Authority and Policy Guidance
- Administrative Order No. 42 (1993) affirmed the Department of Budget and Management's (DBM) authority to issue policies on position classification and compensation for LGUs.
- DBM’s rules and regulations embody the rules for implementing the Compensation Standardization Law at the local level.
- The unified Position Classification and Compensation System applies uniformly across the entire government structure.
Directive for Strict Compliance
- Provinces, cities, municipalities, and barangays are explicitly directed to strictly comply with R.A. 6758 as amended and the DBM-issued implementing rules and guidelines.
- Any compensation grants or salary adjustments by LGUs must align fully with the provisions of the law and implementing regulations.
Prohibition and Sanctions
- Any forms of compensation or salary increases inconsistent with R.A. 6758 and its rules are strictly prohibited.
- Violations attract both administrative and criminal sanctions against responsible officials.
Budgetary Review and Oversight
- Municipal, city, and provincial budget officers must rigorously review and evaluate allotment requests, especially for personal services, ensuring conformity with existing compensation rules.
- Budget reviews for component cities and municipalities are to be conducted strictly in accordance with the Compensation Standardization Law and its implementing regulations.
Effectivity
- The Administrative Order takes effect immediately upon issuance to enforce compliance and oversight without delay.
This Administrative Order establishes a strict framework to ensure consistent application of the Compensation Standardization Law across all local government units, reinforcing the constitutional mandate for uniform government compensation and empowering supervisory and budgetary authorities to enforce compliance.