Title
Revised LGU Salary and Position Classification Guidelines
Law
Dbm Local Budget Circular No. 54
Decision Date
Mar 9, 1994
The DBM Local Budget Circular No. 54 establishes guidelines for the initial implementation of the Revised Compensation and Position Classification System in local government, mandating salary increases for civilian personnel effective January 1, 1994, with specific provisions for various employment types and funding sources.

Questions (DBM LOCAL BUDGET CIRCULAR NO. 54)

To prescribe the rules and regulations governing the initial implementation in the local government of the Revised Compensation and Position Classification System mandated by Executive Order No. 164—specifically the increase in basic salaries effective January 1, 1994.

Salary Grades 1 to 10: P800.00 per month; Salary Grades 11 upwards: P700.00 per month.

All positions—permanent, temporary, contractual, casual, or emergency; appointive or elective; full-time or part-time—now existing or thereafter created.

Examples: (1) consultants and experts hired for limited periods with expected outputs; (2) student laborers, apprentices, and others similarly situated; (3) laborers hired as part of a job contract (pakiao), paid on piecework basis (including mail contractors), and others similarly situated.

The actual basic salary rates received as of December 31, 1993 excluding PERA, additional compensation, representation and transportation allowances, bonus and cash gift, honorarium, and any other form of additional compensation.

The excess of the present salary over the eight step of the grade allocation of the employee’s position.

January 1, 1994.

Incumbents receive the salary rates corresponding to their designated salary steps in the salary grade allocation of their positions as of December 31, 1993.

They are likewise entitled to the authorized salary adjustments; the excess of their adjusted salary over the prescribed salary rates is treated as advance implementation of the salary schedule under Joint Senate and House Resolution No. 1, s. 1994 as adopted by EO No. 164.

At the first step of the salary grade allocation of the position prescribed under Section 5.1.

Existing salary rules apply (i.e., the appointee may retain a salary higher than the first step rather than being forced to the first step).

The salary adjustment authorized and subsequent increases do not apply to devolved national personnel until the salary rates of their local counterparts have equalled their salary rates.

No. They continue to be paid as allowances and are not considered integrated into the basic salary rates in the salary schedule.

They may be entitled to not more than 120% of the adjusted minimum hiring rate of comparable regular positions.

By dividing the monthly salary rate in the Interim Salary Schedules by 22 working days, but ensuring the total wages in a month do not exceed the monthly salary rate.

The rates in the Interim Salary Schedules are used for computing retirement pay, year-end bonus, and other similar benefits.

The Local Chief Executive and the relevant Sangguniang Panlalawigan/Panlungsod/Panlungsod/Bayan are prohibited from granting any adjustment beyond the amounts authorized in the Circular.

From the respective funds of the LGU; the amount must be provided through an appropriation ordinance enacted by the local Sangguniang Panlalawigan/Panlungsod/Bayan.

Implementation is partial and proportionate for all positions; the salary increase is fixed at a uniform percentage so no official or employee in the same LGU receives a higher percentage increase than others, subject to Section 5.5.

The Provincial Governor or City/Municipal Mayor is responsible for submission of required reports; he is personally liable for any salary adjustment payment not in accordance with the Circular, without prejudice to refund by the employee concerned.


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