Coverage of the Circular
- Applies to all government personnel in positions whether permanent, temporary, contractual, casual, or emergency.
- Includes appointive and elective positions, full-time and part-time.
- Covers personnel in the national government, state universities and colleges, and government-owned or controlled corporations and financial institutions.
Exemptions
- Officials and employees of agencies exempt from the Position Classification and Compensation System.
- Agencies not following the prescribed government salary schedule.
- Uniformed personnel of the Philippine National Police.
Definitions
- Present salary: Basic salary as of December 31, 1999, excluding allowances and bonuses except transition allowance.
- Transition allowance: The excess of the present salary over the eighth step of the employee's salary grade.
Salary Adjustment for Civilian Personnel
- Maintain salary grades under RA 6758.
- Salary steps adjusted upward as per the provided Salary Schedule.
- Transition allowance treated as an advance salary increase; any excess deducted from future adjustments.
- New appointments from January 1, 2000, start at first step of salary grade except where existing rules apply.
- Allowances such as PERA and Additional Compensation remain non-integrated and tax-exempt.
- Contractual employees paid from lump-sum funds receive adjusted salaries; no 20% premium anymore.
- Daily paid employees’ wages computed based on dividing monthly salary by 22 working days.
- Salary schedule used to compute retirement pay, bonuses, and other benefits.
Salary Adjustment for Uniformed Personnel (Except PNP)
- Salary schedules prescribed for AFP, BJMP, BFP, PCG, and NAMRIA personnel.
- PNP personnel paid under RA 8551, RA 8760, FY 2000 GAA and implementing guidelines.
Prohibitions
- No agency official may grant salary adjustments beyond authorized amounts.
- Salary adjustments for high officials (President, VP, Congress members, Senators) take effect only after terms expire, per constitutional provisions.
Funding Sources
- National government agencies fund adjustments from savings and Salary Adjustment Fund under RA 8760 and 2000 General Appropriations Act.
- Agencies with fiscal autonomy must use released Personnel Services funds.
- Non-permanent employees funded by agency lump-sum appropriations.
- Government corporations finance from corporate funds; partial implementation allowed if funds insufficient.
Release of Funds
- DBM to release Notice of Cash Allocation (NCA) for permanent employee salary adjustment.
- Additional releases for non-permanent employees not allowed; funded from lump sums only.
Payment Procedures
- Agencies must pay adjustments upon receipt of NCA.
- Salary adjustments subject to DBM review and possible correction.
- Official/employee notification via Notice of Salary Adjustment.
- Group notices issued where applicable; copies furnished to GSIS if members.
Post-Audit Requirements
- Government corporations and financial institutions to prepare Plantilla of Personnel and Salary Adjustment Form (PPSAF).
- Certified PPSAF submitted to DBM BMB aDa within 30 days.
- Certified copies distributed to Civil Service Commission, Commission on Audit, agency, and retained by DBM.
Agency Head Responsibilities
- Responsible for timely submission of required reports.
- Personally liable for payments not in compliance with the Circular.
- Employees must refund any excess payments.
Contributions
- Salary adjustments subject to mandatory GSIS life and retirement insurance premiums and HDMF contributions if applicable.
Saving Clause
- Uncovered cases referred to Secretary of Budget and Management.
Effectivity
- Circular takes effect January 1, 2000.