i
HOUSE F REPRESENTATIVES,

RECEIVED
30 JUN 204
Republic of the Philippines Dare: __— a
HOUSE OF REPRESENTATIVES twve_Nil
Quezon City BY
| .
SEVENTEENTH CONGRESS | aiuie aN INDEX SERVICE

. BIL
First Regular Session ms

di

HOUSE BILL NO:

Introduced by REP. FELICIANO BELMONTE, JR.

EXPLANATORY NOTE

In 2009, Congress enacted Joint Resolution No 4 revising the Compensation and

Classification system for civilian personnel and base pay of military and uniformed

personnel. Joint Resolution No, 4 mandated the review of the compensation and
position classification system after three years from the last year of the adjustment, to
determine the competitiveness of government pay in relation to the private sector and
the compensation strategy to bring government pay closer to market rates.

‘The proposed Salary Standardization Law (SSL) of 2016 will result in a weighted
average increase of forty five percent (45%) in the compensation of all salary grades,
and raise compensation of government personnel to at least seventy percent (70%) of
the private sector rate. This will be effected through a combination of a

alary increase,

a 1418 month pay and an enhanced performance-based bonus to be implemented over a
four-year period, from January 1, 2016 to January 1, 2019.

The bill seeks to raise the pay of the government personnel to be competitive
with the market rates
enhan

,, strengthen the link between pay and performance through an
based bonus system, temper the cost of benefit while
maximizing the benefits of employees, and allow higher take-home pay particularly for
des.

performa

government personnel belonging to the lower salary gr

Government personnel are given substantial duties and responsibilities that
significantly impact the nation. Legislative action is urgently needed to allow the



Government of the Republic of the Philippines to attract and retain the services of
capable personnel in order to best serve the needs of the Filipino people.

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

Bs Ga

FELICIANO BELMONTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRE
First Regular Session

HOUSE BILL NO:

Introduced by Representative Feliciano Belmonte, Jr,

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

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

SECTION 1. Title, ~'This Act shall be known as the “Salary Standardization Law of 2016” or the “SSL
2016"

SEC. 2, Statement of Policy. = Itis hereby decta
personnel a just and equitable compensati
equal value, In pursuing this policy, the St

id the policy of the State to provide all govern
accordance with the principle of equal pay for work of
fate shall ensure that:

4) Differences in pay shall be based upon substantive diff
accountabilities and qualification require.

ences
ts of the positions

n duties, responsi

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

service,

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

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

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

©) ‘The CPCS shall be periodically reviewed every three (8) years, taking into account the
competitiveness of government pay relative to the private sector, changes in skills and
competency requirement in the bureaucracy, demand for certain expertise, possible erosion in
the purchasing power due to inflation, and other factors;

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

©) The compensation scheme shall ensure higher net take-home pay for government personnel;
and


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

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

SEC. 5. Exclusions, ~ The following shall be excluded from the coverage of the CPCS:
4) Military and uniformed personnel which shall be covered by the provisions of Section 11
hereof;

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

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

IC. 6, Administration of the CP ‘As the Adn
Management (DBM) shall undertake the following,

istrator of the CPCS, the Department of Budget and

(a) Modify and update the Index of Occupational £
Salary Grades (108) as deemed necessary;

ices, Occupational Gi

oups, Classes and

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

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

(2) ‘The nature and complexity of the work to be performed;

(3) ‘The kind of supervision received and/or exercised;
(4) Decision-making responsibility;

(5) Accountability for funds, properties, equipment, and records;
(6) Hardship, hazard and personal risk involved in the job; and

(7) The demand for certain expertise.

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

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

(c) Resolve issues on the implementation of the CPCS,


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

(a) Categories of Positions ~ The categories of positions shall be as follows: (1) Subprofessional
Category; (2) Professional Category; and (3) Executive Category.

