Executive Order No. 201

MALACAÑAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER No. 201

MODIFYING THE SALARY SCHEDULE FOR CIVILIAN GOVERNMENT PERSONNEL AND AUTHORIZING THE GRANT OF ADDITIONAL BENEFITS FOR BOTH CIVILIAN AND MILITARY AND UNIFORMED PERSONNEL

WHEREAS, Congress, under Item 1 of its Joint Resolution No. 4, (s. 2009), inscribes, as among the governing principles of the Compensation and Position Classification System (CPCS), the payment of just and equitable compensation to all government personnel in accordance with the principle of equal pay for work of equal value and one that is generally comparable with those in the private sector doing comparable work in order to attract, retain and motivate a corps of competent civil servants;

WHEREAS, to ensure this, the same Joint Resolution sets a periodic review of the government's CPCS 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;

WHEREAS, Section 13 of Presidential Decree No. 985 and Item 17 (iv) of the above Joint Resolution authorize the President, upon recommendation of the Department of Budget and Management, to periodically revise or update the CPCS as well as the policies on and levels of allowances, benefits and incentives applicable to all government personnel; and

WHEREAS, Congress has appropriated an amount of P57.91 Billion in Republic Act (RA) No. 10717 or the Fiscal Year 2016 General Appropriations Act (GAA), to cover the requirement to implement the compensation adjustment of civilian personnel and military and uniformed personnel in the National Government.

NOW THEREFORE, I, BENIGNO S. AQUINO, III, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Compensation Adjustment Strategy. To ensure that the compensation structure of government personnel is comparable with the prevailing rates in the private sector thereby attracting and retaining competent and committed civil servants, the existing CPCS is hereby revised or updated to conform with the following:

a) Raise the minimum salary for Salary Grade 1 from the current rate of Nine Thousand Pesos (P9,000) to Eleven Thousand Sixty Eight Pesos (P11,068) to make it even more competitive with the market rates;

b) Bring the compensation of government personnel closer to their private counterparts to at least 70% of the median of the market for all salary grades;

c) Eliminate overlaps in between salary grade allocations of government personnel to recognize differences in duties and responsibilities of the positions;

d) Maximize the net take home pay of government personnel through the inclusion of additional benefits; and

e) Strengthen the performance-based incentive system in recognition of government personnel who play a greater role and carry a heavier responsibility in attaining performance targets and delivering results.

For the military and uniformed personnel (MUP), the compensation adjustment strategy shall be aligned with the objective of mitigating the fiscal crisis building up in their pension system and pursuing the pension reform.

SECTION 2. Coverage. The modified Salary Schedule authorized herein shall apply to all civilian 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, 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 new Provisional Allowance Schedule and the Officers' Allowance shall apply only to 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).

The Mid-Year Bonus, Enhanced Performance-Based Bonus (PBB), and Productivity Enhancement Incentive provided herein shall apply to both civilian personnel, and MUP, except for the increase in Hazard Pay which applies only to the MUP.

However, individuals whose services are engaged through job orders, contracts of service, consultancy contracts, and service contracts with no employer-employee relationship are excluded from the salary increase and benefits authorized herein.

SECTION 3. Modified Salary Schedule, including Step Increments. The modified Salary Schedule for Civilian Personnel, to be implemented in four (4) tranches, shall be as follows:

