REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No. 2920

Tntroduced by MAGDALO Party List Representatives Gary C. Alejano
and Francisco Ashley L. Acedillo

Explanatory Note

‘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 government 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 accountability among government 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 structure and salary schedule known in this bill as “Omnibus Compensation and
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
fairness 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 work force.

Most importantly, the reclassified compensation framework in this bill will further the thrust of
our leadership to make the 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.

YC. SANO FRANCISCO ASHLEY L. ACEDILLO


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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No._ 2920

Introduced by MAGDALO Party List Representatives Gary C. Alejano
and Francisco Ashley L. Acedillo

AN ACT
ADOPTING AN OMNIBUS COMPENSATION AND POSITION 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:

ARTICLE
GENERAL PROVISIONS

SECTION 1. Short Title. — This Act shall be known as the “Salary Standardization Law

SEC. 2. Declaration of Policy.— Pursuant to Section 5, Section IX-B of the Constitution,
it is hereby declared the policy of the State to provide for the standardization of the
compensation of all government officials and employees taking into account the nature of the
responsibilities pertaining to, and the qualifications required for, their positions, thereby

strengthening the government's merit and reward system.

SEC. 3. Governing Principles, — The following principles shall govern the modified
Compensation and Position Classification System and Base Pay Schedule of the government:
(a) All government personnel shall be paid just and equitable compensation in accordance with
the principle of equal pay for work of equal value, Differences in pay shall be based on verifiable
compensation and position classification factors, with due regard to the financial capability of the

government;


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(6) The compensation for all civilian government personnel; and, military and uniformed
personnel shall generally be comparable with those in the private sector doing comparable work
in order to attract, retain and motivate a corps of competent civil servants;

(©) The compensation for all civilian government personnel; and, military and uniformed
personnel shall likewise 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;

(@) A periodic review of the government’s Compensation and Position Classification System
shall be conducted every three (3) years, taking into account the changes in skills and
competency requirement in the bureaucracy, the relative demand for certain expertise, the
possible erosion in the purchasing power due to inflation, and other factors; and

(e) The Base Pay Schedule of military and uniformed personnel of the government shall
likewise take into account prevailing economic realities and create professionalism, exemplary

performance, and commitment to service.

SEC. 4. Definition of Terms.~ For purposes of this Act, the following terms shall have
the corresponding meanings:
(a) Base Pay — synonymous to salary; the fixed amount of money given to an employee as
payment for services rendered, which consists only of the gross salary, without other benefits or
emoluments.
(b) Benchmark Job — jobs that are service-wide, that is, common to all sectors, or representative
of specific sectors, and relatively comparable to jobs outside the government, the descriptions of
which will be used as a basis for the valuation of all other jobs in the civil service.
(c) Commission- the Civil Service Commission or such other successor agency as the
Constitution may provide.
(a) Compensable factors- factors used to provide a basis for judging job value in a job evaluation
plan. In this Act, these are: Skills and Knowledge, Nature of Work, and Accountability.
(c) Cut —a range of Job Grades which are grouped together forhaving similar or related nature of

jobs.


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(©) Department ~ the Department of Budget and Management, orsuch other successor-agency as
the law or regulations mayprovide.

(@) Government-owned and Controlled Corporations and Government Financial Institutions
refer to all corporations and financial institutionsowned or controlled by the National
Government, whether suchcorporations and financial institutions perform governmental
orproprietary functions.

(h) Incentive — a reward, financial or otherwise, that compensates an employee for high
performance and/or continued performance.

(i) Job ClassificationIndex, or Index —a table of occupational services, job titles, and Job Grades
for all jobs in the civil andmilitary services, which forms part of, and to which the Omnibus
System, applies.

(j) Job Grade ~ a category of jobs which, although different with respect to kind or subject
matter of work, are sufficiently equivalent as to Skills and Knowledge, Nature of Work, and
Answerability, to warrant the inclusion of such classes of jobs within one range of Base Pay, and
which distinguishes it from other Job Grades in the Base Pay Schedule,

(&) National Government- refers to the Executive, the Legislative,and the Judicial Branches, the
Constitutional Commissions, and other offices created or mentioned in the Constitution, and
shall include, but shall not be limited to, all departments, bureaus, offices, boards, commissions,
courts, tribunals, councils, authorities, administrations, centers, institutes, state universities and
colleges, and government-owned and controlled corporations and financial institutions.

() New Base Pay the Base Pay of an employee pursuant to the terms of this Act.

(m) Omnibus Job Classification and Compensation Standardization System, or Omnibus System-
the system herein adopted for classifying jobs and determining rates of Total Compensation for
jobs and employees. It consists, among others, of the Job Classification Index; the Career Track
that employees may progress through; the Total Compensation Framework, including the Base
Pay Schedule, Allowances and Other Pay, the rules for assignment of jobs to grades, and of
incumbents to Steps; the conditions for permitting Base Pay increases, as well as creation of and
increases in Allowances and Other Pay; and all other policies, rules, and regulations for the

implementation and administration thereof.


