Legal basis and implementation phase
- Executive Order No. 290 mandated an increase in the basic salaries as of December 31, 1995 for local government personnel effective January 1, 1996, which drives this implementation.
- The Circular governs the third phase of implementing the Revised PCCS in government.
- The salary rates in the Third Interim Salary Schedules (TISS) must conform to Section 10 of Republic Act No. 6758.
- Salary rates produced by successive across-the-board increases that exceed RA 6758 allowable amounts are treated as advance implementation of the 3rd phase of Salary Standardization II.
Purpose and scope of coverage
- DBM Local Budget Circular No. 60 prescribes rules and regulations to govern the third phase of Revised PCCS implementation in local government.
- The Circular covers all positions in local government units (LGUs).
- Coverage includes positions that are permanent, temporary, contractual, casual, or emergency in nature.
- Coverage includes positions that are appointive or elective and full-time or part-time, including positions now existing or hereafter created in LGUs.
Defined salary concepts
- “Present salary” means the actual basic salary received as of December 31, 1995, exclusive of Personnel Economic Relief Allowance (PERA), Additional Compensation, representation and transportation allowances, bonus and cash gift, honoraria, the 20% premium over the basic pay of contractual personnel, and any other form of additional compensation.
- “Transition allowance” means the excess of the present salary over the 8th step of the grade allocation of the employee’s position.
Salary schedules and compensation rules
- The salary rates are adjusted as shown in the Third Interim Salary Schedules (TISS) marked as Annexes “A” to “H”.
- Salary grades in the salary schedule and the corresponding salary grade allocation of positions prescribed under RA 6758 must be maintained.
- Incumbents must receive the salary rates corresponding to their designated salary steps in the salary grade allocation of their positions as of December 31, 1995.
- Devolved personnel and their organic local counterparts whose salaries are equal to the same must receive the same adjusted salary.
- Employees with transition allowance or whose actual salary as of December 31, 1995 exceeds the 8th step of the salary grade allocation under the TISS must continue to receive the same salary.
- Public Health Workers (PHWs) must receive salary rates shown in Annex “A”, regardless of the income classification of the LGUs where they are assigned, pursuant to RA 7305.
- PERA and Additional Compensation must continue to be paid as allowances and are not considered integrated into the basic salary rates contained in the TISS.
- Contractual employees whose salaries are paid out of lump sum appropriations or project funds may be entitled to a premium of not more than 20% of the adjusted minimum hiring rate of comparable regular positions.
- The wage rates of daily paid employees must be computed by dividing the monthly salary rate in the TISS by twenty two (22) working days, and total monthly wages must not exceed the monthly salary rate in the TISS.
- Once implemented, the TISS rates must be used as the basis for computing retirement pay, year-end bonus, and other similar benefits.
- If local funds are insufficient to implement the salary schedule for an LGU income class, salary increases must be implemented partially and proportionately for all positions in the concerned LGU.
Adoption of salary schedules and reversion
- LGUs lower than special cities and first class provinces and cities may adopt the salary schedule for higher class LGUs subject to the conditions and limitations in Local Budget Circular (LBC) No. 56 dated January 25, 1995.
- An LGU that adopted a higher salary schedule under LBC 56 may opt to revert to the salary schedule based on its income classification.
- Reversion must ensure that no personnel suffer diminution in pay due to the reversion.
Prohibitions, funding, and administrative handling
- Local Chief Executive/Sanggunian Panlalawigan/Panlungsod/Bayan are prohibited from granting any adjustment in excess of the amounts authorized in the Circular.
- The required amount for implementing the third phase must come from the respective funds of the local government units.
- The required amount must be provided in an appropriation ordinance enacted by the Sangguniang Panlalawigan/Panlungsod/Bayan.
- Cases not covered by the Circular must be referred to the Secretary of Budget and Management for resolution.
Exemptions and special cases
- Consultants and experts hired by government entities for a limited period to perform specific activities or services with expected outputs must continue to be compensated under existing applicable laws, rules, and regulations until revised or amended.
- Student laborers and apprentices and others similarly situated must continue to be compensated under existing applicable laws, rules, and regulations until revised or amended.
- Laborers hired as part of a contract (pakiao), those paid on piecework basis (including mail contractors), and others similarly situated must continue to be compensated under existing applicable laws, rules, and regulations until revised or amended.
- Employees with transition allowances or employees whose actual salary exceeds the maximum of the salary grade allocation of their position under the authorized salary schedules must continue receiving the salary treatment specified under the compensation rules.
Saving clause and final rule on referrals
- Uncovered cases must be resolved by the Secretary of Budget and Management through appropriate action following referral.