Question & AnswerQ&A (DBM NATIONAL BUDGET CIRCULAR NO. 468)
The circular prescribes rules and regulations for implementing a 10% salary adjustment to all government personnel effective January 1, 2000, as mandated by Executive Order No. 219 dated March 20, 2000.
All government personnel in the national government, state universities and colleges, and government-owned or controlled corporations and financial institutions, including permanent, temporary, contractual, casual, emergency, appointive or elective, full-time or part-time positions.
Officials and employees of agencies exempt from the Position Classification and Compensation System or those who do not follow the prescribed salary schedule, and uniformed personnel of the Philippine National Police.
It is the actual basic salary rate received as of December 31, 1999, excluding allowances such as Personnel Economic Relief Allowance, Additional Compensation, Representation and Transportation Allowances, bonuses, honoraria, and the 20% premium for contractual personnel but including transition allowance.
Transition allowance refers to the excess of the present salary over the eighth step of the employee's salary grade allocation.
The salary grades remain unchanged, but the monetary value of each salary step is increased as per the new salary schedule effective January 1, 2000. Incumbents receive the salary rates corresponding to their designated salary steps.
Contractual employees, including those seconded to Foreign-Assisted Projects, shall receive salary adjustments according to their comparable regular provisions in RA 8760 and other guidelines; however, they are no longer entitled to the 20% premium over basic pay.
The monthly salary rate is divided by twenty-two working days, but the total monthly wages shall not exceed the monthly salary indicated in the salary schedule.
Heads of national government agencies and corporate entities are prohibited from granting any salary adjustment exceeding the amounts authorized by the Circular.
They take effect only after the expiration of their respective current terms, and for Senators, only after the expiration of the term of all incumbent Senators, in accordance with the Constitution.
For national government agencies, funds come from savings and the Salary Adjustment Fund under RA 8760 and the 2000 General Appropriations Act; agencies with fiscal autonomy use funds released pursuant to National Budget Circular No. 466; for government corporations, funds come from their corporate funds.
Agency heads are responsible for submitting required reports and can be held personally liable for unauthorized salary adjustment payments, including refunding any excess payment by employees.
Yes, salary adjustments are subject to GSIS life and retirement insurance premiums and Home Development Mutual Fund (HDMF) contributions if the recipient is a member, pursuant to RA 660 and CA 186.
Government corporations and financial institutions must prepare a Plantilla of Personnel and Salary Adjustment Form certified by the Human Resource Officer and Head of the agency, submitted within 30 days to the Budget and Management Bureau for examination and certification, with copies furnished to the CSC, COA, and the agency.