Salary Increase for Gov't Employees EO 31-1986

The Executive Order directs salary adjustments to help government employees cope with the increasing cost of living.
The Executive Order gives special attention to the economic plight of public school teachers because they are in the forefront of the educational thrust of the government.

Section 1.0 increases the basic salary of government personnel by two (2) salary steps (approximately equivalent to ten percent).
The Section 1.0 increase excludes:
- Government-owned and controlled corporations.
- Agencies adopting the OP Pay Plan (Annex 1).
- Critical or OCPC-exempt agencies that have their own special pay plans (Annex 2).
- Positions allocated to upgraded classes in the National Compensation and Position Classification Plans in recently reorganized agencies, where staffing patterns were approved only in 1985.
- Positions receiving special salary increases under E.O. 1059, E.O. 1060, and E.O. 1065 (for lawyers, allied medical personnel, and postal workers, respectively) and under specific Presidential approval.
- Career Executive Service Officers (CESO) and equivalent or higher positions for whom a separate pay plan will be submitted by the Ministry of Budget and Management.
Section 3.1 excludes from the additional COLA: employees of government-owned and controlled corporations.
Section 3.2 excludes from the additional COLA: employees of agencies already receiving cash emoluments other than the standard basic pay and allowances under the National Compensation and Position Classification Plan.

Section 2.0 grants an additional cost-of-living allowance (COLA) based on adjusted salary levels.
The additional COLA is:
- For salary level P2,500 and below: P150 per month.
- For salary level P2,501 to P3,000: 50 per month.
Section 3.0 excludes specified employees from the additional COLA, covering government-owned and controlled corporations and agencies already receiving non-standard cash emoluments.

Section 4.0 provides that employees of excluded agencies whose total compensation may fall below their counterparts in covered agencies receive such salary and COLA increases as may be necessary to raise their total compensation equal to the adjusted salaries and COLAs of equivalent positions in covered agencies.
Section 4.0 requires that the necessary adjustments are determined by the Ministry of Budget and Management (MBM).
Section 4.0 caps these equalization increases: in no case may they exceed the maximum amounts authorized under Section 1.0 and Section 2.0.

Section 5.0 grants an additional two-step increase (approximately ten percent) in the basic pay of:
- National teachers, and
- SUC faculty.
Section 5.0 provides that teachers actually receive a total of 4-step increase or approximately 20% in basic pay, computed as 1.0 + 5.0.

Section 6.0 requires an adjustment of the salaries and cost-of-living allowances of local teachers to bring them to the level of national teachers as adjusted under Section 2.0 and Section 5.0.

Section 7.0 provides that funds needed for National Government personnel are taken from:
- Section 7.1 first priority: salary lapses and other personal services savings of the ministry/bureau/office/agency/state university/college concerned.
- Section 7.2 the lump sum appropriation for salary increase incorporated in the budgets of National Government agencies and offices.
- Re-aligned funds from less-essential and non-essential government activities and re-allocated low-priority programs of the Government.
- Any remaining deficiency covered by the Salary Adjustment Fund authorized in CY 1986 General Appropriations Act.
Section 8.0 directs that funds for salary and COLA adjustment of local teachers shall be charged against:
- internal revenue allotments to Local Government Units, and
- available local government funds.
Section 9.0 authorizes Local Government Units to grant the same two-step salary increase and additional COLA provided herein, subject to:
- availability of local government funds; and
- rules and conditions to be prescribed by the Joint Commission on Local Government Personnel Administration.

Section 10.0 directs the Ministry of Budget and Management to conduct a study to review, upgrade, and revise the compensation structure of CESOs and equivalent and higher positions.
Section 10.0 requires the study to be consistent with the policy of adequate compensation commensurate with responsibilities, taking into account comparable private-sector levels.
Section 11.0 mandates that the rules and regulations to implement the Executive Order shall be formulated and issued by the Ministry of Budget and Management.

Annex 1 lists agencies adopting the OP (Office of the President) Pay Plan that are excluded from the 10% salary adjustment in Section 1.0.
Annex 1 includes, among others:
- Office of the President (Proper); Presidential Management Staff; Office of Budget and Management; National Computer Center; Commission on Filipino Overseas.
- Multiple research and science-related bodies, including National Science Technology Authority, National Academy of Science and Technology, and listed institutes and councils.
- Entities listed under Office of the Vice President, including Central Visayas Regional Project Office.
- Entities under National Economic and Development Authority (Proper) such as Tariff Commission and National Tax Research Center.
- Bodies under Ministry of Finance (Proper) such as Bureau of the Treasury, Insurance Commission, and Securities and Exchange Commission.
- Bodies under Ministry of Foreign Affairs (Proper) and multiple agencies under health, social services and development, and trade and industry.
The Annex 1 list expressly covers agencies adopting the OP Pay Plan, making them excluded from the 10% salary adjustment of Section 1.0.

Section 1.0, Section 2.0, Section 5.0, and Section 6.0 structure increases by specifying:
- basic salary step increases,
- additional COLA with scheduled amounts,
- separate teacher and SUC increases, and
- local teacher alignment to national teacher adjusted levels.
Section 7.0 through Section 9.0 establish funding allocation and local implementation authority through available budgetary and internal revenue resources.
Section 12 fixes the effective date at July 1, 1986.