1.0       PURPOSE

This Circular is being issued to prescribe rules and regulations to govern the implementation of new salary schedules in the Government under paragraphs 5.1.1 and 5.2 hereof as mandated under Executive Order (EO) No. 219 dated March 20, 2000, providing for 10% salary adjustment over the monthly basic salaries as of December 31, 1999 of government personnel, effective January 1, 2000.

2.0       COVERAGE

All positions whether permanent, temporary, contractual, casual or emergency in nature, appointive or elective, on full-time or part-time basis now existing or hereafter created in the national government, state universities and colleges and government-owned and/or controlled corporations and financial institutions.

3.0       EXEMPTIONS

3.1       Officials and employees of agencies which are exempt from the coverage of the Position Classification and Compensation System and/or do not follow the Salary Schedule prescribed for government employees.

3.2       Uniformed Personnel of the Philippine National Police.

4.0       DEFINITION OF TERMS

4.1       The present salary of an incumbent for purposes of this Circular shall mean the actual basic salary rate received as of December 31, 1999, exclusive of Personnel Economic Relief Allowance (PERA), Additional Compensation, Representation and Transportation Allowances, bonus and cash gift, honorarium, the 20% premium over basic pay of contractual personnel and any other forms of additional compensation usually paid in addition to basic salary but inclusive of transition allowance.

4.2       Transition allowance shall mean the excess of the present salary over the eighth step of the grade allocation of the employee ™s position.

5.0       COMPENSATION RULES

5.1       For Civilian Personnel

5.1.1 The salary grades in the Salary Schedule prescribed under RA 6758 and the corresponding salary grade allocation of positions pursuant thereto shall be maintained. For purposes of the salary adjustment herein authorized, the monetary value of each salary step is hereby adjusted effective January 1, 2000, as indicated in the following Salary Schedule:

Salary Schedule for Civilian Personnel Effective January 1, 2000
SG	STEP 1	STEP 2	STEP 3	STEP 4	STEP 5	STEP 6	STEP 7	STEP 8	SG
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1	4,840	4,961	5,085	5,212	5,343	5,476	5,613	5,753	1
2	5,276	5,408	5,543	5,682	5,823	5,969	6,119	6,271	2
3	5,751	5,894	6,041	6,193	6,347	6,507	6,668	6,835	3
4	6,211	6,366	6,525	6,688	6,855	7,027	7,202	7,382	4
5	6,708	6,875	7,047	7,223	7,404	7,589	7,778	7,973	5
6	7,244	7,425	7,611	7,801	7,996	8,196	8,401	8,611	6
7	7,751	7,944	8,143	8,347	8,556	8,769	8,989	9,214	7
8	8,294	8,501	8,713	8,931	9,154	9,383	9,618	9,858	8
9	8,874	9,096	9,324	9,557	9,796	10,040	10,292	10,548	9
10	9,466	9,703	9,945	10,194	10,449	10,710	10,978	11,252	10
11	10,033	10,294	10,541	10,804	11,075	11,352	11,636	11,928	11
12	10,635	10,901	11,174	11,453	11,739	12,033	12,333	12,642	12
13	11,273	11,556	11,844	12,140	12,443	12,755	13,074	13,400	13
14	11,949	12,249	12,554	12,869	13,190	13,520	13,858	14,204	14
15	12,667	12,983	13,308	13,640	13,991	14,331	14,699	15,057	15
16	13,427	13,762	14,108	14,480	14,820	15,191	15,571	15,980	16
17	14,232	14,588	14,952	15,326	15,710	16,103	16,506	16,918	17
18	15,087	15,464	15,850	16,247	16,653	17,069	17,496	17,933	18
19	15,992	16,391	16,801	17,222	17,652	18,093	18,546	19,009	19
20	16,951	17,375	17,809	18,255	18,711	19,179	19,658	20,150	20
21	17,629	18,070	18,522	18,985	19,459	19,945	20,445	20,955	21
22	18,334	18,792	19,262	19,744	20,238	20,744	21,262	21,793	22
23	19,067	19,544	20,033	20,534	21,046	21,573	22,112	22,666	23
24	19,831	20,327	20,835	21,355	21,890	22,437	22,998	23,573	24
25	20,624	21,140	21,668	22,210	22,765	23,334	23,917	24,516	25
26	21,449	21,985	22,535	23,098	23,675	24,267	24,874	25,496	26
27	22,307	22,865	23,437	24,022	24,622	25,238	25,869	26,516	27
28	23,199	23,779	24,374	24,983	25,607	26,247	26,904	27,576	28
29	24,127	24,730	25,348	25,982	26,632	27,298	27,980	28,679	29
30	27,500	28,188	28,893	29,614	30,355	31,891	32,689	31,114	30
31	38,500	39,463	40,449	41,460	42,496	43,559	44,648	45,764	31
32	44,000	45,100	46,228	47,384	48,568	49,782	51,027	52,302	32
33	55,000								33

5.1.2 Incumbents shall receive the salary rates corresponding to their designated salary steps in the salary grade allocation of their positions as of December 31, 1999.

