FOURTEENTH CONGRESS OF THE REPUBLIC 
1 
OF THE PHILIPPINES 
1 1 ,J~L -2 
i’6 ;{ 
” 
First Regular Session 
1 
Senate Bill No. 54 1 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
After more than two (2) decades, the laws governing the creation of the 
Philippine Coast Guard, defining its functions and powers and prescribing penal 
provisions for its violation are already worth revisiting. 
Republic Act No. 5173, which was enacted on August 4, 1967, paved the 
way for the creation of the Coast Guard as a major unit of the Philippine Navy. 
After several years, .it was deemed necessary to organizationally modify the 
Philippine Coast Guard to enable it to discharge its functions more efficiently and 
effectively by consolidating functionally related activities of the Coast Guard into 
an integrated system to best promote safety of life and property at sea. Thus, on 
December 9, 1974, former President Marcos passed Presidential Decree No. 
601 to further improve the Philippine Coast Guard by placing it under the direct 
supervision and control of the Secretary of National Defense. 
The present circumstances now necessitate the establishment of the 
Philippine Coast Guard as an attached agency of the Department of 
Transportation and Communications (DOTC) so as to promote maritime safety in 
order to obviate if not minimize marine accidents, to enhance maritime safety, to 
safeguard the marine environment and to maintain and ensure peace and order 
in the archipelagic waters, territorial seas and exclusive economic zone. 
Moreover, under the proposed measure, the Philippine Coast Guard shall 
now adopt a new organizational, operational and command structure; define the 
personnel administration professionalism, welfare and benefits of its members; 
delineate the pay and allowances for uniformed personnel and define such other 
matters which will further improve the aforesaid agency. 
Thus, the immediate approval of this bill is earnestly sought. 
ANGGO~EJERCITO ESTRADA 
u s e n a t o r  


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FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
7 sJIJ[.’ 
-2 
PC; :i 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
ESTABLISHING THE PHILIPPINE COAST GUARD AS AN ATTACHED 
AGENCY 
TO 
THE 
DEPARTMENT 
OF 
TRANSPORTATION 
AND 
COMMUNICATIONS, FURTHER AMENDING REPUBLIC ACT NO. 5173 AND 
PRESIDENTIAL DECREE 601, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
CHAPTER I 
GENERAL PROVISIONS 
SECTION 1. Title - This Act shall be known and cited as the ”Philippine 
Coast Guard Act of 2007.” 
SEC 2. Declaration of Policies - The State recognizes its obligation to 
protect the marine wealth in its archipelagic waters, territorial seas, and exclusive 
economic zone, and therefore reserves the use and employment of the same to 
Filipino citizens. 
The Philippines needs a balanced and healthful marine ecology, which 
shall (a) assure a sustainable growth and development of its bountiful marine 
wealth and other resources; (b) encourage the growth and development of sea 
transportation as a primary and vital link of the various islands of the archipelago; 
and (c) promote ecotourism by projecting internationally the pristine beauty of its 
natural sceneries such as white beaches, and other tourist spots. 
To attain these objectives, the State reaffirms its obligation to protect the 
maritime environment and commits itself to the following: (a) promoting maritime 
safety in order to obviate if not minimize marine accidents; (b) enhancing 
maritime security; (c) safeguarding the marine environment; and (d) maintaining 
and ensuring peace and order in the archipelagic waters, territorial seas and 
exclusive economic zone. 
CHAPTER I1 
PHILIPPINE COAST GUARD AS ATTACHED AGENCY 
SEC 3. Establishment - The Philippine Coast Guard (PCG) is hereby 
established as a distinct, armed, uniformed, and seagoing service attached to the 
Department of Transportation and Communications. 