(1) Subprofessional Category ~ This category includes positions involved in routine, manual,
or clerical work in support of office operations or those engaged in arts, crafts, and trades,

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

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

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

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

(b) Index of Occupational Services, Occupational Groups, Classes and Salary Grades(I0S) ~The
10S shall contain all occupational groups, position titles, and salary grades for all civilian
government personnel, The existing, levels of positions shall be reviewed to convert them to
the more appropriate number of levels that recognizes reasonable gradations in the levels of
difficulty, substantial changes and complexity of the duties and responsibilities of positions,
work methods, skills, competencies and other relevant factors and to convert them into
generic, brief but descriptive, and gender-neutral class or position titles.

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

(1) That positions are to be classified on the bi
qualification requirements;

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

(8) That position titles may be created, abolished, consolidated or divided as a result of

ization, and/or substantial changes in duties and responsibilities,

of their duties and responsibilities, and.

organization, reorgai
and work methods.

SEC. 8. Compensation System. ~ A Compensation System shall be administered to determine the rates
of pay for employees based on the position classification. The Compensation System shall consist of
(a) the salary schedule; (b) set of allowances, benefits and incentives; and (c) policies, rules and
regulations on the administration of the salary schedule and grant of allowances, benefits and
incentives.


{a) Total Compensation Framework - The total compensation to be given to all cjvilian
Pp i i
government personnel for services rendered shall be limited to the following:

(1) Basic salaries, including step increments;

(2) Standard allowances and benefits;

(3) Specifie- purpose allowances and benefits; and

(4) Incentives and performance-based pay.

Provided, That the Total Compensation Framework shall exclude all indirect compensation
under existing laws such as, but not limited to: life and retirement insurance benefits;

employee compensation insurance; health insurance; Pag:-Ibig Fund benefits; and Proyident
Fund benefits,

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

(1) Raise the minimum salary for Salary Grade 1 from the current rate of nine thousand
pesos (P9,000) to eleven thousand si ht pesos (P11,068) to make it even more
competitive with the market rates;

(2) Bring the compensation of government personne! closer to their private counterparts to at
least seventy percent (70%) of the market rate for all salary grades;

(3) Hnsure that authorized salaries for each of the salary grade allocation of
personnel shall not overlap to recognize differences in du
position;

(4) Provide for a comy
month pay to ma

nsation adjustment partly as basic salary and partly as mid-year 14%
ize the employees’ net take-home pay; and.

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

(©) Implementation Schedule ~The SSL 2015 shall be implemented in four (4) tranches

(1) On January 1, 2016, the compensation adjustment will be in the form of the first tranche
salary increase and a mid-year bonus.

(2) By January 1, 2017, the compensation adjustment will consist of the second tranche salary
increase, the mid-year bonus and a fifty percent (50%) implementation of the enhanced
performance-based bonus.

(8) By January 1, 2018, the compensation adjustment will include the third tranche salary
increase, mid-year bonus and the enhanced performance-based bonus.

(4) Finally on January 1, 2019, the full implementation of the SSL 2015 will be composed of
the final tranche salary increase, the mid-year bonus and the enhanced performance-
based bonus.

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


First Tranche

Salary
Grade | Step1 | Step2 [Step3 | Sup4

ps

1 9,660 | 9,753 [10,132
2 i351 | 10449 10.88
3 11089 | 11,199 11621 |
: 11878 _| 11,990 T2aas_|
5 12725

6 13,630 _|

[7 14,602

8 15,670

9 16,890

10 17,900_| 1807

[a 19,286 | 19,496

2 20,870 | 21,091

13 22,564 | 22,808

4 24,396 | 24,655

15 26,489 | 26,790 27A01

16 28,740 _| 29,066 29,729 _| 30,066

17 |30aa1 | 31189 | 31,536 32,055 | 92,622

33452 | 938s | 34,215 | 3
36,409

34,996 | 35,393

39,768 | 40,259 | 40,755
a__| 4439 | a39r_| 44517 45621 | 46,183 |
| a7aas » | 48,625 wast |
wm | 51826 | 52,460 | 53,112 54,430
24 | 6610 | 58014 5953
25 | O17 63,508 65,085
26 | 67,690 69368 71,00
2 | 73,997 7877
2% | #0760 | 8 82,764
29 | 88.214 90402. |
30 | 96354 9,745 | 101,195

31 | 117,086 | 118,625 | 120,180 | 121,758 | 123,356 | 124,975 | 126.616 |
32 | 135,376 | 137,174 | 138,996 | 140,843 | 142,714 531
33 | 160,924 | 165,752



