, publications

1. Originality, educationalimpact, documentation

For the institutional level, a University Committee shall be theaccrediting body. The patent paper/document must bepresented to ascertain patent score. Credit points are dividedequally among 2 or more individuals claiming credit for thesame invention.

A discovery must be the first of its kind or not of commonknowledge. It shall be the result or product of the research ofan individual or a group of faculty.

• Science and technology DOST• Education DECS/CHEDfTESDA

• an international scale .7• a national scale .5• institutional level 2

Criteria

Per invention or discovery the following additional criteria andpoint allocations are prescribed:

2. If patent pending

1. If patented

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Textbooks, including Science and Technology and references

The factors and their weights are:

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25% of 1 - 7 pts.25% of 1 - 7 pts,25% of 1 - 7 pts.25% of 1 - 7 pts.

1. Originality2. Acceptability and recognition3. Relevance and value4. Documentation and evidence

of dissemination

Role Tertiary High School Elementary

Single author 7 pts. 5 pts, 4 pts.Co-author 5 3 2Reviewer 4 2 1Translator 4 2 1Editor 3 2 1Compiler 2 1 1

3.1.3 For every scholarly research/monograph/educationaltechnical articles in a technical/scientific/professionaljournal

a. International .5b. National. 3c. Local 2

Where there are more than one proponent, the points are tobe divided equally among them. If only one factor, e.g., (1),is satisfied, credit is awarded only for that factor.

3.1.2 For every published book, original, edited, or compiled,copyrighted/published within the last 10 years

a. As original author .3 - 7b. As co-author 2 - 5c. As reviewer 1 - 4d. As translator 1 - 4e. As editor 1 - 3f. As compiler 1 - 2

C. Creative work has to satisfy one or more of the followingcriteria:

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3.2.1 Training and Seminars (Maximum of 10 pts.)


3.2.1.3 For participation in conferences, seminars,workshops

materialfor

FullHalf

Credit

Single author or makerCo-author, co-maker

a. International... 3b. National 2c. Local. 1

3.2.1.2 For certified industrial, agro-industrial ....1/120hor fishery training (maximum of 5 pts.)

3.2.1.1 For every training course with a duration of atleast one year (Pro-rated for less than a year andnot to exceed 10 pts.)

a. International.. 5b. National. 3c. Local. 2

For credits to be granted, as sample of the material and acertification by the College/Department as to its usefulnessand acceptability for instruction must be presented.

Under this item are approved and published sets ofcomplete modules, laboratory manuals, operation manuals,workbooks, teaching quldes, including software, prototypeand computer-aided instruction materials. Syllabi, flipcharts, compiled copies of machine-copied documents,mock-ups are not considered under this item. Thosewhich can be credited are approved by the department orcollege for instructional purposes.

3.1.4 For every instructional manual/audio-visualdeveloped and approveduse 1-3

3.2 For expert services, training and active participation inprofessional/technical activities (Maximum of 30 pts.)



3.2.2 Expert services rendered (Maximum of 20 pts.)

3.2.2.1 For serving as a short-term consultant/expert inan activity of an educational, technological,professional, scientific or cultural nature (foreignor local) sponsored by the government or otheragencies

a. International................................................ 5b. National............ 3c. Local 2

3.2.2.2 For services rendered as coordinator, lecturer,resource person or guest speaker in conferences,workshops, and/or training courses

a. International. 5b. National..................... 3c. Local... 2

3.2.2.3 For expert services as adviser in doctoraldissertations, masteral and undergraduate theses(maximum of 10 pts.)

a. Doctoral dissertation l.OOb. Masteral thesis 0.50c. Undergraduate thesis 0.25

3.2.2.4 For certified services as reviewer/examiner in theProfessional Regulations Commission (PRC) or inthe Civil Service Commission 1

3.2.2.5 For expert services in accreditation work asmember of the Board of Directors, member ofthe Technical Committee or ConsultantGroup 1

3.2.2.6 For expert services in trade skill certification....1

3.2.2.7 For every year of service as coach/trainer insports or adviserof student organization..........1

3.3 Membership in professional organizations/honor societies andhonors received (maximum of 10 pts.)

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3.3.1 For current individual membership in relevant professionalorganization(s)

a. Learned SocietyFull member.......................................................... 2Associate member................ 1

b. Honor Society.............. 1c. Scientific Society................................................... 1d. Professional

Officer.................................... 1Member 0.5

3.3.2 For undergraduate academic honors earned:

Summa Cum Laude.................. 5Magna Cum Laude........................... 3Cum Laude................................................................. 1

3.3.3 Scholarship/Fellowship - This may be degree or nondegree granting.

a. International, competitiveDoctorate....... 5Masteral............................................................... 4Non-Degree...... 3

b. International, non-competitiveDoctorate... 3Masteral............................................................... 2Non-Degree......... 2

c. National/Regional, competitiveDoctorate.. 3Masteral.............................................................. 2Non-Degree........................................................ 1

d. National/Regional, non-competitiveDoctorate... 2Masteral............................................................. 1

e. Local, competitive or non-competitive

3.4 Awards of distinction received in recognition of achievements inrelevant areas of specialization/profession and/or assignment ofthe faculty concerned

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a. International............................................ 5b. National/Regional......................................................... 3c. Local............................................................................. 2

3.5 Community outreach (maximum of 5 points)

3.5.1 For every year of participation in service-orientedprojects in the community 1

3.6 Professional examinations

3.6.1 For every relevant licensure and other professionalexaminations passed (maximum of 10 pts.)

a. Engineering, Accounting, Medicine,Law, Teacher's Board, etc................................. 5

b. Marine Board/Seaman Certificate;Master Electrician Certificate, Master PlumberCertificate, Plant Mechanic Certificate;Professional Radio OperatorCertificate... 2

c. Other trade skill certificate...... 1

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Chapter 8

Compensation Scheme for Foreign Service Personnel

In pursuance of an independent foreign policy, Republic Act (RA) No. 7157,"Philippine Foreign Service Act of 1991," was enacted on September 19, 1991,to reorganize and strengthen the Philippine Foreign Service. One of itsobjectives is to provide suitable salaries, allowances and benefits that willattract personnel from all walks of Philippine life and to appoint persons topositions in the Foreign Service solely on the basis of merit and demonstratedcapability in the promotion of national interests.

8.1 Coverage

The compensation scheme established under RA No. 7157 covers thefollowing classes of positions under the Foreign Service Group:

Classes Salary Grade

Foreiqn Service Staff Employee III 5Foreign Service Staff Employee II 7Foreiqn Service Staff Emplovee I 9Foreign Service Staff Officer IV 11Foreiqn Service Staff Officer III 15roreicn Service Staff Officer II 18Foreiqn Service Staff Officer I 22Foreign Service Officer, Class IV 22Foreign Service Officer, Class III 23Foreign Service Officer, Class II 24Foreiqn Service Officer, Class I 25Counsellor 26Chief of Mission Class II 27Chief of Mission, Class I 29

8.2 Designations When Assigned Abroad

When assigned abroad, Foreign Service Officers shall be commissionedas diplomatic or consular officers, or both. All official acts of theseofficers shall be performed under such commissions. Their diplomaticand consular titles, however, shall be coterminous with their assignmentsat the foreign posts. When in the foreign service, their designations areas follows:

8.2.1 A Chief of Mission shall be assigned as ambassador extraordinaryand plenipotentiary to head a diplomatic mission or as deputy

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head of mission or as consul general to head a consularestablishment.

8.2.2 A Counsellor (Career Minister) shall be assigned as career ministerin a diplomatic mission, or as consul general to head a consularestablishment.

8.2.3 A Foreign Service Officer, Class I, shall be assigned as firstsecretary in a diplomatic mission or consul in a consularestablishment.

8.2.4 A Foreign Service Officer, Class II, shall be assigned as secondsecretary in a diplomatic mission or consul in a consularestablishment.

8.2.5 A Foreign Service Officer, Class III, shall be assigned as thirdsecretary in a diplomatic mission or vice-consul in a consularestablishment.

8.2.6 A Foreign Service Officer, Class IV, shall be assigned as thirdsecretary in a diplomatic mission or vice-consul in a consularestablishment.

In a diplomatic post where there is a consular section, Foreign ServiceOfficers may be designated as both diplomatic and consular officers.

8.3 Designations When in the Home Office

When in the Home Office, Foreign Service Officers are designated asfollows:

8.3.1 A Chief of Mission shall be designated as assistant secretary whenassigned to head any of the principal offices of the Department ofForeign Affairs (DFA).

8.3.2 A Counsellor (Career Minister) may be designated as executivedirector of an office.

8.3.3 A Foreign Service Officer, Class I, may be designated as divisiondirector.

8.3.4 A Foreign Service Officer, Class II, Class III, or Class IV, may bedesignated as assistant division director.

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8.3.S A Foreign Service Officer in any class, including chiefs of missionand career ministers, may be designated as special assistant tothe Secretary or to the Undersecretary of Foreign Affairs.

8.3.6 A Foreign Service Officer below the rank of chief of mission maybe designated as principal assistant in any office.

Any assignment in the home office requiring a rank higher than theactual rank of the officer assigned shall be in an acting capacity.

8.4 System of Allowances

8.4.1 Allowances When Assigned Abroad

Foreign Service personnel who are assigned in foreign posts areentitled to the following allowances as provided under RA No.71S7:

8.4.1.1 Overseas Allowance (OA)

8.4.1.1.1 Purpose of OA - It is granted to ForeignService personnel who are citizens of thePhilippines to adjust their take home paytaking into account the:

• changes in the cost of living abroadwhich arise from changes in foreigncurrency conversion rates;

• differentials in the cost of livingbetween the Philippines and foreignposts; and

• extraordinary and necessary expenses,not otherwise compensated for, whichare incurred by officers or employeesin the foreign posts.

8.4.1.1.2 Basic Annual Rates of OA - The basic annualrates of OA are indicated in Annex A of thisChapter.

8.4.1.1.3 Indices for OA - The DFA indices for OAindicated in Annex B of this Chapter shall be

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used to compute the OA at the post ofassignment.

8.4.1.1.4 OA for Husband and Wife - The husbandand wife who are assigned in the same postshall be entitled to separate OAcorresponding to each of their respectiveranks.

8.4.1.1.5 Conditions for Grant of OA - The grant ofOA shall be in accordance with theprovisions of Section 66 of RA No. 7157 andsubject to the condition that nobody shallsuffer a reduction as a result of the revisionof the rates/indices. In case of reduction,the rates shall apply prospectively and thepersonnel concerned shall continue toreceive their present OA for the duration oftheir tour of duty at the post.