SEC 4. Powers and Functions - The PCG shall have the following 
functions: 
a) To enforce laws, promulgate and administer regulations for the 
promotion of safety of life and property within the maritime jurisdiction of the 
Philippines; 
b) To enforce laws, promulgate and administer rules and regulations for 
the promotion of the marine environment within the maritime jurisdiction of the 
Philippines; 
c) To render aid to distress persons and vessels and conduct search and 
rescue in case of marine accident or casualty within the maritime jurisdiction of 
the Philippines, including the high seas, in compliance with international maritime 
conventions; 
d) To enforce and assist in enforcement of fisheries laws, immigration law, 
tariff and customs laws, forestry laws, firearms and explosives laws, law on 
trafficking of women and children and all other applicable laws within the 
territorial waters of the Philippines; 
e) To enforce or assist in the maintenance of maritime security, prevent or 
suppress terrorism at sea and perform police function within the maritime 
jurisdiction of the Philippines. 
SEC. 5. Organization - The PCG shall remain a sea going, distinct, 
armed and uniformed commissioned service primarily responsible in enforcing 
this Act. Provided: That the PCG shall have the authority, whenever appropriate, 
to utilize by agreement, the personnel, services and facilities of other 
departments, agencies and instrumentalities. 
SEC 6. Composition -a) The PCG shall consist of the following 
(1) PCG officers 
(2) PCG enlisted personnel 
(3) PCG non-uniformed personnel 
(4) Probationary 2"d LUEnsign; and 
(5) Midshipmen/women 
categories of officers and employees: 
(b) There shall be a PCG Technical Service, herein established under Chapter 
11 1 A, Section 9 (d). 
SEC 7. Source of Uniformed Personnel - The PCG shall procure its 
uniformed personnel from the maritime schools, other colleges and universities to 
answer the peculiar needs of the organization until such time that the PCG 
Academy is established. 
SEC 8. PCG Trust Receipt - The PCG shall continue to collect fees, 
charges and fines, to include lighthouse dues, relevant to the exercise of its 
various regulatory functions, All income derived from collection of fees and 
charges and such other sources shall be retained and constituted as a Trust 
Receipt which shall be deposited in any authorized government depository bank, 
for the use of the PCG in the maintenance and repair of its assets such as but 


not limited to, vessels, aircrafts, navigational aids and lighthouses; Provided, 
That at least 30% will be used in the procurement and acquisition of 
communication and rescue equipment, armaments, ammunition, and as 
contingency fund for petroleum, oil and lubricants (POL) requirement during 
emergencies; Provided Further, That no amount of the said Trust Receipt shall 
be used for the payment of salaries and other allowances; Provided Furthermore, 
That the PCG and the Department of Budget And Management shall jointly issue 
guidelines for the implementation of this Section and the Trust Receipt shall be 
subject to accounting and auditing rules and regulations. 
CHAPTER Ill 
A. ORGANIZATIONAL, OPERATIONAL AND COMMAND STRUCTURE 
SEC 9. Organizational, Operational and Command Structure - 
a) The PCG shall consist of uniformed and non-uniformed personnel with 
defined Coast Guard Table of Organization and Equipment, specialties, ranks, 
ratings, and plantilla positions; Provided, That in times of war as declared by 
Congress, the PCG shall be attached to the Department of National Defense as 
a support agency of the Armed Forces of the Philippines. 
b) The PCG shall be headed by a commandant who shall carry the rank of 
Admiral. Provided, That the commandant shall be appointed by the President 
from among the Flag Officers in the Coast Guard active service. The 
commandant shall have a maximum term of three (3) years. A commandant who 
has served for three (3) years prior to his compulsory retirement shall be 
considered as retired entitled to all the benefits available to a coast guard officer 
as if he compulsorily retired. Provided Further, That in times of war or other 
national emergency declared by Congress, the President may extend his term of 
office. 
c) The PCG Commandant shall have the following functions: 
I. Advise the President or the Secretary of the DOTC on the 
promulgations of executive orders, rules and regulations, proclamations and 
other issuances relative to matters under the jurisdiction of the PCG; 
2. Establish policies and standards for the efficient and effective 
management and operation of the PCG; 
policies, plans, programs and projects of the PCG; 
4. Enter into contracts for the acquisition of floating air and sub-surface 
assets, real estate, communications equipment and other necessities relative to 
the performance of its powers and functions subject to the limitations of existing 
laws, rules and regulations; 
5. Receive grants and other forms of assistance from other countries in 
support of PCG continued development and modernization projects subject to 
existing laws; and 
6. Perform such other functions as may be provided by law or 
appropriately assigned by the President or the Secretary of the DOTC. 
