Initial Implementation of New PNP Salary Structure

Section 36 of Republic Act No. 8551 (PNP Reform and Reorganization Act) is the statutory basis for implementing the new PNP salary structure.
Executive Order (EO) 107, dated June 10, 1999, supplements Republic Act No. 8551 by providing equivalent salary grade levels across the PNP hierarchy.
Republic Act No. 8760 and the FY 2000 General Appropriations Act (GAA) provide the appropriation for the initial implementation.
The FY 2000 GAA appropriates P2,956,000,000 for initial implementation of the new PNP salary structure.
The appropriation of P2,956,000,000 equals thirty percent (30%) of the increment cost required for full implementation, based on the salary schedule under Joint Senate-House of Representatives Resolution No. 1, s. 1994.

Section 36 of Republic Act No. 8551 requires that the lowest rank of Police Officer (PO) has the same salary grade level as a public school teacher assigned Salary Grade (SG) 10 under the Salary Standardization Law (SSL).
EO 107 (June 10, 1999) provides the equivalent salary grades for each rank in the PNP hierarchy, with the lowest rank at SG-10 for PO I.
Republic Act No. 8760 and the FY 2000 GAA fund the initial rollout of the new salary structure for PNP officers and enlisted personnel.
The Circular prescribes implementation rules to operationalize the initial funding and salary schedules for FY 2000.

The Circular covers all officers and enlisted personnel of the Philippine National Police (PNP).

“Present base pay” for purposes of this Circular means the basic pay received as of December 31, 1999 as prescribed under Annex E of National Budget Circular (NBC) 458 (series of 1997), corresponding to the personnel’s designated ranks.
The base pay of PNP officers and enlisted personnel must be adjusted effective January 1, 2000.
The adjustment rates must follow the First Interim Salary Schedule attached to the Circular as Annex A.
The First Interim Salary Schedule rates must be used as the basis for computing longevity pay, year-end bonus, and retirement benefits.
The Circular requires that the existing rates of other allowances and collateral benefits be maintained.

The Secretary of the Department of the Interior and Local Government is prohibited, unless allowed by law and/or order, from granting any salary or compensation adjustment in excess of the amounts authorized under this Circular.

The initial implementation of the new salary schedule must be charged against the P2,956,000,000 appropriation for this purpose under Republic Act No. 8760 and the FY 2000 GAA.

The PNP Chief is personally liable for any payment of salary adjustment that is not in accordance with this Circular.
Any excess payment must be refunded by the personnel who received it, without prejudice to the PNP Chief’s liability for noncompliance.

Cases not covered by this Circular must be referred to the Secretary of Budget and Management for resolution.