" 
SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.No. 
Introdul;ed by Senator Antonio "Sonny" F. Trillanes IV 
Explanatory Note 
Slltwtl' 
(~fft;r< \.If HIE' j.f'rrt>t.n~ 
'13 
SEP 16 P5 :24 
The stature of workers in the government bureaucracy has long been way below par the standard 
norms followed in the private sector in terms of compensation and classifications standards. 
In 2008, Joint Resolution No.4 of the Senate and the House of Representatives approved by the 
President of the Philippines, urged the latter to revise the then existing Compensation and 
Position Classification System for civilian personnel and base pay of military and uniformed 
personnel, to make it more responsive to the economic needs of govemment personnel, to 
provide adequate incentives to public servants and to improve the quality of public services. Five 
years after, it has to be revised further to update the same, to further encourage excellent 
performance and productivity, and to clearly distinguish differences in levels of responsibility 
and acconntability among govemment officials and employees. 
While there has been an almost two-fold increase in the compensation package of the thousands 
of civil servants all over the country, their income remains uncompetitive as compared to the 
private sector compensation packages. Thus, this measure seeks to reinvent government's 
bureaucratic structur() and salary schedule known in this bill as "Omnibus Compensation an.d 
Position Classification," This will take into consideration a rationalized system that equates pay 
with work responsibility and skill, among others, Such a system will create an environment of 
faimess and motivation which will inculcate professionalism in the public workplace. The long 
practiced motivational system in the private sector in granting promotions and salary increases 
based on performance evaluation will be institutionalized in this measure as a means of 
advancing efficiency and competency amongst the workforce. 
Most importantly, the reclassified compensation framework in this bill will further the thrust of 
our leadership to make tlle remuneration of government workers more competitive and at par 
with the prevailing rate in the private sector so that more talented and skilled employees can be 
attracted to join the government. If we are to build a world-class civil service structure, our 
system of administering the compensation of government workers should have parity with the 
world-class industry standards utilized in the private sector. 
In view of the foregoing, the approval of this bill is earnestly sought. 
~r={l-
~kTO\-I~ "SON~" F. TRILLANES IV 
Senator 
1 


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5 
6 
7 
8 
SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S. No. 
1689 
V1 
u,~/ ~.,I;< 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
AN ACT 
Sl'mlil" 
t~(fl;r "I II]. '~'''rrbr~ 
'13 
SEP 16 P5 :24 
ADOPTING AN OMNmUS COMPENSATION AND POSmON CLASSIFICATION OF 
CIVILIAN 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: 
4". 
it is 
ARTICLE I 
GENERAL PROVISIONS 
SECTION 1. Short Title. - This Act shall be known as the "Salary Standardization Law 
SEC. 2. Declaration of Policy.- Pursuant to Section S, Section IX-B of the Constitution, 
hereby declared the policy of the State to provide for the standardization of the 
9 
compensation of all government officials and employees taking into account the nature of the 
10 
responsibilities pertaining to, and the qualifications required for, their positions, thereby 
11 
strengthening the government's merit and reward system, 
12 
13 
SEC. 3. Governing Principles. - The following principles shall govern the modified 
14 
Compensation and Position Classification System and Base Pay Schedule of the government: 
15 
(a) All government personnel shall be paid just and equitable compensation in accordance with 
16 
the principle of equal pay for work of equal value. Differences in pay shall be based on verifiable 
17 
compensation and position classification factors, with due regard to the financial capability of the 
18 
government; 
1 


.' 
1 
(b) The compensation for aU civilian govermnent personnel; and, military and uniformed 
2 
persolmel shall generally be comparable with those in the private sector doing comparable work 
3 
in order to attract, retain and motivate a corps of competent civil servants; 
4 
(c) The compensation for all civilian govermnent personnel; and, military and uniformed 
5 
personnel shaH likewise be standardized and rationalized across all govermnent agencies to 
6 
create an enabling environment that will promote social justice, integrity, efficiency, 
7 
productivity, accountability and excellence in the civil service; 
8 
(d) A periodic review of the govermnent's Compensation and Position Classification System 
9 
shall be conducted every three (3) years, taking into account the changes in skills and 
10 
competency requirement in the bureaucracy, the relative demand for certain expertise, the 
11 
possible erosion in the purchasing power due to inflation, and other factors; and 
12 
(e) The Base Pay Schedule of military and uniformed personnel of the government shall 
13 
likewise take into account prevailing economic realities and create professionalism, exemplary 
14 
perfonnance, and commitment to service. 
15 
16 
SEC. 4. Definition of Terms. - For purposes of this Act, the foHowing tenns shaH have 
17 
the corresponding meanings: 
18 
(a) Base Pay - synonymous to salary; the fixed amount of money given to an employee as 
19 
payment for services rendered, which consists only of the gross salary, without other benefits or 
20 
emoluments. 
21 
(b) Benchmark Job - jobs that are service-wide, that is, common to all sectors, or representative 
22 
of specific sectors, and relatively comparable to jobs outside the govemment, the descriptions of 
23 
which will be used as a basis for the valuation of all other jobs in the civil service. 
24 
(c) Commission - the Civil Service Commission or such other successor agency as the 
25 
Constitution may provide. 
26 
(d) Compensable factors - factors used to provide a basis for judging job value in a job 
27 
evaluation plan. In this Act, these are: Skills and Knowledge, Nature of Work, and 
28 
Accountability. 
2 


