[ DBM NATIONAL BUDGET CIRCULAR NO. 448 SERIES OF 1996, January 02, 1996 ]
GUIDELINES FOR THE THIRD YEAR IMPLEMENTATION OF THE NEW SALARY SCHEDULE IN THE GOVERNMENT
1. PURPOSE
This Circular is being issued to prescribe rules and regulations to govern the third year implementation of the new salary Schedule in the Government as mandated under Executive Order No. 290, dated January 1, 1996.
2. 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 government financial institutions.
3. EXEMPTIONS
3.1 Officials and employees of agencies that are allowed by law to adopt a Position Classification and Compensation System other than that prescribed in RA 6758 and/or Joint Senate-House of Representatives Resolution No. 1, s. 1994.
3.2 Consultants and experts hired by government entities for a limited period to perform specific activities or services with expected outputs, who will continue to be compensated pursuant to existing applicable laws, rules and regulations until these are revised or amended.
3.3 Student laborers and apprentices and others similarly situated who will continue to be compensated pursuant to existing applicable laws, rules and regulations until these are revised or amended.
3.4 Laborers hired as part of a job contract (pakiao), those paid on piecework basis, including mail contractors, and others similarly situated.
4. 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, 1995, exclusive of Personnel Economic Relief Allowance (PERA), Additional Compensation, representation and transportation allowances, bonus and cash gift, honoraria, the 20% premium over the basic pay of contractual personnel and any other form of compensation usually paid in addition to basic salary.
4.2 Transition allowance shall mean the excess of the present salary over the eight step of the salary grade allocation of the employee s position.
4.3 Over-and-above allowance shall refer to the additional compensation other than the basic salary regularly paid on a monthly basis by the Local Government Units to public school teachers prior to July 1, 1989, and which was added over and above their basic salary.
5. 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 increase herein authorized, the monetary value of each salary step is hereby adjusted effective January 1, 1996, as indicated in the following Third Interim Salary Schedule* (TISS):
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, 1995 (Illustrative Example A)* . However, incumbents of positions which are moved to a higher salary grade allocation under Joint Senate-House of Representatives Resolution No. 1,s. 1994 as adopted under EO No. 164 shall continue to receive the salary rate of their old salary grade allocation as of December 31, 1995.
5.1.3 Incumbents with transition allowance and/or over-and-above allowance shall likewise be entitled to the salary adjustments authorized herein. The excess of their adjusted salaries over the prescribed salary rates shall be treated as advance implementation of the new Salary Schedule contained under Joint Senate-House of Representatives Resolution No. 1, s. 1994 as adopted by EO No. 164 (Illustrative Examples B and C)* . However, in cases where the present salary plus transition allowance of an employee as defined in Item 4 above already exceed the 8th or the maximum step of the salary grade allocation of the position under the new Salary Schedule prescribed in said Joint Resolution No. 1, or when as a consequence of the salary adjustment herein authorized, the adjusted salary rate plus the transition allowance will exceed said 8th or maximum step, the transition allowance shall be deducted from or reduced by the salary adjustment herein authorized. Any excess thereafter shall be deducted from whatever salary adjustments that such employee may be authorized in the future (Illustrative examples D, D-1 and D-2)* .
5.1.4 Appointments effective January 1, 1996 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 a duly approved permanent appointment a salary higher than the first step, he shall be allowed to receive such previous salary rate but not exceeding the maximum of the salary grade allocation of the position that is the same as or higher than that of the former position. Otherwise, only the first step shall be allowed.
5.1.5 Notwithstanding the salary increase authorized in this Circular, there shall be no increase in the present rates of allowances and benefits of officials and employees of government -owned and/or -controlled corporations (GOCCs) and Government Financial Institutions (GFIs) which are based on a percentage of their basic salaries such as representation and/or transportation allowances (RATA), Provident fund and other similar personnel benefits. However, contributions to the GSIS Retirement and Life Insurance premium and the Employees Compensation Insurance Premium (ECIP) are not covered by this Section.
5.1.6 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 TISS.
5.1.7 Contractual employees whose salaries are paid out of lump-sum appropriations or project funds may be entitled to a premium of not more than 20% of the adjusted minimum hiring rate of comparable regular positions (Illustrative Example E)* .
5.1.8 The Wage Rates of daily paid employees shall be computed by dividing the monthly salary rate shown in the TISS 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.
5.1.9 The rates contained in the TISS shall be used as basis for computing retirement pay, year-end bonus and other similar benefits.
5.1.10 In accordance with section 10, Article VI and Section 6, Article VII of the Constitution, the salary adjustment of the President, the Vice President, Senators and the members of the House of Representatives shall take effect only on July 1, 1998.