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(n) Previous Base Pay ~ the Base Pay of an employee prior to the effectivity of this Act.
(0)Step ~a level of Base Pay within a Job Grade.

(p)Total Compensation ~ the total amount of payment given to an employee for services
rendered, consisting of the following components: (i) Base Pay; (ji) Allowances and Other Pay;
and (iii) Incentives.

(qUniformed Personnel government employees who directly perform duties and
responsibilities related to national security and actual defense of the State, or public safety and
internal peace and order; whose selection, hiring, appointment, transfer, and promotion are
governed by a separate merit and promotion system; who are subject to a different set of
disciplinary procedure; and who are covered by a distinct retirement and/or separation benefits
system,

For purposes of this Act, the term refers to military personnel of the Armed Forces of the
Philippines and uniformed personnel of the Philippine National Police, pursuant to RA6638, as
amended, and RA6648, as amended. The term also applies to the uniformed personnel of all
other agencies which have adopted these laws, such as the Philippine Public Safety College,
Bureau of Jail Management and Penology, the Bureau of Fire Protection, the Philippine Coast
Guard, and the National Mapping and Resource Information Authority.

ARTICLE I
COVERAGE

SEC. 5. National Government. — This Act shall apply to all positions for civilian
government personnel in the Executive, Legislative and Judicial Branches, the Constitutional
Commissions, and State Universities and Colleges, whether regular, casual or contractual in
nature, appointive or elective, on full-time or part-time basis, now existing or hereafter created.
The military and uniformed personnel shall be covered by the same compensation system.

Excluded from the coverage of this Act are individuals and groups engaged through job
orders or contract of services and non-organic personnel of the government.

SEC. 6. Local Government Units— The salaries, wages, allowances and other
emolument and benefits of officials and employees of local government units (LGUs) shall be
determined by their respective Sanggunians in accordance with the pertinent provisions of RA

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7160: Provided, That LGUs may, if their finances warrant, grant salaries or wage adjustments to
their personnel.

‘An LGU which is not capable of implementing this Act may apply for total or partial
exemption with the Civil Service Commission (hereinafter referred to as Commission) and the
Department of Budget and Management (hereinafter referred to as Department). The grant of
eligibility shall be based on uniform standards that will be determined jointly by the Commission
and the Department, Provided, That partial implementation shall be fixed at a uniform
percentage applied uniformly to all jobs in the local government.

In case of partial implementation of salary or wage adjustments, the same shall be at
uniform proportion of the established rates for all positions in each LGU.

The salary or wage adjustments, if warranted by the finances of the LGUs, shall be
determined on the basis of the income class and financial capability of each LGU.

ARTICLE Il
OMNIBUS COMPENSATION AND POSITION CLASSIFICATION

SEC. 7. Adopting an Omnibus Compensation and Position Classification, — The
Commission and the Department shall jointly design, develop, and establish the Omnibus
System, or amend the same as necessary, which shall replace and supplant the Salary

Standardization Law under Joint Resolution No. 4, series of 2008.

SEC. 8. Governing Principles of the Omnibus System. — The Omnibus System shall be
created and implemented using the following principles:

(a) The Omnibus System shall promote internal equity among government employees,
providing equal pay for work of equal value, and base differences in pay upon substantive
distinctions in verifiable Compensable Factors. Consequently, Base Pay shall be standardized
across all agencies.

(b) The Omnibus System shall use performance as basis for merit increases and
promotions, employing an integrated system for evaluating work performance of both the agency

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(©) The Omnibus System shall be easy to administer and responsive to current
challenges. Simplified terms shall be used to denominate all jobs in the civil, military and
uniformed service. A review of government compensation rates, taking into account various
factors, shall be undertaken by the Commission and the Department every three (3) years from
its implementation, pursuant to Section 290f this Act. A report of said review shall be furnished

to the Committees on Finance and Civil Service in both Houses of Congress.

A. The Job Classification Index

SEC. 9. Job Classification Index, — The Omnibus System shall provide for a Job
Classification Index to be developed jointly by the Commission and the Department, using the
following guidelines:

(a) Any modification of the jobs in the Index, including the creation or abolition of jobs,
or the consolidation or division of functions thereof, as a result of organizational, re-
organizational, and/or substantial changes in work methods and duties, shall be made pursuant to
law: Provided, That new jobs shall be created only when new duties are found to exist.

(b) The Commission and the Department shall monitor and update the description for
each job in the Index, after consultation with the agencies to the extent necessary; and conduct
periodic surveys of agencies to ascertain the actual duties, responsibilities, and other
requirements of jobs therein.

