Question & AnswerQ&A (EXECUTIVE ORDER NO. 40)
The third tranche of the modified Salary Schedule covers all positions for civilian personnel in the Executive, Legislative, and Judicial Branches, Constitutional Commissions/Offices, State Universities and Colleges, GOCCs, GFIs, and LGUs, whether regular, casual, or contractual in nature, appointive or elective, on full-time or part-time basis, now existing or hereafter created.
Excluded are (i) individuals and groups of people engaged through job orders, contracts of service, or others similarly situated; and (ii) civilian personnel in government entities exempted from RA No. 6758 and authorized by law to adopt their own compensation and position classification systems approved by the Office of the President.
The third tranche was implemented effective June 1, 2011, for personnel in NGAs, GOCCs, and GFIs.
The implementation for LGU personnel shall be determined by the sanggunian concerned based on the LGU income class and financial capability, with salary rates not exceeding specified percentages of the rates for national government personnel, ensuring no diminution in basic salaries and compliance with Personal Services cost limitations under RA No. 7160.
No increase in compensation for Members of the Senate and the House of Representatives shall take effect until after the expiration of their full term, in accordance with Section 10, Article VI of the Philippine Constitution.
For NGAs, funding comes from the Miscellaneous Personnel Benefits Fund in the FY 2011 GAA and from available savings; for GOCCs and GFIs, from their respective corporate funds; and for LGUs, from their respective local government funds.
They shall implement salary schedules at uniform percentages of the prescribed rates according to their financial capabilities to ensure uniform implementation despite insufficiency of funds.
The Executive Order took effect immediately upon its signing on April 29, 2011.
Military personnel under the Department of National Defense and uniformed personnel under the Department of the Interior and Local Government, Philippine Coast Guard, and National Mapping and Resource Information Authority are covered.