Question & AnswerQ&A (EXECUTIVE ORDER NO. 150)
The Governance Commission for GOCCs (GCG) is mandated to develop, administer, and oversee the implementation of the CPCS for GOCCs.
The CPCS applies to all GOCCs, Government Financial Institutions (GFIs), Government Instrumentalities with Corporate Powers (GICPs)/Government Corporate Entities (GCEs), including their subsidiaries, except those excluded from coverage under RA No. 10149 or those with approved abolition or deactivation orders.
No. The Governing Boards of covered GOCCs are prohibited from negotiating the economic terms and conditions of CNAs/CBAs with their officers and employees; these are governed by policies set by the Department of Budget and Management (DBM).
Section 4 states that there shall be no diminution or reduction of the authorized salaries of incumbent officers and employees, referring to salaries authorized by the Office of the President or by law.
Funding depends on the GOCC's financial capability and approved corporate operating budget. GOCCs cannot source payment from loans, asset sales solely for compensation adjustments, or analogous schemes, and are prohibited from increasing service fees to cover these costs.
Such a GOCC shall undergo mandatory action including reorganization, merger, streamlining, abolition, or privatization upon recommendation of its supervising agency and must grant separation incentive pay to affected employees as specified in the order.
The GCG is authorized to grant ERI for voluntary retirements and SIP for involuntary separations based on prescribed rates calculated on years of service and monthly basic salary, in addition to existing retirement or separation benefits.
The CPCS shall be reviewed three years after its effectivity and every three years thereafter by the GCG En Banc, considering performance, economic contribution, and inflationary factors.
No additional compensation outside the CPCS shall be granted by the GOCC Governing Board unless recommended by the GCG and approved by the President.