Adoption and Modification of Salary Schedule
- Government adopted a modified Salary Schedule based on the revised Compensation and Position Classification System.
- Original Congress recommendation was a 35-Grade Salary Schedule; modified to a 33-Grade Schedule for effectiveness.
- Partial implementation occurred in 1994, 1995, and 1996 through earlier executive orders.
Scope and Coverage
- Applies to officials and employees of National Government Agencies (NGAs), Government-Owned or Controlled Corporations (GOCCs), Government Financial Institutions (GFIs), and Local Government Units (LGUs).
- Excludes officials and employees exempted by law from the Compensation and Position Classification System or who do not follow the government salary schedule.
Salary Grade Allocation
- Existing salary grade allocation pursuant to Republic Act No. 6758 remains unchanged.
Implementation and Effective Dates
- Full implementation directed for FY 1997.
- January 1, 1997: 50% of remaining salary adjustment for civilian personnel and uniformed personnel.
- November 1, 1997: Remaining 50% salary adjustment, completing full implementation.
Personnel Economic Relief Allowance (PERA) and Additional Compensation (ADCOM)
- PERA and ADCOM continue as allowances, not integrated into basic pay.
Transition Allowance
- Transition allowance due to previous adjustments considered as advance payment of current salary increases.
- For public school teachers and related personnel, excess allowances first added to salary rate before adjustment.
Allowances and Benefits Based on Basic Salaries
- No increase in allowances and benefits calculated as a percentage of basic salary despite salary increases.
Flexibility in Local Government Units (LGUs)
- LGUs may set their own implementation schedule depending on financial capacity.
- Must comply with the salary increase schedule and percentage rules under RA 6758.
Separation from Government Service
- Retirement/separation benefits computed based on full salary schedule for personnel retiring before November 1, 1997.
- Mandatory retirees may opt for retirement under RA No. 660; differences in retirement benefits to be paid by the last employer.
Funding Sources
- NGAs to use budget appropriations under RA No. 8244.
- GOCCs and GFIs use corporate funds.
- LGUs use their respective funds.
- Partial implementation allowed if funds insufficient, but adjustments must be uniform within the entity.
Prohibition of Benefits to Certain Officials
- President, Vice President, and Members of Congress are explicitly excluded from receiving salary adjustments.
Implementing Guidelines and Effectivity
- Department of Budget and Management (DBM) tasked to issue detailed implementation guidelines.
- Executive Order effective January 1, 1997.