Republic of the Philippines
Congress of the Philippines
Metro Manila

Fourteenth Congress

Second Regular Session

Begun and held in Metro Manila, on Monday, the twenty-eighth day of July, two thousand eight.

JOINT RESOLUTION NO. 4

JOINT RESOLUTION AUTHORIZING THE PRESIDENT OF THE PHILIPPINES TO MODIFY THE COMPENSATION AND POSITION CLASSIFICATION SYSTEM OF CIVILIAN PERSONNEL AND THE BASE PAY SCHEDULE OF MILITARY AND UNIFORMED PERSONNEL IN THE GOVERNMENT, AND FOR OTHER PURPOSES

WHEREAS, Section 5, Article IX-B of the Philippine Constitution states that Congress shall provide for the standardization of compensation of government officials and employees, including those in government-owned or -controlled corporations with original charters, taking into account the nature of the responsibilities pertaining to and the qualifications required for their positions;

WHEREAS, Republic Act No. 6758 prescribes a revised Compensation and Position Classification System for civilian personnel in accordance with the above-cited constitutional provision and anchored on the. basic principle of equal pay for substantially equal work;

WHEREAS, Joint Resolution No. 01 of the Senate and the House of Representatives approved by the President of the Philippines on March 7,1994, urged the latter to revise the then existing Compensation and Position Classification System for civilian personnel and base pay of military and uniformed personnel to make it more responsive to the economic needs of government personnel, to provide adequate incentives to public servants and to improve the quality of public services;

WHEREAS, the present Compensation and Position Classification System has to be revised further to update the same, to further encourage excellent performance and productivity, and to clearly distinguish differences in levels of responsibility and accountability among government officials and employees;

WHEREAS, the current structure of the Salary Schedule causes the overlapping of salaries between salary grades, thereby resulting to salary inequities between positions;

WHEREAS, the grant of benefits to selected professions under special laws undermines the compensation standardization and equal protection of the law clauses in the Constitution, distorts the standardized compensation scheme and breeds demoralization among other government personnel;

WHEREAS, the military personnel of the Department of National Defense and uniformed personnel of the Department of the Interior and Local Government, the Philippine Coast Guard, and the National Mapping and Resource Information Authority are similarly in need of a modified base pay that provides adequate remuneration and benefits in view of the vital role they play in internal security;

WHEREAS, in order to make the present Compensation and Position Classification System and Base Pay Schedule more effective in motivating government personnel and in invigorating public service, reforms in the present System and Pay Schedule need to be instituted: Now, therefore, be it:

Resolved.by the Senate and the House of Representatives in Congress assembled, To authorize the President of the Philippines to modify the existing Compensation and Position. Classification System of civilian personnel and Base Pay Schedule of military and uniformed personnel and to initially implement the same effective July 1, 2009 and in the case of local government units (LGUs) to take effect January 1, 2010.

Resolved, further, To express the strong sentiment of the Senate and the House of Representatives, that said modification must be in line with the governing principles, coverage and particulars of the Compensation and Position Classification System. and Base Pay Schedule prescribed hereunder.

Resolved, finally, That the amendments of existing laws and issuances contrary to the provisions of this Joint Resolution shall be effective upon approval of this Joint Resolution.

(1) Governing Principles – The following principles shall govern the modified Compensation and Position Classification System and Base Pay Schedule of the government:

(a) All government personnel shall be paid just and equitable compensation in accordance with the principle of equal pay for work of equal value. Differences in pay shall be based on verifiable compensation and position classification-factors in due regard to the financial capability of the government;

(b) The compensation for all civilian government personnel shall generally be comparable with those in the private sector doing comparable work in order to attract, retain and motivate a corps of competent civil servants;

(c) The compensation for all civilian government personnel shall likewise be standardized and rationalized across all government agencies to create an enabling environment that will promote social justice, integrity, efficiency, productivity, accountability and excellence in the civil service;