5.1.3 The transition allowance shall be considered as advance entitlement of the salary increase herein authorized. Any excess thereafter shall be deducted from whatever salary adjustments that such employee may be authorized in the future (Illustrative Examples A and A-1).

5.1.4 Appointments effective January 1, 2000 and thereafter shall be at the first step of the salary grade allocation of the position prescribed under Item 5.1.1 hereof. In case the appointee has previously received under an approved permanent appointment, a salary higher than the first step of the salary grade allocation, the existing salary rules shall apply as contained in Annex C of NBC 458.

5.1.5 The Personnel Economic Relief Allowance and Additional Compensation shall continue to be paid as allowances and are not considered integrated into the basic salary rates contained in the new Salary Schedule and therefore not subject to tax pursuant to Section 4 of Executive Order (EO) No. 219.

5.1.6 Contractual employees including seconded personnel to Foreign-Assisted Projects (FAPs) whose salaries are paid out of lump-sum appropriations or project funds shall be entitled to salary adjustment corresponding to their comparable regular provisions of RA 8760, the FY 2000 GAA and Section 2.1.1 of CSC-DBM Joint Circular No. 99-7, dated December 29, 1999, contractual personnel shall no longer be entitled to the 20% premium over the basic pay.

5.1.7 The Wage Rates of daily paid employees shall be computed by dividing the monthly salary rate shown in the Salary Schedule indicated under Item 5.1.1 hereof by twenty-two (22) working days, provided that the total wages received by a daily paid employee in a month shall not exceed said monthly salary rate.

5.1.8 The appropriate rates contained in the said Salary Schedule as the case maybe, shall be used as basis for computing retirement pay, year-end bonus and other similar benefits.

5.2       For Uniformed Personnel. The uniformed personnel of the Department of National Defense, the Bureau of Jail Management and Penology, Bureau of Fire Protection, Philippine Coast Guard and the Commissioned Officers and Enlisted Personnel of the NAMRIA shall be paid in accordance with the following Salary Schedule:

Salary Schedule for Uniformed Personnel Except PNP Effective January 1, 2000
AFP/PCG	BFP/BJMP/PPSC	NAMRIA Commissioned Officers and Enlisted Personnel	Base Pay

Enlisted Ranks					4,400
Candidate Soldier	Fire/Jail Officer I		Seaman, 1st Class		5,500
Private	Fire/Jail Officer II		Seaman, 2nd Class		5,830
Private, First Class	Fire/Jail Officer III		Seaman, 1st Class		6,160
Corporal
Non-Commissioned Officers
Sergeant	Senior Fire/Jail Officer I		Petty Officer III		7,040
Staff Sergeant	Senior Fire/Jail Officer II		Petty Office II		7,480
Technical Sergeant	Senior Fire/Jail Officer III		Petty Officer I		8,470
Master Sergeant	Senior Fire/Jail Officer IV		Chief Petty Officer		9,350
Sr. Master Sergeant					10,148
Chief Master Sergeant					10,945
Company Grade Officers
Cadet	Cadet				10,780
Prob. 2nd Lieutenant					11,660
Second Lieutenant			Ensign		12,540
First Lieutenant Inspector			Lieutenant, Jr. Grade		13,200
Captain	Senior Inspector		Lieutenant, Sr. Grade		13,640
Field Grade Officers
Major	Chief Inspector		Lt. Commander		14,190
Lieutenant Colonel	Superintendent		Commander		14,740
Colonel	Senior Superintendent		Captain		15,400
General Officers
Brigadier General	Chief Superintendent		Commodore		16,280
Major General	Director				16,830
Lieutenant General					17,710
General					18,260

The Uniformed Personnel of the Philippine National Police shall be paid in accordance with the provisions of Republic Act (RA) No. 8551 and RA No. 8760, the FY 2000 GAA and the implementing guidelines issued therefor.

