FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
7 i1r: 22 7 ;  ., 
First Regular Session 
1 
Introduced by Senator Antonio F. Trillanes IV 
EXPLANATORY NOTE 
The stature of workers in the government bureaucracy has long been way below 
par the standard norms followed in the private sector in terms of compensation 
and classifications standards. In 1989, Republic Act 6758 also known as the 
Salary Standardization Law was passed in order to upgrade the pay standards of 
the government employees and at the same time put in place a position 
classification system to have a clear determination of different pay levels in 
accordance to duties and responsibilities. 
While there has been an almost two-fold increase in the compensation package 
of the thousands of civil servants all over the country, their income remains 
uncompetitive. Moreover, unjustifiable distribution of income remains evident as 
pay level and increments were most of the time based on backward cultural 
indicators, such as seniority and other discretionary factors, indicative of 
discrepancies in the government organization. A more pro-active development 
program should be inputted to enhance motivational skills. 
Fundamentals, such as remuneration, job descriptions, tariff structures, project 
management, training and skills development, and incentive programs need to 
be overhauled and updated in order to jive with the call of the times to have a 
fully-professionalized government bureaucracy. 
This measure seeks to reinvent government‘s bureaucratic structure and salary 
schedule known in this bill as “Omnibus Job Classification & Compensation 
Standardization.” 
This will take into consideration a rationalized system that 
equates pay with work responsibility and skill among others. Such a system will 
create an environment of fairness and motivation which will inculcate 
professionalism in the government workplace. 
The long practiced motivational system in the private sector in granting 
promotions and salary increases based on performance evaluation will be 
institutionalized in this measure as a means of advancing efficiency and 
competency amongst the workforce. 
Most importantly, the reclassified compensation framework in this bill will further 
the thrust of our leadership to make the remuneration of government workers 
more competitive and match with the prevailing rate in private ofices so that 
more talented and skilled employees will be attracted to join the government. 
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If we are to build a world-class civil service structure, our system of administering 
our own government workers should have parity with the world-class industry 
standards. 
In view of the foregoing, the immediate passage of this measure is earnestly 
sought. 
q&-+=t4L- 
N ON10 F. TRILLANES IV 
Senator 
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FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
1 
7 UCT 22 P3 :35 
SENATE 
S. NO. 
. 1'392 
Introduced by Senator Antonio F. Trillanes' IV 
AN ACT 
ADOPTING 
AN 
OMNIBUS 
JOB 
CLASSIFICATION 
AND 
COMPENSATION STANDARDIZATION SYSTEM IN THE 
CIVIL 
SERVICE, APPROPRIATING FUNDS THEREFOR, PROVIDING PENAL 
SANCTIONS FOR VIOLATIONS THEREOF, AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
ARTICLE I 
GENERAL PROVISIONS 
SECTION 1- Short Title. - 
This Act shall be known as the "Government 
Classification and Compensation Act of 2007." 
SEC. 2. Statement of Policy. - Pursuant to Section 5, Article IX-€3 of 
the Constitution, it is hereby declared the policy of the State to provide for 
the standardization of the compensation of all government officials and 
employees taking into account the nature of the responsibilities pertaining 
to, and the qualifications required for, their positions, thereby 
strengthening the government's merit and reward system. 
SEC. 3. Governing Principles. - Government shall provide for an 
effective, efficient, and upright public service through a corps of competent 
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and motivated civil servants using a fiscally-sound and rational 
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compensation and benefits system. 
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(a) The State recognizes the indispensable and enduring role of the 
civil service in implementing the laws, managing public affairs, and 
ensuring the delivery of public services. 
(b) To this end, the State shall provide the enabling environment 
that will promote accountability, responsibility, integrity, loyalty, 
efficiency, patriotism, justice, productivity, and excellence in the civil 
service, thereby upholding the Constitutional mandate that public 
office is a public trust. 
(c) Recognizing the need to attract, retain, and motivate such a 
corps of civil servants, the State shall develop, implement, and 
maintain a rational compensation and benefits system which shall 
be internally and externally equitable, performance-based, and 
easy to administer. 
(d) The compensation of government employees shall be modest in 
recognition of fiscal realities, and in support of the ideal that public 
office being a public trust, public officers and employees must, at all 
times, be accountable to the people, serve them with utmost 
responsibility, integrity, loyalty, and efficiency; act with patriotism 
and justice, and lead modest lives. 
SEC. 4. Definition of Terms, - For purposes of this Act, the following 
terms shall have the corresponding meanings: 
(a) Base Pay - synonymous to salary; the fixed amount of money 
given to an employee as payment for services rendered, which 
consists only of the gross salary, without other benefits or 
emoluments. 
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(b) Benchmark Job -jobs that are service-wide, that is, common to 
all sectors, or representative of specific sectors, and relatively 
comparable to jobs outside the government, the descriptions of 
which will be used as a basis for the valuation of all other jobs in 
the civil service. 
(c) Commission- the Civil Service Commission, or such other 
successor agency as the Constitution may provide. 
(d) Compensable factors - factors used to provide a basis for 
judging job value in a job evaluation plan. In this Act, these are: 
Skills and Knowledge, Nature of Work, and Answerability. 
