Salary Schedule Modification
- The originally recommended 35-Grade Salary Schedule was modified to a 33-Grade Salary Schedule for effective compensation administration.
- Partial implementation occurred in 1994, 1995, and 1996.
Presidential Authority in Compensation Revision
- The President is authorized to revise the Compensation and Position Classification System under guidelines set by Congress.
Implementation Directives
- Department of Budget and Management (DBM) is tasked to implement the remaining salary increases in FY 1997.
- Specific implementation dates and salary schedules are attached as annexes for civilian and uniformed personnel.
Coverage and Exemptions
- Covers national government agencies, GOCCs, GFIs, and LGUs whose salaries conform to the Third Interim Salary Schedule.
- Exempts officials and employees legally exempted from the Compensation and Position Classification System or who do not follow the prescribed salary schedule.
Position Salary Grade Allocation
- Salary grades allocated pursuant to RA No. 6758 must be maintained without modification.
Continuation of Allowances
- Personnel Economic Relief Allowance (PERA) and Additional Compensation (ADCOM) continue as separate allowances and are not integrated into basic pay.
Treatment of Transition Allowance
- Transition allowance related to RA No. 6758 and other personnel actions is considered an advance payment of the authorized salary increases.
- Over and above allowances for public school teachers must be added to their salary rate before adjustment.
Restrictions on Allowances and Benefits
- No increase in allowances and benefits computed as a percentage of basic salary despite the salary increase.
Flexibility for Local Government Units (LGUs)
- LGUs can set their own schedule for implementing salary increases depending on financial capacity.
- Implementation must comply with the prescribed schedules and percentage application under RA No. 6758.
Retirement and Separation Benefits
- For personnel separating before November 1, 1997, their benefits are computed on the rate under the full Salary Schedule.
- Those retiring at mandatory age may opt to retire under RA No. 660 with differences paid by the employer.
Funding Sources
- NGAs to use the appropriated ₱27 billion under RA No. 8244.
- GOCCs and GFIs to charge increments to their corporate funds.
- LGUs to use their respective funds.
- Partial payments allowed for entities with insufficient funds but must be uniformly applied.
Prohibited Beneficiaries
- Salary adjustments do not apply to the President, Vice President, and Members of Congress per RA No. 8244.
Implementing Guidelines
- The Department of Budget and Management shall issue necessary implementation guidelines.
Effectivity
- The Executive Order takes effect on January 1, 1997.