Law Summary
Salary Increase Provisions
- All national government officials and employees will receive salary increases.
- Employees earning up to P8,400 per annum get a 3-step increase (~15%) in the National Salary Schedule.
- Employees earning over P8,400 per annum get a 2-step increase (~10%) in the National Salary Schedule.
Coverage of Special Pay Plans and Uniformed Services
- Positions with special pay plans and those outside the national pay plan (e.g., Armed Forces, Integrated National Police) receive the same percentage increases.
Compliance for Agencies with Prior 1981 Adjustments
- Agencies that already granted salary increases in 1981 are deemed compliant.
- If prior increases were less than mandated, employees receive the difference.
Funding Sources for Salary Increases
- Implementation funds come from salary lapses, the Salary Adjustment Fund (CY 1981 General Appropriations Act), and budgetary reserves if necessary.
Constitutional Salary Fixation Exclusion
- Positions with salaries fixed by the Constitution are excluded from these increases.
Government-Owned and Controlled Corporations (GOCCs)
- GOCCs may grant the same salary increase percentages.
- Subject to rules and procedures set by Compensation Committees under P.D. No. 985.
Local Government Units (LGUs)
- LGUs may grant equivalent salary increases funded from local government funds.
- Subject to rules from the Joint Commission on Local Government Personnel Administration.
Implementation Regulations
- The Ministry of the Budget is tasked to formulate rules and regulations for compliance.
Effective Date
- The salary increases take effect on March 1, 1981.