(e) Cut - a range of Job Grades which are grouped together for 
having similar or related nature of jobs. 
(f) Department - the Department of Budget and Management, or 
such other successor-agency as the law or regulations may 
provide. 
(9) Government-owned or controlled corporations and financial 
institutions - refer to all corporations and financial institutions 
owned or controlled by the National Government, whether such 
corporations and financial institutions perform governmental or 
proprietary functions. 
(h) Incentive - a reward, financial or otherwise, that compensates 
an employee for high performance andlor continued performance. 
(i) Job Classification Index, or Index - a table of occupational 
services, job titles, and Job Grades for all jobs in the civil and 
military service, which forms part of, and to which the Omnibus 
System, applies. 
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(j) Job Grade - a category of jobs which, although different with 
respect to kind or subject matter of work, are sufficiently equivalent 
as to Skills and Knowledge, Nature of Work, and Answerability, to 
warrant the inclusion of such classes of jobs within one range of 
Base Pay, and which distinguishes it from other Job Grades in the 
Base Pay Schedule. 
(k) National Government - refers to the Executive, the Legislative, 
and the Judicial Branches, the Constitutional Commissions, and 
other offices created or mentioned in the Constitution, and shall 
include, but shall not be limited to, all departments, bureaus, 
offices, 
boards, 
commissions, 
courts, 
tribunals, 
councils, 
authorities, administrations, centers, institutes, state universities 
and colleges, and Government-owned and controlled corporations 
and financial institutions. 
(I) New Base Pay - the Base Pay of an employee pursuant to the 
terms of this Act. 
(m) Omnibus Job Classification and Compensation Standardization 
System, or Omnibus System - the system herein adopted for 
classifying jobs and determining rates of Total Compensation for 
jobs and employees. It consists, among others, of the Job 
Classification Index; the Career Track that employees may 
progress through; the Total Compensation Framework, including 
the Base Pay Schedule, Allowances and Other Pay, and 
Incentives; the rules for assignment of jobs to grades, and of 
incumbents to Steps; the conditions for permitting Base Pay 
increases, as well as creation of and increases in Allowances and 
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Other Pay, and Incentives; and all other policies, rules, and 
regulations for the implementation and administration thereof. 
(n) Previous Base Pay - the Base Pay of an employee prior to the 
effectivity of this Act. 
(0) 
Step - a level of Base Pay within a Job Grade. 
(p) Total Compensation -the total amount of payment given to an 
employee for services rendered, consisting of the following 
components: (i) Base Pay; (ii) Allowances and Other Pay; and (iii) 
Incentives. 
(9) Uniformed Personnel - government employees who directly 
perform duties and responsibilities related to national security and 
actual defense of the State, or public safety and internal peace and 
order; whose selection, hiring, appointment, transfer, and promotion 
are governed by a separate merit and promotion system; who are 
subject to a different set of disciplinary procedure; and who are 
covered by a distinct retirement andlor separation benefits system. 
For purposes of this Act, the term refers to military personnel of the 
Armed Forces of the Philippines and Uniformed Personnel of the 
Philippine National Police, pursuant to RA6638, as amended, and 
RA6648, as amended. The term also applies to the Uniformed 
Personnel of all other agencies which have adopted these laws, 
such as the Bureau of Jail Management and Penology, the Bureau 
of Fire Protection, the Philippine Coast Guard, the National 
Mapping and Resource Information Authority, and their successor 
agencies 
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ARTICLE II 
COVERAGE 
SEC. 5. National Government. - This Act shall apply to all jobs, 
appointive or elective, on full or part-time basis, permanent or temporary, 
now existing or hereafter created in the National Government, and local 
government units, including Government-owned or controlled-corporations 
and financial institutions with original charters. It shall also apply to the 
uniformed personnel. Excluded from the coverage of this Act are 
individuals and groups engaged through job orders or contracts of 
services, and non-organic personnel of the government. 
SEC. 6. Local Government Units. - 
Local governments shall adopt the 
provisions of this Act, including the Base Pay Schedule in Section 15 
hereof. A local government unit which is not capable of implementing this 
law may apply for total or partial exemption with the Commission and the 
Department. The grant of eligibility shall be based on uniform standards 
that will be determined jointly by the CSC and DBM. Provided, That partial 
implementation shall be fixed at a uniform percentage applied uniformly to 
all 
jobs 
in 
the 
local 
government. 
ARTICLE 111 
OMNIBUS JOB CLASSIFICATION AND 
COMPENSATION STANDARDIZATION SYSTEM 
SEC. 7. Adopfing an Omnibus Job Classification and Compensation 
Standardization System - The Commission and the Department shall 
jointly design, develop, and establish the Omnibus System, or amend the 
same as necessary, which shall replace and supplant the unified 
Compensation and Position Classification System prescribed under 
Presidential Decree No. 985, as amended. 
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SEC. 8. Governing Principles of the Omnibus System - The Omnibus 
System shall be created and implemented using the following principles: 
(a) The Omnibus System shall promote internal equity among 
government employees, providing equal pay for work of equal 
value, and base differences in pay upon substantive distinctions in 
verifiable Compensable Factors. Consequently, Base Pay, 
Allowances and Other Pay, and Incentives shall be standardized 
and rationalized across all agencies. 
