SEVENTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
)
Second Regular Session 
)
SENATE
S. No. 1557
ci l i t .- .'S *  uit,up
*17 
AUG 16 
All :41
(In Substitution of Senate Bill Nos. 13, 90, 998 anf-J^pIO) _
Prepared jointly by the Committees on Civil Service Government Reorganization and 
Professional Regulation; National Defense and Security; and Finance with Senators Franklin 
M. Drilon, Antonio “Sonny” F. Trillanes IV, Loren B. Legarda, Sonny Angara and Gregorio
B. Honasan II as authors
AN ACT
MODIFYING THE SALARY SCHEDULE FOR CIVILIAN GOVERNMENT 
PERSONNEL AND AUTHORIZING THE GRANT OF ADDITIONAL BENEFITS 
FOR BOTH CIVILIAN AND MILITARY AND UNIFORMED PERSONNEL
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
1 
SECTION 1. Compensation Adjustment Strategy - To ensure that the compensation
2 
structure of government personnel is comparable with the prevailing rates in the private
3 
sector thereby attracting and retaining competent and committed civil servants, the existing
4 
Compensation and Position Classification System (CPCS) is hereby revised or updated to
5 
conform with the following:
6 
a) Raise the minimum salary for Salary Grade 1 from the current rate of Nine Thousand
7 
Pesos (P9,000) to Eleven Thousand Sixty Eight Pesos (PI 1,068) to make it even more
8 
competitive with the market rates;
9 
b) Bring the compensation of government personnel closer to their private counterparts
10 
to at least 70% of the median of the market for all salary grades;
11 
c) Eliminate overlaps in between salary grade allocations of government personnel to
12 
recognize differences in duties and responsibilities of the positions;
13 
d) Maximize the net take home pay of government personnel through the inclusion of
14 
additional benefits; and


1 
e) Strengthen the performance-based incentive system in recognition of government
2 
personnel who play a greater role and carry a heavier responsibility in attaining
3 
performance targets and delivering results.
4 
For the military and uniformed personnel (MUP), the compensation adjustment
5 
strategy shall be aligned with the objective of mitigating the fiscal crisis building up in their
6 
pension system and pursuing the pension reform.
7 
SEC. 2. Coverage -  The modified Salary Schedule authorized herein shall apply to all
8 
civilian personnel in the Executive, Legislative and Judicial Branches, Constitutional
9 
Commissions 
and 
other 
Constitutional 
Offices, 
Government-Owned 
or Controlled
10 
Corporations (GOCCs) not covered by RA No. 10149, and local government units (LGUs);
11 
regardless of appointment status, whether regular, contractual or casual; appointive or
12 
elective; and on full-time or part-time basis.
13 
The new Provisional Allowance Schedule and the Officers’ Allowance shall apply
14 
only to the military personnel of the Department of National Defense (DND) and the
15 
uniformed personnel of the Department of the Interior and Local Government (DILG), the
16 
Philippine Coast Guard (PCG) and the National Mapping and Resource Information
17 
Authority (NAMRIA).
18 
The Mid-Year Bonus, Enhanced Performance-Based Bonus (PBB), and Productivity
19 
Enhancement Incentive provided herein shall apply to both civilian personnel, and MUP,
20 
except for the increase in Hazard Pay which applies only to the MUP.
21 
However, individuals whose services are engaged through Job orders, contracts of
22 
service, consultancy contracts, and service contracts with no employer-employee relationship
23 
are excluded from the salary increase and benefits authorized herein.
24 
SEC. 3. Modified Salary Schedule, including Step Increments -  The modified Salary
25 
Schedule for Civilian Personnel, to be implemented in four (4) tranches, shall be as follows:


