Question & AnswerQ&A (EXECUTIVE ORDER NO. 218)
The main purpose of Executive Order No. 218 is to implement the second year of the new salary schedule for government personnel, providing an increase of one thousand pesos (P1,000.00) over the basic monthly salaries as of December 31, 1994.
The order covers all officials and employees of the national government, government-owned and controlled corporations including government financial institutions, and local government units whose basic salaries conform to the new Salary Schedule prescribed under Executive Order No. 164.
No, officials and employees whose basic pay are higher than those prescribed under the new Salary Schedule are not entitled to the salary increase authorized by Executive Order No. 218.
Heads of all national government departments and agencies including GOCCs and LGUs shall not grant compensation adjustments in excess of the authorized amount of one thousand pesos (P1,000.00) over the basic monthly salary as of December 31, 1994.
The Personnel Economic Relief Allowance and additional compensation authorized under Administrative Order No. 53 shall continue to be paid as allowances and not integrated into the basic pay.
For national government entities, funds come from appropriations in the 1995 General Appropriations Act and savings from departments and agencies; for GOCCs, from their corporate funds; and for LGUs, from their local funds. Partial implementation is allowed if funds are insufficient, provided it is uniform and proportionate within each entity.
The compensation adjustment for these constitutional officials shall take effect only after the expiration of the terms of the present incumbents as provided under Section 6 of Article VII and Section 10 of Article VI of the Constitution.
The Department of Budget and Management is directed to implement the second interim Salary Schedule and prepare and issue the necessary guidelines for the implementation of this Executive Order.
The Executive Order took effect on January 1, 1995.