Revised Govt Compensation and Benefits EO 2016

Minimum salary for Salary Grade 1 raised from P9,000 to P11,068 to enhance competitiveness.
Government compensation targeted to reach at least 70% of the median private sector market rates across all salary grades.
Elimination of overlaps between salary grades to reflect distinct duties and responsibilities.
Introduction of additional benefits to maximize government employees’ net take-home pay.
Strengthening of performance-based incentives to reward higher responsibility and achievement.
Alignment of military and uniformed personnel (MUP) compensation with pension system reforms.

Modified salary schedule applies to all civilian personnel in the Executive, Legislative, and Judicial branches, Constitutional Commissions, GOCCs (not covered by RA 10149), and LGUs.
Applies regardless of appointment status or employment basis.
Provisional Allowance Schedule and Officers’ Allowance apply only to certain military and uniformed personnel under DND, DILG, PCG, and NAMRIA.
Bonuses and Productivity Incentives apply to civilians and MUP except Hazard Pay (only MUP).
Job order and contract-based personnel without employer-employee relationship are excluded.

Four-tranche implementation of revised salary schedule for civilian personnel with detailed salary grades and steps.
Corresponding provisional allowance and allowances for MUP, including Hazard Pay, to be implemented in parallel tranches.

Starting FY 2016, a Mid-Year Bonus equivalent to one month’s basic salary granted to personnel with at least four months satisfactory service.
Given not earlier than May 15 annually.
Augments existing Year-End Bonus and prescribed Cash Gift.

PBB enhanced to range from one to two months’ basic salary based on agency and individual performance.
Two-phase implementation starting FY 2017.
Eligibility subject to performance target achievement, good governance compliance.
Inter-Agency Task Force to define conditions, eligibility, and ranking systems.

Monthly Provisional Allowance granted in four tranches to various ranks in DILG, DND, BJMP, BFP, PNP, PCG, and NAMRIA.
This serves as interim compensation supplement pending pension reform and base pay rationalization.

Hazard Pay for MUP increased progressively from P240 to P840 monthly over four years (2016–2019).

LGUs may implement modified salary schedule and benefits subject to authorization by sanggunian and compliance with personnel service limitations.
Salary rates correspond to LGU income classification percentages.
Barangay personnel receive honoraria with limits aligned to LGU classification, with bonuses and cash gift provided.

Phased implementation for national government agencies from January 2016 to January 2019.
GOCCs and LGUs implement within at least four years per financial capability.
Partial implementation allowed for entities with inadequate funds on a uniform percentage basis.

Effective retroactively from January 1, 2016 for first tranche salary and allowances.
Retroactivity for GOCCs and LGUs subject to financial capacity and compliance.

Agencies and GOCCs exempted from RA No. 6758 coverage or governed by GCG CPCS are excluded.
These agencies follow their respective compensation systems upon DBM or GCG recommendation and presidential approval.

Salary changes for President, Vice President, and Congress members take effect after current terms expire.
Cabinet members’ salary adjustments start July 1, 2016.

For national agencies, funded by appropriations in the GAA starting FY 2016 with future requirements proposed to Congress.
GOCCs fund adjustments from corporate budgets approved by DBM.
LGUs charge costs against their funds in accordance with applicable laws.

Department of Budget and Management (DBM) to issue necessary guidelines for order implementation.

Order takes effect immediately upon publication in a newspaper of general circulation.