Title
4th tranche salary adjustment for gov't personnel
Law
Executive Order No. 76
Decision Date
Apr 30, 2012
Executive Order No. 76 implements a modified salary schedule for civilian and military personnel in the Philippine government, with implementation in yearly tranches and specific coverage and exclusion criteria.

Law Summary

Implementation of Fourth Tranche for Civilian Personnel of the National Government

  • Fourth tranche salary schedule effective 1 June 2012.
  • Applies to all national government personnel except the President, Vice President, and Cabinet Secretaries, for whom implementation is effective 1 July 2012.

Implementation of Fourth Tranche for Military and Uniformed Personnel

  • Fourth tranche base pay schedule effective 1 June 2012.
  • Applies to military and uniformed personnel as covered.

Implementation of Fourth Tranche for Local Government Units (LGUs)

  • Implementation timing depends on LGU sanggunian based on income class and financial capability.
  • Salary rates capped as percentages of national government rates, varying by LGU class:
    • Provinces/Cities and special cities: 100%
    • Municipalities range from 75% to 100% based on income class.
  • Personal Services costs must not exceed PS budget limits under Sections 325(a) and 331(b), RA 7160.
  • No reduction in basic salaries allowed to comply with PS limits.
  • Department of Budget and Management to issue specific salary schedules for LGU income classes effective not before 1 January 2013.

Inapplicability to Certain Officials

  • No salary increase for Senators and Members of the House of Representatives shall take effect until after expiration of the full terms of approving members.

Fund Sources

  • NGAs funded by Miscellaneous Personnel Benefits Fund (MPBF) and savings; subsequent funding from annual GAA.
  • GOCCs and GFIs charged to corporate funds in their approved budgets.
  • LGUs to fund from their respective local government funds.

Uniform Implementation When Funds are Insufficient

  • GOCCs and GFIs with insufficient funds must implement scaled-down salary schedules using uniform percentage reductions.
  • LGUs with insufficient funds also apply uniform percentage reductions based on LGU income class salary schedules.

Implementing Rules and Regulations

  • Department of Budget and Management mandated to prepare and issue necessary implementing rules and regulations.

Separability Clause

  • If any provision is declared invalid or unconstitutional, remaining provisions continue in effect.

Effectivity

  • Executive Order effective immediately upon signing on April 30, 2012.

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