Policy and governing principles
- The State adopts a policy to provide just and equitable compensation in accordance with the principle of equal pay for work of equal value (Section 2).
- Differences in pay must be based on substantive differences in the duties, responsibilities, accountabilities, and qualification requirements of positions (Section 2(a)).
- Compensation for civilian government personnel must be standardized and rationalized across all government agencies to promote social justice, integrity, efficiency, productivity, accountability and excellence (Section 2(b)).
- The compensation scheme must generally be competitive with the private sector for comparable work to attract, retain and motivate competent and dedicated civil servants (Section 2(c)).
- A performance-based incentive scheme that integrates personnel and organizational performance must be established to reward exemplary civil servants and well-performing organizations (Section 2(d)).
- The compensation scheme must consider the financial capability of the government and give due regard to the efficient allocation of funds for personnel services, maintained at a realistic level proportionate to the overall expenditure of government (Section 2(e)).
Coverage and exclusions
- Republic Act No. 11466 applies to all civilian government personnel in the Executive, Legislative and Judicial Branches, Constitutional Commissions and other Constitutional Offices, GOCCs not covered by Republic Act No. 10149, and local government units (LGUs) (Section 3).
- Coverage includes personnel whether regular, contractual or casual, appointive or elective, and on full-time or part-time basis (Section 3).
- Military and uniformed personnel are excluded from coverage (Section 4(a)).
- GOCCs under Republic Act No. 10149 are excluded from coverage because they are covered by the Compensation and Position Classification System (CPCS) established by the Governance Commission for GOCCs (GCG) and approved by the President of the Philippines (Section 4(b)).
- Individuals whose services are engaged through job orders, contracts of service consultancy or service contracts with no employer-employee relationship are excluded (Section 4(c)).
Position classification and compensation framework
- The law requires maintenance of the re-categorized groups of classes of positions: Sub-professional Category, Professional Category, and Executive Category under Item (3) of Joint Resolution No. 4, series of 2009 (Section 5).
- The Index of Occupational Services, Occupational Groups, Classes and Salary Grades (IOS) must be continually reviewed and updated by the Department of Budget and Management (DBM) considering substantial changes in duties and responsibilities, work methods, skills, competencies, and other relevant factors (Section 5).
- The Total Compensation Framework under Item (4) of Joint Resolution No. 4, series of 2009 continues to be adopted (Section 6).
- The Total Compensation Framework components are:
- Basic Salaries including Step Increments (Section 6(a))
- Standard Allowances and Benefits (Section 6(b))
- Specific-Purpose Allowances and Benefits (Section 6(c))
- Incentives (Section 6(d))
Salary schedule and working-rate rules
The modified salary schedule for civilian personnel is implemented in four (4) tranches (Section 7).
The salary schedule entries in Section 7 represent monthly remuneration for regular or contractual personnel, whether appointive or elective, and on full time employment (Section 7).
Part-time remuneration must be proportionate to the actual services rendered (Section 7).
Casual personnel must be paid a daily wage rate computed by dividing the corresponding monthly salary rate in Section 7 by twenty-two (22) working days (Section 7).
First Tranche (Section 7) provides step values for Salary Grades 1–33 (monthly amounts per step 1–8) and includes Salary Grade 33 through the step structure shown.
Second Tranche (Section 7) provides step values for Salary Grades 1–33 (monthly amounts per step 1–8) and includes Salary Grade 33 through the step structure shown.
Third Tranche (Section 7) provides step values for Salary Grades 1–33 (monthly amounts per step 1–8) and includes Salary Grade 33 through the step structure shown.
Fourth Tranche (Section 7) provides step values for Salary Grades 1–33 (monthly amounts per step 1–8) and includes Salary Grade 33 through the step structure shown.
Mid-Year bonus and incentives framework
- The law grants a Mid-Year bonus equivalent to one (1) month basic salary as of May 15 of a given year (Section 8).
- The Mid-Year bonus is granted to personnel who have rendered at least four (4) months of satisfactory service and are still in the service as of May 15 (Section 8).
- The Mid-Year bonus must be given not earlier than May 15 every year (Section 8).
- The existing Year-End Bonus equivalent to one (1) month basic salary and a Cash Gift of Five thousand pesos (P5,000.00) are categorized under Standard Allowances and Benefits and must be given in November every year (Section 8).
- The law categorizes PRAISE (Program on Awards and Incentives for Service Excellence), instituted by the Civil Service Commission (CSC) under Executive Order No. 292 (Administrative Code of 1987), under the Incentive component of the Total Compensation Framework (Section 9).
