SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
SENATE 
) 
) 
) 
2671 
S.No. ___ _ 
's'ft.atr 
(II)Hl";t Ilf tqe *,-fft'"tb~¥ 
"15 
FEB 26 P 1 :ze 
Prepared by the Committees on Civil Service and Government Reorganization; 
National Defense and Security and the Committee on Finance with Senators Trillanes 
IV, Recto and Escudero as authors 
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: 
1 
ARTICLE I 
2 
GENERAL PROVISIONS 
3 
SECTION 1. Short Title. - This Act shall be known as the "Salary Standardization 
4 
Law IV". 
5 
SEC. 2. Declaration of Policy.- Pursuant to Section 5, Section IX-B of the 
6 
Constitution, it is hereby declared the policy of the State to provide for the standardization of 
7 
the compensation of all government officials and employees taking into account the nature of 
8 
the responsibilities pertaining to, and the qualifications required for, their positions, thereby 
9 
strengthening the government's merit and reward system. 
10 
SEC. 3. Governing Principles. - The following principles shall govern the modified 
11 
Compensation and Position Classification System and Base Pay Schedule of the government: 
1 


1 
(a) All government personnel shall be paid just and equitable compensation in accordance 
2 
with the principle of equal pay for work of equal value. Differences in pay shall be based on 
3 
verifiable compensation and position classification factors, with due regard to the financial 
4 
capability of the government; 
5 
(b) The compensation for all civilian government personnel; and, military and uniformed 
6 
personnel shall generally be comparable with thosc in the private sector doing comparablc 
7 
work in order to attract, retain and motivate a corps of competent civil servants; 
8 
(c) The compensation for all civilian government personnel; and, military and uniformed 
9 
personnel shall likewise be standardized and rationalized across all government agencies to 
10 
create an enabling environment that will promote social justice, integrity, efficiency, 
11 
productivity, accountability and excellence in the civil service; 
12 
(d) A periodic review of the government's Compensation and Position Classification System 
13 
shall be conducted every three (3) years, taking into account the changes in skills and 
14 
competency requirement in the bureaucracy, the relative demand for certain expertise, the 
15 
possible erosion in the purchasing power due to inflation, and other factors; and 
16 
(e) The Base Pay Schedule of military and uniformed personnel of the government shall 
17 
likewise take into account prevailing economic realities and create professionalism, 
18 
exemplary performance, and commitment to service. 
19 
SEC. 4. Definition of Terms. - For purposes of this Act, the following terms shall 
20 
have the corresponding meanings: 
21 
(a) Base Pay - synonymous to salary; the fixed amount of money given to an' employee as 
22 
payment for services rendered, which consists only of the gross salary, without other benefits 
23 
or emoluments. 
24 
(b) Benchmark Job - jobs that are service-widc, that is, common to all sectors, or 
25 
representative of specific sectors, and relatively comparable to jobs outside the government, 
26 
the descriptions of which will be used as a basis for the valuation of all other jobs in the civil 
27 
service. 
28 
(c) Commission- the Civil Service Commission or such other successor agency as the 
29 
Constitution may provide. 
30 
(d) Compensable factors- factors used to provide a basis for judging job value in a job 
31 
evaluation plan. In this Act, these are: Competcncies, Nature of Work, and Accountability. 
32 
(e) Cut - a range of Salary Grades which arc grouped together for having similar or related 
33 
nature of jobs. 


1 
(f) Department - the Department of Budget and Management, or such other successor-agency 
2 
as the law or regulations may provide. 
3 
(g) Cash Incentive - a financial reward, that compensates an employee for outstanding 
4 
performance and/or consistent performance. 
5 
(h) Job Classification Index, or Index - a table of occupational services, job titles, and Salary 
6 
Grades showing the relative worth of jobs in the civil and military services, which. forms part 
7 
of, and to which the Omnibus System, applies. 
8 
(i) Salary Grade - a category of jobs which, although different with respect to kind or subject 
9 
matter of work, are sufficiently equivalent as to Skills and Knowledge, Nature of Work, and 
10 
level of Accountability, to warrant the inclusion of such classes of jobs within one range of 
11 
Base Pay, and which distinguishes it from other Salary Grades in the Base Pay Schedule. 
12 
G) New Base Pay - the Base Pay of an employee pursuant to the terms of this Act. 
13 
(k) Omnibus Job Classification and Compensation Standardization System, or Omnibus 
14 
System- the system herein adopted for classifying jobs and determining rates of Total 
15 
Compensation for jobs and employees. It consists, among others, of the Job Classification 
16 
Index; the Career Track that employees may progress through; the Total Compensation 
17 
Framework, including the Base Pay Schedule, Allowances and Other Pay, the rules for 
18 
assignment of jobs to grades, and of incumbents to Steps; the conditions for permitting Base 
19 
Pay increases, as well as creation of and increases in Allowances and Other Pay; and all other 
20 
policies, rules, and regulations for the implementation and administration thereof. 
21 
(I) Previous Base Pay - the Base Pay of an employee prior to the effectivity of this Act. 
22 
(m) Step - a level of Base Pay within a Salary Grade. 
23 
(0) Total Compensation - the complete pay and rewards package used by the organization to 
24 
attract, motivate and retain employees. 
25 
(p) Total Cash Compensation - the total amount of payment given to an employee for 
26 
services rendered, consisting of the following components: (i) Base Pay; (ii) Allowances and 
27 
Other Pay; and (iii) Cash Incentives. 
28 
(q) Uniformed Personnel -
government employees who directly perform dutics and 
29 
responsibilities related to national security and actual defense of the State, or public safety 
30 
and internal peace and order; whose selection, hiring, appointment, transfer, and promotion 
31 
are governed by a separate merit and promotion system; who arc subject to a different set of 
32 
disciplinary procedure; and who are covered by a distinct retirement and/or separation 
33 
benefits system. 
3 


