Guidelines for implementing revised PCCS in local gov

Applies to all positions in LGUs regardless of:
- Employment status (permanent, temporary, contractual, casual, emergency)
- Nature of appointment (appointive or elective)
- Work schedule (full-time or part-time)
- Whether positions are currently existing or created in the future.

Consultants and experts hired for limited periods with specific outputs, compensated under existing laws until revisions occur.
Student laborers, apprentices, and similar roles under existing compensation laws until amended.
Laborers hired under contract arrangements (pakiao), piecework-paid laborers including mail contractors, and similar roles.

Present Salary: Basic salary rates as of December 31, 1996 (for January 1, 1997 adjustment) and October 31, 1997 (for November 1, 1997 adjustment), inclusive of transition allowance but excluding PERA, ADCOM, RATA, year-end bonus, honoraria, 20% premium for contractual personnel, and other additional compensation.
Transition Allowance: The excess amount of the present salary over the eighth step of the employee's position salary grade allocation.

Two main effective dates for salary schedules:
- January 1, 1997: Fourth interim salary schedules (Annexes A-1 to A-8).
- November 1, 1997: Final salary schedules (Annexes B-1 to B-8).
LGUs have flexibility to set their own schedules for implementation based on financial capacity.
Early implementation before November 1, 1997 requires adherence to Personal Services limitations under Section 325(a) of RA 7160.
Previous across-the-board increases exceeded limits under RA 6758; excess rates to be considered advance adjustments.

Salary grades per RA 6758 are maintained; salary steps as of year-end 1996 and October 31, 1997 determine adjustments.
New appointments receive salary at first step of designated salary grade.
Devolved personnel receive salary equal to their organic counterparts in LGUs.
Public Health Workers' salary is standardized regardless of LGU income classification pursuant to RA 7305.
Transition allowance considered advance payment; excess deducted from future adjustments.
PERA and ADCOM remain as allowances, not integrated into basic salary.
Contractual employees may receive up to 20% premium over minimum hiring rate.
Daily paid employees’ wages computed by dividing monthly salary by 22 working days, with maximum monthly wage capped.
Retirement, year-end bonus and other benefits computed based on salary schedules plus transition allowance; special provisions for separations before full implementation date.
Partial and proportionate salary increases allowed in cases of insufficient local funds.
Options for retirement benefits under RA 660 or RA 1616 provided with corresponding payments.

Maximum honoraria for barangay officials and employees adjusted according to new salary schedules.

LGUs below special cities and first-class provinces/cities may adopt higher class salary schedules with conditions.
LGUs may revert to prescribed schedules for their income class without reducing pay.

Local Chief Executives and Sangguniang bodies are forbidden from granting salary adjustments beyond authorized amounts.

Implementation funding sourced from LGUs’ own funds.
Proper appropriation ordinance must be enacted by the respective Sangguniang Panlalawigan/Panlungsod/Bayan/Barangay.

Any issues not addressed in this Circular shall be referred to the Secretary of Budget and Management for resolution.