- Monetary and/or non-monetary reward guidelines for PRAISE recognition must be issued by the CSC in consultation with the DBM (Section 9).
Local government compensation adjustments
- The law allows modified salary schedule and additional incentives for LGU personnel subject to:
- compliance with the Personnel Services (PS) limitation in the LGU budget under Section 325 and 331 of Republic Act No. 7160, and
- authorization by the Sanggunian under Sections 447(a), 458(a) and 468(a) of Republic Act No. 7160 (Section 10).
- LGUs must ensure that authorized LGU personnel salaries correspond to the LGU income classification and do not exceed the percentage of the Salary Schedule in Section 7, as follows (Section 10(a)):
- Provinces/Cities: 100% for 1st Class; 95% for 2nd Class; 90% for 3rd Class; 85% for 4th Class; 80% for 5th Class; 75% for 6th Class.
- Municipalities (Special Cities indicated separately): 90% for 1st Class; 85% for 2nd Class; 80% for 3rd Class; 75% for 4th Class; 70% for 5th Class; 65% for 6th Class.
- Special Cities: 100% for 1st Class; 85% for 2nd Class; 80% for 3rd Class; 75% for 4th Class; 70% for 5th Class; 65% for 6th Class.
- Barangay personnel basic pay must be in the form of honoraria consistent with Republic Act No. 7160 and must not exceed the percentage of the Salary Schedule corresponding to the LGU income classification (Section 10(b)).
- Barangay personnel may receive Year-End Bonus based on monthly honoraria as of October 31 of the year and a Cash Gift of Five thousand pesos (P5,000.00) (Section 10(b)).
- The minimum Year-End Bonus must be One thousand pesos (P1,000.00) for the Punong Barangay and Six hundred pesos (P600.00) for other mandatory barangay officials, and these minimums are not subject to the PS limitation (Section 10(b)).
- If compensation rates are partially implemented, the uniform percentage across all positions must be applied for every LGU (Section 10(c)).
Implementation schedule and timing
- For national government agencies (NGAs), the salary schedule must be implemented in four (4) tranches beginning:
- January 1, 2020 (first tranche),
- January 1, 2021 (second tranche),
- January 1, 2022 (third tranche), and
- January 1, 2023 (fourth tranche) (Section 11).
- For GOCCs and LGUs, the implementation period must be not less than four (4) years, depending on financial capabilities (Section 11).
- For GOCCs and LGUs, the initial implementation must not be earlier than January 1, 2020 (Section 11).
Exempt entities and special applicability
- Exempt entities include:
- government agencies not covered by the CPCS authorized under Republic Act No. 6758, as amended,
- GOCCs governed by the CPCS established by GCG under Republic Act No. 10149, and
- entities authorized by law that have actually adopted their own compensation and position classification system (Section 12).
- Exempt entities must be governed by their own compensation and position classification systems effective upon recommendation of the DBM or GCG (as the case may be) and approval by the President of the Philippines (Section 12).
- The salaries authorized for the President, Vice-President, and Members of Congress take effect only after expiration of the respective terms of the present incumbents pursuant to Section 6 of Article VII and Section 10 of Article VI of the Constitution (Section 13).
Funding, guidelines, and administrative implementation
- For NGAs, the FY 2020 salary adjustment amount must be charged against any available appropriations in the FY 2020 General Appropriations Act and any other available and valid appropriations; afterward, needed amounts must be included in the annual General Appropriations Act (Section 14(a)).
- For GOCCs, amounts must come from their respective corporate funds in corporate operating budgets approved by the DBM; GOCCs without sufficient funds must only partially implement the authorized compensation rates, and any partial implementation must be at a uniform proportion for all positions within each GOCC (Section 14(b)).
- For LGUs, amounts must be charged against local government funds in accordance with this Act and Republic Act No. 7160 (Section 14(c)).
- The DBM must issue the guidelines necessary to implement specific provisions of the Act (Section 15).
Separability, continuing laws, and repeal
- If any section or provision is declared unconstitutional or invalid, the other sections not affected must continue in full force and effect (Section 16).
- Presidential Decree No. 985, as amended by Presidential Decree No. 1597; Republic Act No. 6758; Joint Resolution No. 1, series of 1994; Joint Resolution No. 4, series of 2009; and Executive Order No. 201, series of 2016 remain in full force and effect to the extent they are not inconsistent with, expressly modified, revoked or repealed by this Act (Section 17).
- All laws, decrees, orders, rules or regulations, or parts thereof, inconsistent with the Act are repealed, amended, or modified accordingly (Section 18).