Question & AnswerQ&A (EXECUTIVE ORDER NO. 389)
The primary purpose is to implement the fourth and final year salary increases authorized by Joint Senate and House of Representatives Resolution No. 1, Series of 1994, for all national government civilian and uniformed personnel.
Twenty-Seven Billion Pesos (P27,000,000,000) or as much as necessary for the fourth and final year of salary increases.
The salary increases are implemented in two payments: 50% effective January 1, 1997, and the remaining 50% effective November 1, 1997.
The Executive Order modified the 35-Grade Salary Schedule recommended by Congress to a 33-Grade Salary Schedule for effective compensation administration.
Officials and employees of National Government Agencies (NGAs), Government-Owned or Controlled Corporations (GOCCs), Government Financial Institutions (GFIs), and Local Government Units (LGUs) whose basic salaries conform to the Third Interim Salary Schedule under Executive Order No. 290.
Officials and employees of agencies exempted by law from the Compensation and Position Classification System and/or do not follow the prescribed Salary Schedule for government personnel are not entitled to the salary increases.
PERA and ADCOM shall continue to be paid as allowances and are not integrated into basic pay.
The salary grade allocation of positions pursuant to RA No. 6758 shall be maintained without change.
Their retirement/separation benefits are computed based on the salary rate in the Annex B Salary Schedule corresponding to their salary step, with special options for those retiring due to mandatory retirement under RA No. 660.
No, pursuant to Section 4 of RA No. 8244, the salary adjustment shall not benefit the President, Vice President, and Members of Congress.
LGUs have the flexibility to set their own schedule for implementing the salary increases depending on their financial capability, provided they comply with the prescribed schedule and percentage rules under Section 10 of RA No. 6758.
The DBM is directed to implement in full the remaining balance of the Salary Schedule adjustments and to prepare and issue guidelines for the implementation of this Executive Order.
They may only partially implement the salary increases but must ensure that no official or employee receives a higher percentage adjustment than others within the same entity or unit.