Legal basis and policy purposes
- The Letter directs, orders, and instructs the adoption of a compensation adjustment for uniformed AFP personnel.
- It recognizes that the international energy crisis increased the cost of imported oil and contributed to a higher general level of consumer prices.
- It requires salary adjustment of government personnel to reflect increases in cost of living and to keep in step with private sector compensation levels.
- It mandates rationalization of the system of emoluments and allowances for AFP uniformed personnel.
- It relies on the Minister of the Budget’s study directed under Letter of Instructions No. 840, conducted in coordination with the Minister of National Defense, and incorporates the resulting recommendation.
Scope and covered personnel
- The Letter covers the system of emoluments and allowances for officers and enlisted men of the Armed Forces of the Philippines.
- It covers commissioned officers of the Bureau of Coast and Geodetic Survey as part of the employment compensation framework when appropriate.
- It covers cadets of the Philippine Military Academy and cadets of the Philippine Air Force Flying School.
- It covers trainees of the Armed Forces of the Philippines.
- It covers the compensation of probationary second lieutenants.
- It covers ROTC cadets during summer camp training or assembly/mobilization tests.
- It covers draftees and trainees undergoing military training under the subsistence allowance rules.
Compensation schedule and longevity pay
The Letter adopts a new compensation schedule and a new longevity pay scale for AFP uniformed personnel.
Section 3.0 sets the compensation schedule and longevity pay schedule for:
- officers and enlisted men of the AFP; and
- their equivalents in the Philippine Navy; and
- the commissioned officers of the Bureau of Coast and Geodetic Survey.
The compensation schedule provides monthly base pay and a longevity pay structure by rank/grade.
Officers’ longevity pay values are set in steps 1, 2, 3, 4, 5 (Monthly), and enlisted personnel have corresponding longevity-grade rates as listed below.
Officers — General (monthly): P4404 base pay; longevity pay (grades 1–5): P440, P925, P1458, P2044, P2202 (Monthly).
Officers — Lieutenant General (monthly): base pay 3795; longevity pay (grades 1–5): 380, 797, 1257, 1762, 1898.
Officers — Major General (monthly): base pay 3270; longevity pay (grades 1–5): 327, 687, 1083, 1518, 1635.
Officers — Brigadier General (monthly): base pay 2818; longevity pay (grades 1–5): 282, 592, 933, 1308, 1409.
Officers — Colonel (monthly): base pay 2199; longevity pay (grades 1–5): 220, 462, 728, 1021, 1100.
Officers — Lieutenant Colonel (monthly): base pay 1894; longevity pay (grades 1–5): 190, 398, 627, 879, 947.
Officers — Major (monthly): base pay 1555; longevity pay (grades 1–5): 156, 327, 515, 721, 777.
Officers — Captain (monthly): base pay 1211; longevity pay (grades 1–5): 122, 255, 401, 562, 606.
Officers — First Lieutenant (monthly): base pay 992; longevity pay (grades 1–5): 100, 209, 329, 461, 496.
Officers — Second Lieutenant (monthly): base pay 774; longevity pay (grades 1–5): 78, 163, 257, 360, 387.
Enlisted personnel — Master Sergeant (monthly): base pay P 448; longevity pay (grades 1–5): P 45, P 95, P 149, P 208, P 224 (Monthly).
Enlisted personnel — Technical Sergeant (monthly): base pay 405; longevity pay (grades 1–5): 41, 86, 135, 188, 203.
Enlisted personnel — Staff Sergeant (monthly): base pay 367; longevity pay (grades 1–5): 37, 78, 122, 171, 187.
Enlisted personnel — Sergeant (monthly): base pay 332; longevity pay (grades 1–5): 34, 70, 110, 155, 166.
Enlisted personnel — Corporal (monthly): base pay 301; longevity pay (grades 1–5): 31, 64, 100, 140, 151.
Enlisted personnel — Private First Class (monthly): base pay 286; longevity pay (grades 1–5): 29, 58, 91, 127, 136.
Probationary and cadet compensation
- The compensation schedule for probationary second lieutenants, cadets, and trainees follows the set amounts below.
- Cadets and trainees — Philippine Military Cadets: P 520 monthly.