3. Promulgate rules and regulations necessary to carry out the objectives, 


d) There shall be a PCG Technical Service to be composed of medical 
doctors, dentists, nurses, lawyers, veterinarians, chemists, marine biologists and 
chaplains, including personnel whose pre-entry required course are closely 
relatedlallied to the aforementioned professional group. Appointment of all PCG 
Technical Officers shall be in the initial rank of COAST GUARD ENSIGN except 
for the following field of occupational specialties: dentists and veterinarians 
whose initial appointment rank shall be COAST GUARD LIEUTENANT JUNIOR 
GRADE; and lawyers, medical doctors and chaplains whose initial appointment 
rank shall be COAST GUARD LIEUTENANT SENIOR GRADE. 
SEC I O .  Malor Units of the PCG - The PCG shall maintain its present 
organization, composed of a Headquarters and its Support Units, Coast Guard 
Districts, Coast Guard Stations, Detachments and Clearing Outposts, as well as 
the Coast Guard Operating Forces, Marine Environmental Protection Command, 
Coast Guard Education and Training Command, and Aids to Navigation 
Command. Provided, That it shall have the authority to reorganize, as it deems 
necessary to be responsive to the needs of the country and be able to carry out 
its mandate effectively and efficiently. 
B. PERSONNEL ADMINISTRATION, PROFESSIONALISM, WELFARE AND 
BENEFITS 
SEC 1 I. 
Appointment - 
a) Appointment of all PCG officers shall be approved by the President of 
the Republic of the Philippines through the Secretary of DOTC. No person shall 
be appointed as a PCG officer unless helshe is a holder of a baccalaureate 
degree, preferably a licensed professional, andlor a graduate of Service 
Academies. 
b) Appointments and promotions of all PCG enlisted personnel shall be 
c) Appointments and promotions of all non-uniformed personnel shall be in 
made by the Commandant of PCG. 
accordance with the Civil Service Law, rules and regulations. 
SEC 12. Promotion of P CG Officers - 
a) The Commandant of PCG shall recommend to the President, through 
the DOTC Secretary the promotion of PCG Officers who are best qualified for 
appointment to be submitted by the PCG Officers Selection and Promotion 
Board. Provided: That helshe must have completed the required schooling and 
training relevant to said gradeshank “in position”, and must have complied with 
the prescribed minimum time in grade based on approved PCG rules and 
regulations and other relevant law. Provided Furfhermore, That pendency of any 
administrative or criminal case before any court, body or tribunal shall be a bar 
for promotion. Provided Finally, That special or meritorious promotion shall be 
extended to any PCG Officer for acts of inconspicuous courage and gallantry 
involving risk of his life above and beyond the call of duty. 
b) Promotion of PCG Enlisted Personnel and Non-Uniformed Employees. 
The Commandant shall promote PCG enlisted personnel to the next higher rank 
based on the recommendation of the PCG Selection and Promotion Board for 
Enlisted Personnel. The promotion of non-uniformed employees shall be 


governed by Civil Service Law, rules and regulations. Provided, That no PCG 
Enlisted Personnel shall be eligible for promotion to the next higher rank position 
unless he had successfully passed a corresponding promotional examination. He 
must have completed the required schooling and training relevant to said 
position, and must have complied with the required minimum time in grade based 
on approved PCG rules and regulations and other relevant laws. Provided 
Further, that the pendency of any administrative, criminal or civil case before any 
court, body or tribunal shall be a bar for promotion or assignment. Provided 
Finally, that special or meritorious promotion shall be extended only to any PCG 
Enlisted Personnel for acts of inconspicuous courage and gallantry involving the 
risk of his life above and beyond the call of duty andlor outstanding achievement 
in the Coast Guard service as determined by the PCG Selection and Promotion 
Board. 
