Law Summary
Statement of Policy
- Policy declares just and equitable compensation for all government personnel
- Pay differences based on substantive differences in duties/responsibilities
- Standardize compensation across government agencies to promote social justice, integrity, efficiency, productivity, accountability, and excellence
- Compensation to be competitive with private sector
- Establish performance-based incentive scheme rewarding exemplary civil servants and organizations
- Compensation to consider government financial capability and efficient allocation of funds
Coverage
- Applies to all civilian government personnel in Executive, Legislative, Judicial branches, Constitutional Commissions, other Constitutional Offices, GOCCs not under RA 10149, and LGUs
- Covers regular, contractual, casual; appointive or elective; full-time or part-time personnel
Exclusions
- Military and uniformed personnel
- GOCCs covered by RA 10149 and CPCS by GCG
- Individuals engaged through job orders, contracts of service/consultancy with no employer-employee relationship
Position Classification System
- Maintains three position categories: Sub-professional, Professional, Executive
- Department of Budget and Management (DBM) to review and update Index of Occupational Services and Salary Grades considering changes in duties, skills, and competencies
Compensation System
- Continues Total Compensation Framework:
- Basic Salaries including Step Increments
- Standard Allowances and Benefits
- Specific Purpose Allowances and Benefits
- Incentives
Salary Schedule and Step Increments
- Salary Schedule modified and implemented in four tranches starting January 1, 2020
- Monthly remuneration rates set for Salary Grades 1 to 33 with eight steps each
- Applies to regular and contractual personnel; part-time employees get proportionate remuneration; casual personnel paid daily rates based on 22 working days
Mid-Year Bonus
- One-month basic salary as of May 15 for personnel with at least four months satisfactory service
- Year-End Bonus of one-month basic salary and Cash Gift of Php 5,000 given in November annually
Program on Awards and Incentives for Service Excellence (PRAISE)
- Instituted by Civil Service Commission (CSC) via Executive Order No. 292
- Categorized under Incentives component of Total Compensation Framework
- CSC issues guidelines for monetary/non-monetary awards in consultation with DBM
Compensation Adjustment for Local Government Units (LGUs)
- LGU personnel may be granted salary schedule and incentives subject to:
- Personnel services budget limitations per Sections 325 and 331 of RA No. 7160
- Authorization from respective Sanggunian per Sections 447(a), 458(a), and 468(a) of RA No. 7160
- Salaries correspond to LGU income classification and percentages of national salary schedule
- Barangay personnel paid honoraria capped similarly; Year-End bonus and cash gift allowed
- Partial implementation must maintain uniform percentage across positions in LGU
Implementation Schedule
- For National Government Agencies (NGAs): Four tranches over four years starting January 1, 2020
- For GOCCs and LGUs: Minimum four years implementation depending on financial capability; not earlier than January 1, 2020
Exempt Entities
- Agencies not covered by CPCS under RA 6758
- GOCCs governed by CPCS under RA 10149 by GCG
- Entities authorized by law with adopted compensation and classification systems
- Subject to DBM or GCG recommendation and President's approval
Applicability to Certain Officials
- Salary adjustments for President, Vice-President, and Members of Congress effective only after current incumbents' terms expire
Funding Sources
- NGAs use FY 2020 General Appropriations Act and other valid appropriations, and thereafter annual appropriations
- GOCCs utilize corporate funds in approved operating budgets; partial implementation allowed uniformly
- LGUs charge local government funds as per applicable laws
Implementing Guidelines
- Issued by DBM to implement specific provisions of the Act
Separability Clause
- Invalidity of any provision does not affect other provisions which remain in force
Applicability of Related Laws
- Provisions of P.D. No. 985 as amended, RA 6758, Joint Resolutions No. 1 (1994), No. 4 (2009), and Executive Order No. 201 (2016) remain effective unless inconsistent or expressly modified
Repealing Clause
- All laws, decrees, regulations inconsistent with this Act are repealed, amended, or modified accordingly
Effectivity
- This Act takes effect January 1, 2020