(b) The Omnibus System shall give due regard to external equity, 
considering prevailing market rates for work of equal value in 
medium-sized firms in the private sector. The Omnibus System 
shall be kept modest, in keeping with fiscal realities. 
(c) The Omnibus System shall use performance as basis for merit 
increases, promotions, and the grant of Incentives, employing an 
integrated system for evaluating work performance of both the 
agency and its employees. 
(d) The Omnibus System shall be easy to administer and 
responsive to current challenges. Simplified terms shall be used to 
denominate all jobs in the civil and military service. A review of 
government compensation rates, taking into account various 
factors, shall be undertaken by the Commission and the 
Department every (5) five years from its implementation, pursuant 
to section 33 of this Act. A report of said review shall be furnished 
the Committees on Finance, Appropriation, and Civil Service in 
both Houses of Congress. 
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A. The Job Classification Index 
SEC. 9. Job Classification Index - The Omnibus System shall provide 
for a Job Classification Index to be developed jointly by the Commission 
and the Department, using the following guidelines: 
(a) The Department of National Defense and the Armed Forces of 
the Philippines for military personnel, the Philippine National Police 
for its uniformed personnel, the Bureau of Jail Management and 
Penology, the Bureau of Fire Protection, the Philippine Coast 
Guard, the National Mapping and Resource Information Authority, 
and their successor agencies, for their respective uniformed 
personnel, shall be consulted in the preparation of the Job 
Classification Index. 
(b) Any modification of the jobs in the Index, including the creation 
or abolition of jobs, or the consolidation or division of functions 
thereof, as a result of organizational, re-organizational, andlor 
substantial changes in work methods and duties, shall be made 
pursuant to law: Provided, That new jobs shall be created only 
when new duties are found to exist. 
(c) The Commission and the Department shall monitor and update 
the description for each job in the Index, after consultation with the 
agencies to the extent necessary; and conduct periodic surveys of 
agencies to ascertain the actual duties, responsibilities, and other 
requirements of jobs therein. 
(d) Whenever the circumstances warrant, the Commission and the 
Department may jointly certify necessary changes in job 
description, Job Grade, Step assignment, and Totat Compensation. 
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Such certifications shall be binding on administrative, certifying, 
payroll, disbursing, accounting and auditing officers of the 
government. 
SEC. IO. Job Grades of Officials Mentioned in the Constitution. - 
The Base Pay of the following officials shall be in accordance with the Job 
Grades indicated hereunder: 
Official 
Job Grade 
President of the Philippines 
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Vice-President of the Philippines 
21 
President of the Senate 
21 
Speaker of the House of Representatives 
21 
Chief Justice of the Supreme Court 
21 
Senator 
20 
Member of the House of Representatives 
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Associate Justices of the Supreme Court 
20 
Chairman of a Constitutional Commission 
20 
Commissioner of a Constitutional Commission 
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Chairman of the Commission on Human Rights 
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Members of the Commission on Human Rights 
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Ombudsman 
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Over-All Deputy Ombudsman 
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Deputy Ombudsman 
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Special Prosecutor 
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SEC. 11. Job Grades for All Other Jobs. - For all other jobs in 
government, the Commission shall select representative entry-level jobs 
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per Track as Benchmark Jobs and assign Job Grades therefor, using the 
same baseline for all the jobs in each Track. The Commission shall 
thereafter assign each job to the appropriate Job Grade, using the 
Compensable Factors for each job. 
The Commission shall likewise refer to the Job Grade assignments 
of the officials in Section 10 hereof in making Job Grade assignments. 
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SEC. 12. Compensable Factors. - The Job Grade shall be determined 
based on the following compensable factors: 
(a) Skills and knowledge, which include technical skills, or the 
minimum knowledge of technical matters related to the job, which 
may be manifest through education, training, practical experience, 
and eligibility. Skills and knowledge also include people skills, or 
that required for people interaction, both internal and external to 
agency. 
(b) Nature of the work, which refers to the complexity thereof, or the 
mental challenge relative to the routinelnon routine-ness of a job; 
physical working conditions; and the volume of work, including 
inherent work stress, and the frequency thereof. 
(c) Answerability, which refers to the degree to which the job is 
directly answerable (i) for people or property, and/or (ii) to 
taxpayers andlor, (iii) where applicable, peers, thru established 
professional standards. It includes responsibility for people, which 
considers both number of jobs and variety of functions supervised 
or managed; job impact, or the extent to which the job directly 
affects agency operations and goals, in terms of reach and the 
magnitude of impact, or conversely, the impact of any error; and 
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professional obligations, including any external special obligations 
or accountability to established professional standards. 
The Commission shall have authority to determine the appropriate 
methodology for the evaluation of Compensable Factors for every job in 
government. 
B. Career Tracks 
SEC. 13. Career Tracks. - 
The Omnibus System shall also provide for 
broad occupational groupings of jobs and a system of progression which 
determines the career path of an employee, consisting of the following 
tracks: 
(a) Administrative or “A Track -This track covers administrative 
support service jobs and jobs performing “housekeeping” functions. 