First Tranche
Salary
Grade
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Step 8
1
9,478
9,568
9,660
9,753
9,846
9,949
10,036
10,132
2
10,159
10,255
10,351
10,449
10,547
10,647
10,747
10,848
3
10,883
10,985
11,089
11,193
11,298
11,405
11,512
11,621
4
11,658
11,767
11,878
11,990
12,103
12,217
12,333
12,448
5
12,488
12,644
12,725
12,844
12,965
13,087
13,211
13,335
6
13,378
13,504
13,630
13,759
13,889
14,020
14,152
14,285
7
14,331
14,466
14,602
14,740
14,878
15,018
15,159
15,303
8
15,368
15,519
15,670
15,823
15,978
16,133
16,291
16,450
9
16,512
16,671
16,830
16,992
17,155
17,319
17,485
17,653
10
17,730
17,900
18,071
18,245
18,420
18,634
18,775
18,955
11
19,077
19,286
19,496
19,709
19,925
20,142
20,362
20,585
12
20,651
20,870
21,091
21,315
21,540
21,769
21,999
22,232
13
22,328
22,564
22,804
23,045
23,289
23,536
23,786
24,037
14
24,141
24,396
24,655
24,916
25,180
25,447
25,717
25,989
15
26,192
26,489
26,790
27,094
27,401
27,712
28,027
28,344
16
28,417
28,740
29,066
29,396
29,729
30,066
30,408
30,752
17
30,831
31,183
31,536
31,893
32,255
32,622
32,991
33,366
18
33,452
33,831
34,215
34,603
34,996
35,393
35,795
36,201
19
36,409
36,857
37,312
37,771
38,237
38,709
39,186
39,670


20
39,768
40,259
40,755
41,258
41,766
42,281
42,802
43,330
21
43,439
43,974
44,517
45,066
45,621
46,183
46,753
47,329
22
47,448
48,032
48,625
49,224
49,831
50,445
51,067
51,697
23
51,826
52,466
53,112
53,767
54,430
55,101
55,781
56,468
24
56,610
57,308
58,014
58,730
59,453
60,187
60,928
61,679
25
61,971
62,735
63,508
64,291
65,083
65,885
66,698
67,520
26
67,690
68,524
69,369
70,224
71,090
71,967
72,855
73,751
27
73,937
74,849
75,771
76,705
77,651
78,608
79,577
80,567
28
80,760
81,756
82,764
83,784
84,817
85,862
86,921
87,993
29
88,214
89,301
90,402
91,516
92,644
93,786
94,943
96,113
30
96,354
97,543
98,745
99,962
101,195
102,442
103,705
104,984
31
117,086
118,623
120,180
121,758
123,356
124,975
126,616
128,278
32
135,376
137,174
138,996
140,843
142,714
144,610
146,531
148,478
33
160,924
165,752
Second Tranche
Salary
Grade
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Step 8
1
9,981
10,072
10,165
10,258
10,352
10,453
10,543
10,640
2
10,667
10,761
10,856
10,952
11,049
11,147
11,245
11,345
3
11,387
11,488
11,589
11,691
11,795
11,899
12,004
12,110


4
12,155
12,262
12,371
12,480
12,591
12,702
12,814
12,927
5
12,975
13,117
13,206
13,322
13,440
13,559
13,679
13,799
6
13,851
13,973
14,096
14,221
14,347
14,474
14,602
14,731
7
14,785
14,916
15,048
15,181
15,315
15,450
15,587
15,725
8
15,818
15,969
16,121
16,275
16,430
16,586
16,744
16,903
9
16,986
17,142
17,299
17,458
17,618
17,780
17,943
18,108
10
18,217
18,385
18,553
18,724
18,896
19,095
19,244
19,421
11
19,620
19,853
20,088
20,326
20,567
20,811
21,058
21,307
12
21,387
21,626
21,868
22,113
22,361
22,611
22,864
23,120
13
23,257
23,517
23,780
24,047
24,315
24,587
24,863
25,141
14
25,290
25,573
25,859
26,149
26,441
26,737
27,036
27,339
15
27,565
27,887
28,214
28,544
28,877
29,214
29,557
29,902
16
30,044
30,396
30,751
31,111
31,474
31,843
32,215
32,592
17
32,747
33,131
33,518
33,909
34,306
34,707
35,113
35,524
18
35,693
36,111
36,532
36,960
37,392
37,829
38,272
38,719
19
39,151
39,685
40,227
40,776
41,333
41,898
42,470
43,051
20
43,250
43,841
44,440
45,047
45,662
46,285-
46,917
47,559
21
47,779
48,432
49,094
49,764
50,443
51,132
51,831
52,539
22
52,783
53,503
54,234
54,975
55,726
56,487
57,258
58,040
23
58,310
59,106
59,913
60,732
61,561
62,402
63,255
64,118
24
64,416
65,296
66,187
67,092
68,008
68,937
69,878
70,832
25
71,476
72,452
73,441
74,444
75,461
76,491
77,536
78,595


