Law Summary
Authorized Salary Adjustments for Civilian Personnel
- The Department of Budget and Management (DBM) is mandated to implement a 10% salary increase over the basic monthly salaries as of June 30, 2007.
- This increase applies to civilian government personnel covered under the Compensation and Position Classification System established by R.A. No. 6758, as amended.
- The increased salary rates take effect from July 1, 2007.
- Implementation must follow the detailed salary schedule annexed to the Executive Order, based on the employee’s salary grade and step as of June 30, 2007.
Adjustments for Military and Uniformed Personnel
- Military personnel of the Armed Forces, and uniformed personnel under the Department of the Interior and Local Government, Philippine Coast Guard, and National Mapping and Resource Information Authority, will receive an increase in allowances.
- Subsistence allowance is increased by Thirty Pesos (P30) per day.
- Hazard pay receives an additional One Hundred Twenty Pesos (P120) per month.
- These adjustments also take effect on July 1, 2007.
Coverage of the Salary Increase
- The 10% salary increase covers civilian officials and employees of National Government Agencies (NGAs), State Universities and Colleges, Government-Owned and/or Controlled Corporations (GOCCs), Government Financial Institutions (GFIs), and Local Government Units (LGUs).
- Applies only to those covered under the R.A. No. 6758, as amended.
- Exempt government agencies by law from R.A. No. 6758 are not entitled to these compensation adjustments.
Funding Sources for Adjustments
- NGAs will finance adjustments from funds appropriated under the FY 2007 General Appropriations Act and subsequent annual appropriations.
- GOCCs and GFIs must use their respective corporate funds.
- LGUs must use their respective local funds.
Procedures for Insufficient Funds
- Should GOCCs, GFIs, and LGUs lack sufficient funds, they may only implement a partial and uniform percentage increase across all positions.
- This ensures fairness in partial implementation of the salary adjustments.
Impact on Other Allowances and Benefits
- No corresponding increase shall be made to allowances and benefits computed as a percentage of basic salary, except for the year-end bonus and fixed personnel benefit contributions.
- This provision aims to contain expenditure while honoring the salary increase.
Applicability to Constitutional Officials
- Salary increases for the President, Vice-President, Senators, and members of the House of Representatives will only take effect after the expiration of the current officials’ terms.
- This is pursuant to provisions in the 1987 Constitution governing tenure and salary changes.
Implementation and Effectivity
- The DBM is tasked with drafting and issuing the rules and regulations necessary to implement the provisions of the Executive Order.
- All compensation adjustments under this order shall become effective starting July 1, 2007.
Annexed Salary Schedule
- A detailed salary table is provided outlining monthly basic salaries for civilian personnel by Salary Grade and Step.
- Reflects the 10% increase with adjusted specific salary amounts.
- This schedule guides the precise salary rates applicable to each position in the civil service structure as of July 1, 2007.