8.4.1.1.6 OA for Personnel Assigned at HardshipPosts - Personnel assigned in hardshipposts, as may be determined by the DFASecretary, shall receive an additional 5%increase in their OA to meet other expensesbrought about by dangerous, unhealthy orexcessively adverse living conditionsprevailing at post, subject to the availabilityof funds.

8.4.1.1.7 OA for Personnel on Temporary Assignment- Foreign service personnel assignedabroad, including chiefs of mission, who aredetailed to another post shall, for theduration of the detail, be entitled to the OAbased on the index of the post where theyare temporarily assigned.

8.4.1.1.8 Review and Adjustment of OA Rates - Thebasic annual rates of OA may be adjustednot oftener than once a year, as determinedby the President, upon the recommendationof the Permanent Committee created underSection 67, RA No. 7157, consisting of theDFA Secretary, the Department of Budget

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and Management Secretary and the BangkoSentral ng Pilipinas Governor.

8.4.1.1.9 Index of Newly Opened Post - In the caseof a newly opened foreign service postwhich index has not yet been fixed, theindex of the nearest post in terms ofeconomic conditions shall apply, pendingExecutive approval of an appropriate indexfor the new post.

8.4.1.2 Living Quarters Allowance (LQA)

8.4.1.2.1 Purpose of LQA - It is granted to foreignservice personnel to enable them to rentand maintain quarters befitting theirrepresentative capacities.

8.4.1.2.2 Basic Annual Rates of LQA - The basicannual rates of LQA which are commutableare as indicated in Annex A of this Chapter.

8.4.1.2.3 Indices for LQA - The DFA indices for LQAindicated in Annex B of this Chapter shall beused to compute the LQA at the post ofassignment.

8.4.1.2.4 Conditions for Grant of LQA - The grant ofLQA shall be in accordance with theprovisions of Section 65 of RA No. 7157 andSUbject to the condition that nobody shallsuffer a reduction as a result of the revisionof the rates/indices. In case of reduction,the rates shall apply prospectively and thepersonnel concerned shall continue toreceive their present LQA for the duration oftheir tour of duty at the post.

8.4.1.2.5 Classification of Family Status - Paymentof the LQA shall be based on the followingclassification of foreign service personnel:

• With family - if living at the post ofassignment with the spouse or at leastone (1) qualified dependent child whohas not reached 21 years of age

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• Without family - if single, widow, orwidower, or legally separated, andliving without dependent

Unmarried children who are mentallyor physically handicapped as attestedto by a medical certificate, incapable ofsupporting themselves and living withthe officer or employee abroad, shallbe considered, for this purpose,regardless of age, as dependents.

8.4.1.2.6 Basis of Payment of LQA - Payment of theLQA shall be made strictly on the basis ofactual status at post. However, those whosedependents have temporarily left theirresidences at the posts shall retain their"with family" status, provided that for theduration of their absences, the personnelconcerned shall not move to cheaper orsmaller lodgings; provided, further, thattheir absence at anyone time shall notexceed beyond three (3) months; provided,finally, that the dependents have notestablished residences elsewhere. Gainfulemployment outside of post is an indicationof having changed domicile.

8.4.1.2.7 LQA of Husband and Wife - In the case ofhusband and wife who are both assigned inone (1) post, only the spouse with thehigher rank shall be entitled to the LQA, andfor purposes of family status under Item8.4.1.2.5 hereof, the other spouse shall beconsidered as dependent.

8.4.1.2.8 Joint Rental of Apartment or Housing Unit In case where, because of acute housingshortage, prohibitive rental cost or othercircumstances, two (2) or more foreignservice personnel are constrained to rentone (1) apartment or housing unit jointly,the claimants shall be entitled to theirrespective allowances, provided that theHead of Post shall certify in the claim

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voucher that their individual allowances areinsufficient to cover the rental of one (1)apartment or housing unit at the post.

8.4.1.2.9 Advance Payment of LQA - In posts wherethere is a standard practice amonglandlords to require advance rental ordeposit equivalent to at least six (6) monthsto one (1) year rental of the unit, paymentin advance of LQA sufficient to cover therequired amount may be authorized,provided that the advance rental shall bepaid directly to the landlord by the post;provided, further, that the claimant shallsubmit to the Home Office a copy of thepertinent contract of lease duly certified bythe Head of Post which should invariablycontain a diplomatic clause; provided that incase of recall, reassignment or for anyother reason, the unexpired portion of theamount paid shall be duly refunded to thepost, subject to the condition that in case offorce majeure whereby the unexpiredportion is not refunded, the claimant shallnot be held accountable.

8.4.1.2.10 Payment of Key Money for Goodwill andRental Through a Real Estate Agent - Inplaces where the new lessees are invariablyrequired at the outset to pay key money forgoodwill and in places where lessees arerequired by the host government, or bycustomary business practice, to rent ahouse or apartment unit through an agentand pay the corresponding real estateagent's fee or commission upon signing ofthe lease contract, payment of the abovemay be authorized chargeable against theaccount of the Department concerned,provided that the Head of Post shall certifyin the pertinent cash voucher that suchpayments are required by the hostgovernment or customary at the post andnot refunded by the owner to the lessee;provided further, that any key moneyand/or real estate agent's fee or

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commission that may be required uponrenewal of the lease contract shall likewisebe chargeable against the account of theDepartment concerned.

8.4.1.2.11 Actual Rental - In lieu of commutable livingquarters allowance, payment of actualrental of quarters occupied by the Head ofPost may be authorized, subject to theavailability of funds and as may bewarranted by the housing situation in thepost of assignment. Payment of the utilitiesshall be in accordance with regulations asmay be prescribed by the DFA Secretary.

8.4.1.2.12 Index of Newly-Opened Post - In the caseof a newly-opened foreign service postwhich index has not yet been fixed, theindex of the nearest post in terms ofeconomic conditions shall apply, pendingapproval of an appropriate index for thenew post.

8.4.1.3 Post Allowance (PA)

8.4.1.3.1 Purpose of PA - It is granted to defrayunusual expenses incident to the operationand maintenance of the official residencesuitable for the chief of diplomatic missionor consular representative of the Philippinesat the post.

8.4.1.3.2 Allotment Fund for PA - An allotment fundmay be made by the DFA Secretary todefray the unusual expenses incident to theoperation and maintenance of an officialresidence suitable for the chief diplomatic orconsular representative of the Philippines atthe post.

8.4.1.3.3 Payment of PA - The PA shall be granted ata per annum rate beginning on the firstday of the month following arrival thereat.It shall be payable only when on duty statusat his/her station.

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8.4.1.3.4 Duty Status - A Head of Mission or PrincipalOfficer shall be considered on duty statuseven when on:

• temporary duty outside the city orplace where the officer maintainsregular office but within the territoriallimits of the officer's diplomatic orconsular jurisdiction

• temporary duty outside the diplomaticor consular jurisdiction for aconsecutive period not exceeding 60days; beyond 60 days, no allowanceshall be paid except as specificallyapproved by the President; paymentof PA to be resumed only on the dateof the actual return to the territorywithin the officer's diplomatic orconsular jurisdiction

• leave of absence with pay, providedthe leave is spent within the territorialjurisdiction of the post; no PA to bepaid if the officer goes on leave withpay outside the territorial jurisdictionof the post

8.4.1.3.5 Territorial Limits - The territorial limits, incase of concurrent jurisdiction, shall extendto all countries or areas covered by theconcurrent offices.

8.4.1.3.6 No PA shall be paid if the officer lives in ahotel as residence.

8.4.1.3.7 Entitlement to PA may be suspended due toinsufficiency of funds.

8.4.1.4 Family Allowance (FA)

8.4.1.4.1 Purpose of FA - It is granted to assistforeign service personnel living with theirfamilies at the post of assignment inmeeting the incremental expenses arisingfrom foreign assignment, computed for the

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dependent spouse and for unmarried legalminor dependent children not exceedingthree (3) in number.

8.4.1.4.2 Rates of FA - An officer or employee, otherthan an alien or casual/contractualemployee, who is assigned abroad andwhose family resides with the officer oremployee at the post of assignment, shallbe entitled to a commutable FA equivalentto:

• US$ 150 per month for the dependentspouse; and

• US$ 75 per month for each dependentchild not exceeding three (3) innumber.

8.4.1.4.3 Definition of Dependent Child - A dependentchild shall mean legitimate, illegitimate,legitimated or legally adopted child who isnot over 21 years, unmarried, not gainfullyemployed, and living with the officer oremployee at the post of assignment.

8.4.1.4.4 When Unmarried Children are ConsideredDependents - Unmarried children who arementally or physically handicapped asattested to by medical certificate, incapableof supporting themselves and living with theofficer or employee abroad, shall beconsidered, for this purpose, regardless ofage, as dependents.

8.4.1.4.5 Dependents Not Living with Foreign ServicePersonnel - Subject to the prior approval ofthe Department head, full FA may be paidto any claimant whose dependent does notlive with the officer or employee at the postof assignment under any of the followingcircumstances:

• The officer or employee is compelledto live alone due to dangerous, notablyunhealthy or excessively adverse living

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I.1I



conditions, or by other unavoidablecircumstances like lack of appropriate,reasonable educational facilities for theofficer's or employee's children; or

• For the convenience of theGovernment, the officer or employeemust live alone without any or all themembers of the officer's or employee'sfamily at the post of assignment.

All other meritorious cases may beconsidered by the Department head as thecircumstances and the exigencies of theservice may warrant.

8.4.1.5 Clothing Allowance (CA)

8.4.1.5.1 Purpose of CA - It covers the increased costof clothing incurred in posts where theclimate is different from that of thePhilippines or where unusual circumstancesexist.

8.4.1.5.2 Rates of CA - The following are the rates forCA which shall be granted once every 12months:

Rates in US $Rank Tropical Temperate

Zone Zone

Chiefs of Mission,Counsellors (CareerMinisters) and those $400 $500assigned as PrincipalOfficers or ConsulsGeneral

Foreign ServiceOfficers includingthose assigned as $300 $400Consuls or ActingPrincipal Officers

Foreign Service StaffOfficers and $200 $250Employees

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• The following posts are considered asfalling under the tropical zone:

8.4.1.6.1 Purpose of MA - It is intended to cover thecost of medical insurance in countries wheremedical care is unusually expensive,including cost of hospitalization and medicaltreatment of foreign service personnel andlegal dependents living with the officer oremployee at the post.


