Question & AnswerQ&A (LOCAL BUDGET CIRCULAR NO. 64)
All positions whether permanent, temporary, contractual, casual or emergency in nature, appointive or elective, on full-time or part-time basis now existing or hereafter created in local government units are covered.
Consultants and experts hired for limited period activities, student laborers, apprentices, laborers hired under contract (pakiao), those paid on piecework basis including mail contractors, and others similarly situated are exempted.
It means the actual basic salary rates received as of December 31, 1996 for adjustment effective January 1, 1997 and as of October 31, 1997 for adjustment effective November 1, 1997, inclusive of transition allowance but exclusive of PERA, ADCOM, RATA, year-end bonus, cash gifts, honoraria, the 20% premium for contractual personnel, and other additional compensations.
Transition allowance is the excess of the present salary over the eighth step of the salary grade allocation of the employee's position and is considered as advance payment for the salary increase authorized by the Circular.
Adjustments take effect on January 1, 1997 according to Annexes A-1 to A-8, and the final adjustment on November 1, 1997 as per Annexes B-1 to B-8.
Yes, LGUs have flexibility to set their own schedule depending on financial capability, but any implementation earlier than November 1, 1997 means the difference between the earlier and final salary rates will be subject to Personal Services limitation under Section 325(a) of RA 7160.
Salary grades in the schedule prescribed by RA 6758 and the corresponding salary grade allocation to positions shall be maintained as is.
The adjusted salary rates contained in the Salary Schedules plus any transition allowance shall be used as basis for computing retirement pay, year-end bonus, and similar benefits.
They are prohibited from granting any adjustment in excess of the amounts authorized by the Circular.