Second Tranche

Salary

Grade | Step1_| Step2 Step6 Step 8
1 9981 | 10072 1053, 10,640
2 10667 | 10761 uaz 1345
3 11,387, | 11488 11,899 12,110
4 12,155 12,702 12,927
8 12975 3

6 [13.851 14307 |

7 14,785 1515 15,587

8 15818 16430 16,748
fo | 16,986 17,618 17,913

10 __| 18,217 18,896

567
22,361
24,315

19,620

27,399
29,902
[32.502 |
35524_|

[3331 |
Sot | 36592 | 96,960

41,333
45,662
50448

39,151_|

43,250

aan | 74444 | 75461
81,132 80,960
88,420 | 89,628 | 90,852 | 92,093

99,013 | 100,366 | 101,736

109,482 112,390 115481
30 Ez 124,159 [127,578 | 129,16
31 161,836 166,812 | 169,357 |
32 183,513 | 186372 195,215 | 198,255



‘Third Tranche

Salary

Grade | Step! | Step 2 te Step7 | Steps
10,602 r076 | 11,173
11,298 11,767 | 11,804
[i201 [12517 | 12,620 |
12.778
13,606

14,459
15,380
1633
9 17,627 18,095. |
10 | 18.885 19,384
a 20437 2201 |
2 2AN0 | 23,212. |
13 25,387
[ 27,766
30492
16 33,323

36,053

36,487
39477

49921 52,199
a__| 2554 5414 55,776 58322 |
2 | swt? | oan | 61307 | 6218 | 65162. |
Ey “| 68,598. | 69,6 PROS
ca 7 sina |
B 87493 90,136 | 91,487 |
26 97,755 | 99,221 | 100,708
27 | 102,910 109.221 | 110,858 | 112,519
28 | 14981 118,453 122,031 | 123,860 | 125,716 |
29 132346 136,343 140,461
3 147,869 | 150,086 | 152,395 | 154,618 | 150,925,
31__| 198,168 205,121 | 208,689 | 212,318 | 216011
32 | 233.857 210,288 | 246,618 | 251,024 | 256,509 | 260,074

33_| 289401



Fourth Tranche

Salary

Grade [Step 1 | Step2 Step 4
1 11,068 | 11,160 Te
2 ai7or_| 11851 12,004
[3 | 12,66 | 12,562 12,786
[a Tar | 13316 13521
[5 voor [rans | 14,332
6 14847 | 14,961 15,192
[7 15,738_| 15,859 16,108
8 [16758 | 16910 [

9 [17975 | 19125 | 18,430
10 | 19238 7 19,720,

20,754 | 21,619

22,938 | 23,222 2,801

| 25,292 | 25,545 26,181 | 26,506 | 26894 | 27,166 _| 27,500
27,735 | 28,099 28,800 _| 29,156 | 29,517 | 29,889 | 90,253
omat_[ some [si [51.00 | |

34,21

39,774
43,752

| 40,97__| 41,140

45,269 | 46,008 419,888
5 51,989 56,373
58,748 63,701

66,385 71,988

81,340
1915

193,797 | 195,981
15L191
170,845

[137,195
29 | 155,030
30 | 175,184
at__| 257,809
32 | 307.365
33 | 388,096 | 399,739

180,949 | 183,903 | 186,904
267,978 | 275,212 | 278549
319,887 | 326,388 | 932,919



(1) Basic Salaries ~ The rates in the above salary schedule represents monthly remuneration for
regular or contractual personnel, whether appointive or elective, and on full-time
employment. The remuneration for those on a part-time basis shall be proportionate to the
actual services rendered,

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

(2) Step Increments - An employee may progress from Step 1 to Step 8 of the salary grade
allocation of his/her position in recognition of meritorious performance based on a
performance management system approved by the Civil Service Commission (CSC) and/or
through length of service, in accordance with the rules and regu
jointly by the DBM and the CSC.

tions to be promulgated

Employees authorized to receive longevity pay under existing laws shall no longer be entitled
to step increments due to length of service. The grant of step increment based on merit and
performance shall be in lieu of the productivity incentive benefit