This includes financial services, general support services, and in- 
house human resource services. 
(b) Technical or “T Track - This track covers non- 
administrativehon-housekeeping support service jobs which 
involve the application of a professional or technical discipline, or 
some craft or trade, primarily engaged in the implementation of 
specific programs or services made under supervision. 
(c) Specialized or 
“S Track”- 
This track 
covers non- 
administrativelnon-housekeeping jobs which are primarily highly 
technical and/or policy defining and determining. These jobs require 
intensive and thorough knowledge of a specialized field. 
(d) Executive or “E-Track - This track covers jobs primarily 
involved in the management of people, resources, and policy. 
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C. Total Compensation Framework 
SEC. 14. Total Compensation. - Total Compensation of each employee 
shall consist of: 
(a) Base Pay. This amount shall be given to each employee 
pursuant to the Base Pay Schedule provided in Section 15 hereof. 
(b) Allowances and Other Pay. An agency may grant only such 
Allowances and Other Pay as provided in Section 18 hereof, using 
only such standard rates authorized by the Department, and 
without affecting the Base Pay. 
(c) Incentives. An agency may grant only such Incentives as 
provided in Section 21 hereof, using only such standard rates 
authorized by the Department, except as provided under Sections 
22 and 23, and without affecting the Base Pay. 
C.l Base Pay 
SEC. 15. Base Pay. - Under the Omnibus System, there shall be twenty- 
two (22) Job Grades divided into four (4) Cuts, under the following Base 
Pay Schedule: 
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BASE PAY SCHEDULE 
CUT 1 
Job Grade 
Steo 1 
Ster, 2 
Step 3 
Steo 4 
Ster, 5 
Job Grade 1 
5,800 
6,235 
6,670 
7,105 
7,540 
8,897 
Job Grade 2 
6,844 
7,357 
7,871 
8,384 
Job Grade 3 
8,076 
8,682 
9,287 
9,893 
10,499 
Job Grade 4 
9,530 
10,244 
10,959 
1 1,674 
12,388 
Job Grade 5 
11,245 
12,088 
12,932 
13,775 
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CUT 2 
Job Grade 
Steo 1 
Step 2 
Stea 3 
Stea 
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Job Grade 6 
14,618 
15,715 
16,811 
17,908 
19,004 
Job Grade 7 
16,957 
18,229 
19,501 
20,773 
22,045 
Job Grade 8 
19,670 
21,146 
22,621 
24,096 
25,572 
Job Grade 9 
22,818 
24,529 
26,240 
27,952 
29,663 
Job Grade 10 
26,469 
28,454 
30,439 
32,424 
34,409 
Job Grade 11 
30,704 
33,006 
35,309 
37,612 
39,915 
Job Grade 12 
35,616 
38,287 
40,959 
43,630 
46,301 
CUT 3 
Job Grade 
Steo 1 
Stea 2 
Stea 3 
Steo 
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Job Grade 13 
46,301 
49,774 
53,246 
56,719 
60,191 
Job Grade 14 
52,783 
56,742 
60,701 
64,659 
68,618 
Job Grade 15 
60,173 
64,686 
69,199 
73,712 
78,225 
Job Grade 16 
68,597 
73,742 
78,887 
84,031 
89,176 
Job Grade 17 
78,201 
84,066 
89,931 
95,796 
101,661 
Job Grade 18 
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95,835 
102,521 
109,207 
115,893 
CUT 4 
Job Grade I 9  
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Job Grade 20 
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Job Grade 21 
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Job Grade 22 
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Step 5 
Stea 5 
Bas Pa 
SEC. 16. Administration of the Base Pay Schedule. - The Base Pay 
Schedule shall be jointly administered by the Commission and the 
Department using these guidelines: 
(a) Except for: (i) jobs in Cut 4, which job grades are not delineated 
by Steps; (ii) jobs of other elective officials; and (iii) those with fixed 
terms of office; the Base Pay shall be determined as follows: 
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(1) Step 1 constitutes the Base Pay corresponding to the entry 
level for a job in a given Job Grade, while Step 5 is the 
maximum amount of Base Pay in such Job Grade. Step1 shall 
be the hiring rate in a given Job Grade. 
(2) An employee can progress through Steps 1 to 5 and 
become entitled to the corresponding increase in Base Pay 
through a performance-based system approved by the 
Commission. 
(3) A progression to a higher Job Grade is a promotion which 
shall be granted only on the basis of merit and fitness, as 
determined by performance and/or qualification standards set 
by the Commission, by which an employee shall become 
entitled to the corresponding increase in Base Pay. 
(b) The Base Pay of jobs in Cut 4 shall be the amount indicated in 
the Base Pay Schedule: Provided, that, career officials belonging to 
the Judiciary may be entitled to steps and to the corresponding 
increase in Base Pay through a performance-based system 
approved by the Commission. 
(c) The Base Pay of other elective officials and officials with fixed 
terms of office, not in Cut 4, shall be the amount indicated in Step 1 
of their prescribed Job 24 Grade. 