26
78,960
80,039
81,132
82,240
83,363
84,502
85,657
86,825
27
87,229
88,420
89,628
90,852
92,093
93,351
94,625
95,925
28
96,363
97,679
99,013
100,366
101,736
103,126
104,534
105,962
29
106,454
107,908
109,382
110,875
112,390
113,925
115,481
117,058
30
117,601
119,208
120,836
122,486
124,159
125,855
127,573
129,316
31
152,325
154,649
157,008
159,404
161,836
164,305
166,812
169,357
32
177,929
180,700
183,513
186,372
189,274
192,221
195,215
198,255
33
215,804
222,278
Third Tranche
Salary
Grade
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Step 8
1
10,510
10,602
10,695
10,789
10,884
10,982
11,076
11,173
2
11,200
11,293
11,386
11,480
11,575
11,671
11,767
11,864
3
11,914
12,013
12,112
12,212
12,313
12,414
12,517
12,620
4
12,674
12,778
12,884
12,990
13,097
13,206
13,315
13,424
5
13,481
13,606
13,705
13,818
13,932
14,047
14,163
14,280
6
14,340
14,459
14,578
14,699
14,820
14,942
15,066
15,190
7
15,254
15,380
15,507
15,635
15,765
15,895-
16,026
16,158
8
16,282
16,433
16,585
16,739
16,895
17,051
17,209
17,369
9
17,473
17,627
17,781
17,937
18,095
18,253
18,413
18,575


10
18,718
18,883
19,048
19,215
19,384
19,567
19,725
19,898
11
20,179
20,437
20,698
20,963
21,231
21,502
21,777
22,055
12
22,149
22,410
22,674
22,942
23,212
23,486
23,763
24,043
13
24,224
24,510
24,799
25,091
25,387
25,686.
25,989
26,296
14
26,494
26,806
27,122
27,442
27,766
28,093
28,424
28,759
15
29,010
29,359
29,713
30,071
30,432
30,799
31,170
31,545
16
31,765
32,147
32,535
32,926
33,323
33,724
34,130
34,541
17
34,781
35,201
35,624
36,053
36,487
36,927
37,371
37,821
18
38,085
38,543
39,007
39,477
39,952
40,433
40,920
41,413
19
42,099
42,730
43,371
44,020
44,680
45,350
46,030
46,720
20
47,037
47,742
48,457
49,184
49,921
50,669
51,428
52,199
21
52,554
53,341
54,141
54,952
55,776
56,612
57,460
58,322
22
58,717
59,597
60,491
61,397
62,318
63,252
64,200
65,162
23
65,604
66,587
67,585
68,598
69,627
70,670
71,730
72,805
24
73,299
74,397
75,512
76,644
77,793
78,959.
80,143
81,344
25
82,439
83,674
84,928
86,201
87,493
88,805
90,136
91,487
26
92,108
93,488
94,889
96,312
97,755
99,221
100,708
102,217
27
102,910
104,453
106,019
107,608
109,221
110,858
112,519
114,210
28
114,981
116,704
118,453
120,229
122.031
123,860
125,716
127,601
29
128,467
130,392
132,346
134,330
136,343
138,387
140,461
142,566
30
143,534
145,685
147,869
150,085
152,335
154,618
156,935
159,288
31
198,168
201,615
205,121
208,689
212,318
216,011
219,768
223,590


32
233,857
238,035
242,288
246,618
251,024
255,509
260,074
264,721
33
289,401
298,083
Fourth Tranche
Salary
Grade
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Step 8
1
11,068
11,160
11,254
11,348
11,443
11,538
11,635
11,732
2
11,761
11,851
11,942
12,034
12,126
12,219
12,313
12,407
3
12,466
12,562
12,658
12,756
12,854
12,952
13,052
13,152
4
13,214
13,316
13,418
13,521
13,625
13,729
13,835
13,941
5
14,007
14,115
14,223
14,332
14,442
14,553
14,665
14,777
6
14,847
14,961
15,076
15,192
15,309
15,426
15,545
15,664
7
15,738
15,859
15,981
16,104
16,227
16,352.
16,477
16,604
8
16,758
16,910
17,063
17,217
17,372
17,529
17,688
17,848
9
17,975
18,125
18,277
18,430
18,584
18,739
18,896
19,054
10
19,233
19,394
19,556
19,720
19,884
20,051
20,218
20,387
11
20,754
21,038
21,327
21,619
21,915
22,216'
22,520
22,829
12
22,938
23,222
23,510
23,801
24,096
24,395
24,697
25,003
13
25,232
25,545
25,861
26,181
26,506
26,834
27,166
27,503
14
27,755
28,099
28,447
28,800
29,156
29,517
29,883
30,253
15
30,531
30,909
31,292
31,680
32,072
32,469
32,871
33,279
16
33,584
34,000
34,421
34,847
35,279
35,716
36,159
36,606


