Title
1995 Gov't Salary Schedule 2nd Year Increase
Law
Executive Order No. 218
Decision Date
Jan 1, 1995
Fidel V. Ramos implements a second year of the new Salary Schedule for government personnel, mandating a monthly salary increase of P1,000 effective January 1, 1995, with specific funding sources and coverage guidelines.

Law Summary

Appropriation for Salary Adjustment in 1995

  • P15.1 billion was appropriated in the 1995 General Appropriations Act.
  • This funding covers salary adjustments, with a guaranteed increase of not less than P1,000 per month for government personnel for the second year of implementation.

Directive for Second Year Salary Increase

  • Department of Budget and Management (DBM) to implement a second interim salary schedule effective January 1, 1995.
  • The salary schedule reflects an increase of P1,000 over December 31, 1994 basic salaries.
  • Heads of all national agencies, including government-owned and controlled corporations (GOCCs) and local government units (LGUs), are prohibited from granting salary adjustments exceeding the authorized amount.

Coverage of the Salary Adjustment

  • Applies to all officials and employees of the national government, GOCCs including government financial institutions, and LGUs whose salaries conform to the new schedule under EO No. 164.
  • Officials and employees earning salaries higher than those prescribed in the new schedule are not eligible for the increase.

Continuation of Allowances

  • Personnel Economic Relief Allowance and additional compensation under Administrative Order No. 53 continue as allowances.
  • These allowances are not integrated into the basic salary.

Funding Sources for Salary Increase

  • National government entities to finance salary increases from appropriations in the 1995 General Appropriations Act and from savings within departments/agencies.
  • GOCCs to fund increases from their corporate funds.
  • LGUs to charge salary adjustments against their local funds.
  • GOCCs and LGUs lacking sufficient funds may only partially implement the salary increase.
  • Partial implementation must be uniform and proportionate across all positions within each entity.

Applicability to Certain Constitutional Officials

  • Salary adjustments for the President, Vice-President, and Members of the House of Representatives take effect only after the expiration of the incumbents' terms.
  • For Senators, adjustments take effect only after all incumbent Senators’ terms expire.

Implementation and Effectivity

  • DBM tasked to prepare and issue guidelines for the Order’s implementation.
  • The Executive Order takes effect on January 1, 1995.

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