6.0       PROHIBITION

6.1       Heads of all national government agencies and corporate entities are prohibited from granting any adjustment in excess of the amounts herein authorized.

6.2       In accordance with Section 6, Article VII and Section 10, Article VI of the Constitution, the salary adjustment of the President, the Vice-President, and the Members of the House of Representatives shall take effect only after the expiration of their respective present terms, and with the Senators, only after the expiration of the term of all the incumbent Senators.

7.0       FUNDING SOURCE

The funding sources for the amounts necessary to implement the new Salary Schedule shall be as follows:

7.1       For national government agencies, the amount shall be charged against their savings and from the Salary Adjustment Fund under RA 8760, the 2000 General Appropriations Act.

7.1.1 Agencies with fiscal autonomy are enjoined to fund their salary adjustment within the PS funds released to them pursuant to National Budget Circular No. 466 dated December 17, 1999.

7.1.2 The requirements for non-permanent employees including contractual positions in FAPs shall be sourced from their respective lump sum appropriations for salaries/wages reflected in the agency budget.

7.2       For government corporations and financial institutions, the amount shall come from their respective corporate funds. Government corporations which do not have adequate or sufficient funds shall only partially implement the established rates, provided, that any partial implementation shall be uniform and proportionate for all positions in each government corporation.

8.0       RELEASE OF FUNDS

8.1       The Department of Budget and Management (DBM) shall release the covering Notice of Cash Allocation (NCA) needed to implement the salary adjustment for permanent employees.

8.2       Requests for additional release for non-permanent positions except contractual positions in FAPs shall not be allowed. The cost to implement their salary adjustment shall be solely charged from their respective released lump sum appropriations.

9.0       PAYMENT OF SALARY ADJUSTMENT

9.1       Upon receipt of the NCA, agencies shall pay the required salary adjustment authorized herein.

9.2       Any salary adjustment under this Circular shall be subject to appropriate adjustments if found not in order upon review by DBM.

9.3       The Head of the agency shall notify the official/employee of any salary adjustment in accordance with this Circular through a Notice of Salary Adjustment (For individuals, ANNEX A *). A copy of this notice shall be furnished the GSIS, if the official/employee is a member thereof.

9.4       For officials/employees covered by similar information, such as classification of position, salary grade, present salary and adjusted salary, a Notice of Salary Adjustment (For Groups, Annex B *) shall be issued in lieu of the form prescribed in Section 9.3.A copy of the Notice shall be furnished the GSIS if the beneficiaries are members thereof.

10.0    POST-AUDIT

10.1    All Government Owned and/or -Controlled Corporations/Government Financial Institutions shall prepare for the purpose of the Circular, a Plantilla of Personnel and Salary Adjustment Form (PPSAF) as prescribed in Annex C^[*] . A separate PPSAF shall be prepared for contractual, casual and emergency positions.

10.2    The original and three (3) copies of each of the said PPSAF which shall be certified correct by the Human Resource Management Officer/Administrative Officer and approved by the Head of the government agency shall be submitted for post-audit within thirty (30) days after the grant of the salary adjustment to the Budget and Management Bureau œD  (BMB œD ), DBM which shall examine and verify the said PPSAF based on its records and certify them accordingly. The certified copies shall then be distributed as follows:

10.2.1      one copy to the Civil Service Commission Regional Office and Field Office concerned;

10.2.2      one copy to the Commission on Audit, for compliance with auditing requirements;

10.2.3      one copy to the Office of origin; and

10.2.4      the original shall remain with the BMB œD  for records, control and post-audit purposes.

11.0    RESPONSIBILITY OF THE HEAD OF AGENCY

The Head of agency shall be responsible for the submission of the required reports. He shall be held personally liable for any payment of salary adjustment not in accordance with the provisions of the Circular, without prejudice however, to the refund of any excess payment by the employee concerned.

12.0    CONTRIBUTIONS

The salary adjustments herein authorized are subject to the mandatory requirements of GSIS life and retirement insurance premiums, and Home Development Mutual Fund (HDMF) contribution, if the recipient is a member of the GSIS and HDMF, pursuant to RA 660 and CA 186 with respect to retirement and life insurance premiums.

13.0    SAVING CLAUSE

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

14.0    EFFECTIVITY

This Circular shall take effect January 1, 2000.

Adopted: 21 March 2000

(SGD.) BENJAMIN E. DIOKNO
Secretary

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^[*] Annexes are Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City)