1 
For purposes of this Act, the term refers to military personnel of the Armed Forces of 
2 
the Philippines and uniformed personnel of the Philippine National Police, pursuant to 
3 
Republic Act No. 6638, as amended, and Republic Act No. 6648, 'as amendcd. The term also 
4 
applies to the uniformed personnel of all other agcncies which have adopted these laws, such 
5 
as the Philippine Public Safety College, Bureau of Jail Management and Penology, the 
6 
Bureau of Fire Protection, the Philippine Coast Guard, and the National Mapping and 
7 
Resource Information Authority. 
8 
ARTICLE II 
9 
COVERAGE 
10 
SEC. 5. National Government. - This Act shall apply to all positions for civilian 
11 
government personnel in the Executive, Legislative and Judicial Branches, and the 
12 
Constitutional Commissions, whether regular, casual or contractual in nature, appointive or 
13 
elective, on full-time or part-time basis, now existing or hereafter created. The military and 
14 
uniformed personnel shall be covered by the same compensation system. 
15 
Excluded from the coverage of this Act are individuals and groups engaged through 
16 
job orders or contract of services and non-organic personnel of the government. 
17 
Moreover, government personnel in The Government Owned and Controlled 
18 
Corporations (GOCCS), Government Financial Institutions (GFIS), and Government 
19 
Instrumentalities with Corporate Powers (OlCP) I Government Corporate Entities (GCE) are 
20 
excluded from the coverage of this act. 
21 
Provided, that the compensation received by the personnel of GOCCS as developed 
22 
by the governance commission for GOCCS (GCG) shall not be lower than the compensation 
23 
of personnel doing comparable work as provided in this act. 
24 
SEC. 6. Local Government Units. - The salaries, wages, allowances and other 
25 
emolument and benefits of officials and employees of Local Government Units (LGUs) shall 
26 
be determined by their respective Sanggunians in accordance with the pertinent provisions of 
27 
Republic Act No. 7160: Provided, That LGUs may, iftheir finances warrant, grant salaries or 
28 
wage adjustments to their personnel. 
29 
An LGU which is not capable of implementing the provisions of this Act may apply 
30 
for total or partial exemption with the Civil Service Commission (hereinafter referred to as 
31 
Commission) and the Department of Budget and Management (hereinafter referred to as 
32 
Department). The grant of eligibility shall be based on uniform standards that will be 
4 


1 
determined jointly by the Commission and the Department. Provided, That partial 
2 
implementation shall be fixed at a uniform percentage applied uniformly to all jobs in the 
3 
local government. 
4 
In case of partial implementation of salary or wage adjustments, the same shall be at 
5 
uniform proportion of the established rates for all positions in each LGU. 
6 
(a) The salary or wage adjustments, if warranted by the finances of the LGUs, shall be 
7 
determined on the basis of the income class and financial capability of each LGU but 
8 
shall not exceed the following percentages of the rates in the salary schedule under 
9 
table 1 of section IS of this act: 
For Provinces/Cities 
For Municipalities 
Special Cities 
100% 
1 st Class 
100% 
90% 
2na Class 
9S% 
8S% 
3ra Class 
90% 
80% 
4tn CIass 
8S% 
7S% 
stn Class 
80% 
70% 
6tn Class 
7S% 
6S% 
10 
(b) The rates of representation and transportation allowances shall be determined on the 
11 
basis of the income class of each LGU. 
12 
(c) Each barangay official/employee paid monthly honorarium may be granted year-end 
13 
bonus based on the monthly honorarium rate as of October 31 of the year, and cash 
14 
gift, subject to the budgetary requirements and personal services limitation in 
15 
barangay budgets under Republic Act No. 7160. Enforcement of the personal services 
16 
limitation shall be waived insofar as the minimum year-end bonus of One Thousand 
17 
Pesos (P 1,000.00) for the punang barangay and Six Hundred Pesos (P 600.00) for the 
18 
other mandatory barangay officials, and their cash gifts are concerned. 
19 
ARTICLE III 
20 
OMNIBUS COMPENSATION AND POSITION CLASSIFICATION 
21 
SEC. 7. Adopting an Omnibus Compensation and Position Classification.- The 
22 
Department shall design, develop, and establish the Omnibus System, or amend the same as 
5 


