Title
EO Modifying Gov't Salary and Benefits 2016
Law
Executive Order No. 201
Decision Date
Feb 19, 2016
President Benigno S. Aquino III's Executive Order No. 201 revises the salary schedule for civilian government personnel, increasing minimum salaries and aligning compensation with private sector rates while introducing additional benefits for both civilian and military personnel to enhance retention and motivation.

Law Summary

Coverage

  • Applies to all civilian personnel across Executive, Legislative, and Judicial branches, Constitutional Commissions, Constitutional Offices, certain GOCCs, and LGUs regardless of appointment status or work basis (full-time or part-time).
  • Provisional Allowance and Officers’ Allowance apply only to MUP under DND, DILG, PCG, and NAMRIA.
  • Mid-Year Bonus, Enhanced Performance-Based Bonus (PBB), and Productivity Enhancement Incentive granted to both civilian personnel and MUP.
  • Hazard Pay increase applies only to MUP.
  • Excludes individuals hired via job orders, consultancy, contracts without employer-employee relationship.

Modified Salary Schedule and Step Increments

  • Salary Schedule adjustment for civilian personnel to be implemented over four tranches from 2016 to 2019.
  • Comprehensive breakdown of salary grades and steps, with progressive increments from Step 1 to Step 8 within each grade.

Mid-Year Bonus

  • Granted starting FY 2016, equal to one month’s basic salary as of May 15.
  • Eligibility requires at least 4 months of satisfactory service and active employment on May 15.
  • Given annually not earlier than May 15, in addition to existing Year-End Bonus and Cash Gift.

Enhanced Performance-Based Bonus (PBB)

  • Existing PBB enhanced to strengthen results orientation.
  • Amount ranges from one to two months basic salary.
  • Phased implementation starting FY 2017.
  • Eligibility based on achievement of agency and individual performance targets and good governance compliance.
  • Progressive rate system tied to position and responsibility.
  • Inter-Agency Task Force to establish eligibility rules and ranking system.

Productivity Enhancement Incentive

  • Annual incentive of ₱5,000 starting FY 2016.
  • Given not earlier than December 15.
  • Aims to improve government employee productivity.

Provisional Allowance Schedule for Military and Uniformed Personnel

  • Monthly Provisional Allowance granted in four tranches as an interim measure instead of base pay increases.
  • Differentiated allowances per rank and department (DILG, DND, BJMP, BFP, PNP, PPSC, PCG, NAMRIA).
  • Implemented until base pay schedule rationalization occurs considering pension implications.

Hazard Pay Increase

  • Incremental increase from ₱240/month to ₱840/month by 2019 in four stages.
  • Applies exclusively to Military and Uniformed Personnel.

Officers’ Allowance for MUP

  • Provided to designated officer ranks as interim measure.
  • Allowance rates increase over four tranches.
  • Specific amounts assigned per rank and department, aligning with Provisional Allowance.

Compensation Adjustment for LGU Personnel

  • LGUs may grant modified salary schedule and benefits subject to:
    • Authorization by their respective sanggunian under RA No. 7160.
    • Compliance with Personnel Services (PS) budget limitations.
  • Salary schedule implementation depends on LGU income classification with specified percentage caps relative to national schedule.
  • Barangay personnel to receive honoraria capped by LGU income classification, with bonuses and cash gifts adjusted accordingly.

Implementation Schedule

  • Four-phase implementation from January 1, 2016 to January 1, 2019 for National Government Agencies.
  • Corresponding increments for civilian personnel and allowances for MUP.
  • GOCCs and LGUs to implement in at least four years based on financial capacity.
  • Partial implementation allowed with uniform percentages across positions.

Retroactive Application

  • First tranche effects retroactively effective January 1, 2016 for civilian personnel and MUP allowances.
  • GOCCs and LGUs subject to financial capability and legal compliance for retroactive effect.

Entities Exempted from Coverage

  • Government agencies and GOCCs exempt under their enabling laws or charters (including those exempted from RA No. 6758).
  • GOCCs governed under RA No. 10149 with their own CPCS approved by the President.
  • Such entities governed by their respective CPCS.

Applicability to Certain Officials

  • Salary adjustments for President, Vice President, and Members of Congress shall take effect only after current terms expire.
  • Cabinet members’ salary adjustments effective July 1, 2016.

Funding Source

  • FY 2016 appropriations under GAA for national government agencies; subsequent years included in National Expenditure Program.
  • GOCCs to fund from corporate operating budgets approved by DBM.
  • LGUs to charge their respective funds consistent with relevant laws.

Implementing Guidelines

  • Department of Budget and Management (DBM) to issue necessary guidelines to implement this Order.

Separability Clause

  • Declared invalidity or unconstitutionality of any part does not affect validity of other provisions.

Repealing Clause

  • All inconsistent rules, regulations, and issuances are repealed or modified accordingly.

Effectivity

  • Effective immediately upon publication in a newspaper of general circulation.

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