Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

SIXTEENTH CONGRESS
Third Regular Session

6268

HOUSE BILL NO.

Introduced by REP. FELICIANO BELMONTE, JR.,
REP. NEPTALI M. GONZALES II, REP RONALDO B. ZAMORA,
REP. ELEANDRO JESUS F. MADRONA and REP. ISIDRO T. UNGAB

EXPLANATORY NOTE

Joint Resolution No 4 enacted by Congress in 2009 mandates the review of the
compensation and position classification system after three years from the last year of the
adjustment, to determine the competitiveness of government pay in relation to the private sector
and the compensation strategy to bring government pay closer to market rates. As it stands,
despite their substantial duties and responsibilities, the salaries of individuals in public service
stand only at fifty five percent (55%), or around half, of current market rates.

The proposed Salary Standardization Law (SSL) of 2015 will result in a weighted average
increase of forty five percent (45%) in the compensation of all salary grades, and raise
compensation of government personnel to at least seventy percent (70%) of the private sector
rate. This will be effected through a combination of a salary increase, a 14" month pay and an
enhanced performance-based bonus to be implemented over a four-year period, from January 1,
2016 to January 1, 2019.

Through these adjustments, the bill seeks to:

1, Raise the pay of the government personnel to be competitive with the market and
thereby attract and retain capable and committed personnel;

2. Strengthen the link between pay and performance through an enhanced
performance-based bonus system;

3. Temper the cost of benefit while maximizing the benefits of employees; and

4. Allow higher take-home pay, especially for government personnel belonging to
the lower salary grades.


Legislative action is urgently needed to allow the Government of the Republic of the
Philippines to engage and to retain the services of capable personnel in order to best serve the
needs of the Filipino people.

In view of the foregoing, the immediate passage of this bill is earnestly sought.

FELICIANO BELMONTE, JR.

Amarr ek
NEPTAL{ M. GONZALES II RONALDO B. ZAMORA

LOE

ELEANDRO J F. MADRONA I



Republic of the Philippines
Congress of the Philippines
Metro Manila
Sixteenth Congress

HOUSE BIELNo, 6268

Introduced by REP. FELICIANO BELMONTE, JR.,
REP. NEPTALI M. GONZALES II, REP. RONALDO B. ZAMORA,
REP. ELEANDRO JESUS F. MADRONA, and REP. ISIDRO T. UNGAB

AN ACT MODIFYING THE COMPENSATION AND POSITION CLASSIFICATION
SYSTEM OF CIVILIAN GOVERNMENT PERSONNEL AND THE BASE PAY
SCHEDULE OF MILITARY AND UNIFORMED PERSONNEL IN THE
GOVERNMENT, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

Section 1. Title. - This Act shall be known as the "Salary Standardization Law of 2015” or
the “SSL 2015."

Section 2. Statement of Policy. - It is hereby declared the policy of the State to provide all
government personnel a just and equitable compensation in accordance with the principle of
equal pay for work of equal value. In pursuing this policy, the State shall ensure that:

(a) Differences in pay shall be based upon substantive differences in duties,
responsibilities, accountabilities and qualification requirements of the positions.

(b) Compensation for all civilian government personnel shall be standardized and
rationalized across all government agencies to create an enabling environment that
will promote social justice, integrity, efficiency, productivity, accountability and
excellence in the civil service.

Section 3. Governing Principles. - The following principles shall govern the implementation
of the Compensation and Position Classification System (CPCS) for civilian government
personnel and Base Pay Schedule for the military and uniformed personnel:

(a) The performance-based incentive system shall be strengthened through the integration
of personnel and organizational performance to reward deserving government
personnel and well-performing institutions;

(b) The compensation for government personnel shall be kept fair and reasonable in
recognition of fiscal realities and an efficient allocation of Personnel Services (PS)
cost which shall be maintained at a manageable level in proportion to the overall
expenditure of the government;


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(©) The CPCS shall be periodically reviewed every three (3) years, taking into account
the competitiveness of government pay relative to the private sector, changes in skills
and competency requirement in the bureaucracy, demand for certain expertise,
possible erosion in the purchasing power due to inflation, and other factors:

(@) The compensation for all civilian government personnel shall be competitive with
those in the private sector doing comparable work in order to attract, retain and
motivate a corps of effective, efficient, professional, committed and competent civil
servants; and

(e) The compensation system for the military and uniformed personnel shall likewise
promote pay equity for an effective, efficient, committed, competent and motivated
corps of officers and enlisted personnel. The base pay increase for military and
uniformed personnel shall take into consideration the prevailing fiscal realities,
particularly the effect on pension and the capacity of the government to sustain the
payment thereof.

Section 4. Coverage.- The CPCS herein provided shall apply to all civilian government
personnel in the Executive, Legislative and Judicial Branches, Constitutional Commissions
and other Constitutional Offices, Government-Owned or Controlled Corporations (GOCCs)
not covered by Republic Act (R.A.) No. 10149, and local government units (LGUs). This
shall cover government personnel whether regular, contractual or casual, appointive or
elective; and on full-time or part-time basis.

Section 5. Exclusions. — The following shall be excluded from the coverage of the CPCS:

(a) Military and uniformed personnel which shall be covered by the provisions of
Section 11 hereof:

(b) GOCCs under R.A. No. 10149 which shall be covered by a CPCS established by the
Governance Commission for GOCCs (GCG); and

(©) Individuals whose services are engaged through job orders, contracts of service,
consultancy contracts, and service contracts with no employer-employee relationship.

Section 6. Administration of the CPCS. - As the Administrator of the CPCS, the
Department of Budget and Management (DBM) shall undertake the following:

(a) Modify and update the Index of Occupational Services, Occupational Groups, Classes
and Salary Grades (IOS) as deemed necessary.