1 
necessary, which shall replace and supplant the Salary Standardization Law under Joint 
2 
Resolution No.4, series of2008. 
3 
SEC. 8. Governing Principles of the Omnihus System. - The Omnibus System shall 
4 
be created and implemented using the following principles: 
5 
(a) The Omnibus System shan promote internal equity among government 
6 
employees, providing equal pay for work of equal value, and base differences in pay upon 
7 
substantive distinctions in verifiable Compensable Factors. Consequently, Base Pay shal! be 
8 
standardized across all agencies. 
9 
(b) The Omnibus System shall use performance as basis for merit increases and 
10 
promotions, employing an integrated system for evaluating work performance of both the 
11 
agency and its employees. 
12 
(c) The Omnibus System shall adhere to the principle of external competitiveness, 
13 
taking into account the prevailing market rates for work of equal value in the private sector. 
14 
(d) The Omnibus System shall be easy to administer and responsive to current 
15 
challenges. Simplified terms shall be used to denominate all jobs in the civil, military and 
16 
uniformed service. A review of government compensation rates, taking into account various 
17 
factors, shall be undertaken by the Commission and the Department every three (3) years 
18 
from its implementation, pursuant to Section 29 of this Act. A report of said review shal! be 
19 
furnished to the Committees on Finance and Civil Service in both Houses of Congress. 
20 
SEC. 9. Joh Classification Index. - The Omnibus System shall provide for a Job 
21 
Classification Index to be developed jointly by the Commission and the Department, using 
22 
the following guidelines: 
23 
(a) Any modification of the jobs in the Index, including the creation or abolition of 
24 
jobs, or the consolidation or division of functions thereof, as a result of organizational, re-
25 
organizational, and/or substantial changes in work methods and duties, shal! be made 
26 
pursuant to law: Provided, That new jobs shall be created only when new duties are found to 
27 
exist. 
28 
(b) The Commission and the Department shall monitor and update the description for 
29 
each job in the Index, after consultation with the agencies to the extent necessary; a~d 
30 
conduct periodic surveys of agencies to ascertain the actual duties, responsibilities, and other 
31 
requirements of jobs therein. 
6 


1 
(c) Whenever the circumstances warrant, the Commission and the Departmcnt may 
2 
jointly certify necessary changes injob description, Salary Grade, Step assignment, and Total 
3 
Compensation. Such certifications shall be binding on administrative, certifying, payroll, 
4 
disbursing, accounting and auditing officers of the governmcnt. 
5 
SEC. 10. Salary Grades of Officials. - The Base Pay of the following officials shall 
6 
be in accordance with the Salary Grades indicated hereunder: 
7 
Table 1. Official Salary Grade 
Supreme Court 
Senator 
Member of the House of Representatives 
Associate Justices 
Supreme Court 
Commissioner of a Constitutional Commission 
on Human ''-'1';'''' 
on Human Rights 
Commissioner of the Bureau of Customs 
Commissioner of the Bureau of Immigration 
Deputy 
Deputy Ombudsman 
~pc"'m Prosecutor 
32 
32 
32 
31 
31 
31 
30 
I 
30 
31 
31 
31 
30 
8 
SEC. 11. Salary Grades for All Other Jobs. - For a\1 other jobs in the government, 
9 
the Commission shall classify and re-classify the appropriate Salary Grade, using the 
10 
Compensable factors for each job. The Commission shall refer to the Salary Grade 
11 
assignments of the officials in Section 10 hereof in making Salary Grade assignments. 
7 


1 
SEC. 12. Compensable Factors. - The Commission shall have the authority to 
2 
determine the appropriate methodology for the evaluation of Compensable Factors for every 
3 
job in government, based on the following: 
4 
(a) Competencies, which include technical skills, or the minimum knowledge of technical 
5 
matters related to the job, which may be manifested through education, training, practical 
6 
experience, and eligibility. Competencies also include people skills, or that required for 
7 
people interaction, both internal and external to agency. 
8 
(b) Nature of the work, which refers to the complexity thereof, or the mental challenge 
9 
relative to the routine/non-routineness ofajob; physical working conditions; and the volume 
10 
of work, including inherent work stress, and the frcquency thereof. 
11 
(c) Accountability, which refers to the degree to which the job is directly answerable (i) for 
12 
people or property, and/or (ii) to taxpayers and/or, (iii) where applicable, peers, thru 
13 
established professional standards. It includes responsibility for people, which considers both 
14 
number of jobs and variety of functions supervised or managed; job impact, or the extent to 
15 
which the job directly affects agency operations and goals, in terms of reach and the 
16 
magnitude of impact, or conversely, the impact of any error; and professional obligations, 
17 
including any external special obligations or accountability to established professional 
18 
standards. 
19 
SEC. 13. Career Tracks. - The Omnibus System shall also provide for broad 
20 
occupational groupings of jobs and a system of progression which determines the career path 
21 
of an employee, consisting of the following tracks: 
22 
(a) Administrative or "A Track" - This track covers administrative support service 
23 
jobs and jobs performing "housekeeping" functions. This includes financial services, general 
24 
support services, and in-house human resource services. 
25 
(b) Technical or "T Track"- This track covers non-administrative/non-housekeeping 
26 
support service jobs which involve the application of a professional or technical discipline, or 
27 
some craft or trade, primarily engaged in the implementation of specific programs or services 
28 
made under supervision. 
29 
(c) Specialized or "S Track"- This track covers non-administrative/non-housekecping 
30 
jobs which are primarily highly technical and/or policy defining and determining. These jobs 
31 
require intensive and thorough knowledge of a specialized field. 
32 
(d) Executive or "E-Track"- This track covers jobs primarily involved in the management 
33 
of people, resources, and policy. 
8 


