Law Summary

Introduction

This Letter of Instructions, issued by President Ferdinand E. Marcos, addresses salary adjustments for national government employees in the Philippines, aiming to align government compensation with living costs and market standards.

Salary Adjustment Provisions

• Legal Principle: A ten percent across-the-board salary adjustment is mandated for national government personnel whose positions are classified under the national compensation plan and earn less than P600/month as of March 31, 1977.
• Key Definitions:
  • National Position Classification and Compensation Plan: Framework governing salaries of national government employees.
  • Regular Agencies of Government: Entities that adhere to the national compensation plan.
• Requirements:
  • The adjustment will be effective May 1, 1977.
  • Public school teachers are specifically included, receiving additional adjustments beyond previous increases effective January 1, 1977.
• Limitations:
  • No individual salary post-adjustment may exceed P600/month.

Implementation of Salary Upgrading

• Legal Principle: A thirty percent implementation of recommended salary upgrades for national government employees based on findings from a 1976 Salary Survey is mandated.
• Timeframe: This adjustment will take effect on July 1, 1977.
• Cross-reference: The adjustments align with findings from the Budget Commission's survey of private sector salaries.

Compensation for Career Executive Service Officials (CESOs)

• Legal Principle: Full implementation of compensation levels for CESOs as stated in Presidential Decree No. 847.
• Timeframe: Effective July 1, 1977.

Provisions for Retired Employees

• Legal Principle: Retired officials and employees within one month prior to the effective dates of the salary increases are entitled to retirement benefits as if they retired on the specified effective dates.
• Requirements: Qualified beneficiaries must meet criteria outlined in the instructions.

Salary Increases in Government-Owned Corporations

• Legal Principle: Government-owned and controlled corporations, state universities, and colleges not following the national compensation plan may authorize salary increases.
• Requirements:
  • Increases must comply with the provisions of Presidential Decree No. 985.
  • Authorized increases shall not exceed the compensation levels resulting from the changes in points 1 and 2 for comparable positions in regular government agencies.
• Approval Process: Any changes must receive prior approval from the Budget Commission.

Budgetary Provisions

• Legal Principle: The Commissioner of the Budget is directed to allocate funds for the salary adjustments.
• Requirements:
  • A minimum of P300 million is to be made available for these adjustments.
  • Funds will derive from increased specific taxes on oil products and will support salary adjustments as outlined.
• Additional Responsibilities:
  • Propose measures for employees stationed abroad.
  • Conduct ongoing studies on compensation for critical employee groups.
  • Formulate necessary rules and procedures for salary adjustments.

Conclusion

• Effective Date: The order is effective immediately upon issuance on April 21, 1977.

Key Takeaways

• A ten percent salary adjustment for national government employees earning below P600/month takes effect on May 1, 1977.
• A thirty percent salary upgrade based on a 1976 survey will be implemented starting July 1, 1977.
• Compensation for CESOs is to be fully implemented as per P.D. No. 847 from July 1, 1977.
• Retired employees are entitled to benefits based on the effective dates of the salary increases.
• The budget for the salary adjustments is to be sourced from increased taxes, with measures for non-compliant corporations requiring approval from the Budget Commission.