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

(1) Personnel Economie Relief Allowance- Allowance to supplement the basic salary due to
the rising cost of living, to be given at two thousand pesos (P2,000) per month;

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

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

(4) Year-End Bonus and Cash Gi
salary and cash gift at pres
of every year

"The year-end bonus is equivalent to one (1) month basic
ibed rates, ‘These shall be given not earlier than November

f) Specific-Purpose Allowa 1d Benefits- ‘These are allowances and benefits given to
employees under certain situations at prescribed rates, guidelines, rules and regulations,
which shall be limited to the following;

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

ons;

(2) Per Diem- This is a compensation for attendance in meetin
collegial bodies authorized by law;

6 in view of membership in

(3) HonorariaThese are token payments in recognition of
regular duties and responsibilities of positions;

vices rendered beyond the

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

9


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

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

(7) Hazard Pay- This is a premium given only to government personnel exposed to

hazardous situations such as, but not limited to, assignment in strife-torn or embattled
lated stations, prison camps, mental hospitals, leprosaria,
wse-infested areas and areas
declared under state of calamity or emergency which pose occupational risks or perils to
life;

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

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

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

Incentives and Performance-Based Pay- Benefits which are categorized as incentives and
performance-based pay shall be limited to the following:

() Enhanced Performance-Based Bonus~ This will be given subject to the achievement by
departments or agencies and individual personnel of their performance targets and
compliance with good governance conditions. The Inter-Agency Task Force on the
Harmonization of National Government Performance Monitoring, Information and
Reporting Systems created under Administrative Order No, 25, 8. 2011 shall prescribe the
procedures for the grant of this incentive and the conditions on eligibility. The bonus will
be equivalent to one (1) month up to two (2) months’ salary, providing for a progressive
rate as the position and responsibility in improving agency performance becomes higher;

(ii) Loyalty Incentive-This i intive to reward the personnels loyalty to government
service with at least satisfactory performance during his/her milestone years;

an ing

(iil) Anniversary Bonus- This is an incentive to recognize the personnet’s participative efforts
in and coniributions to the agencies’ continuing and/or viable existence to be giyen to
employees on the occasion of their agencies’ milestone anniversarie

(iv) Productivity Enhancement Incentive- ‘This will be given in December of every year al five
thousand pesos (P5,000) to all government employees to improve their productivity;

(v) Collective Negotiation Agreement (CNA) Incentive- This may be granted to both
management and rank-and-file employees of agencies with approved and successfully
implemented CNAs in recognition of their efforts in accomplishing performance target
at lesser cost, and in attaining, more efficient and viable operations through cost-cutting
measures and systems improvement, Such CNA incentive shall be sourced from
allowable Maintenance and Other Operating Expenses (MOC

items of agencies; apd


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

h) Special Allowances~ ‘The grant of Special Allowances to certain officials and employees as
provided under Republic Acts Numbered 9227, 9279, 9347, 9406 and 9417 shall be considered
as an advance implementation of any subsequent increases in the salary rates under Republic
Act No, 6758, as amended.

Accordingly, the full amount of Special Allowances or portions thereof that have been
received shall be converted as part of basic salaries as a result of the salary increases
authorized pursuant to this Act and such other subsequent issuances and/or laws
authorizing salary adjustments: Provided, That such Special Allowances shall cease to be
granted once the full amount of the authorized Special Allowances have been received by the
employee concerned,

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

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

SEC, 9. Salary Grade Assignments of Positions. ~ ‘The salary grades for positions for constitutional

officials and their

juivalent shall be:

Salary Grade | Position
33 President of the Philippines

Vice President of the Philippines -
President of the Senate of the Philippines -

Speaker of the House of Representatives
Chief Justice of the Supreme Court _

Senator -
‘Member of the I louse of Representatives

“Associate Justice of the Supreme Court

Chairman of a Constitutional Commission
under Article IX of the Constitution

30 ‘Member of a Constitutional Commission under
Article IX of the Constitution

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

Position Title Salary Grade

Administrative Aide I 1

Laboratory Aide 1 -

‘Administrative Aide IN

"Administrative Aide IV



~_ Media Produ 5
"Medical Laboratory Technician I 6 —
‘Administrative Assistant [7 os
z =|
Midwife 1 9 —_
Legal Assist 7 10
Teacher! [ou ~~
Tnstructor 1 —_ R -
Science Research Specialist I | 13 =
Executive Assistant | |
“Nurse 6 - -
“Medical Officer I | 6
Assistant Professor I ca i

