Question & AnswerQ&A (DBM NATIONAL COMPENSATION CIRCULAR NO. 74)
The purpose is to prescribe rules and regulations to govern the second year implementation of the new salary schedule in the government, as mandated under Executive Order No. 218, providing for a P1,000 increase over the monthly basic salaries of government personnel effective January 1, 1995.
All positions, whether permanent, temporary, contractual, casual or emergency in nature, appointive or elective, on full-time or part-time basis, in the national government, state universities and colleges, and government-owned and/or controlled corporations and financial institutions.
Exemptions include officials and employees of agencies exempt from the Position Classification and Compensation System, consultants and experts hired for specific activities, student laborers and apprentices, and laborers hired on piecework basis or similar arrangements.
It refers to the actual basic salary rates received as of December 31, 1994, excluding PERA, Additional Compensation, allowances, bonuses, honoraria, and other additional compensations usually paid in addition to basic salary.
Transition allowance means the excess of the present salary over the eight-step of the grade allocation of the employee's position.
The salary grades under RA 6758 are maintained; monetary values of salary steps are adjusted effective January 1, 1995; incumbents receive salary rates corresponding to their salary steps as of Dec 31, 1995; appointments from Jan 1, 1995 must be at first step unless prior salary is higher; PERA and Additional Compensation remain as allowances; contractual employees can receive up to 120% of minimum hiring rate of comparable regular positions; and wage rates for daily paid employees are based on dividing monthly salary by 22 working days.
Their salary adjustments take effect only after the expiration of their current term, with Senators' adjustments taking effect only after the term of all incumbent Senators.
For national government agencies, funds come from the Compensation Adjustment Fund and other appropriations under RA 7845 and the General Appropriations Act. For government corporations, funds come from their corporate funds, and insufficient funds allow for partial but uniform implementation.
Agencies must prepare a Plantilla of Personnel and Salary Adjustment Form certified correct, submit it within 30 days to the Compensation and Position Classification Bureau or relevant DBM Regional Office, which will verify and distribute certified copies to the Civil Service Commission, Commission on Audit, office of origin, and retain originals for records and audit.
They are responsible for the submission of required reports and may be held personally liable for any payment of salary adjustments not in accordance with the Circular, including refund of any excess payments by employees.