EO No. 150 Approving GOCC CPCS and IOS-G

Constitutional and statutory basis

The Order is anchored on Section 16, Article XII of the Constitution, which permits establishment of GOCCs in the interest of the common good subject to economic viability.
The Order is anchored on Section 5, Article IX-B of the Constitution, which mandates congressional standardization of compensation of government officials and employees, including those in GOCCs with original charters.
The Order is implemented under Republic Act No. 10149 (GOCC Governance Act of 2011), which directs the Governance Commission for GOCCs (GCG) to classify GOCCs, conduct compensation studies, and develop a CPCS for the GOCC sector.
Section 9 of Republic Act No. 10149 provides that no GOCC shall be exempt from the CPCS coverage developed by the GCG under the Act.

Scope: coverage and key exclusions

The CPCS and IOS-G Framework apply to all GOCCs (including their subsidiaries), Government Financial Institutions (GFIs), and Government instrumentalities with Corporate Powers (GICPs)/Government Corporate Entities (GiCPs/GCEs) collectively referred to as “GOCCs” (Section 1).
The CPCS and IOS-G apply to covered GOCCs including their subsidiaries, unless excluded from the coverage of Republic Act No. 10149 (Section 1).
The CPCS does not apply to GOCCs with approved abolition or deactivation orders (Section 1).
The GCG is authorized to convert or revise existing position classification systems of GOCCs to align with the CPCS; all positions (AH positions) must be allocated by the GCG to their proper position titles and job grades in IOS-G (Section 1).

CPCS and IOS-G governance

The CPCS and IOS-G Framework attached to the Order are approved and are the system governing compensation and position classification for covered GOCCs (Section 1).
The GCG administers the implementation of the CPCS and issues implementing guidelines for CPCS implementation (Section 8).
The GCG issues implementing guidelines covering affordability, step increments, hiring rates, overtime pay, night shift differential, merit increases, and separation pay programs, considering prevailing private-sector practices and the CPCS guiding principles (Section 8).
Guidelines for higher rates of Performance-Based Bonus for GOCCs in Categories 2 or 3 are subject to President approval (Section 8).
The DBM provides assistance to the GCG for issuance of guidelines on compensation adjustments of GOCCs (Section 8).

Negotiation limits on economic terms

The Governing Boards of covered GOCCs shall not negotiate the economic terms and conditions of the CNA/CBAs with their officers and employees (Section 2).
CNA incentives must be guided by DBM policies and guidelines (Section 2).
CNA incentives must be extended to non-chartered GOCCs to promote uniformity of allowable incentives within the GOCC sector (Section 2).

Effectivity, starting point, and non-diminution

The monthly basic salary structure of a GOCC and its allowances, benefits, and incentives become effective upon issuance of the corresponding authorization from the GCG (Section 3).
The GCG may set a uniform date of effectivity across GOCCs, but it must not be earlier than the Order’s effectivity date (Section 3).
In implementing the CPCS, there is no diminution in the existing authorized salaries of incumbent officers and employees of concerned GOCCs (Section 4).
“Authorized salaries” for purposes of the Order refer to the salary structure authorized by the Office of the President (OP) and/or by law; Governing Board approval alone is not considered authorized (Section 4).
Existing compensation granted by GOCCs must be standardized in accordance with the CPCS; GOCC Governing Boards may not grant any additional compensation outside the CPCS unless it is recommended by the GCG and approved by the President (Section 5).
CPCS rates on contributions to the Provident Fund apply to all GOCCs subject to rationalization measures outlined in the CPCS (Section 6).
All officers and employees automatically start at Step 1 of the prescribed Monthly Basic Salary Structures under the CPCS unless otherwise provided therein (Section 7).
Step increment progressions may be adjusted, subject to implementing guidelines issued by the GCG (Section 7).

Mandatory implementation reporting and review

The GCG must submit to the OP through the Executive Secretary a Consolidated CPCS Report within ninety (90) days from the Order’s effectivity.
The Consolidated CPCS Report must summarize GCG authorizations issued for all covered GOCCs and the status of implementation (Section 8).
The GCG En Banc must review the CPCS three (3) years after effectivity and every three (3) years thereafter.
The periodic review must consider performance of GOCCs, overall contribution to the national economy, and possible erosion in purchasing power due to inflation and other factors (Section 9).

Funding rules and restrictions on charging

Compensation adjustments depend on the GOCC’s financial capability and its corporate operating budget (COB), as approved by the GOCC Governing Board and the DBM (Section 10).
Amounts required for CPCS implementation must be charged against the GOCC’s Personnel Services appropriations under its approved COB (Section 10).
A GOCC is prohibited from sourcing payment for CPCS implementation from:
- Loans (Section 10(a));
- Sale of the GOCC’s asset(s) for the sole purpose of compensation adjustment (Section 10(b)); and
- Other schemes analogous to the foregoing (Section 10(c)).
GOCCs must not increase service fees to augment deficiencies in the amounts prescribed in the Order (Section 10).
Compensation adjustments must not adversely affect the implementation of programs/projects or the attainment of performance targets (Section 10).

Affordability mechanisms by CPCS category

Category 1 GOCCs that lack adequate or sufficient funds to implement rates (as determined by the GCG) must partially implement the salary schedule at a lower uniform percentage across all positions for every GOCC (Section 11).
Categories 2 and 3 GOCCs that lack adequate or sufficient funds to implement rates (as determined by the GCG) must adopt the salary schedule of lower tiers or of Category 1 (Section 11).

Mandatory action, reorganization, and separation incentives

Any GOCC that fails or refuses to implement the CPCS rates, or the lower amounts under Section 11 as applicable, must undergo mandatory action and be reorganized, merged, streamlined, abolished or privatized pursuant to Section 5(a) of Republic Act No. 10149, upon recommendation of its Supervising Agency (Section 12).
Officers and employees affected by mandatory action due to CPCS implementation must be granted separation incentive pay unless the GCG recommends lower rates to the OP (Section 12).
The separation incentive pay rates are:
- For First 20 years: 1.00 × MBS × No. of years
- For 20 years and 1 day to 30 years: 1.25 × MBS × No. of years
- For 30 years and 1 day and above: 1.50 × MBS × No. of years
Monthly Basic Salary (MBS) is the base factor used in the separation incentive pay computation (Section 12).

Early retirement and involuntary separation incentives

The GCG is authorized, pursuant to Section 5(a) of Republic Act No. 10149, to grant an early retirement incentive (ERI) to officers and employees who voluntarily elect to be retired and to grant a separation incentive pay (SIP) to those involuntarily separated (Section 13).
ERI and SIP must be granted in accordance with the rates under Section 12, unless adjusted rates are recommended to and approved by the OP (Section 13).
The grant of ERI and SIP is in addition to retirement or separation benefits under existing laws (Section 13).

Repeal, separability, and final provisions

Executive Order No. 203 is repealed (Section 14).
All other orders, rules and regulations, issuances, or any part thereof, inconsistent with the Order are repealed or modified accordingly (Section 14).
If any provision is declared invalid or unconstitutional, the remaining provisions continue to be valid and subsisting (Section 15).