(d) The Base Pay Schedule shall be used for jobs that are paid on 
a monthly rate basis. All amounts of Base Pay in the Base Pay 
Schedule are expressed as gross monthly rates in Philippine 
Pesos, and shall represent full compensation for full-time 
employment, regardless of the location where the work is 
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performed. Base Pay for services rendered on a part-time basis 
shall be adjusted proportionately. 
(e) The daily wage rate shall be determined by dividing the monthly 
Base Pay rate by twenty-two (22) 
working days per month. 
SEC. 17. Special Allowances under Republic Act Nos. 9227, 9347, 
and 9279 - The special allowances under Section 6 of Republic Act No. 
9227, Section 4 of Republic Act No. 9347, and Section 4 of Republic Act 
No. 9279, as well as other laws granting special allowances to 
government employees, military and uniformed personnel shall hereafter 
be converted as part of Base Pay. The Special Trust Fund created under 
Section 3 thereof R.A. No. 9279 shall be abolished and any balance 
thereof shall revert to the General Fund. 
C.2 Allowances and Other Pay 
SEC. 18. Allowances and Other Pay - Allowances and Other Pay shall 
be limited to: 
(a) Standard Allowances and Other Pay - those amounts given to 
employees for work performed or which attach to all jobs, or 
specific jobs across all agencies, at prescribed standard rates. 
(b) Specific-Purpose Allowances - those amounts which attach only 
to jobs under specific conditions, or for special situations in specific 
agencies, which shall be given at prescribed standard rates. 
SEC. 19. Standard Allowances and Other Pay - This type shall be 
limited to: 
(a) Supplemental Economic Allowance (SEA) - a monthly 
allowance intended to supplement the base pay of all jobs which 
are not entitled to Representation and Transportation Allowance. 
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SEC. 
The SEA shall be given at prescribed standard rates, subsuming 
the Additional Compensation (ADCOM) and Personnel Economic 
Relief Allowance (PERA), among others. 
(b) Representation and Transportation Allowance - the monthly 
commutable allowance given to specified employees in the actual 
performance of duties, 
made payable from 
programmed 
appropriations, which shall be at prescribed standard rates. 
Transportation allowance shall not be given to employees who are 
assigned government motor transportation. 
(c) Uniform or Clothing Allowance - amounts or items given to 
sustain the provision of the required uniform to employees, which 
shall be given at prescribed standard rates or items. 
(d) Year-End Bonus - an amount equivalent to one (I) 
month Base 
Pay and cash gift of Five Thousand Pesos (P5,OOO) provided under 
Republic Act No. 6686, as amended by Republic Act No. 8441. 
(e) Overtime Pay - the consideration paid for work, whether in cash 
or compensatory time off, performed by an employee beyond his 
regular working hours in a day, and those performed on rest days, 
holidays, and non-working days, which shall be given at prescribed 
standard rates. 
(9 Night Differential - the remuneration premium given to an 
employee whose regular working hours fall wholly or partially within 
six o’clock in the evening or six o’clock in the morning of the 
following day, which shall be given at prescribed standard rates. 
20. Specific-Purpose Allowances - This type shall be limited to: 
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SEC. 
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(a) Subsistence Allowance - the allowance given to employees 
whose services are made available at all times in their places of 
work, even during mealtimes, which shall be at prescribed standard 
rates. 
(b) Hazard Pay - the amount given to employees who are exposed 
to hazardous situations as may be determined by the Department, 
which shall be at prescribed standard rates. 
(c) Overseas and Other Allowances - the amounts given to 
employees assigned abroad at such rates authorized under 
Republic Act No. 7157, as amended, and its implementing rules 
and regulations. 
C.3 Incentives 
21. lncentives - Incentives shall be limited to: 
(a) Productivity Incentive, Collective Negotiation Agreement (CNA) 
Incentive, and Other Benefits - that amount given to enhance 
employee productivity, subject to the accomplishment of agency 
performance targets and the generation of savings. 
(b) Longevity Incentive - that amount given on milestone years to 
recognize the employee’s length of service with at least satisfactory 
performance, or to recognize the agency’s continuing and/or viable 
existence. Longevity shall be rewarded through the grant of 
periodic flat incentives or bonuses, regardless of Job Grade, which 
shall be at prescribed standard rates. 
(c) Service Incentive - that amount given in the form of honoraria as 
token payments for services rendered outside or in addition to the 
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employee’s regular functions, which shall be at prescribed standard 
rates. 
SEC. 22. productivity Incentive, CNA Incentive, and Other Benefits - 
This type shall be limited to: 
(a) Productivity andlor CNA Incentive - the Productivity Incentive is 
an amount given to employees or groups of employees as a reward 
for demonstrated productivity. The CNA Incentive is the amount 
generated from cost savings measures provided for in the pertinent 
CNA. 
(b) Health Maintenance Benefit - benefits given to maintain 
employee health, in addition to the benefits provided for under the 
National Health Insurance Program administered by the Philippine 
Health Insurance Corporation. 
(c) Staple Food Benefit - benefits given to employees to assist them 
in countering the rising cost of the basic constitutes of ordinary diet. 
The above shall be chargeable against the agency’s savings. 