1 
SEC. 14. Total Cash Compensation. - Total Cash Compensation of each employee 
2 
shall consist of: (a) Base Pay - This amount shall be given to each employee pursuant to the 
3 
Base Pay Schedule provided in Section 15hereof. 
4 
(b) Allowances and Other Pay - An agency may grant only such Allowances and Other Pay 
5 
as provided in Section 18 hereof, using only such standard rates authorized by the 
6 
Department, and without affecting the Base Pay. 
7 
(c) Cash Incentives - An agency may grant only such Cash Incentives as provided in Section 
8 
20 hereof, using only such standard rates authorized by the Department, and without affecting 
9 
the Base Pay. 
10 
SEC. 15. Base Pay. - under the Omnibus System, there shall be thirty-three (33) 
salary grades under the following base pay schedule for civilian personnel: 
Table 1. Base Pay Schedule (Civiliau Personnel) 
SO 
Step 1 
Step 2 
Step 3 
Step 4 
Step 5 
Step 6 
Step 7 
Step 8 
1 
16,000 
16,080 
16,160 
16,241 
16,322 
16,404 
c-16,486 
16,568 
2 
17,200 
17,286 
17,372 
17,459 
17,547 
17,634 
17,722 
17,811 
3 
18,400 
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 
2 J, 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 
7 
23,200 
23,316 
23,433 
23,550 
23,667 
23,786 
23,905 
24,024 
8 
24,400 
24,522 
24,645 
24,768 
24,892 
25,016 
25,141 
25,267 
9 
25,800 
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 
II 
29,800 
30,038 
30,279 
30,521 
30,765 
31,011 
31,259 
31,509 
12 
31,800 
32,054 
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,-i21 
42,458 
--.--;,~ 
42,798 r----43,140 
17 
43,800 
44,086 
44,375 
44,666 
44,959 
45,254 
45,551 
45,850 
--~-
9 


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 
53,222 
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 
64,319 
--.~~--
22 
62,800 
63,302 
63,809 
64,834 
65,353 
65,875 
66,402 
23 
67,800 
68,342 
68,889 
69,440 
69,996 
70,556 
7 I, 120 
71,689 
24 
72,800 
73,382 
73,969 
74,561 
75,158 
75,759 
76,365 
76,976 
25 
100,000 
101,500 
103,023 
104,568 
106,136 
107,728 
109,344 
110,984 
-
26 
225,000 
228,375 
231,801 
235,278 
238,807 
242,389 
246,025 
249,715 
.-~------- r-------------'328,033 
----
27 
300,000 
304,500 
309,068 
313,704 
318,409 
323,185 
332,953 
28 
375,000 
380,625 
386,334 
392,129 
398,011 
403,982 
410,041 
416,192 
29 
450,000 
456,750 
463,601 
470,555 
477,614 
484,778 
492,049 
499,430 
30 
550,000 
558,250 
566,624 
575,123 
583,750 
592,506 
601,394 
610,415 
31 
650,000 
663,000 
676,260 
689,785 
703,581 
717,653 
732,006 
746,646 
32 
800,000 
816,000 
832,320 
848,966 
865,946 
883,265 
900,930 
918,949 
33 
1,000,000 
1 
Further, the military personnel of the Department of National Defense (DND) and the 
2 
uniformed personnel of the Department of the Interior And Local Government (OILG), the 
3 
Philippine Coast Guard (PCG) and the National Mapping and Resource Information 
4 
Authority (NAMRIA) shall be covered by the same compensation system that will promote 
5 
pay equity for an effective, efficient, professional and motivated corps of military and 
6 
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) 
Candidate 
7 
23,200 
Soldier 
Fire/Jail 
Police Officer 
Apprentice 
Private 
10 
27,800 
Officer I 
I 
Seaman/Seaman 
10 


-:=-,._-_. 
_. 
Third Class 
Private First 
Seaman Second 
11 
29,800 
Class 
Class 
Fire/Jail 
Police Officer 
Seaman First 
Corporal 
12 
31,800 
Officer II 
II 
Class 
-~ ---
Sergeant 
Petty Officer III 
13 
33,800 --
Staff 
Fire/Jail 
Police Officer 
Petty Officer [J 
14 
35,800 
Sergeant 
Officer III 
III 
Technical 
Sergeant 
Petty Officer I 
15 
37,800 
Master 
Senior Fire/ 
Senior Police 
Chief Petty 
16 
40,800 
Sergeant 
Jail Officer I 
Officer I 
Officer 
Senior 
Senior 
Senior Police 
Senior Chief 
Master 
Fire/Jail 
17 
43,800 
Officer II 
Pet! y Offi cer 
Sergeant 
Officer II 
Senior 
Chief Master 
Senior Police 
Master Chief 
Fire/Jail 
18 
46,800 
Sergeant 
Officer III 
Petty Officer 
Officer III 
First Chief 
Senior 
First Master 
Senior Police 
Master 
Fire/Jail 
Officer IV 
Chief Petty 
19 
49,800 
Sergeant 
Officer IV 
Officer 
Cadet 
19 
49,800 
Probationary 
Second 
19 
49,800 
Lieutenant 
Second 
Ensign 
21 
57,800 
Lieutenant 
First 
Lieutenant 
Inspector 
Inspector 
22 
62,800 
Lieutenant 
Junior Grade 
Senior 
Senior 
Lieutenant 
Captain 
23 
67,800 
Inspector 
Inspector 
Senior Grade 
11 