,f 
0 ' 
1 
( e) Cut - a range of Job Grades which are grouped together for having similar or related nature of 
2 
jobs. 
3 
(f) Department - the Department of Budget and Management, or such other successor-agency as 
4 
the law or regulations may provide. 
5 
(g) Government-owned and Controlled Corporations and Government Financial Institutions -
6 
refer to aU corporations and financial institutions owned or controlled by the National 
7 
Government, whether such corporations and financial institutions perfonn govenunental or 
8 
proprietary functions. 
9 
(h) Incentive - a reward, financial or otherwise, that compensates an employee for high 
• 
10 
perfornlance and/or continued perfonna e. 
11 
(i) Job Classification Index, or Index - a able of occupational services, job titles, and Job Grades 
12 
for aU jobs in the civil and military se ices, which fonns part of, and to which the Omnibus 
13 
System, applies. 
14 
U) Job Grade - a category of jobs w . ch, although different with respect to kind or subject 
15 
matter of work, are sufficiently equiva ent as to Skills and Knowledge, Nature of Work, and 
16 
Answerability, to warrant the inclusion fsuch classes of jobs within one range of Base Pay, and 
17 
which distinguishes it from other Job G des in the Base Pay Schedule. 
18 
(k) National Government - refers to the xecutive, the Legislative, and the Judicial Branches, the 
19 
Constitutional Commissions, and othe offices created or mentioned in the Constitution, and 
20 
shall include, but shall not be limited t 
all departments, bureaus, offices, boards, commissions, 
21 
courts, tribunals, councils, authorities, dministrations, centers, institutes, state universities and 
22 
colleges, and government-owned and c trolled corporations and financial institutions. 
23 
(I) New Base Pay - the Base Pay of an 
ployee pursuant to the terms of this Act. 
24 
(m) Omnibus Job Classification and C mpensation Standardization System. or Omnibus System 
25 
- the system herein adopted for classif ngjobs and deternlining rates of Total Compensation for 
26 
jobs and employees. It consists, amon others, of the Job Classification Index; the Career Track 
27 
that employees may progress through; le Total Compensation Framework, including the Base 
28 
Pay Schedule, AUowances and Other ay, the rules for assigm11ent of jobs to grades, and of 
29 
incumbents to Steps; the conditions fo permitting Base Pay increases, as well as creation of and 
3 


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1 
increases in Allowances and Other Pay; and all other policies, rules, and regulations for the 
2 
implementation and administration thereof. 
3 
(n) Previous Base Pay - the Base Pay of an employee prior to the effectivity of this Act. 
4 
(0) Step - a level of Base Pay within a Job Grade. 
5 
(p) Total Compensation - the total amount of payment given to an employee for services 
6 
rendered, consisting of the following components: (i) Base Pay; (li) Allowances and Other Pay; 
7 
and (iii) Incentives. 
8 
(q) Uniformed Personnel -
government employees who directly perform duties and 
9 
responsibilities related to national security and actnal defense of the State, or public safety and 
10 
internal peace and order; whose selection, hiring, appointment, transfer, and promotion are 
11 
governed by a separate merit and promotion system; who are subject to a different set of 
12 
disciplinary procedure; and who are covered by a distinct retirement and/or separation benefits 
13 
system. 
14 
For purposes of this Act, the term refers to military personnel of the Armed Forces of the 
15 
Philippines and uniformed personnel of the Philippine National Police, pursuant to RA 6638, as 
16 
amended, and RA 6648, as amended. The term also applies to the uniformed personnel of all 
17 
other agencies which have adopted these laws, such as the Philippine Public Safety College, 
18 
Bureau of Jail Management and Penology, the Bureau of Fire Protection, the Philippine Coast 
19 
Guard, and the National Mapping and Resource Information Authority. 
20 
21 
ARTICLE II 
22 
COVERAGE 
23 
24 
SEC. 5. National Government, - This Act shall apply to all positions for civilian 
25 
government personnel in the Executive, Legislative and Judicial Branches, the Constitutional 
26 
Commissions, and State Universities and Colleges, whether regular, casual or contractual in 
27 
natnre, appointive or elective, on full-time or part-time basis, now existing or hereafter created. 
28 
The military and uniformed personnel shall be covered by the same compensation system. 
29 
Excluded from the coverage of this Act are individuals and groups engaged through job 
30 
orders or contract of services and non-organic personnel of the government. 
4 