- Cadets and trainees — Philippine Air Force Flying Cadets: 520 monthly.
- Cadets and trainees — Probationary Second Lieutenant: 520 monthly.
- Cadets and trainees — First Class Trainee: 145.
Quarters, subsistence, and clothing allowances
Officers and enlisted men receive quarters allowance in addition to basic salary under the following monthly scale:
- General: P360 monthly
- Lieutenant General: 340 monthly
- Major General: 300 monthly
- Brigadier General: 280 monthly
- Colonel: 240 monthly
- Lieutenant Colonel: 210 monthly
- Major: 180 monthly
- Captain: 160 monthly
- First Lieutenant: 140 monthly
- Second Lieutenant: 130 monthly
- Master Sergeant: P100 monthly
- Technical Sergeant: 100 monthly
- Staff Sergeant: 90 monthly
- Sergeant: 90 monthly
- Corporal: 80 monthly
- Private First Class: 80 monthly
- (The allowance scale also includes Private: 80.)
Subsistence allowance is paid at:
- P10.00 daily to cadets of the Philippine Military Academy and the Philippine Air Force Flying School; and
- P6.00 daily to other personnel of the AFP, including officers, enlisted men, trainees undergoing military training, draftees, probationary second lieutenants/ensigns, ROTC cadets on summer camp training, and those on assembly/mobilization tests.
Additional subsistence allowance is paid to officers, enlisted personnel, probationary second lieutenants/ensigns, draftees, and trainees on duty at specified locations and alert conditions, at P1.00 daily.
For AFP personnel on sea duty, subsistence additional rates apply as follows:
- Philippine Navy officers and probationary ensigns: P2.00 daily; and
- enlisted personnel, draftees and 20 year old trainees: P1.00 daily.
Initial clothing allowance for original enlistment is given in kind under Ministry of National Defense Circular No. 18 dated February, 1975.
Initial clothing allowance for reenlistment must be paid in cash equivalent to the total present cost of prescribed clothing items under Paragraph 3a of Ministry of National Defense Circular No. 18 (February, 1975).
Reenlistment cash payment is allowed only if the reenlistee has the Minimum clothing requirements certified by the reenlistee’s immediate Commanding Officer.
The orders of discharge and reenlistment are required to support the claim for cash payment.
Enlisted personnel performing intelligence work and personnel assigned to government offices requiring the wearing of civilian clothes may receive authorization for cash settlement of clothing allowance, subject to:
- prior approval of General Headquarters, Armed Forces of the Philippines if assigned within GHQ & HSG and AFPWSSUs; or
- prior approval of the Major Service Commanders if assigned in the Major Services; and
- certification from the Company Commanders that the personnel have the minimum number of military clothing required on hand.
Enlisted personnel are entitled to an additional clothing allowance of P20.00 in cash upon each reenlistment if entered into within two (2) months after discharge upon expiration of term of reenlistment, collected together with the initial clothing allowance.
Each officer and enlisted man receives a basic clothing allowance of P360 per annum, in kind or in cash as determined by the Chief of Staff, Armed Forces of the Philippines and approved by the Minister of National Defense.
The quarters, subsistence, and clothing allowance provisions apply when appropriate to commissioned officers of the Bureau of Coast and Geodetic Survey.
Implementation rules and continuing benefits
- The Minister of National Defense must promulgate the rules implementing the increases in salary and longevity pay.
- Any change in the basic salary schedule, longevity pay schedule, quarters allowance, subsistence allowance, and clothing allowance must first receive President approval on recommendation by the Minister of National Defense and the Minister of the Budget.
- Existing benefits not provided in the Letter continue to be governed by existing law, presidential decrees/directives, and directives of the President and the Minister of Rational Defense, including items such as combat pay, hazard pay, retirement benefits, and other emoluments.
Funding and deficiency coverage
- Appropriated amounts for salary increases incorporated in the budgets of the AFP must be used for the salary adjustments directed by the Letter.
- Any deficiency must be covered by salary lapses and other personal services savings of the Armed Forces of the Philippines.
- Any remaining deficiency must be covered by the salary adjustment fund in the CY 1979 General Appropriations Act and from budgetary reserves.