(d) A performance-based incentive scheme which integrates personnel and organizational performance shall be established to reward exemplary civil servants and well-performing institutions;

(e) A periodic review of the government’s Compensation and Position Classification System shall be conducted every three (3) years, taking into account the changes in skills and competency requirement in the bureaucracy, the relative demand for certain expertise, the possible erosion in the purchasing power due to inflation, and other factors. The Base Pay Schedule of military and uniformed personnel shall likewise be subject to the said periodic review to ensure that they are adequately compensated;

(f) The Base Pay Schedule of military and uniformed personnel of the government shall likewise take into account prevailing economic realities and create professionalism, exemplary performance, and commitment to service; and

(g) The compensation for government personnel shall be kept fair and reasonable in recognition of fiscal realities and an efficient allocation of personal services cost which shall be maintained at a realistic level in proportion to the overall expenditure of the government.

(2) Coverage—The Compensation and Position Classification System herein provided shall apply to all positions for civilian government personnel in the Executive, Legislative and Judicial Branches, the Constitutional Commissions, State Universities and Colleges (SUCs), Government-Owned or -Controlled Corporations (GOCCs), Government Financial Institutions (GFIs) and LGUs, whether regular, casual or contractual in nature, appointive or elective, on full-time or part-time basis, now existing or hereafter created. The military and uniformed personnel shall be covered by a separate compensation system as provided in item (8) hereof.

Individuals and groups of personnel whose services are engaged through job orders or contracts of services shall be excluded from the coverage of the System.

(3) Position Classification System – (a) Re-categorized Groups of Classes of Positions – The classes of positions shall be re-categorized as follows: (i) Subprofe9sional Category; (ii) Professional Category; and (iii) Executive Category.

(i) Subprofessional Category – This category include positions involved in structured work in support of office operation or those engaged in arts, crafts, trades, manual or clerical work

Also included in this category are positions engaged in supervising groups of employees performing such work.

These positions require completion of up to elementary education, secondary or vocational education or completion of a least two (2) years of college education, and skills acquired through training and moderate to considerable experience and knowledge of a limited subject matter or skills in arts, crafts, trades, manual and clerical work.

(ii) Professional Category – This category includes positions performing work requiring the exercise of profession on application of knowledge acquired through formal training in a particular field or the exercise of a natural, creative and artistic ability or talent in arts and letters. Also included in this category are positions involved in research and application of professional knowledge and methods to a variety of technological., economic, social, industrial and governmental functions.

Further included in this category axe positions engaged in supervising groups of employees performing professional work

These positions require thorough knowledge in the field of arts and sciences or learning acquired through completion of at least four (4) years of college studies or thorough knowledge of specialized fields acquired through completion of bachelor’s, master’s or doctorate degrees.

(iii) Executive Category – This category includes managerial positions involved in the execution of laws, rules and regulations, both in the national and local governments, in the legislation of laws and ordinances, and in the administration of justice. Appointive executive positions require thorough knowledge acquired through completion of at least a bachelor’s degree. Elective executive positions only require knowledge acquired through the minimum education prescribed by the Constitution and existing laws.

(b) Index of Occupational Services, Occupational Groups, Classes arid Salary Grades – The existing levels of classes of positions shall be reviewed to convert them to the more appropriate number of levels that recognizes reasonable gradations in the levels of difficulty, substantial changes and complexity of the duties and responsibilities of positions, work methods, skills, competencies and other relevant factors and to convert them into generic, brief but descriptive and gender-neutral class/position titles.

For this purpose, the Index of Occupational Services, Occupational Groups, Classes and Salary Grades, which is a component of the position classification system, shall be updated by the Department of Budget and Management (DBM) in coordination with the Civil Service Commission (CSC).

