Question & AnswerQ&A (Commonwealth Act No. 402)
The primary purpose of Commonwealth Act No. 402 is to provide for the classification of civilian positions and standardization of salaries in the government.
It applies to all officers and employees of the National Government embraced in the classified and unclassified civil service, except certain officers such as elective officers, some appointed officers, employees stationed outside the Philippines, certain university officials, members of the Philippine Army in active service, persons in the U.S. military or civil service detailed to the Commonwealth, and employees declared confidential or highly technical by the President.
Positions are classified into ten grades, except for special groups provided in Section 5.
A 'class' means a position or group of positions sufficiently similar in duties and responsibilities, requiring the same education, experience, knowledge, and ability, with the same tests of fitness and rate of compensation applied equitably.
A 'grade' is a horizontal division with approximately the same compensation level and basic qualifications; the distinction being based on importance, difficulty, responsibility, and value of work. A 'group' is a vertical division of service embracing positions related to the same profession, vocation, employment, occupation, or specialization.
Grade 1 annual compensation rates range from P5,100 to P6,000 depending on the specific rate set.
Seven services are established: Administrative Service, Professional and Scientific Service, Educational Service, Navigation Service, Vigilance Service, Subprofessional Service, and Craft and Labor Service.
The Executive Group includes positions such as Department Secretaries, Secretary to the President, Commissioner of the Budget with specified fixed annual salaries, and various directors and commissioners as listed, each with defined compensation.
Compensation differentials are additional pay allowances for employees exposed to hazardous conditions, working in dangerous areas, shift work, or required to wear uniforms not provided by the government, with specific percentage limits and maximum amounts prescribed by the Salary Board.
The Salary Board consists of the Commissioner of Civil Service as Chairman, and the Commissioner of the Budget and Auditor General as members.
The board has powers to establish groups and grades, designate classes and duties, fix compensation rates, classify existing and new positions, ascertain job duties, and make necessary rules and regulations to implement the Act.
If salary is below minimum grade rate, it shall be increased to minimum; if within the range but not a fixed step, it is increased to the next higher rate; if salary exceeds the prescribed range, it shall not be reduced.
No, employees are prohibited from receiving any form of compensation from private persons for services rendered in their official capacity.
No payment of salary shall be allowed to employees occupying positions not properly classified and allocated by the board as required.
All original appointments are to be made at the minimum rate for the grade, except for Grade 10 where entrance salary may be fixed at the maximum rate by the board.