Question & AnswerQ&A (EXECUTIVE ORDER NO. 40)
The purpose of Executive Order No. 40 is to implement the third tranche of the modified Salary Schedule for civilian personnel and the Base Pay Schedule for military and uniformed personnel in the Philippine government.
All positions for civilian personnel in the Executive, Legislative, and Judicial Branches, the 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 are covered.
Individuals and groups whose services are engaged through job orders, contracts of service, or others similarly situated, and civilian personnel in government entities exempted from RA No. 6758 that adopt and implement their own compensation and position classification systems approved by the Office of the President.
The third tranche monthly salary schedule for civilian national government personnel took effect on June 1, 2011.
Military personnel under the Department of National Defense (DND) and uniformed personnel under the Department of the Interior and Local Government (DILG), Philippine Coast Guard (PCG), and National Mapping and Resource Information Authority (NAMRIA) are covered.
It is determined by the sanggunian concerned based on the LGU income class and financial capability, with the salary rates not exceeding specified percentages of the rates for national government personnel and complying with personal services (PS) cost limitations under RA No. 7160.
For NGAs, funds shall be charged against appropriations under the Miscellaneous Personnel Benefits Fund in the FY 2011 GAA and available savings; for GOCCs and GFIs, funds shall come from respective corporate funds; and for LGUs, funds shall come from respective local government funds.
They shall implement salary schedules that are uniform percentages of the rates in the Annex A of the Executive Order.
Increases in compensation shall take effect only after the expiration of the full term of all the Members of the Senate and the House of Representatives who approved such increase, in accordance with Section 10, Article VI of the Constitution.
According to the Separability Clause in Section 9, the other provisions not affected thereby shall remain valid and subsisting.