Salary Fixing of PDIC President

The order is issued under the powers vested in the President of the Philippines by law.
It relies on Section 2-A of Republic Act No. 3591, as amended, authorizing the President to fix the salary of the PDIC President at a sum commensurate with the position’s importance and responsibility.
Section 2-A of Republic Act No. 3591 also provides that the sum total of the PDIC President’s salary plus allowances and other emoluments granted by the PDIC Board becomes the ceiling for fixing the salary, allowances, and other emoluments of all other PDIC personnel.
Section 2 of the order expressly places PDIC’s ceiling-setting action outside the purview of the Salary Standardization Law (Republic Act No. 6758) effective January 1, 1999.

PDIC is created under Republic Act No. 3591, as amended to provide deposit insurance protection, promote safe and banking practices in cooperation with the Bangko Sentral ng Pilipinas (BSP), provide financial assistance to distressed banks, and act as mandatory receiver and liquidator of closed banks.
PDIC requires highly competent professionals of integrity, sourced from a competitive labor market, for functions including banking and finance, asset management and appraisal, disposal of assets and liquidation of liabilities, investigation of bank frauds, and information technology.
PDIC and BSP are described as performing complementary roles in maintaining a strong and stable banking system, with PDIC primarily responsible for deposit insurance, financial assistance to distressed banks, and receivership and liquidation.
PDIC is stated to be financially self-sufficient and capable of funding incremental compensation adjustments from its own resources without recourse to the national government.

The order fixes the basic salary of the PDIC President at the level of the BSP Governor’s basic salary.
The order treats allowances and other emoluments as distinct from the fixed basic salary, and it excludes them from the fixed basic-salary amount.
The order uses the BSP Governor’s currently fixed salary as the salary benchmark: currently at P150,000.
The order establishes a functional concept of a ceiling: the PDIC President’s total compensation (basic salary plus allowances and other emoluments granted by the PDIC Board) limits compensation setting for all other PDIC personnel.

Section 1 fixes the basic salary of the PDIC President at an amount equal to the Governor of the BSP, currently at P150,000, effective January 1, 1999.
The fixed basic salary is exclusive of allowances and other emoluments granted or to be granted by the PDIC Board of Directors.
Section 1 delegates to the PDIC Board of Directors authority to adjust the basic salary of the PDIC President with each change in the salary of the BSP Governor.
The Board’s authority under Section 1 applies specifically to adjustments tied to the BSP Governor’s salary changes.

Section 2 requires the PDIC Board of Directors to review the allowances and other emoluments established by the Board along with the PDIC President’s salary fixed under the order.
The PDIC President’s reviewed salary (as fixed herein) and allowances and other emoluments become the ceiling for fixing the salary, allowances, and other emoluments of all other personnel in the Corporation.
Section 2 provides that the Board’s ceiling-based fixing is outside the purview of the Salary Standardization Law (Republic Act No. 6758) effective January 1, 1999.