4th Tranche Salary Schedule Implementation Order

The fourth tranche of the modified Salary Schedule applies to national government civilian personnel.
Effective date is June 1, 2012, except for the President, Vice President, and Cabinet Secretaries, for whom it is July 1, 2012.

The fourth tranche of the Base Pay Schedule applies to military and uniformed personnel.
Implementation date is June 1, 2012.

LGU legislative bodies determine implementation based on income classification and financial capability.
Salary rates may not exceed specified percentages relative to the national Salary Schedule, varying by LGU income class and city classification.
Personal Services cost must comply with the budget limitations under Sections 325(a) and 331(b) of R.A. No. 7160.
No reduction in basic salaries of incumbents is allowed to meet budget limits.
The Department of Budget and Management (DBM) will issue corresponding salary schedules for LGUs.

Per Section 10, Article VI of the Constitution, salary increases for Senators and House Members will only take effect after their current terms expire.

For NGAs, funds come from the Miscellaneous Personnel Benefits Fund (MPBF) in the FY 2012 General Appropriations Act and available savings, with future funding from annual appropriations.
For GOCCs and GFIs, funds are charged against their corporate funds.
For LGUs, funds come from local government funds.

GOCCs, GFIs, and LGUs lacking sufficient funds will implement proportional salary schedules at uniformly reduced rates based on their financial capability.

The Department of Budget and Management is tasked to prepare and issue rules and regulations to implement this Executive Order.

If any provision is declared unconstitutional or invalid, the remaining provisions will continue to be effective.