Chief 
Chief 
Lieutenant 
Major 
24 
72,800 
Inspector 
Inspector 
Commander 
Lieutenant 
Superintendent Superintendent Commander 
25 
100,000 
Colonel 
Senior 
Senior 
Colonel 
Captain 
26 
225,000 
Superintendent Superintendent 
Brigadier 
Chief 
Chief 
Commodore 
27 
300,000 
General 
Superintendent Superintendent 
Major 
Director 
Director 
Rear Admiral 
28 
375,000 
General 
Lieutenant 
Deputy 
Director-
Vice Admiral 
29 
450,000 
General 
General 
Director 
General 
Admiral 
General 
30 
550,000 
1 
SEC. 16. Administration of the Base Pay Schedule. - The Base Pay Schedule shall 
2 
be administered by the Department using these guidelines: 
3 
(a) The Base Pay shall be determined as follows: 
4 
(I) Step I constitutes the Base Pay corresponding to the entry level for a job in a 
5 
given Salary Grade, while Step 8 is the maximum amount of Base Pay in such Salary Grade. 
6 
Step I shall be the hiring rate in a given Salary Grade. 
7 
(2) An employee can progress through Steps I to 8 and become entitled to the 
8 
corresponding increase in Base Pay through a performance-based system approved by the 
9 
Commission. 
10 
(3) A progression to a higher Salary Grade is a promotion )"hich shall be granted only 
11 
on the basis of merit and fitness, as determined by performance andlor qualification standards 
12 
set by the Commission, by which an employee shall become e,\titled to the corresponding 
13 
increase in Base Pay. 
14 
(b) The Base Pay Schedule shall be used for jobs that are paid on a monthly rate basis. All 
15 
amounts of Base Pay in the Base Pay Schedule are expressed as gross monthly rates in 
16 
Philippine Pesos, and shall represent full compensation for full-time employment, regardless 
12 


1 
of the location where the work is performed. Base Pay for services rendered on a part-time 
2 
basis shall be adjusted proportionately. 
3 
(c) The daily wage rate shall be determined by dividing the monthly Base Pay rate by twenty-
4 
two (22) working days per month. 
5 
SEC. 17. Special Allowances under Republic Act Nos. 9227, 9347, and 9279. - The 
6 
special allowances under Section 6 of Republic Act No. 9227, Section 4 of Republic Act No. 
7 
9347, and Section 4 of Republic Act No. 9279, as well as other laws granting allowances to 
8 
government employees, military and uniformed personnel, except those provided in Section 
9 
18,19 and 20 of this Act, shall hereafter be converted as part of Base Pay. The Special Trust 
10 
Fund created under Section 3thereof Republic Act No. 9279 shall be abolished and any 
11 
balance thereof shall revert to the General Fund. 
12 
SEC. 18. Allowances and Other Pay. - This type shall be limited to: 
13 
(a) Standard Allowances and Other Pay -those amounts given to employees for work 
14 
performed or which attach to all jobs or specific jobs acrOSs all agencies, at prescribed 
15 
standard rates. 
16 
(b) Specific-Purpose Allowances - those amounts which attach only to jobs under specific 
17 
conditions, or for special situations, which shall be given at prescribed standard rates. 
18 
SEC. 19. Standard Allowances and Other Pay. -
19 
(a) Personnel Economic Relief Allowance - This shall be given at Two Thousand Pesos 
20 
(P2,000.00) per month, the combined total of the current Five Hundred Pesos (P500.00) 
21 
Personnel Economic Relief Allowance and the One Thousand Five Hundred Pesos 
22 
(PI,SOO.OO) Additional Compensation to supplement pay due to the rising cost of living; 
23 
(b) Uniform/ Clothing Allowance - This shall be given to sustain the provision of the required 
24 
uniform to employees, at prescribed rates; and 
25 
(c) Year-End Bonus and Cash Gift - This is equivalent to one (I) month basic salary and 
26 
Cash Gift provided under Republic Act No. 6686, as amended by Republic Act. No. 8841. 
27 
Henceforth, the year-end bonus and other cash gifts shall be funded from the annual general 
28 
appropriations. 
29 
(d) Overtime Pay - the consideration paid for work, whether in eash or compensatory time 
30 
off, performed by an employee beyond his regu lar working hours in a day, and those 
31 
performed on rest days, holidays, and non-working days, which shall be given at prescribed 
32 
standard rates. 
13 


