UPDATING THE SALARY SCHEDULE FOR CIVILIAN GOVERNMENT PERSONNEL AND AUTHORIZING THE GRANT OF AN ADDITIONAL ALLOWANCE, AND FOR OTHER PURPOSES
WHEREAS, Item 1 of Congress Joint Resolution (JR) No. 4 (s. 2009) and Section 2 of Republic Act (RA) No. 11466 or the "Salary Standardization Law of 2019," affirm the policy of the State to provide government personnel with just and equitable compensation in accordance with the principle of equal pay for work of equal value under the Compensation and Position Classification System (CPCS);
WHEREAS, JR No. 4 and RA No. 11466 recognize the need to ensure that the compensation of all civilian personnel shall generally be competitive with those in the private sector doing comparable work, in order to attract, retain and motivate a corps of competent and dedicated civil servants;
WHEREAS, Section 13 of Presidential Decree (PD) No. 985 or "The Budgetary Reform Decree on Compensation and Position Classification of 1976," as amended, states that the Salary Schedule and the Wage Schedule shall be revised periodically. subject to the approval of the President, in relation to: (a) the level of salaries and wages and employee benefits currently prevailing in private industry for comparable work; (b) changes in the basic work week; or (c) changes in the Minimum Wage Law;
WHEREAS, Item 17 (iv) of JR No. 4 provides that the Department of Budget and Management (DBM) shall recommend for the consideration and approval of the President, the updating of the CPCS for civilian personnel and Base Pay Schedule for military and uniformed personnel, as well as the policies on and levels of allowances, benefits and incentives applicable to all government personnel, including those for exempt entities;
WHEREAS, Section 17 of RA No. 11466 states that all provisions of PD No. 985, as amended by PD No. 1597, RA No. 6758 or the "Compensation and Position Classification Act of 1989," as amended, JR No. 1 (s. 1994), JR No. 4, and Executive Order (EO) No. 201 (s. 2016), which are not inconsistent with, expressly modified, revoked or repealed in the said Act shall continue to be in full force and effect;
WHEREAS, Fiscal Year (FY) 2023 marked the fourth and final tranche of the implementation of the Modified Salary Schedule for Civilian Government Personnel under RA No. 11466;
WHEREAS, given the prevailing economic circumstances, including the erosion of purchasing power due to inflation, there is a need to update the salaries, and benefits of government personnel in order to maintain a competent, committed, agile and healthy workforce, thereby promoting social justice, integrity, efficiency, accountability, and excellence, and ultimately translating to increased productivity and higher-quality public services; and
WHEREAS, Section 17, Article VII of the Constitution mandates the President to ensure the faithful execution of laws;
NOW, THEREFORE, I, FERDINAND R. MARCOS, JR., President of the Philippines, by virtue of the powers vested in me by the Constitution and existing laws, do hereby order:
Section 1. Compensation Adjustment Strategy. To ensure an effective, competitive, and sustainable CPCS, the existing Salary Schedule for Civilian Government Personnel is hereby updated to conform with the following:
a. The compensation of all civilian personnel shall generally be competitive with the private sector in order to attract, retain, and engage high-performing civil servants;
b. The pay distinctions shall be based upon substantive differences in duties, responsibilities, accountabilities, and qualification requirements of the positions;
c. The value of government employee compensation is maintained over time; and
d. The compensation scheme must be within the financial capacity of the government, with the Personnel Services (PS) cost maintained at a reasonable level in relation to the overall government expenditure.
Section 2. Coverage. The updated Salary Schedule authorized herein shall apply to all civilian government personnel in the Executive, Legislative, and Judicial Branches; Constitutional Commissions and other Constitutional Offices; Government- Owned or -Controlled Corporations (GOCCS) not covered by RA No. 10149 or the "GOCC Governance Act of 2011," and EO No. 150 (s. 2021); and local government units (LGUs), regardless of appointment status, whether regular, contractual or casual, appointive or elective, and on full-time or part-time basis.
The salary increase authorized herein shall not apply to individuals whose services are engaged through job orders, contracts of service, consultancy or service contracts with no employer-employee relationship, as well as GOCCs covered by a separate CPCS established by the Governance Commission for GOCCS (GCG) and approved by the President.
Source: Official Gazette
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