First Tranche

Salary
Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8

1 9,478 9,568 9,660 9,753 9,846 9,949 10,036 10,132

2 10,159 10,255 10,351 10,449 10,547 10,647 10,747 10,848

3 10,883 10,985 11,089 11,193 11,298 11,405 11,512 11,621

4 11,658 11,767 11,878 11,990 12,103 12,217 12,333 12,448

5 12,488 12,644 12,725 12,844 12,965 13,087 13,211 13,335

6 13,378 13,504 13,630 13,759 13,889 14,020 14,152 14,285

7 14,331 14,466 14,602 14,740 14,878 15,018 15,159 15,303

8 15,368 15,519 15,670 15,823 15,978 16,133 16,291 16,450

9 16,512 16,671 16,830 16,992 17,155 17,319 17,485 17,653

10 17,730 17,900 18,071 18,245 18,420 18,634 18,775 18,955

11 19,077 19,286 19,496 19,709 19,925 20,142 20,362 20,585

12 20,651 20,870 21,091 21,315 21,540 21,769 21,999 22,232

13 22,328 22,564 22,804 23,045 23,289 23,536 23,786 24,037

14 24,141 24,396 24,655 24,916 25,180 25,447 25,717 25,989

15 26,192 26,489 26,790 27,094 27,401 27,712 28,027 28,344

16 28,417 28,740 29,066 29,396 29,729 30,066 30,408 30,752

17 30,831 31,183 31,536 31,893 32,255 32,622 32,991 33,366

18 33,452 33,831 34,215 34,603 34,996 35,393 35,795 36,201

19 36,409 36,857 37,312 37,771 38,237 38,709 39,186 39,670

20 39,768 40,259 40,755 41,258 41,766 42,281 42,802 43,330

21 43,439 43,974 44,517 45,066 45,621 46,183 46,753 47,329

22 47,448 48,032 48,625 49,224 49,831 50,445 51,067 51,697

23 51,826 52,466 53,112 53,767 54,430 55,101 55,781 56,468

24 56,610 57,308 58,014 58,730 59,453 60,187 60,928 61,679

25 61,971 62,735 63,508 64,291 65,083 65,885 66,698 67,520

26 67,690 68,524 69,369 70,224 71,090 71,967 72,855 73,751

27 73,937 74,849 75,771 76,705 77,651 78,608 79,577 80,567

28 80,760 81,756 82,764 83,784 84,817 85,862 86,921 87,993

29 88,214 89,301 90,402 91,516 92,644 93,786 94,943 96,113

30 96,354 97,543 98,745 99,962 101,195 102,442 103,705 104,984

31 117,086 118,623 120,180 121,758 123,356 124,975 126,616 128,278

32 135,376 137,174 138,996 140,843 142,714 144,610 146,531 148,478

33 160,924 165,752

Second Tranche

Salary
Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8

1 9,981 10,072 10,165 10,258 10,352 10,453 10,543 10,640

2 10,667 10,761 10,856 10,952 11,049 11,147 11,245 11,345

3 11,387 11,488 11,589 11,691 11,795 11,899 12,004 12,110

4 12,155 12,262 12,371 12,480 12,591 12,702 12,814 12,927

5 12,975 13,117 13,206 13,322 13,440 13,559 13,679 13,799

6 13,851 13,973 14,096 14,221 14,347 14,474 14,602 14,731

7 14,785 14,916 15,048 15,181 15,315 15,450 15,587 15,725

8 15,818 15,969 16,121 16,275 16,430 16,586 16,744 16,903

9 16,986 17,142 17,299 17,458 17,618 17,780 17,943 18,108

10 18,217 18,385 18,553 18,724 18,896 19,095 19,244 19,421

11 19,620 19,853 20,088 20,326 20,567 20,811 21,058 21,307

12 21,387 21,626 21,868 22,113 22,361 22,611 22,864 23,120

13 23,257 23,517 23,780 24,047 24,315 24,587 24,863 25,141

14 25,290 25,573 25,859 26,149 26,441 26,737 27,036 27,339

15 27,565 27,887 28,214 28,544 28,877 29,214 29,557 29,902

16 30,044 30,396 30,751 31,111 31,474 31,843 32,215 32,592

17 32,747 33,131 33,518 33,909 34,306 34,707 35,113 35,524

18 35,693 36,111 36,532 36,960 37,392 37,829 38,272 38,719