17
36,942
37,400
37,863
38,332
38,807
39,288
39,774
40,267
18
40,637
41,140
41,650
42,165
42,688
43,217
43,752
44,294
19
45,269
46,008
46,759
47,522
48,298
49,086
49,888
50,702
20
51,155
51,989
52,838
53,700
54,577
55,468
56,373
57,293
21
57,805
58,748
59,707
60,681
61,672
62,678
63,701
64,741
22
65,319
66,385
67,469
68,570
69,689
70,827
71,983
73,157
23
73,811
75,015
76,240
77,484
78,749
80,034
81,340
82,668
24
83,406
84,767
86,151
87,557
88,986
90,439
91,915
93,415
25
95,083
96,635
98,212
99,815
101,444
103,100
104,783
106,493
26
107,444
109,197
110,980
112,791
114,632
116,503
118,404
120,337
27
121,411
123,393
125,407
127,454
129,534
131,648
133,797
135,981
28
137,195
139,434
141,710
144,023
146,373
148,763
151,191
153,658
29
155,030
157,561
160,132
162,746
165,402
168,102
170,845
173,634
30
175,184
178,043
180,949
183,903
186,904
189,955
193,055
196,206
31
257,809
262,844
267,978
273,212
278,549
283,989
289,536
295,191
32
307,365
313,564
319,887
326,338
332,919
339,633
346,483
353,470
33
388,096
399,739
1
2 
SEC. 4. Mid-Year Bonus - Beginning FY 2016, a Mid-Year Bonus equivalent to one
3 
(1) month basic salary as of May 15, shall be granted to those who have rendered at least four
4 
(4) months of satisfactory service and are still in the service as of same date, to be given not
5 
earlier than May 15 of every year. This shall be in addition to the Standard Allowances and
6 
Benefits under the Total Compensation Framework embodied in the Congress Joint
9


1 
Resolution No. 4 (s. 2009). The existing Year-End Bonus equivalent to one (1) month basic
2 
salary and Cash Gift at prescribed rates shall be given in November of every year.
3 
SEC. 5. Enhanced Performance-Based Bonus - The existing PBB granted to
4 
qualified government personnel, including those in LGUs, shall be enhanced to strengthen its
5 
results orientation, to be given in an amount equivalent to one (1) month basic salary up to
6 
two (2) months basic salary, to be implemented in two (2) phases starting in FY 2017. The
7 
PBB shall be subject to the achievement by departments or agencies, including LGUs and
8 
individual employees of their performance targets or commitments and compliance with good
9 
governance and other conditions.
10 
The grant of the enhanced PBB shall be based on a progressive rate system. As the
11 
position and responsibility in improving agency performance becomes higher, so is the
12 
amount of PBB.
13 
The Inter-Agency Task Force on the Harmonization of National Government
14 
Performance Monitoring, Information and Reporting Systems created under Administrative
15 
Order No. 25 (s. 2011) shall prescribe the conditions on eligibility and procedures for the
16 
grant of the enhanced PBB, including the ranking system to recognize differences in levels of
17 
performance.
18 
SEC. 6. Productivity Enhancement Incentive -  Beginning FY 2016, the Productivity
19 
Enhancement Incentive shall be given not earlier than December 15 of every year to all
20 
qualified government employees at Five Thousand Pesos (P5,000) each for the purpose of
21 
improving the government employees’ productivity.
22 
SEC. 7. Provisional Allowance Schedule for Military and Uniformed Personnel -  A
23 
monthly Provisional Allowance shall be given to the MUP to be implemented in four (4)
24 
tranches, as follows, in lieu of increases in base pay:
25
10


