WHEREAS, the officers and men of the Armed Forces of the Philippines, ever since Martial Law was declared on September 21, 1972, have been more deeply engaged in the peace and order campaigns throughout the country;

WHEREAS, it is necessary to enhance and keep at a high level the morale and efficiency of the officers and men of the Armed Forces of the Philippines;

WHEREAS, there exists a constantly increasing demand for highly qualified and experienced individuals in the military service, in view of the accelerated introduction of complicated and complex equipment;

WHEREAS, the Armed Forces of the Philippines is facing a growing problem of retaining highly qualified and experienced professionals whose skills and intelligence make them most attractive to civilian professions;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby authorize and prescribe the following rates of monthly base pay for officers and enlisted personnel of the Armed Forces of the Philippines in each grade or its equivalent in the Philippine Navy as indicated, effective January 1, 1976; Provided, that the monthly base pay of a 20-year old trainee shall not be less than thirty-three and one-third percentum of the monthly based pay prescribed for the grade of a private of the Regular Force. Provided, further, That any provision of law to the contrary notwithstanding, the rates of pay hereunder prescribed shall not be the basis of: (a) retirement gratuity or pension for military personnel retired prior to the effective date of this Decree, (b) incentive and additional pays of the Armed Forces of the Philippines, save longevity pay, and (c) pay of commissioned officers of the Bureau of Coast and Geodetic Survey; and Provided, finally, That the increase in longevity pay for the year 1976 shall be subject to the availability of funds and the approval thereof by the Secretary of National Defense.

	Base Pay
General	P4,000
Lieutenant General	3,500
Major General	3,000
Brigadier General	2,500
Colonel	2,000
Lieutenant Colonel	1,700
Major	1,400
Captain	1,100
First Lieutenant	900
Second Lieutenant	700
Master Sergeant	410
Technical Sergeant	360
Staff Sergeant	325
Sergeant	300
Corporal	275
Private First Class	255
Private	240

The Secretary of National Defense shall promulgate such rules and regulations as may be necessary to implement the intent and purpose of this Decree.

The sum of one hundred thirty three million pesos is hereby authorized to be appropriated, out of any funds in the National Treasury not otherwise appropriated, in addition to the current budget of the Armed Forces of the Philippines and shall thereafter be incorporated in its yearly appropriations to carry into effect the provisions of this Decree.

All provisions of existing laws, orders, rules and regulations contrary to or inconsistent with the provisions of this Decree are hereby repealed.

This Decree shall take effect immediately.

Done in Quezon City, this 22nd day of December, in the year of Our Lord, nineteen hundred and seventy-five.