1 
(e) Night Differential - the remuneration premium given to an employee whose regular 
2 
working hours fall wholly or partially within six o'clock in the evening to six o'clock in the 
3 
morning of the following day, which shall be given at prescribed standard rates. 
4 
SEC. 20. Specific Purpose Allowances. -- This type shall be limited to: 
5 
(a) SubSistence Allowance - the allowance given to employees whose scrvices are made 
6 
available at all times in their places of work, even during mealtimes, which shall be at 
7 
prescribed standard rates. 
8 
(b) Hazard Pay - the amount given to employces who are exposed to hazardous situations as 
9 
may be determined by the Department, which shall be at prcscribed standard rates. 
10 
(c) Overseas and Other Allowances- the amount given to employees assigned abroad at such 
11 
rates authorized under Republic Act No. 7157, as amended, and its implementing rules and 
12 
regulations. 
13 
(d) Representation and Transportation Allowances -the amount given to officials down to 
14 
division chiefs at monthly standard rates in order to defray transportation and representation 
15 
expenses while in the actual performance of the duties of the positions. Transportation 
16 
allowance shall not be given to those assigned government transportation. 
17 
(e) Per Diem - the compensation for attendance to meetings in view of membership in 
18 
collegial bodies created by law. 
19 
(I) Honoraria - the token payments in recognition of services rendered beyond the regular 
20 
duties and responsibilities of positions. 
21 
(g) Special Counsel Allowance - allowance for lawyer personnel in the legal staff of 
22 
departments, bureaus or offices of the national government deputized by the Office of the 
23 
Solicitor General to appear in court as special counsel in collaboration with the Solicitor 
24 
General or Prosecutors concerned. 
25 
(h) Other allowances and benefits granted under specific conditions and situations, related to 
26 
the actual performances of work as may be determined by the DBM: Provided, That Section 
27 
8 of Republic Act No. 9417 shall remain effective and enjoyed in thc manner prescribed 
28 
under said law. 
29 
SEC. 21. Incentives. - This type shall bc limited to: 
30 
(a) Productivity Incentive, Collective Negotiation Agreement (CNA) Incentive, and Other 
31 
Incentives - that amount or incentive given to enhance employee productivity, subject to the 
32 
accomplishment of agency performance targets and the generation of savings. 
33 
(b) Longevity/Loyalty Incentive -that amount given on milestone years to recognize the 
34 
employee's length of service with at least satisfactory performance, or to recognize the 
14 


1 
agency's continuing andlor viable existence. Longevity shall be rewarded through the grant 
2 
of periodic flat incentives or bonuses, regardless of Salary Grade, which shall be at prescribed 
3 
standard rates. 
4 
(c) Anniversary Bonus - one-time incentive to be given to employees on the occasion of their 
5 
agencies' milestone anniversaries, to recognize the employees' participative efforts in and 
6 
contributions to the agencies' continuing andlor viable existence. 
7 
(d) Service Incentive- that amount given in the form of honoraria as token payments for 
8 
services rendered outside or in addition to the employee's regular functions, which shall be at 
9 
prescribed standard rates. 
10 
SEC. 22.Productivity Benefit, CNA Benefit, and Other Benefits. - This type shall be 
11 
limited to: 
12 
(a) Productivity Benefit and/or CNA Benefit - the Productivity Benefit is a benefit given to 
13 
employees or groups of employees as a reward for demonstrated productivity. The CNA 
14 
Benefit is a benefit given as a result of funds generated from cost savings measures provided 
15 
for in the pertinent CNA. 
16 
(b) Health Maintenance Benefit - benefits given to maintain employee health, in addition to 
17 
the benefits provided for under the National Health Insurance Program administered by the 
18 
Philippine Health Insurance Corporation. 
19 
SEC. 23. Guidelines for Granting the Productivity and/or CNA Incentives and 
20 
Benefits. - An agency may only grant the Incentives in Section 21 hereof subject to the 
21 
following parameters: 
22 
(a) The CNA Incentive shall be given pursuant to Public Sector Labor Management Council 
23 
(PSLMC) Resolution No.4, series of 2002, and PSLMC Resolution No.2, series of 2003, as 
24 
may from time to time be amended by the PSLMC. 
25 
(b) For employees of all government-owned and controlled corporations and financial 
26 
institutions, the Incentives in Section 22 hereof may only be granted upon a showing of the 
27 
agency's fiscal and financial viability, in addition to the requirements of paragraph (a) above. 
28 
The Department shall issue rules for the implementation of paragraph (c) hereof. 
29 
ARTICLE IV 
30 
CONVERSION TO THE OMNIBUS SYSTEM 
31 
SEC. 24. Treatment of Existing Allowances and Other Benefits of Incumbents. -
32 
The Department shall classify andlor re-classify all existing allowances, incentives and other 
33 
benefits currently being received by all government employees, including incumbents, into 
15 


1 
Base Pay, Allowances and Other Pay, pursuant to the Total Compensation Framework, and 
2 
pursuant to the true nature of such, notwithstanding its existing nomenclature. 
3 
Except for those in Section 18 and 21 hereof, all other allowances, incentives, and 
4 
benefits, being enjoyed by incumbents prior to the effectivity of this Act, which shall not be 
5 
continued to be given as a separate amount, including ad hoc, provisional, tentative, or 
6 
improvised benefits being received by government employees which are really intended to 
7 
provide some form of economic assistance, in acknowledgement of the inadequacy of 
8 
compensation in government, shall be deemed integrated, subsumed, incorporated, and 
9 
included in the Base Pay Schedule as herein provided, without need of further adjustment of 
10 
the amounts thereof, since the same already rellects prevailing economic conditions and the 
11 
pertinent Compensable Factors. 
12 
Since it is being adopted as a curative policy, this classification and reclassification 
13 
shall apply even as to allowances, incentives, and benefits being received by incumbents 
14 
prior to the effectivity of this Act. 
15 
SEC. 25. Total Compensation,' Non-Diminution in Pay.- Notwithstanding any 
16 
provision of law to the contrary, there shall be no diminution in pay in that the gross Total 
17 
Compensation of the employee under the Omnibus System should be greater than the gross 
18 
total pay being received by incumbents prior to the effectivity of this Act. In any case, there 
19 
shall be no vested right in any pay being received by incumbents, unless the incumbent has 
20 
already rendered services therefor. 
21 
SEC. 26. Base Pay. - The New Base Pay of all incumbents shall conform to the 
22 
amount in the Base Pay Schedule corresponding to Step 1 of the Salary Grade jointly 
23 
assigned to the incumbent by the Department and the Commission: Provided, That -
24 
(a) Where the Previous Base Pay of an incumbent is greater than Step 1 of such Salary 
25 
Grade, the incumbent shall be assigned to the Step with the next higher Base Pay; 
26 
(b) Where the Previous Base Pay of an incumbent is greater than the Base Pay for 
27 
Step 8 of the prescribed Salary Grade, the incumbent shall be assigned to Step 8 of that 
28 
Salary Grade, and continue to receive the Previous Base Pay. In this case, the incumbent shall 
29 
receive no upward adjustment in Base Pay until such time as the incumbent is promoted to a 
30 
higher Salary Grade, the Base Pay of which is greater than his Previous Base Pay. 
31 
SEC. 27. Other Pay. - (a) The principle of non-diminution shall not apply with 
32 
respect to allowances, remuneration, and benefits being received by incumbents prior to the 
33 
effectivity of this Aet (i) for which no appropriation has been provided in the National 
34 
Budget; (ii) which are ad hoc, provisional, tentative, or improvised benefits, in 
16 