19 39,151 39,685 40,227 40,776 41,333 41,898 42,470 43,051

20 43,250 43,841 44,440 45,047 45,662 46,285 46,917 47,559

21 47,779 48,432 49,094 49,764 50,443 51,132 51,831 52,539

22 52,783 53,503 54,234 54,975 55,726 56,487 57,258 58,040

23 58,310 59,106 59,913 60,732 61,561 62,402 63,255 64,118

24 64,416 65,296 66,187 67,092 68,008 68,937 69,878 70,832

25 71,476 72,452 73,441 74,444 75,461 76,491 77,536 78,595

26 78,960 80,039 81,132 82,240 83,363 84,502 85,657 86,825

27 87,229 88,420 89,628 90,852 92,093 93,351 94,625 95,925

28 96,363 97,679 99,013 100,366 101,736 103,126 104,534 105,962

29 106,454 107,908 109,382 110,875 112,390 113,925 115,481 117,058

30 117,601 119,208 120,836 122,486 124,159 125,855 127,573 129,316

31 152,325 154,649 157,008 159,404 161,836 164,305 166,812 169,357

32 177,929 180,700 183,513 186,372 189,274 192,221 195,215 198,255

33 215,804 222,278

Third Tranche

Salary
Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8

1 10,510 10,602 10,695 10,789 10,884 10,982 11,076 11,173

2 11,200 11,293 11,386 11,480 11,575 11,671 11,767 11,864

3 11,914 12,013 12,112 12,212 12,313 12,414 12,517 12,620

4 12,674 12,778 12,884 12,990 13,097 13,206 13,315 13,424

5 13,481 13,606 13,705 13,818 13,932 14,047 14,163 14,280

6 14,340 14,459 14,578 14,699 14,820 14,942 15,066 15,190

7 15,254 15,380 15,507 15,635 15,765 15,895 16,026 16,158

8 16,282 16,433 16,585 16,739 16,895 17,051 17,209 17,369

9 17,473 17,627 17,781 17,937 18,095 18,253 18,413 18,575

10 18,718 18,883 19,048 19,215 19,384 19,567 19,725 19,898

11 20,179 20,437 20,698 20,963 21,231 21,502 21,777 22,055

12 22,149 22,410 22,674 22,942 23,212 23,486 23,763 24,043

13 24,224 24,510 24,799 25,091 25,387 25,686 25,989 26,296

14 26,494 26,806 27,122 27,442 27,766 28,093 28,424 28,759

15 29,010 29,359 29,713 30,071 30,432 30,799 31,170 31,545

16 31,765 32,147 32,535 32,926 33,323 33,724 34,130 34,541

17 34,781 35,201 35,624 36,053 36,487 36,927 37,371 37,821

18 38,085 38,543 39,007 39,477 39,952 40,433 40,920 41,413

19 42,099 42,730 43,371 44,020 44,680 45,350 46,030 46,720

20 47,037 47,742 48,457 49,184 49,921 50,669 51,428 52,199

21 52,554 53,341 54,141 54,952 55,776 56,612 57,460 58,322

22 58,717 59,597 60,491 61,397 62,318 63,252 64,200 65,162

23 65,604 66,587 67,585 68,598 69,627 70,670 71,730 72,805

24 73,299 74,397 75,512 76,644 77,793 78,959 80,143 81,344

25 82,439 83,674 84,928 86,201 87,493 88,805 90,136 91,487

26 92,108 93,488 94,889 96,312 97,755 99,221 100,708 102,217

27 102,910 104,453 106,019 107,608 109,221 110,858 112,519 114,210

28 114,981 116,704 118,453 120,229 122,031 123,860 125,716 127,601

29 128,467 130,392 132,346 134,330 136,343 138,387 140,461 142,566

30 143,534 145,685 147,869 150,085 152,335 154,618 156,935 159,288

31 198,168 201,615 205,121 208,689 212,318 216,011 219,768 223,590

32 233,857 238,035 242,288 246,618 251,024 255,509 260,074 264,721

33 289,401 298,083

Fourth Tranche

Salary
Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8

1 11,068 11,160 11,254 11,348 11,443 11,538 11,635 11,732

2 11,761 11,851 11,942 12,034 12,126 12,219 12,313 12,407

3 12,466 12,562 12,658 12,756 12,854 12,952 13,052 13,152