(4) Compensation System—(a) Total Compensation Framework – The existing basic salaries, allowances, benefits and incentives granted to government officials and employees shall be rationalized and standardized in accordance with the herein established Total Compensation Framework. Under this Framework, the total payment given to an employee for services rendered shall hereinafter be limited to the following:

(i) Basic Salaries, including Step Increments;

(ii) Standard Allowances and Benefits;

(iii) Specific-Purpose Allowances and Benefits; and

(iv) Incentives.

Provided, That the Total Compensation Framework shall exclude all indirect compensation under existing laws such as, but not limited to: life and retirement insurance benefits; employee compensation insurance; health insurance; Pag-IBIG Fund benefits; and Provident Fund benefits.

(b) The modified Salary Schedule for Civilian Personnel, to be implemented in tranches, shall, be as follows:

Salary
Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Stop 7 Step 8
1 9.000 9.090 9,181 9.273 9,365 9.469 9.554 9.649
2 9,675 9,772 9,869 9,968 10,068 10,169 10,270 10,873
3 10,401 10,505 10,610 10,716 10,823 10,931 11,040 11,151
4 11,181 11,292 11,405 11,519 11,635 11,751 11,869 11,987
5 12.019 12,189 12,261 12.383 12,507 12,632 12,759 12,886
6 12,921 13,050 13,180 13.312 13,445 18,580 13,716 13,853
7 13,890 14.029 14,169 14,311 14,454 14,598 14,744 14,892
8 14,931 16,081 15.232 15,384 15,538 15,693 15,850 16,009
9 16,051 16,212 16,374 16,538 16,703 16.870 17,039 17,209
10 17,255 17,428 17,602 17,778 17,956 18,185 18,317 18,500
11 18,549 18,735 18,922 19,111 19,302 19,495 19.690 19,887
12 19,940 20,140 20,341 20,545 20,750 20,958 21,167 21,379
13 21,436 21.650 21,867 22,086 22,306 22,529 22,755 22,982
14 23,044 23,274 23,507 23,742 23,979 24,219 24,461 24,706
15 24,887 25,161 25,438 25,718 26,000 26,286 26,576 26,868
16 26,878 27,174 27,473 27,775 28,080 28,389 28,702 29,017
17 29,028 29,349 29,671 29,997 30,327 30,661 30,998 31,339
18 31,351 31,696 32,044 32,397 32,753 33,113 33,478 33,846
19 33,859 34,231 34,608 34,988 35,373 35,762 36.156 36.554
20 36,567 36,970 37,376 37,788 38,203 38,,623 39,048 39,478
21 39,493 39,927 40,367 40,811 41,259 41,713 42,172 42,636
22 42,652 43,121 43,596 44,075 44,560 45,050 45,546 46,047
23 46,064 46,571 47,083 47.601 48,125 48,654 49,190 49,731
24 49,750 50,297 50,850 51,410 51,975 52,547 53,125 53,709
25 53,730 54,321 54,918 55,522 56,133 66,750 57,375 58,006
26 58,028 58,666 59,312 59,964 60,624 61,291 61,966 62,646
27 62,670 63,360 64,057 64,761 65,474 66,194 66,922 67,668
28 67,684 68,428 69,181 69,942 70,711 71,489 72,276 73,071
29 73,099 73,903 74,716 75,537 76,368 77,208 78,058 78,916
30 78,946 79,815 80,693 81,580 82,478 83,385 84,302 85,230
31 90,000 90,990 91,991 93,003 94,026 95,060 96,106 97,163
32 103,000 104,133 105,278 106,437 107,607 108,791 109,988 111,198
33 120,000

(c). Salary Grade AssigNments of PositioNs—The salary grades for positions for constitutional officials and their equivalent shall be as provided under Section 8 of Republic Act No. 6758.

The benchmark position schedule in item (4) of Senate and House of Representatives Joint Resolution No. 01, s. 1994, is abolished.

