Question & AnswerQ&A (DBM NATIONAL BUDGET CIRCULAR NO. 489)
The Circular covers all officers and enlisted personnel of the AFP who are in active service, cadets of the Philippine Military Academy, officer candidates, and candidate soldiers.
Section 2 of RA 9166 provides for an increase in the rate of base pay of officers and enlisted personnel of the AFP and establishes equivalent Salary Grades for each rank in the AFP hierarchy.
The increase in base pay is implemented in three phases: 20% of the increment cost effective October 1, 2002; an additional 30% effective January 1, 2003; and the remaining 50% effective January 1, 2004.
From January to May 2003, funding shall come from 20% current appropriations savings of Major Services and KBUs of the AFP and 30% from RA 9162 Miscellaneous Personnel Benefits Fund. From June to December 2003, funding shall come from the specific appropriation in the FY 2003 GAA.
The Secretary of National Defense is prohibited from granting any adjustment in excess of the amounts authorized by the Circular unless allowed by law or executive order.
They shall be held liable for any payment of salary adjustment not in accordance with the Circular's provisions and may require refund of any excess payment by personnel concerned.
The Circular takes effect on January 1, 2003.
The base pay rates prescribed in the Second Interim Salary Schedule attached to the Circular shall be used as bases for payment of longevity pay, year-end bonus, and retirement benefits.
Cases not covered shall be referred to the Secretary of Budget and Management for resolution.