(b) Classify and reclassify positions as to the appropriate position titles and salary grades
guided by the Benchmark Position Schedule prescribed herein and the following
factors

(1) The education, experience, and competencies required to perform the duties
and responsibilities of the positions;


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(2) The nature and complexity of the work to be performed:
(3) The kind of supervision received and/or exercised;

(@) Decision-making responsibil

(5) Accountability for funds, properties, equipment, and records;
(6) Hardship, hazard and personal risk involved in the job; and
(7) The demand for certain expertise.

(©) Conduct compensation surveys on private industry to determine prevailing practices
and rates of pay for comparable work in the government;

(@ Formulate and issue the implementing guidelines on approved changes in the salary
schedule, and the criteria and guidelines for approved changes in the rates of
allowances, benefits and incentives: and

(e) Resolve issues on the implementation of the CPCS.

Section 7. Position Classification System — A Position Classification System shall be
implemented and administered to organize and group positions by occupational groups,
series, and classes, according to similarities or differences in duties and responsibilities, and
qualification requirements pursuant to the policies, rules and regulations issued by the DBM.
The Position Classification System shall be the basis for determining the appropriate position
title, level, and salary grade.

(a) Categories of Positions ~ The categories of positions shall be as follows: (i) Sub-
professional Category; (ii) Professional Category; and (iii) Executive Category.

(1) Sub-professional Category — This category includes positions involved in
routine, manual, or clerical work in support of office operations or those engaged
in arts, crafts, and trades.

These positions require completion of up to elementary education, secondary or
vocational education or completion of at least two (2) years of college education,
and skills acquired through training and moderate to considerable experience and
knowledge of a limited subject matter or skills in arts, crafts, trades, manual and
clerical work.

(2) Professional Category — This category includes positions performing analytical,
technical and administrative work requiring the exercise of profession, application
of knowledge acquired through formal training in a particular field, or use of
natural, creative and artistic ability or talent in arts and letters.

These positions generally require thorough knowledge in the field of arts and
sciences or learning acquired through the completion of a bachelor’s, master’s or
doctorate degrees.


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(3) Executive Category — This category includes managerial positions involved in the
execution of laws, rules and regulations, both in the national and local
governments, in the legislation of laws and ordinances, and in the administration
of justice. Appointive executive positions require thorough knowledge acquired
through completion of at least a bachelor’s degree. Elective executive positions
only require knowledge acquired through the minimum education prescribed by
the Constitution and existing laws.

(b) Index of Occupational Services, Occupational Groups, Classes and Salary Grades —
The IOS shall contain all occupational groups, position titles, and salary grades for all
civilian government personnel. The existing levels of positions shall be reviewed to
convert them to the more appropriate number of levels that recognizes reasonable
gradations in the levels of difficulty, substantial changes and complexity of the duties
and responsibilities of positions, work methods, skills, competencies and other
relevant factors and to convert them into generic, brief but descriptive, and gender-
neutral class or position titles.

(c) Modification of Position Classification System - Any modification of the Position
Classification System shall be subject to the following guidelines:

(1) That positions are to be classified on the basis of their duties and responsibilities,
and qualification requirements;

(2) That new position titles are to be created only when there are new sets of duties
and responsibilities; and

(3) That position titles may be created, abolished, consolidated or divided as a result
of organization, reorganization, and/or substantial changes in duties and
responsibilities, and work methods.

Section 8. Compensation System. — A Compensation System shall be administered to
determine the rates of pay for employees based on the position classification. The
Compensation System shall consist of: (j) the salary schedule; (ii) set of allowances, benefits
and incentives; (iii) policies, rules and regulations on the administration of the salary
schedule and grant of allowances, benefits and incentives.

(a) Total Compensation Framework — The total compensation to be given to all civilian
government personnel for services rendered shall be limited to the following:

(1) Basic Salaries, including Step Increments;
(2) Standard Allowances and Benefits:
(3) Specific-Purpose Allowances and Benefits; and

(4) Incentives and performance-based pay.


Provided, That the Total Compensation Framework shall exclude all indirect
compensation under existing laws such as, but not limited to: life and retirement
insurance benefits; employee compensation insurance; health insurance; Pag-IBIG
Fund benefits; and Provident Fund benefits.

(b) Compensation Adjustment Strategy — The strategy for this new compensation scheme
is to bring the pay of government personnel closer to the prevailing rates in the private
sector to attract and retain competent and committed personnel in the public sector.
For this purpose, this Act shall:

(1) Raise the minimum salary for Salary Grade 1 from the current rate of Nine
Thousand Pesos (P9,000) to Eleven Thousand Sixty Fight Pesos (P11,068) to
make it even more competitive with the market rates;

(2) Bring the compensation of goverment personnel closer to their private
counterparts to at least 70% of the market rate for all salary grades;

(3) Ensure that authorized salaries for each of the salary grade allocation of
government personnel shall not overlap to recognize differences in duties and
responsibilities for the position;

(4) Provide for a compensation adjustment partly as basic salary and partly as Mid-
Year 14" month pay to maximize the employees’ net take home pay; and

(5) Strengthen the link between government pay and performance by enhancing the
performance-based bonus to recognize the government personnel who play a
greater role and carry a heavier responsibility in improving performance.

(c) Implementation Schedule — The SSL 2015 shall be implemented in four tranches.

(1) In January 1, 2016, the compensation adjustment will be in the form of the first
tranche salary increase and a Mid-Year Bonus.

(2) By January 1, 2017, the compensation adjustment will consist of the second
tranche salary increase, the Mid-Year Bonus and a fifty percent (50%)
implementation of the enhanced Performance-Based Bonus.

(3) By January 1, 2018, the compensation adjustment will include the third tranche
salary increase, Mid-Year Bonus and the enhanced Performance-Based Bonus.

