QuestionsQuestions (DBM NATIONAL COMPENSATION CIRCULAR NO. 74)
Its purpose is to prescribe the rules governing the second year implementation of the new government salary schedule mandated by Executive Order No. 218 (Jan. 1, 1995), which provides a P1,000 increase over the monthly basic salaries as of Dec. 31, 1994, effective Jan. 1, 1995.
All positions in the national government, state universities and colleges, and government-owned and/or controlled corporations and financial institutions, whether permanent, temporary, contractual, casual, or emergency; and whether appointive or elective; and full-time or part-time, both existing and hereafter created.
Officials and employees of agencies exempt from the Position Classification and Compensation System and/or that do not follow the government salary schedule; consultants and experts hired for limited periods with outputs (paid under existing laws until revised); student laborers/apprentices similarly situated; and laborers hired as part of a job/contract (pakiao), paid on piecework, including mail contractors, and similarly situated workers.
It means the actual basic salary rates received as of Dec. 31, 1994, exclusive of PERA, additional compensation, representation and transportation allowances, bonus and cash-gift, honorarium, and any other forms of additional compensation usually paid in addition to basic salary.
Transition allowance is the excess of the present salary over the eight-step of the grade allocation of the employee’s position. It affects the calculation because employees with transition allowance are entitled to salary adjustments authorized by the Circular.
Over-and-above allowance refers to additional compensation (other than basic salary) regularly paid monthly by LGUs to public school teachers prior to July 1, 1989, which was added over and above their basic salary. Employees with this allowance are likewise entitled to the authorized salary adjustments.
The excess is treated as advance implementation of the salary schedule contained under Joint Senate and House of Representatives Resolution No. 1 (s. 1994), as adopted by EO No. 164.
Incumbents shall receive the salary rates corresponding to their designated salary steps in the salary grade allocation of their positions as of Dec. 31, 1995.
They continue to receive the salary rate of their old salary grade allocation as of Dec. 31, 1994.
Appointments effective Jan. 1, 1995 and thereafter shall be at the first step of the salary grade allocation of the position. Exception: if the appointee previously received under an approved permanent appointment a salary higher than the first step, then existing salary rules apply.
No. The Circular expressly states that PERA and Additional Compensation shall continue to be paid as allowances and are not considered integrated into the basic salary rates in the Interim Salary Schedule.
Divide the monthly salary rate shown in the Interim Salary Schedule by 22 working days; however, the total wages received in a month must not exceed the monthly salary rate.
The rates in the Interim Salary Schedule (referenced in Item 5.1.1) are used as the basis for computing retirement pay, year-end bonus, and other similar benefits.
In line with Sections 6 and 10 of Articles VII and VI of the Constitution, salary adjustments for the President, Vice-President, and House Members take effect only after the expiration of their respective current term; and for Senators, only after the expiration of the term of all incumbent Senators.
Heads of agencies and corporate entities are prohibited from granting any adjustment exceeding the amounts authorized in the Circular. Practically, agencies cannot supplement or increase beyond the DBM-approved amounts.
For national government agencies, charges come against the Compensation Adjustment Fund and other appropriations under RA 7845 and the 1995 General Appropriations Act; any deficiency is charged against savings in agency appropriations. For government corporations, amounts come from corporate funds; if funds are inadequate, they may partially implement but must do so uniformly and proportionately for all positions in that corporation.
Upon receipt of the Notice of Cash Allocation (NCA), agencies shall pay the required salary adjustment. DBM releases the covering NCA needed to implement the salary adjustment under National Budget Circular No. 437.
Agencies must prepare a Plantilla of Personnel and Salary Adjustment Form (PPSAF); submit the original and three copies within 30 days after the grant for post-audit to the CPCB DBM or appropriate DBM Regional Office, certified correct by HR/Admin Officer and approved by the Head of Agency. The CPCB/Regional Office verifies and certifies, then distributes copies to the CSC regional/field office, COA, office of origin, and retains the original for records and control.
The head of the agency is held personally liable for salary adjustments not in accordance with the Circular, without prejudice however to the refund of any excess payment by the employee concerned.
Salary adjustments are subject to mandatory GSIS life and retirement insurance premiums and HDMF contributions for members, pursuant to RA 660 and CA 186.