DND
D ILG
PCG
N A M RIA
M onthly Provisional Allowance
B JM P  and 
BFP
PN P and PPSC
F irst
T ran ch e
Second
T ran ch e
T h ird
T ranche
F ourth
T ranche
Candidate/Soldier
267
547
842
1,149
Private
Fire/Jail Officer 
1
Police Officer I
Apprentice 
Seaman/ 
Seaman 
Third Class
Apprentice 
Seam an/ 
Seaman Third 
Class
342
700
1,071
1,457
Private First 
Class
Seaman 
Second Class
Seaman 
Second Class
514
1,050
1,612
2,199
Corporal
Fire/Jail Officer 
II
Police Officer II
Seaman First 
Class
Seaman First 
Class
673
1,378
2,120
2,899
Sergeant
Petty Officer 
III
Petty Officer 
III
836
1,718
2,650
3,633
S taff Sergeant
Fire/Jail Officer 
III
Police Officer 
III
Petty Officer 
II
Petty Officer 
II
992
2,043
3,157
4,339
Technical
Sergeant
Petty Officer 
I
Petty Officer 
I
1.196
2,471
3,826
5,268
M aster Sergeant
Senior Fire/Jail 
Officer 1
Senior Police 
Officer I
C hief Petty 
Officer
C hief Petty 
Officer
1,429
2,954
4,584
6,325
Senior Master 
Sergeant
Senior Fire/ Jail 
Officer II
Senior Police 
Officer II
Senior Chief 
Petty Officer
Senior C hief 
Petty Officer
1,688
3,500
5,442
7,525
C hief M aster 
Sergeant
Senior Fire/Jail 
Officer III
Senior Police 
Officer III
M aster C hief 
Petty Officer
M aster C hief 
Petty Officer
2,081
4,331
6,760
9,384
First C hief 
M aster Sergeant
Senior Fire/Jail 
Officer IV
Senior Police 
Officer IV
First Master 
C hief Petty 
Officer
First M aster 
C hief Petty 
Officer
2,651
5,547
8,711
12,165
Cadet
Cadet
Cadet
2,651
5,547
8,711
12,165
Probationary
Second
2,651
5,547
8,711
12,165
11


Lieutenant
Second
Lieutenant
Ensign
Ensign
3,341
7,030
11,104
15,598
First
Lieutenant
Inspector
Inspector
Lieutenant 
Junior Grade
Lieutenant 
Junior Grade
4,092
8,661
13,761
19,452
Captain
Senior Inspector Senior Inspector
Lieutenant
Senior
Grade
Lieutenant 
Senior Grade
5,003
10,652
17,026
24,215
M ajor
C hief Inspector
C hief Inspector
Lieutenant
Commander
Lieutenant
Com m ander
5,853
12,533
20,156
28,849
Lieutenant
Colonel
Superintendent
Superintendent
Com m ander
Com m ander
7,061
15,228
24,671
35,584
Colonel
Senior
Superintendent
Senior
Superintendent
Captain
Captain
8,304
18,016
29,370
42,639
Brigadier
General
C hief
Superintendent
C hief
Superintendent
Commodore
Com m odore
9,708
21,189
34,760
50,799
M ajor General
Director
Director
Rear Admiral
Rear
Admiral
10,679
24,795
40,935
60,222
Vice Admiral
Vice Admiral
11,747
28,198
46,594
68,713
Lieutenant
General
Deputy Director 
General
Admiral
Admiral
12,922
31,221
51,873
76,825
General
Director General
14,214
35,260
63,977
95,399
2 
The Provisional Allowance shall be given as an interim measure to supplement the total
3 
compensation of MUP until such time that their Base Pay Schedule is rationalized in
4 
consideration of the pension implications of base pay adjustment of personnel in the active
5 
service under existing laws.
12


