1995 Gov't Salary Schedule 2nd Year Increase

The President acts under constitutional and statutory powers referenced in the Order, including Republic Act No. 6758, P.D. No. 985, and P.D. No. 1597.
The new Salary Schedule referenced in the Order is contained in Joint Senate-House of Representatives Resolution No. 1, series of 1994.
The Order ties the initial implementation to Executive Order No. 164 and National Compensation Circular No. 72.
The Order continues Personnel Economic Relief Allowance and additional compensation under Administrative Order No. 53.
It prescribes coverage for officials affected by constitutional rules under Section 6 of Article VII and Section 10 of Article VI.

The Order directs implementation of a second interim Salary Schedule for the government.
The Order requires government entities to adjust basic pay in line with a second year increase.
The Order limits compensation adjustments so that heads of agencies do not exceed the authorized increase.
The Order sets rules for how the salary increase is funded across national government entities, GOCCs, and LGUs.
The Order requires the Department of Budget and Management to issue implementing guidelines.

The Department of Budget and Management must implement a second interim Salary Schedule effective January 1, 1995.
The interim schedule reflects an increase of one thousand pesos (P1,000.00) over the basic monthly salaries of government personnel as of December 31, 1994.
Heads of all national government departments and agencies, including GOCCs and local government units, must not grant any compensation adjustment in excess of the amount authorized in the Order.
The implemented increase is an adjustment to basic monthly salaries for the second year implementation.

The Order covers all officials and employees of the national government whose basic salaries conform to the new Salary Schedule under Executive Order No. 164.
The Order covers officials and employees of government-owned and controlled corporations, including government financial institutions, whose basic salaries conform to the new Salary Schedule under Executive Order No. 164.
The Order covers officials and employees of local government units whose basic salaries conform to the new Salary Schedule under Executive Order No. 164.
Officials and employees whose basic pay is higher than those prescribed under the new Salary Schedule under Executive Order No. 164 are not entitled to the salary increase authorized in this Order.

The Order provides that Personnel Economic Relief Allowance and the additional compensation authorized under Administrative Order No. 53 shall continue to be paid.
These continued items are paid as allowances and are not integrated into basic pay.

For national government entities, implementation is charged against appropriations set aside for the purpose in the 1995 General Appropriations Act and from savings generated from different departments, bureaus, offices, and agencies.
For national government entities, amounts needed thereafter must be included in the annual General Appropriations Act.
For GOCCs, the amounts must come from their respective corporate funds.
For LGUs, the amounts must be charged against their respective local funds.
GOCCs and LGUs without adequate or sufficient funds must only partially implement the prescribed salary increase.
Any partial implementation by a GOCC or LGU must be uniform and proportionate for all positions in that corporate entity or local government unit.

The compensation adjustment for the President, Vice-President, and Members of the House of Representatives takes effect only after the expiration of the respective term of the present incumbents.
The compensation adjustment for Senators takes effect only after the expiration of the term of all incumbent Senators.
This delayed effect is tied to the constitutional provisions referenced under Section 6 of Article VII and Section 10 of Article VI.

The Department of Budget and Management must prepare and issue the necessary implementing guidelines for this Executive Order.