(©) Whenever the circumstances warrant, the Commission and the Department may
jointly certify necessary changes in jobdescription, Job Grade, Step assignment, and Total
Compensation. Such certifications shall be binding on administrative, certifying, payroll,

disbursing, accounting and auditing officers of the government,

SEC. 10. Job Grades of Officials. - The Base Pay of the following officials shall be in
accordance with the Job Grades indicated hereunder:
Table 1. Official Job Grade

President of the Philippines 33
Vice-President of the Philippines 32



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President of the Senate 32

Speaker of the House of Representatives 32

Chief Justice of the Supreme Court 32 1

Senator 31

Member of the House of Representatives 31 |

Associate Justices of the Supreme Court 31

Chairman of a Constitutional Commission — 31

‘Commissioner of a Constitutional Commission 30 |
| Chairman of the Commission on Human Rights iz 31

Members of the Commission on Human Rights 30 “|

‘Commissioner of the Bureau of Customs 31 |

‘Commissioner of the Bureau of Immigration 31 |

‘Ombudsman 31

‘Over-All Deputy Ombudsman 30 |

Deputy Ombudsman 30

Special Prosecutor 30

SEC. 11. Job Grades for All Other Jobs.-For all other jobs in the government, the
Commission shall classify and re-classify the appropriate Job Grade, using the Compensable
factors for each job. The Commission shall refer to the Job Grade assignments of the officials in

Section 10 hereof in making Job Grade assignments.

SEC. 12. Compensable Factors, ~ The Commission shall have the authority to determine
the appropriate methodology for the evaluation of Compensable Factors for every job in
government, based on the following:

(a) Skills and knowledge, which include technical skills, or the minimum knowledge of
technical matters related to the job, which may be manifested through education, training,
practical experience, and eligibility. Skills and knowledge also include people skills, or that
required for people interaction, both internal and external to agency.

(b) Nature of the work, which refers to the complexity thereof, or the mental challenge relative
to the routine/non-routineness of a job; physical working conditions; and the volume of work,
including inherent work stress, and the frequency thereof.

(©) Accountability, which refers to the degree to which the job is directly answerable (i) for
people or property, and/or (ii) to taxpayers and/or, (iii) where applicable, peers, thru established
professional standards, It includes responsibility for people, which considers both number of jobs

and variety of functions supervised or managed; job impact, or the extent to which the job


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directly affects agency operations and goals, in terms of reach and the magnitude of impact, or
conversely, the impact of any error; and professional obligations, including any external special

obligations or accountability to established professional standards.

SEC. 13. Career Tracks. — The Omnibus System shall also provide for broad
occupational groupings of jobs and a system of progression which determines the career path of
an employee, consisting of the following tracks:

(a) Administrative or “A Track” ~ This track covers administrative support service jobs and

jobs performing “housekeeping” functions. This includes financial services, general support
services, and in-house human resource services.

(b) Technical or “T Track” This track covers non-administrative/ non-housekeeping
support service jobs which involve the application of a professional or technical discipline, or
some craft or trade, primarily engaged in the implementation of specific programs or services
made under supervision.

(©) Specialized or “S Track” This track covers non-administrative/ non-housekeeping
jobs which are primarily highly technical and/or policy defining and determining. These jobs
require intensive and thorough knowledge of a specialized field.

(@) Executive or “E-Track"~ This track covers jobs primarily involved in the management of

people, resources, and policy.

SEC. 14, Total Compensation. ~ Total Compensation of each employee shall consist of:
(a) Base Pay ~ This amount shall be given to each employee pursuant to the Base Pay Schedule
provided in Section 15 hereof.
(b) Allowances and Other Pay ~ An agency may grant only such Allowances and Other Pay as
provided in Section 18 hereof, using only such standard rates authorized by the Department, and
without affecting the Base Pay.
(©) Incentives ~ An agency may grant only such Incentives as provided in Section 20 hereof,

using only such standard rates authorized by the Department, and without affecting the Base Pay.