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1 
SEC. 6. Local Government Units. -
The salaries, wages, allowances and other 
2 
emolument and benefits of officials and employees of local govemment units (LGUs) shall be 
3 
determined by their respective Sanggunians in accordance with the pertinent provisions of RA 
4 
7160: Provided, That LGUs may, iftheir finances warrant, grants salaries or wage adjustments to 
5 
their personnel. 
6 
An LGU which is not capable of implementing this Act may apply for total or partial 
7 
exemption with the Civil Service Commission (hereinafter referred to as Commission) and the 
8 
Department of Budget and Management (hereinafter referred to as Department). The grant of 
9 
eligibility shall be based on uniform standards that will be determined jointly by the Commission 
10 
and the Department. Provided, That partial implementation shall be fixed at a uniform 
11 
percentage applied uniformly to all jobs in the local government. 
12 
In case of partial implementation of salary or wage adjustments, the same shall be at 
13 
uniform proportion of the established rates for all positions in each LGU. 
14 
The salary or wage adjustments, if warranted by the finances of the LGUs, shall be 
15 
determined on the basis ofthe income class and financial capability of each LGU. 
16 
17 
ARTICLE III 
18 
OMNIBUS COMPENSATION AND POSITION CLASSIFICATION 
19 
20 
SEC. 7. Adopting an Omnibus Compensation and Position Classification. - The 
21 
Commission and the Department shall jointly design, develop, and establish the Omnibus 
22 
System, or amend the same as necessary, which shall replace and supplant the Salary 
23 
Standardization Law under Joint Resolution No.4, series of 2008, 
24 
25 
SEC. 8. Governing Principles o/the Omnibus System. - The Omnibus System shall be 
26 
created and implemented using the following principles: 
27 
(a) The Omnibus System shall promote intemal equity among government employees, 
28 
providing equal pay for work of equal value, and base differences in pay upon substantive 
29 
distinctions in verifiable Compensable Factors. Consequently, Base Pay shall be standardized 
30 
across all agencies. 
5 


1 
(b) The Omnibus System shall use perfonnance as basis for merit increases and 
2 
promotions, employing an integrated system for evaluating work perfonnance of both the agency 
3 
and its employees. 
4 
(c) The Omnibus System shall be easy to administer and responsive to current 
5 
challenges. Simplified terms shall be used to denominate all jobs in the civil, military and 
6 
uniformed service. A review of government compensation rates, taking into account various 
7 
factors, shall be undertaken by the Commission and the Department every three (3) years from 
8 
its implementation, pursuant to Section 29 of this Act. A report of said review shall be fumished 
9 
to the Committees on Finance and Civil Service in both Houses of Congress. 
10 
11 
A. The Job Classification Index 
12 
SEC. 9, Job Classification Index. - The Omnibus System shall provide for a Job 
13 
Classification Index to be developed jointly by the Commission and the Department, using the 
14 
following guidelines: 
15 
(a) Any modification of the jobs in the Index, including the creation or abolition of jobs, 
16 
or the consolidation or division of functions thereof, as a result of organizational, re-
17 
organizational, and/or substantial changes in work methods and duties, shall be made pursuant to 
18 
law: Provided, That new jobs shall be created only when new duties are found to exist. 
19 
(b) The Commission and the Department shall monitor and update the description for 
20 
each job in the Index, after consultation with the agencies to the extent necessary; and conduct 
21 
periodic surveys of agencies to ascertain the actual duties, responsibilities, and other 
22 
requirements of jobs therein. 
23 
( c) Whenever the circumstances warrant, the Commission and the Department may 
24 
jointly certify necessary changes in job description, Job Grade, Step assignment, and Total 
25 
Compensation. Such certifications shall be binding on administrative, certifying, payroll, 
26 
disbursing, accounting and auditing officers of the government. 
27 
28 
SEC. 10. Job Grades of Officials. - The Base Pay of the following officials shall be in 
29 
accordance with the Job Grades indicated hereunder: 
6 


1 
2 
Table 1. Official Job Grade 
Chief Justice of the Supreme Court 
Special Prosecutor 
Commission 
Commission 
on Human 
Rights 
32 
31 
31 
31 
31 
30 
31 
30 
31 
31 
30 
3 
SEC. 11. Job Grades for All Other Jobs. - For all other jobs in the government, the 
4 
Commission shall classify and re-classify the appropriate Job Grade, using the Compensable 
5 
factors for each job. The Commission shall refer to the Job Grade assiguments of the officials in 
6 
Section 10 hereof in making Job Grade assignments. 
7 
8 
SEC. 12. 
Compensable Factors. -
The Commission shall have the authority to 
9 
detelmine the appropriate methodology for the evaluation of Compensable Factors for every job 
10 
in govermnent, based on the following: 
11 
(a) Skills and knowledge, which include technical skills, or the minimum knowledge of 
12 
technical matters related to the job, which may be manifested through education, training, 
13 
practical experience, and eligibility. Skills and knowledge also include people skills, or that 
14 
required for people interaction, both internal and external to agency. 
15 
(b) Nature of the work, which refers to the complexity thereof, or the mental challenge relative 
16 
to the routine/non·routineness of a job; physical working conditions; and the volume of work, 
17 
including inherent work stress, and the frequency thereof. 
.7 


1 
(c) 
Accountability, which refers to the degree to which the job is directly answerable (i) for 
2 
people or property, and/or (ii) to taxpayers and/or, (iii) where applicable, peers, thru established 
3 
professional standards. It includes responsibility for people, which considers both number of jobs 
4 
and variety of functions supervised or managed; job impact, or the extent to which the job 
5 
directly affects agency operations and goals, in tenus of reach and the magnitude of impact, or 
6 
conversely, the impact of any error; and professional obligations, inclnding any external special 
7 
obligations or accountability to established professional standards. 
8 
9 
SEC. 13. Career Tracks. -
The Omnibus System shall also provide for broad 
10 
occupational groupings of jobs and a system of progression which detenl1ines the career path of 
11 
an employee, consisting of the following tracks: 
12 
(a) Administrative or "A Track" - This track covers administrative support service jobs and 
13 
jobs performing "housekeeping" functions. This includes financial services, general support 
14 
services, and in-house human resource services. 
15 
(b) Technical or "T Track" - This track covers non-administrative/non-housekeeping 
16 
support service jobs which involve the application of a professional or technical discipline, or 
17 
some craft or trade, primarily engaged in the implementation of specific programs or services 
18 
made under supervision. 
19 
(c) Specialized 01' "S Track" - This track covers non-administrative/non-housekeeping 
20 
jobs which are primarily highly technical and/or policy defining and detenl1ining. These jobs 
21 
require intensive and thorough knowledge of a specialized field. 
22 
(d) Executive or "E-Track" -
This track covers jobs primarily involved 111 the 
23 
management of people, resources, and policy. 
24 
25 
SEC. 14. Total Compensation. - Total Compensation of each employee shall consist of: 
26 
(a) Base Pay - This amount shall be given to each employee pursuant to the Base Pay Schedule 
27 
provided in Section 15 hereof. 
8 


