Law Summary
Direction to the Department of Budget and Management
- The Department of Budget and Management (DBM) is tasked to implement the new interim Salary Schedule reflecting the P1,000 increase.
- All heads of national government agencies, government-owned or controlled corporations, and local government units must comply and are prohibited from granting compensation adjustments exceeding the authorized amount.
Coverage of Salary Increase
- The salary increase applies to all officials and employees of national government, GOCCs, government financial institutions, and local government units with basic salaries conforming to the new Salary Schedule.
- Officials and employees earning above the salary scale in the new schedule are excluded from the increase.
Continuation of Allowances
- Personnel Economic Relief Allowance (PERA) and additional compensation as prescribed in Administrative Order No. 53 remain as separate allowances and are not to be merged with basic pay.
Sources of Funding
- National government agencies: The required funds are charged to the 1995 General Appropriations Act and savings from agencies, with future allocations to be included annually.
- GOCCs: Funds shall be sourced from their corporate funds.
- Local government units: Funds shall come from their local funds.
- GOCCs and LGUs with insufficient funds may partially implement increases, but such partial implementation must be uniform and proportionate across all affected positions.
Applicability to Certain Constitutional Officials
- The salary increase for the President, Vice-President, and Members of the House of Representatives takes effect only after the expiration of the current incumbents’ terms.
- For Senators, the increase applies only after all incumbent Senators’ terms expire.
Implementing Guidelines and Effectivity
- DBM shall issue guidelines for the order’s implementation.
- The salary adjustments under this Executive Order take effect on January 1, 1995.