Salary Increases for Rank and File Gov't Employees

The Government recognizes the valuable role of government employees in providing vital services to the population at large.
The Government adopts a policy to continuously maintain, within limited financial resources, the living standards of government employees and improve their welfare.
The Government directs salary increases for government employees in recognition of their role and welfare needs.

Section 1 provides that all employees of the national government below the rank of Career Executive Service Officers and their equivalents are granted a salary increase.
Section 2 provides that employees of government agencies not receiving any regular emoluments higher than those provided under the National Pay Plan are granted an additional salary increase.
Section 3 provides that, in addition to the increases under Sections 1 and 2, specified classes of positions and occupational groups are granted an additional salary increase.

Section 1 grants a salary increase equivalent to five percent (5%) of the employees’ basic salaries.
The coverage under Section 1 is limited to national government employees below the rank of Career Executive Service Officers and their equivalents.
The increase under Section 1 is a general salary increase for covered employees.

Section 2 grants an additional salary increase equivalent to ten percent (10%) of basic salaries to covered employees of agencies meeting the National Pay Plan regular emoluments condition.
Section 3 grants an additional salary increase equivalent to five percent (5%) of basic salaries in addition to the increases under Sections 1 and 2.
Section 2 and Section 3 apply to covered employees in addition to the Section 1 increase.

Section 3 provides that the following classes of positions receive the additional five percent (5%):
- Teachers and related teaching positions
- Agricultural and Agrarian reform technologists who are bachelors degree holders
- Vocational placement officers
- Youth Welfare and development officers
Section 3 provides that the following occupational groups receive the additional five percent (5%):
- Veterinary services group
- Social welfare group

Section 4 provides that the teacher salary increase constitutes partial implementation of Republic Act No. 4670, otherwise known as the Magna Carte for Public School Teachers.
Section 4 requires that, for purposes of these salary increases, local public school teachers and related teaching positions receive the same increases as national government public school teachers.
The teacher-specific allocation under Section 4 is tied to the increases granted in the Executive Order.

Section 5 requires that salary increases for national government employees be funded from the Compensation and Organizational Adjustment Fund established under Executive Order No. 87.
Section 6 directs the Department of Budget and Management to prescribe the necessary guidelines for implementation of the Executive Order.