The existing position classification factors and other relevant factors shall guide the DBM in the review of salary grade assignments for classes of positions below those for constitutional officials and their equivalent for possible modifications in view of organizational, technological, professional and other developments, and in determining the salary grade assignments of new classes of positions: Provided, That teachers with specialization in Science and Mathematics shall be given three (3) steps higher of his/her assigned grade.

(d) Step Increments – An employee may progress from Step 1 to Step 8 of the salary grade allocation of his/her position in recognition of meritorious performance based on a Performance Management System approved by the CSC and/or through length of service, in accordance with the rules and regulations to be promulgated jointly by the DBM and the CSC.

Employees authorized to receive Longevity Pay under existing laws shall no longer be entitled to Step Increments Due to Length of Service. The grant of Step Increment based on Merit and Performance shall be in lieu of the Productivity Incentive Benefit.

(e) Rationalization of Allowances, Benefits and Incentives—The coverage, conditions for the grant, including the rates of allowances, benefits and incentives to all government employees, shall be rationalized in accordance with the policies to be issued by the President upon recommendation of the DBM.

Far this purpose, all existing and authorized allowances, benefits and incentives shall be categorized as Standard Allowances and Benefits, Specific-Purpose Allowances and Benefits or Incentives in accordance with items (4)(f), (g) and (h) hereof: Provided, That henceforth all allowances, benefits and incentives to be granted to any and all government employees shall be limited to the foregoing categories: Provided, further, That said allowances, benefits and incentives shall be granted only upon compliance with all of the qualifications and conditions laid down by the President.

Provident fund benefit and other benefits, which are excluded in the Total Compensation Framework as may be determined by the DBM, shall be rationalized in accordance with the policies to be issued by the President upon recommendation of the DBM.

(f) Standard Allowances and Benefits—These are allowances and benefits given to all employees across agencies at prescribed rates, guidelines, rules and regulations, which shall be limited to the following:

(i) Personnel Economic Relief Allowance – This shall be given at Two thousand pesos (P2,000.00) per month, the combined total of the current Five hundred pesos (P5O0.00) Personnel Economic Relief Allowance and the One thousand five hundred pesos (P1,500.00) Additional Compensation, to supplement pay due to the rising cost of living;

(ii) Uniform/Clothing Allowance – This is to provide for the required uniform/clothing to employees, at prescribed rates; and

(iii) Year-End Bonus and Cash Gift – This is equivalent to one (1) month basic salary and Cash Gift provided under Republic Act No. 6686, as amended by Republic Act No. 8441. Henceforth, the year-end bonus and other cash gifts shall be funded from the annual general appropriations.

(g) Specific-Purpose Allowances and Benefits – These are allowances and benefits given to employees across agencies under specific conditions and situations related to the actual performance of work; at prescribed rates, guidelines, rides and regulations. These are limited to the following:

(i) Representation and Transportation Allowances – These are given to officials down to division chiefs at monthly standard rates in order to defray transportation and representation expenses while in the actual performance of the duties of the positions. Transportation allowance shall not be given to those assigned government transportation;

(ii) Per Diem – This is a compensation for attendance in meetings in view of membership in collegial bodies created by law;

(iii) Honoraria – These are token payments in recognition of services rendered beyond the regular duties and responsibilities of positions;

(iv) Night-Shift Differential – This premium is given to an employee whose regular working hours fall wholly or partially within six o’clock in the evening to six o’clock in the morning of the following day;

(v) Overtime Pay—This is cash payment for work performed by an employee beyond the regular working hours in a day, and those performed on rest days, holidays and nonworking days;

(vi) Subsistence Allowance – This is an allowance for meal or sustenance given only to government personnel who, by the nature of the duties and responsibilities of their positions, have to make their services available at all times in their places of work even during mealtimes. This shall be given at the prescribed standard rate;

(vii) Hazard Pay – This is a premium given only to government personnel exposed to hazardous situations such as, but not limited to, assignment in strife-torn or embattled areas, distressed or isolated stations, prison camps, mental hospitals, leprosaria, radiation-exposed clinics/laboratories/workshops, disease-infested areas and areas declared under state of calamity or emergency which pose occupational risks or perils to life;

