Law Summary
Implementation of Second Tranche Salary Schedule for Civilian Personnel
- The second tranche of the modified Salary Schedule (Annex A) applies starting June 24, 2010, for NGAs, GOCCs, and GFIs.
- Salaries of officials and employees with terms conterminous with the incumbent President are not adjusted under this tranche.
Implementation of Second Tranche Base Pay Schedule for Military and Uniformed Personnel
- The modified Base Pay Schedule's second tranche (Annex B) is also effective June 24, 2010, for military and uniformed personnel.
Implementation of Second Tranche Salary Schedule for Local Government Units (LGUs)
- LGU implementation depends on the sanggunian's discretion based on LGU income class and financial capability.
- Salary rates must not exceed certain percentages relative to Annex A rates, depending on LGU classification (ranges from 65% to 100%).
- Personal Services costs must not surpass PS limitations in LGU budgets per sections 325(a) and 331(b) of R.A. No. 7160.
- No reduction in basic salaries of incumbents to comply with PS limitations.
- Department of Budget and Management issues salary schedules per LGU income class, effective not earlier than January 1, 2010.
Non-Applicability for Certain Constitutional Officials
- Salaries under this order do not apply to the incumbent President, Vice-President, and Members of Congress whose terms expire in 2013.
Funding Sources
- NGAs: appropriations from the Miscellaneous Personnel Benefits Fund under FY 2010 General Appropriations Act and any available savings.
- GOCCs and GFIs: from their corporate funds in approved operating budgets.
- LGUs: from their local government funds.
Uniform Implementation in Case of Insufficient Funds
- GOCCs and GFIs with insufficient funds must implement salaries as uniform percentages of the rates in Annex A.
- LGUs with inadequate funds must apply uniform percentages of the rates in the salary schedules for their income classes.
Implementing Rules and Regulations
- The Department of Budget and Management is tasked with preparing and issuing necessary rules and regulations for this Executive Order's implementation.
Effectivity
- The Executive Order takes effect immediately as of June 23, 2010.