Question & AnswerQ&A (EXECUTIVE ORDER NO. 201)
The modified salary schedule applies to all civilian personnel in the Executive, Legislative, and Judicial branches, Constitutional Commissions and other Constitutional Offices, GOCCs not covered by RA No. 10149, and LGUs regardless of appointment status or basis of employment, excluding those engaged through contracts without employer-employee relationship.
The strategy includes 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.
Military and uniformed personnel receive a monthly provisional allowance, an officers' allowance, increased hazard pay, mid-year bonus, enhanced performance-based bonus, and productivity enhancement incentives.
Implementation is to be in four tranches starting January 1, 2016, with subsequent tranches on January 1 of 2017, 2018, and 2019. For GOCCs and LGUs, implementation depends on financial capability but should not be earlier than these dates.
The Mid-Year Bonus is equivalent to one month basic salary as of May 15, granted to government personnel who have rendered at least four months of satisfactory service and are still in service on that date.
LGUs must secure authorization from their sanggunian following RA No. 7160 provisions and observe the personnel services limitations also under RA No. 7160. Implementation must correspond to LGU income classifications with specified percentages of the national salary schedule.
No, individuals engaged through job orders, contracts of service, consultancy contracts, and service contracts with no employer-employee relationship are excluded from the salary increase and benefits authorized by the EO.
It strengthens the performance-based incentive system by enhancing the Performance-Based Bonus (PBB) with a progressive rate system based on agency and individual performance and responsibility.
The separability clause provides that the rest of the provisions unaffected shall remain valid and subsisting even if any part is declared invalid or unconstitutional.