(4) Finally in January 1, 2019, the full implementation of the SSL 2015 will be
composed of the final tranche salary increase, the Mid-Year Bonus and the
enhanced Performance-Based Bonus.

(a) New Salary Rates, including Step Increments - The modified Salary Schedule for
Civilian Personnel, to be implemented in four (4) tranches, shall be as follows:


ouae

First Tranche

pate Step 1 | Step2 | Step3 | Step4 | Step5S | Step6 | Step7 | Step8
a 9478 9,568 1,660 9,753. 9,846 9,949 10,036 | 10,132
2 | 10,159 | 10,255 | 10,351 | 10,449 | 10,547 | 10,647 | 10,747 | 10,848
3__| 10,883 | 10,985 | 11,089 | 11,193 | 11,298 | 11,405 | 11,512 | 11,621
4 11,658 | 11,767 | 11,878 | 11,990 | 12,103 | 12,217 | 12,333 | 12,448
5 12,488 | 12,644 | 12,725 | 12,844 | 12,965 | 13,087 | 13,211 13,335
6 13,378 | 13,504 | 13,630 | 13,759 | 13,889 | 14,020 | 14,152 | 14,285
7 14,331 | 14,466 | 14,602 | 14,740 | 14,878 | 15,018 | 15,159 | 15,303
8 | 15,368 | 15,519 | 15,670 | 15,823 | 15,978 | 16,133 | 16,291 | 16,450
9 | 16,512 | 16,671 | 16,830 | 16,992 | 17,155 | 17,319 | 17,485 | 17,653
10 | 17,730 | 17,900 | 18,071 | 18,245 | 18,420 | 18,634 | 18,775 | 18,955
11_| 19,077 | 19,286 | 19,496 | 19,709 | 19,925 | 20,142 | 20,362 | 20,585
12 | 20,651 | 20,870 | 21,091 | 21,315 | 21,540 | 21,769 | 21,999 | 22,232
13 | 22,328 | 22,564 | 22,804 | 23,045 | 23,289 | 23,536 | 23,786 | 24,037
14__| 24,141 | 24,396 | 24,655 | 24,916 | 25,180 | 25,447 | 25,717 | 25,989
15 | 26,192 | 26,489 | 26,790 | 27,094 | 27,401 | 27,712 | 28,027 | 28,344
16 _| 28,417 | 28,740 | 29,066 | 29,396 | 29,729 | 30,066 | 30,408 | 30,752
17__| 30,831 | 31,183 | 31,536 | 31,893 | 32,255 | 32,622 | 32,991 | 33,366
18 | 33,452 | 33,831 | 34.215 | 34,603 | 34,996 | 35,393 | 35,795 | 36.201
19 | 36,409 | 36,857 | 37,312 | 37,771 | 38,237 | 38,709 | 39,186 | 39,670
20 | 39,768 | 40,259 | 40,755 | 41,258 | 41,766 | 42,281 | 42,802 | 43,330
21_| 43,439 | 43,974 | 44.517 | 45,066 | 45,621 | 46,183 | 46,753 | 47,329
22__| 47.448 | 48,032 | 48,625 | 49,224 | 49,831 | 50,445 | 51,067 | 51,697
23__| 51,826 | 52,466 | 53.112 | 53,767 | 54,430 | 55,101 | 55,781 | 56,468
24 | 56610 | 57,308 | 58,014 | 58,730 | 59,453 | 60,187 | 60,928 | 61,679
25__| 61,971 | 62,735 | 63,508 | 64.291 | 65,083 | 65,885 | 66,698 | 67,520
26 | 67,690 | 68,524 | 69,369 | 70,224 | 71,090 | 71,967 | 72,855 | 73,751
27_| 73,937 | 74,849 | 75,71 | 76.705 | 77,651 | 78,608 | 79,577 | 80,567
28 | 80,760 | 81,756 | 82,764 | 83,784 | 84,817 | 85,862 | 86,921 | 87,993
29 | 88.214 | 89,301 | 90,402 | 91,516 | 92,644 | 93.786 | 94,943 | 96,113
30 | 96,354 | 97,543 | 98,745 | 99,962 | 101,195 | 102,442 | 103,705 | 104,984 |
31__ | 117,086 | 118,623 | 120,180 | 121,758 | 123,356 | 124,975 | 126,616 | 128,278
135,376 | 137,174 | 138,996 | 140,843 | 142,714 | 144,610 | 146,531 | 148,478
160,924 | 165.752
Second Tranche
ake Step1 | Step2 | Step3 | Step4 | StepS | Step6 | Step7 | Step 8
1_[_ 9981 | 10,072 | 10,165 | 10.258 | 10352 | 10.453 | 10,543 | 10,640
2__| 10,667 | 10,761 | 10,856 | 10,952 | 11,049 | 11.147 | 11,245 | 11,345