4 SEC. 15. Base Pay. Under the Omnibus System, there shall be thirty-three (33) Job

2 Grades under the following Base Pay Schedule for Civilian Personnel:

3 Table 1.Base Pay Schedule (Civilian Personnel)
it, | Step1 | step2 | Step3 | Step4 | Step5 | Step6 | Step7 | Steps
1 16,000 | 16,080 | 16,160 | 16,241 | 16,322 | 16,404 | 16,486 | 16,568
2 17,200 | 17,286 | 17,372 | 17,459 | 17.547 | 17,634 | 17,722 | 17.811
3 {8.400 | 18,492 | 18,584 | 18,677 | 18,771 | 18,865 | 18,959 | 19,054
4 19,600 | 19,698 | 19,796 | 19,895 | 19,995 | 20,095 | 20,195 | 20,296 |
5 20,800 | 20,904 | 21,009 | 21,114 | 21,219 | 21,325 | 21,432 | 21,539
6 22,000 | 22,110 | 22,221 | 22,332 | 22,443 | 22,556 | 22,668 | 22,782 |
qi 73,200 | 23,316 | 23,433 | 23,550 | 23,667 | 23,786 | 23,905 | 24,024
8 34,400 | 24,522 | 24,645 | 24,768 | 24,892 | 25,016 | 25,141 | 25,267
9 | 28,800 | 25,929 | 26,059 | 26,189 | 26,320 | 26,451 | 26,584 | 26,717
10} 27,800 | 28,022 | 28,247 | 28,473 | 28,700 | 28,930 | 29,161 | 29,395 |
T1 | 29,800 | 30,038 | 30,279 | 30,521 | 30,765 | 31,011 | 31,259 | 31,509
12] 31,800 | 32,084 | 32,311 | 32,569 | 32,830 | 33,093 | 33,357 | 33,624
13 | 33,800 | 34,070 | 34,343 | 34,618 | 34,895 | 35,174 | 35,455 | 35,739
14 | 35,800 | 36,069 | 36,339 | 36,612 | 36,886 | 37,163 | 37,442 | 37,722
15 | 37,800 | 38,102 | 38,407 | 38,714 | 39,024 | 39,336 | 39,651 | 39,968
16 | 40,800 | 41,126 | 41,455 | 41,787 | 42,121 | 42,458 | 42,798 | 43,140
17 | 43,800 | 44,086 | 44,375 | 44,666 | 44,959 | 45,254 | 45,551 _| 45,850
18 | 46,800 | 47,174 | 47,552 | 47,932 | 48,316 | 48,702 | 49,092 | 49,485
19 | 49,800 | 50,198 | 50,600 | 51,005 | 51,413 | 51,824 | 52,239 | 52,657
20] 52,800 | 53.202 | 53,648 | 54,077 | 54,510 | 54,946 | 55,386 | 55,829 |
21 | 57,800 | 58,262 | 58,728 | 59,198 | 59,672 | 60,149 | 60,630 | 61,116
22 | 62,800 | 63,302 | 63,809 | 64,319 | 64,834 | 65,353 | 65,875 | 66,402
23 | 67,800 | 68,342 | 68,889 | 69,440 | 69,996 | 70,556 | 71,120 | 71,689
24 | 72,800 | 73,382 | 73,969 | 74,561 | 75,158 | 75,759 | 76,365 | 76,976
25 | 82,800 | 84,042 | 85,303 | 86.582 | 87,881 | 89,199 | 90,537 | 91,895
26 | 102,800 | 104,342 | 105,907 | 107,496 | 109,108 | 110,745 | 112,406 | 114,092
27 132,800 | 134,792 | 136,814 | 138,866 | 140,949 | 143,063 | 145,209 | 147,387
28 | 172,800 | 175,392 | 178,023 | 180,693 | 183,404 | 186,155 | 188,947 | 191,781
29 | 220,800 | 224,112 | 227,474 | 230,886 | 234,349 | 237,864 | 241,432 | 245,054
30 | 282,800 | 287,042 | 291,348 | 295,718 | 300,154 | 304,656 | 309,226 | 313,864
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 | 47,846 | 487.403 | 497,151
33__ | 500,000
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5 Further, the military personnel of the Department of National Defense (DND) and the

6 uniformed personnel of the Department of the Interior and Local Government (DILG), the

7 Philippine Coast Guard (PCG) and the National Mapping and Resource Information Authority


(NAMRIA) shall be covered by the same compensation system that will promote pay equity for
an effective, efficient, professional and motivated corps of military and uniformed personnel.
They shall be covered by only one Base Pay Schedule as follows:

Table 2. Base Pay Schedule (Military and Uniformed Personnel)

DILG :
- PCG and | Equivalent | Monthly
DND BJMPand | PNPand
aes en NAMRIA | Job Grade | Base Pay
Candidate
Soldier 7 ae g0h
a ; Apprentice
Private ews Jall Police Officer | seaman/Seaman | 10 27,800
Officer I I es
Third Class
Private First Seaman Second
Class Class mu Sey |
Fire/Jail Police Officer | Seaman First
Corporal | officer I Class 1 21a)
Sergeant Petty Officer MT | __13 33,800
Staff Fire/Jail Police Officer 5
fe iisneen lin Petty Officer II 4 35,800
eceiieal Petty Officer I 15 37,800
Sergeant
Master Senior Fire? | Senior Police | Chief Petty
[Sergeant | Jail Officer I_| Officer Officer ue eT |
Senior Senior +r auch
Master Fire/Jail pains Shean 7 43,800
Sergeant Officer II ear
: Senior ry or
cmc rca [merim [amet [ae [scm
fas Officer IIl tases
First Chief _ | Senior Senior Potice | FS Master
Master Fire/Jail ie - a Chief Petty 19 49,800
Sergeant Officer IV ue Officer
Cadet 19 49,800
Probationary.
Second 19 49,800
Lieutenant
Second j
am Ensign 21 57,800
First Tieutenant
fie wenant: Inspector Inspector inion Orde) 22 62,800
oar Senior Senior Lieutenant
raun Inspector Inspector Senior Grade 2 SDD
: Chief Chief Tieutenant
sion Inspector Inspector Commander eh BAY
Tieutenant | Superintendent | Superintendent | Commander Ey 82,800

