Question & AnswerQ&A (ADMINISTRATIVE ORDER NO. 282)
Republic Act No. 6758, also known as the Compensation and Position Classification Act of 1989, mandates the standardization of compensation in the government.
The President of the Philippines exercises general supervision over local government units to ensure their acts are within their prescribed powers and functions.
Section 81 of R.A. 7160 (The Local Government Code) provides that compensation in local government units as determined by the sanggunian must be circumscribed by R.A. 6758.
Administrative Order No. 42 clarified the authority of the Department of Budget and Management (DBM) to issue policies and guidelines on position classification and compensation in local government units and affirmed the adoption of the Compensation Standardization Law in local government units.
No, any grant of salary adjustments or other compensation inconsistent with the provisions of R.A. 6758 and related rules is strictly prohibited.
Officials responsible for violations of the Compensation Standardization Law and its implementing rules may be subjected to administrative and criminal sanctions.
They must ensure that budget allotments for personal services conform with existing rules, policies, and guidelines under the Compensation Standardization Law.
The review must be based on and in pursuance of the pertinent provisions, rules, and regulations of the Compensation Standardization Law.
Administrative Order No. 282 took effect immediately upon its adoption on June 25, 1996.
Section 5, Article IX-B and Section 4, Article V of the 1987 Constitution provide the mandate for compensation standardization and for the President's general supervision over local governments, respectively.