EXECUTIVE ORDER NO. 389
EXECUTIVE ORDER NO. 389 -
IMPLEMENTING THE FOURTH AND FINAL YEAR SALARY INCREASES (AUTHORIZED BY
JOINT SENATE AND HOUSE OF REPRESENTATIVES RESOLUTION NO. 1, SERIES OF
1994)
WHEREAS, Congress through RA No.
8244 has appropriated the amount of Twenty-Seven Billion Pesos
(P27,000,000,000), or so much thereof as may be necessary, for the
fourth and final year of implementation of the salary increases
authorized by Joint Senate-House of Representatives Resolution No. 01,
Series of 1994, for all national government civilian and uniformed
personnel, in two (2) payments: 1) effective January 1, 1997 equivalent
to fifty percent (50%) of the unimplemented balance as of December 31,
1996 of the basic pay corresponding to the Salary Grade concerned, and
2) effective November 1, 1997 the remaining fifty percent (50%) of said
unimplemented balance to effect full salary adjustment;
WHEREAS, the government has adopted with some modifications the Salary
Schedule in the revised Compensation and Position Classification System
for the government recommended by Congress through said Joint
Resolution No. 01 for implementation within four (4) years or not later
than 1997;
WHEREAS, through said Joint Resolution the Senate and House of
Representatives have also categorically recognized and acknowledged the
authority of the President of the Philippines to revise the existing
Compensation and Position Classification System in the government under
the standards and guidelines therein provided;
WHEREAS, it has been determined more appropriate for an effective
compensation administration to adopt a 33-Grade Salary Schedule instead
of the 35-Grade Salary Schedule recommended by Congress;
WHEREAS, said Salary Schedule as modified to 33-Salary Grades was
partially implemented in 1994, 1995 and 1996 through Executive Order
Nos. 164, 218 and 290, respectively;
WHEREAS, consultations have also been made with various leagues of
local government units regarding the full implementation of the said
Salary Schedule.
NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Republic of the
Philippines, by virtue of the powers vested in me by the Constitution,
P.D. No. 985, P.D. No. 1597, RA No. 6758, RA No. 8244 and said Joint
Resolution No. 1 of Congress, do hereby order and direct:
Section 1. Salary Schedule. — The 35-Grade Salary
Schedule for Civilian personnel recommended by Congress through
Senate-House of Representatives Joint Resolution No. 1, s. 1994, and
adopted under Executive Order No. 164, dated March 7, 1994 with
modifications, is hereby modified to 33-Grades Salary Schedule
consistent with those prescribed in RA No. 6758.
Sec. 2. Full Implementation. — The Department of
Budget and Management is hereby directed to implement in full in FY
1997 the remaining balance of said Salary Schedule after the partial
implementation made of the same in 1994, 1995 and 1996 to Civilian and
uniformed personnel, as follows:
1.
For Civilian Personnel
a.
Effective January 1, 1997 = in accordance with the Fourth Interim
Salary Schedule hereto attached and marked as Annex A of this Order.
The adjustment shall be to the designated salary step of the employee
in the salary grade allocation of his position as of December 31, 1996;
b. Effective
November 1, 1997 = in accordance with the attached Salary Schedule
marked as Annex B of this Order. The adjustment shall be to the
designated salary step of the employee in the salary grade allocation
of his position as of October 31, 1997.
2. For
Uniformed Personnel
In
accordance with the attached Fourth Interim Salary Schedule marked as
Annex C of this Order for the implementation effective January 1, 1997
and with the Salary Schedule marked as Annex D for the full
implementation effective November 1, 1997.
Sec. 3. Coverage and Exemption. — This Order shall
cover only officials and employees of the National Government Agencies
(NGAs), Government-Owned and/or Controlled Corporations (GOCCs),
Government Financial Institutions (GFIs) and Local Government Units
(LGUs) whose basic salaries conform to the Third Interim Salary
Schedule prescribed under Executive Order No. 290, dated January 2,
1996. Officials and employees of agencies who are exempted by law from
the Compensation and Position Classification System and/or do not
follow the Salary Schedule prescribed for government personnel are not
entitled to the salary increases authorized herein.
