Title
Classification and Salary Standardization Act
Law
Commonwealth Act No. 402
Decision Date
Sep 13, 1938
A Philippine law establishes a standardized classification of civilian positions and salaries in the government, defining important terms, establishing grades and rates of compensation, and creating services and special groups, with the aim of ensuring fairness and consistency in compensation.

Definitions of Key Terms

  • Class: Positions or groups similar in duties, responsibilities, qualifications, and pay.
  • Grade: Horizontal divisions within a service, reflecting levels of compensation and qualifications.
  • Group: Vertical divisions by profession, vocation, or specialization.
  • Compensation: Salary, wages, allowances, or emoluments of employees.
  • Board: Refers to the Salary Board.

Classification and Salary Grades

  • Ten salary grades established, each with specified annual compensation rates.
  • Grade 1 includes highest responsibility roles requiring technical training and extended experience.
  • Grades progress downward to Grade 10, which includes simplest routine or unskilled tasks.

Established Services

  • Seven services defined:
    1. Administrative Service (10 grades)
    2. Professional and Scientific Service (8 grades)
    3. Educational Service (9 grades)
    4. Navigation Service (10 grades)
    5. Vigilance Service (10 grades)
    6. Subprofessional Service (7 grades)
    7. Craft and Labor Service (7 grades)
  • Each service covers positions characterized by specific job functions and qualification requirements.

Special Groups Exempted from Classification

  • Executive Group: Includes Department Secretaries, Undersecretaries, Commissioners, and other top officials with fixed annual salaries ranging from 6,000 to 12,000 pesos.
  • Judicial Group: Includes justices and judges of various courts, with detailed salary rates and provisions for justices of the peace.

Deductions for Privileges

  • Deductions allowed for quarters, subsistence, laundry, and domestic services as determined by the Board.
  • Exceptions include light keepers, marine officers, employees required to live in government quarters, and hospital employees wearing uniforms.
  • Enforcement depends on implementation of salary rates.

Compensation Differentials

  • Additional pay may be granted for hazardous or unsocial working conditions, subject to a maximum of 25% aggregate of basic pay.
  • Differential categories include:
    • Exposure to contagion or mentally deranged patients (up to 15%).
    • Work in crime-prone areas without police protection (up to 15%).
    • Work hours outside usual times (up to 10%).
    • Requirement to wear uniform not provided by the government (up to 5%).

Prohibition on Receiving Private Compensation

  • Government employees are prohibited from receiving additional compensation from private persons for official services.

Salary Board Composition

  • Consists of the Commissioner of Civil Service (Chairman), Commissioner of the Budget, and Auditor General.

Powers and Duties of the Salary Board

  • Establish groups, grades, titles, duties, minimum qualifications, and fix compensation rates.
  • Adjust experiential requirements for positions.
  • Create new groups or modify existing ones.
  • Set procedures for compensation of special types of employment.
  • Classify all positions at enactment and thereafter.
  • Conduct periodic reviews and reclassification.
  • Make necessary rules and regulations to implement the Act.

Support Personnel for the Board

  • The President may assign government employees to assist the Board.
  • May appoint an executive officer with a term not exceeding one year.

Adjustments of Compensation

  • Employee compensation adjusted to at least the minimum salary of their grade.
  • No salary reduction for employees already earning above their grade’s maximum.
  • Salaries not on fixed steps are adjusted to the next higher rate.

Funding for Salary Adjustments

  • Excess funds from appropriations may be used to cover salary adjustments under the Act at the President’s discretion.

Salary Rate Limitations

  • Initial appointments must be at minimum grade salary barring specific exceptions.
  • Grade 10 could have entrance salary at maximum rate fixed by the Board.

Temporary Employment Clarification

  • The Act does not convert temporary appointments into permanent appointments.

Classification and Salary Payment Enforcement

  • Salaries not payable for positions not classified and allocated by the Board after initial classification date.

Appropriations for Implementation

  • Initial appropriation of P15,000 for salaries, expenses, and equipment of the Salary Board.

Repealed Laws

  • Act No. 2668 and specific sections of the Administrative Code and Commonwealth Act No. 165 repealed.

Effective Date

  • The Act takes effect upon approval on September 13, 1938.

Analyze Cases Smarter, Faster
Jur helps you analyze cases smarter to comprehend faster, building context before diving into full texts. AI-powered analysis, always verify critical details.