Question & AnswerQ&A (EXECUTIVE ORDER NO. 31)
The main purpose is to grant compensation adjustments to government personnel to help them cope with the increasing cost of living, with special attention to the economic plight of public school teachers.
The order mandates an increase in basic salary by two salary steps, approximately equivalent to ten percent.
No, employees of government-owned and controlled corporations are excluded from the two-step salary increase and additional COLA under this order.
They are entitled to an additional two-step increase in basic pay, so effectively a total of four salary step increases or approximately 20%.
Employees with salary levels of P2,500 and below receive an additional COLA of P150 per month, while those earning between P2,501 and P3,000 receive P50 per month.
Employees of government-owned and controlled corporations and employees receiving cash emoluments other than standard basic pay and allowances under the National Compensation and Position Classification Plan are excluded from the additional COLA.
Funds can be sourced from salary lapses and personal services savings of the concerned agency, lump sum appropriations for salary increases in agency budgets, re-aligned funds from less-essential government activities, and the Salary Adjustment Fund authorized in the 1986 General Appropriations Act.
Yes, Local Government Units are authorized to grant the same increases subject to availability of funds and rules prescribed by the Joint Commission on Local Government Personnel Administration.
The order took effect on July 1, 1986.
The Ministry of Budget and Management is directed to formulate and issue the implementing rules and regulations.
Yes, local teachers' salaries and COLA are adjusted to match the level of national teachers as adjusted by the order.
CESOs and equivalent or higher positions are excluded from the general increase; a separate pay plan will be submitted by the Ministry of Budget and Management.
The Ministry is directed to study, review, upgrade, and revise the compensation structure for CESOs and equivalent positions consistent with providing adequate compensation.
Annex 1 lists agencies adopting the OP Pay Plan excluded from the salary adjustment; Annex 2 lists special pay plans of critical or OCPC-exempt agencies also excluded.