(viii) Special Counsel Allowance – This is an allowance for lawyer personnel in the legal staff of departments, bureaus or offices of the national government deputized by the Office of the Solicitor General to appear in court as special counsel in collaboration with the Solicitor General or Prosecutors concerned;

(ix) Overseas and Other Allowances for Government Personnel Stationed Abroad – These are allowances given to government officials and employees assigned abroad at such rates authorized under Republic Act No. 7157, as amended, and its implementing rules and regulations; and

(x) Other allowances and benefits granted under specific conditions and situations, related to the actual performance of work as may be determined by the DBM: Provided, That Section 8 of Republic Act No. 9417 shall remain effective and enjoyed in the manner prescribed under said law.

(h) Incentives – This shall be limited to the following:

(i) Incentives to reward an employee’s loyalty to government service and contributions to the agency’s continuing viable existence, as follows:

(aa) Loyalty Incentive – This is an incentive to be given in milestone years to reward an employee’s loyalty to government service with at least satisfactory performance. This shall be in lieu of the Loyalty Award; and

(bb) Anniversary Bonus—This is a one-time incentive to be given to employees on the occasion of their agencies’ milestone anniversaries, to recognize the employees’ participative efforts in and contributions to the agencies’ continuing and/or viable existence;

(ii) Incentives as rewards for exceeding agency financial and operational performance targets, and to motivate employee efforts toward higher productivity, as follows:

(aa) Collective Negotiation Agreement (CNA) Incentive -This may be granted to both management and rank-and-file employees of agencies with approved and successfully implemented CNAs in recognition of their efforts in accomplishing performance targets at lesser cost, in attaining more efficient and viable operations through cost-cutting measures and systems improvement, such CNA incentive shall be provided for under the annual General Appropriations Act; and

(bb) Productivity Enhancement Incentive – This may be authorized by the President of the Philippines for the Executive Branch and LGUs, the Senate President and the Speaker of the House of Representatives for the Legislative Branch, the Chief Justice of the Supreme Court for the Judicial Branch, the Ombudsman for the Office of the Ombudsman and the Heads of Constitutional Commissions for Constitutional Offices vested with fiscal autonomy at the end of the year. Such productivity enhancement incentive shall be funded from the annual general appropriations; and

(iii) Other existing benefits to be categorized by the DBM as incentives.

(5) Special Allowances – The grant of Special Allowances to certain officials and employees as provided under Republic Act No. 9227, Republic Act No. 9279, Republic Act No. 9347, Republic Act No. 9406 and Republic Act No. 9417 which shall not exceed one hundred percent (100%) of the applicable salary schedule, as provided in their respective implementing rules and regulations, shall be considered as an advance implementation of any subsequent increases in the salary rates under Republic Act No. 6758, as amended.

Accordingly, the full amount of Special Allowances or portions thereof that have been received shall be converted as part of basic salaries as a result of the salary increases authorized pursuant to this Joint Resolution and such other subsequent issuances and/or laws authorizing salary adjustments: Provided, That any balances in the amount of Special Allowances not converted as part of basic salaries shall continue to be granted as such and funded from sources specified under applicable laws: Provided, further, That the maximum limit of the Special Allowances that may be granted thereafter shall be reduced by the amount of Special Allowances converted as part of basic salaries: Provided, finally, That such Special Allowances shall cease to be granted once the full amount of the authorized Special Allowances have been received by the employee concerned.

(6) Magna Carta Benefits – Within ninety (90) days from the effectivity of this Joint Resolution, the DBM is hereby authorized to issue the necessary guidelines, rules and regulations on the grant of Magna Carta benefits authorized for specific officials and employees in the government to determine those that may be categorized in the Total Compensation Framework.