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(b) Allowances and Other Pay - An agency may grant only such Allowances and Other Pay as 
2 
provided in Section 18 hereof, using only such standard rates authorized by the Department, and 
3 
without affecting the Base Pay. 
4 
(c) Incentives - An agency may grant only such Incentives as provided in Section 20 hereof, 
5 
using only such standard rates authorized by the Department, and without affecting the Base Pay. 
6 
7 
SEC. 15. Base Pay. - Under the Omnibus System, there shall be thirty-three (33) Job 
8 
Grades under the following Base Pay Schedule for Civilian Personnel: 
9 
Table 1. Base Pay Schedule (Civilian Personnel) 
7 
23,550 
24,024 
8 
24,768 
25,267 
9 
26,059 
26,189 
26,717 
28,473 
29,161 
31,259 
35,739 
37,722 
9 


31 
352,800 
359,856 
367,053 
374,394 
381,882 
389,520 
397,310 
405,256 
32 
432,800 
441,456 
450,285 
459,291 
468,477 
477,846 
487,403 
497,151 
33 
500,000 
1 
2 
Further, the military personnel of the Department of National Defense (DND) and the 
3 
uniformed personnel of the Department of the Interior and Local Govermnent (DILG), the 
4 
Philippine Coast Guard (PCG) and the National Mapping and Resource Information Authority 
5 
(NAMRIA) shall be covered by the same compensation system that will promote pay equity for 
6 
an effective, efficient, professional and motivated corps of military and uniformed personnel. 
7 
They shall be covered by only one Base Pay Schedule as follows: 
8 
Table 2. Base Pay Schedule (Military and Uniformed Personnel) 
Soldier 
7 
23,200 
Fire/Jail 
Police Officer 
Apprentice 
Private 
Seaman/Seaman 
10 
27,800 
Officer I 
I 
Third Class 
Private First 
Seaman 
11 
29,800 
Class 
Class 
Corporal 
Fire/Jail 
Police Officer 
Seaman First 
12 
31,800 
Officer II 
II 
Class 
Petty Offi cer III 
13 
33,800 
Staff 
Police 
Petty Officer II 
14 
35,800 
Officer III 
III 
Technical 
Petty Offi cer I 
15 
37,800 
Sergeant 
Master 
Senior Fire/ 
Senior Police 
Chief Petty 
16 
40,800 
Jail Officer I 
Officer I 
Officer 
Senior 
Senior 
Senior Police 
Senior Chief 
Master 
Fire/J ail 
17 
43,800 
Officer II 
Petty Officer 
Officer II 
Chief Master 
Senior 
Senior Police 
Master Chief 
Sergeant 
Fire/Jail 
Officer III 
Petty Offi cer 
18 
46,800 
Officer III 
Senior 
Senior Police 
Master 
Fire/Jail 
Officer IV 
Chief Petty 
19 
49,800 
Officer IV 
Officer 
1 
Probationary 
Second 
19 
49,800 
Lieutenant 
10 


Second 
Ensign 
21 
57,800 
Lieutenant 
First 
Inspector 
Inspector 
Lieutenant 
22 
62,800 
Lieutenant 
Junior Grade 
Captain 
Senior 
Senior 
Lieutenant 
23 
67,800 
Inspector 
Inspector 
Senior Grade 
Major 
Chief 
Chief 
Lieutenant 
24 
72,800 
Inspector 
Inspector 
COJllil1ander 
Lieutenant 
Superintendent Superintendent Commander 
25 
82,800 
Colonel 
Colonel 
Senior 
Senior 
Captain 
26 
102,800 
Superintendent Superintendent 
Brigadier 
Chief 
Chief 
Commodore 
27 
132,800 
General 
Superintendent Superintendent 
Major 
Director 
Director 
Rear Admiral 
28 
172,800 
General 
Vice Admiral 
29 
220,800 
Lieutenant 
Deputy 
General 
Director-
Admiral 
30 
282,800 
General 
General 
Director 
30 
282,800 
General 
1 
2 
SEC. 16. Administration of the Base Pay Schedule. - The Base Pay Schedule shall be 
3 
jointly administered by the Commission and the Depaliment using these guidelines: 
4 
(a) the Base Pay shall be determined as follows: 
5 
(1) Step 1 constitutes the Base Pay corresponding to the entry level for a job in a given 
6 
Job Grade, while Step 8 is the maximum amount of Base Pay in such Job Grade. Step 1 shall be 
7 
the hiring rate in a given Job Grade. 
8 
(2) An employee can progress through Steps I to 8 and become entitled to the 
9 
corresponding increase in Base Pay through a performance-based system approved by the 
10 
COJllil1ission. 
11 
(3) A progression to a higher Job Grade is a promotion which shall be granted only on the 
12 
basis of merit and fitness, as determined by performance and/or qualification standards set by the 
13 
CommiSSion, by which an employee shall become entitled to the corresponding increase in Base 
14 
Pay. 
15 
(b) The Base Pay Schedule shall be used for jobs that are paid on a monthly rate basis. All 
16 
amounts of Base Pay in the Base Pay Schedule are expressed as gross monthly rates in Philippine 
11 