Social Welfare Officer II
Engineer I

__ Medical Officer I
‘ience Research

SEC. 10, Conipensation for Local Government Unit Personiel. ~ The salaries, allowances, ben
incentives of LGU personnel shall be based on the rates authorized herein and those determined by
the DBM, subject to the PS limitation under Sections 325 and331of Republic Act No. 7160 and
authority from the sanggunian as provided under Sections 447(a), 458(a) and 468(a) of Republic Act
No. 7160.

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

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

Percentage of the Salary Schedule
1 Provinees/Cities | _ For Municipalities

Special Cities 100%
18Class 100% 90% —
2siClass 95% 85% _
3niClass 90% 80%
h __ 85% Bh
80% ~_70% _ _
6hClass 1% 65%

(b) The rates of RATA shall be determined based on the above income class schedule.


(©) The basic pay of barangay personnel shall be in the form of honoraria which shall not exceed.
the percentage of the Salary Schedule adopted by the LGU to which it belongs. They may
likewise receive year-end bonus based on the monthly honoraria as of October 31 of the year
and cash gift of five thousand pesos (P5,000).

However, the minimum year-end bonus of one thousand pesos (P1,000) for the punong,
barangay and six hundred pesos (P600) for other mandatory barangay officials shall not be
subject to the PS limitation.

(d) In case of partial implementation of the authorized compensation rates, the same shall be at
form percentage across all positions for every LGU.

SEC. 11. Military and Uniformed Personnel. ‘The military personnel of the Department of National
Defense (OND) and the uniformed personnel of the Department of the Interior and Local
Government (DILG), the Philippine Coast Guard (PCG) and the National Mapping and Resource
Information Authority (NAMRIA) shall be covered by the Base Pay Schedule, as follows:

DILG ~ Monthly Base Pay
DND = ee ’ NAMRIA | rirst | Second | ‘third | Fourth
EJ MEE andl DUBE ENE ANIA RSS: ‘Tranche | Tranche | Tranche | ‘Tranche
arene 1ie22 | vi99t | 12972 | 12,764
Apprentice | Apprentice
7 Fire/Joil_— | poticwomricer | Semans | Seaman’ | 45 ‘
Private Orda | Police Officer ran/ | Seaman’ | 15,256 | 15601 | 16,138 | 16597
Third Class | Third Class
Hiei, 5 “| Seaman ~
"Cli Second 16521 | 17109 | 17,719 | 18,351
aes 2 les CRT ml - i
Son Fite/Jail_ | Police Officer caman | Seaman | 4g a
Corporal One ‘ wens | FratChes | 17639 | 18372 | 19197 | 19,993
Petty Petty ;
offactan | oteetin | 1858 | 19474 | 204m | 21271
Fire/jail | Police Officer Petty Petty 5 ;
Officer II ut officer tt | officer | T2644 | 29673 | 21757 | 22888
Technical Petty Petty 53 ae
Sergeant Ofticert | Officer | 74519 | 22884 | 23624 | 75.189
Master | Senior ire/ [Senior Police | Chief Petty | Chief Petty -
Sergeant | _Jail Officer | Officer | Ofice ‘Orpicas | 20024 || 2Asen | 2606: | 272707
Senior |g, Senior Pouce | Senior Chie [ Senior Chit
Master Senior Police | paty Petty aor | asses | a0ar7
Sergeant cer Officer Officer _| =
Master Master
Chief Master | Senior Fire/ | Senior Potice ‘ és i
Chief Petty | Chief Petty | 27206 | 29,363 | 31574 | 93,952
Sergeant | JailOfficer I | Officer In Shier oifices | i
First Chief First Master | First Master
Senior Fire/ | Senior Police a53
Master ice | Chief Petty | ChiefPety | 29,826 | 32,437 | 35.277 | 38,366
Grgeane | J OfficerIV} Officer eines oie
Cadet Cadet | Cadet | 29826 | 92,437 38,966
Probationary
Second 29826 | 32437 | 35277 | 38,366
Lieutenant



