QuestionsQuestions (EXECUTIVE ORDER NO. 150)
EO No. 150 cited Section 16, Article XII (GOCCs established in the interest of the common good, subject to economic viability) and Section 5, Article IX-B (Congress must standardize compensation of government officials and employees, including in GOCCs, considering responsibilities and qualifications).
RA No. 10149 mandates the GCG to classify GOCCs, conduct compensation studies and recommend to the President a competitive compensation system, and develop a CPCS applicable to officers and employees of GOCCs (whether under the Salary Standardization Law or exempt), subject to Presidential approval.
Yes. EO No. 150 states that the CPCS and IOS-G framework apply to all GOCCs, including their subsidiaries, unless excluded from coverage under RA No. 10149. It also clarifies the CPCS does not apply to GOCCs with approved abolition or deactivation orders.
The GCG may convert or revise existing position classification systems to align with the CPCS. After alignment, affected positions in GOCCs are allocated by the GCG to proper position titles and job grades in the IOS-G.
While recognizing workers’ rights to self-organization and collective bargaining, EO No. 150 prohibits governing boards of covered GOCCs from negotiating the economic terms and conditions of CNAs/CBAs with officers and employees.
CNA incentives must be guided by DBM policies and guidelines, and EO No. 150 provides that these incentives shall cover non-chartered GOCCs to promote uniformity of allowable incentives within the GOCC sector.
The monthly basic salary structure and related allowances/benefits/incentives become effective upon issuance of the corresponding authorization from the GCG. The GCG may set a uniform effectivity date across GOCCs, but it cannot be earlier than the effectivity date of EO No. 150.
No. Section 4 provides non-diminution of authorized salaries. It specifically states there shall be no diminution in existing authorized salaries of incumbent officers and employees, where authorized salaries are those duly authorized by the Office of the President and/or by law. A governing board approval alone is not considered “authorized.”
Section 5 states that existing compensation must be standardized according to the CPCS, and no additional compensation outside the CPCS may be granted by the GOCC governing board unless recommended by the GCG and approved by the President.
Section 6 provides that CPCS rates on contributions to the provident fund apply to all GOCCs, subject to rationalization measures outlined in the CPCS.
Section 7 mandates that all officers and employees automatically start at Step 1 of the prescribed monthly basic salary structures in the CPCS, unless otherwise provided therein. Adjustments in the progressions may be made subject to implementing guidelines issued by the GCG.
Yes. EO No. 150 provides that guidelines for higher rates of performance-based bonus for GOCCs in Categories 2 or 3 are subject to approval of the President.
Within ninety (90) days from effectivity, the GCG must submit to the Office of the President through the Executive Secretary a Consolidated CPCS Report summarizing authorizations issued by the GCG for all covered GOCCs and the status of implementation.
The GCG En Banc must review the CPCS three (3) years after its effectivity, and every three (3) years thereafter, considering GOCC performance, contribution to the national economy, and possible erosion in purchasing power due to inflation and other factors.
Under Section 10, compensation adjustments must come from the GOCC’s Personnel Services appropriations under its approved Corporate Operating Budget (COB). A GOCC is prohibited from sourcing payment from loans, sale of assets solely to fund compensation adjustments, or other analogous schemes. It also prohibits increasing service fees for compensating deficiencies and states compensation adjustments should not adversely affect programs/projects or performance targets.
For Category 1 GOCCs, they partially implement the salary schedule at a lower uniform percentage across all positions. For Categories 2 and 3, they must adopt the salary schedule of lower tiers or Category 1, depending on the determination by the GCG.
A GOCC that fails or refuses to implement the CPCS (or applicable lower amounts under affordability rules) undergoes mandatory action such as reorganization, merger, streamlining, abolition, or privatization under Section 5(a) of RA No. 10149, upon recommendation of its Supervising Agency. Affected employees are granted separation incentive pay rates based on years of government service (e.g., 1.00 x MBS for first 20 years; 1.25 x MBS for 20 years and 1 day to 30 years; 1.50 x MBS for 30 years and 1 day and above, multiplied by number of years as indicated), unless the GCG recommends lower rates to the OP.
EO No. 150 repeals EO No. 203 (s. 2016). All other orders, rules, regulations, issuances, or parts thereof inconsistent with EO No. 150 are repealed or modified accordingly.