5.2 For Uniformed Personnel
The Uniformed Personnel of the Department of National Defense (DND) and the Department of the Interior Local Government (DILG) and the Commissioned Officers and Enlisted Personnel of the National Mapping and resource Information Authority (NAMRIA) shall be paid in accordance with the following Salary Schedule:
6. PROHIBITION
Unless allowed by law, order and other administrative authorization, heads of all national government agencies and corporate entities are prohibited from granting any adjustment in excess of the amounts herein authorized.
7. FUNDING SOURCE
The funding sources for the amounts necessary to implement the TISS shall be as follows:
7.1 For National Government Agencies, the amount shall be charged against the Compensation Adjustment Fund and such other appropriations set aside for the purpose under RA 8174, the FY 1996 General Appropriations Act. Any deficiency shall be charged against savings in agency appropriations.
7.2 For GOCCs and GFIs, the amount shall come from their respective corporate funds. GOCCs and GFIs 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 or financial institution.
8. RELEASE OF FUNDS
The DBM shall release the covering Notice of Cash Allocation (NCA) needed to implement the salary adjustment in accordance with the provisions of National Budget Circular No. 437, dated January 2, 1995.
9. 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 agency shall notify the official/employee of salary adjustments 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 positions, 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 hereof. A copy of the Notice shall be furnished the GSIS if the beneficiaries are members thereof .
10. POST-AUDIT
10.1 All agencies shall prepare for the purpose of this Circular, a Tally of Positions by Salary Grade (TPSG) of filled positions as prescribed in Annex C* . A separate TPSG shall be prepared for contractual, casual and emergency positions.
10.2 The original and three (3)copies of each of the said TPSG 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 Compensation and Position Classification Bureau (CPCB), Regional Coordination Service (RCS) or to the appropriate Regional Office of the DBM, in the case of regionalized offices. The CPCB, RCS or the DBM Regional Office concerned shall examine and verify the said TPSG based on its records and certify them accordingly. The certified copies shall then be distributed as follows:
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. 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. SAVING CLAUSE
Cases not covered by the provisions of this Circular shall be referred to the Secretary of Budget and Management for resolution.
14. EFFECTIVITY
This Circular shall take effect January 1, 1996.
Adopted: 2 Jan. 1996
* Text available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.
This Circular is being issued to prescribe rules and regulations to govern the third year implementation of the new salary Schedule in the Government as mandated under Executive Order No. 290, dated January 1, 1996.
2. 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 government financial institutions.
3. EXEMPTIONS
3.1 Officials and employees of agencies that are allowed by law to adopt a Position Classification and Compensation System other than that prescribed in RA 6758 and/or Joint Senate-House of Representatives Resolution No. 1, s. 1994.
3.2 Consultants and experts hired by government entities for a limited period to perform specific activities or services with expected outputs, who will continue to be compensated pursuant to existing applicable laws, rules and regulations until these are revised or amended.
3.3 Student laborers and apprentices and others similarly situated who will continue to be compensated pursuant to existing applicable laws, rules and regulations until these are revised or amended.
3.4 Laborers hired as part of a job contract (pakiao), those paid on piecework basis, including mail contractors, and others similarly situated.
4. 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, 1995, exclusive of Personnel Economic Relief Allowance (PERA), Additional Compensation, representation and transportation allowances, bonus and cash gift, honoraria, the 20% premium over the basic pay of contractual personnel and any other form of compensation usually paid in addition to basic salary.
4.2 Transition allowance shall mean the excess of the present salary over the eight step of the salary grade allocation of the employee s position.
4.3 Over-and-above allowance shall refer to the additional compensation other than the basic salary regularly paid on a monthly basis by the Local Government Units to public school teachers prior to July 1, 1989, and which was added over and above their basic salary.
5. 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 increase herein authorized, the monetary value of each salary step is hereby adjusted effective January 1, 1996, as indicated in the following Third Interim Salary Schedule* (TISS):
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, 1995 (Illustrative Example A)* . However, incumbents of positions which are moved to a higher salary grade allocation under Joint Senate-House of Representatives Resolution No. 1,s. 1994 as adopted under EO No. 164 shall continue to receive the salary rate of their old salary grade allocation as of December 31, 1995.
