Question & AnswerQ&A (LETTER OF IMPLEMENTATION NO. 104)
The main purpose is to authorize and implement the Standard Compensation and Position Classification Plans for the Financial Institutions group of government-owned or controlled corporations in the Philippines.
The Financial Institutions group includes the Central Bank of the Philippines, Development Bank of the Philippines, Government Service Insurance System, Home Financing Corporation, Land Bank of the Philippines, Philippine Amanah Bank, Philippine Deposit Insurance Corporation, Philippine Veterans Investment Development Corporation, Philippine National Bank, and Social Security System.
Presidential Decree No. 985 mandated the standardization of compensation for government officials and employees including those in government-owned or controlled corporations.
The position classification plan for each corporation shall be determined based on pre-determined standards/factors and approved by the Minister of the Budget pursuant to P.D. No. 985.
Compensation depends on the asset size and overall financial performance of the corporation, with maximum levels of basic salary set for Governor/Chairman/President, Senior Deputy Governor/Vice-Chairman/Executive Vice President, and Deputy Governor/Senior Vice President/Supervising Governor.
The Central Bank of the Philippines enjoys a 10% salary advantage over compensation received by the other financial institutions.
No, salaries of subordinate positions must be less than those of superior positions.
Allowances include a cost of living allowance of 40% basic pay or P300 per month, children’s allowance of P30.00 per child (up to 4 children), amelioration allowance of 10% basic pay or P50 per month, meal subsidy of P3.00 per day per officer/employee, and existing representation and transportation allowances. No profit sharing or bonus payments can be made without approval of the Compensation Committee.
A maximum three-step salary increase is allowed, following the position classification plan and compensation schedule approved under this Letter.
No, government subsidies or equity investments shall not be approved to finance any salary increase.
Corporations incurring losses in 1978 must prepare an implementation schedule with a profit plan, subject to case-to-case approval by the Ministry of the Budget.
They took effect on May 1, 1979.