WHEREAS, it
is declared and adopted policy of the National Government to
standardize compensation of officials and employees of the national
government, in accordance with the Constitutional mandate, on the basis
of substantial similarity in duties and responsibilities and
qualification requirements for satisfactory performance of assigned
tasks; chanroblesvirtualawlibrary
WHEREAS, there are existing special salary laws, decrees, and other
approvals that authorize salary rates other than those in the National
Classification and Pay Plans;chanroblesvirtualawlibrary
WHEREAS, the proliferation of special salary laws is inimical to sound
public administration and complicates the process of salary adjustment
due to disparities and inflexibility in salary rates, pay ranges and/or
other forms of compensation;chanroblesvirtualawlibrary
NOW, THEREFORE, I FERDINAND E. MARCOS, President of the Philippines by
virtue of the powers vested in me by the Constitution, do hereby order
and decree:cralaw:red
Section 1. Statement of Policy. — It is hereby
declared policy that the officials and employees of the national
government, including the Judiciary, the Career Executive Service, the
Foreign Service, the Armed Forces, subordinate officials of
Constitutional Commissions, government owned or controlled
corporations, and state colleges and universities, shall be compensated
in accordance with a National Position Classification and Compensation
Plan approved by the President.
Section 2. Coverage. — The coverage of the position
classification and compensation systems established in Sec. 4 of P.D.
No. 985 is hereby amended to limit the exemptions mentioned therein to
the following officials: (a) elected officials and officers whose
compensation is fixed by the Constitution, (b) local government
officials and employees, who are governed by P.D. No. 1136.
Section 3. Repeal of Special Salary Laws and
Regulations. — All laws, decrees, executive orders and other issuances
or parts thereof, that exempt agencies from the coverage of the
National Compensation and Position Classification System as established
by P.D. No. 985 and P.D. No. 1285, or which authorize and fix position
classification, salaries, pay rates/ranges or allowances for specified
positions, to groups of officials and employees, or to agencies, that
are inconsistent with the position classification or rates in the
National Compensation and Position Classification Plan, are hereby
repealed.
Section 4. Salaries of Incumbents. — All positions
presently assigned salaries which have been fixed in special salary
laws, decrees, executive orders or other authorizations, shall continue
to be authorized said salaries until such time as the positions are
fully integrated within the national compensation and position
classification plan: Provided, That the Budget Commission shall issue
such rules and regulations as will assure an orderly transition into a
single national position classification and compensation system;
Provided, Further, that no incumbent of positions heretofore excluded
from the coverage of P.D. No. 985 and P.D. No. 1285, shall suffer a
reduction in total salary and allowances.
Section 5. Allowances, Honoraria, and Other Fringe
Benefits. — Allowances, honoraria and other fringe benefits which may
be granted to government employees, whether payable by their respective
offices or by other agencies of government, shall be subject to the
approval of the President upon recommendation of the Commissioner of
the Budget. For this purpose, the Budget Commission shall review on a
continuing basis and shall prepare, for the consideration and approval
of the President, policies and levels of allowances and other fringe
benefits applicable to government personnel, including honoraria or
other forms of compensation for participation in projects which are
authorized to pay additional compensation.
Section 6. Exemptions from OCPC Rules and
Regulations. — Agencies positions, or groups of officials and employees
of the national government, including government owned or controlled
corporations, who are hereafter exempted by law from OCPC coverage,
shall observe such guidelines and policies as may be issued by the
President governing position classification, salary rates, levels of
allowances, project and other honoraria, overtime rates, and other
forms of compensation and fringe benefits. Exemptions notwithstanding,
agencies shall report to the President, through the Budget Commission,
on their position classification and compensation plans, policies,
rates and other related details following such specifications as may be
prescribed by the President.
Section 7. Repealing Clause. — Any law or decree, or
parts thereof which are inconsistent herewith, are hereby repealed or
amended accordingly.
Section 8. Effectivity. — This Decree shall take
effect immediately.
Done in the City of Manila,
this 11th day of June, in the year of Our Lord, nineteen hundred and
seventy-eight.
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