Special Consideration for Teachers
- National teachers and State Universities and Colleges (SUC) faculty receive an additional two-step increase (approx. 10%) on top of the general two-step increase, totaling a four-step increase or approx. 20%
- Local teachers' salaries and COLAs adjusted to match national teachers after increases
Cost-of-Living Allowance (COLA)
- Additional COLA based on adjusted salaries:
- P150/month for salary level P2,500 and below
- P50/month for salary range P2,501 to P3,000
- Exclusions from COLA:
- Employees of GOCCs
- Employees already receiving other cash emoluments apart from standard pay and allowances
Equalization for Excluded Agencies
- Employees in excluded agencies whose total compensation falls below counterparts in covered agencies shall receive increases to equalize compensation but not exceeding the maximum amounts under the order
Funding Sources
- National Government personnel salary increases funded from:
- Salary lapses and personal services savings within ministries/agencies
- Lump sum appropriations for salary increases within agency budgets
- Funds re-aligned from less/non-essential activities and programs
- Salary Adjustment Fund under the 1986 General Appropriations Act
- Local teacher salary and COLA adjustments charged to internal revenue allotments and local government funds
- Local governments authorized to grant the two-step salary increase and COLA subject to available funds and joint commission rules
Ministry of Budget and Management (MBM) Responsibilities
- To study, review, upgrade, and revise compensation for CESO and equivalent/higher positions ensuring adequacy and competitiveness
- To formulate and issue implementing rules and regulations for the Order
Effective Date
- The Order takes effect July 1, 1986
Special Provisions
- List of agencies adopting the OP Pay Plan which are excluded from the 10% salary adjustment
- Emphasis on equitable treatment for public school teachers recognizing their role and economic challenges