4 13,214 13,316 13,418 13,521 13,625 13,729 13,835 13,941

5 14,007 14,115 14,223 14,332 14,442 14,553 14,665 14,777

6 14,847 14,961 15,076 15,192 15,309 15,426 15,545 15,664

7 15,738 15,859 15,981 16,104 16,227 16,352 16,477 16,604

8 16,758 16,910 17,063 17,217 17,372 17,529 17,688 17,848

9 17,975 18,125 18,277 18,430 18,584 18,739 18,896 19,054

10 19,233 19,394 19,556 19,720 19,884 20,051 20,218 20,387

11 20,754 21,038 21,327 21,619 21,915 22,216 22,520 22,829

12 22,938 23,222 23,510 23,801 24,096 24,395 24,697 25,003

13 25,232 25,545 25,861 26,181 26,506 26,834 27,166 27,503

14 27,755 28,099 28,447 28,800 29,156 29,517 29,883 30,253

15 30,531 30,909 31,292 31,680 32,072 32,469 32,871 33,279

16 33,584 34,000 34,421 34,847 35,279 35,716 36,159 36,606

17 36,942 37,400 37,863 38,332 38,807 39,288 39,774 40,267

18 40,637 41,140 41,650 42,165 42,688 43,217 43,752 44,294

19 45,269 46,008 46,759 47,522 48,298 49,086 49,888 50,702

20 51,155 51,989 52,838 53,700 54,577 55,468 56,373 57,293

21 57,805 58,748 59,707 60,681 61,672 62,678 63,701 64,741

22 65,319 66,385 67,469 68,570 69,689 70,827 71,983 73,157

23 73,811 75,015 76,240 77,484 78,749 80,034 81,340 82,668

24 83,406 84,767 86,151 87,557 88,986 90,439 91,915 93,415

25 95,083 96,635 98,212 99,815 101,444 103,100 104,783 106,493

26 107,444 109,197 110,980 112,791 114,632 116,503 118,404 120,337

27 121,411 123,393 125,407 127,454 129,534 131,648 133,797 135,981

28 137,195 139,434 141,710 144,023 146,373 148,763 151,191 153,658

29 155,030 157,561 160,132 162,746 165,402 168,102 170,845 173,634

30 175,184 178,043 180,949 183,903 186,904 189,955 193,055 196,206

31 257,809 262,844 267,978 273,212 278,549 283,989 289,536 295,191

32 307,365 313,564 319,887 326,338 332,919 339,633 346,483 353,470

33 388,096 399,739

SECTION 4. Mid-Year Bonus. Beginning FY 2016, a Mid-Year Bonus equivalent to one (1) month basic salary as of May 15, shall be granted to those who have rendered at least four (4) months of satisfactory service and are still in the service as of same date, to be given not earlier than May 15 of every year. This shall be in addition to the Standard Allowances and Benefits under the Total Compensation Framework embodied in the Congress Joint Resolution No. 4 (s. 2009). The existing Year-End Bonus equivalent to one (1) month basic salary and Cash Gift at prescribed rates shall be given in November of every year.

SECTION 5. Enhanced Performance-Based Bonus. The existing PBB granted to qualified government personnel, including those in LGUs, shall be enhanced to strengthen its results orientation, to be given in an amount equivalent to one (1) month basic salary up to two (2) months basic salary, to be implemented in two (2) phases starting in FY 2017. The PBB shall be subject to the achievement by departments or agencies, including LGUs and individual employees of their performance targets or commitments and compliance with good governance and other conditions.

The grant of the enhanced PBB shall be based on a progressive rate system. As the position and responsibility in improving agency performance becomes higher, so is the amount of PBB.

