Purpose
- Establish the first tranche of the modified salary schedule for civilian personnel and base pay schedule for military and uniformed personnel.
- Direct review and modification of the position classification system to reflect changes.
Coverage and Exclusion
- Covers civilian personnel across Executive, Legislative, Judicial branches, Constitutional Commissions, SUCs, GOCCs, GFIs, and LGUs, including regular, casual, contractual, appointive, elective, full-time, or part-time positions.
- Excludes personnel engaged via job orders or contracts and government entities legally authorized to implement their own compensation systems.
- Military and uniformed personnel under the DND, DILG, PCG, and NAMRIA are covered by the modified base pay schedule.
Implementation Period
- National government agencies to implement salary and base pay schedules in four equal yearly tranches not exceeding four years.
- GOCCs, GFIs, and LGUs have an implementation period of four years or more, dependent on financial capability.
First Tranche Implementation
- For civilian personnel in NGAs, GOCCs, and GFIs, salary rates follow the First Tranche Monthly Salary Schedule effective July 1, 2009.
- LGU personnel salaries to be set by local sanggunian based on income class and capability, subject to prescribed percentage caps and compliance with PS cost limitations under RA 7160.
- Military and uniformed personnel base pay rates follow the First Tranche Monthly Base Pay Schedule effective July 1, 2009.
Uniform Implementation in Case of Insufficient Funds
- GOCCs and GFIs without adequate funds implement salary schedules at uniform percentage reductions from the prescribed rates.
- LGUs similarly implement salary schedules at uniform percentage rates based on actual financial capacity if maximum prescribed rates are unaffordable.
Changes in Position Titles and Salary Grades
- Specific entry-level positions (Teacher I, Nurse I, Medical Officer I, Accountant I, Legal Officer I/ Attorney I) have revised position titles and salary grades.
- DBM, in coordination with CSC, to review additional positions and update the Index of Occupational Services to ensure proper classification and salary grade allocation.
Non-Diminution Clause
- The basic salaries of incumbent employees shall not be reduced as a result of implementing the salary and classification modifications.
Funding Sources
- NGAs to charge implementation costs against appropriations in the FY 2009 General Appropriations Act and savings within departments, with future budgets to include necessary amounts.
- GOCCs and GFIs shall utilize their corporate funds from approved operating budgets.
- LGUs shall use respective local government funds for the implementation costs.
Applicability to Certain Constitutional Officials
- Salary changes for the President, Vice-President, and Congress members take effect only after the expiration of current incumbents' terms.
Subsequent Issuances
- The President, upon DBM recommendation, to issue further orders necessary to fully implement the Joint Resolution's provisions.
Effectivity
- The Executive Order takes immediate effect as of June 17, 2009.
Annexed Salary Schedules
- Detailed first tranche salary schedule for civilian personnel showing salary grade, steps, and corresponding monthly salary rates.
- First tranche base pay schedule for military and uniformed personnel listing ranks and corresponding monthly base pay amounts.