Revised Government Compensation and Classification

Ensures equal pay for substantially equal work based on duties, responsibilities, and qualifications.
Considers prevailing private sector rates.
DBM tasked with establishing a unified Compensation and Position Classification System.

Just and equitable wages for all government personnel.
Pay differences aligned with rank distinctions, favoring higher percentage increases for lower ranks.
Basic compensation to be comparable with the private sector and comply with minimum wage laws.
Total compensation must be reasonable relative to the national budget.
Periodic review to address purchasing power erosion due to inflation.

Applies to all positions in government, including appointive, elective, full-time or part-time.
Encompasses Executive, Legislative, Judicial branches, Constitutional Commissions, government agencies, corporations, financial institutions, and LGUs.
Includes entities owned/controlled by the National Government performing governmental or proprietary functions.

Divided into four main categories:
- Professional Supervisory (Salary Grade 9–33): Management positions requiring managerial skills and professional knowledge, typically requiring at least a bachelor’s degree.
- Professional Non-Supervisory (Salary Grade 8–30): Positions requiring application of professional training or creative skills, with at least four years of college education.
- Sub-Professional Supervisory (Salary Grade 4–18): Supervisory roles over technical, manual, or clerical work, requiring secondary/vocational education or some college.
- Sub-Professional Non-Supervisory (Salary Grade 1–10): Positions involving skilled support or manual crafts typically requiring elementary to some college education.

DBM responsible for allocating all government positions to appropriate titles and salary grades based on the system.

DBM to administer a detailed salary schedule with monthly salary rates from Salary Grade 1 to 33.
Monthly rates represent full compensation for full-time employment.
Provisions for proportional adjustment for part-time services.
Salary updates tied to legal across-the-board adjustments.
Daily rate based on dividing monthly salary by 22 working days.

Defined salary grades for specific high-ranking officials such as President (Grade 33), Vice-President (Grade 32), Senate President, Speaker, Chief Justice (Grade 32), Senators and Congressmen (Grade 31).
DBM authorized to assign equivalent ranks based on organizational scope and functions.
Implementation provisions include deferred salary increase for certain officials until amendments or specific dates.

DBM guided by educational requirements, job complexity, supervision type, strain, relationships, decision-making, accountability, and hazards to assign grades.
Benchmark Position Schedule establishes salary grades for common positions such as Laborer I (Grade 1) to Rural Health Physician (Grade 20).
Caps salaries of heads of government corporations at Grade 30 except by Presidential approval.

Pay rates determined by LGU class and financial capability.
Maximum pay rates set as percentages of the national salary schedule calibrated by LGU classification.

Base and longevity pay aligned with prescribed separate laws.
Authorization of allowances such as cost of living, hazard pay, subsistence, and others.

Most allowances integrated into standardized salary rates except a limited list (e.g., representation, hazard pay).
Existing additional compensation received by incumbents prior to July 1, 1989 continues.
Additional local government compensation absorbed by the National Government.

DBM to administer and revise the compensation and position classification system as needed.

References to previous budget and classification offices updated to DBM and Compensation and Position Classification Bureau.

Laws exempting agencies from the System or granting special salary privileges inconsistent with the System repealed.

Continuation of transition allowance for incumbents with higher than standardized salaries.
Basis for salary adjustments ensures no reduction below 90% of current compensation or standard rate.
Transition allowances count towards retirement and other benefits.

Prohibits COA personnel from receiving additional compensation from other government entities to maintain independence.
Prohibits billing other government entities for services rendered by COA employees.

National government funding from appropriations and savings.
LGUs charge to their funds, partial implementation allowed for insufficient funds.
Government corporations fund from corporate funds.

Unmodified provisions of Presidential Decree No. 985 and amendments remain effective if not inconsistent.

Takes effect on July 1, 1989.
DBM mandated to allocate positions and issue implementing guidelines within 60 days after approval.