Question & AnswerQ&A (DBM LOCAL BUDGET CIRCULAR NO. 54)
The purpose is to prescribe rules and regulations for the initial implementation of the Revised Compensation and Position Classification System in local government, specifically providing for increased basic salaries of civilian personnel effective January 1, 1994.
All positions whether permanent, temporary, contractual, casual, emergency in nature, appointive or elective on full- or part-time basis now existing or hereafter created in the local government are covered.
Consultants and experts hired for limited periods, student laborers, apprentices, laborers hired as part of job contracts, those paid on piecework basis, including mail contractors, and others similarly situated are exempted.
Present salary means the actual basic salary rates received as of December 31, 1993, exclusive of Personnel Economic Relief Allowance (PERA), Additional Compensation, allowances, bonuses, honoraria, and other additional compensation.
Salary Grades 1 to 10 are increased by Eight Hundred Pesos (P800.00) per month, and Salary Grades 11 upwards by Seven Hundred Pesos (P700.00) per month effective January 1, 1994.
Transition allowance is the excess of the present salary over the eighth step of the grade allocation of the employee’s position.
They are entitled to salary adjustments; any excess of their adjusted salary over prescribed rates is treated as advance implementation of the Salary Schedule under Joint Senate and House Resolution No. 1, s. 1994 as adopted by Executive Order No. 164.
Appointments shall be at the first step of the salary grade allocation prescribed, but if the appointee previously received a higher salary under approved permanent appointment, existing salary rules apply.
No, salary adjustments do not apply to devolved national personnel until their salary rates equal those of their local counterparts.
No, PERA and Additional Compensation continue to be paid as allowances and are not integrated into the basic salary rates.
They are prohibited from granting any salary adjustment in excess of the amounts authorized in the Circular.
The amount shall come from the respective funds of the local government units and be provided in an appropriation ordinance enacted by the local Sangguniang Panlalawigan/Panlungsod/Bayan.
Implementation shall be partial and proportionate, with salary increase fixed at a uniform percentage so no official or employee receives a higher percentage increase than others in the same LGU, subject to salary equality provisions.
The Provincial Governor, City or Municipal Mayor concerned shall be responsible and held personally liable for any non-compliance or unauthorized salary payments.
Salary adjustments are subject to GSIS life and retirement insurance premiums and Home Development Mutual Fund (HDMF) contributions if the employee is a member, pursuant to RA 660 and CA 186.
Such cases should be referred to the Secretary of Budget and Management for resolution.
This Circular took effect on January 1, 1994.