1 
SEC. 8. Hazard Pay - The Hazard Pay of all military and uniformed personnel shall
2 
be increased from the current rate of Two Hundred Forty Pesos (P240) per month to the
3 
following rates:
4 
a) Starting January 1, 2016, Three Hundred Ninety Pesos (P390) per month;
5 
b) By January 1, 2017, Five Hundred Forty Pesos (P540) per month;
6 
c) By January 1, 2018, Six Hundred Ninety Pesos (P690) per month; and
7 
d) By January 1, 2019, Eight Hundred Forty Pesos (P840) per month.
8 
SEC. 9 Officers' Allowance - An Officers’ Allowance shall be given to the following
9 
MUP ranks, likewise as an interim measure until such time that the Base Pay Schedule is 
10 
modified and rationalized, at the rates below:
D M )
D ILG
PC G
N A M R IA
M onthly OfTicers’ A llow ance
B JM P  and 
BFP
PN P and PPSC
F irst
T ran ch e
Second
T ran ch e
T h ird
T ranche
F ourth
T ranche
Captain
Senior Inspector Senior Inspector
Lieutenant 
Senior Grade
Lieutenant 
Senior Grade
1,000
3,000
4,500
7,000
Major
C hief Inspector
C hief Inspector
Lieutenant
Commander
Lieutenant
Commander
1,500
4,500
6,500
11,000
Lieutenant
Colonel
Superintendent
Superintendent
Commander
Com m ander
2,000
6,000
8,500
13,000
Colonel
Senior
Superintendent
Senior
Superintendent
Captain
Captain
3,000
7,500
10,500
15,000
Brigadier
General
C hief
Superintendent
C hief
Superintendent
Commodore
Commodore
4,000
9,000
12,500
17,000
Major
General
Director
Director
Rear Admiral
Rear Admiral
5,000
10,500
15,000
20,000
Vice Admiral
Vice Admiral
6,000
12,000
18,000
25,000
Lieutenant
General
Deputy Director 
General
Admiral
Admiral
7,000
13,000
21,000
30,000
13


General
Director General
9,000
18,000
25,000
35,000
1
2 
SEC. 10. Compensation Adjustment for LGU Personnel - The modified Salary
3 
Schedule and additional benefits authorized herein for eivilian personnel may likewise be
4 
granted to LGU personnel, subject to the following:
5 
a) Authorization from their respective sanggunian as provided under Sections 447(a),
6 
458(a) and 468(a) of RA No. 7160; and
7 
b) Compliance with the Personnel Services (PS) limitation set under Sections 325 and
8 
331 of RA No. 7160.
9 
LGUs shall likewise comply with the following rules in the implementation of the
10 
modified salary schedule and grant of additional benefits:
11 
a) The implementation of the modified Salary Schedule for LGU personnel, including
12 
the rate of Representation and Transportation Allowances, shall further correspond to
13 
the LGU’s income classification, as determined by the Department of Finance (DOF)
14 
and approved by the Office of President; and which shall not therefore exceed the
15 
percentage of the Salary Schedule in Section 3 hereof, as follows:
Percentage of the Salary Schedule
For Provinces/Cities For Municipalities
Special Cities
100%
1st Class
100%
90%
2nd Class
95%
85%
3rd Class
90%
80%
4th Class
85%
75%
5th Class
80%
70%
14


6th Class
75%
65%
2 
b) The basic pay of barangay personnel shall be in the form of honoraria which shall not
3 
exceed the percentage of the Salary Schedule corresponding to the income
4 
classification of the LGU. They may likewise receive Mid-Year Bonus and Year-End
5 
Bonus based on the monthly honoraria as of May 15 and October 31 of the year,
6 
respectively, and Cash Gift of Five Thousand Pesos (P5.000).
7 
However, the minimum Year-End Bonus of One Thousand Pesos (PI,000) for the
8 
punong barangay and Six Hundred Pesos (P600) for other mandatory barangay
9 
officials shall not be subject to the PS limitation.
10 
SEC. 11. Implementation Schedule - The modified Salary Schedule and additional
11 
benefits authorized herein shall be implemented in National Government Agencies as
12 
follows, subject to appropriations by Congress:
13 
a) Starting January 1, 2016, the first tranche salary schedule for civilian personnel and
14 
the first tranche Provisional Allowance, Officers’ Allowance and Hazard Pay for
15 
MUP, together with the Mid-Year Bonus;
16 
b) By January 1, 2017, the second tranche salary schedule for civilian personnel and the
17 
second tranche Provisional Allowance, Officers’ Allowance and Hazard Pay for
18 
MUP, the Mid-Year Bonus and half of the enhanced PBB;
19 
c) By January 1, 2018, the third tranche salary schedule for civilian personnel and the
20 
third tranche Provisional Allowance, Officers’ Allowance and Hazard Pay for MUP,
21 
the Mid-Year Bonus and full amount of the enhanced PBB; and
22 
d) By January 1, 2019, the fourth tranche salary schedule for civilian personnel and the
23 
fourth tranche Provisional Allowance, Officers’ Allowance and Hazard Pay for MUP,
24 
the Mid-Year Bonus and full amount of the enhanced PBB.
1
15


