QuestionsQuestions (EXECUTIVE ORDER NO. 201)
EO 201 cites: (1) Section 13 of Presidential Decree (PD) No. 985, and (2) Item 17(iv) of Joint Resolution No. 4 (s. 2009), which authorize the President, upon recommendation of the Department of Budget and Management (DBM), to periodically revise/update the CPCS and policies on levels of allowances, benefits, and incentives for government personnel.
EO 201 adopts: raising the minimum salary (SG 1) to be more competitive; bringing compensation closer to private-sector medians (at least 70%); eliminating overlaps between salary grades to reflect differences in duties; maximizing net take-home pay through additional benefits; and strengthening performance-based incentives. The purpose is to ensure just/equitable compensation, equal pay for work of equal value, and competitiveness to attract and retain competent civil servants.
It applies to all civilian personnel in the Executive, Legislative, and Judicial Branches, constitutional commissions and offices, GOCCs not covered by RA 10149, and LGUs—regardless of appointment status (regular/contractual/casual), whether appointive or elective, and whether full-time or part-time.
Included: civilian personnel and military/uniformed personnel within the specified coverage. Excluded: persons whose services are engaged through job orders, contracts of service, consultancy contracts, and service contracts with no employer-employee relationship (they are excluded from the salary increase and benefits authorized).
The Mid-Year Bonus, Enhanced Performance-Based Bonus (PBB), and Productivity Enhancement Incentive apply to both civilian personnel and MUP. The increase in Hazard Pay applies only to MUP.
EO 201 provides four (4) tranches implemented in national agencies starting: (1) January 1, 2016 (first tranche), (2) January 1, 2017 (second), (3) January 1, 2018 (third), and (4) January 1, 2019 (fourth), subject to appropriations by Congress.
Beginning FY 2016, a Mid-Year Bonus equivalent to one (1) month basic salary as of May 15 is granted to those who have rendered at least four (4) months of satisfactory service and are still in the service as of May 15. It is given not earlier than May 15 of every year.
EO 201 enhances PBB to one (1) month basic salary up to two (2) months basic salary, implemented in two (2) phases starting FY 2017. It is subject to meeting performance targets/commitments and compliance with good governance and other conditions; the amount uses a progressive rate system based on performance levels.
It is given beginning FY 2016 not earlier than December 15 each year, at five thousand pesos (P5,000) each, to qualified government employees to improve productivity.
It is a monthly Provisional Allowance granted to MUP in four (4) tranches in lieu of increases in base pay. It is interim because it is meant to supplement total compensation until the Base Pay Schedule is rationalized considering pension implications of base pay adjustments for personnel in active service.
Hazard Pay increases from P240 per month to: (1) P390 starting January 1, 2016; (2) P540 by January 1, 2017; (3) P690 by January 1, 2018; and (4) P840 by January 1, 2019.
EO 201 grants an Officers’ Allowance to specified MUP ranks listed in the EO for DILG, DND, BJMP/BFP, PNP/PPSC, PCG, and NAMRIA. It is also an interim measure until the Base Pay Schedule is modified and rationalized.
LGUs may receive the compensation adjustments only subject to: (1) authorization from their respective sanggunian under RA 7160 (Sections 447(a), 458(a), and 468(a)), and (2) compliance with PS limitation under RA 7160 (Sections 325 and 331). LGUs must also follow income-classification-based limits so that allowances/implementation percentages do not exceed the prescribed percentage of the salary schedule.
EO 201 allows partial implementation for GOCCs and LGUs with insufficient funds, but any partial implementation must apply at a uniform percentage across all positions for every GOCC/LGU.
EO 201 takes effect immediately upon publication. However, for the first tranche, the modified salary schedule for civilian personnel (and related allowances for MUP) is retroactively effective January 1, 2016.
Yes. EO 201 exempts: (i) government agencies/GOCCs exempted from RA 6758 coverage under their enabling laws/charters; and (ii) GOCCs governed by the CPCS established by the Governance Commission for GOCCs (GCG) and approved by the President under RA 10149—these are governed by their own CPCS.