Coverage and who must comply
- The Circular covers all departments, bureaus, and agencies of the national government.
- The Circular includes government financial institutions.
- The Circular includes other government-owned and controlled corporations.
- The Circular governs agency actions involving changes or modifications in staffing, position classification, compensation, and related matters in the government.
Purpose of the policy
- DBM reviews policies and procedures on creation/modification of organizational structures, staffing patterns, position classification, compensation, and related matters.
- The Circular frames the review as aimed at rationalizing, standardizing, simplifying, and clarifying existing policies.
- The Circular serves as an initial step toward the streamlining of staffing and position classification procedures.
Annual budget incorporation requirement
- Final DBM action on agency proposals involving a change/modification in an agency’s existing staffing pattern, position classification, and organizational structure must be incorporated in the annual national budget submitted to Congress.
- Agencies must submit such proposals in time for DBM evaluation during the period of preparing the national budget in accordance with the prescribed calendar.
- Proposals received after the prescribed calendar are processed and evaluated as part of the succeeding year’s proposals.
- Example application: proposals received after the approval by the Cabinet of the proposed 1996 budget to be submitted to Congress are considered during the preparation of the 1997 budget.
Timing rules for effectivity of approved changes
- Unless specifically stated or prescribed otherwise, approved requests for changes in an agency’s organizational structure, staffing pattern, or position classification take effect at the beginning of the calendar year immediately following the year of approval.
- In highly meritorious cases, DBM may act on proposals during the current year.
- Highly meritorious cases include cases where substantial savings will be realized by the government.
- Highly meritorious cases include emergency situations or cases when the proposals are directed by the President.
Limits on coverage: vacant position filling
- The Circular covers only modifications in the agency’s staffing patterns or organization.
- The Circular does not govern the filling of existing vacant positions.
- Filling existing vacant positions continues to be governed by existing civil service rules and regulations.