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Colonel
Senior Senior j
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cola Sopeiniendout | Suennientent| PO a Bue
Brigadier | Chief Chief
General Superintendent | Superintendent nical a Aaa
Maer Director Director Rear Admiral 28 172,800
General
Vice Admiral 2 220,800
; Deputy
one Director- Admiral 30 282,800
General
General
General ee 30 282,800
General

SEC. 16. Administration of the Base Pay Schedule The Base Pay Schedule shall be
jointly administered by the Commission and the Department using these guidelines:
(a) the Base Pay shall be determined as follows:

(1) Step 1 constitutes the Base Pay corresponding to the entry level for a job in a given
Job Grade, while Step 8 is the maximum amount of Base Pay in such Job Grade. Step | shall be
the hiring rate in a given Job Grade.

(2) An employee can progress through Steps 1 to 8 and become entitled to the
corresponding increase in Base Pay through a performance-based system approved by the
Commission.

(3) A progression to a higher Job Grade is a promotion which shall be granted only on the
basis of merit and fitness, as determined by performance and/or qualification standards set by the
Commission, by which an employee shall becomeentitled to the corresponding increase in Base
Pay.

(b) The Base Pay Schedule shall be used for jobs that are paid on a monthly rate basis. All
amounts of Base Pay in the Base Pay Schedule are expressed as gross monthly rates in Philippine
Pesos, and shall represent full compensation for full-time employment, regardless of the location
where the work is performed. Base Pay for services rendered on a part-time basis shall be
adjusted proportionately.

(c) The daily wage rate shall be determined by dividing the monthly Base Pay rate by twenty-two
(22) working days per month.

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SEC. 17. Special Allowances under Republic Act Nos. 9227, 9347, and 9279.- The
special allowances under Section 6 of RA 9227, Section 4 of Republic Act No. 9347, and
Section 4 of RA 9279, as well as other laws granting allowances to government employees,
military and uniformed personnel, except those provided in Section 17, 18 and 19of this Act,
shall hereafter be converted as part of Base Pay. The Special Trust Fund created under Section 3

thereof RA 9279 shall be abolished and any balance thereof shall revert to the General Fund.

C.2 Allowances and Other Pay
SEC. 18. Allowances and Other Pay.— This type shall be limited to:
(a) Standard Allowances and Other Pay -those amounts given to employees for work performed
or which attach to all jobs, or specific jobs across all agencies, at prescribed standard rates.
(b) Specific-Purpose Allowances ~ those amounts which attach only to jobs under specific

conditions, or for special situations, which shall be given at prescribed standard rates.

SEC. 19. Standard Allowances and Other Pay. —
(a) Personnel Economic Relief Allowance — This shall be given at Two thousand pesos
(P2,000.00) per month, the combined total of the current Five hundred pesos (P500.00)
Personnel Economic Relief Allowance and the One thousand five hundred pesos (P1,500.00)
Additional Compensation to supplement pay due to the rising cost of living;
(b) Uniform/ Clothing Allowance ~ This shall be given to sustain the provision of the required
uniform to employees, at prescribed rates; and
(©) Year-End Bonus and Cash Gift — This is equivalent to one (1) month basic salary and Cash
Gift provided under Republic Act No. 6686, as amended by Republic Act. No. 8841. Henceforth,
the year-end bonus and other cash gifts shall be funded from the annual general appropriations.
(d) Overtime Pay - the consideration paid for work, whether in cash or compensatory time off,
performed by an employee beyond his regular working hours in a day, and those performed on

rest days, holidays, and non-working days, which shall be given at prescribed standard rates.

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(e) Night Differential - the remuneration premium 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, which shall be given at prescribed standard rates.

SEC. 20. Specific Purpose Allowances.~ This type shall be limited to:
(a) Subsistence Allowance ~ the allowance given to employees whose services are made
available at all times in their places of work, even during mealtimes, which shall be at prescribed
standard rates.
(b) Hazard Pay - the amount given to employees who are exposed to hazardous situations as may
be determined by the Department,which shall be at prescribed standard rates.
(©) Overseas and Other Allowances- the amount given to employees assigned abroad at such
rates authorized under Republic Act No. 7157, as amended, and its implementing rules and
regulations.
(A) Representation and Transportation Allowances -the amount given to officials down to
division chiefs at monthly standard rates in order to defray transportation and representation
expenses while in the actual performance of the duties of the positions. Transportation allowance
shall not be given to those assigned government transportation.
(©)Per Diem — the compensation for attendance to meetings in view of membership in collegial
bodies created by law.
(f) Honoraria - the token payments in recognition of services rendered beyond the regular duties
and responsibilities of positions.
(® Special Counsel Allowance — 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.
(h) Other allowances and benefits granted under specific conditions and situations, related to the
actual performances of work as may be determined by the DBM: Provided, That Section 8 of
Republic Act No. 9417 shall remain effective and enjoyed in the manner prescribed under said

law.