Sec. 4. Salary Grade Allocation of Positions. —
The salary grade allocation of positions pursuant to RA No. 6758 shall
be maintained.
Sec. 5. Continuation of the Personnel Economic
Relief Allowance (PERA) and Additional Compensation (ADCOM). — The PERA
andOM authorized under R.A.. No. 7078 and Administrative Order No. 53,
respectively, shall continue to be paid as allowances and not
integrated into the basic pay.
Sec. 6. Transition Allowance. — The transition
allowance resulting from the implementation of RA No. 6758 and other
personnel and compensation actions thereafter, including the “over and
above allowance” of public school teachers and related personnel shall
be considered as advance payment of the salary increases authorized
herein; Provided, That, in the case of public school teachers and
related personnel said “over and above allowance” shall first be added
to the salary rate in the equivalent salary grade and step under the
Salary Schedule marked Annex B before determining the appropriate
salary step in the salary grade allocation of their position in the new
Salary Schedule.
Sec. 7. Allowances and Benefits Based on
Percentage of Basic Salaries. — Notwithstanding the salary increases
authorized herein, there shall be no corresponding increase in the
present allowances and benefits being received by officials and
employees which are based on a percentage of their basic salaries.
Sec. 8. Fibility for Local Government Units. —
Fibility is hereby given to each LGU to set its own schedule for the
implementation of the herein authorized salary increases depending on
its financial capability: Provided, That, the implementation of the
same shall be in accordance with the schedule prescribed for civilian
personnel in Section 1 hereof, and the percentage application under
Section 10 of RA No. 6758 strictly complied with.
Sec. 9. Separation from Government Service. — For
those who will be compulsorily separated from government service for
having reached the age of mandatory retirement, or due to death,
sickness/disability in 1997 but before the full implementation
effective November 1, 1997, their retirement/separation benefits,
gratuity and payment of accumulated leave credits shall be computed on
the basis of the salary rate in Salary Schedule in Annex B hereof
corresponding to their previous designated salary step; Provided, That,
those who will be compulsorily retired on account of having reached the
age of mandatory retirement will be given the option to retire pursuant
to RA No. 660 and the difference between the lump-sum amount that the
retiree will receive under RA No. 660 and the amount of retirement
benefit had the employee retired under RA 1616, shall be paid to the
retiring employee by the last employer.
Sec. 10. Funding Source. — The funding sources for
the amounts necessary to implement the herein authorized salary
increases shall be as follows:
a.
For NGAs, the amount shall be charged against the P27.0 Billion
appropriated for the purpose under said RA No. 8244 and accordingly set
aside for the purpose in their respective budgets for FY 1997.
b. For GOCCs
and GFIs, the amount shall be charged against their respective
corporate funds.
c. For LGUs,
the amount shall be charged against their respective funds.
GOCCs, GFIs and LGUs which do not have adequate or sufficient funds to
pay the salary increases prescribed herein, may only partially
implement the established rated; Provided, That, any partial
implementation shall be fixed at a uniform percentage such that no
official or employee shall receive a percentage adjustment higher than
that of any other official/employee in the same corporate entity and
local government unit.
Sec. 11. Prohibition. — Pursuant to Sec. 4 of
said RA No. 8244, the salary adjustment herein authorized shall not
benefit the President, the Vice President and Members of Congress.
Sec. 12. Implementing Guidelines. — The Department
of Budget and Management shall prepare and issue the necessary
guidelines for the implementation of this Executive Order.
Sec. 13. Effectivity. — This Executive Order shall
take effect January 1, 1997.
DONE in the City of Manila this
28th day of December in the year of Our Lord, Nineteen Hundred and
Ninety Six.
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