Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Except the Cities of Manila, Baguio and Quezon City, chartered cities are classified according to their revenues as follows:

1. First Class: Those whose total annual revenue during the next preceding fiscal year amounts to one million pesos or more;
   
2. Second Class: Those whose total annual revenue during the next preceding fiscal year amounts to seven hundred thousand pesos but less than one million pesos;
   
3. Third Class: Those whose total annual revenue the next preceding fiscal year amounts to five hundred thousand pesos but less than seven hundred thousand pesos;
   
4. Fourth Class: Those whose total annual revenue during the next preceding fiscal year amounts to three hundred thousand pesos but less than five hundred thousand pesos; and
   
5. Fifth Class: Those whose total annual revenue during the next preceding fiscal year is less than three hundred thousand pesos: Provided, That no readjustment of classification shall be made oftener than once in five consecutive years, except in cases of the diminishing revenue when the President of the Philippines, upon the recommendation of the Office of the Local Governments, may in his discretion, order the readjustment of the classification of any city in accordance with the foregoing schedule: Provided, further, That for each period of five consecutive years from the date the initial classification herein provided takes effect, a general readjustment of the classification of all chartered cities shall be ordered by the President of the Philippines.

SEC. 2. Unless the corresponding charter of a city provides for higher salaries, the annual salaries of city mayors, city treasurers, city fiscals, city auditors, city health officers, city assessors, city engineers, chief of police and chiefs of fire departments, the secretary to the mayor and the secretary of the city council shall not exceed the amounts herein below fixed:

In first class cities: for city mayors, seven thousand two hundred pesos; for city treasurers, judges of the municipal courts, city fiscals, city health officers and city engineers, six thousand pesos; for city assessors and city auditors, five thousand one hundred pesos; for chiefs of police, five thousand one hundred pesos; for chiefs of fire departments, four thousand two hundred pesos; secretary to the mayor and secretary of the city council, three thousand six hundred pesos.

In second class cities: for city mayors, six thousand sis hundred pesos; for city treasurers, judges of municipal courts, city fiscals, city health officers and city engineers, five thousand seven hundred pesos; for city assessors and city auditors, four thousand eight hundred pesos; for chiefs of police, four thousand eight hundred pesos; for chiefs of Tire departments, three thousand six hundred pesos; the secretary to the mayor and secretary of the city council, three thousand pesos.

In third class cities: for city mayors, six thousand pesos; for city treasurers, judges of the municipal courts, city fiscals, city health, officers and city engineers, five thousand one hundred pesos; for city assessors and city auditors, four thousand five hundred pesos; for chiefs of police, four thousand five hundred pesos; for chiefs of fire departments, three thousand three hundred pesos; the secretary to the mayor and secretary of the city council, two thousand seven hundred pesos.

In fourth class cities: for city mayors, five thousand four hundred pesos; for city treasurers, judges of the municipal courts, city fiscals, city health officers and city engineers, four thousand eight hundred pesos; for city assessors and city auditors, three thousand nine hundred pesos; for chiefs of police, three thousand nine hundred pesos; for chiefs of fire departments, three thousand one hundred twenty-pesos; the secretary to the mayor and secretary of the city council, two thousand four hundred pesos.

In fifth class cities: for city mayors, four thousand eight hundred pesos; for city treasurers, judges of municipal courts, city fiscals, city health officers and city engineers, four thousand two hundred pesos; for city assessors and city auditors, three thousand seven hundred twenty pesos; for chiefs of police, three thousand seven hundred twenty pesos; for chiefs of fire departments, three thousand pesos;  secretary to the mayor and secretary of the city council, one thousand eight hundred pesos. Provided, That if, after the salary of the city mayor or any the city officials named in this Act has been increased by virtue of the provisions hereof, the city concerned incurs an overdraft in its general fund or the operating expenses thereof exceed the revenue collections, the municipal board or city council may, in its discretion, make the corresponding proportional reduction of salaries or the President of the Philippines shall reduce the salary of said mayor or other officials to the maximum rate fixed for the corresponding officials in the next lower class of city.

SEC. 3. Unless the corresponding charter of a city provides for a fixed salary or a higher per diem, the members of municipal boards or city councils who are not officers or employees of the Government receiving fixed compensation or salary from public funds, shall receive, for each day of actual attendance of the session of the board or council such per diems as may be fixed by the board or council as follows;

In first and second class chartered cities, not exceeding twenty pesos:

In third and fourth class chartered cities, not exceeding fifteen pesos;

In fifth class chartered cities, not exceeding ten pesos: Provided, That any provisions of existing law to the contrary notwithstanding, and unless the Office of the Local Governments orders otherwise, the municipal board or city council of any city, except Manila and Quezon City, shall hold one regular session for the transaction of business during each week on a day which will be fixed by the board or council and such special sessions, not exceeding thirty during any one year, as may be called by the mayor: Provided, further, That in case the city incurs an overdraft in its general funds or the operating expenses thereof exceed the revenue collections, the President of the Philippines shall reduce the per diem fixed as herein provided to such amount as its finances permit: Provided, finally, That the rate or amount so fixed shall not be changed by the board or council without the approval of the President.

SEC. 4. Unless the corresponding city charter provides for a higher rate of additional compensation in cases where the charter of a city provides for ex-officio officials, such officials, except the ex-officio city councilors, shall receive additional compensation which shall not exceed the following:

In first and second class cities: for city engineers and city fiscals, one thousand six hundred pesos; and for city auditors, city health officers, city assessors and superintendents of city schools, one thousand two hundred pesos per annum;

In third and fourth class cities: for city engineers and city fiscals, one thousand two hundred pesos; and for city auditors, city health officers, city assessors and superintendents of city schools, eight hundred pesos per annum;

In fifth class cities: for city engineers and city fiscals, eight hundred pesos; and for city auditors, city health officers, city assessors and superintendents of city schools, six hundred pesos per annum.

SEC. 5. The above schedule of salaries shall not be applicable to cities created during the year nineteen hundred and fifty-one within a period of two years after the approval of this Act.

SEC. 6. All acts, orders and/or regulations inconsistent herewith are repealed or modified accordingly.

SEC. 7. This Act shall take effect on July one, nineteen hundred and fifty-two.

Approved, April 7, 1953.