Question & AnswerQ&A (EXECUTIVE ORDER NO. 201)
The main purpose of Executive Order No. 201 is to modify the salary schedule for civilian government personnel and authorize the grant of additional benefits for both civilian and military and uniformed personnel to ensure just and equitable compensation, align government salaries closer to the private sector, and attract and retain competent government employees.
The modified salary schedule applies to all civilian personnel in the Executive, Legislative and Judicial Branches, Constitutional Commissions and other Constitutional Offices, Government-Owned or Controlled Corporations (GOCCs) not covered by RA No. 10149, and local government units (LGUs), regardless of appointment status or employment basis. However, job orders, contracts of service, consultancy contracts, and service contracts with no employer-employee relationship are excluded.
Key strategies include raising the minimum salary for Salary Grade 1, bringing government pay closer to at least 70% of the private sector median, eliminating overlaps in salary grades, maximizing net take-home pay through additional benefits, and strengthening performance-based incentives.
They are entitled to a Mid-Year Bonus, Enhanced Performance-Based Bonus (PBB), and Productivity Enhancement Incentive. Military and Uniformed Personnel (MUP) also receive increased Hazard Pay, Provisional Allowance, and Officers’ Allowance.
The Enhanced PBB ranges from one to two months basic salary, granted based on the achievement of performance targets at agency and individual levels, with a progressive rate system recognizing higher responsibility and performance levels.
Implementation occurs in four tranches: first tranche starting January 1, 2016; second tranche on January 1, 2017; third tranche on January 1, 2018; and fourth tranche on January 1, 2019, with full implementation phased across these years in national agencies, GOCCs, and LGUs depending on financial capability.
LGUs must have authorization from their respective sanggunian and comply with Personnel Services limitations per RA No. 7160. The salary schedule implementation must correspond to the LGU’s income classification and shall not exceed set percentages of the national salary schedule.
Hazard Pay will increase from P240 monthly to P390 starting January 1, 2016; P540 by January 1, 2017; P690 by January 1, 2018; and P840 by January 1, 2019.
The Department of Budget and Management (DBM) recommends periodic revisions or updates to the CPCS, which the President may authorize under Presidential Decree No. 985 and Joint Resolution No. 4 (s. 2009).
No. Their salaries take effect only after the expiration of the incumbents' respective terms to uphold constitutional provisions regarding their compensation.