Law Summary
Scope and Coverage of the CPCS and IOS-G Framework
- The CPCS and the Index of Occupational Services, Position Titles, and Job Grades for GOCCs (IOS-G) apply to all GOCCs including Government Financial Institutions (GFIs) and Government Instrumentalities with Corporate Powers (GICPs).
- Subsidiaries of GOCCs are covered unless excluded under RA No. 10149.
- GOCCs with approved abolition or deactivation orders are exempt.
- The GCG has authority to revise or convert existing position classifications to align with CPCS and IOS-G.
Prohibition on Negotiation of Economic Terms in Collective Bargaining Agreements
- Governing Boards of GOCCs shall not negotiate economic terms and conditions of Collective Negotiation Agreements (CNAs) or Collective Bargaining Agreements (CBAs) with their employees.
- CNA incentives must adhere to policies established by the Department of Budget and Management (DBM) and extend uniformly to non-chartered GOCCs.
Implementation and Effectivity of Compensation Structure
- Monthly basic salaries and related allowances under CPCS become effective only upon authorization by GCG.
- GCG may set a uniform effective date but not earlier than the order’s effectivity.
- No reduction in authorized salaries of incumbents is permitted when implementing the CPCS.
- "Authorized salaries" mean those approved by the Office of the President or by law; Governing Board approval alone is insufficient.
Standardization and Control of Compensation
- Compensation shall be standardized according to the CPCS.
- GOCC Governing Boards cannot grant compensation outside the CPCS unless recommended by GCG and approved by the President.
- Provident Fund contributions are standardized with rationalization measures.
Position Classification and Step Increment
- Officers and employees start at Step 1 of their prescribed monthly basic salary structure unless otherwise provided.
- Step increments may be adjusted through implementing guidelines issued by GCG.
- GCG will allocate all positions to proper titles and job grades in the IOS-G.
Administration and Guidelines by GCG and DBM
- GCG administers CPCS implementation including affordability, hiring rates, bonuses, overtime pay, night shift differential, merit increases, and separation pay.
- Guidelines for higher Performance-Based Bonuses for select GOCC categories require President’s approval.
- DBM provides assistance particularly on compensation adjustments.
- GCG must submit a consolidated CPCS implementation report within 90 days of effectivity.
Periodic Review
- CPCS shall be reviewed three years after effectivity and every three years thereafter considering GOCC performance, economic contribution, and inflation.
Funding Restrictions
- Compensation adjustments are contingent on GOCC financial capability and Corporate Operating Budget approved by the Governing Board and DBM.
- Funding for CPCS implementation cannot come from loans, asset sales solely for compensation, or analogous schemes.
- GOCCs are prohibited from raising service fees to fund compensation adjustments.
- Adjustments must not negatively impact program implementation or performance targets.
Affordability Measures for Different GOCC Categories
- Category 1 GOCCs lacking funds may partially implement the salary schedule at a uniform reduced percentage.
- Categories 2 and 3 GOCCs with insufficient funds must adopt salary schedules of lower tiers or Category 1.
Mandatory Action and Separation Incentive Pay
- GOCCs refusing or failing to implement CPCS or applicable reduced rates face mandatory reorganization, merging, streamlining, abolition, or privatization upon Supervising Agency recommendation.
- Officers and employees affected shall receive separation incentive pay calculated based on their years of service and monthly basic salary:
- First 20 years: 1.00 x Monthly Basic Salary x years
- 20 years and 1 day to 30 years: 1.25 x Monthly Basic Salary x years
- Over 30 years: 1.50 x Monthly Basic Salary x years
Early Retirement and Separation Incentives
- GCG is authorized to grant Early Retirement Incentive (ERI) for voluntary retirement and Separation Incentive Pay (SIP) for involuntary separation.
- Rates correspond to those provided under the mandatory separation provisions unless adjusted and approved by the Office of the President.
- ERI and SIP are in addition to benefits under existing laws.
Repeal and Effectivity
- Executive Order No. 203 (2016) is repealed.
- Orders inconsistent with this Order are modified or repealed accordingly.
- The order takes effect immediately upon publication in the Official Gazette or in a newspaper of general circulation.
Separability Clause
- Invalidity or unconstitutionality of any provision does not affect remaining provisions, which continue to be valid and enforceable.