Whereas, the international  energy crisis is expected to lead to an increase in the cost of imported oil and consequently in the general level of consumer prices;

Whereas, it is necessary to adjust the salaries of government officials and employees, in recognition of increases in the cost of living and to keep  abreast  of private sector compensation levels;

NOW, THEREFORE, I, FERDINAND E. MARCOS,  President of the Philippines,  by virtue  of the powers vested in me by law,  do hereby direct the implementation of the following measures which increase the salary of government personnel within the limits of available funds:

Coverage

Letter of Implementation pertains to compensation in the Ministries/Bureaus/Offices/Agencies of the national government, including state universities and colleges.

Letter shall not apply to positions whose salaries are fixed by the Constitution, to Ministers or equivalent, and to those agencies  and positions for which separate directives are issued, including government owned or controlled corporations, the Judiciary,  military/police/uniformed personnel,  and the foreign service, including service attaches.  It shall apply, however, to civilian personnel  occupying positions in the Ministry of National Defense who  are covered by the national position and classification plans.

The Career Executive Service and positions declared as equivalent  shall not be  covered by these measures-

General Approach

1. The results of the latest salary survey conducted by the Ministry of the Budget, Office  of Compensation and Position Classification shall be implemented, so as to narrow the gap between private and public sector compensation.
   
2. Special plans  are being approved, in lieu of the general implementation of Salary Survey results, (a) for agents and positions which have recently received salary adjustments as advance implementation of the Salary Survey results, (b) for agencies  or positions in which unusual circumstances prevail, and (c) for  agencies  or positions which do not follow national compensation and positions classification plan.
   
3. The Minister of the Budget, the Minister of Public Highways and the Minister of Public Works,  Transportation and Communications shall study and recommend on the implementation of the minimum wage  for itemized, positions and for temporary personnel hired for capital projects.

Salary Survey Implementation

4. The salaries of classes/positions in the national compensation and classification plans shall be upgraded to the first step of an increased salary range as follows:
   

   Positions Assigned
   to Salary Range

   
   Increase

      

   35 to 39        
   

   three salary ranges

   40 to 43        
   

   four salary ranges

   44 to 48        
   

   five salary ranges

   49 and above

   six salary ranges

Provided, That this upgrading shall not apply to agencies or positions for which  separate measures are being adopted; Provided, Further, That  differentials in salary steps arising from merit increases  granted under LOI No.  562 shall be maintained; Provided, Finally,  That the salary of an employee who would otherwise receive  an increase of less than one step shall be adjusted by one additional step.

Advance Implementation of Salary Survey Results

5. A one-step salary increase shall be allowed those employees who have already received salary adjustments as advance implementation of the Salary Survey results, or who are covered by special salary plans, except as may be otherwise provided in this Letter or other Directive.
   
6. This one-step increase shall apply to teachers, labor arbiters, motor vehicles registrars, personnel in the airways operations and engineering groups, and other positions whose salaries have been similarly adjusted.
   
7. The  salaries of personnel in agenciss that have special salary plans shall be  increased to the next higher step in the national  salary plan;  Provided,  That one additional step shall be granted personnel who would otherwise receiveless than a f increase.     This rule shall apply to agencies including tne Commission on Elections, the Bureau of Internal Revenue, the Bureau of Customs, the Government Corporate Counsel, the Batasang Pambansa the Office of the Solicitor General, and the national Prosecution Service,  but  shall exclude those positions otherwise covered by separate Directives.

State Universities and Colleges

8. The executive positions in state universities and colleges shall be entitled to a 5% increase, on the basis of actual salaries appearing in the CY 1979 Personal Services Itemization or as duly authorized pursuant to P.D. No. 985.  Teaching positions in state universities and colleges shall be entitled to a one-step increase,  likewise on the basis of the CY 1979 Personal Services Itemization or as duly approved pursuant to P.D. No. 985.  Non-teaching positions in developed-state universities, as defined In Letter of Implementation No. 69, shall be  entitled to 5% increase.   The salaries of non-teaching positions in developing  state universities and in state colleges  shall be  adjusted in accordance with Item No. 4 hereof.

Allowances and Other Compensation

9. No additional compensation shall be paid to any employee of the national government, including those of state universities  and colleges, in the form of incentive pay or allowance, transportation allowance, cost of living allowance, bonus, or other forms  of  additional compensation, except as lay be authorized pursuant to P. D. No, 985, P.D. No. 398  (as amended),  P.D. No. 915, P.D. No. 1571,  P.D. No. 1578, B.P. No. 1, or LOI No. 577.
   
10. The allowances  authorized prior to January 1, 1979 and which were  abolished or reduced by Sec. 20 of B.P. No. 1 shall be reviewed by the Minister of the Budget, who shall recommend on necessary adjustments as measures supplementary to this Letter.

Non-Itemized Positions

11. The compensation of contractual employees may be adjusted only when duly approved under Ministry of the Budget/ Civil Service Commission Joint Circular No. 3.
    
12. Persons holding non-itemized positions which have teen classified under the national compensation and. classification plans  shall be  entitled to the adjustments provided by item No. 4 hereof.

Funding

13. The amounts appropriated for salary increases which incorporated in the budgets of national government offices 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 ministry/bureau/office/ agency or state university or college concerned.  Any remaining deficiency shall be covered by the Salary Adjustment Fund in the CY 1979 General Appropriations Act and from budgetary reserves.

Effective Date

14. The salary increases authorized in this Letter shall take effect on May 1, 1979.

Rules and Regulations

15. The rules and regulations needed to comply with this Letter shall be formulated and issued by the Minister of the Budget.

Done in the City of Manila, this 31st day of March, nineteen hundred and seventy-nine.

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