The Inter-Agency Task Force on the Harmonization of National Government Performance Monitoring, Information and Reporting Systems created under Administrative Order No. 25 (s. 2011) shall prescribe the conditions on eligibility and procedures for the grant of the enhanced PBB, including the ranking system to recognize differences in levels of performance.

SECTION 6. Productivity Enhancement Incentive. Beginning FY 2016, the Productivity Enhancement Incentive shall be given not earlier than December 15 of every year to all qualified government employees at Five Thousand Pesos (P5,000) each for the purpose of improving the government employees' productivity.

SECTION 7. Provisional Allowance Schedule for Military and Uniformed Personnel. A monthly Provisional Allowance shall be given to the MUP to be implemented in four (4) tranches, as follows, in lieu of increases in base pay:

DND DILG PCG NAMRIA Monthly Provisional Allowance

BJMP and BFP PNP and PPSC First
Tranche Second
Tranche Third
Tranche Fourth
Tranche

Candidate
Soldier

267 547 842 1,149

Private Fire/Jail Officer I Police Officer I Apprentice
Seaman/
Seaman Third Class Apprentice
Seaman/
Seaman Third Class 342 700 1,071 1,457

Private First Class

Seaman
Second Class Seaman
Second Class 514 1,050 1,612 2,199

Corporal Fire/Jail
Officer II Police Officer II Seaman
First Class Seaman
First Class 673 1,378 2,120 2,899

Sergeant

Petty
Officer III Petty
Officer III 836 1,718 2,650 3,633

Staff
Sergeant Fire/Jail
Officer III Police Officer
III Petty
Officer II Petty
Officer II 992 2,043 3,157 4,339

Technical Sergeant

Petty Officer I Petty Officer I 1,196 2,471 3,826 5,268

Master Sergeant Senior Fire/
Jail Officer I Senior Police
Officer I Chief Petty
Officer Chief Petty
Officer 1,429 2,954 4,584 6,325

Senior Master
Sergeant Senior Fire/
Jail Officer II Senior Police
Officer II Senior
Chief Petty
Officer Senior
Chief Petty
Officer 1,688 3,500 5,442 7,525

Chief Master
Sergeant Senior
Fire/Jail
Officer III Senior Police
Officer III Master
Chief Petty
Officer Master
Chief Petty
Officer 2,081 4,331 6,760 9,384

First
Chief Master
Sergeant Senior
Fire/Jail
Officer IV Senior Police
Officer IV First Master
Chief Petty
Officer First Master
Chief Petty
Officer 2,651 5,547 8,711 12,165

Cadet
Cadet Cadet
2,651 5,547 8,711 12,165

Probationary
Second
Lieutenant

2,651 5,547 8,711 12,165

Second
Lieutenant

Ensign Ensign 3,341 7,030 11,104 15,598

First Lieutenant Inspector Inspector Lieutenant Junior
Grade Lieutenant Junior
Grade 4,092 8,661 13,761 19,452

Captain Senior
Inspector Senior
Inspector Lieutenant Senior
Grade Lieutenant Senior
Grade 5,003 10,652 17,026 24,215

Major Chief Inspector Chief Inspector Lieutenant
Commander Lieutenant
Commander 5,853 12,533 20,156 28,849

Lieutenant Colonel Superintendent Superintendent Commander Commander 7,061 15,228 24,671 35,584

Colonel Senior
Superintendent Senior
Superintendent Captain Captain 8,304 18,016 29,370 42,639

Brigadier General Chief Superintendent Chief Superintendent Commodore Commodore 9,708 21,189 34,760 50,799

Major General Director Director Rear
Admiral Rear
Admiral 10,679 24,795 40,935 60,222

Vice
Admiral Vice
Admiral 11,747 28,198 46,594 68,713

Lieutenant General
Deputy Director General Admiral Admiral 12,922 31,221 51,873 76,825

General
Director General

14,214 35,260 63,977 95,399

The Provisional Allowance shall be given as an interim measure to supplement the total compensation of MUP until such time that their Base Pay Schedule is rationalized in consideration of the pension implications of base pay adjustment of personnel in the active service under existing laws.