DND DILG PcG NAMRIA Monthly Base Pay

Lieutenant

First. | Second | Third | Fourth

BJMP and BF an
i! BRR: ENE andl BESO. ‘Tranche | Tranche | Tranche | Tranche

Ensign 32.937 | 36228 | 3948 | 43,829

First
Lieutenant

Ticatenant
Inspector Inspector Junior
Grade

; Tieutenant
Senior Senior ee

Inspector Inspector 2

35,977 | 4007 | 44522 | 49,528

39,729 | 44699 | 50,291 | 56,582

_ Lieutenant 5
Chief Inspector | Chief Inspector | orutenat | eu 42458 | 48313 | 54,975 | 62,555

Superintendent | Superintendent | Commander | Commander | 46479 | 53,608 | 61830 | 71,313

Colonel
; Senior Senior 5
Colonel | cupcrinondent | Supsinerdent | Captain e908 | 80,583
Brigadier Chief Chief ; 5
General _ | Superintenclent | Superintendent | Commodore AE | UE:
Major ; z
Cah |__ Director Director 102,896
_ Admiral shies
Deputy
Hentenane Director Admiral 86228 | 101,058 | 125,574
General
General 7 acer ‘ seas | 100551 | 122723 | 149,795
General i

‘The remuneration for military and uniformed personnel shall be reckoned on a separate Total
‘Compensation Framework, to be authorized by the President of the Philippines, which shall include:
(a) Base Pay, including Longevity Pay; (b) Standard Allowances and Benefits;(c) Specific-Purpose
Allowances and Benefits; and (d) Incentives and Performance-Based Pay.

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

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

SEC. 12. Exempt Entities. - Exempt entities refer to: (a) government agencies that are not covered by
the CPCS authorized under Republic Act No. 6758, as amended; (b) GOCCs governed by the CPCS
established by the GCG under Republic Act No. 10149; and (©) those authorized by law and have
actually adopted their own CPCS.

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

4



Provided, That exempt entities which still follow the salary rates for positions covered by Republic Act
No. 6758, as amended, are entitled to the salary adjustments due to the implementation of this Act,
until such time that they have implemented their own CPCS,

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

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

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

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

For GOCC’ and LGUs, the implementation period shall be at least four (1) years depending on their
financial capabilities: Provided, further, ‘That the initial implementation shall not be earlier than
January 1, 2016, subject to the PS limitation for LGUs under Sections 325 and 531 of Republic Act No.
7160.

SEC. 16, Applicability to Certain Officials. ~ Pursuant to Section 6 of Article VIE and Section 10 of Article
VI of the Constitution, the salaries prescribed herein for the President of the Philippines, Vice
President of the Philippines and Members of Congress shall take effect only after the expiration of the
respective terms of the present incumbents.

mplementation of this Act with respect to the regular Members of the Cabinet shall be effective
ngs July 1, 2016.

SEC. 17, Finding Sources. ~The funding sources for the amounts necessary to implement this Act shall
be as follows:

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

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

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

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


SEC. 19. Applicability of Presidential Decree No. 985, as Amended by Presidential Decree No, 1597, -AUl
provisions of Presidential Decree No. 985, as amended by Presidential Decree No. 1597; Republic Act
No. 6758; Executive Order No. 201 s. 2016, Congress Joint Resolution No. 1, s. 1994; and Congress
Joint Resolution No. 4, s. 2009 which are not inconsistent with, expressly modified, revoked or
repealed in this Act shall continue to be in full force and effect.

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

All other laws inconsistent with this Act such as, but not limited to, Presidential Decree No. 1638,
Republic Acts Numbered 4670, 6686,7160,7305,8439,8441,8551,9173, and 9433 are hereby amended,

SEC. 21. Implementing Guidelines.~The DBM shall
provisions of this Act

ssue the guidelines necessary to implement specific

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

Approved,