SEC. 23. Guidelines for Granting the Productivity Incentive, CAN 
Incentive, and Other Benefits - An agency may only grant the Incentives 
in Section 22 hereof subject to the following parameters: 
(a) The CNA Incentive shall be given pursuant to Public Sector 
Labor Management Council (PSLMC) Resolution No. 4, series of 
2002, and PSLMC Resolution No. 2, series of 2003, as may from 
time to time be amended by the PSLMC. 
(b) The other Incentives in Section 22 hereof shall be funded by the 
agency from its savings, without securing additional funding from 
the National Government: Provided, That the agency shall remit to 
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the General Fund a sum equivalent to twenty percent (20%) of the 
total amount of such Incentives given to all employees in the 
agency for the calendar year, which sums shall be used for the 
equalization of productivity incentives and other benefits of 
employees in government. 
(c) For employees of all Government owned and controlled 
corporations and financial institutions, the Incentives in Section 22 
hereof may only be granted upon a showing of the agency’s fiscal 
and financial viability, in addition to the requirements of paragraphs 
(a) and (b) above. The Department shall issue rules for the 
implementation of paragraphs (b) and (c) hereof. 
SEC. 24. Longevity lncentive - This type shall be limited to: 
(a) Loyalty Incentive - a one-time Incentive given every five (5) 
years to recognize the employee’s length of government service 
with at least satisfactory performance. 
(b) Anniversary Bonus - a one-time Incentive given to employees 
when the agency celebrates or commemorates a milestone 
anniversary, chargeable to the agency’s savings. 
ARTICLE IV 
CONVERSION TO THE OMNIBUS SYSTEM 
SEC. 25. Treatment of Existing Allowances and Other Benefits of 
Incumbents - The Department shall classify andlor re-classify all existing 
allowances, incentives and other benefits currently being received by all 
government employees, including incumbents, into Base Pay, Allowances 
and Other Pay, or Incentives, pursuant to the Total Compensation 
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Framework, and pursuant to the true nature of such, notwithstanding its 
existing nomenclature. 
Except for those in Sections 18 and 21 hereof, all other allowances, 
incentives, and benefits, being enjoyed by incumbents prior to the 
effectivity of this Act, which shall not be continued to be given as a 
separate amount, including ad hoc, provisional, tentative, or improvised 
benefits being received by government employees which are really 
intended to 
provide some form 
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assistance, 
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acknowledgement of the inadequacy of compensation in government, 
shall be deemed integrated, subsumed, incorporated, and included in the 
Base Pay Schedule as herein provided, without need of further adjustment 
of the amounts thereof, since the same already reflects prevailing 
economic conditions and the pertinent Compensable Factors. 
Being made in pursuit of a curative policy, this classification and re- 
classification shall apply even as to allowances, incentives, and benefits 
being received by incumbents prior to the effectivity of this Act. 
SEC. 
26. 
Total 
Compensation-Non 
Diminution 
in 
fay - 
Notwithstanding any provision of law to the contrary, there shall be no 
diminution in pay where the gross Total Compensation of the employee 
under the Omnibus System is greater 
than the gross total pay being received prior to the effectivity of this Act. 
In any case, there shall be no vested right in any pay being 
received by incumbents, unless the incumbent has already rendered 
services therefor. 
SEC. 27. Base f a y  - The New Base Pay of all incumbents shall conform 
to the amount in the Base Pay Schedule corresponding to Step 1 of the 
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Commission: Provided, That - 
(a) Where the Previous Base Pay of an incumbent is greater 1 than 
Step 1 of such Job Grade, the incumbent shall be assigned to the 
Step with the next higher Base Pay; 
(b) Where the Previous Base Pay of an incumbent is greater than 
the Base Pay for Step 5 of the prescribed Job Grade, the 
incumbent shall be assigned to Step 5 of that Job Grade, and 
continue to receive the Previous Base Pay. In this case, the 
incumbent shall receive no upward adjustment in Base Pay until 
such time as the incumbent is promoted to a higher Job Grade, the 
Base Pay of which is greater than his Previous Base Pay. 
SEC. 28. Other Pay - (a) The principle of non-diminution shall not apply 
with respect to allowances, remuneration, and benefits being received by 
incumbents prior to the effectivity of this Act (i) for which no appropriation 
has been provided in the National Budget; (ii) which are ad hoc, 
provisional, tentative, or improvised benefits, in acknowledgement of the 
inadequacy of compensation in government, and are thus intended to 
provide some form of economic assistance; and (iii) otherwise for which 
no appropriate approval has been granted. 
(b) The principle of non-diminution shall not apply with respect to any type 
of incentive being received by incumbents prior to the effectivity of this 
Act, the same being contingent on the agency’s or employee’s 
performance. 
SEC. 29. Computation of Retirement and Other Benefits - For 
purposes of retirement, only the Base Pay actually received by an 
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employee at the date of retirement shall be included in the computation of 
retirement benefits. 
SEC. 30. Specific Authority of Department, -- The Department, in 
consultation with the Commission, is hereby authorized to issue 
regulations for the transition into the Omnibus System, including the 
continuance, discontinuance, decrease, or increase in rates of previous, 
existing, and future components of Total Compensation, in any form 
granted. 
