Whereas, Letter of Implementation No. 69 governs the compensation structure of state universities and colleges, distinguishing between developed and developing institutions;

Whereas, Letter of Implementation No. 82 provided for salary increases in state universities and colleges;

Whereas, the University of the Philippines and Mindanao State University, classified as the only developed institutions, have existing position classification and compensation schemes that exceed those of other state universities and colleges and those of the national government (proper);

Whereas, the level of compensation in the private sector is such as to require further adjustments in the compensation  levels in state universities and colleges to allow them to be  competitive;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines by virtue of the powers vested in me by law, do hereby direct the following measures to implement P.D. No. 985 with respect to  state universities and colleges:

Executive Positions

1. Executive positions in state universities and colleges shall be equated to comparable positions in the Career Executive Service The Career Executive Service Board and the Ministry of the Budget shall jointly determine equivalence and shall see to the implementation of such salary adjustments as may be called for by such determination.

Teaching Positions

2. The salaries of teaching personnel in all state universities and colleges shall be adjusted by an additional three (3) steps in the national compensation plan for state universities and colleges, in addition to the salary increases approved under Letter of Implementation No. 82.

Non-Teaching Positions

3. Non-teaching personnel in all state universities and colleges shall be classified under the national compensation and position classification plans.  Positions in state universities and colleges receiving less than counterparts in national government agencies shall be entitled to such adjustments as will bring them up to the level of the adjusted salary of national government employees under Letter of Implementation No. 82 to 84, as may be applicable.
   
4. Positions in developed state universities and colleges shall be adjusted by an additional three steps beyond those approved under Letters of Implementation No. 82 to 84, as may be applicable: Provided, That in no case may these adjustments result in a recomputed salary exceeding forty per cent (40%) more than the salary of the equivalent position in the national compensation and position classification plans.

Non-Permanent Personnel

5. The compensation of contractual, emergency and other non-permanent employees may be adjusted, observing the provisions of items 11 and 12 of Letter of Implementation No. 82. Provided, That the lump sum available for such personnel within the budget of the state university or college can absorb the necessary incremental cost.

Funding Source

6. The amounts appropriated for salary increases which are incorporated in the budgets of state universities and colleges shall be used for the salary adjustments directed by this Letter. Any deficiency shall be covered by salary lapses and other personal services savings of the institution concerned.  Any remaining deficiency shall be covered by the Salary Adjustment Fund in the CY 1979 General Appropriations Act and from budgetary reserves.
   
7. No action shall be taken on the use of CY 1979 savings in personal services for agencies which are authorized to draw against the Salary Adjustment Fund.
   
8. Requirements to implement these additional increases during CY 1980 shall be provided for within the programmed budget ceilings of the institution, augmented by charges to the Salary Adjustment Fund where necessary.

Administrative Procedure

9. A plantilla of personnel shall be prepared by each institution and submitted to the Office of Compensation and Position Classification of the Ministry of the Budget within thirty (50) days hereof, showing the basis of upgrading, the necessary computations and funding sources.  Payment of differentials may be immediately implemented, subject to final verification of the plantilla.
   
10. The rules and regulations needed to comply with this Letter shall be formulated and issued by the Minister of the Budget.

Effectivity

11. The  salary increases directed under this Letter shall be  effective as of Hay 1, 1979.

Done in the City of Manila, this 9th day of August, nineteen hundred and seventy-nine.

				(Sgd.) FERDINAND E. MARCOS
				President
				Republic of the Philippines
	By the President:
	(Sgd.) JUAN C. TUVERA
		Presidential Assistant