Nothing in this Joint Resolution shall be interpreted be reduce, diminish or, in any way, alter the benefits provided for in existing laws on Magna Carta benefits for specific officials and employees in government, regardless of whether said benefits have been already received or have yet to be implemented.

The DBM, in coordination with the agencies concerned, shall determine the qualifications, conditions and rates in the grant of said benefits. Accordingly, the consultative councils, departments and officials previously authorized to issue the implementing rules and regulations of Magna Carta benefits shall no longer exercise said function relative to the grant of such benefits.

(7) Local Government Units – The salaries, wages, allowances and other emoluments and benefits of officials and employees of LGUs shall be determined by their respective sanggunians in accordance with the pertinent provisions of Republic Act No. 7160: Provided, That LGUs may, if their finances warrant, grant salary or wage adjustments to their personnel, subject to the personal services limitation in LGU budgets under Republic Act No. 7160: Provided, further, That the grant of allowances and other benefits shall be subject to the said personal services limitation.

In case of partial implementation of salary or wage adjustments, the same shall be at uniform proportion of the established rates for all positions in each LGU.

(a) The salary or wage adjustments, if warranted by the finances of the LGUs, shall be determined on the basis of the income class and financial capability of each LGU but shall not exceed the following percentages of the rates in the Salary Schedule under item (4)(b) of this Joint Resolution:

For Provinces/Cities For Municipalities
Special Cities 100%
1st Class 100% 90%
2nd Class 95% 85%
3rd Class 90% 80%
4th Class 85% 75%
5th Class 80% 70%
6th Class 75% 65%

(b) The rates of representation and transportation allowances shall be determined on the basis of the income class of each LGU.

(c) Each barangay official/employee paid monthly honorarium may be granted year-end bonus based on the monthly honorarium rate as of October 31 of the year, and cash gift, subject to the budgetary requirements and personal services limitation in barangay budgets under Republic Act No. 7160. Enforcement of the personal services limitation shall be waived insofar as the minimum year-end bonus of One thousand pesos (P1,000.00) for the punong barangay and Six hundred pesos (P600.00) for the other mandatory barangay officials, and their cash gifts are concerned.

(8) Military and Uniformed Personnel—The military personnel of the Department of National Defense (DND) and the uniformed personnel of the Department of the Interior and Local Government (DILG), the Philippine Coast Guard (PCG) and the National Mapping and Resource Information Authority (NAMRIA) shall be covered by a compensation system that will promote pay equity for an effective, efficient, professional and motivated corps of military and uniformed personnel.

They shall be covered by only one Base Pay Schedule as follows:

DND DILG PGC and 

NAMRIA

Monthly Base 

Pay

BJMP and BFP PNP and PPSC
Candidate Soldier P11,265
Private Fire/Jail Officer I Police Officer I Apprentice 

Seaman/Seaman

Third Class

14,834
Private First Class Seaman Second 

Class

15,592
Corporal Fire/Jail Officer II Police Officer II Seaman First 

Class

16,934
Sergeant Petty Officer III 17,744
Staff Sergeant Fire/Jail Officer III Police Officer III Petty Officer II 18,665
Technical Sergeant Petty Officer I 20,159
Master Sergeant Senior Fire/ 

Jail Officer I

Senior Police Officer I Chief Petty 

Officer

21,771
Senior Master Sergeant Senior Fire/ 

Jail Officer II

Senior Police Officer II Senior Chief 

Petty Officer

23,513
Chief Master Sergeant Senior Fire/ 

Jail Officer III

Senior Police Officer III Master Chief 

Petty Officer

25,394
First Chief Master Sergeant Senior Fire/ 

Jail Officer IV

Senior Police Officer IV First Master 

Chief Petty Officer

27,425
Cadet Cadet 27,425
Probationary Second Lieutenant 27,425
Second Lieutenant Ensign 29,945
First Lieutenant Inspector Inspector Lieutenant 