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C.3 Incentives
SEC. 21. Incentives. — This type shall be limited to:

(a) Productivity Incentive, Collective Negotiation Agreement (CNA) Incentive, and Other
Incentives ~ that amount or incentive given to enhance employee productivity, subject to the
accomplishment of agency performance targets and the generation of savings.

(b) Longevity/Loyalty Incentive -that amount given on milestone years to recognize the
employee’s length of service with at least satisfactory performance, or to recognize the agency’s
continuing and/or viable existence. Longevity shall be rewarded through the grant of periodic flat
incentives or bonuses, regardless of Job Grade, which shall be at prescribed standard rates.

(©) Anniversary Bonus ~ one-time incentive to be given to employees on the occasion of their
agencies’ milestone anniversaries, to recognize the employees’ participative efforts in and
contributions to the agencies’ continuing and/or viable existence.

(d) Service Incentivethat amount given in the form of honoraria as token payments for services
rendered outside or in addition to the employee’s regular functions, which shall be at prescribed

standard rates.

SEC. 22. Productivity Benefit, CNA Benefit, and Other Benefits. ~ This type shall be
limited to:
(a) Productivity Benefit and/or CNA Benefit- the Productivity Benefit is a benefit given to
employees or groups of employees as a reward for demonstrated productivity. The CNA Benefit
is a benefit given as a result of funds generated from cost savings measures provided for in the
pertinent CNA,
(b) Health Maintenance Benefit ~ benefits given to maintain employee health, in addition to the
benefits provided for under the National Health Insurance Program administered by the

Philippine Health Insurance Corporation.

SEC. 23. Guidelines for Granting the Productivity and/or CNA Incentives and
Benofits~ An agency may only grant the Incentives in Section 21 hereof subject to the following

parameters:

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(@) The CNA Incentive shall be given pursuant to Public Sector Labor Management Council
(PSLMC) Resolution No. 4, series of 2002, and PSLMC Resolution No. 2, series of 2003, as
may from time to time be amended by the PSLMC.

(b) For employees of all government-owned and controlled corporations and financial
institutions, the Incentives in Section 22 hereof may only be granted upon a showing of the
agency’s fiscal and financial viability, in addition to the requirements of paragraph (a) above.

‘The Department shall issue rules for the implementation of paragraph (c) hereof.

ARTICLE IV
CONVERSION TO THE OMNIBUS SYSTEM

SEC. 24. Treatment of Existing Allowances and Other Benefits of Incumbents.- The
Department shall classify and/or re-classify all existing allowances, incentives and other benefits
currently being received by all goverment employees, including incumbents, into Base Pay,
Allowances and Other Pay, pursuant to the Total CompensationFramework, and pursuant to the
true nature of such, notwithstanding itsexisting nomenclature.

Except for those in Section 18 and 21 hereof, all other allowances, incentives, and
benefits, being enjoyed by incumbents prior to the effectivity of this Act, which shall not be
continued to be given as a separate amount, including ad hoc, provisional, tentative, or
improvised benefits being received by government employees which are really intended to
provide some form of economic assistance, in acknowledgement of the inadequacy of
compensation in government, shall be deemed integrated, subsumed, incorporated, and included
in the Base Pay Schedule as herein provided, without need of further adjustment of the amounts
thereof, since the same already reflects prevailing economic conditions and the pertinent
Compensable Factors.

Since it is being adopted as a curative policy, this classification and reclassification shall
apply even as to allowances, incentives, and benefits being received by incumbents prior to the

effectivity of this Act.

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SEC. 25. Total Compensation; Non-Diminution in Pay. Notwithstanding any provision
of law to the contrary, there shall be no diminution in pay in that the gross Total Compensation
of the employee under the Omnibus System should be greater than the gross total pay being
received by incumbents prior to the effectivity of this Act. In any case, there shall be no vested
right in any pay being received by incumbents, unless the incumbent has already rendered

services therefor.

SEC. 26. Base Pay. The New Base Pay of all incumbents shall conformto the amount in
the Base Pay Schedule corresponding to Step 1 of the Job Grade jointly assigned to the
incumbent by the Department and the Commission: Provided, That ~

(a) Where the Previous Base Pay of an incumbent is greater than Step 1 of such Job
Grade, the incumbent shall be assigned to the Step with the next higher Base Pay;

(b) Where the Previous Base Pay of an incumbent is greater than the Base Pay for Step 8
of the prescribed Job Grade, the incumbent shall be assigned to Step 8 of that Job Grade, and
continue to receive the Previous Base Pay. In this case, the incumbent shall receive no upward
adjustment in Base Pay until such time as the incumbent is promoted to a higher Job Grade, the

Base Pay of which is greater than his Previous Base Pay.

