Purpose and legal basis
- The Circular prescribes guidelines, rules, and regulations for implementing the modified Base Pay Schedule for the MUP beginning January 1, 2018, and other provisions of Congress JR No. 1, s. 2018.
- It implements the modified Base Pay Schedule that Congress JR No. 1, s. 2018 authorizes for the MUP.
- Congress JR No. 1, s. 2018 provides that the base pay increase is implemented in two (2) years, covering FYs 2018 and 2019.
Modified Base Pay Schedule implementation
- The first year implementation of the new base pay rates for the MUP follows the Modified Base Pay Schedule under Item II of Congress JR No. 1, s. 2018.
- Incumbent MUP as of December 31, 2017 must have their actual monthly base pay adjusted effective January 1, 2018.
- The adjustment must be made to the rates in the Modified Base Pay Schedule in the applicable annex format.
- The base pay adjustment granted is subject to usual accounting and auditing rules and must be subject to appropriate re-adjustment if found not in order.
Fixed hazard pay rule
- The Hazard Pay of all MUP is fixed at Five Hundred Forty Pesos (P 540.00) per month.
- The hazard pay fixation is made pursuant to Item IV of Congress JR No. 1, s. 2018.
Discontinuance of provisional and officers’ allowances
- The Provisional Allowances and Officers’ Allowances previously granted to qualified MUP as an interim measure under Executive Order (EO) No. 201, s. 2016 are discontinued from January 1, 2018.
- The discontinuance applies because the modified base pay schedule authorized by Congress JR No. 1, s. 2018 takes effect.
Suspension of retired MUP pension indexation
- The indexation of pension of retired MUP to the base pay of those in active service is suspended with respect to the base pay increase authorized by Congress JR No. 1, s. 2018.
- The pension indexation must remain based on the Base Pay Schedule provided under Congress JR No. 4, s. 2009.
- The suspension governs notwithstanding provisions of Presidential Decree No. 1638, s. 1979, as amended, and notwithstanding Republic Act (RA) No. 8551, RA No. 5976, RA No. 9993, and RA No. 9263.
- The suspension is automatically lifted on January 1, 2019 or upon the effectivity of a pension reform law, whichever comes earlier.
Procedural requirements for base pay notices
- Agencies must prepare Notices of Base Pay Adjustment (NOBPAs) for incumbent MUP.
- The Human Resource Management Officer (HRMO) or Administrative Officer (AO) of agencies concerned prepares the NOBPAs using the attached format indicated in the annex.
- NOBPAs must be prepared subject to approval by the Head of the Agency.
- The NOBPAs must be issued to the personnel concerned.
- The base pay adjustment implemented through this process remains subject to re-adjustment if found not in order.
Fund sources, releases, and agency responsibility
- The amounts required to implement the increase in base pay and related Personnel Services (PS) expenditures for MUP must be charged against each agency’s PS authorized under RA No. 10964 or the FY 2018 General Appropriations Act (GAA).
- If there is a deficiency, the agency may request the Department of Budget and Management (DBM) for the release of funds charged to the Miscellaneous Personnel Benefits Fund.
- Agencies are responsible for proper implementation of the Circular’s provisions.
- Responsible officers are held liable for any payment not in accordance with the Circular.
- Liability does not prejudice refund by personnel concerned of any excess or unauthorized payments.
Handling of cases outside the Circular
- Cases not covered by the Circular’s provisions must be referred to the DBM for resolution.
Effectivity
- The Circular takes effect on January 1, 2018.
- The base pay adjustment, hazard pay, and allowances rules are implemented in line with the effective date provisions governing January 1, 2018 changes.