Coverage
- Applicable to all MUP including:
- Armed Forces of the Philippines (AFP) under Department of National Defense (DND)
- Philippine National Police (PNP), Philippine Public Safety College (PPSC), Bureau of Fire Protection (BFP), Bureau of Jail Management and Penology (BJMP) under Department of the Interior and Local Government (DILG)
- Philippine Coast Guard (PCG) under Department of Transportation (DOTr)
- National Mapping and Resource Information Authority (NAMRIA) under Department of Environment and Natural Resources (DENR)
Modified Base Pay Schedule Implementation
- Effective January 1, 2018, base pay rates for MUP are adjusted according to the schedule attached as Annex aAa to the Circular.
- The monthly base pay of incumbents as of December 31, 2017, will be adjusted upwards per the new schedule.
Hazard Pay
- Hazard Pay for all MUP is fixed at Five Hundred Forty Pesos (P 540.00) monthly.
- This is a flat amount, regardless of rank or position, pursuant to Congress JR No. 1, s. 2018, Item IV.
Discontinuance of Provisional and Officers' Allowances
- Provisional Allowance and Officers' Allowances previously provided under EO No. 201, s. 2016 are to be discontinued starting January 1, 2018.
- These were interim benefits now superseded by the new base pay schedule adjustments.
Suspension of Pension Indexation
- Pension indexation for retired MUP — linking their pension increase to the base pay of active personnel — is suspended for the base pay increase authorized by Congress JR No. 1, s. 2018.
- Pension adjustments will continue based on the earlier base pay schedule under Congress JR No. 4, s. 2009.
- The suspension will be lifted automatically on January 1, 2019, or earlier if a pension reform law takes effect.
Procedural Guidelines
- Human Resource Management Officers or Administrative Officers of agencies prepare Notices of Base Pay Adjustment (NOBPAs) for incumbents using the prescribed format.
- NOBPAs must be approved by the agency head and issued to affected personnel.
- The base pay adjustment is subject to standard accounting and auditing rules, with recalculations if irregularities are found.
Funding and Release of Funds
- Increased personnel services costs for base pay adjustments must be charged to agency budgets as authorized under the FY 2018 General Appropriations Act.
- Agencies may request additional funds from the Miscellaneous Personnel Benefits Fund in case of budget deficiency.
Agency Responsibilities and Liabilities
- Agencies are accountable for implementing the Circular's provisions correctly.
- Responsible officers may be held liable for improper payments.
- Personnel who received excess or unauthorized payments must refund such amounts.
Resolution of Uncovered Cases
- Issues not addressed by the Circular are to be referred to the DBM for resolution.
Effectivity
- The Circular took effect on January 1, 2018, as mandated by the Secretary of Budget and Management.
Legal References
- Executive Order No. 201, s. 2016 — previously authorized Provisional and Officers' Allowances.
- Congress JR No. 4, s. 2009 — prior base pay schedule for pension computation.
- Presidential Decree No. 1638, s. 1979 — AFP Military Personnel Retirement and Separation Decree.
- Republic Acts No. 8551, 5976, 9993, 9263 — various laws governing pension and compensation for various uniformed services.