SEC. 27. Other Pay. (a) The principle of non-diminution shall not apply with respect to
allowances, remuneration, and benefits being received by incumbents prior to the effectivity of
this Act (i) for which no appropriation has been provided in the National Budget; (ii) which are
ad hoc, provisional, tentative, or improvised benefits, in acknowledgment of the inadequacy of
compensation in government, and are thus intended to provide some form of economic
assistance; and (iii) otherwise for which no appropriate approval has been granted.

(b) The principle of non-diminution shall not apply with respect to any type of incentive being
received by incumbents prior to the effectivity of this Act, the same being contingent on the

agency’s or employee’s performance.

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SEC. 28. Computation of Retirement Pay, Pension and Other Benefits For the
avoidance of doubt, any increase in the Base Pay of employees as a result of the enactment of
this Act into law shall inure to the benefit of incumbent employees only. In the case of retirees
whose separation pay, pension and/or other retirement benefits were previously indexed upon the
compensation of incumbent employees, only the Base Pay they actually received at the date of
their retirement shall be included in the computation of their retirement benefits.

Accordingly, upon the approval of this Act, only the salaries of the civilian and military
and uniformed personnel who are in active service will be adjusted in accordance of the Base

Pay Schedule in Section 15 hereof,

SEC. 29. Specific Authority of Department. The Department, inconsultation with the

Commi:

ion, is hereby authorized to issue regulations for the transition into the Omnibus
System, including the continuance, discontinuance, dectease, or increase in rates of previous,
existing, and future components of Total Compensation, in any form granted.

ARTICLE V
THE COMMISSION AND THE DEPARTM!

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SEC.30, Exclusive Functions, Powers, and Jurisdiction of the Commission. ~ The

Commission shall have exclusive original jurisdiction over any and all disputes arising from the

interpretation of this Act or its implementing rules and regulations, and the implementation of
the Omnibus System, including, without limitation, any dispute on the allowance, disallowance,
increase, decrease, classification, or reclassification of any component of total compensation,
alleged diminution of pay or benefits, and assignment of Job Grades to jobs, and of incumbents
to Steps. Cases that are instituted in other fora shall be dismissed for lack of jurisdiction, and
exhaustion of remedies before the Commission shall be a condition sine qua non to judicial
review on these matters.

Decisions of the Commission on these matters shall be brought only to the Supreme
Court via petition for certiorari pursuant to Section 7, Article IX of the Constitution,

notwithstanding the provisions of Republi¢Act No, 7902. Notwithstanding the provision of any

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law to the contrary, the evaluation and approval of qualification standards for all jobs in
government, including, but not limited to, those in constitutionally fiscally autonomous groups;
government-owned and controlled corporations and government financial institutions, whether or
not exempt from the unified system under Presidential Decree No. 985, as amended, and/or the
Omnibus System; local government units; and uniformed and military personnel, shall be made

exclusively by the Commission.

SEC. 31. Joint Functions and Powers of the Commission and the Department. \n
addition to the functions heretofore provided, the Commission and the Department shall jointly
approve the maintenance of existing, and the creation of future jobs in government.

Notwithstanding the provision of any law to the contrary, the job classification for all
jobs in the government, including, but not limited to, those in constitutionally fiscally
autonomous groups; government-owned and controlled corporations and government financial
institutions, whether or not exempt from the unified system under Presidential Decree No. 985,
as amended, and/or the Omnibus System; local government units; and uniformed and military
personnel, shall be subject to the joint evaluation and approval of the Commission and the

Department.

SEC. 32. Periodic Review of the Omnibus System The Commission and the
Department shall jointly review the Omnibus System every three (3) years and recommend or
implement changes as may be necessary, However, in case of extraordinary circumstances, such
‘as major bureaucracy-wide reorganizations; or when government Base Pay rates are below the
market, in comparison with medium-sized private firms, byat least 40%; or when there is a
significant, sustained movement in the cost of living, then the Commission and Department may

review the Omnibus System earlier, with a view to addressing these issues with dispatch.

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ARTICLE VI
REPEAL AND AMENDMENT OF RELATED LAWS

SEC. 33. Sandiganbayan Jurisdiction, Local Government Code, and Other Laws
involving Salary Grades. All provisions of laws, decrees, executive orders, corporate charters,
rules, regulations, circulars, approvals, and other issuances, or parts thereof prescribing salary
grades of government employees, including, without limitation, the jurisdiction of the
Sandiganbayan under Presidential Decree No. 1606, as amended, as well as the salary grades of
local government officials under the LocalGovernment Code, or Republic Act No. 7160, are
hereby repealed.

