Question & AnswerQ&A (NEA MEMORANDUM NO. 2008-009)
The primary purpose is to upgrade the Salary Scale of employees of Electric Cooperatives to provide them with a competitive package aligned with industry standards and the prevailing compensation levels, thus ensuring a high level of responsibility and accountability.
The prevailing poverty threshold as determined by the country's economic managers, the minimum wages adopted by the Regional Wage Boards, and three prospective wage orders were considered in preparing the new salary scale.
The policy establishes a salary guide serving as a basis for providing just and equitable wages according to the cooperatives' classification and financial standing, ensuring salaries are never lower than the minimum wage or salary provided by the Labor Code or DOLE Regional Wage Boards.
Upon management recommendation and Board deliberation, the Board adopts the revised salary schedule through a resolution; they then submit this resolution along with the Plantilla of Personnel and a three-year projected cash flow to NEA for review and evaluation of the EC's financial capability to sustain adjustments.
The Board Resolution, Plantilla of Personnel with existing and proposed salaries, and a three-year projected cash flow must be submitted for NEA's review.
They should be submitted by the first semester of the year, complying with NEA Memorandum No. 2006-023.
The EC management is required to automatically adjust salaries to incorporate the difference, using the Retail/Service Group category as mandated in the Wage Orders.
No, the salary guide is not a mandated benefit and does not automatically entitle employees to additional compensation beyond approved salary increases in the Collective Bargaining Agreement, to avoid impairing the EC's financial viability.
Adoption is suspended if the cooperative posted a cumulative net loss for six consecutive months preceding the evaluation, if performance per Key Performance Indicators shows marked decline compared to the previous year, or if the cooperative retrogresses in its categorization.
No, across-the-board salary increases are not allowed as they are found to be counter-productive.
Yes, merit-based yearly salary step increases within the approved salary scale can be implemented by EC management without NEA approval but must be submitted to the NEA Finance Department for budgetary monitoring.
The EC must submit the modified salary scale to NEA for final approval before implementation.
No, ECs must not increase power rates to accommodate additional cash outlays for salary upgrades.
The guidelines took effect fifteen (15) days after submission of copies to the University of the Philippines Law Center, as required by Executive Order No. 292.