Law Summary
Scope and Applicability of the CPCS
- The CPCS and Index of Occupational Services, Position Titles, and Job Grades (IOS-G) Framework applies to all GOCCs, Government Financial Institutions (GFIs), and Government Corporate Entities (GCEs), including subsidiaries.
- GOCCs with approved abolition or deactivation orders are excluded from CPCS coverage.
- The GCG has authority to align and convert existing positions to the CPCS and IOS-G standards.
Prohibition on Negotiating Economic Terms of CNAs/CBAs
- While recognizing workers' rights to self-organization and collective bargaining, governing boards of GOCCs cannot negotiate economic terms and conditions of Collective Negotiation Agreements (CNAs) or Collective Bargaining Agreements (CBAs).
- CNA incentives must adhere to Department of Budget and Management (DBM) policies and extend to non-chartered GOCCs, promoting uniformity in incentives.
Implementation and Effectivity of the CPCS
- Salary structures and allowances take effect upon GCG authorization.
- GCG may set a uniform effective date, no earlier than the Order's effectivity date.
- No diminution of authorized salaries for incumbent officers and employees is allowed; authorized salaries refer to those approved by the Office of the President or by law.
Standardization and Regulation of Compensation
- All compensation must comply with the approved CPCS.
- Additional compensation outside the CPCS requires GCG recommendation and Presidential approval.
- Provident Fund contribution rates are standardized and subject to rationalization within the CPCS.
Step Increment Rules
- Officers and employees start at Step 1 of salary grades unless otherwise specified.
- Step increments are adjustable per GCG guidelines.
Administrative Oversight and Guidelines
- GCG administers CPCS implementation and issues guidelines covering affordability, increments, hiring rates, overtime, night shift differentials, merit increases, and separation pay.
- Higher Performance-Based Bonuses for GOCCs in certain categories require Presidential approval.
- DBM assists GCG in compensation guideline formulation.
- A consolidated CPCS report must be submitted to the Office of the President within 90 days after effectivity.
Periodic Review of the CPCS
- GCG En Banc shall review the CPCS every three years following initial effectivity, considering GOCC performance, economic contribution, and inflation impact.
Funding and Financial Restrictions
- Compensation adjustments depend on each GOCC's financial capability and approved budget.
- CPCS implementation costs charged only to Personnel Services appropriations.
- Prohibited funding sources include loans, asset sales for compensation purposes, or analogous schemes.
- Service fees cannot be increased to cover compensation adjustments.
- Compensation changes must not negatively impact programs, projects, or performance targets.
Affordability Provisions
- Category 1 GOCCs with insufficient funds must partially implement CPCS salaries at a uniform reduced percentage.
- Category 2 and 3 GOCCs lacking sufficient funds must adopt lower-tier or Category 1 salary schedules.
Consequences of Non-Implementation
- Non-compliant GOCCs face mandatory action including reorganization, merger, streamlining, abolition, or privatization upon Supervising Agency recommendation.
- Affected officers and employees shall receive separation incentive pay based on years of service and monthly basic salary.
Separation and Retirement Incentives
- GCG authorized to grant early retirement incentive (ERI) for voluntary retirements and separation incentive pay (SIP) for involuntary separations.
- ERI and SIP rates align with separation incentive pay provisions unless altered with Office of the President approval.
- Incentives are in addition to existing retirement or separation benefits.
Repeal and Continuity Provisions
- Executive Order No. 203 (s. 2016) repealed.
- Any inconsistent provisions from previous issuances are repealed or amended accordingly.
Separability and Effectivity
- Invalidity of any provision does not affect the remainder of the Order.
- The Order is effective immediately upon publication in the Official Gazette or any newspaper of general circulation.