SECTION 8. Hazard Pay. The Hazard Pay of all military and uniformed personnel shall be increased from the current rate of Two Hundred Forty Pesos (P240) per month to the following rates:

a) Starting January 1,2016, Three Hundred Ninety Pesos (P390) per month;

b) By January 1, 2017, Five Hundred Forty Pesos (P540) per month;

c) By January 1, 2018, Six Hundred Ninety Pesos (P690) per month; an

d) By January 1, 2019, Eight Hundred Forty Pesos (P840) per month.

SECTION 9. Officers' Allowance. An Officers' Allowance shall be given to the following MUP ranks, likewise as an interim measure until such time that the Base Pay Schedule is modified and rationalized, at the rates below:
1âwphi1

DND DILG PCG NAMRIA Monthly Provisional Allowance

BJMP and BFP PNP and PPSC First
Tranche Second
Tranche Third
Tranche Fourth
Tranche

Captain Senior
Inspector Senior
Inspector Lieutenant
Senior
Grade Lieutenant
Senior
Grade 1,000 3,000 4,500 7,000

Major Chief Inspector Chief Inspector Lieutenant
Commander Lieutenant
Commander 1,500 4,500 6,500 11,000

Lieutenant Colonel Superintendent Superintendent Commander Commander 2,000 6,000 8,500 13,000

Colonel Senior Superintendent Senior Superintendent Captain Captain 3,000 7,500 10,500 15,000

Brigadier General Chief Superintendent Chief Superintendent Commodore Commodore 4,000 9,000 12,500 17,000

Major General Director Director Rear
Admiral Rear
Admiral 5,000 10,500 15,000 20,000

Vice
Admiral Vice
Admiral 6,000 12,000 18,000 25,000

Lieutenant
General
Deputy
Director General Admiral Admiral 7,000 13,000 21,000 30,000

General
Director General

9,000 18,000 25,000 35,000

SECTION 10. Compensation Adjustment for LGU Personnel. The modified Salary Schedule and additional benefits authorized herein for civilian personnel may likewise be granted to LGU personnel, subject to the following:

a) Authorization from their respective sanggunian as provided under Sections 447(a), 458(a) and 468(a) of RA No. 7160; and

b) Compliance with the Personnel Services (PS) limitation set under Sections 325 and 331 of RA No. 7160.

LGUs shall likewise comply with the following rules in the implementation of the modified salary schedule and grant of additional benefits:

i. The implementation of the modified Salary Schedule for LGU personnel, including the rate of Representation and Transportation Allowances, shall further correspond to the LGU's income classification and shall not therefore exceed the percentage of the Salary Schedule in Section 3 hereof, as follows:

Percentage of the Salary Schedule
1a\^/phi1

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%

ii. The basic pay of barangay personnel shall be in the form of honoraria which shall not exceed the percentage of the Salary Schedule corresponding to the income classification of the LGU. They may likewise receive Mid-Year Bonus and Year-End Bonus based on the monthly honoraria as of May 15 and October 31 of the year, respectively, and Cash Gift of Five Thousand Pesos (P5.000).

However, the minimum Year-End Bonus of One Thousand Pesos (P1,000) for the punong barangay and Six Hundred Pesos (P600) for other mandatory barangay officials shall not be subject to the PS limitation.

SECTION 11. Implementation Schedule. The modified Salary Schedule and additional benefits authorized herein shall be implemented in National Government Agencies as follows, subject to appropriations by Congress:

a Starting January 1, 2016, the first tranche salary schedule for civilian personnel and the first tranche Provisional Allowance, Officers' Allowance and Hazard Pay for MUP, together with the Mid-Year Bonus.

b By January 1, 2017, the second tranche salary schedule for civilian personnel and the second tranche Provisional Allowance, Officers' Allowance and Hazard Pay for MUP, the Mid-Year Bonus and half of the enhanced PBB;

c By January 1, 2018, the third tranche salary schedule for civilian personnel and the third tranche Provisional Allowance, Officers' Allowance and Hazard Pay for MUP, the Mid-Year Bonus and full amount of the enhanced PBB; and

d By January 1, 2019, the fourth tranche salary schedule for civilian personnel and the fourth tranche Provisional Allowance, Officers' Allowance and Hazard Pay for MUP, the Mid-Year Bonus and full amount of the enhanced PBB.