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ARTICLE V 
THE COMMISSION AND THE DEPARTMENT 
SEC. 31. Exclusive Functions, Powers, and Jurisdiction of the 
Commission. - The Commission shall have exclusive original jurisdiction 
over any and all disputes arising from the interpretation of this Act or its 
implementing rules and regulations, and the implementation of the 
Omnibus System, including, without limitation, any dispute on the 
allowance, disallowance, increase, decrease, classification, or re- 
classification of any component of Total compensation, alleged diminution 
of pay or benefits, and assignment of Job Grades to jobs, and of 
incumbents to Steps. Cases that are instituted in other fora shall be 
dismissed for lack of jurisdiction, and exhaustion of remedies before the 
Commission shall be a condition sine qua non to judicial review on these 
matters. 
Decisions of the Commission on these matters shall be brought 
only to the Supreme Court via petition for certiorari pursuant to Section 7, 
Article IX of the Constitution, notwithstanding the provisions of Republic 
Act No. 7902. Notwithstanding the provision of any law to the contrary, the 
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evaluation and approval of qualification standards for all jobs in 
government, including, but not limited to, those in constitutionally fiscally 
autonomous groups; Government-owned and controlled-corporations and 
financial institutions, whether or not exempt from the unified system under 
Presidential Decree No. 985, as amended, and/or the Omnibus System; 
local government units; and Uniformed Personnel, but excluding the 
Armed Forces of the Philippines, shall be made exclusively by the 
Commission. 
SEC. 32. Joint Functions and Powers of the Commission and fhe 
Department - In addition to the functions heretofore provided, the 
Commission and the Department shall jointly approve the maintenance of 
existing, and the creation of future jobs in government. 
Notwithstanding the provision of any law to the contrary, the job 
classification for all jobs in government, including, but not limited to, those 
in constitutionally fiscally autonomous groups; Government-owned and 
controlled-corporations and financial institutions, whether or not exempt 
from the unified system under Presidential Decree No. 985, as amended, 
and/or the Omnibus System; local government units; and Uniformed 
Personnel, but excluding the Armed Forces of the Philippines, shall be 
subject to the joint evaluation and approval of the Commission and the 
Department. 
SEC. 33. Periodic Review of the Omnibus System. - The Commission 
and the Department shall jointly review the Omnibus System every five (5) 
years and recommend or implement changes as may be necessary. 
However, in case of extraordinary circumstances, such as major 
bureaucracy-wide reorganizations; or when government Base Pay rates 
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are below the market, in comparison with medium-sized private firms, by 
at least 40%; or when there is a significant, sustained movement in the 
cost of living, then the Commission and Department may review the 
Omnibus System earlier, with a view to addressing these issues with 
dispatch. 
ARTICLE VI 
REPEAL AND AMENDMENT OF RELATED LAWS 
SEC. 34. Sandiganbayan Jurisdiction, Local Government Code, and 
Other Laws involving Salary Grades, - All provisions of laws, decrees, 
executive orders, corporate charters, rules, regulations, circulars, 
approvals, and other issuances, or parts thereof prescribing salary grades 
of government employees, including, without limitation, the jurisdiction of 
the Sandiganbayan under Presidential Decree No. 1606, as amended, as 
well as the salary grades of local government officials under the Local 
Government Code, or Republic Act No. 7160, are hereby repealed. 
The Job Grade equivalent of such salary grades shall be jointly 
determined by the Commission and the Department under the Omnibus 
System, using the results of the evaluation of the Compensable Factors 
for each affected job. The Commission and the Department shall also 
refer to the Job Grade assignments of the officials in Section 10 hereof in 
making such Job Grade assignments. 
SEC. 35. Repeal of Special Salary and Related Laws and Regulations. 
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The provision of all laws, decrees, executive orders, corporate charters, 
rules, regulations, circulars, approvals, and other issuances, or parts 
thereof, that exempt any and all agencies, or specific types of employees, 
from the coverage of the Compensation and Position Classification 
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System prescribed under Presidential Decree No. 985, as amended; or 
that authorize and fix position classification, job classification, qualification 
standards, salaries, Base Pay, Allowances and Other Pay, and Incentives, 
of specified jobs, or groups of employees or of agencies, which are 
inconsistent with the Omnibus System; or that exempt the establishment 
and approval for position classification, job classification, qualification 
standards, salaries, Base Pay, Allowances and Other Pay, and Incentives, 
of specified jobs, or groups of employees or of agencies, from the 
jurisdiction and authority of the Commission andlor Department; including, 
but not limited to, Presidential Decree No. 1869; Republic Act No. 3591, 
as amended; Republic Act 6977, as amended; Republic Act No. 7227, as 
amended; Republic Act No. 7305; Republic Act No. 7306; Republic Act 
No. 7354; Republic Act No. 7400; Republic Act No. 7648; Republic Act 
No. 7653; Republic Act No. 7875, as amended; Republic Act No. 7907; 
Republic Act No. 7917; Republic Act No. 8041; Executive Order No. 286, 
series of 1995; Republic Act No. 8282; Republic Act No. 8289; Republic 
Act No. 8291; Republic Act No. 8293; 
Republic Act No. 8439; Republic Act No. 8494; Republic Act No. 8523; 
Republic Act No. 8748; Republic Act No. 8763; Republic Act No. 8799; 
Republic Act No. 9136; Republic Act No. 9241; and Republic Act No. 