RiyadhRome.San FranciscoSantiagoSeoulStockholmSydneyTehranTel AvivThe HagueTokyoTorontoTripoliVancouverVatican CityViennaWashington, D.C.WellingtonXiamen

Jakarta Phnom PenhKuala Lumpur Port MoresbyLagos SaipanManado SingaporeNairobi Yangon

HanoiHongkongIslamabadJeddahKobeKuwaitLondonLos AngelesMadridManamaMexico CityMilanMoscowMuscatNew DelhiNew YorkOttawaParisPretoria

AganaBangkokBruneiHavana'Honolulu

Abu DhabiAnkaraAthensBaghdadBeijingBerneBonnBrasiliaBrusselsBucharestBudapestBuenos AiresCairoCanberraChicagoDhakaDohaGenevaHamburg

8.4.1.5.3 Classification of Posts - The rates ofpayment of CA shall be in accordance withthe following classification of posts:• The following posts are considered as

falling under the temperate zone,having 4 distinct seasons, namely,summer, autumn, winter and spring:

8.4.1.6 Medical Allowance (MA)

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8.4.1.6.2 Medical Insurance Foreign servicepersonnel may be required by the DFAto subscribe to a medical insurancescheme available in the host country.Twenty-five percent (25%) of thecorresponding premiums shall be payableby the personnel concerned and 75%thereof shall be borne by the Governmentas its contribution.

8.4.1.6.3 Hospitalization - In the event of illness orinjury requiring hospitalization of a foreignservice personnel, not as a result of vicioushabits, intemperance or misconduct onhis/her part, the Government shallreimburse the cost of medical expensesprovided that no medical insurance schemeis available in the post of assignment.

8.4.1.6.4 Medical Expenses - The medical expensesshall cover the cost of hospitalization and/orpayment of the services of the attendingphysician, including travel expenses to andfrom the hospital or clinic, and suchother incidental expenses as may beincurred in connection with suchhospitalization treatment but not to exceedUS$1,OOO.

8.4.1.6.5 Legal Dependents - Only legal dependentsliving with the officer or employee at thepost shall be entitled to the MA.

8.4.1.7 Representation Allowance (RA)

8.4.1.7.1 Purpose of RA - It is granted to chiefs ofmission, special envoys, permanentdelegates or representatives to internationalbodies, principal officers, and other rankingdiplomatic officers, and ranking foreignservice officers stationed abroad to enablesuch officers to uphold the prestige of theRepublic of the Philippines, to represent thecountry with dignity and distinction, and tocarry out their functions more effectively.

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8.4.1.7.2 Uses of RA - RA shall be expended only forpurposes which are of a public character,beneficial to the interests of the publicservice, and connected with the exercise ofthe functions of the Government in relationto the conduct of foreign affairs. They maybe expended for necessary entertainment,charitable contributions, memorials, flowers,gifts, club initiation fees, membership dues,and the like. The office to whom theallowance is granted may disburse anyportion of it to cover necessaryentertainment by the officer's subordinatesto accomplish certain tasks assigned tothem.

8.4.1.7.3 Supporting Document - Expenses chargedto RA must be supported by proper receiptsor vouchers if the individual amount ofexpenditures exceeds US$50.00 or itsequivalent. Where expenses are incurredfor entertainment, the voucher must beaccompanied by a statement of the officerconcerned or by such proofs showing thatthe expenses have been made in the publicinterest.

8.4.1.7.4 Special Entertainment - Should specialentertaining be necessary because of formalvisits of Philippine dignitaries travelling ondiplomatic or special passports, the DFASecretary shall be informed in advancethereof and specific requests for fundstherefor shall be made. No such expensesshall be incurred without the priorauthorization of the DFA Secretary.

8.4.1.7.5 The annual RA rates are as follows:

• High Cost Posts are posts which haveoverseas allowance index in the rangeof 90 and above

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Rank/Position RepresentationAllowance

Chief of Mission US $ 6,000(not Head ofPost)

Counsellor 4,500(Career Minister)

Foreign Service Officer, 3,600Class I

Foreign Service Officer, 2,700Class II

Foreign Service Officer, 1,800Class III

Foreign Service Officer, 1,800Class IV

Foreign Service Staff 1,440Officer I

Others duly authorized 1,440by the Secretary

• Medium Cost Posts are posts whichhave overseas allowance indices in therange of 80 to 89



Counsellor 3,600(Career Minister)




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Foreign Service Staff 1,080Officer I

Others duly authorized 1,080by the Secretary

• Low Cost Posts are posts which haveoverseas allowance indices in therange of 70 to 79



Career Minister 2,700





Foreign Service Staff 900Officer I

Others dulyauthorized 900by the Secretary

8.4.1.8 Education Allowance (EA)

8.4.1.8.1 Purpose of EA - It is granted to compensatefor additional cost incurred to educate legaldependents not exceeding 3 who are

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I


enrolled in the primary, elementary andhigh school levels where free publiceducation at the post is not provided for.

8.4.1.8.2 Actual Costs - The EA may be granted asreimbursement of actual costs, within suchmaximum amount as set by the DFA andDBM Secretaries, with the approval of thePresident, per school year for each child,subject to presentation of receipts andother evidences of payment ofmatriculation, tuition fees, books and otherschool fees.

8.5 Service Attaches

8.5.1 Assignment and Accreditation - The assignment and accreditationof personnel in any agency of the Government as service attachesto embassies or representatives to consulates shall have the priorclearance of the DFA Secretary who shall take into account thespecific places where the services of these officers or employeesfrom the other government agencies are needed, except TradeAttaches who shall be assigned and accredited only afterconsultation with the Department of Trade and IndustrySecretary.

8.5.2 Appointments - The authority to appoint service attaches andrepresentatives shall be vested in the Department Secretarysending them. An agency shall have only one (1) service attacheor representative accredited to one (1) post, except military andtrade attaches.

8.5.3 Assimilated Ranks - The President .shall determine, uponrecommendation of the DFA Secretary, the assimilated ranks ofservice attaches for purposes of compensation.

8.5.3.1 As a general rule and except as the President mayappoint, no officer of the Philippine Government outsideof the DFA shall be assigned an assimilated rank higherthan Foreign Service Officer, Class 1.

8.5.3.2 The assimilated ranks shall not confer diplomaticrankings for purposes of protocol.

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The assimilated ranks of military and civilian attaches from theDepartment of National Defense, Department of Trade andIndustry, Department of Tourism, Department of Finance andDepartment of Agriculture are indicated in Annex C of thisChapter.

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Annex A•. ,

Table of Annual Rates for Overseas and Living Quarters Allowancesfor Foreign Service Personnel

(in US $)

Living Quarters (LQA)

Rankl Position OverseasWith Without

Allowance(OA) Family Family

Chief of Mission

Head of Diplomatic Mission 69,599 42,871 35,041

Others, including Consul General 60,521 35,723 29,199

Counsellor (Career Minister) 52,626 31,064 25,394

Foreign Service Officer, Class I 45,762 28,244 23,080

Foreign Service Officer, Class II 41,601 25,674 20,986

Foreign Service Officer, Class III 37,819 23,341 19,079

Foreign Service Officer, Class IV 34,382 21,218 17,342

Foreign Service Staff Officer I 34,382 21,218 17,342

Foreign Service Staff Officer II 32,744 19,288 16,518

Foreign Service Staff Officer III 31,185 18,371 15,731

Foreign Service Staff Officer IV 29,700 17,496 14,980

Foreign Service Staff Employee I 27,000 15,868 13,588

Foreign Service Staff Employee II 25,714 15,868 13,588

Foreign Service Staff Employee III 24,490 15,868 13,588

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Table of Indices for Overseas and Living Quarters Allowancesfor Foreign Service Personnel

Post OA LQAin 0/0 in 0/0

Abu Dhabi 86 100Abuja 93 90Agana 100 100Amman 77 100Ankara 86 110Athens 89 130Baghdad 84 100Bandar Seri Begawan 75 95Bangkok 77 95Barcelona 94 130Beijing 89 95Beirut 90 125Berlin 98 130Berne 107 130Bonn 93 130Brasilia 82 110Brussels 94 130Bucharest 81 130Budapest 92 130Buenos Aires 82 90Cairo 76 95Canberra 90 97Caracas 82 115Chicago 100 100Colombo 77 70Dakar 91 100Dhaka 77 65Dili 89 100Doha 79 100Dubai 86 100Dublin 95 130Geneva 107 130Guangzhou 89 100Hamburg' 92 130Hanoi 79 70Havana 85 100Holy See 96 130

Annex B


Madrid 94 130Manado 70 70Manama 91 100Melbourne 90 100Mexico City 85 115Milan 96 130Montreal 93 100Moscow 95 130Muscat 81 100Nairobi 78 90New Delhi 79 70New Orleans 100 100New York 100 100Osaka 128 150Oslo 105 130Ottawa 91 102Paris 98 130Phnom Penh 75 90Pohnpei 86 100Port Moresby 88 115Prague 90 130Pretoria 92 100Rabat 83 100Riyadh 86 100Rome 96 130Saipan 86 100San Diego 100 100San Francisco 100 100Santiago 82 90Seattle 100 100Seoul 107 125Shanghai 89 100Singapore 80 100Stockholm 99 130Sydney 90 100Tehran 83 95Tel-Aviv 90 125

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Given:

Sample Computation of OA and LQA



The Hague 93 130Tokyo 128 150Toronto 93 102Tripoli 82 100Vancouver 91 102Holy See 96 130Vienna 96 130Vientiane 80 70Warsaw 85 130Washington, D.C. 100 100Wellington 90 115Winnipeg 91 100Xiamen 89 95Yangon 83 70

LQA = US $ 21,218 for the reference post x 130% for Geneva----------------------------------100% for the reference post

LQA = (US $ 21,218) (1.30)LQA = US $ 27,583 AD

100% for the reference postOA = (US $ 34,382) (1.07)OA = US $ 36,788.74

OA = US $ 34,382LQA = US $ 21,218

Employee A, married with one dependent child, holding the position of ForeignService Staff Officer I and posted in Geneva

Required: Annual proportionate OA and LQA while in Geneva

OA = US $ 34,382 for the reference post x 107% for Geneva

Note: The reference post for the annual rates for OA and LQA (at 100%) is NewYork City.

