Exemptions
- Officials/employees of agencies exempt from the Position Classification and Compensation System or its salary schedule
- Consultants and experts hired for specific outputs under limited period, compensated under existing laws until amended
- Student laborers, apprentices compensated pursuant to existing laws until amended
- Laborers hired on a job or contract basis, piecework workers, mail contractors and similarly situated persons
Key Definitions
- Present salary: Basic salary rates as of December 31, 1994, excluding PERA, Additional Compensation, allowances, bonuses, honoraria, and similar payments
- Transition allowance: Excess of present salary over eighth step of the employees position grade
- Over-and-above allowance: Additional monthly compensation paid to LGU public school teachers before July 1, 1989, added to basic salary
Compensation Rules for Civilian Personnel
- Maintains salary grades as prescribed under RA 6758; adjusts monetary value of salary steps effective January 1, 1995
- Incumbents receive salary corresponding to their designated step as of December 31, 1995
- Positions moved to a higher salary grade continue to receive salary at the old grade as of December 31, 1994
- Incumbents with transition or over-and-above allowances get authorized adjustments; excess is treated as advance implementation of salary schedule
- Appointments from January 1, 1995 onward are at first step of position's salary grade unless previous appointment had higher salary
- PERA and Additional Compensation remain allowances, not integrated into basic salary
- Contractual employees paid from lump-sum/project funds may receive up to 120% of adjusted minimum hiring rate of comparable regular positions
- Daily paid employees' wage rate computed by dividing monthly rate by 22 working days, with ceiling on monthly wage
- Interim salary schedule basis for retirement pay, year-end bonus, and similar benefits
- Salary adjustments for President, Vice-President, Representatives, and Senators take effect only after expiration of current terms
Compensation Rules for Uniformed Personnel
- DND, DILG uniformed personnel, and NAMRIA officers/enlisted personnel to be paid according to a separate salary schedule
Prohibition on Excess Adjustments
- Agency heads prohibited from granting any salary adjustment exceeding amounts authorized by this Circular
Funding Source
- National government agencies charge salary increases to Compensation Adjustment Fund and other appropriations under RA 7845 and the 1995 General Appropriations Act
- Deficiencies charged against agency savings
- Government corporations to fund from corporate funds
- Partial implementation allowed only if uniform and proportionate across positions in corporation
Release of Funds
- Department of Budget and Management (DBM) to issue Notice of Cash Allocation (NCA) for salary adjustment disbursement
Payment Procedures
- Agencies to pay salary adjustment upon receipt of NCA
- Adjustments subject to review and correction by DBM
- Official/employee to be notified of salary adjustment via Notice of Salary Adjustment
- Group notices allowed for multiple employees with similar information
- Copies of notices furnished to GSIS when applicable
Post-Audit Requirements
- Agencies to prepare Plantilla of Personnel and Salary Adjustment Form (PPSAF) including contractual, casual, emergency positions
- Submit original and three certified copies to DBM or regional office within 30 days
- Verified copies distributed to Civil Service Commission, Commission on Audit, agency, and retained by DBM for records
Responsibilities and Liabilities of Agency Heads
- Responsible for submitting required reports accurately
- Personally liable for unauthorized or improper salary payments
- Employee required to refund any excess payments
Contributions
- Salary adjustments subject to GSIS life and retirement insurance premiums, and HDMF contributions if the employee is a member
Saving Clause
- Cases not covered referred to Secretary of Budget and Management for resolution
Effectivity
- Circular effective January 1, 1995