9302, are hereby repealed. Presidential Decree No. 985, as amended, 
and Republic Act No. 6758, as amended, are hereby repealed. 
SEC. 36. General Repealing and Amendatory Clause. - All laws, 
decrees, executive orders, corporate charters, rules, regulations, circulars, 
approvals, and other issuances, or parts thereof inconsistent with the 
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provisions of this Act are hereby repealed, amended, or modified 
accordingly. 
ARTICLE VI1 
APPROPRIATION 
SEC. 37. Appropriations. - (a) The amount of Ten Billion Pesos 
(PlO,OOO,OOO,OOO.OO) 
is hereby appropriated to fund the initial 
implementation of this Act. Implementation hereof shall take no longer 
than four (4) years from approval, the amount of which shall be included in 
the annual General Appropriations Act, after taking into consideration the 
financial position of the National Government. 
(b) Government-owned or controlled corporations and financial institutions 
shall charge the implementation of this Act against their respective funds. 
Those which do not have sufficient funds shall implement this Act in 
staggered phases and using such established rates as may be jointly 
approved by the Commission and the Department. 
(c) Local government units, except for those able to obtain an exemption 
from the Commission and the Department, shall charge the 
implementation thereof to their respective funds. 
(d) It is understood that any staggered implementation of this Act shall be 
fixed at a percentage uniformly and proportionately applied to all 
employees in such agency, such that no employee shall receive a 
percentage adjustment higher than that of any oiher employee in the 
same agency. 
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ARTICLE Vlll 
PENAL PROVISIONS AND CIVIL LIABILITY 
SEC. 38. Prohibition Against Additional Compensation. - (a) The 
grant of Base Pay, Allowances and Other Pay, and Incentives in addition 
to those provided herein, or increases thereof, except as herein provided, 
is prohibited. 
(b) In order to preserve the independence and integrity of the Commission 
on Audit (COA), its employees are prohibited from receiving salaries, 
honoraria, bonuses, allowances or other emoluments from any agency, 
except those amounts paid directly by the COA out of its appropriations 
made pursuant to this Act. 
(c) Notwithstanding any law to the contrary, all agencies, including, without 
limitation, Government-owned and controlled corporations and financial 
institutions, local government units, the Office of the Solicitor General, the 
Office of the Government Corporate Counsel, and their successor- 
agencies, are prohibited from assessing or billing other agencies for 
services rendered by their employees as part of their regular functions, for 
purposes of paying additional compensation to said employees. 
SEC. 39. Penal Provisions - Without prejudice and in addition to the 
provisions of Republic Act No. 3019, otherwise known as the "Anti-Graft 
and Corrupt Practices Act" and other penal laws, public officers who 
commit any of the following acts shall suffer the penalty of imprisonment of 
not less than six (6) years and one (1) day, but not more than fifteen (15) 
years: 
(a) Granting, approving the grant, voting in favor of any decision 
granting or approving, or who otherwise affirmatively participate in 
the grant or approval of - (i) Unauthorized increases in Base Pay: 
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(ii) Allowances and Other Pay, and Incentives other than those 
enumerated under Sections 18 to 24; (iii) Increases in the standard 
rates prescribed by the Department for Allowances and Other Pay, 
and Incentives; and (iv) Increases in retirement pay and other 
separation benefits in violation of Section 29; 
(b) Granting, approving the grant, voting in favor of any decision 
granting or approving, or who otherwise affirmatively participate in 
the grant or approval of Productivity Incentive, CNA Incentive, and 
Other Benefits in violation of Section 32 andlor rules and 
regulations issued to implement Section 23; and 
(c) Soliciting additional compensation, for self or in behalf of other 
employees, from other agencies for services rendered in 
performance of regular functions. 
(d) Offering to give or actually giving additional compensation to 
employees of other agencies who render services in performance 
of regular functions, in violation of paragraphs (b) and (c) of Section 
28. 
SEC. 40. Civil Liability- A conviction under this Act or Republic Act No. 
3019 shall carry with it the civil liability to jointly and severally pay 
damages to the National Government equivalent to the amount illegally 
disbursed. 
ARTICLE IX 
FINAL PROVISIONS 
SEC. 41. lmplemenfing Rules and Regulations - The Commission and 
the Department shall, within ninety (90) days after the approval of this Act, 
jointly allocate all jobs in the government to their appropriate job titles and 
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Job Grades, assign each incumbent to the appropriate Step, and prepare 
and issue the necessary policy, rules, regulations, and guidelines to 
implement this Act. For this purpose, each agency covered by the 
Omnibus System shall submit to the Commission and the Department 
within thirty (30) days from the approval of this Act, all documents, data, 
and information necessary in the classification of jobs in their appropriate 
Job Grades and Step assignment of incumbents. 
SEC. 42. Separability Clause. - If, for any reason, any section or 
provision of this 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. 
SEC. 43. Effectivity, - 
This Act shall take effect fifteen (15) days after its 
publication in at least two publications of national circulation. 
Approved, 
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