SEC 13. Retirement - Officers and enlisted personnel, who have attained 
the age of fifty-six (56) or has thirty (30) years of accumulated government 
service, whichever is later, shall be retired compulsorily from the service. 
Provided, That officers and enlisted personnel who has served at least twenty 
(20) years of satisfactory active service, shall be allowed to retire optionally, at 
his own request and with the approval of the President of the Philippines, and the 
Commandant, PCG, respectively, and shall be entitled to receive benefits 
provided by law. Their retirement benefits and pensions shall continue to be 
covered by the AFP Retirement Law until such time that the PCG is able to 
establish its own retirement system and develop health and welfare programs for 
its personnel. 
SEC 14. Separation - Officers and enlisted personnel who voluntarily 
resigns or otherwise failed to comply with the standards of competence and 
proficiency, shall be separated from the service under existing laws, rules and 
regulations. Provided, That PCG personnel who has served continuously for at 
least five (5) years and who is separated through no fault of his own or voluntarily 
resigns shall be entitled to a separation pay equivalent to one (1) month salary 
for every year of service in addition to the commutation of all the accumulated 
leaves to his credit. 
SEC 15. Retirement Benefits - Monthly retirement pay shall be sixty five 
percent (65%) of the base pay and longevity in case the retiree has rendered at 
least twenty (20) years of continuous active Coast Guard service increasing by 
two and one-half percent (2 1/2%) for every year of actual Coast Guard service 
rendered beyond the initial twenty (20) years of service and ninety percent (90%) 
for thirty six (36) years of active Coast Guard Service and over. Provided, That 
the retiree shall have the option to receive in advance the lump sum of his 
retirement equivalent to the first five (5) years of his retirement pay as it accrues: 
Provided Furfher, that the payment of the lump sum shall be made within six 
months from the effectivity date of 7 his retirement. Provided Finaly, that the 
retirement pay of all uniformed members shall be subject to the prevailing scale 
of base pay of members still in the active service. 
SEC 
16. 
Career 
Development 
(Education 
and 
Training) - 
Commissioned Officers appointed to the COAST GUARD Service shall undergo 
the required career and professional courses to ensure that they are 
professionally competent and, be qualified for the assignment following a certain 
career pattern. 


SEC 17. Assignmenf - Immediately after they are commissioned to the 
service, they shall be assigned in a position appropriate for the initial entrants. 
Provided That, individuals who have met the standards of the organization and 
accepted on a probationary basis, shall be primarily assigned with an office, unit 
or position needing his professional training and experience. Provided Further, 
that a skills inventory shall be undertaken in order to match the qualification, 
training and expertise of commissioned officer with their assignment, and to be 
made as a basis for the procurement of additional officers. 
C. DISCIPLINE AND ORDER 
SEC 18. Disciplinary Actions - In dispensing discipline and order among 
PCG officers and enlisted personnel, the PCG shall continue to adopt the Military 
Justice System in accordance with the provisions of C.A. 408 as amended with 
Commandant of the PCG as the convening authority, until such time that the 
PCG has adopted an appropriate justice system that shall govern the 
organization. 
CHAPTER IV 
PAY AND ALLOWANCES FOR UNIFORMED PERSONNEL 
SEC 19. Duty Hours - PCG personnel shall be on call 24-hours a day but 
are required to render minimum service of 8-hours a day except on scheduled 
duty or during red alert or national emergencies. 
