WHEREAS, a Career Executive Service has been created under the Integrated Reorganization Plan approved by Presidential Decree No. 1 dated 24 September 1972, to form a continuing pool of well-selected and development oriented career administrators who shall provide competent and faithful service;

WHEREAS, the Career Executive Service Board has been directed by Letter of Instructions No. 146 dated 14, November 1973 to formulate rules, standards and procedures covering the Career Executive Service, particularly the compensation of the members of the Service;

WHEREAS, Career Executive Service Officers have already been appointed into the Career Executive Service upon recommendation of the Career Executive Service Board;

WHEREAS, a Compensation Scheme has been recommended by the Career Executive Service Board to be adopted for members of the Career Executive Service;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree and order the following:

SECTION 1. The following Compensation Scheme, as recommended by the Career Executive Service Board pursuant to the provisions of the Integrated Reorganization Plan approved by Presidential Decree No. 1 dated 24 September 1972, for members of the Career Executive Service is hereby adopted:

	Rank			Salary Levels			Positions Covered
	RANK I						Undersecretary
		Grade 2		P41,232
		Grade 1		39,240
	RANK II
		Grade 5		39,240			Assistant Secretary
		Grade 4		37,344			Bureau Director
		Grade 3		35,532			Regional Director
		Grade 2		33,816			(Department-wide regionalization)
		Grade 1		32,184
	RANK III
		Grade 5		32,184			Assistant Bureau Director
		Grade 4		30,624			Assistant Regional Director
		Grade 3		29,148
		Grade 2		27,732			(Department-wide regionalization)
		Grade 1		26,388
	RANK IV
		Grade 4		26,388			Regional Director
		Grade 3		25,116			(Bureau-wide regionalization)
		Grade 2		23,892
		Grade 1		22,728			Chief, Department Service
	RANK V
		Grade 4		22,728			Assistant Regional Director
		Grade 3		21,624			(Bureau-wide regionalization)
		Grade 2		20,580
		Grade 1		19,584

SEC. 2. Original appointments as well as promotional appointments of Career Executive Service Officers shall be issued by the President upon recommendation of the Career Executive Board to the appropriate rank, grade, and salary. Subsequent to such original or promotional appointments, salary increases to higher grades within rank of Career Executive Service Board in accordance with rules and regulations which the Board may promulgate pursuant to Paragraph 5, Article IV, Part III of the Integrated Reorganization Plan.

SEC. 3. As a general rule, the salaries of Career Executive Service Officers shall start at Grade 2 of the corresponding rank in this Compensation Scheme and those of incumbents of and new appointees to Career Executive Service positions who are not Career Executive Service Officers shall start at Grade 1 of the corresponding rank: Provided, That in the case of said incumbents who are not members of the Career Executive Service, subsequent salary increases and/or rank promotions may be granted only after satisfactory completion of the Career Executive Service Development Program and compliance with such requirements as the Board shall set: Provided, further, That nothing herein stated shall reduce any salary received by any incumbent of any Executive Service position as a consequence of the implementation of the herein Compensation Scheme, except that the salary of his successor shall be in conformity with this Scheme.

SEC. 4. This Compensation Scheme shall govern salaries of all existing positions within the Career Executive Service, and of all positions as may hereafter be created within the Career Executive Service, and likewise of all positions as may be determined to be of equivalent category by the Career Executive Service Board.

SEC. 5. The President may, in cases of appointments to positions in the Career Executive Service of individuals possessing specialized skills and exceptional talent, authorize a salary higher than the salary provided for in the Scheme.

SEC. 6. This Compensation Scheme shall be implemented upon approval.

SEC. 7. This Decree shall take effect upon approval.

Done in the City of Manila, this 16th day of December, in the year of Our Lord, nineteen hundred and seventy-five.