Coverage
- Applies to all local government positions regardless of:
- Employment status (permanent, temporary, contractual, casual, emergency).
- Nature of appointment (appointive or elective).
- Employment basis (full-time or part-time).
- Includes both existing and newly created positions.
Exemptions
- Consultants and experts hired for limited periods performing specific activities; compensated under existing laws until revised.
- Student laborers, apprentices, and similarly situated individuals; continue under current compensation rules.
- Laborers hired under job contracts (pakiao), piece-rate workers, mail contractors, and analogous cases.
Definitions of Terms
- Present Salary: Basic salary as of December 31, 1993, excluding allowances, bonuses, honoraria, and other additional compensation.
- Transition Allowance: The amount exceeding the eighth step of the salary grade allocation of the employee's position.
Compensation Rules
- Revises salary schedules under Joint Commission Circular No. 36, effective January 1, 1994, as per Executive Order No. 164 (Interim Salary Schedules).
- Incumbents receive salary based on their designated step as of December 31, 1993.
- Incumbents with transition or "over-and-above" allowances also receive authorized salary adjustments; any excess treated as advance implementation per Joint Senate and House Resolution No. 1, s. 1994.
- New appointments from January 1, 1994, onwards start at the first step of the salary grade unless a higher prior permanent salary exists.
- Salary adjustments do not apply to devolved national personnel until local counterparts' salaries are equalized.
- Personnel Economic Relief Allowance (PERA) and Additional Compensation remain as non-integrated allowances.
- Contractual employees paid from lump sum or project funds may receive up to 120% of the adjusted minimum hiring rate of comparable regular positions.
- Daily wages computed by dividing monthly salary by 22 working days; monthly total not to exceed monthly rate.
- Interim Salary Schedules used for computing retirement pay, year-end bonuses, and similar benefits.
Prohibition
- Local Chief Executives and local legislative councils are prohibited from granting salary adjustments exceeding amounts authorized in the Circular.
Funding Source
- Funds for implementation must come from local government unit (LGU) resources.
- Funding must be appropriated by local legislative ordinances.
- If funds are insufficient, salary increases shall be prorated uniformly across all positions in the LGU, ensuring no employee receives a higher percentage increase than others.
Responsibility of Local Chief Executives
- Provincial Governors, City or Municipal Mayors are responsible for submitting required reports.
- They may be held personally liable for non-compliant salary payments and required to recover unauthorized payments.
Contributions
- Salary adjustments are subject to mandatory contributions:
- Government Service Insurance System (GSIS) life and retirement premiums.
- Home Development Mutual Fund (HDMF) contributions.
- Applies to members of GSIS and HDMF as per RA 660 and CA 186.
Saving Clause
- Issues not covered by the Circular are referred to the Secretary of Budget and Management for resolution.
Effectivity
- Circular takes effect on January 1, 1994.