SEC 20. Salary Scale - The PCG shall have a salary scale separate and 
distinct from other agencies of the government to attract the best and the 
competent in the Coast Guard Service. The salary scale shall be reviewed every 
three (3) years or depending on economic fluctuations necessitating progressive 
adjustments thereof. Provided, That all PCG uniformed personnel shall receive 
the same base pay, and other benefits as are now, or hereafter may be 
authorized corresponding to the salary scale of the personnel of the Department 
of Education or at par with other government agencies performing law 
enforcement functions, whichever is higher. 
SEC 21. Criteria for Salaries - PCG personnel’s salaries shall 
correspond to the following criteria: 
a. Salary shall ensure that the lowest in rank and position receives an 
amount which will enable him and his family to afford a reasonable and decent 
standard of living; and 
b. Basic monthly salary shall exclude the subsistence allowance, cost of 
living allowance, quarters allowance, clothing allowance, hazard pay, 
amelioration pay, health care pay and all other allowances as may be provided 
by existing laws. 
SEC 22. Cost of Living Allowance - PCG personnel’s salaries shall keep 
pace with the rise in the cost of living which shall automatically follow changes in 
cost-of-living index as determined by appropriate government agencies. 


SEC 23. Special Allowances - In areas wherein PCG personnel are 
exposed to hardship or other hazards usual to the performance of its mandated 
functions and established to be peculiar to any given area or place of 
assignment, as determined by the PCG, he shall be compensated with any of the 
following special allowances: 
a. Sea Duty Pay, PCG personnel performing actual duties on board PCG 
vessels shall be entitled to a sea duty of fifty percent (50%) of their basic monthly 
Pay. 
b. Instructor’s Duty Pay. PCG personnel performing duties, as an 
instructor shall be entitled to instructor duty pay of thirty-five percent (35%) of 
their basic monthly pay. 
c. Special Counsel Pay. PCG personnel performing duties that are within 
the definition of the term “Practice of Law” shall be entitled to Special Counsel 
Pay of Fifty Percent (50%) of their basic monthly pay. 
d. Aviation Duty Pay. PCG personnel performing actual duties with the 
Coast Guard Aviation Group shall be entitled to an Aviation Duty pay of fifty 
percent (50%) of their basic monthly pay. 
e. High Risk Duty Pay. PCG personnel performing actual duties which 
may be classified as high risk by his respective unit commanding officer and 
affirmed by the CPCG shall be entitled to a High Risk Duty pay of fifty percent 
(50%) of their basic monthly pay. 
f. Hazardous Duty Pay. PCG personnel performing duties which may be 
classified as hazardous by his respective unit commanding officer and affirmed 
by the CPCG shall be entitled to a Hazardous Duty Pay of fifty percent (50%) of 
their basic monthly pay. 
SEC 24. Other Allowances - In addition to the basic monthly salary, PCG 
uniformed personnel shall be entitled to subsistence allowance, quarters 
allowance, clothing allowance, additional compensation allowance; personnel 
emergency relief allowance, health care allowance, hazard pay, laundry 
allowance and other allowances as may be provided for by law. 
SEC 25. Longevity fay - PCG personnel shall be entitled to a longevity 
pay of ten percent (10%) of their basic month pay for every five (5) years of 
service in the government, which shall be computed from the date of the 
member’s first appointment in the government service: Provided That the 
maximum longevity pay shall not exceed fifty percent (50%) of the basic monthly 
Pay. 
SEC 26. Educational Benefits - The PCG shall formulate plans to 
improve the educational qualifications of PCG personnel and their dependents in 
accordance with existing laws, rules and regulations andlor in the absence of 
said laws, rules and regulations shall recommend to legislative bodies the 
enactment thereof. 
SEC 27. Housing Assistance Program- The PCG, in coordination with 
appropriate government agencies shall establish a special housing assistance 


program for PCG personnel with the objective of ensuring that every personnel 
has a dwelling that is structurally sound, environmentally safe, affordable and 
located in a wholesome community. The PCG shall likewise be part of and be 
covered by any housing program of the National Housing Authority. 
