QuestionsQuestions (LOCAL BUDGET CIRCULAR NO. 64)
To prescribe the rules and regulations governing the final phase of implementation of the revised Position Classification and Compensation System (PCCS) in local government units (LGUs) under Senate-House Joint Resolution No. 01, Series of 1994, adopted under Executive Order (EO) No. 389 dated December 28, 1996.
All positions in LGUs, whether permanent, temporary, contractual, casual, or emergency in nature; and whether appointive or elective; and whether full-time or part-time—existing or hereafter created.
Exempt are: (1) consultants and experts hired for a limited period with expected outputs; (2) student laborers, apprentices, and others similarly situated; and (3) laborers hired as part of a contract (pakiao), paid on piecework basis (including mail contractors), and others similarly situated. They continue to be compensated under existing applicable laws/rules until revised or amended.
It is the actual basic salary rates received as of Dec. 31, 1996 for the Jan. 1, 1997 adjustment and as of Oct. 31, 1997 for the Nov. 1, 1997 adjustment, inclusive of transition allowance but exclusive of PERA, ADCOM, RATA, year-end bonus/cash gift, honoraria, the 20% premium over basic pay of contractual personnel, and other additional compensation.
The excess of the present salary over the eighth step of the salary grade allocation of the employee’s position.
Effective January 1, 1997 in accordance with Fourth Interim Salary Schedules (Annexes A-1 to A-8); and effective November 1, 1997 in accordance with salary schedules in Annexes B-1 to B-8.
Under Sec. 8 of EO 389, each LGU may set its own schedule depending on its financial capability, including implementing the Annex B schedule earlier than Nov. 1, 1997 subject to relevant limitations.
The difference between Annex B and Annex A rates is subject to the Personnel Services limitation under Section 325(a) of RA 7160.
The salary grades prescribed under RA 6758 and the corresponding salary grade allocation of positions pursuant thereto must be maintained.
Incumbents receive the salary rates corresponding to their designated salary steps in the salary grade allocation as of Dec. 31, 1996 for the Jan. 1, 1997 adjustment and as of Oct. 31, 1997 for the Nov. 1, 1997 adjustment (as illustrated in the circular).
At the first step of the salary grade allocation of the position in the applicable salary schedule prescribed in item 5.1.
They are entitled to the same adjusted salary as their organic local counterpart personnel.
No. PERA and ADCOM continue to be paid as allowances and are not considered integrated into the basic salary rates in the salary schedules.
Transition allowance is considered advance payment for the authorized salary increase; any excess thereafter shall be deducted from whatever salary adjustments the employee may receive in the future.
Contractual employees whose salaries are paid out of lump-sum appropriations or project funds may be entitled to a premium not more than 20% of the adjusted minimum hiring rate of comparable regular positions.
Divide the monthly salary rate in the salary schedules by 22 working days, provided the total wages received in a month do not exceed the monthly salary rate.
Once implemented, the rates in the salary schedules plus transition allowance (if any) are the basis for computing retirement pay, year-end bonus, and other similar benefits, with a special rule for those compulsorily separated before full implementation effective Nov. 1, 1997.
Salary increases shall be partial and proportionate for all positions in the LGU concerned.
The employee has an option to retire pursuant to RA 660, but the last employer pays the difference between the lump-sum under RA 660 and the retirement benefit had the employee retired under RA 1616. If the employee opts to be compulsorily retired under RA 1616, only the retirement benefits under RA 1616 are paid.
The Local Chief Executive and/or the Sangguniang Panlalawigan/Panlungsod/Panlungsod/Bayan/Barangay are prohibited from granting any adjustment in excess of the amounts authorized in the circular.