1.0       Purpose

This Circular is being issued to prescribe rules and regulations to govern the initial implementation of the new salary structure for the officers and enlisted personnel of the Philippine National Police pursuant to Section 36 of Republic Act (RA) No. 8551 otherwise known as the PNP Reform and Reorganization Act and Republic Act No. 8760, the General Appropriations Act (GAA), FY 2000.

2.0       Coverage

This Circular shall cover all officers and enlisted personnel of the PNP.

3.0       Policy Statements

3.1       Section 36 of RA 8551 provides that the lowest rank of Police Officer (PO) shall have the same salary grade level as that of a public school teacher which is assigned Salary Grade (SG) 10 under the Salary Standardization Law (SSL).

3.2       Executive order (EO) 107 dated June 10, 1999 supplementing RA 8551 provides for the equivalent SGs of each rank in the PNP hierarchy where the lowest SG is at SG-10 for a PO I.

3.3       Under RA No. 8760 or the FY 2000 GAA, the amount of two billion nine hundred fifty-six million pesos (P2,956,000,000) is appropriated for the initial implementation of the new salary structure for the officers and enlisted personnel of the PNP which is equivalent to thirty percent (30%) of the increment cost required to fully implement this salary structure, based on the Salary Schedule under Joint Senate-House of representatives Resolution No. 1, s. 1994.

4.0       Implementing Rules

4.1       The present base pay of an officer and enlisted personnel of the PNP for purpose of this Circular shall mean the basic pay received as of December 31, 1999 as prescribed under œAnnex E  of National Budget Circular (NBC) 458 series of 1997, corresponding to their designated ranks.

4.2       The base pay of the officers and enlisted personnel of the PNP shall be adjusted effective January 1, 2000 in accordance with the rates prescribed in the First Interim Salary Schedule hereto attached and marked as Annex A (Available at Office of the National Administrative Register, U.P. Law Center, Diliman, Quezon City) of this Circular.

4.3       The rates contained in Said Salary Schedule shall be used as basis for computing longevity pay, year-end bonus and retirement benefits. The existing rates of other allowances and collateral benefits shall be maintained.

5.0       Prohibition

Unless allowed by law and/or order, the Secretary of the Department of the Interior and Local Government is prohibited from granting any adjustment in excess of the amounts herein authorized.

6.0       Funding Source

The amount necessary to initially implement the new salary schedule shall be charged against the P2,956,000,000 Billion appropriated for the purpose under RA No. 8760 or the FY 2000 GAA.

7.0       Responsibility

The PNP Chief shall be held personally liable for any payment of salary adjustment not in accordance with the provisions of this Circular, without prejudice however, to the refund of any excess payment by the personnel concerned.

8.0       Saving Clause

Cases not covered by the provisions of this Circular shall be referred to the Secretary of Budget and Management for resolution.

9.0       Effectivity

This Circular shall take effect January 1, 2000.

Adopted: 01 March 2000

(SGD.) BENJAMIN E. DIOKNO
Secretary