Junior Grade

32,341

 

DND DILG PCG and 

NAMRIA

Monthly Base 

Pay

BJMP and BFP PNP and PPSC
Captain Senior 

Inspector

Senior 

Inspector

Lieutenant 

Senior Grade

35,312
Major Chief 

Inspector

Chief 

Inspector

Lieutenant 

Commander

37,313
Lieutenant 

Colonel

Superintendent Superintendent Commander 40,298
Colonel Senior 

Superintendent

Senior 

Superintendent

Captain 43,521
Brigadier 

General

Chief 

Superintendent

Chief 

Superintendent

Commodore 47,002
Major 

General

Director Director Rear Admiral 50,763
Vice Admiral 54,824
Lieutenant 

General

Deputy Director 

General

Admiral 59,210
General Director General 67,500

The remuneration for military and uniformed personnel shall be reckoned on a separate Total Compensation Framework which shall include: (a) Base Pay, including Longevity Pay; (b) Standard Allowances and Benefits; (c) Specific-Purpose Allowances and Benefits; and (d) Incentives.

All existing types of allowances and benefits authorized for military/uniformed personnel such as, but not limited to, Longevity Pay, Quarters Allowance, Subsistence Allowance, Clothing Allowance, Laundry Allowance and Hazard Pay shall continue to be authorized and categorized in accordance with this separate Total Compensation Framework.

(9) Exempt Entities – Government agencies which by specific provision/s of laws are authorized to have their own compensation and position classification system shall not be entitled to the salary adjustments provided herein. Exempt entities shall be governed by their respective Compensation and Position Classification

Systems: Provided, That such entities shall observe the policies, parameters and guidelines governing position classification, salary rates, categories and rates of allowances, benefits and incentives, prescribed by the President: Provided, further, That any increase in the existing salary rates as well as the grant of new allowances, benefits and incentives, or an increase in the rates thereof shall be subject to the approval by the President, upon recommendation of the DBM: Provided, finally, That exempt entities which still follow the salary rates for positions covered by Republic Act No. 6758, as amended, are entitled to the salary adjustments due to the implementation of this Joint Resolution, until such time that they have implemented their own compensation and position classification system.

(10) Disclosure of Compensation and Position Classification Systems Adopted by Exempt Entities – In conformity with the provisions of item (9) hereof, exempt entities shall submit their existing compensation and position classification systems and their implementation status to the DBM.

(11) Non-diminution in the Basic Salaries of Incumbent Employees—In no case shall there be any diminution in the basic salaries of incumbent employees upon the implementation of this Joint Resolution. For this purpose, they shall receive the new salary rates prescribed herein, to be implemented in tranches,. which in no case shall be less than their existing salary rates.

(12) Funding Source – The funding sources for the amounts necessary to implement the modified Compensation and Position Classification System and Base Pay Schedule shall be as follows:

(a) For national government entities, the amounts shall be charged against appropriations set aside for the purpose in the FY 2009 General Appropriations Act and from savings generated by the different departments, bureaus, offices and agencies of the government. Thereafter, such amounts as are needed shall be included in the annual General Appropriations Act: Provided, That for every Fifty billion pesos (P50,000,000,000.00) increase in the programmed new appropriations, five percent (5%) will be earmarked for the salary increase of personnel;

(b) For GOCCs and GFIs, the amounts shall come from their respective corporate funds in the approved corporate operating budgets. Government corporations which do not have adequate or sufficient funds shall only partially implement the established rates: Provided, That any partial implementation shall be at uniform proportion of the established rates for all positions in each government corporation; and

(c) For LGUs, the amounts shall be charged against then-respective, local government funds in accordance with the pertinent provisions of this Joint Resolution and Republic Act No. 7160.

(13) Implementation—For national government employees, the Salary Schedule in item (4)(b) and the Base Pay Schedule in item (8) shall be implemented in four (4) equal yearly tranches but in no case beyond four (4) years: Provided, That the initial implementation shall take effect July 1, 2009.

