Title
Supreme Court
CPCS adoption for GOCCs under RA 10149
Law
Executive Order No. 203
Decision Date
Mar 22, 2016
Benigno S. Aquino III's Executive Order No. 203 establishes a comprehensive Compensation and Position Classification System (CPCS) and Index of Occupational Services (IOS) for government-owned and controlled corporations (GOCCs), ensuring standardized compensation and incentives while promoting financial sustainability and uniformity across the sector.

Q&A (EXECUTIVE ORDER NO. 203)

The Governance Commission for Government-Owned or -Controlled Corporations (GCG) is responsible for implementing and administering the CPCS for all GOCCs covered under Republic Act No. 10149.

No, Section 9 of Republic Act No. 10149 specifies that no GOCC shall be exempt from the coverage of the CPCS developed by the GCG, regardless of any contrary laws.

No, Governing Boards of all covered GOCCs, whether chartered or non-chartered, are prohibited from negotiating the economic terms of CBAs with their officers and employees under this Order.

There shall be no diminution of authorized salaries as of December 31, 2015, for incumbent officers and employees during the implementation of the CPCS.

Officers and employees covered by the CPCS who voluntarily retire or are separated may be granted early retirement incentives based on their years of service multiplied by a factor (1.00x, 1.25x, or 1.50x) of the Basic Monthly Pay (BMP), depending on whether their service years are under 20, between 20-30, or above 30 years.

Incentives outside the CPCS may be recommended to the President by the GCG only if the GOCC has fully paid all its taxes, declared and paid all required dividends under its charter or law, and has demonstrated good performance.

GOCCs subject to pending recommendations for abolition, dissolution, or privatization, and those not yet subjected to rationalization or reorganization, shall maintain their current compensation framework despite the effectivity of the CPCS.

The President of the Philippines approves the CPCS and IOS Framework for the GOCC sector as attached to Executive Order No. 203.

Incentives like the Program on Awards and Incentives for Service Excellence continue to be governed by the policies and guidelines of the Civil Service Commission (CSC) and other relevant laws, rules, and regulations.


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