Post OA LQAin% in%

Hongkong SAR 100 115Honolulu 100 110Houston 100 100Islamabad 80 70Jakarta 81 95Jeddah 86 100Koror 86 100Kuala Lumpur 75 90Kuwait City 81 100Libreville 93 100Lima 78 90Lisbon 87 130London 100 130Los Angeles 100 100

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AnnexC

Assimilated Ranks of Military and Civilian Attaches, Representatives andOther Personnel of the Philippine Government Stationed Abroad

Department Position/Designation Assimilated Rank

(a) Department of National Brigadier General CounsellorDefense

Colonel/Navy Capatain Foreign Service Officer,Class I

Lieutenant Colonel/ Foreign Service Officer,Major/Lieutenant Class IICommander/Commander

Captain/Lieutenant Senior Foreign Service Officer,Grade Class III

First Lieutenant/Lieutenant Foreign Service Officer,Junior Grade Class IV

Second Lieutenant/Ensign Foreign Service Officer,Class IV

(b) Department of Special Trade CounsellorTrade and Industry Representative

Foreign Trade Service Foreign Service Officer,Officer I Class I

Foreign Trade Service Foreign Service Officer,Officer II Class II

Foreign Trade Service Foreign Staff Officer,Officer III Class III

Foreign Trade Service Foreign Service Officer,Officer IV Class IV

Foreign Trade Service Staff Foreign Service StaffOfficer Officer II

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Department PositionI Designation Assimilated Rank

(c) Department of Tourism Tourism Attache Foreign Service Officer,Class I

Public Relations Officer IV Foreign Service Officer,Class II

Administrative Assistant Foreign Service StaffOfficer IV

Tourism Promotion Assistant Foreign Service StaffOfficer III

Regional Convention Foreign Service Officer,Coordinator Class I

Convention Service Officer Foreign Service Officer,Class II

Senior Market Assistant Foreign Service StaffOfficer IV

Administrative Assistant II Foreign Service StaffOfficer III

(d) Department of Finance Attache Foreign Service Officer,Finance Class I

Revenue Attache Foreign Service Officer,Class I

Assistant Revenue Attache Foreign Service Officer,Class II

(e) Department of Labor Labor Attache II Foreign Service Officer,and Employment Class I

Labor Attache I Foreign Service Officer,Class II

,Overseas Worker Welfare Foreign Service Officer,

Officer IV Class III

Overseas Worker Welfare Foreign Service Staff

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Department PositionlDesignation Assimilated Rank

Officer III Officer I(Center Coordinator)

(f) Department of Agricultural Attache Foreign Service Officer,Agriculture Class I

Agricultural Analyst Foreign Service Officer,Class III

Note:

The allowances/benefits of incumbents of the positions from the above-listed Departments whilestationed abroad are computed in the same manner as those of foreign service personnel of ·theDFA, based on the assimilated ranks.

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Chapter 9

Position Classification and Compensation Scheme inLocal Government Units

9.1 Historical Background

9.1.1 Before Presidential Decree (PO) No. 1136

Local governments are political units composed of provinces,cities, municipalities and barangays. They have long beenexisting with their own legislative bodies which are endowed withspecific powers as defined in the Revised Administrative Code andindividual local government unit (LGU) charters. These locallegislative bodies were then called provincial boards in the case ofprovinces, city councils in cities and municipal councils inmunicipalities. These local legislative bodies were vested with thepower to determine the number of employees that each officeshould have and to fix their salary rates as agreed upon by themajority. In exercising such power, however, there were nospecific guidelines nor definite standards used in the creation ofpositions and the fiXing of salaries. Position titles were notdescriptive nor reflective of the duties and responsibilities of thepositions and salaries were fixed arbitrarily. For local officials,however, laws such as Republic Act (RA) No. 268 as amended,and RA No. 4477 were passed by Congress fixing the salaries ofmunicipal, provincial and city officials. These salary laws createda wide gap between the salaries of rank-and-file employees andthe officials.

9.1.2 PO No. 1136

Cognizant of the need for a more effective local governmentpersonnel administration, PD No. 1136, "The Local GovernmentPersonnel Administration and Compensation Plans Decree of1977," was promulgated on May 5, 1977. Its salient features areas follows:

9.1.2.1 The creation of the Joint Commission on LocalGovernment Personnel Administration (JCLGPA) toformulate policies on local government personneladministration, position classification and payadministration; and to implement the provisions of PDNo. 1136;

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9.1.3 RA No. 6758

9.1.2.3 The maximum salary rates for provincial, city andmunicipal officials by equating them to CESO ranks.

II '

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90%85%80%75%70%65%

100%100%95%90%85%80%75%

For Provinces/Cities For Municipalities

Special Cities1st Class2nd Class3rd Class4th Class5th Class6th Class

9.1.4.1 The personnel, records, equipment and other assets ofthe abolished JCLGPA shall be transferred to theappropriate office in the Civil Service Commission (CSC).

To enable LGUs to attain their fullest development as self-reliantentities and make them more effective partners in the attainmentof national goals, RA No. 7160, the "Local Government Code of1991," was enacted. The pertinent provisions of the Code are asfollows:

Section 10, RA No. 6758, provides that the rates of pay shall bedetermined on the basis of the class and financial capability ofeach LGU. Such rates of pay shall not exceed the followingpercentages of the rates of the salary schedule prescribed underSection 7 of the Act:

In pursuance of the Constitutional mandate for the adoption of aunified Position Classification and Compensation System (PCCS) inthe government, RA No. 6758, the "Compensation and PositionClassification Act of 1989" popularly known as the "SalaryStandardization Law," includes LGUs under its coverage.

9.1.2.2 The adoption by LGUs of rational personnel policy andposition classification and compensation plans, basedon the principle of equal pay for substantially equalwork, and to recognize differences in pay arising fromsubstantive differences in duties and responsibilities andqualification requirements; and

9.1.4 RA No. 7160


I

Position Classification and Compensation Scheme In LGUs

9.1.4.2 Every LGU shall design and implement its ownorganizational structure and staffing pattern taking intoconsideration its service requirements and financialcapability, but subject to the minimum standards andguidelines prescribed by the CSc.

9.1.4.3 Pursuant to Section 81, RA No. 7160, the compensationof local government officials and employees shall bedetermined by the sanggunian concerned provided that:

9.1.4.3.1 The increase in compensation of electivelocal government officials shall take effectonly after the terms of office of thoseapproving such increase shall have expired;

9.1.4.3.2 The increase in compensation of theappointive officials and employees shall takeeffect as provided in the ordinanceauthorizing such increase;

9.1.4.3.3 Said increase shall not exceed thepercentage limitation for personal services;and

9.1.4.3.4 Such compensation may be based upon thepertinent provisions of RA No. 6758.

9.1.4.4 The local sanggunian is empowered to determine thepositions, salaries and wages, allowances and otherbenefits of officials and employees paid wholly or mainlyfrom local government funds.

9.1.4.5 If the finances of LGUs allow, the local sanggunian mayprovide for additional allowances and other benefits tojudges, prosecutors, public elementary and high schoolteachers and other national government officialsstationed in or assigned in LGUs.

9.1.5 Administrative Order (AO) No. 42

9.1.5.1 RealiZing the need to address issues on positionclassification and compensation in LGUs in view of theprovisions of RA No. 7160, and to effectively enforcethe provisions of the Constitution and fully rationalizethe standardization of compensation in thegovernment particularly in LGUs, AO No. 42 was issued

9-3


by the President on March 3, 1993, to reiterate theprovision of RA No. 6758 that the Department of Budgetand Management (DBM) shall be the Administrator ofthe unified Position Classification and CompensationSystem of the government and as such shall undertakethe following:

9.1.5.1.1 Provide guidelines on the classification oflocal government positions and on thespecific rates of pay therefor;

9.1.5.1.2 Provide criteria and guidelines for the grantof all allowances and additional forms ofcompensation to local governmentemployees;

9.1.5.1.3 Advise and assist LGUs on matters ofposition classification and compensation oflocal government personnel; and

9.1.5.1.4 Provide technical expertise in the training oflocal government personnel to enable themto administer and maintain thecompensation and position classificationsystem.

9.1.5.2 The issuance of this c1arificatory order was anchored onthe following:

9.1.5.2.1 The abolition of the JCLGPA pursuant toSection 77, RA No. 7160, and the transferof all its personnel, records, equipment andother assets to the esc;

9.1.5.2.2 The inability of RA No. 7160 to specificallyprovide for the transfer of the respectivefunctions of the member agencies of theJCLGPA;

9.1.5.2.3 Section 325 (b) of RA No. 7160 states that:"No official or employee shall be entitled toa salary rate higher than the maximum fixedfor his position or other positions ofequivalent rank by applicable laws, rulesand regulations issued thereunder;

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9.1.5.2.4 The only applicable law that governs theCompensation and Position ClassificationSystem in the government is RA No.. 6758which is administered by the DBM asmandated; and

9.1.5.2.5 The Compensation and PositionClassification System established inpursuance of the Constitutional mandatecovers all national and local governmentpositions, appointive or elective, on full-timeor part-time basis now existing or hereaftercreated.

9.1.6 Joint Senate and House of Representatives Resolution No.01, Adopted on March 3, 1994

Under said Joint Resolution approved by the President on March7, 1994, LGUs other than special and 1st class cities and provincesmay adopt the salary schedules for higher class LGUs, providedthat the salary schedules adopted shall be uniformly applied to allpositions in the said LGUs, subject to certain conditions.

9.2 The Position Classification Scheme for LGUs

Like the positions in the national government covered by RA No. 6758,positions in LGUs are classified based on duties and responsibilities andthe pertinent rules, regulations and procedures on position classificationprovided under Chapter 2 of this Manual.

9.2.1 Position Classification Guide - In classifying positions, LGUsshall be quided by the following:

9.2.1.1 Index of Occupational Services, Position Titles, andSalary Grades (lOS) in the Local Government - This is adocument listing the different occupational services,occupational groups, series of classes and classes ofpositions existing in LGUs. It also shows the salarygrade assignment of each class of positions.

9.2.1.2 Class Specification - This is a detailed description of aclass of positions. It serves as standard or guide forallocating positions to their proper classes. A moredetailed discussion on class specifications is found inChapter 2 of this Manual.

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9.2.1.3 Salary Grade Allocation of Elective Officials - RA Nos.6758 and 7160 and their implementing rules andregulations provide the salary grade allocations ofelective officials in LGUs that correspond to specificsalary rates in the salary schedules prescribed for LGUs.