For covered GOCCs and LGUs, the implementation of the compensation adjustments shall be in at least four (4) years depending on their respective financial capability, with each tranche starting not earlier than the dates stated above. GOCCs and LGUs which do not have adequate or sufficient funds shall partially implement the modified Salary Schedule and authorized benefits. In case of partial implementation, the same shall be at uniform percentage across all positions for every GOCC/LGU.

SECTION 12. Retroactive Application. The first tranche implementation of the modified Salary Schedule for civilian personnel, the grant of the Provisional Allowance, Officers' Allowance and increased Hazard Pay for the MUP, shall be effective January 1, 2016.

For covered GOCCs and LGUs, the retroactive application of the first tranche shall be subject to their financial capabilities and compliance with other requirements under existing laws.

SECTION 13. Exempt Entities. The following exempt entities shall not be covered by the modified Salary Schedule and additional benefits authorized herein: (i) government agencies, including GOCCs that are exempted from the coverage of RA No. 6758, as amended, as provided in their respective enabling law or charter; and (ii) GOCCs governed by the CPCS established by the Governance Commission for GOCCs (GCG) and approved by the President of the Philippines, under RA No. 10149.

They shall be governed by their respective CPCS which shall be made effective upon the recommendation of the DBM or the Governance Commission for GOCCs, as the case may be, and approval by the President of the Philippines.

SECTION 14. Applicability to Certain Officials. Consistent with the policy under Section 6 of Article VII and Section 10 of Article VI of the Constitution, the salaries authorized herein for the President, Vice President and Members of Congress shall take effect only after the expiration of the respective terms of the incumbents.

The implementation of this Executive Order with respect to the regular members of the Cabinet shall be effective starting July 1, 2016.

SECTION 15. Funding Source. The funding sources for the amounts necessary to implement this Executive Order shall be as follows:

a) For national government agencies funded in the GAA, the amount needed for the compensation adjustment in FY 2016 shall be charged against the appropriations provided in the FY 2016 GAA.

The funding requirements for the compensation adjustment in FYs 2017, 2018 and 2019 will be included in the proposed annual National Expenditure Program submitted to Congress for its approval. The DBM, following the compensation adjustment strategy embodied in Section 1 hereof, and consistent with its authority under Section 7 of RA No. 6758, as amended, shall then be authorized to implement or adjust the compensation corresponding to the appropriations provided in the GAA.

b) For GOCCs, the amounts shall come from their respective corporate funds in the corporate operating budgets approved by DBM.1âwphi1

c) For LGUs, the amounts shall be charged against their respective funds in accordance with the pertinent provisions of this Order and RA No. 7160.

SECTION 16. Implementing guidelines. The DBM shall issue the guidelines necessary to implement the provisions of this Order.

SECTION 17. Separability. Should any provision of this Order be declared invalid or unconstitutional, the other provisions unaffected thereby shall remain valid and subsisting.

SECTION 18. Repeal. All other rules, regulations and issuances, or parts thereof which are inconsistent with this Order are hereby repealed or modified accordingly..

SECTION 19. Effectivity. - This Order shall take effect immediately upon its publication in a newspaper of general circulation.

DONE, in the city of Manila, this 19th day of February, in the year of our Lord, Two Thousand and Sixteen.

(Sgd.) BENIGNO S. AQUINO III

By the President:

(Sgd.) PAQUITO N. OCHOA JR.
Executive Secretary

The Lawphil Project - Arellano Law Foundation