1 
For covered GOCCs and LGUs, the implementation of the compensation adjustments
2 
shall be in at least four (4) years depending on their respective financial capability, with each
3 
tranche starting not earlier than the dates stated above. GOCCs and LGUs which do not have
4 
adequate or sufficient funds shall partially implement the modified Salary Schedule and
5 
authorized benefits. In case of partial implementation, the same shall be at uniform
6 
percentage across all positions for every GOCC/LGU.
7 
SEC. 12. Retroactive Application - The first tranche implementation of the modified
8 
Salary Schedule for civilian personnel, the grant of the Provisional Allowance, Officers’
9 
Allowance and increased Hazard Pay for the MUP, shall be effective January 1, 2016.
10 
For covered GOCCs and LGUs, the retroactive application of the first tranche shall be
11 
subject to their financial capabilities and compliance with other requirements under existing
12 
laws.
13 
SEC. 13. Legislative Intent. -  This Act mirrors the increases in salary for civilian
14 
personnel and the grant of Provisional Allowance, Officers’ Allowance and increases in
15 
Hazard Pay for the MUP as well as the grant of bonuses and incentives for both civilian
16 
employees and MUP mandated under Executive Order (E.O.) No. 201, series of 2016, in
17 
order to provide legislative concurrence and/or approval for the said salary increases, grant of
18 
allowances, increases hazard pay and grant of bonuses and incentives provided in the said
19 
order. Accordingly, any and all salary increases, grant of allowances and increases in hazard
20 
pay as well as bonuses and incentives previously implemented pursuant to E.O. No. 201,
21 
series of 2016, shall be considered and credited as compliance with the provisions of this Act.
22 
SF.C. 14. Exempt Entities - The following exempt entities shall not be covered by the
23 
modified Salary Schedule and additional benefits authorized herein: (i) government agencies,
24 
including GOCCs that are exempted from the coverage of RA No. 6758, as amended, as
25 
provided in their respective enabling law or charter; and (ii) GOCCs governed by the CPCS
16


1 
established by the Governance Commission for GOCCs (GCG) and approved by the
2 
President of the Philippines, under RA No. 10149.
3 
They shall be governed by their respective CPCS which shall be made effective upon
4 
the recommendation of the DBM or the Governance Commission for GOCCs, as the case
5 
may be, and approval by the President of the Philippines.
6 
SEC. 15. Applicability to Certain Officials - Consistent with the policy under Section
7 
6 of Article VII and Section 10 of Article VI of the Constitution, the salaries authorized
8 
herein for the President, Vice President and Members of Congress shall take effect only after
9 
the expiration of the respective terms of the incumbents.
10 
The implementation of this Act with respect to the regular members of the Cabinet
11 
shall be effective starting July 1, 2016.
12 
SEC. 16. Funding Source - The funding sources for the amounts necessary to
13 
implement this Act shall be as follows:
14 
a) For national government agencies funded in the GAA, the amount needed for the
15 
compensation adjustment in FY 2016 shall be charged against the appropriations
16 
provided in the FY 2016 GAA.
17 
The funding requirements for the compensation adjustment in FYs 2017, 2018 and
18 
2019 will be included in the proposed annual National Expenditure Program
19 
submitted to Congress for its approval. The DBM, following the compensation
20 
adjustment strategy embodied in Section 1 hereof, and consistent with its authority
21 
under Section 7 of RA No. 6758, as amended, shall then be authorized to implement
22 
or adjust the compensation corresponding to the appropriations provided in the GAA.
23 
b) For GOCCs, the amounts shall come from their respective corporate funds in the
24 
corporate operating budgets approved by DBM.
17


1 
c) For LGUs, the amounts shall be charged against their respective funds in accordance
2 
with the pertinent provisions of this Aet and RA No. 7160.
3 
SEC. 17. Implementing guidelines - The DBM shall issue the guidelines neeessary to
4 
implement the provisions of this Act.
5 
SEC. 18. Separability Clause - Should any provision of this Act be deelared invalid
6 
or uneonstitutional, the other provisions unaffeeted thereby shall remain valid and subsisting.
7 
SEC. 19. Repealing Clause - All other rules, regulations and issuances, or parts
8 
thereof which are inconsistent with this Act are hereby repealed or modified accordingly.
9 
SEC. 20. Effectivity Clause- This Act shall take effect immediately upon its
10 
publication in the Official Gazette or in two (2) newspapers of general circulation, whichever
11 
comes first.
Approved,
18