RUN

Salary | Step | step2 | Step3 | Step4 | StepS | Step6 | step7 | steps |
3: 11,387 | 11,488 11,589 | 11,691 11,795 [ 11,899 12,004 | 12,110
4 [12,155 12,262 | 12,371 | 12,480 | 12,591 | 12,702 | 12,814 | 12.927
S| 12,975 | 13,117 | 13.206 | 13,322 | 13,440 | 13,559 | 13,679 | 13,799
6 | 13,851 | 13,973 | 14,096 | 14221 | 14347 | 14,474 | 14,602 | 14,731
7_| 14,785 | 14,916 | 15,048 | 15,181 | 15,315 | 15,450 | 15,587 | 15,725
8 | 15,818 | 15,969 | 16,121 | 16275 | 16,430 | 16,586 | 16,744 | 16,903
9 | 16,986 | 17,142 | 17.299 | 17.458 | 17,618 | 17,780 | 17,943 | 18,108
10 | 18,217 | 18,385 | 18,553 | 18,724 | 18,896 | 19,095 | 19,244 | 19,421
11_ | 19,620 | 19,853 | 20,088 | 20,326 | 20,567 | 20,811 | 21,058 | 21,307
12__| 21,387 | 21,606 | 21,868 | 22,113 | 22,361 22,864 | 23,120
13__ | 23.257 | 23,517 | 23,780 | 24,047 | 24,315 | 24587 | 24,863 | 25,141
14 | 25.290 | 25,573 | 25,859 | 26,149 | 26,441 | 26,737 | 27,036 | 27339
15 | 27,565 | 27,887 | 28,214 | 28,544 | 28,877 | 29.214 | 29,557 | 29,902
16 | 30,044 | 30,396 | 30,751 | 31,111 | 31,474 | 31,843 | 32,215 | 32,592
17_| 32,747 | 33,131 | 33,518 | 33,909 | 34,306 | 34,707 | 35,113 | 35,524
18 | 35,693 | 36.111 | 36,532 | 36,960 | 37,392 | 37,829 | 38.272 | 38,719
19 | 39,151 | 39,685 | 40,227 | 40,776 | 41,333 | 41,898 | 42,470 | 43,051
20 | 43,250 | 43,841 | 44,440 | 45,047 | 45,662 | 46,285 | 46,917 | 47,559
21_| 47,779 | 48,432 | 49,094 | 49,764 | 50,443 | 51,132 | 51,831 | 52,539
22_ | 52,783 | 53,503 | $4,234 | 54,975 | 35,726 | 56,487 | 57,258 | 58,040
23 | 58,310 | 59,106 | 59.913 | 60,732 | 61,561 | 62,402 | 63,255 | 64,118
24 | 64,416 | 65,296 | 66,187 | 67,092 | 68,008 | 68,937 | 69,878 | 70,832 |
25__| 71,476 | 72,452 | 73,441 | 74,444 | 75,461 | 76,491 | 77,536 | 78,595
26 | 78,960 | 80,039 | 81,132 | 82,240 | 83,363 | 84,502 | 85,657 | 86,825
27_| 87.229 | 88,420 | 89,628 | 90,852 | 92,093 | 93,351 | 94,625 | 95,925
28 | 96,363 | 97,679 | 99,013 | 100,366 | 101,736 | 103,126 | 104,534 | 105,962
29 _ | 106,454 | 107,908 | 109,382 | 110,875 | 112,390 | 113,925 | 115,481 | 117,058
30__ | 117,601 | 119,208 | 120,836 | 122,486 | 124,159 | 125,855 | 127,573 | 129,316
31_ | 152,325 | 154,649 | 157,008 | 159,404 | 161,836 | 164,305 | 166,812 | 169,357
32_ | 177,929 | 180,700 | 183,513 | 186,372 | 189,274 | 192,221 | 195,215 | 198,255
33_ | 215,804 | 222,278

‘Third Tranche

S28 | Step1 | Step2 | Step3 | Step4 | Steps | Steps | Step7 | Steps
1__| 10,510 | 10,602 | 10,695 | 10,789 | 10884 | 10.982 | 11,076 | 1173
2 | 11,200 | 11,293 | 11,386 | 11,480 | 11,575 | 11,671 | 11,767 | 11,864
3 | 1914 | 12,013 | 12,112 | 12,212 | 12,313 | 12,414 | 12,517 | 12,620
4 | 12,674 | 12,778 | 12,884 | 12,990 | 13,097 | 13,206 | 13315 | 13,424
3 | 13,481 | 13,606 | 13,705 | 13,818 | 13,932 | 14,047 | 14,163 | 14,280
6 | 14340 | 14.459 | 14,578 | 14,699 | 14,820 | 14,942 | 15,066 | 15,190

7


Final Tranche

PUNE

Step 1 Step3 | Step4 | Step5 | Step6 | Step7 | Step8
15,254 15,507 _| 15,635_| 15,765 | 15,895 | 16,026 | 16,158
16,282 16,585 | 16,739 | 16,895 | 17,051 | 17,209 | 17,369
17,473 17,781 _| 17,937 | 18,095 | 18,253 | 18,413 | 18,575
18,718 19,048 | 19.215 | 19,384 | 19,567 | 19,725 | 19,898
20,179 20,698 | 20.963 | 21,231 | 21,502 | 21,777 | 22,055
22,149 22,674 | 22,942 | 23,212 | 23,486 | 23,763 | 24,043
24,224 24,799 | 25,091 | 25,387 | 25,686 | 25,989 | 26,296
26,494 27,122 | 27,442 | 27,766 | 28,093 | 28,424 | 28,759
29,010 29,713 | 30,071 | 30,432 _| 30,799 | 31,170 | 31,545
31,765 _| 32,535 _| 32,926 | 33,323 | 33,724 | 34,130 | 34,541
34,781 35,624 | 36,053 | 36,487 | 36,927 | 37,371 | 37,821
38,085 | 39,007 | 39,477 | 39,952 | 40,433 | 40,920 | 41,413
42,099 43,371 | 44,020 | 44,680 | 45,350 | 46,030 | 46,720
47,037 48,457 | 49,184 | 49,921 | 50,669 | 51,428 | 52,199
52,554 | 54,141 | 54,952 | 55,776 | 56,612 | 57,460 | 58,322
58,717 | 60,491 | 61,397 | 62,318 | 63,252 | 64,200 | 65,162
65,604 | 67,585 | 68,598 | 69,627 | 70,670 | 71,730 | 72,805
73,299 | 75,512 | 76,644 | 77,793 | 78,959 | 80,143 | 81,344
82,439 | 84.928 | 86,201 | 87,493 | 88,805 | 90,136 | 91,487
92,108 94,889 | 96,312 | 97,755 _| 99,221 | 100,708 | 102,217
102,910 | 104,453 | 106,019 | 107,608 | 109,221 | 110,858 | 112,519 | 114,210
114,981 | 116,704 | 118,453 | 120,229 | 122,031 | 123,860 | 125,716 | 127,601
128,467 | 130,392 | 132,346 | 134,330 | 136,343 | 138,387 | 140,461 | 142,566
143,534 | 145,685 | 147,869 | 150,085 | 152,335 | 154,618 | 156,935 | 159,288
198,168 | 201,615 | 205,121 | 208,689 | 212,318 | 216,011 | 219,768 | 223,590
233,857 | 238,035 | 242,288 | 246,618 | 251,024 | 255,509 | 260,074 | 264,721
289,401 | 298,083

