Law Summary
General Approach to Compensation
- Adoption of a new compensation schedule and longevity pay scale to adjust for increased cost of living and align with private sector compensation.
- Codification of provisions on quarters, subsistence, and clothing allowances as part of the employment terms.
Compensation and Longevity Pay Schedule
- Detailed monthly base pay and longevity pay for ranks from General to Second Lieutenant and corresponding enlisted personnel from Master Sergeant to Private First Class.
- Specific figures provided for each rank with categorized longevity pay increments based on years of service.
- Special compensation for probationary second lieutenants, cadets, and trainees also set.
Allowances
- Quarters Allowance: Monthly allowances for quarters provided to officers and enlisted personnel, scaled according to rank.
- Subsistence Allowance: Daily subsistence allowances set at P10.00 for cadets and flying trainees, P6.00 for other AFP personnel including trainees and draftees.
- Additional subsistence allowances for personnel on 24-hour alert status and for sea duty at varying rates.
- Clothing Allowance: Initial clothing allowance in kind at enlistment and cash equivalent for reenlistment upon certification of minimum clothing standards.
- Provision for cash settlement of clothing allowance for intelligence personnel and those required to wear civilian clothes, subject to approval.
- Additional reenlistment clothing allowance and an annual basic clothing allowance paid either in cash or kind.
Application to Other AFP Components
- Provisions for quarters, subsistence, and clothing allowances also apply appropriately to commissioned officers of the Bureau of Coast and Geodetic Survey.
Implementation Rules and Amendments
- Implementation rules to be promulgated by the Minister of National Defense.
- Any changes in salary, longevity, and allowances must receive prior approval from the President based on recommendations from the Minister of National Defense and Minister of the Budget.
Continuity of Other Benefits
- Existing allowances and benefits such as combat pay, hazard pay, retirement benefits and others not covered by this letter continue under existing laws and directives.
Funding
- Salary increases funded through AFP budget allocations; deficiencies covered by salary lapses, savings, salary adjustment funds, and budgetary reserves as necessary.
Effective Date
- Salary and longevity pay increases take effect retroactively from May 1, 1979.