9.2.1.3.1 Elective Officials of Provinces

Position salaryGrade

Provincial Governor 30

Provincial Vice-Governor 28

Sangguniang Panlalawigan Member 27

9.2.1.3.2 ElectiveOfficials of Cities

Special Cities (Manila and Quezon City) andHighly Urbanized Cities

Position SalaryGrade

City Mayor 30

City Vice Mayor II 28

Sangguniang Panlungsod Member II 27

Component Cities


City Mayor 30

CityVice Mayor I 26

Sangguniang Panlungsod Member I 2S

9.2.1.3.3 Elective Officials of Municipalities

• Within Metropolitan Manila

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111111111I-•11I11111I1



Municipal Mayor II 28

Municipal Vice Mayor II 26

Sangguniang Bayan Member II 25

• Outside Metropolitan Manila


Municipal Mayor I 27

Municipal ViceMayor I 2S

Sangguniang Bayan Member I 24

9.2.1.4 Salary Grade Allocation of Appointive Officials - RA No.6758 and its implementing rules and regulations providethe salary grade allocation of appointive officials inLGUs that corresponds to a specific salary rate in thesalary schedule prescribed for LGUs.

9.2.1.4.1 Appointive Officials of Provinces


Provincial Government Department Head 26

Provincial Government Assistant 24Department Head

9.2.1.4.2 Appointive Officials of Cities

• Special Cities (Manila and Quezon City)


CityGovernment Department Head III 27

CityGovernment Office Head 26

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City Government Assistant Department 25Head III

• Highly Urbanized Cities/OtherMetropolitan Manila Cities

PositionsalaryGrade

City Government Department Head II 26

City Government Assistant Department 24Head II

• Component Cities

PositionSalaryGrade

City Government Department Head I 25

City Government Assistant Department 23Head I

9.2.1.4.3 Appointive Officials of Municipalities

• Within Metropolitan Manila


Municipal Government Department Head 25II

Municipal Government Assistant 23Department Head II

• Outside Metropolitan Manila

PositionSalaryGrade

Municipal Government Department Head I 24

Municipal Government Assistant 22Department Head I

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9.2.1.5 Other Positions - The highest position below the rank ofan assistant department head may be allocated inaccordance with the following standard leveling ofpositions based on the level and income class of theLGU:

Local Highest Positions Below theGovernment Unit Assistant Department Heads

Provinces SG-22, examples: Licensing OfficerIV, Project Development Officer IV

Special Cities SG-24, examples: Licensing OfficerV, Project Development Officer V

Highly Urbanized SG-22, examples: Licensing OfficerCities IV, Project Development Officer IV

Component Cities SG-22, examples: Licensing OfficerIV, Project Development Officer IV

1st to 3'" Class SG-18 to 19, examples: licensingMunicipalities Officer III, SG-18, and Engineer III,

SG-19

4th to 6th Class SG-14 to 16, examples: RegistrationMunicipalities Officer II, SG-14, Project

Development Officer II, SG-15, andDentist II, SG-16

N.B.

The position titles of the positions below the AssistantDepartment Heads must be in accordance with the Index ofOccupational Services, Position Titles and Salary Grades(105) in the Local Government issued under Local BudgetCircular No. 61 dated March 18, 1996.

9.2.1.6 Other Positions Assigned to LGU Officials - Theclassification of Private Secretary, Executive Assistantand Driver positions is dependent on the level/rank ofthe position they serve. Per established standards, theallowable level of these positions for the said officialsare as follows:

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LocalPrivate Secretary Executive Assistant DriverExecutive

Provincial Private Secretary II, Executive Assistant Driver II,Governor SG-15 IV, SG-22 SG-4

Provincial Private Secretary I, Executive Assistant Driver I,Vice- se-n II, SG-17 SG-3Governor

City Mayor Private Secretary II, Executive Assistant Driver II,SG-15 IV, SG-22 SG-4

City Vice Private Secretary I, Executive Assistant Driver I,Mayor se-n II, SG-17 SG-3

Municipal Private Secretary II, Executive Assistant Driver II,Mayor SG-15 II, SG-17 SG-4

Municipal Private Secretary I, Executive Assistant Driver I,Vice Mayor se-n I, SG-14 SG-3

Pursuant to Budget Circular No. 2004-3, dated March 6,2004, however, the following positions were retitled asfollows:

Private Secretary I, SG-ll Administrative Assistant V, SG-llPrivate Secretary II, SG-1S Senior Administrative Assistant III,

SG-15

Driver I, SG-3 Administrative Aide III, SG-3Driver II, SG-4 Administrative Aide IV, SG-4

9.2.1.7 Heads of Administrative/Support Units - Generally,there shall be only one (1) administrative unit in a LGUand this is placed under the Office of the Local ChiefExecutive. If found necessary, administrative supportunits in other departments of the LGU may be allowed.The head of these satellite units should be classifiedone (1) rank lower than the head of the administrativemother unit.

9.2.1.8 Municipal Health Officers (MHOs) and Rural HealthPhysicians (RHPs) - The MHO as a mandatory positionis the municipal department head in charge offormulating and implementing the health and medicalprograms for the whole municipality. It assumessupervision, coordination and monitoring of rural health

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units (RHUs) within the municipality. The RHP isordinarily in charge of a small medical team of healthservice personnel assigned in a RHU which renderspreventive and medical services in specific area ofassignment within the municipality, usually consisting ofat least one (1) barangay. Notwithstanding that theRHP pursuant to RA No. 7305 is given the same salarygrade as the MHO, the MHO has ascendancy over theRHP in the hierarchical ranking of positions in LGUs.

9.2.1.9 Changes in Nomenclature of Positions - In line withSection 325 (f) of RA No. 7160, changes in designationor nomenclature of positions resulting in promotion ordemotion in ranks or increase or decrease incompensation shall not be allowed, except when thepositions are actually vacant.

9.2.2 Creation of New Positions/Offices - Creation of newpositions in LGUs may be allowed subject to the followingconditions that:

9.2.2.1 All the mandatory positions listed under RA No. 7160have been created and provided for;

9.2.2.2 The Salary Standardization Law has been fullyimplemented;

9.2.2.3 The absorption of national government personnel byLGUs on account of the devolution of functions hasbeen fulIy effected;

9.2.2.4 The general limitations on personal servicesexpenditures are not exceeded;

9.2.2.5 The classification of the positions should be consistentwith the standards and implementing rules andregulations of RA No. 6758;

9.2.2.6 The creation of new positions or offices is subject to theconditions prescribed under Civil Service CommissionMemorandum Circular No. 19, s. 1992; and

9.2.2.7 The classification of the heads of new offices shall bedependent on the level of the organizational structureof the new offices. If the new office is considered adepartment, the head shall be classified as Department

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Head. If lower than a department but higher than adivision, the head shall be classified as AssistantDepartment Head.

9.2.3 Creation of a New Class of Positions - A proposal to create anew class of positions not found in the 105 for Local Governmentshall be submitted to the DBM for approval together with thefollowing documents/information:

9.2.3.1 Justification for the creation of the new class;

9.2.3.2 Duly accomplished Position Description Form; and

9.2.3.3 Structural, functional and position charts.

9.3 The Compensation Scheme for LGUs

9.3.1 Basic Salaries

The salary rates of positions in LGUs shall be based on theirincome classifications as determined by the Department ofFinance (DOF), and their financial capabilities. These ratesshall conform with the percentages of the rates in the SalarySchedule prescribed for national government personnel pursuantto Section 7, RA No. 6758, and are indicated in item 9.1.3 of thisChapter.

9.3.1.1 Salary Schedule (55) - The 55 consists of 30 salarygrades for provinces and cities and 27 for municipalities.Each salary grade in the 55 has 8 salary steps toprovide for the hiring rate and incentive for length ofservice in the position. There are 8 salary schedules forLGUs with each salary schedule corresponding to aspecific income class of a LGU.

A - Special Cities and First Class Provinces andCities

B - Second Class Provinces and CitiesC - Third Class Provinces and Cities and First

Class MunicipalitiesD - Fourth Class Provinces and Cities and

Second Class MunicipalitiesE - Fifth Class Provinces and Cities and Third

Class MunicipalitiesF - Sixth Class Provinces and Cities and Fourth

Class Municipalities

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G - Fifth Class MunicipalitiesH - Sixth Class Municipalities

9.3.2 Adoption of Higher Salary Schedule

To minimize disparity in pay between the devolved personnel ofnational government agencies and the organic personnel of thelGU and pursuant to Joint Senate and House of RepresentativesResolution No.1, s. 1994, lGUs lower than Special Cities and FirstClass Provinces and Cities may adopt the salary schedule forhigher class lGUs.

9.3.2.1 The following conditions/limitations shall be observed inadopting a higher salary schedule:

9.3.2.1.1 That the lGU must first implement fully theprescribed salary schedule for its incomeclass and assure sustainability before it canexercise the option to adopt a higher salaryschedule;

9.3.2.1.2 That the lGU is financially capable;

9.3.2.1.3 That the salary schedule to be adopted shallbe uniformly applied to all positions in thelGU concerned;

9.3.2.1.4 That the salary grade allocation of positionsand the salary steps of personnel shall beretained;

9.3.2.1.5 That the difference arising from theadoption of the higher salary schedule shallbe subject to the budgetary and generallimitations on personal servicesexpenditures mandated under Sections 324and 325 of RA No. 7160 as implemented bylocal Budget Circular (lBC) No. 75 datedJuly 12, 2002;

9.3.2.1.6 That in the case of component cities andmunicipalities, the salary schedule to beadopted shall not be higher than that of theprovince where they belong;

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9.3.2.1.7 That the adoption of a higher salary scheduleshall not in any manner alter the existingincome classification of the LGU concerned;and

9.3.2.1.8 That the following mandatories or activitieshave been fully provided for:

• Statutory and contractual obligations ofthe LGU;

• Continued implementation of RA No.6758;

• Creation of mandatory positions;

• Absorption of devolved positions; and

• Payment of the Magna Carta benefits ofpublic health workers pursuant to theprovisions of RA No. 7305.

9.3.2.2 A LGU which has adopted a higher salary schedule asauthorized and which cannot afford to sustain suchschedule, may revert to the prescribed or lower salaryschedule.

For instance, a municipal government of a 4th classmunicipality which adopted the salary schedule for a 151

class municipality may revert to the salary schedule fora 2nd class municipality.

To maintain the integrity and consistency of the PayPlan the following rules shall apply in reverting to theprescribed/lower salary schedule:

9.3.2.2.1 No personnel whose salaries have beenadjusted based on the higher salaryschedule shall suffer diminution in pay as aresult thereof.

9.3.2.2.2 For new hirees/appointees, their salariesshall be at the hiring rates of their positionsbased on the prescribed/lower salaryschedule.

