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.