QuestionsQuestions (Republic Act No. 6758)
RA 6758 is entitled the “Compensation and Position Classification Act of 1989.” It prescribes a revised compensation and position classification system for the government.
It provides for equal pay for substantially equal work and bases pay differences on substantive differences in duties, responsibilities, and qualification requirements; it also directs due regard to prevailing private-sector rates for comparable work.
The Department of Budget and Management (DBM) is directed to establish and administer the unified system.
It applies to all positions, appointive or elective, full or part-time, existing or later created, in the government (Executive, Legislative, Judicial, and Constitutional Commissions), including LGUs, armed forces, and GOCCs and government financial institutions.
It includes corporations and financial institutions owned or controlled by the National Government, whether they perform governmental or proprietary functions.
Professional Supervisory (SG 9–33), Professional Non-Supervisory (SG 8–30), Sub-Professional Supervisory (SG 4–18), and Sub-Professional Non-Supervisory (SG 1–10).
These positions require thorough knowledge in the field of arts and sciences or learning acquired through completion of at least four (4) years of college studies.
The factors are: (1) education and experience required; (2) nature and complexity of work; (3) kind of supervision received; (4) mental/physical strain; (5) nature/extent of relationships; (6) kind of supervision exercised; (7) decision-making responsibility; (8) responsibility for accuracy of records/reports; (9) accountability for funds/properties/equipment; and (10) hardship, hazard, and personal risk.
DBM implements the prescribed Salary Schedule. It states that the monthly rates represent full compensation for full-time employment regardless of where work is performed, and part-time salaries are adjusted proportionately; it also provides for the daily wage computation (monthly/22).
It assigns salary grades: President (SG 33), Vice-President (SG 32), President of the Senate (SG 32), Speaker of the House (SG 32), Chief Justice (SG 32), Senators (SG 31), Members of the House (SG 31), Associate Justices (SG 31), and Chair/Member of Constitutional Commissions (SG 31 or SG 30 as specified). DBM may determine equivalents with guidelines.
For the President, Vice-President, President of the Senate, Speaker, Senators, and Members of the House, no increase takes effect even beyond 1992 until the Act is amended. Implementation for Assistant Secretaries and Undersecretaries is deferred by one year from effectivity, and for Secretaries until July 1, 1992. Retirement computation uses the authorized salary rates during the deferred period.
Incumbents whose aggregate compensation exceeds the standardized salary rate at effectivity continue receiving the excess as transition allowance. It is reduced by the amount of salary adjustment the incumbent receives in the future, and it is treated as part of basic salary for computing retirement pay, year-end bonus, and similar benefits.
No. If moved from a higher to a lower class, the employee shall not suffer a reduction in salary, provided it is not the result of disciplinary action or voluntary demotion.
Effective January 1, 1990, step increments are granted based on merit and/or length of service according to rules to be jointly promulgated by DBM and the Civil Service Commission.
All allowances are deemed included except: representation and transportation allowances; clothing and laundry allowances; subsistence allowance of marine officers/crew on board vessels and hospital personnel; hazard pay; allowances of foreign service personnel stationed abroad; and other additional compensation not otherwise specified as may be determined by DBM.
COA officials and employees are prohibited from receiving salaries, honoraria, bonuses, allowances, or other emoluments from any government entity, LGU, or GOCC/financial institution, except compensation paid directly by COA out of its appropriations and contributions. Agencies are also prohibited from billing others for services rendered to pay additional compensation to COA personnel.
LGU rates are based on class and financial capability, but cannot exceed specified percentages of the national salary schedule: Provinces/Cities (100% for special cities and 1st class), then municipal percentages decrease by class (e.g., 1st class 90%, 2nd class 85%, 3rd class 80%, 4th class 75%, 5th class 70%, 6th class 65%).
RA 6758 takes effect July 1, 1989. DBM must allocate all positions to proper titles and salary grades and issue necessary guidelines within 60 days after approval.