Coverage and Grade Equivalence
- The Act applies to all military personnel of the Armed Forces of the Philippines in the active service.
- The Act also applies to any civilian employee covered under Section 4.
- Whenever grades are mentioned in the Act, the same grades are understood to include the equivalent Navy grades.
Military Base Pay Schedule
- Section 3 establishes a monthly base pay schedule for military personnel of the Armed Forces of the Philippines in active service.
- The monthly base pay for the grade General is PHP 12,000.00.
- The monthly base pay for Lieutenant General is PHP 9,000.00.
- The monthly base pay for Major General is PHP 8,000.00.
- The monthly base pay for Brigadier General is PHP 7,500.00.
- The monthly base pay for Colonel is PHP 6,000.00.
- The monthly base pay for Lieutenant Colonel is PHP 5,500.00.
- The monthly base pay for Major is PHP 5,000.00.
- The monthly base pay for Captain is PHP 4,000.00.
- The monthly base pay for First Lieutenant is PHP 3,500.00.
- The monthly base pay for Second Lieutenant is PHP 3,000.00.
- The monthly base pay for Probationary Second Lieutenant is PHP 2,500.00.
- The monthly base pay for Cadet is PHP 2,400.00.
- The monthly base pay for Master Sergeant/First Sergeant is PHP 2,350.00.
- The monthly base pay for Technical Sergeant is PHP 2,000.00.
- The monthly base pay for Staff Sergeant is PHP 1,800.00.
- The monthly base pay for Sergeant is PHP 1,600.00.
- The monthly base pay for Corporal is PHP 1,300.00.
- The monthly base pay for Private First Class is PHP 1,100.00.
- The monthly base pay for Private is PHP 1,000.00.
- The monthly base pay for Draftee is PHP 1,000.00.
- The monthly base pay for First Class Trainee is PHP 800.00.
- The monthly base pay for Second Class Trainee is PHP 700.00.
- The monthly base pay for Third Class Trainee is PHP 600.00.
Civilian Minimum Base Pay (January 1, 1988)
- Section 4 provides that effective January 1, 1988, all regular and permanent civilian employees of the Department of National Defense and the Armed Forces of the Philippines are covered.
- Covered civilian employees must receive a minimum base pay of one thousand pesos a month.
- The minimum base pay is subject to the rationalized compensation and position classification plan of the national government.
- The rationalization plan is to be established through studies being conducted by the Department of Budget and Management.
- The Department of Budget and Management’s studies must be completed not later than March 31, 1988.
Funding and Budget Inclusion
- Section 5 funds the base pay adjustments authorized in the Act from the Compensation and Organizational Adjustment Fund, the Contingent Fund, and other savings under Executive Order No. 87, otherwise known as the General Appropriations Act for Fiscal Year 1987.
- Section 5 also authorizes funding from any unappropriated funds of the National Treasury.
- The Act requires that the corresponding amount for the new salary rates be included in the annual General Appropriations Act for the AFP Budget for succeeding years.
Repeal, Separability, and Transitory Rules
- The Act provides that it takes effect despite any contrary law, executive order, or presidential decree, subject to the Section 4 exception.