Step 4 | StepS | Step6 | Step7 | Step8
1__| 11,068 11,254 | 11,348 [11,443 | 11,538 | 11,635 | 11,732
2__| 11,761 11,942 | 12,034 | 12,126 | 12,219 | 12,313 | 12,407
3_| 12,466 12,658 | 12,756 | 12,854 | 12,952 | 13,052 | 13,152
4 | 13,214 13,418 | 13,521 | 13,625 | 13,729 | 13,835 | 13,941
5__| 14,007 14,223 | 14,332 | 14,442 | 14,553 | 14,665_|_ 14,77
6 | 14,847 15,076 | 15,192 | 15,309 | 15,426 | 15,545 | 15,664
7_| 15,738 15,981 | 16,104 | 16.227 | 16,352 | 16477 | 16,604
8 | 16,758 17,063 | 17.217 | 17,372_| 17.529 | 17,688 | 17,848
9 | 17,975 18,27 | 18,430 | 18,584 | 18,739 | 18,896 | 19,054
10 | 19,233 19,556 | 19,720 | 19,884 | 20,051 | 20,218 | 20,387



Salary Step1 | Step2 | Step3 | Step4 | steps | step6 | Step7 | steps
11__| 20,754 | 21,038 | 21,327 | 21,619 | 21,915 | 22,216 | 22,520 | 22,829
12 | 22,938 | 23,222 | 23,510 | 23,801 | 24,096 | 24.395 | 24,697 | 25,003
13 | 25,232 | 25.545 | 25,861 | 26,181 | 26,506 | 26834 | 27,166 | 27.503
14 _| 27,755 | 28,099 | 28.447 | 28,800 | 29,156 | 29,517 | 29.883 | 30.253
15 | 30,531 | 30,909 | 31,292 | 31,680 | 32,072 | 32,469 | 32.871 | 33.279
16 | 33,584 | 34,000 | 34.421 | 34,847 | 35,279 | 35,716 | 36,159 | 36,606 |
17 | 36,942 | 37,400 | 37,863 | 38,332 | 38,807 | 39,288 | 39,774 | 40,267
18 | 40,637 | 41,140 | 41,650 | 42.165 | 42,688 | 43.217 | 43,752 | 44,294
19 | 45.269 | 46,008 47,522 | 48,298 | 49,086 | 49,888 | 50,702
20 51,155 _| 51,989 53,700 _| 54,577 _| 55,468 | 56,373 | 57,293
2i__| 57,805 | 38.748 60,681 | 61,672 | 62,678 | 63,701 | 64,741
22 | 65,319 | 66,385 68,570 | 69,689 | 70,827 | 71,983 | 73,157
23 | 73,811 | 75,015 77,484 | 78,749 | 80,034 | 81,340 | 82,668
24 | 83,406 | 84,767 | 87,557 | 88,986 | 90,439 | 91,915 | 93,415
25__| 95,083 | 96,635 99,815 | 101,444 | 103,100 | 104,783 | 106,493
26 | 107,444 | 109,197 112,791 | 114,632 | 116,503 | 118,404 | 120,337
27_ [121,411 | 123,393 127,454 | 129,534 | 131,648 | 133,797 | 135,981
28__| 137,195 | 139,434 144,023 | 146,373 | 148,763 | 151,191 | 153,658
29__ | 155,030 | 157,561 162,746 | 165,402 | 168,102 | 170,845 | 173,634
30 | 175,184 | 178,043, 183,903 | 186,904 | 189,955 | 193,055 | 196,206
31_ | 257,809 | 262,844 | 267,978 | 273,212 | 278,549 | 283,989 | 289,536 | 295,191

313,564 | 319,887 | 326,338 | 332,919 | 339,633 | 346,483 | 353,470

399,739

The rates in the above Salary Schedule represents monthly remuneration for regular or
contractual personnel, whether appointive or elective, and on full-time employment.
The remuneration for those on a part-time basis shall be proportionate to the actual
services rendered.

Casual personnel shall be paid a daily wage rate computed by dividing the
corresponding monthly salary rate in the above schedule by twenty-two (22) working
days.

Standard Allowances and Benefits - These are allowances and benefits given to all
employees across agencies at prescribed rates, guidelines, rules and regulations,
which shall be limited to the following:

(1) Personnel Economic Relief Allowance ~ Allowance to supplement the basic salary
due to the rising cost of living to be given at Two Thousand Pesos (P2,000) per
month;

(2) Uniform or Clothing Allowance — To provide for the payment of the required
work attire of government employees at prescribed rates;


(0)

(3) Mid-year Bonus — Equivalent to one (1) month basic salary to be given not earlier
than May of every year; and

(4) Year-end Bonus and Cash Gift — The Year-end Bonus is equivalent to one qd)
month basic salary and Cash Gift at prescribed rates. ‘These shall be given not
earlier than November of every year.