5.1.3 Incumbents with transition allowance and/or over-and-above allowance shall likewise be entitled to the salary adjustments authorized herein. The excess of their adjusted salaries over the prescribed salary rates shall be treated as advance implementation of the new Salary Schedule contained under Joint Senate-House of Representatives Resolution No. 1, s. 1994 as adopted by EO No. 164 (Illustrative Examples B and C)* . However, in cases where the present salary plus transition allowance of an employee as defined in Item 4 above already exceed the 8th or the maximum step of the salary grade allocation of the position under the new Salary Schedule prescribed in said Joint Resolution No. 1, or when as a consequence of the salary adjustment herein authorized, the adjusted salary rate plus the transition allowance will exceed said 8th or maximum step, the transition allowance shall be deducted from or reduced by the salary adjustment herein authorized. Any excess thereafter shall be deducted from whatever salary adjustments that such employee may be authorized in the future (Illustrative examples D, D-1 and D-2)* .
5.1.4 Appointments effective January 1, 1996 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 a duly approved permanent appointment a salary higher than the first step, he shall be allowed to receive such previous salary rate but not exceeding the maximum of the salary grade allocation of the position that is the same as or higher than that of the former position. Otherwise, only the first step shall be allowed.
5.1.5 Notwithstanding the salary increase authorized in this Circular, there shall be no increase in the present rates of allowances and benefits of officials and employees of government -owned and/or -controlled corporations (GOCCs) and Government Financial Institutions (GFIs) which are based on a percentage of their basic salaries such as representation and/or transportation allowances (RATA), Provident fund and other similar personnel benefits. However, contributions to the GSIS Retirement and Life Insurance premium and the Employees Compensation Insurance Premium (ECIP) are not covered by this Section.
5.1.6 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 TISS.
5.1.7 Contractual employees whose salaries are paid out of lump-sum appropriations or project funds may be entitled to a premium of not more than 20% of the adjusted minimum hiring rate of comparable regular positions (Illustrative Example E)* .
5.1.8 The Wage Rates of daily paid employees shall be computed by dividing the monthly salary rate shown in the TISS 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.
5.1.9 The rates contained in the TISS shall be used as basis for computing retirement pay, year-end bonus and other similar benefits.
5.1.10 In accordance with section 10, Article VI and Section 6, Article VII of the Constitution, the salary adjustment of the President, the Vice President, Senators and the members of the House of Representatives shall take effect only on July 1, 1998.
5.2 For Uniformed Personnel
The Uniformed Personnel of the Department of National Defense (DND) and the Department of the Interior Local Government (DILG) and the Commissioned Officers and Enlisted Personnel of the National Mapping and resource Information Authority (NAMRIA) shall be paid in accordance with the following Salary Schedule:
6. PROHIBITION
Unless allowed by law, order and other administrative authorization, heads of all national government agencies and corporate entities are prohibited from granting any adjustment in excess of the amounts herein authorized.
7. FUNDING SOURCE
The funding sources for the amounts necessary to implement the TISS shall be as follows:
7.1 For National Government Agencies, the amount shall be charged against the Compensation Adjustment Fund and such other appropriations set aside for the purpose under RA 8174, the FY 1996 General Appropriations Act. Any deficiency shall be charged against savings in agency appropriations.
7.2 For GOCCs and GFIs, the amount shall come from their respective corporate funds. GOCCs and GFIs 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 or financial institution.
8. RELEASE OF FUNDS
The DBM shall release the covering Notice of Cash Allocation (NCA) needed to implement the salary adjustment in accordance with the provisions of National Budget Circular No. 437, dated January 2, 1995.
9. 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 agency shall notify the official/employee of salary adjustments 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 positions, 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 hereof. A copy of the Notice shall be furnished the GSIS if the beneficiaries are members thereof .
10. POST-AUDIT
10.1 All agencies shall prepare for the purpose of this Circular, a Tally of Positions by Salary Grade (TPSG) of filled positions as prescribed in Annex C* . A separate TPSG shall be prepared for contractual, casual and emergency positions.
10.2 The original and three (3)copies of each of the said TPSG 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 Compensation and Position Classification Bureau (CPCB), Regional Coordination Service (RCS) or to the appropriate Regional Office of the DBM, in the case of regionalized offices. The CPCB, RCS or the DBM Regional Office concerned shall examine and verify the said TPSG 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:11. RESPONSIBILITY OF THE HEAD OF AGENCY
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 CPCB, RCS or DBM Regional Office concerned for records, control for records, control and post-audit purposes.
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. 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. SAVING CLAUSE
Cases not covered by the provisions of this Circular shall be referred to the Secretary of Budget and Management for resolution.
14. EFFECTIVITY
This Circular shall take effect January 1, 1996.
Adopted: 2 Jan. 1996
(SGD.) SALVADOR M. ENRIQUEZ, JR.
Secretary
Secretary
* Text available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.