SEC 28. Compensation for Physical and Mental Disability Sustained 
in the Course f a y  - PCG personnel shall be protected against the 
consequences of employment injuries. Physical and psychological stresses on 
the member's health are recognized as compensable occupational diseases, in 
accordance with existing laws. 
SEC 29. Permanent Physical Disability - A uniformed member who 
incurs a total permanent disability in the line of duty and has rendered a total of 
twenty (20) years of continuous active duty in the Coast Guard service shall be 
compulsorily retired. Provided, That upon his compulsory retirement, he shall be 
entitled to a retirement pay pursuant to Section 15 of this Act. 
SEC 30. Disability Benefits - Any member and his dependents shall be 
entitled to all benefits relative to the member's permanent incapacity, as may be 
provided for under this Act or existing laws. 
SEC 31. Leaves - In addition to leave privileges enjoyed under existing 
laws, PCG personnel shall also be entitled to the following: 
a. Study leave, with pay not exceeding two (2) years, Provided, That no 
grantee shall be allowed to accumulate more than two (2) years of study leave 
except when he needs an extra semester to complete and defend his thesis for a 
graduate study in degree relevant to his being a member of the Coast Guard 
service. 
b. An indefinite leave of sick absence which shall be granted to an ailing 
member whose medical treatment requires more than one (1) year of continued 
treatment. 
Leave with pay shall be chargeable against his leave credits. Leave 
without pay shall not be granted whenever the personnel has leave with pay to 
his credit. 
Leave shall accumulate and any part thereof which may not be taken 
within the calendar year earned may be carried over the succeeding years. 
Whenever uniformed personnel retires, voluntarily resigns or is allowed to resign 
or is separated from the service through no fault of his own, he shall be entitled 
to the commutation of all the accumulated leaves to his credit. 
SEC 32. Exemption from Attachment and Taxes - All benefits granted 
by this Act, including benefits received from any government insurance 
agencies/corporations, shall not be subject to attachment, levy, execution or any 
tax of whatever nature. 


CHAPTER V 
TRANSITORY PROVISIONS 
SEC 33. PCG Reserve Force - There is hereby created a PCG Reserve 
Force in support of active component of the PCG to augment the same upon 
mobilization in times of war and national emergencies arising from calamities, 
disasters including relief and rescue operations and other activities requiring civil 
assistance. Recall authority is vested to the Secretary, DOTC and to the 
President of the Philippines. 
SEC 34. Organization of PCG Authority - The PCG may organize and 
train a civilian volunteer organization known as the PCG Auxiliary, under the 
direct control and supervision of the Commandant or any other officer designated 
by him for the purpose of assisting in the promotion of safety of life at sea, the 
preservation of the marine environment and its resources, the conduct of 
maritime search and rescue, and the maintenance of aids or navigation and such 
other activities that enhance maritime community relations which include civic 
action, youth development and related activities. 
CHAPTER VI 
FINAL PROVISIONS 
SEC 35. Appropriafions - The existing budget of the PCG provided for in 
the Annual General Appropriations Act shall remain as is without any additional 
amount. Provided, That the Philippine Coast Guard shall prepare its own budget 
as Key Budgetary Unit (KBU) being an attached agency of the Department of 
Transportation and Communications. 
SEC 36. lmplementing Rules and Regulations - Within ninety (90) days 
from the effectivity of this Act, the Secretary shall promulgate rules and 
regulations necessary to ensure the effective implementation of this Act. 
SEC 37. Separability Clause - If any portion or provision of this Act is 
declared unconstitutional, the same shall not affect the validity and effectivity of 
the other provisions not affected thereby. 
SEC 38. Repealing Clause - All laws, decrees, executive orders, rules 
and regulations and other issuances or parts thereof which are inconsistent with 
this Act are hereby repealed, amended, or modified accordingly. 
SEC 39. Effectivity - This Act shall take effect fifteen (15) days following 
its publication in two (2) national newspapers of general circulation. 
Approved,