The Job Grade equivalent of such salary grades shall be jointly determined by the
Commission and the Department under the Omnibus System, using the results of the evaluation

of the Compensable Factors for each affected job.

SEC. 34, General Repealing and Amendatory Clause. ~ All laws, decrees, executive
orders, corporate charters, rules, regulations, circulars, approvals, and other issuances, or parts
thereof inconsistent with the provisions of this Act are hereby repealed, amended, or modified
accordingly.

ARTICLE VIL
APPROPRIATIONS

SEC. 35. Appropriations.— (a) The amount necessary for the implementation of this Act
is hereby appropriated. The Base Pay Schedule in Section 15 hereof shall be implemented in five
(5) equal yearly tranches, the amount of which shall be included in the annual General
‘Appropriations Act, after taking into consideration the financial position of the National
Government.

(b) Government-owned or controlled corporations and financial institutions shall charge the
implementation of this Act against their respective funds. Those which do not have sufficient
funds shall implement this Act in staggered phases and using such established rates as may be

jointly approved by the Commission and the Department.

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(c) Local government units, except for those able to obtain an exemption from the Commission
and the Department, shall charge the implementation thereof to their respective funds.

(d) It is understood that any staggered implementation of this Act shall be fixed at a percentage
uniformly and proportionately applied to all employees in such agency, such that no employee

shall receive apercentage adjustment higher than that of any other employee in thesame agency.

ARTICLE VIII
PENAL PROVISIONS AND CIVIL LIABILITY

SEC. 36. Prohibition against Additional Compensation. (a) The grant of Base Pay,
Allowances and Other Pay, and Incentives in addition to those provided herein, or increases
thereof, except as herein provided, is prohibited.
(b) In order to preserve the independence and integrity of the Commissionon Audit (COA), its
employees are prohibited from receiving salaries, allowances or other emoluments from any
agency, except those amounts paid directly by the COA out of its appropriations made pursuant
to this Act.
(c) Notwithstanding any law to the contrary, all agencies, including, without limitation,
Government-owned and controlled corporations and government financial institutions, local
government units, the Office of the Solicitor General, the Office of the Government Corporate
Counsel, and their successor agencies, are prohibited from assessing or billing other agencies for
services rendered by their employees as part of their regular functions, for purposes of paying

additional compensation to said employees.

SEC. 37. Penal Provisions, Without prejudice and in addition to the provisions of
Republic Act No, 3019, otherwise known as the "Anti-Graftand Corrupt Practices Act" and other
penal laws, public officers who commit any of the following acts shall suffer the penalty of
imprisonment of not less than six (6) years and one (1) day, but not more than fifteen (15) years:
(a) Granting, approving the grant, voting in favor of any decision granting or approving, or who
otherwise affirmatively participate inthe grant or approval of —

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( Unauthorized increases in Base Pay:

(ii)Allowances and Other Pay, and Incentives other than those enumerated under Sections
18 to 24;

(iii) Increases in the standard rates prescribed by the Department for Allowances and
Other Pay, and Incentives; and

(iv) Increases in retirement pay and otherseparation benefits in violation of Section 27;
(b) Granting, approving the grant, voting in favor of any decision granting or approving, or who
otherwise affirmatively participate in the grant or approval of Productivity Incentive, CNA
Incentive, and Other Benefits in violation of Section 31 and/or rules and regulations issued to
implement Section 23;
(c) Soliciting additional compensation, for self or in behalf of other employees, from other
agencies for services rendered in performance of regular functions; and
(d) Offering to give or actually giving additional compensation to employees of other agencies
who render services in performance of regular functions, in violation of paragraphs (a) and (b) of

Section 26.

SEC. 38. Civil Liability. — A conviction under this Act or Republic Act No.3019 shall
carry with it the civil liability to jointly and severally pay damages to the National Government
equivalent to the amount illegally disbursed.

ARTICLE IX
FINAL PROVISIONS

SEC. 39.Jmplementing Rules and Regulations.- The Commission and the Department
shall, within ninety (90) days after the approval of this Act, jointly allocate all jobs in the
government to their appropriate job titles and Salary Grades, assign each incumbent to the
appropriate Step, and prepare and issue the necessary policy, rules, regulations, and guidelines to
implement this Act. For this purpose, each agency covered by the Omnibus System shall submit
to the Commission and the Department within thirty (30) days from the approval of this Act, all
documents, data, and information necessary in the classification of jobs in their appropriate
Salary Grades and Step assignment of incumbents.

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SEC. 40. Separability Clause. —If, for any reason, any section or provision of this Act is
declared unconstitutional or invalid, the other sections or provisions thereof which are not

affected thereby shall continue to be in full force and effect.

SEC. 41.Effectivity. This Act shall take effect fifteen (15) days after its publication in

the Official Gazette or in at least two publications of national circulation.

Approved,