1 
acknowledgment of the inadequacy of compensation in government, and arc thus intended to 
2 
provide some form of economic assistance; and (iii) otherwise for which no appropriate 
3 
approval has been granted. 
4 
(b) The principle of non-diminution shall not apply with respect to any type of incentive 
5 
being received by incumbents prior to the effectivity of this Act, the same being contingent 
6 
on the agency's or employee's performance. 
7 
SEC. 28. Specific Authority of Department. _. The Department, in consultation with 
8 
the Commission, is hereby authorized to issuc regulations for the transition into the Omnibus 
9 
System, including the continuance, discontinuancc, decrease, or increase in rates of previous, 
10 
existing, and future components of Total Compensation, in any form granted. 
11 
ARTICLE V 
12 
THE COMMISSION AND THE DEPARTMENT 
13 
SEC. 29. Exclusive Functions, Powers, and Jurisdiction of the Commission. - The 
14 
Commission shall have exclusive original jurisdiction over any and all disputes arising from 
15 
the interpretation of this Act or its implementing rules and regulations, and the 
16 
implementation of the Omnibus System, including, without limitation, any dispute on the 
17 
allowance, disallowance, increase, decrease, classification, or reclassification of any 
18 
component of total compensation, alleged diminution of payor benefits, and assignment of 
19 
Salary Grades to jobs, and of incumbents to Steps. Cases that are instituted in other fora shall 
20 
be dismissed for lack of jurisdiction, and exhaustion of remedies before the Commission shall 
21 
be a condition sine qua non to judicial review on thcse matters. 
22 
Decisions of the Commission on these matters shall be brought only to the Supreme 
23 
Court via petition for certiorari pursuant to Section 7, Article IX of the Constitution, 
24 
notwithstanding the provisions of Republic Act No. 7902. Notwithstanding the provision of 
25 
any law to the contrary, the evaluation and approval of qualification standards for all jobs in 
26 
government, including, but not limited to, those in constitutionally fiscally autonomous 
27 
groups; government-owned and controlled corporations and 
government financial 
28 
institutions, whether or not exempt from the unified system under Presidential Decree No. 
29 
985, as amended, and/or the Omnibus System; local government units; and uniformed and 
30 
military personnel, shall be made exclusively by the Commission. 
17 


1 
SEC. 30. Other Functions and Powers of the Department. -- In addition to the 
2 
functions heretofore provided, the Department shall approve thc maintenance of existing, and 
3 
the creation of future jobs in government. 
4 
Notwitbstanding the provision of any law to the contrary, the job classification for all 
5 
jobs in the government, including, but not limited to, those in constitutionally fiscally 
6 
autonomous groups; whether or not exempt from the unified system under Presidential 
7 
Decree No. 985, as amended, and/or the Omnibus System; local government units; and 
8 
uniformed and military personnel, shall be subject to the evaluation and approval of the 
9 
Department. 
10 
SEC. 31. Periodic Review of the Omnibus System. - The Commission and the 
11 
Department shall jointly review the Omnibus System every three (3) years and recommend or 
12 
implement changes as may be necessary. However, in case of extraordinary circumstances, 
13 
such as major bureaucracy-wide reorganizations; or when government Base Pay rates are 
14 
below the market, in comparison with medium-sized private firms, by at least 40%; or when 
15 
there is a significant, sustained movement in the cost of living, then the Commission and 
16 
Department may review the Omnibus System earlier, with a view to addressing these issues 
17 
with dispatch. 
18 
ARTICLE VI 
19 
REPEAL AND AMENDMENT OF RELATED LAWS 
20 
SEC. 32. Sandiganbayan Jurisdiction, Local Government Code, and Other Laws 
21 
involving Salary Grades.- All provisions of laws, decrees, executive orders, corporate 
22 
charters, rules, regulations, circulars, approvals, and other issuances, or parts thereof 
23 
prescribing salary grades of government employees, including, without limitation, the 
24 
jurisdiction of the Sandiganbayan under Presidential Decree No. 1606, as amended, as well as 
25 
the salary grades of local government officials under the Local Government Code, or 
26 
Republic Act No. 7160, are hereby repealed. 
27 
The Salary Grade equivalent of such salary grades shall be jointly determined by the 
28 
Commission and the Department under the Omnibus System, using the results of the 
29 
evaluation of the Compensable Factors for each affected job. 
30 
SEC. 33. General Repealing and Amendatory Clause. - All laws, decrees, executive 
31 
orders, corporate charters, rules, regulations, circulars, approvals, and other issuances, or 
18 


