Purpose of the Executive Order
- Prescribes the first tranche of the modified salary schedule for civilian personnel and base pay schedule for military and uniformed personnel.
- Directs the review and modification of the position classification system to align with organizational and professional developments.
Coverage and Exclusions
- Civilian Personnel:
- Covers all positions in the Executive, Legislative, and Judicial branches, Constitutional Commissions, State Universities and Colleges (SUCs), Government-Owned or Controlled Corporations (GOCCs), Government Financial Institutions (GFIs), and Local Government Units (LGUs).
- Applies to regular, casual, contractual, appointive or elective, and full-time or part-time personnel.
- Excludes individuals under job orders, contracts of services, or equivalent arrangements.
- Excludes personnel in government entities authorized to implement their own compensation systems.
- Military and Uniformed Personnel:
- Covers military personnel under the Department of National Defense (DND).
- Includes uniformed personnel under the Department of the Interior and Local Government (DILG), Philippine Coast Guard (PCG), and National Mapping and Resource Information Authority (NAMRIA).
Implementation Period
- For National Government Agencies (NGAs):
- Salary and base pay schedules to be implemented in four equal yearly tranches, not exceeding four years.
- For GOCCs, GFIs, and LGUs:
- Implementation may extend over four or more years depending on their financial capabilities.
First Tranche of Salary Implementation
- Civilian Personnel:
- NGA, GOCC, and GFI personnel to receive salary rates as per the attached First Tranche Monthly Salary Schedule, effective July 1, 2009.
- LGU personnel salaries will be determined by their respective sanggunian based on LGU income class and financial capacity.
- Salary rates for LGUs must not exceed specified percentage levels relative to the national salary schedule and must comply with personal services cost limitations under the Local Government Code.
- Military and Uniformed Personnel:
- Base pay rates set according to the First Tranche Monthly Base Pay Schedule, effective July 1, 2009.
Provisions for Insufficient Funding
- GOCCs and GFIs lacking sufficient funds must implement salary schedules based on uniform percentages of the prescribed rates.
- LGUs with inadequate funds must also apply uniform percentage reductions in implementing salary schedules per LGU income class.
Modification of Position Titles and Salary Grades
- Adjusted entry-level position titles and salary grades for select positions such as Teacher I, Nurse I, Medical Officer I, Accountant I, and Attorney I.
- For example, Teacher I and Nurse I salary grades were increased from 10 to 11; Medical Officer I from 14 to 16; Accountant I from 11 to 12; Attorney I from 14 to 16.
- DBM and Civil Service Commission (CSC) are tasked to review other positions and update indexes to reflect organizational and professional changes.
Protection Against Salary Reduction
- No diminution in basic salaries of incumbent employees upon implementation of the new compensation system.
Funding Sources
- NGAs: Funded from appropriations in the General Appropriations Act (FY 2009) and savings within departments and agencies.
- GOCCs and GFIs: Funded from approved corporate operating budgets.
- LGUs: Funded from respective local government funds.
Applicability to Constitutional Officials
- Salaries prescribed for President, Vice-President, and Members of Congress will only take effect after the expiration of current terms.
Future Issuances and Full Implementation
- The President, based on DBM recommendations, may issue further Executive Orders to fully implement the Joint Resolution provisions.
Effectivity
- The Executive Order takes effect immediately upon issuance.
This summary captures the essential provisions, scope, procedures, and key legal principles of the law governing the first tranche of modified salary schedules and position classification for Philippine government personnel.