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9.3.3 Step Increments

* same salary rate due to "no diminution in pay policy"

Reverted to2nd Class

P9,961 *3rd step

Adopted 15t Class

P9,9613rd step

4th Class

P8,3013rd step

The rules and regulations on step increments as discussed underChapter 3 of this Manual also apply to LGUs. However, in case aLGU reverts to the prescribed or lower salary schedule, thefollowing rules on step increment shall be observed:

Upon serving 9 years in the position, he/she will beentitled to the salary corresponding to the 4th step, butwill not receive any adjustment in pay since his/heractual salary is still higher than the 4th step. This shallcontinue until such time that his/her salary rateequalizes the prescribed rate for his/her step in thesalary schedule being implemented by the LGU. Thisrule is also applicable to municipalities converted tocities with lower salary schedules.

9.3.3.1 Notwithstanding the actual salary rate of the employeebased on the higher salary schedule, his/her stepincrement after reversion to the prescribed or lowersalary schedule shall be based on the years of service inthe position. Thus, an employee with 6 years of servicein the position shall be at the third step regardless ofhis/her higher salary rate. To illustrate: A PlanningOfficer I, SG-ll, with six years of service in theposition in a municipal government of a 4th classmunicipality which adopted the salary schedule for a 15t

class municipality later reverted to the salary schedulefor a 2nd class municipality:

9.3.4 Other Compensation, Allowances and Benefits

The followlnq other compensation, allowances and benefitsauthorized for national government personnel are likewise grantedto local government personnel subject to the criteria, rules andregulations issued for the purpose as discussed under Chapter 3of this Manual and to the additional rules applicable only to LGUs:

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9.3.4.1 Representation and Transportation Allowances

9.3.4.1.1 The following LGU officials are entitled torepresentation and transportationallowances (RATA) based on the rates andconditions indicated in the annual GeneralAppropriations Act (GAA):

• Provincial Governors and City/MunicipalMayors;

• Provincial Vice-Governors, City/MunicipalVice Mayors;

• Members of the SangguniangPanlalawigan/ Panlungsod/ Sayan;

• Local Government Department Headsand their equivalents;

• Local Government Assistant DepartmentHeads and their equivalents; and

• Division Chiefs (for Special Cities only).

The equivalent ranks of LGU officials tonational government officials entitled toRATA under the GAA are indicated in AnnexA of this Chapter. The maximum rates foreach type of allowance shall be based onthe percentage application of the RATArates for national government officialsindicated in Annex A. .

9.3.4.1.2 RATA for Personnel Devolved to LGUsPursuant to RA No. 7160

• Municipal Agricultural Officers (MAOs)

... The MAO position is not entitled toRATA since it is neither aDepartment Head nor an AssistantDepartment Head. However, in linewith the no-diminution-in-payprovision of Executive Order (EO)No. 503 dated January 22, 1992,

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the devolved MAOs shall continueto receive the total monthly RATAin the amount of P2,200 they havebeen receiving as of thedevolution.

'" A devolved MAO appointed to theoptional local position of MunicipalAgriculturist (MA) shall be entitledto the RATA for a Department Heador Assistant Department Head asthe case may be in a particularLGU.

'" A new appointee to the MAO psitionshall no longer be entitled to RATA.

• Social Welfare Officers (SWOs)

'" The devolved SWOs inmunicipalities are not entitled toRATA. However, when thedevolved SWO is appointed to theoptional local position of MunicipalSocial Welfare and DevelopmentOfficer (MSWDO), he/she shall beentitled to the RATA for aDepartment Head or AssistantDepartment Head as the case maybe in a particular LGU.

• Rural Health Physicians (RHPs)

'" RHPs, whether devolved orappointed, shall be entitled tomonthly RATA of P2,200 pursuantto RA No. 7305 or the Magna Cartaof Public Health Workers.

'" A RHP who is appointed to themandatory department headposition of Municipal Health Officer(MHO) is entitled to the RATA for aDepartment Head in a particularLGU.

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9.3.4.2 Personnel Economic Relief Allowance

9.3.4.2.1 The rates of Personnel Economic ReliefAllowance (PERA) for all appointive LGUpersonnel under permanent, temporary,contractual, casual, substitute or emergencystatus, shall be a percentage of the PERAat PSOO per month based on the incomeclassification of the LGU, as follows:

Class Provinces/Cities MunicipalitiesSpecial Cities 100%1st Class 100% 90%2nd Class 90% 80%3rd Class 90% 80%4th Class 80% 70%5th Class 80% 70%6th Class 80% 70%

9.3.4.2.2 In the event that a LGU has no sufficientfund for the purpose, the grant of the samemay be partial but uniform for all positionsin the LGU.

9.3.4.2.3 However, LGUs which can afford to payhigher than the rates authorized in theabove schedule for their particular incomeclasses are allowed to do so, at ratesuniformly applied to all their respectivepersonnel, but not exceeding PSOO permonth.

9.3.4.2.4 Elective offlcials are not granted the PERAsince they are not among those covered bythe grant thereof pursuant to the pertinentgeneral provision in the annual GeneralAppropriations Act.

9.3.4.3 Additional Compensation

9.3.4.3.1 The rules and regulations relative to thegrant of additional compensation (ADeOM)at Pi,SOO per month to nationalgovernment personnel provided underChapter 3 of this Manual likewise apply toLGU personnel.

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9.3.4.3.2 The grant of ADCOM covers all officials andemployees of LGUs.

9.3.4.3.3 Payment thereof is subject to availability oflocal government funds.

9.3.4.3.4 In the event that a LGU has no sufficientfund for the purpose, the grant of the samemaybe partial but uniform for all positions inthe LGU. '

9.3.4.4 Year-End Bonus and Cash Gift

The rules and regulations on the grant of the year-endbonus and cash gift to national government personnelunder Chapter 3 of this Manual are also applicable tosalaried local government personnel.

Item 3.9.6.3.7 of said Chapter also provides the rulesand regulations on the grant of cash gifts to barangayofficials who are paid honoraria.

9.3.4.5 Honoraria

9.3.4.5.1 Honoraria for Barangay Volunteer FrontlineWorkers

The rules and regulations on the grant ofhonoraria to Barangay Frontline Workers areas follows:

• The honoraria for Day Care Workersshall not exceed the minimum salaryrate of SG-6 of the salary schedulebeing implemented by the LGUconcerned.

• The honoraria for Barangay HealthAides/Workers (including BarangayNutrition Scholars, Barangay HealthWorkers and other volunteer workersof similar nature) shall not exceed theminimum salary rate of SG-4 of thesalary schedule being implemented bythe LGU concerned.

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• A Barangay Health Worker whosimultaneously serves as a BarangayNutrition Scholar may be granted thehonorarium as Barangay HealthWorker or as Barangay NutritionScholar which is more advantageous tohim/her, but not to both honoraria.

• The grant of honoraria shall be subjectto the following conditions:

'" That the volunteer worker isactively performing his/herfunctions relative to theimplementation of assignedprograms and projects in thebarangay;

'" That the volunteer workerconcerned has undergone thenecessary skills and capabilitytraining which is duly recognized byappropriate authority or body eitherin the national or local level;

'" That the grant of honoraria shall becharged against barangay funds.However, this does not precludehigher local governments toundertake projects in the barangaywhich may include payment ofhonoraria to its volunteer workerscharged from their funds;

'" That the amount of honoraria shallnot equal nor exceed thosereceived by the barangay officials.In case these officials are receivingthe aforestated minimum salaryrates, the allowable honoraria forvolunteer frontline workers shouldbe adjusted accordingly so as tomaintain a reasonable pay gap withthe lowest paid barangay official;and

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'" That the grant of honoraria shall besubject to availability of funds,and budgetary limitation onpersonal services under RA No.7160.

9.3.4.5.2 Honoraria for Barangay Human RightsAction Officers (BHRAOs)

The BHRAO implements the BarangayHuman Rights Action Program of theCommission on Human Rights which isaimed to promote and protect human rightsin the grassroots level. Each BarangayHuman Rights Action Center (BHRAC)serves as the center for complaints andadvocacy on human rights in a barangay. Abarangay is limited to one BHRAO.

• All officially designated BHRAOs maybe granted honoraria at rates notexceeding P1,000 each per monthsubject to the followinq conditions:

'" That the BHRAO concerned is dulyrecognized by the BHRAC NationalSecretariat;

'" That the BHRAO has satisfactorilyundergone the skills capabilitytraining of the Commission onHuman Rights;

'" That the BHRAO concerned isactively performing his/herfunctions relative to the promotionand protection of human rights inhis/her community;

'" That the grant of honoraria shall becharged against barangay funds,subject to the discretion of thebarangay concerned after takinginto consideration its programpriorities and financial capability;

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'" That the amount of honoraria forBHRAOs shall not exceed thosebeing received by barangayofficials. In case these barangayofficials are only receiving theminimum honoraria, the allowablehonoraria for the BHRAO should beadjusted accordingly so as tomaintain a reasonable pay gap withthe lowest barangay official; and

'" That the grant of honoraria shall besubject to the budgetary limitationsunder RA No. 7160.

9.3.4.5.3 Additional allowances and Other Benefits orHonoraria for National GovernmentPersonnel Assigned in LGUs

Pursuant to Sections 447, 458 and 468 ofRA No. 7160, the local sanggunian mayprovide for additional allowances and otherbenefits to judges, prosecutors, publicelementary and high school teachers andother national government officialsstationed/assigned in a LGU, subject to thefollowlnq conditions:

• The grant thereof is not mandatory onthe part of the LGU;

• The total amount of additionalallowance and other benefits orhonoraria shall not exceed the RATAauthorized for the department heads ofthe LGU concerned, subject toavailability of local government funds;

• That all contractual and statutoryobligations of the LGU includingthe implementation of RA No. 6758and the benefits mandated under RANo. 7305 (Magna Carta of PublicHealth Workers) have been fullyprovided for in the budget;

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• That the LGU has fully implementedthe devolution of functions/personnelin accordance with RA No. 7160.

• That the delivery of basic services andfunctions mandated under RA No.7160 are not jeopardized;

• That the grant thereof shall be subjectto a regular review and may bewithdrawn as deemed necessary bythe LGU; and

• That the expense shall be presented inthe LGU budget under themaintenance and other operatingexpenses pursuant to item 5.5 of LocalBudget Circular No. 75 dated July 12,2002.

