Coverage of the Compensation Adjustments
- The Department of Budget and Management (DBM) is tasked to implement the salary increases effective July 1, 2008.
- National Government Agencies (NGAs), including State Universities and Colleges (SUCs):
- Civilian personnel covered by the Compensation and Position Classification System under Republic Act No. 6758, as amended, receive a 10% increase on their basic monthly salaries as of June 30, 2008.
- Military and uniformed personnel receive a 10% increase on their monthly base pay as of June 30, 2008.
- Government-Owned or Controlled Corporations (GOCCs):
- Personnel covered by the same compensation system receive a 10% salary increase, subject to corporate fund availability.
- Local Government Units (LGUs):
- Local government personnel receive a 10% salary increase, subject to availability of local funds.
Exclusions
- Personnel of government agencies exempt by law from coverage of R.A. No. 6758 are not entitled to these salary adjustments.
Funding Sources
- For NGAs and SUCs, funds shall come from the FY 2008 General Appropriations Act and future annual budgets.
- For GOCCs, increases are charged to corporate funds, with approval required from governing boards.
- GOCCs lacking sufficient funds may implement a proportional, uniform partial increase for all positions.
- LGUs fund increases from their local government funds, subject to approval of their sanggunian.
- LGUs facing insufficient funds may apply a uniform partial increase across all positions.
Limitations on Allowances and Benefits
- Except for specific benefits (year-end bonus, military longevity pay, government matching contributions for retirement and insurance, PAG-IBIG, PhilHealth, Employees Compensation Insurance), all other allowances and benefits computed as a percentage of basic salary/base pay shall not increase despite the 10% 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 their current terms, as mandated by constitutional provisions.
Implementing Rules and Regulations
- The DBM is responsible for preparing and issuing the necessary implementing rules and regulations to effectuate this Executive Order.
Effectivity
- All compensation adjustments shall take effect on July 1, 2008.