For GOCCs/GFIs and LGUs, the implementation period shall be at least four (4) years depending on their financial capabilities: Provided, further, That the initial implementation for GOCCs/GFIs shall take effect July 1, 2009 and in the case of LGUs, January 1, 2010.

(14) Applicability to Certain Constitutional Officials -Pursuant to Section 6 of Article VII and Section 10 of Article VI of the Constitution, the salaries prescribed herein for the President of the Philippines, Vice President of the Philippines and Members of Congress shall take effect only after the expiration of the respective terms of the present incumbents.

(15) Applicability of Other Laws – All provisions of Presidential Decree No. 985, as amended by Presidential Decree No. 1597, Republic Act No. 6758, as amended by Senate and House of Representatives Joint Resolution No. 01, s. 1994, which are not inconsistent with and are not expressly modified, revoked or repealed by this Joint Resolution shall continue to be in full force and effect.

(16) Amendment of Existing Laws – The provisions of all laws, decrees, executive orders, corporate charters, rules, regulations, circulars, approvals and other issuances (…)

inconsistent with the provisions of this Joint Resolution such as, but not limited to, Republic Act No. 4670, Republic Act No. 7160, Republic Act No. 7305, Republic Act No. 8439, Republic Act No. 8551, Executive Order No. 107 dated June 10, 1999, Republic Act No. 9286, Republic Act No. 9166, Republic Act No. 9173 and Republic Act No. 9433 are hereby amended.

All provisions of laws, executive orders, corporate charters, implementing rules and regulations prescribing salary grades for government officials and employees other than those in Section 8 of Republic Act No. 6758 are hereby repealed.

(17) Functional Responsibilities — (a) In addition to the powers and functions provided in the pertinent items of this Joint Resolution and Presidential Decree No. 985, as amended by Presidential Decree No. 1597, Republic Act No. 6758, and Senate and House of Representatives Joint Resolution No. 01, s. 1994, the DBM shall;

(i) Prepare and issue the guidelines, rides and regulations necessary to implement the modified Compensation and Position Classification System for all government personnel herein established consistent with the executive orders to be issued by the President;

(ii) Administer the modified Compensation and Position Classification System;

(iii) Undertake a continuing review of the Compensation and Position Classification System for civilian government personnel in coordination with the CSC; and

(iv) Recommend for the consideration and approval of the President, the updating of the Compensation and Position Classification System 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.

(b) The CSC and the DBM shall jointly formulate the guidelines, rules and regulations on the grant of incentives in items (4)(h)(i) and (ii).

(c) The CSC, in developing the Performance Management System, shall ensure that personnel performance shall be linked with organizational performance in order to enhance the performance orientation of the compensation system.

(18) Preparation of a Consolidated Compensation and Position Classification Report – The DBM shall prepare a Consolidated Compensation and Position Classification Report, summarizing the approved systems for all government entities in the national government, government-owned or -controlled corporations and government financial institutions including exempt entities and the status of implementation thereof. Said report shall be periodically updated and submitted to Congress and the Commies ion on Audit for public disclosure, monitoring, compliance with established policies and as basis for future policy decisions.

Approved,

(Sgd.) JUAN PONCE ENRILE (Sgd.) PROSPERO C. NOGRALES
President of the Senate Speaker of the House of Representativse

This Joint Resolution which is a consolidation of House Joint Resolution No. 36 and Senate Joint Resolution No. 26 was finally adopted by the House of Representatives and the Senate on June 1, 2009 and June 2, 2009, respectively.

(Sgd.) EMMA L1RIO-REYES (Sgd.) MARILYN B. BARUA-YAP
Secretary General House of Representatives Secretary of the Senate

Approved: JUN 17 2009

(Sgd.) GLORIA MACAPAGAL-ARROYO

President of the Philippines


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