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1 
Pesos, and shall represent full compensation for full-time employment, regardless of the location 
2 
where the work is performed. Base Pay for services rendered on a part-time basis shall be 
3 
adjusted proportionately. 
4 
(c) The daily wage rate shall be detennined by dividing the monthly Base Pay rate by twenty-two 
5 
(22) working days per month, 
6 
7 
SEC. 17. Special Allowances under Republic Act Nos. 9227, 9347, and 9279. - The 
8 
special allowances under Section 6 of RA 9227, Section 4 of Republic Act No. 9347, and 
9 
Section 4 of RA 9279, as well as other laws granting allowances to government employees, 
10 
military and uniformed personnel, except those provided in Section 17, 18 and 19 of this Act, 
11 
shall hereafter be converted as part of Base Pay, The Special Trust Fund created under Section 3 
12 
thereofRA 9279 shall be abolished and any balance thereof shall revert to the General Fund. 
13 
14 
C,2 Allowances and Other Pay 
15 
SEC. 18. Allowances and Other Pay. - This type shall be limited to: 
16 
(a) Standard Allowances and Other Pay - those amounts given to employees for work perfonned 
17 
or which attach to aU jobs, or specific jobs across all agencies, at prescribed standard rates. 
18 
(b) Specific-Purpose Allowances - those amounts which attach only to jobs under specific 
19 
conditions, or for special situations, which shall be given at prescribed standard rates. 
20 
21 
SEC. 19. Standard Allowances and Other Pay. -
22 
(a) Personnel Economic Relief Allowance -
This shall be given at Two thousand pesos 
23 
(P2,OOO.OO) per month, the combined total of the current Five hundred pesos (P500.00) 
24 
Personnel Economic Relief Allowance and the One thousand five hundred pesos (P 1 ,500.00) 
25 
Additional Compensation to supplement pay due to the rising cost of living; 
26 
(b) Uniform/ Clothing Allowance - This shall be given to sustain the provision of the required 
27 
unifonn to employees, at prescribed rates; and 
12 


1 
(c) Year-End Bonus and Cash Gifl ~ This is equivalent to one (I) month basic salary and Cash 
2 
Gift provided under Republic Act No. 6686, as amended by Republic Act. No. 8841. Henceforth, 
3 
the year-end bonus and other cash gifts shall be funded from the annual general appropriations. 
4 
(d) Overtime Pay - the consideration paid for work, whether in cash or compensatory time otf, 
5 
perfonned by an employee beyond his regular working hours in a day, and those performed on 
6 
rest days, holidays, and non-working days, which shal1 be given at prescribed standard rates. 
7 
(e) Night Differential- the remuneration premium given to an employee whose regular working 
8 
hours fall whony or partially within six o'clock in the evening to six o'clock in the morning of 
9 
the following day, which shall be given at prescribed standard rates. 
10 
11 
SEC. 20. Specific Purpose Allowances. - This type shall be limited to: 
12 
(a) Subsistence Allowance - the allowance given to employees whose services are made 
13 
available at all times in their places of work, even during mealtimes, which shall be at prescribed 
14 
standard rates. 
15 
(b) Hazard Pay - the amount given to employees who are exposed to hazardous situations as may 
16 
be determined by the Department, which shall be at prescribed standard rates. 
17 
(c) Overseas and Other Allowances - the amount given to employees assigned abroad at such 
18 
rates authorized under Republic Act No. 7157, as amended, and its implementing tules and 
19 
regulations. 
20 
(d) Representation and Transportation Allowances - the amount given to officials down to 
21 
division chiefs at monthly standard rates in order to defray transportation and representation 
22 
expenses while in the actual performance of the duties of the positions. Transportation al10wance 
23 
shall not be given to those assigned govermnent transportation. 
24 
(e) Per Diem - the compensation for attendance to meetings in view of membership in collegial 
25 
bodies created by law. 
26 
(t) Honoraria - the token payments in recognition of services rendered beyond the regular duties 
27 
and responsibilities of positions. 
28 
(g) SpeCial Counsel Allowance -
allowance for lawyer personnel in the legal staff of 
29 
departments, bureaus or offices of the national government deputized by the Office of the 
13 