9.3.4.6 Anniversary Bonus

The rules and regulations on the grant of anniversarybonus (AB) in the national government under Chapter 3of this Manual are also applicable to LGUs. However,the following additional rules and regulations areapplicable only to LGUs:

9.3.4.6.1 The AB shall be granted only durin~

milestone years which refer to the 15t

anniversary and to every 5th year thereafterof the founding of the LGUs;

9.3.4.6.2 The founding year of LGUs shall be asindicated in the authentic documentsshowing their establishment, or in theenabling acts or laws creating suchlocalities;

9.3.4.6.3 The counting of milestone years shall startfrom the year the LGUs were foundedregardless of whether they weresubsequently renamed, reclassified orconverted from one level to another, suchas barangay to municipality, municipality tocity;

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9.3.4.6.4 The counting of the milestone years of anLGU which was created by law out of thesplit of an LGU and became a distinct andseparate LGU shall begin from the time ofthe LGU's separation/splitting or creation asa separate entity; and

9.3.4.6.5 The counting of milestone years of mergedLGUs shall reckon from the date they weremerged.

9.3.4.7 Free Quarters

Provincial Governors and Provincial Vice-Governors whohave no residences within 50-kilometer radius from theprovincial capitol may be allowed free quarters, subjectto the following guidelines:

9.3.4.7.1 LGUs may provide free quarters within theiroffice premises to the officials concernedwho have no residences within 50-kilometerradius from the provincial capitol.

9.3.4.7.2 Where there is not enough space to be usedas quarters, the LGU may rent houses orrooms which shall serve as quarters atreasonable rates based on the prevailingcost of rental in the area or locality asdetermined under Chapter 4 of the Manualof Building Services and Real PropertyManagement issued under Joint DBM,DENR and DPWH Circular No.1, datedSeptember 30, 1989, provtded that suchrates shall not exceed 25% of their monthlybasic salaries, and subject to the following:

9.3.4.7.2.1 The rental contract shall beentered into by and betweenthe LGU concerned and theowners of the dwelling units;and the rental payments shallbe paid to the latter and nottommuted in favor of theofficials concerned.

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9.3.4.7.2.2 Said rates shall be inclusive ofthe amount for telephone,water and electric bills, whichshall likewise be paid directlyto the utility companies.

9.3.4.7.2.3 Those who desire moreexpensive/extensive quartersother than those rented by theLGUs may secure suchpreferred quarters, providedthat the difference betweenthe rental cost and theamount authorized thereforshall be paid by the former.

9.3.4.7.3 Provision of free quarters outside of the 50kilometer radius from the provincial capitol,such as in Metropolitan Manila, shall not beallowed.

9.3.4.7.4 The amount necessary for the provision offree quarters to the Provincial Governor andProvincial Vice-Governor shall be chargedagainst the respective LGU funds.

9.3.4.8 Other Compensation, Allowances and Benefits

9.3.4.8.1 The pertinent rules and regulations on thefollowing other compensation, allowancesand benefits provided under Chapter 3 ofthis Manual are also applicable to LGUpersonnel:

• ProductiVity Incentive Benefits;

• Uniform/Clothing Allowance;

• Overtime Pay;

• Night Shift Differential Pay;

• Subsistence Allowance; and

• Laundry Allowance.

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Their grants are subject to the personalservices limitation under RA No. 7160.

9.3.4.8.2 The rules and regulations on travelallowance/expenses provided under Chapter3 of this Manual are also applicable to LGUpersonnel.

9.3.4.9 Compensation for Local Government PersonnelDesignated to Fill Temporary Vacancies

The following rules shall apply relative to the paymentof compensation to officials and employees designatedby competent authority to fill temporary vacancies asauthorized under RA No. 7160.

9.3.4.9.1 An official or employee in an LGU other thana special city, designated by competentauthority on a concurrent capacity to aposition lower than Assistant DepartmentHead but nevertheless heads a specific areaof responsibility like division chief inprovinces and cities, or section chiefs inmunicipalities, may be allowed honoraria atthe rate not exceeding P1,000 per month inprovinces and cities, P800 per month inmunicipalities belonging to 1st to 3'd classand P600 per month for lower than 3rdclass.

9.3.4.9.2 An official or employee not entitled to RATAin his/her permanent position, designatedby competent authority on a concurrentcapacity to a position entitled to RATA, maybe granted the RATA, provided it is sospecified in the order of designation, orhonorarium at a rate not exceeding the rateof RATA for the position where designated.

9.3.4.9.3 An official or employee entitled to RATA inhis/her permanent position designated bycompetent authority on a concurrentcapacity to a higher position with higherrate of RATA may be entitled to thedifference between the RATA of the two

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positions, or honorarium authorized underitem 9.3.4.9.1, whichever is higher.

9.3.4.9.4 An official or employee entitled to RATAdesignated by competent authority to alateral position in a concurrent capacity forone full calendar month or more may bepaid honorarium at the rate prescribed initem 9.3.4.9.1.

9.3.4.10 Compensation for Members of Local RegulatoryBoards/Quasi-Judicial Bodies and Similar Bodiesin LGUs '

The following rules shall apply on the payment ofcompensation to members of local regulatory boards/quasi-judicial bodies and similar bodies in LGUs:

9.3.4.10.1 A member of a local regulatory and quasi-judicial body, e.g., People's LawEnforcement Board (PLEB), MiningRegulatory Board (MRB) or similar bodycreated pursuant to a law or Presidentialauthority shall be compensated in the formof per diem at a rate not exceeding Pl,OOOper meeting/session actually attended butnot to exceed 4 paid sessions or P4,OOO permonth.

9.3.4.10.2 Each administrative support staff renderingservices to a board/body may becompensated in the form of honoraria notexceeding P200 per session but not toexceed 4 paid sessions or P800 per month.

9.3.4.10.3 The grant of compensation shall be subjectto the followlnq conditions:

• That no law bars them from receivingcompensation as members.

• That the grant thereof is subject to thebudgetary limitation on personalservices under Section 325 of RA No.7160, and to availability of funds.

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• That when the law expressly providesthe rate of compensation, the pertinentprovision of the law shall prevail.

9.3.4.11 Compensation for Ex-Officio Members of theLocal Sanggunian

The rules and regulations relative to the compensationfor ex-officio members of the local sanggunian are asfollows:

9.3.4.11.1 Ex-officio members of local legislative bodiesshall receive the same compensation as thatof their counterpart elective sanggunianofficials.

9.3.4.11.2 The Municipal and City Chapter Presidentsof the Liga ng mga Barangay and thePresidents of the Pederasyon ng mgaSangguniang Kabataan who serve as exofficio members of the SangguniangBayan/Panlungsod as the case may beshall receive in full their salaries andallowances from the concerned municipal orcity governments.

9.3.4.11.3 The elected Presidents of the ProvincialChapter of the Liga and the Pederasyonwho sit as ex-officio members of theSangguniang Panlalawigan shall receive infull their salaries and allowances from theconcerned provincial governments.

9.3.4.11.4 The respective Vice-Presidents of the Ligaand the Pederasyon who sit as ex-officiomembers in the SangguniangPanlungsod/Bayan in lieu of the Presidentswho were elevated to the SangguniangPanlalawigan shall receive their full salariesand allowances from the concernedcity/municipal governments.

9.3.4.11.5 The Presidents of the Provincial Federationof Sanggunian Members of Municipalitiesand Component Cities who sit as ex-officiomembers in the Sanggunian Panlalawigan

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shall receive their salaries and allowancesfrom the component city or municipalgovernments which they represent. Theprovincial governments shall appropriateonly the difference in the salary andallowances of said officials such that theirtotal compensation shall be equivalent tothe compensation actually being received bytheir elective counterparts in theSangguniang Panlalawigan.

9.3.4.11.6 The Punong Barangay and SK Chairmanwho were elected as Chapter/FederationPresidents and therefore sit as ex-officiomembers in the SangguniangBayan/Panlungsod may collect honoraria aschairman of the barangay and as ex-officiomember of the Sangguniang Barangay atrates not exceeding P1,OOO and P600 permonth, respectively, provided that theycontinue to perform their functions in thebarangay.

They shall not be entitled to the honorariaadjustments authorized under Local BudgetNo. 63 and the Christmas bonus from thebarangay government in line with theconstitutional prohibition on the receipt ofdouble compensation.

9.3.4.11.7 In the event that other officials are validlydesignated to perform the functions of thePunong Barangay and the SangguniangKabataan Chairman in the barangay, thedesignated officials shall be entitled tocollect reimbursable traveling and incidentalexpenses not exceeding P1,OOO per monthfor the representative of the PunongBarangay and P600 for the SangguniangKabataan Chairman representative. Saiddesignated officials shall not be entitled toChristmas bonus.

9.3.4.12 Classification of Positions and Compensation forBarangay Personnel

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• SG-14 for the Punong Barangay; and


The following rules on position classification andcompensation apply to barangay government officials:

• SG-l0 for the Sangguniang BarangayMembers, Barangay Secretary, BarangayTreasurer and the SK Chairman.


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1

SalaryGrade

Positions

Utility Worker I

9.3.4.12.2 At the discretion of the barangaygovernment and in consideration of itsservice requirement and the 55% limitationon personal services appropriation, otherpositions may be created and may becompensated in the form of salaries orhonoraria at rates not exceeding the firststep of the salary grade allocation of thefollowinq indicative positions based on thesalary schedule being implemented in thecity/municipality where the barangaybelongs:

9.3.4.12.1 Barangay officials shall be compensated inthe form of honoraria at the minimum rateof P1,OOO per month for the PunongBarangay and P600 each per month forthe Sangguniang Barangay Members,Barangay Secretary, Barangay Treasurerand the Sangguniang Kabataan (SK)Chairman as ex-officio member of theSangguniang Barangay. These minimumrates may be increased to a maximum rateequivalent to the first step of the followingsalary grades of the salary schedule beingimplemented by the city or municipalitywhere the barangay belongs:

Pursuant to Executive Order No. 332 dated May 16,1996, barangay government officials are covered by thePosition Classification and Compensation System underRA No. 6758.

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Clerk I 3

Accounting Clerk I 4

Barangay Health Aide 4

Revenue Collection Clerk I 5

Day Care Worker I 6

Administrative Assistant 8

Pursuant to Budget Circular No. 2004-3dated March 6,2004, however, the abovelisted positions have been retitled asfollows:

From To

Utility Worker I, SG- Administrative Aide I,1 SG-1

Clerk I, SG-3 Administrative AideIII, SG-3

Accounting Clerk I, Administrative AideSG-4 IV,SG-4

Administrative AdministrativeAssistant, SG-8 Assistant II, SG-8

9.3.4.12.3 Positions compensated in the form ofsalaries shall be allocated to their properposition titles and salary grades inaccordance with the lOS for the LocalGovernment. Position titles not consistentwith the lOS shall be submitted to the DBMfor approval.

