Law Summary
Statement of Policy
- Establishes a just and equitable compensation system for all government personnel.
- Ensures pay differences reflect duties, responsibilities, accountabilities, qualifications.
- Standardization and rationalization across agencies to promote social justice, integrity, efficiency, productivity, accountability, and excellence.
- Compensation should be competitive with the private sector to attract and retain competent civil servants.
- Performance-based incentives reward outstanding personnel and organizations.
- Compensation scheme considers government financial capacity and prioritizes efficient allocation of funds.
Coverage
- Applies to all civilian government personnel across the Executive, Legislative, Judicial branches, Constitutional Commissions/offices, GOCCs not covered by RA 10149, and LGUs.
- Covers regular, contractual, casual, appointive, elective, full-time, and part-time government personnel.
Exclusions
- Military and uniformed personnel.
- GOCCs under RA 10149 covered by Governance Commission for GOCCs' Compensation and Position Classification System.
- Individuals engaged through job orders, contracts of service, consultancy, or service contracts without employer-employee relationship.
Position Classification System
- Maintains three categories of positions: Sub-professional, Professional, and Executive.
- Department of Budget and Management (DBM) regularly reviews and updates the Index of Occupational Services (IOS) reflecting job duties, complexities, skills, and competencies.
Compensation System
- Continues Total Compensation Framework composed of:
- Basic Salaries including Step Increments;
- Standard Allowances and Benefits;
- Specific-Purpose Allowances and Benefits;
- Incentives.
Salary Schedule
- Modified salary schedule implemented in four tranches from 2020 to 2023.
- Covers monthly remuneration with detailed salaries per Salary Grade and Step.
- Part-time personnel receive proportionate remuneration based on actual services.
- Casual personnel paid daily rates based on dividing monthly salary by 22 working days.
Mid-Year Bonus
- One (1) month basic salary awarded as Mid-Year Bonus after four months of satisfactory service.
- Existing Year-End Bonus (one month basic salary) and Cash Gift (₱5,000) remain.
- Bonuses tied to specified dates (e.g., Mid-Year not before May 15, Year-End in November).
Program on Awards and Incentives for Service Excellence (PRAISE)
- Incentives system under CSC per Administrative Code.
- Monetary and non-monetary rewards with guidelines issued by CSC in consultation with DBM.
Compensation Adjustment for Local Government Unit (LGU) Personnel
- LGU personnel may receive modified salary and incentives respecting LGU budget Personnel Services limits.
- Salary caps aligned with LGU income classification and as percentage of national schedule.
- Barangay personnel receive honoraria per income classification, eligible for Year-End Bonus and Cash Gift.
- Partial implementation must be uniform across positions within LGUs.
Implementation Schedule
- NGAs implementation in four tranches (2020 to 2023).
- GOCCs and LGUs have at least four years for implementation based on financial capacity; not earlier than 2020.
Exempt Entities
- Entities not covered by RA 6758 CPCS, GOCCs covered by GCG CPCS under RA 10149, and those with their own approved systems.
- Exempt entities governed by own approved compensation and position classification systems.
Applicability to Certain Officials
- Salaries for President, Vice-President, and Members of Congress take effect only after current terms expire, per constitutional provisions.
Funding Sources
- NGAs: From available and subsequent General Appropriations Acts.
- GOCCs: Corporate funds within operating budgets approved by DBM; partial implementation allowed if funds insufficient.
- LGUs: Charged against local government funds as governed by law.
Implementing Guidelines
- DBM responsible for issuing guidelines for implementing the Act's specific provisions.
Separability Clause
- Invalidity of one provision does not affect the validity of other provisions.
Continuity of Related Laws
- Existing laws and orders consistent with or not modified by this Act remain effective.
Repealing Clause
- Prior inconsistent laws, decrees, orders, rules, or regulations repealed or amended accordingly.
Effectivity
- Act takes effect on January 1, 2020.