1 
Solicitor General to appear in court as special counsel in collaboration with the Solicitor General 
2 
or Prosecutors concemed. 
3 
(h) Other allowances and benefits granted under specific conditions and situations, related to the 
4 
actual performances of work as may be determined by the DBM: Provided, That Section 8 of 
5 
RepUblic Act No. 9417 shall remain effective and enjoyed in the manner prescribed under said 
6 
law. 
7 
C.3 Incentives 
8 
SEC. 21. Incentives. - This type shall be limited to: 
9 
(a) Productivity Incentive, Collective Negotiation Agreement (CNA) Incentive, and Other 
10 
Incentives - that amount or incentive given to enhance employee productivity, subject to the 
11 
accomplishment of agency performance targets and the generation of savings. 
12 
(b) Longevity/Loyalty Incentive - that amount given on milestone years to recogmze the 
13 
employee's length of service with at least satisfactory performance, or to recognize the agency's 
14 
continuing and/or viable existence. Longevity shall be rewarded through the grant of periodic flat 
15 
incentives or bonuses, regardless of Job Grade, which shall be at prescribed standard rates. 
16 
(c) Anniversary Bonus - one-time incentive to be given to employees on the occasion of their 
17 
agencies' milestone anniversaries, to recognize the employees' participative efforts in and 
18 
contributions to the agencies' continuing and/or viable existence. 
19 
(d) Service Incentive - that amount given in the form of honoraria as token payments for services 
20 
rendered outside or in addition to the employee's regnlar functions, which shall be at prescribed 
21 
standard rates. 
22 
23 
SEC. 22. Pro(luctivity Benefit, CNA Benefit, and Other Benefits. - This type shall be 
24 
limited to: 
25 
(a) Productivity Benefit and/or CNA Benefit - the Productivity Benefit is a benefit given to 
26 
employees or groups of employees as a reward for demonstrated productivity. The CNA Benefit 
27 
is a benefit given as a result of funds generated from cost savings measures provided for in the 
28 
peltinent CNA. 
14 


1 
(b) Health Maintenance Benefit - benefits given to maintain employee health, in addition to the 
2 
benefits provided for under the National Health Insurance Program administered by the 
3 
Philippine Health Insurance Corporation. 
4 
5 
SEC. 23. Guidelines for Granting the Productivity andlor CNA Incentives and Benefits 
6 
- An agency may only grant the Incentives in Section 21 hereof subject to the following 
7 
parameters: 
8 
(a) The CNA Incentive shall be given pursuant to Public Sector Labor Management Council 
9 
(PSLMC) Resolution No.4, series of 2002, and PSLMC Resolution No.2, series of 2003, as 
10 
may from time to time be amended by the PSLMC. 
11 
(b) For employees of all government-owned and controlled corporations and financial 
12 
institutions, the Incentives in Section 22 hereof may only be granted upon a showing of the 
13 
agency's fiscal and financial viability, in addition to the requirements of paragraph (a) above. 
14 
The Department shall issue rules for the implementation of paragraph (c) hereof. 
15 
16 
17 
18 
ARTICLE IV 
CONVERSION TO THE OMNIBUS SYSTEM 
19 
SEC. 24. Treatment of Existing Allowances and Other Benefits of Incumbents. - The 
20 
Department shall classify and/or re-classify all existing allowances, incentives and other benefits 
21 
currently being received by all government employees, including incumbents, into Base Pay, 
22 
Allowances and Other Pay, pursuant to the Total Compensation Framework, and pursuant to the 
23 
true nature of such, notwithstanding its existing nomenclature. 
24 
Except for those in Section 18 and 21 hereof, all other allowances, incentives, and 
25 
benefits, being enjoyed by incumbents prior to the effectivity of this Act, which shall not be 
26 
continued to be given as a separate amount, including ad hoc, provisional, tentative, or 
27 
improvised benefits being received by government employees which are really intended to 
28 
provide some form of economic assistance, in acknowledgement of the inadequacy of 
29 
compensation in government, shall be deemed integrated, s:ubsumed, incorporated, and included 
30 
in the Base Pay Schedule as herein provided, without need of further adjustment of the amounts 
15 


1 
thereof, since the same already reflects prevailing economic conditions and the pertinent 
2 
Compensable Factors. 
3 
Since it is being adopted as a curative policy, this classification and reclassification shall 
4 
apply even as to allowances, incentives, and benefits being received by incumbents prior to the 
5 
effectivity of this Act. 
6 
7 
SEC. 25. Total Compensation; Non-Diminution in Pay. - Notwithstanding any 
8 
provision of law to the contrary, there shall be no diminution in pay in that the gross Total 
9 
Compensation of the employee under the Omnibus System should be greater than the gross total 
10 
pay being received by incumbents plior to the effectivity of this Act. In any case, there shall be 
11 
no vested right in any pay being received by incumbents, unless the incumbent has already 
12 
rendered services therefor. 
13 
SEC. 26. Base Pay. - The New Base Pay of all incumbents shall conform to the amount 
14 
in the Base Pay Schedule corresponding to Step 1 of the Job Grade jointly assigned to the 
15 
incumbent by the Department and the Commission: Provided, That-
16 
(a) Where the Previous Base Pay of an incumbent is greater than Step I of such Job 
17 
Grade, the incumbent shall be assigned to the Step with the next higher Base Pay; 
18 
(b) Where the Previous Base Pay of an incumbent is greater than the Base Pay for Step 8 
19 
of the prescribed Job Grade, the incumbent shall be assigned to Step 8 of that Job Grade, and 
20 
continue to receive the Previous Base Pay. In this case, the incumbent shall receive no upward 
21 
adjustment in Base Pay until such time as the incumbent is promoted to a higher Job Grade, the 
22 
Base Pay of which is greater than his Previous Base Pay. 
23 
24 
SEC. 27. Other Pay. - (a) The plinciple of non-diminution shall not apply with respect to 
25 
allowances, remuneration, and benefits being received by incumbents prior to the effectivity of 
26 
this Act (i) for which no appropliation has been provided in the National Budget; (ii) which are 
27 
ad hoc, provisional, tentative, or improvised benefits, in acknowledgment of the inadequacy of 
16 


