Question & AnswerQ&A (DBM NATIONAL BUDGET CIRCULAR NO. 483, OCTOBER 29, 2002)
The purpose of this Circular is to prescribe rules and regulations for the initial implementation of the new salary structure for officers and enlisted personnel of the Armed Forces of the Philippines (AFP) pursuant to Section 2 of Republic Act No. 9166.
This Circular covers all officers and enlisted personnel of the AFP who are in active service, cadets of the Philippine Military Academy, officer candidates, and candidate soldiers.
RA 9166 adjusts the rate of base pay of AFP officers and enlisted personnel according to assigned salary grades per rank, ranging from Candidate Soldier at Salary Grade 7 up to General at Salary Grade 30.
The rate of pay for each salary grade is equal to the base pay of Philippine National Police (PNP) uniformed personnel as adjusted under RA 8551, which is based on the salary schedule for civilian personnel under National Budget Circular No. 458, series of 1997.
The increase in base pay is implemented in three phases, with the initial phase effective no later than October 1, 2002, providing a uniform rate of 20% of the base pay increase authorized for each rank.
Present base pay refers to the base pay actually received by the AFP officers and enlisted personnel as of September 30, 2002, prescribed under Section 5.2.1 of NBC 474, corresponding to their designated ranks.
The salary adjustments took effect on October 1, 2002.
No, the Secretary of the Department of National Defense is prohibited from granting any adjustment in excess of the amounts authorized in this Circular unless allowed by law or executive order.
The necessary funds shall be charged against the appropriations savings of each Major Service and Key Budget Unit (KBU) of the AFP.
The Commanders of the Major Services and KBUs are responsible and may be held liable for any improper salary payments not in accordance with the Circular, including potential refund of excess payments by personnel concerned.
The adjusted base pay rates are also used as bases for computing longevity pay, year-end bonus, and retirement benefits, while existing rates for other allowances and collateral benefits remain unchanged.
Cases not covered by this Circular shall be referred to the Secretary of Budget and Management for resolution.