FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
Introduced by Senator Loren Legarda 
EXPLANATORY NOTE 
There is no doubt that the country's economy is experiencing serious set-backs 
for the past few months. Just the previous year, the economy enjoyed a growth of 7.3 
percent - a pale comparison to this year's forecast of 5.7 percent - with the inflation rate 
maintained within the manageable limit of 2 to 4 percent. Now, inflation rate is 
projected to reach double-digit levels within the year. 
Global spiralling of the prices of overhead commodities such as oil triggered the 
concomitant increase in the prices of other goods resulting in a very high inflation rate, 
especially in a country like ours that is very much dependent on imported oil. Food 
security also poses as a problem; supply of the same has been dwindling due to the 
adverse effects of climate change such as extreme weather conditions' and changed 
climate patterns, thus the raise in its prices as well. 
There is therefore a necessity to help the average Filipino cope with the trying 
times. Moreover, assistance should be lent to those who work in the public sector, 
considering that salaries of government employees, bound by the Compensation and 
Position Classification Act (Republic Act No. 6758), are notably less than their private 
sector counterparts. 
This bill proposes to increase the basic salary of all government employees 
whose positions are covered by R.A. 6758 by fifteen percent (15%). Sources of funding 
shall come from the: 
1. Miscellaneous Personnel Benefits Fund and/or appropriate funds under 
the 2008 General Appropriations Act (Republic Act No. 9498) for National 
Government Agencies, and amounts needed, thereafter, shall be included 
in the annual General Appropriations Act; 
2. Respective corporate funds for government-owned and controlled 
corporations and government financial institutions; and 
3. Respective local funds for the local government units. 
However, consistent with the constitutional provision, salary increase of 
incumbent constitutional officials such as the President, Vice-president, and Senators 
and Members of the House of Representatives shall only take effect after the expiration 
of their respective terms. 


The enactment of this measure will provide support to our public servants, 
whose services are crucial in the daily business of the government. Their loyalty in our 
country merits the much-needed cushion that this bill offers, especially in this time of 
economic difficulty. 
In view of the foregoing, the passage of this bill is earnestly sought. 
Senator 


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FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
Introduced by Senator Loren Legarda 
AN ACT 
AUTHORIZING COMPENSATION ADJUSTMENTS TO NATIONAL 
GOVERNMENT PERSONNEL 
Be it enacted by tlz Senate and House of Representatives of tlze Philippines in Congress assembled: 
SECTION 1. Compensation Adjustments. - The basic salary of all national 
government employees whose positions are covered by the Compensation and Position 
Classification System under Republic Act No. 6758, as amended, is hereby increased by 
fifteen percent (15%) effective May 1,2008. 
SEC. 2. Coverage - The fifteen percent (15%) salary increase authorized herein 
shall cover civilian officials and employees of national government agencies (NGAs), 
including military personnel of the Armed Forces of the Philippines and all uniformed 
personnel under the Department of Interior and Local Government, the Philippine 
Coast Guard and the National Mapping and Resource Information Authority, state 
universities and colleges, government-owned and/or-controlled corporations (GOCCs), 
government financial institutions (GFIs) and local government units (LGUs) which are 
covered by the Compensation and Position Classification System under Republic Act 
No. 6758, as amended. 
Government agencies which are exempted by law from the coverage of Republic 
Act NO. 6758, as amended, shall not be entitled to the compensation adjustments 
authorized herein. 
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SEC. 3. Funding Source - The amounts necessary to implement the compensation 
adjustments authorized herein shall be sourced as follows: 
(a) For NGAs, the amount shall be charged against the Miscellaneous Personnel 
Benefits Fund and/or other appropriate funds under Republic Act No. 9498, 
otherwise known as the FY 2008 General Appropriations Act. Thereafter, such 
amounts as are needed shall be included in the annual General Appropriations 
Act; 
(b) For GOCCs and GFIs, the amount shall be taken from their respective corporate 
funds; and 
(c) For LGUs, the amount shall come from their respective local funds. 
SEC. 4. Uniform Percentage Increase in Case oflnsufficiency of Funds - GOCCs, 
GFIs and LGUs which do not have adequate or sufficient funds to pay compensation 
adjustments authorized herein shall only partially implement the adjusted rates: 
Provided, That any partial implementation shall be at uniform percentage increase for all 
positions. 
SEC. 5. Allowances and Benefits Based on a Percentage of the Basic Salary of 
Civilian Personnel - Except for the year-end bonus and fixed personnel benefit 
contributions, there shall be no corresponding increase in the present allowances and 
benefits being received by or paid for civilian government personnel which are 
computed at a percentage of their basic salaries, notwithstanding the fifteen percent 
(15%) salary increase authorized herein. 
SEC. 6. Waiver of the Personal Semices Limitation Under Republic Act No. 7160 
- The provision on personal services limitation in the LGU budgets under Republic Act 
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No. 7160 or the Local Government Code of 1991 shall be waived to the extent necessary 
in implementing the increases authorized in this Act. 
SEC. 7. Applicability to Certain Constitutional Officials - The salary increase 
authorized herein for the President, Vice-President, Senators and Members of the House 
of Representatives shall take effect only after the expiration of the respective terms of 
office of the incumbent officials, pursuant to Section 10 of Article VI and Section 6 of 
Article VI1 of the 1987 Constitution. 
SEC 8. Implementing Rules and Regulations - The Department of Budget and 
Management shall prepare and issue the necessary rules and regulations to implement 
the provisions of this Act. 
SEC 9. Effectivity - The compensation adjustments authorized herein shall take 
effect on May 1,2008. 
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Approved, 
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