Specific-Purpose Allowances and Benefits - These are allowances and benefits given
to employees under certain situations at prescribed rates, guidelines, rules and
regulations, which shall be limited to the following:

(1) Representation and Transportation Allowances — These are given to civilian
government personnel occupying division chief to Department Secretary positions
or equivalent level as may be determined by the DBM at monthly standard rates in
order to defray transportation and representation expenses while in the actual
performance of the duties of the positions;

(2) Per Diem — This is a compensation for attendance in meetings in view of
membership in collegial bodies authorized by law;

(3) Honoraria ~ These are token pa
the regular duties and responsibil

ents in recognition of services rendered beyond
ies of positions;

A) Night-Shift Differential — This premium is given to an employee whose regular
working hours fall wholly or partially within six o’clock in the evening to six
o’clock in the morning of the following day;

(5) Overtime Pay — This is cash payment for work performed by an employee beyond
the regular working hours in a day: and those performed on rest days, holidays
and non-working days;

(6) Subsistence Allowance ~ This is an allowance for meal or sustenance given only
to government personnel who, by the nature of the duties and responsibilities of
their positions have to make their services available at their places of work even
during mealtimes. This shall be given at the prescribed standard rate;

(7) Hazard Pay ~ This is a premium given only to government personnel exposed to
hazardous situations such as, but not limited to, assignment in strife-tom or
embattled areas, distressed or isolated stations, prison camps, mental hospitals,
leprosaria, radiation-exposed clinics, laboratories or workshops, disease-infested
areas and areas declared under state of calamity or emergency which pose
occupational risks or perils to life:

(8) Special Counsel Allowance — This is an allowance for lawyer personnel in the
legal staff of departments, bureaus or offices of the National Government
deputized by the Office of the Solicitor General to appear in court as special
counsel in collaboration with the Solicitor General or Prosecutors concerned;

10


Coarvanewne

10
i
12
13
14
15
16
7
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41

42
43
44
45

46
47

(9) Overseas and Other Allowances for Government Personnel Stationed Abroad —
These are allowances given to government officials and employees assigned
abroad at such rates authorized under R.A. No. 7157, as amended, and its
implementing rules and regulations; and

(10) Other allowances and benefits granted under specific conditions and situations,
related to the actual performance of work as may be determined by the DBM.

(g) Incentives and Performance-based Pay — Benefits which are categorized as incentives

and performance-based pay shall be limited to the following:

(1) Enhanced Performance-Based Bonus ~ This will be given subject to the
achievement by departments or agencies and individual personnel of their
performance targets and compliance with good governance conditions. The Inter-
Agency Task Force on the Harmonization of National Government Performance
Monitoring, Information and Reporting Systems created under Administrative
Order No. 25, s. 2011 shall prescribe the procedures for the grant of this incentive
and the conditions on eligibility. The bonus will be equivalent to one (1) month up
to two (2) months salary, providing for a progressive rate as the position and
responsibility in improving agency performance becomes higher:

(2) Loyalty Incentive — This is an incentive to reward the personnel’s loyalty to
government service with at least satisfactory performance during his/her milestone
years:

(3) Anniversary Bonus — This is an incentive to recognize the personnel’s
participative efforts in and contributions to the agencies’ continuing and/or viable
existence to be given to employees on the occasion of their agencies’ milestone
anniversaries;

(4) Productivity Enhancement Incentive ~ This will be given in December of every
year at P5,000 to all government employees to improve their productivity;

(6) Collective Negotiation Agreement (CNA) Incentive ~ This may be granted to both
management and rank-and-file employees of agencies with approved and
successfully implemented CNAs in recognition of their efforts in accomplishing
performance targets at lesser cost, and in attaining more efficient and viable
operations through cost-cutting measures and systems improvement. Such CNA.
incentive shall be sourced from allowable MOOE items of agencies; and

(6) Other existing authorized benefits to be categorized by the DBM as incentives.

(h) Special Allowances — The grant of Special Allowances to certain officials and

employees as provided under R.A. Nos. 9227, 9279, 9347, 9406 and 9417 shall be
considered as an advance implementation of any subsequent increases in the salary
rates under R.A. No. 6758, as amended.

Accordingly, the full amount of Special Allowances or portions thereof that have been
received shall be converted as part of basic salaries as a result of the salary increases
1


BwNe

warvou

1
12
13
14
15
16
7
18

(

authorized pursuant to this Act and such other subsequent issuances and/or laws
authorizing salary adjustments: Provided, That such Special Allowances shall cease
to be granted once the full amount of the authorized Special Allowances have been
received by the employee concerned.

Magna Carta Benefits — These are the benefits authorized for specific officials and
employees under Magna Carta laws that may be categorized in the Total
Compensation Framework in accordance with the guidelines, rules and regulations to
be issued by the DBM.

The DBM, in coordination with the agencies concerned, shall determine the
qualifications, conditions and rates in the grant of said benefits. Accordingly, the
consultative councils, departments and officials previously authorized to issue the
implementing rules and regulations of Magna Carta benefits shall no longer exercise
said function relative to the grant of such benefits.

Section 9. Salary Grade Assignments of Positions. - The salary grades for positions for
constitutional officials and their equivalent shall be:

Salary Grade Position
33 President of the Philippines
32 Vice-President of the Philippines
32 President of the Senate of the Philippines
32 Speaker of the House of Representatives
32 Chief Justice of the Supreme Court
31 Senator
31 Member of the House of Representatives
31 Associate Justice of the Supreme Court
31 Chairman of a Constitutional Commission under Article IX of the|
Constitution
30 Member of a Constitutional Commission under Article IX of the Constitution

Notwithstanding the provisions of law to the contrary, the DBM shall review and reclassify
as necessary the salary grade assignments for positions below those for constitutional
officials and their equivalent for possible modifications in view of organizational,
technological, professional and other developments, guided by the following benchmark

positions:

Position Title Salary Grade
‘Administrative Aide I i
Laboratory Aide I 2
Administrative Aide III 3
‘Administrative Aide IV 4
Media Production Aide 3
Medical Laboratory Technician I 6
‘Administrative Assistant I a