1 
compensation in government, and are thus intended to provide some form of economic 
2 
assistance; and (iii) otherwise for which no appropriate approval has been granted. 
3 
(b) The principle of non-diminution shall not apply with respect to any type of incentive being 
4 
received by incumbents prior to the effectivity of this Act, the same being contingent on the 
5 
agency's or employee's performance. 
6 
7 
SEC. 28. Computation of Retirement Pay, Pension and Other Benefits. - For the 
8 
avoidance of doubt, any increase in the Base Pay of employees as a result of the enactment of 
9 
this Act into law shall inure to the benefit of incumbent employees only. In the case of retirees 
10 
whose separation pay, pension andlor other retirement benefits were previously indexed upon the 
11 
compensation of incumbent employees, only the Base Pay they actually received at the date of 
12 
their retirement shall be included in the computation of their retirement benefits. 
13 
Accordingly, upon the approval of this Act, only the salaries of the civilian and military 
14 
and uniformed personnel who are in active service will be adjusted in accordance of the Base 
15 
Pay Schedule in Section 15 hereof. 
16 
17 
SEC. 29. Specific Authority of Department. - The Department, in consultation with the 
18 
Commission, is hereby authorized to issue regulations for the transition into the Omnibus 
19 
System, including the continuance, discontinuance, decrease, or increase in rates of previous, 
20 
existing, and future components of Total Compensation, in any form granted. 
21 
22 
ARTICLE V 
23 
THE COMMISSION AND THE DEPARTMENT 
24 
25 
SEC. 30. Exclusive Functions, Powers, and Jurisdiction of the Commission. - The 
26 
Commission shall have exclusive original jurisdiction over any and all disputes arising from the 
27 
interpretation of this Act or its implementing rules and regulations, and the implementation of 
28 
the Omnibus System, including, without limitation, any dispute on the allowance, disallowance, 
29 
increase, decrease, classification, or reclassification of any component of total compensation, 
30 
alleged diminution of payor benefits, and assignment of Job Grades to jobs, and of incumbents 
17 


1 
to Steps. Cases that are instituted in other fora shall be dismissed for lack of jurisdiction, and 
2 
exhaustion of remedies before the Commission shall be a condition sine qua non to judicial 
3 
review on these matters. 
4 
Decisions of the Commission on these matters shall be brought only to the Supreme 
5 
Court via petition for certiorari pursuant to Section 7, Article IX of the Constitution, 
6 
notwithstanding the provisions of Republic Act No. 7902. Notwithstanding the provision of any 
7 
law to the contrary, the evaluation and approval of qualification standards for all jobs in 
8 
government, including, but not limited to, those in constitutionally fiscally autonomous groups; 
9 
government-owned and controlled corporations and government financial institutions, whether or 
10 
not exempt from the unified system under Presidential Decree No. 985, as amended, andlor the 
11 
Onmibus System; local government units; and uniformed and military personnel, shall be made 
12 
exclusively by the Commission. 
13 
14 
SEC. 31. Joint Functions and Powers of the Commission and the Department. - In 
15 
addition to the functions heretofore provided, the Commission and the Department shall jointly 
16 
approve the maintenance of existing, and the creation of future jobs in government. 
17 
Notwithstanding the provision of any law to the contrary, the job classification for all 
18 
jobs in the gover11Il1ent, including, but not limited to, those in constitutionally fiscally 
19 
autonomous groups; govemment-owned and controlled corporations and govenunent financial 
20 
institutions, whether or not exempt from the unified system under Presidential Decree No. 985, 
21 
as amended, andlor the Omnibus System; local government units; and unifonned and military 
22 
persounel, shall be subject to the joint evaluation and approval of the Commission and the 
23 
Department. 
24 
25 
SEC. 32. Periodic Review of the Omnibus System. - The Commission and the 
26 
Department shall jointly review the Omnibus System every three (3) years and recommend or 
27 
implement changes as may be necessary. However, in case of extraordinary circumstances, such 
28 
as major bureaucracy-wide reorganizations; or when government Base Pay rates are below the 
29 
market, in comparison with medium-sized private firms, by at least 40%; or when there is a 
18 


1 
significant, sustained movement in the cost of Jiving, then the Commission and Department may 
2 
review the Omnibus System earlier, with a view to addressing these issues with dispatch. 
3 
4 
ARTICLE VI 
5 
REPEAL AND AMENDMENT OF RELATED LAWS 
6 
7 
SEC. 33. Sandiganbayan Jurisdiction, Local Government Code, and Other Laws 
8 
involving Salary Grades. - All provisions of laws, decrees, executive orders, corporate charters, 
9 
rules, regulations, circulars, approvals, and other issuances, or parts thereof prescribing salary 
10 
grades of government employees, including, without limitation, the jurisdiction of the 
11 
Sandiganbayan under Presidential Decree No. 1606, as amended, as well as the salary grades of 
12 
local government officials under the Local Government Code, or Republic Act No. 7160, are 
13 
hereby repealed. 
14 
The Job Grade equivalent of such salary grades shall be jointly determined by the 
15 
Commission and the Department under the Omnibus System, using the results of the evaluation 
16 
of the Compensable Factors for each affected job. 
17 
18 
SEC. 34. General Repealing and Amendatory Clause. - All laws, decrees, executive 
19 
orders, corporate chaliers, rules, regulations, circulars, approvals, and other issuances, or parts 
20 
thereof inconsistent with the provisions of this Act are hereby repealed, amended, or modified 
21 
accordingly. 
22 
ARTICLE VII 
23 
APPROPRIATIONS 
24 
25 
SEC. 35. Appropriations. - (a) The amount necessary for the implementation of this Act 
26 
is hereby appropriated. The Base Pay Schedule in Section 15 hereof shall be implemented in five 
27 
(5) equal yearly tranches, the amount of which shall be included in the annual General 
28 
Appropriations Act, after taking into consideration the financial position of the National 
29 
Government. 
30 
(b) Government-owned or controlled corporations and financial institutions shall charge the 
31 
implementation of this Act against their respective funds. Those which do not have sufficient 
19 