1 
parts thereof inconsistent with the provisions of this Act arc hereby repealed, amended, or 
2 
modified accordingly. 
3 
ARTICLE VII 
4 
APPROPRIATIONS 
5 
SEC. 34. Appropriations. - (a) The amount necessary to implement the provisions of 
6 
this act shall be included in the annual General Appropriations Act. The Base Pay Schedule 
7 
in Section IS hereof shall be implemented in five (5) equal yearly tranches, [the amount of 
8 
which shall be included in the annual General Appropriations Act, after taking into 
9 
consideration the financial position of the National Government]. 
10 
(b) Local government units, except for those able to obtain an exemption from the 
11 
Commission and the Department, shall charge the implementation thereof to their respective 
12 
funds. 
13 
(c) It is understood that any staggered implementation of this Act shall be fixed at a 
14 
percentage uniformly and proportionately applied to all employees in such agency, such that 
15 
no employee shall receive a percentage adjustment higher than that of any other employee in 
16 
the same agency. 
17 
ARTICLE VIII 
18 
PENAL PROVISIONS AND CIVIL LIABILITY 
19 
SEC. 35. Prohibition against Additional Compensation. - (a) The grant of Base Pay, 
20 
Allowances and Other Pay, and Incentives in addition to those provided herein, or increases 
21 
thereof, except as herein provided, is prohibited. 
22 
(b) In order to preserve the independence and integrity of the Commission on Audit (COA), 
23 
its employees are prohibited from receiving salaries, allowances or other emoluments from 
24 
any agency, except those amounts paid directly by the COA out of its appropriations made 
25 
pursuant to this Act. 
26 
(c) Notwithstanding any law to the contrary, all agencies, including, without limitation, 
27 
Government-owned and controlled corporations and government financial institutions, local 
28 
government units, the Office of the Solicitor General, the Office of the Government 
29 
Corporate Counsel, and their success or agencies, are prohibited from assessing or billing 
30 
other agencies for services rendered by their employees as part of their regular functions, for 
31 
purposes of paying additional compensation to said employees. 
19 


1 
SEC. 36. Penal Provisions. - Without prejudice and in addition to the provisions of 
2 
Republic Act No. 3019, otherwise known as the "Anti-Graft and Corrupt Practices Act" and 
3 
other penal laws, public officers who commit any of the following acts shall suffer the 
4 
penalty of imprisonment of not less than six (6) years and one (I) day,. but not more than 
5 
fifteen (15) years: 
6 
(a) Granting, approving the grant, voting in favor of any decision granting or approving, or 
7 
who otherwise affirmatively participate in the grant or approval of -
8 
(i) Unauthorized increases in Base Pay: 
9 
(ii)Allowances and Other Pay, and Incentives other than those enumerated under 
10 
Sections 18 to 24; 
11 
(iii) Increases in the standard rates prescribed by the Department for Allowances and 
12 
Other Pay, and Incentives; and 
13 
(iv) Increases in retirement pay and other separation benefits in violation of Section 
14 
27; 
15 
(b) Granting, approving the grant, voting in favor of any decision granting or approving, or 
16 
who otherwise affirmatively participate in the grant or approval of Productivity Incentive, 
17 
CNA Incentive, and Other Benefits in violation of Section 30and/or rules and regulations 
18 
issued to implement Section 23; 
19 
(c) Soliciting additional compensation, for self or in behalf of other employees, from other 
20 
agencies for services rendered in performance of regular functions; and 
21 
(d) Offering to give or actually giving additional compensation to employees of other 
22 
agencies who render services in performance of regular functions, in violation of paragraphs 
23 
(a) and (b) of Section 26. 
24 
SEC. 37. Civil Liability. - A conviction under this Act or Republic Act NO.3019 shall 
25 
carry with it the civil liability to jointly and severally pay damages to the National 
26 
Government equivalent to the amount illegally disbursed. 
27 
ARTICLE IX 
28 
FINAL PROVISIONS 
29 
SEC. 38. Implementing Rules and Regulations. -
The Commission and the 
30 
Department shall, within ninety (90) days after the approval of this Act, jointly allocate all 
31 
jobs in the government to their appropriate job titles and Salary Grades, assign each 
32 
incumbent to the appropriate Step, and prepare and issue the necessary policy, rules, 
20 


1 
regulations, and guidelines to implement this Act. For this purpose, each agency covered by 
~. 
2 
the Omnibus System shall submit to the Commission and the Department within thirty (30) 
3 
days from the approval of this Act, all documents, data, and information necessary in the 
4 
classification of jobs in their appropriate Salary Grades and Step assignment of incumbents. 
5 
SEC. 39. Separability Clause. - If, for any reason, any section or provision of this 
6 
7 
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. 
8 
SEC. 40. Effectivity. - This Act shall take effect fifteen (15) days after its publication 
9 
in at the Official Gazette or in at least two publications of national circulation. 
Approved, 
21