Implementation of the Third Tranche for Civilian Personnel
- The third tranche of the modified Salary Schedule for civilian personnel in NGAs, GOCCs, and GFIs takes effect on 1 June 2011.
Implementation of the Third Tranche for Military and Uniformed Personnel
- The third tranche of the modified Base Pay Schedule for military and uniformed personnel takes effect on 1 June 2011.
Implementation of the Third Tranche for Local Government Units (LGUs)
- The third tranche adjusted salaries for LGU personnel are subject to income classification and financial capability of the LGU.
- Salary rates shall not exceed prescribed percentages relative to the national salary schedule based on LGU income class and category (provinces/cities or municipalities).
- Personal Services (PS) costs of LGUs must not exceed PS budget limitations under RA No. 7160.
- There is a protection against salary diminution for incumbents to comply with PS limitations.
- The Department of Budget and Management (DBM) will issue specific salary schedules for each LGU income class effective not earlier than 1 January 2012.
Constitutional Limitation on Compensation Increase
- Compensation increases shall not take effect until after the expiration of the full term of the Senators and House Representatives who approved the increase, consistent with Section 10, Article VI of the Constitution.
Funding Sources for the Salary Adjustments
- For NGAs: Charged against the Miscellaneous Personnel Benefits Fund (MPBF) in the FY 2011 General Appropriations Act (GAA) and available savings; future amounts included in annual GAAs.
- For GOCCs and GFIs: Charged against their corporate funds and operating budgets.
- For LGUs: Charged against their local government funds.
Uniform Implementation in Cases of Insufficient Funds
- GOCCs and GFIs without sufficient funds shall implement salary schedules at uniform percentages of the national rates.
- LGUs without sufficient funds shall similarly implement proportional schedules based on their income class salary schedules.
Rules and Regulations
- The Department of Budget and Management (DBM) is tasked with issuing necessary rules and regulations to implement this Executive Order.
Separability Clause
- If any provision is declared invalid or unconstitutional, other provisions remain valid and enforceable.
Repealing Clause
- All inconsistent orders, rules, regulations, or issuances are repealed, amended, or modified accordingly.
Effectivity Clause
- The Executive Order takes effect immediately upon issuance (April 29, 2011).