Policy basis and purpose
- The Arsenal plays a critical role in servicing the needs of the Armed Forces of the Philippines.
- The Arsenal’s location outside urban centers makes it difficult to attract and retain technical personnel essential to Arsenal operations.
- Arsenal operations are manufacturing in character.
Coverage and covered employees
- Technical incentive allowances are granted to employees in the Arsenal of the Armed Forces of the Philippines.
- The allowance applies to two categories of employees:
- Technical Personnel; and
- Administrative and Support Services.
Technical incentive allowance rates
The technical incentive allowance amount is fixed using the employee’s position salary range, with the corresponding monthly rate of allowance.
For Technical Personnel, the monthly allowance rate is:
- R-39 to R-50 → PHP 150 to PHP 200
- R-51 to R-56 → PHP 200 to PHP 300
- R-57 to R-62 → PHP 300 to PHP 400
- R-65 to R-67 → PHP 400 to PHP 600
- R-68-Up → PHP 600 to PHP 800
For Administrative and Support Services, the monthly allowance rate is:
- R-62-Up → PHP 300 to PHP 450
- R-53 to R-60 → PHP 200 to PHP 350
How rates are determined per position and employee
- The Secretary of National Defense determines the allowance rate for each position or employee using the above scale.
- Allowance costs must be charged to salary savings in the Arsenal.
- The allowance amount must be determined based on the employee’s duties, responsibilities, and contribution to the mission of the Arsenal.
- The allowance rate for any position or employee must in no case exceed fifty (50) per cent of the employee’s monthly salary.
Reporting and submission requirements
- Thirty days (30) after the granting of the allowance, the Secretary of National Defense must submit to the Budget Commission.
- The submission must be made through the Office of Compensation and Position Classification.
- The report must include a list of the employees granted the allowance.
- The report must include the approved rates for those employees.