Initial AFP Salary Structure Implementation

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DBM NATIONAL BUDGET CIRCULAR NO. 483, OCTOBER 29, 2002: Initial AFP Salary Structure Implementation

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Title Source: Supreme Court: Initial AFP Salary Structure Implementation

Law: Dbm National Budget Circular No. 483, October 29, 2002

Decision Date: Oct 29, 2002

The DBM National Budget Circular No. 489-03 increases the base pay and benefits for officers and enlisted personnel of the Armed Forces of the Philippines (AFP) in three phases, in accordance with Republic Act No. 9166 and Republic Act No. 9206, with funds sourced from current appropriations savings and the FY 2003 General Appropriations Act.

Law Summary

Coverage

Applies to all officers and enlisted personnel of the AFP in active service.
Includes cadets of the Philippine Military Academy, officer candidates, and candidate soldiers.

Salary Grade Assignments and Base Pay Adjustment

Salary grades assigned per AFP rank from General (Grade 30) to Candidate Soldier (Grade 7).
Base pay rates correspond to Philippine National Police (PNP) uniformed personnel pay adjusted under RA 8551.
Base pay increases to be implemented in three phases.
Initial phase effective October 1, 2002, provides a uniform 20% of the total authorized base pay increase per rank.

Definitions and Implementing Rules

Base pay as of September 30, 2002, under NBC 474 serves as the reference point.
Adjusted base pay effective October 1, 2002, follows the First Interim Salary Schedule attached as Annex A.
Adjusted base pay used for calculating longevity pay, year-end bonus, and retirement benefits.
Existing rates for all other allowances and collateral benefits remain unchanged.

Prohibition on Unauthorized Salary Adjustments

Department of National Defense Secretary is prohibited from granting salary adjustments exceeding the authorized amounts unless expressly allowed by law or executive order.

Funding Source

Funding for initial implementation charged against appropriations savings of each Major Service and Key Budget Unit (KBU) of the AFP.

Responsibilities and Liabilities

Commanders of Major Services and KBUs liable for payments not in accordance with the Circular.
Personnel receiving excess payments liable to refund the excess.

Saving Clause

Any case not covered by the Circular shall be referred to the Secretary of Budget and Management for resolution.

Effectivity

Circular takes effect on October 1, 2002.

Annex A: First Interim Salary Schedule Highlights

Adjusted monthly base pays for AFP ranks provided, reflecting the 20% base pay increase.
Examples:
- General: Increased from PHP 19,173 to PHP 20,338.
- Private: Increased from PHP 5,775 to PHP 6,341.
- Candidate Soldier: Increased from PHP 4,620 to PHP 5,105.

END