" 
" 
1 
funds shall implement this Act in staggered phases and using such established rates as may be 
2 
jointly approved by the Commission and the Department. 
3 
(c) Local government units, except for those able to obtain an exemption from the Commission 
4 
and the Department, shaH charge the implementation thereof to their respective funds. 
5 
(d) It is understood that any staggered implementation of this Act shall be fixed at a percentage 
6 
uniformly and proportionately applied to all employees in such agency, such that no employee 
7 
shall receive a percentage adjustment higher than that of any other employee in the same agency. 
8 
9 
10 
11 
ARTICLE VIII 
PENAL PROVISIONS AND CIVIL LIABILITY 
12 
SEC. 36. Prohibition against Additional Compensation. - (a) The grant of Base Pay, 
13 
Allowances and Other Pay, and Incentives in addition to those provided herein, or increases 
14 
thereof, except as herein provided, is prohibited. 
15 
(b) In order to preserve the independence and integrity of the Commission on Audit (COA), its 
16 
employees are prohibited from receiving salaries, allowances or other emoluments from any 
17 
agency, except those amounts paid directly by the COA out of its appropriations made pursuant 
18 
to this Act. 
19 
(c) Notwithstanding any law to the contrary, all agencies, including, without limitation, 
20 
Government-owned and controlled corporations and government financial institutions, local 
21 
goverument units, the Office of the Solicitor General, the Office of the Government Corporate 
22 
Counsel, and their successor agencies, are prohibited from assessing or billing other agencies for 
23 
services rendered by their employees as part of their regular functions, for purposes of paying 
24 
additional compensation to said employees. 
25 
26 
SEC. 37. Penal Provisions. - Without prejudice and in addition to the provisions of 
27 
Republic Act No. 3019, otherwise known as the "Anti-Graft and Corrupt Practices Act" and 
28 
other penal laws, public officers who commit any of the following acts shall suffer the penalty of 
29 
imprisonment of not less than six (6) years and one (1) day, but not more than fifteen (15) years: 
20 


.' 
1 
(a) Granting, approving the grant, voting in favor of any decision granting or approving, or who 
2 
otherwise affirmatively participate in the grant or approval of-
3 
(i) Unauthorized increases in Base Pay: 
4 
(ii) Allowances and Other Pay, and Incentives other than those enumerated under 
5 
Sections 18 to 24; 
6 
(iii) Increases in the standard rates prescribed by the Department for Allowances and 
7 
Other Pay, and Incentives; and 
8 
(iv) Increases in retirement pay and other separation benefits in violation of Section 27; 
9 
(b) Granting, approving the grant, voting in favor of any decision granting or approving, or who 
10 
otherwise affirmatively participate in the grant or approval of Productivity Incentive, CNA 
11 
Incentive, and Other Benefits in violation of Section 31 and/or rules and regulations issued to 
12 
implement Section 23; 
13 
(c) Soliciting additional compensation, for self or in behalf of other employees, from other 
14 
agencies for services rendered in performance of regular functions; and 
15 
(d) Offering to give or actually giving additional compensation to employees of other agencies 
16 
who render services in performance of regular functions, in violation of paragraphs (a) and (b) of 
17 
Section 26. 
18 
19 
SEC. 38. Civil Liability. - A conviction under this Act or Republic Act No. 3019 shall 
20 
carry with it the civil liability to jointly and severally pay damages to the National Govermnent 
21 
equivalent to the amount illegally disbursed. 
22 
23 
ARTICLE IX 
24 
FINAL PROVISIONS 
25 
SEC. 39. Implementing Rules and Regulations. - The Commission and the Department 
26 
shall, within ninety (90) days after the approval of this Act, jointly allocate all jobs in the 
27 
government to their appropriate job titles and Salary Grades, assign each incumbent to the 
28 
appropriate Step, and prepare and issue the necessary policy, rules, regulations, and guidelines to 
29 
implement this Act. For this purpose, each agency covered by the Omnibus System shall submit 
30 
to the Commission and the Department within thirty (30) days fi'om the approval of this Act, all 
21 


" 
1 
documents, data, and information necessary in the classification of jobs in their appropriate 
2 
Salary Grades and Step assignment of incumbents. 
3 
4 
SEC. 40. Separability Clause. - If, for any reason, any section or provision of this Act is 
5 
declared unconstitutional or invalid, the other sections or provisions thereof which are not 
6 
affected thereby shall continue to be in full force and effect. 
7 
8 
SEC. 41. Effectivity. - This Act shall take effect fifteen (15) days after its publication in 
9 
at the Official Gazette or in at least two publications of national circulation. 
10 
11 
Approved, 
22