9.3.4.12.4 Barangay personnel paid salaries and whosepositions are classified in accordance withRA No. 6758 and issued appointments inaccordance with the Civil Service law, rulesand regulations may be entitled to thefollowlnq benefits in accordance with law,rules and regulations pertaining thereto,

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provided that the total compensation ofconcerned employees shall not exceed thecompensation received by the lowestbarangayofficials:

• Personnel Economic Relief Allowance;

• Additional Compensation;

• Year-End Bonus and Cash Gift;

• Productivity Incentive Benefit; and

• Other benefits accruing to regulargovernment employees.

9.3.4.12.5 Barangay Tanods and Members of theLupong Tagapamayapa may be grantedhonoraria, allowances and otheremoluments provided the total amount shallnot exceed the minimum salary rate for SG1 of the salary schedule being implementedby the city/municipality where the barangaybelongs and provided further that suchcompensation shall not exceed those of thelowest paid barangay officials.

9.3.4.12.6 A City/Municipal Accountant who keeps andmaintains the financial records of barangaygovernments are not entitled to honorariafrom the latter since such functions are partof their regular functions in the Office of theCity/Municipal Accountant.

9.3.4.12.7 Monetization of Leave Credits of BarangayOfficials

The monetization of the leave credits ofbarangay officials reckoned from theservices they rendered starting April 15,2004, shall be paid by following the rulesand regulations provided under Civil ServiceCommission and Department of Budget andManagement Joint Circular No.1, s. 2004.

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Annex A

EQUIVALENT RANKS OF LOCAL GOVERNMENT OFFICIALS

TO NATIONAL GOVERNMENT OFFICIALS ENTITLED TO RATA

% Appllcatton Department Dcpulmcnl Department Dtrertnr IV, Director Ill. Director I, SG·l~Calclo~ LGUtClus on National Secret.l')'. Undersecretary. Assistant 5G-28 SG-27 (Ass'st.nf (A5sisllnl BUTUIl Division Chief.

RATA RaIn SG-JI SG-JO Sccrrta!")'. (Bureau Burul! Director) Regional DlrtClor) SG-24

SG·29 Dlrrctor)

A Provinces Provintial Provincial Sanggunian Provincial Chid of HospitalGovernor, Vkc- Panlaiawigan Government II, SQ·25

," Class lOW. 50·30 Governor, Mernbcr.SG·27 Assistant2"" Class 9'" SG·28 Department Head.3"'Class 90% Sa-244" Class 85% Provincial Chief of Hospital5'"C1.us 80% Gcvemroem I. 50·246aCIass J5% Department Head,

sc.ze

" Special Cilies 100% City Mayor, CilyVicc Sanggunian CilyGovernment Division Oief.(Manila and SG·30 MaytlT II. Panlungsod Assistant Department 50·24QuezonCity SO-2S Member II. Head lI1,50·25only) SO-27

CityOovernmentDepartmentHad Ill,50·27

C Highly 11111% City Mayor, City vice 5anggunian CityGovernrrent ChidofHospitalUrbanized 5G·30 MayorII, Panlungsod Member Assistant 11.50-25Cities 50-2S 11,50·27 DqJ3l'Imcnt

HeadII, 5G-24

CityOOYmlment Chiefof HosPitalDepartment Head 11, I. 5G-2450·26

D Component City Mayor, CityVke 5anggunian CityGovernmentCiti~ 50·30 MayorI, l'anlungsod Assistant

50·26 MemberI, SG.2S DqlanmentI- Class 100% Head I.SG-D2"'" Class 95%3'" Class 90% CityOovernmem Chiefof Hospual""Class 85'1'.5" Class 80%

Department 1I.50·25Head I. SG_~S

(0) Ctass 15%Chiefof Hospital1,50-24

E Municipalilies IOO'~ Municipal Municipal 5angguniang Municipalwithin MayorII. ViceMayor II, Bay;lll Mcmber OcvemeemMetropolitan 50-28 50·26 11.50·25 AssistantManila Department Head

ll,5G-23MunicipalGovernmentDepartmentHead11. 50-25

F Municipalities Municipal M~nicipal 5angguniang Municipaloutside Metro Mayor!. ViceMayorI. BayanMemberI, Om,m".",Manila 50-27 50·25 5G·24 Assistant

90% Department HeadI" Class 85% 1,5G-222""'CI," 80% MunicipalJ" Class 75·~

,," Class 10%crovemment

5'"Class ,,% Department HeadI,

6~ Class 50·24

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References

Issuances Titles

Joint Commission on Local Index of Occupational Services, Position Tities and SalaryGovernment Personnel GradesAdministration Circular No.37, September 30, 1989

Joint Commission on Local Changes in the Index of Occupational Services, PositionGovernment Personnel Titles and Salary Grades Issued Under Circular No. 37Administration Circular No.39, October 2, 1990

Joint Commission on Local Guidelines for the Proper Implementation of JointGovernment Personnel Commission Circular No. 39 Dated October 2, 1990Administration Bulletin No.10, March 7, 1991

Republic Act No. 7160, Local Government Code of 1991October 10, 1991

Executive Order No. 503, Providing for the Rules and Regulations ImplementingJanuary 22, 1992 the Transfer of Personnel and Assets, Liabilities and

Records of National Government Agencies WhoseFunctions are to be Devolved to the Local GovernmentUnits and for Other Related Purposes

Civil Service Commission Guidelines and Standards in the Establishment ofMemorandum Circular No. Organizational Structures and Staffing Patterns in Local19, s. 1992, May 7, 1992 Government Units

Administrative Order No. Clarifying the Role of the Department of Budget and42, March 3, 1993 Management in the Compensation and Classification of

Local Government Positions Under R.A. No. 7160

Local Budget Circular No. Guidelines on Compensation and Position Classification in53, September 1, 1993 the Local Government Units

Local Budget Circular No. Guidelines for the Initial Implementation of the Revised54, March 9, 1994 Compensation and Position Classification System in the

Local Government

Local Budget Circular No. Clarificatory Guidelines on the Initial Implementation of54-A, August 7, 1994 the Revised Compensation and Position Classification

System for Devolved Personnel

Local Budget Circular No. Guidelines on Compensation and Position Classification in55, March 15, 1994 the Local Government Units (LGUs)

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Position Classification and Compensation Scheme in LGUs

Issuances Titles

Local Budget Circular No. Guidelines for the Implementation of the Revised56, January 25, 1995 Compensation and Position Classification System (CPCS)

in the Local Government and Other CompensationMatters

Local Budget Circular No. Clarificatory Guidelines on Allowances That Fall Under the57, May 19, 1995 Personal Services (PS) Account

Local Budget Circular No. Compensation of Barangay Officials and Personnel58, July 7, 1995

Local Budget Circular No. Guidelines for the Implementation of the Revised Rates59, Series of 1996 of Representation and Transportation Allowances and

Uniform Allowance in the Local Government Units

Local Budget Circular No. Supplementary Guidelines on the Payment of59-A, December 8, 1997 Representation and Transportation Allowances (RATA) to

Certain Personnel Devolved From the Department ofHealth (DOH), Department of Agriculture (DA) andDepartment of Social Welfare and Development (DSWD)

Local Budget Circular No. Guidelines for the Implementation of the Revised Position60, January 25, 1996 Classification and Compensation System (PCCS) in the

Local Government

Local Budget Circular No. Revised Index of Occupational Services, Position Titles61, March 18, 1996 and Salary Grades (lOS) in Local Government

Executive Order No. 332, Integrating the Barangay Governments Into the RevisedMay 16, 1996 Position Classification and Compensation System in the

Government

Administrative Order No. Directing Strict Compliance with the Compensation282, July 25, 1996 Standardization Law by Local Governments

Local Budget Circular No. Guidelines on the Grant of Honoraria in the Local62, July 29, 1996 Government Units (LGUs)

Local Budget Circular No. Position Classification and Compensation of Barangay63, October 22, 1996 Officials and Personnel

Local Budget Circular No. Guidelines for the Full Implementation of the Revised64, January 22, 1997 Position Classification and Compensation System (PCCS)

in the Local Government

Local Budget Circular No. Guidelines on the Grant of Anniversary Bonus in the Local65, March 3, 1997 Government

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Issuances Titles

Local Budget Circular No. Guidelines on the Payment of Compensation to Ex-Officio66, March 4, 1998 Members of the Local Sanggunian

Local Budget Circular No. Additional Guidelines on the Payment of Compensation to66-A, August 28, 2000 Ex-Officio Members of the Local Sanggunian

.Local Budget Circular No. Guidelines on the Payment of Per Diem to the Members67, March 23, 1998 and Support Staff of the People's Law Enforcement Board

(PLEB)

Local Budget Circular No. Guidelines for the Implementation of the Revised Rates68, June 4, 1998 of Representation and Transportation Allowances and

Uniform Allowance in the Local Government Units

Local Budget Circular No. Guidelines for the Grant of Ten Percent (10%) Salary69, March 21, 2000 Adjustment to Personnel in the Local Government

Effective January 1, 2000

Local Budget Circular No. Adoption of Higher Salary Schedule by Local Government71, October 5, 2000 Units

Local Budget Circular No. Compensation of the Members of the Provincial/City72, December 5, 2000 Mining Regulatory Board

Local Budget Circular No. Guidelines on the Grant of Compensation Benefit to Local73, January 10, 2001 Regulatory Boards/Quasi-Judicial Bodies and Similar

Bodies In Provinces/Cities/Municipalities and BarangayVolunteer Frontline Workers

Local Budget Circular No. Authority to Grant a Maximum of Five Percent (5%)74, June 15, 2001 Salary Adjustment to Personnel in the Local Government

Units (LGUs) Effective July 1, 2001

Local Budget Circular No. Guidelines on Personal Services (PS) Limitation75, July 12, 2002

Local Budget Circular No. Cash Gift of Barangay Officials76, November 5, 2002

Local Budget Circular No. Clarifying Local Budget Circular No. 76 dated November76-A, November 20, 2002 5, 2002 on the Cash Gift of Barangay Officials

Local Budget Circular No. Guidelines on the Provision of Free Quarters to Provincial78, March 8, 2004 Governors and Vice-Governors

Local Budget Circular No. Guidelines for the Implementation of the Revised Rates79, April 1, 2005 of Representation and Transportation Allowances (RATA)

in Local Government Units (LGUs)

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