12


Position Title Salary Grade
Internal Auditing Assistant 8
Midwife I 9
Legal Assistant I 10
Teacher I u
Instructor [ 12
Science Research Specialist I 13
Executive Assistant I 14
Nurse II 15
| Medical Officer I 16
Assistant Professor IIT 17
[Social Welfare Officer III 18
[Engineer IIT 19
Pharmacist V 20
Medical Officer IIT 21
‘Supervising Science Research Specialist 22
Attorney IIT 23
Chief Administrative Officer 24
Director I 25
Director II 26
Director III 27
Director IV 28
Department Assistant Secretary 29

Section 10. Compensation for Local Government Unit Personnel.— The salaries,
allowances, benefits and incentives of LGU personnel shall be based on the rates authorized
herein and those determined by the DBM, subject to the PS limitation under Sections 325 and
331 of R.A. No. 7160 and authority from the sanggunian as provided under Sections 447(a),
458(a) and 468(a) of R.A. No. 7160.

In the implementation of the salary increases, LGUs shall likewise ensure compliance with

the following:

(a) The salaries of LGU personnel that may be authorized shall not exceed the percentage
of the Salary Schedule prescribed for the respective LGUs’ income classification

stated below:
Percentage of the Salary Schedule
ForProvinees/Cities For Municipalities
|" Special Cities 100%
Ist Class 100% 90%
2nd Class 95% 85%
3rd Class 90% 80%
|__ 4th Class 85% 75%
5th Class 80% 70%

13


6 Class 15% 65%
1
2 (b) The rates of RATA shall be determined based on the above income class schedule.
2
4 (c) The basic pay of barangay personnel shall be in the form of honoraria which shall not
5 exceed the percentage of the Salary Schedule adopted by the LGU to which it
6 belongs. They may likewise receive year-end bonus based on the monthly honoraria
7 as of October 31 of the year and cash gift of P5,000.
8
9 However, the minimum year-end bonus of One Thousand Pesos (P1,000.00) for the
10 punong barangay and Six Hundred Pesos (P600.00) for other mandatory barangay
uu officials shall not be subject to the PS limitation.
12
13 (d) In case of partial implementation of the authorized compensation rates, the same shall
14 be at uniform percentage across all positions for every LGU.
15

16 Section 11. Military and Uniformed Personnel. ~ The military personnel of the Department
17 _ of National Defense (DND) and the uniformed personnel of the Department of the Interior
18 and Local Government (DILG), the Philippine Coast Guard (PCG) and the National Mapping
19 _ and Resource Information Authority (NAMRIA) shall be covered by the Base Pay Schedule,
20 _ as follows:

21
DILG Monthly Base Pay
DND PCG NAMRIA | first | Second | Third | Fourth
BOI Shel BRE | ENE APS EROS: Tranche {Tranche | Tranche | Tranche|
Candidate
Soldier
Apprentice | Apprentice
Fire/Jail Officer | p05, Seaman’ | Seaman/
Private : Police Officer | ama Seaman | 15256 | 15,691 | 16,138 | 16,597
Third Class_| Third Class
Private First Seaman Seaman
Class Second Class se | 2 FAO9. |) AeeTAgs | ABBA
Fire/Jail Officer ‘Seaman First | Seaman First
Corporal it Police Officer it | Senin t Claes | 17,639 | 18,372 | 19,137 | 19,933
Sergeant Pent Oticer | Peny Oimicer | 18,589 | 19,474 | 20,401 | 21,372
Staff | Firelail Officer | Police Omicer | Petty Officer | Pety OMticer | 45 644 | 20,673 | 21.757 | 22.098
Sergeant UL ul u nM
han Petty Officer | Petty Officer | 21 313 | 22,534 | 23,824 | 25,189
Sergeant 1 1
Master Senior Fire) | Senior Police | ChiefPety | ChiefPeny | ,,
Sergeant | Jail Officer I Officer I Officer ‘Officer |/ 297124, //24.900) | 126,080.) 271707

14


DILG

NAMRIA.

Monthly Base Pay

5

DND First [Second | Third | Fourth
Tet Pes Tranche |Tranche | Tranche | Tranche
Senior Master | Senior Fire’ | Senior Police | Senior Chief | Senior Chief
Sergeant | Jail Officer II Officer Il | Peny Officer | Penty Officer | 75°88 | 26.770 | 28,563 | 30,477
Chief Master | Senior Fire/Jail | Senior Police | Master Chief | Master Chief |, , 3
Sergeant Officer III Officer I! | Petty Officer | Petty Officer | 2736 | 29.363 | 31,574 | 33,952
First Chief oar lca First Master | First Master
Master | Senior FireVail | “Senior Police | chit Peuy | ChietPeny | 29,826 | 32,437 | 35,277 | 38,366
Sergeant Ofticer Officer
Cadet Cadet 29,826 | 32,437 | 35,277 | 38,366
29,826 | 32,437 | 35,277 | 38,366
Lieutenant
Second =
ane Ensign Ensign} 32,937 | 36,228 | 39,848 | 43,829
First Lieutenant | Lieutenant
Lieatant | Inspector Inspector | remnant saonnans, | 35,977 | 40,022 | 44,522 | 49,328
, Lieutenant | Lieutenant
Captain | Senior inspector | Senior Inspector | Lieutenant | Lieutenant | 39.709 | 44,699 | so.201 | 50,582
= Lieutenant
Major | Chief Inspector | Chief Inspector cacutenant | 42,458 | 48,313 | 54,975 | 62,555
Lcutenant | Superintendent | Superintendent Commander | 46,479 | 53,608 | 61,830 | 71,313
Senior Senior ; ae:
Colonel | superintendent | Superintendent | atin Captain} 50,767 | 59,220 | 69,081 | 80,583
Brigadier Chief Chief :
Geecral_ | Superintendent | Superinendent | Commodore | Commodore | 55,452 | 65,421 | 77,182 | 91,058
pas Director Director | Rear Admiral | Rear Admiral | 60,570 | 72,273 | 86,236 | 102,896
Vice Admiral | Vice Admiral | 66,012 | 79.251 | 95,147 [114235
Lieutenant Deputy Director ;
oe ees Admiral | Admiral | 71,453 | 86,228 | 104,058] 125,574
General Director General 82,384 | 100,551 | 122,723] 149,785

rey:

Nounwne

‘The remuneration for military and uniformed personnel shall be reckoned on a separate Total
Compensation Framework, to be authorized by the President of the Philippines, which shall
include: (i) Base Pay, including Longevity Pay; (ji) Standard Allowances and Benefits;
(iii) Specific-Purpose Allowances and Benefits; and (iv) Incentives and performance-based

15


All existing types of allowances and benefits for military and uniformed personnel shall
continue to be authorized.

Notwithstanding the provisions of Presidential Decree (P.D.) No. 1638 and R.A. No. 8551,
and considering the pendency of the passage of a pension reform law establishing a
sustainable and just pension system for military and uniformed personnel, the indexation of
pension benefits of retired military and uniformed personnel with the base pay for those in
the active service shall be suspended insofar as the base pay increase authorized in this Act.

Section 12. Exempt Entities — Exempt entities refer to: (i) government agencies that are not
covered by the CPCS authorized under R.A. No. 6758, as amended; (ii) GOCCs governed by
the CPCS established by GCG under R.A. No. 10149; and (iii) those authorized by law and
have actually adopted their own compensation and position classification system.

Exempt entities shall be governed by their respective compensation and position
classification systems which shall be made effective upon the recommendation of the DBM.
and approval by the President of the Philippines. Any increase or adjustments thereon shall
be similarly subject to the foregoing recommendation and approval.

All exempt entities shall submit their existing compensation and position classification
systems and their implementation status to the DBM.

Section 13. Non-diminution in the Basic Salaries of Incumbent Employees — There
shall be no diminution in the basic salaries of incumbent employees as a result of changes in
the CPCS for civilian government personnel. This shall not apply to any other instances such
as in the case of voluntary demotion.

Section 14, Prohibition on Additional Compensation. — Government agencies, including
GOCCS/GFls and LGUs are hereby prohibited from assessing or charging other government
entities, GOCCs/GFls or LGUs for services rendered by its officials and employees as part of
their regular functions for purposes of paying additional compensation to said officials and
employees.

Section 15. Implementation Schedule. - For National Government employees, the Salary
Schedule in Section (8)(4) and the Base Pay Schedule in Section 11 shall be implemented in
four (4) equal yearly tranches but in no case beyond four (4) years: Provided, That the initial
implementation shall take effect on January 1, 2016.

For GOCCs and LGUs, the implementation period shall be at least four (4) years depending
on their financial capabilities: Provided, That the initial implementation shall not be earlier
than January 1, 2016, subject to the PS limitation for LGUs under Sections 325 and 331 of
R.A. No. 7160.

Section 16. Applicability to Certain Officials. - Pursuant to Section 6 of Article VII of the
Constitution, the salary increase prescribed herein for the President and the Vice-President,
shall take effect only afier the expiration of the term of the incumbent during which such
increase was approved. With respect to the Members of Congress, the implementation of the
salary increase shall take effect after the expiration of the full term of all the Members of the

16


Senate and the House of Representatives approving such increase in accordance with Section
10 of Article VI of the Constitution.

The implementation of this Act with respect to the regular Members of the Cabinet shall be
effective starting July 1, 2016.

Section 17. Funding Source. - The funding sources for the amounts necessary to implement
this Act shall be as follows:

(a) For national government agencies, the amount shall be charged against the
appropriations set aside for the purpose in the FY 2016 General Appropriations Act,
Thereafter, such amounts as are needed shall be included in the annual General
Appropriations Act.

(b) For GOCCs, the amounts shall come from their respective corporate funds in the
corporate operating budgets approved by DBM. Government corporations which do
not have adequate or sufficient funds shall only partially implement the established
rates: Provided, That any partial implementation shall be at uniform proportion of the
established rates for all positions in each government corporation; and

(c) For LGUs, the amounts shall be charged against their respective local government
funds in accordance with the pertinent provisions of this Act and R.A. No. 7160.

Section 18. Separability Clause. - If for any reason any section or provision of this Act is
declared to be unconstitutional or invalid, the other sections or provisions thereof which are
not affected thereby shall continue to be in full force and effect.

Section 19. Applicability of Presidential Decree No. 985 as Amended by Presidential
Decree No. 1597. - All provisions of P.D. No. 985, as amended by P.D. No. 1597, R.A. No.
6758, Congress Joint Resolution No. 1, s. 1994 and Congress Joint Resolution No. 4, s. 2009
which are not inconsistent with, expressly modified, revoked or repealed in this Act shall
continue to be in full force and effect.

Section 20. Repealing Clause. - All laws, decrees, orders, rules or regulations or parts
thereof inconsistent with the provisions of this Act are hereby repealed, amended, or
modified accordingly.

All other laws inconsistent with this Act, such as, but not limited to, P.D. No. 1638, R.A.
Nos. 4670, 6686, 7160, 7305, 8439, 8441, 8551, 9173, and 9433 are hereby amended.

Section 21. Implementing Guidelines. - The DBM shall issue the guidelines necessary to
implement specific provisions of this Act.

Section 22. Effectivity.- This Act shall take effect January 1, 2016 after its official
publication in the Official Gazette or two (2) newspapers of general circulation.

‘Approved,

7