[ DBM LOCAL BUDGET CIRCULAR NO. 56, January 25, 1995 ]
GUIDELINES FOR THE IMPLEMENTATION OF THE REVISED COMPENSATION AND POSITION CLASSIFICATION SYSTEM (CPS) IN THE LOCAL GOVERNMENT AND OTHER COMPENSATION MATTERS
Purpose
This Circular is being issued to prescribe rules and regulations to govern the second phase of implementation of the Revised Compensation and Position Classification System in the Government as mandated under Executive Order No. 218, providing for the increase of one thousand pesos (P1,000.00) in the basic salaries as of December 31, 1994 of local government personnel effective January 1, 1995 and other compensation matters.
2.0
Coverage
All positions whether permanent, temporary, contractual, casual or emergency in nature, appointive or elective, on full- or part-time basis now existing or hereafter created in the local government units (LGUs).
3.0
Exemptions
3.1. 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.
3.2. 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.
3.3 Laborers hired as part of a job contract (pakiao), those paid on piecework basis, including mail contractors, and others similarly situated.
4.0
Definition of Terms
4.1. The present salary of an incumbent for purposes of this Circular shall mean the actual basic salary rates received as of December 31, 1994 exclusive of Personnel Economic Relief Allowance (PERA), Additional Compensation, representation and transportation allowances, bonus and cash gift, honorarium and any other form of additional compensation.
4.2 Transition allowance shall mean the excess of the present salary over the eight step of the grade allocation of the employee's position.
5.0
Compensation Rules
5.1 The salary grades and the corresponding salary grade allocation in the salary schedule prescribed under RA 6758 shall be maintained. However, the salary rates are hereby adjusted effective January 1, 1995 pursuant to Section 1 of EO No. 218 as indicated in the Interim Salary Schedules in Annexes "A" to "H"* .
5.2 Incumbents shall receive the salary rates corresponding to their designated salary steps in the salary grade allocation of their positions as of December 31, 1994.
5.3 Incumbents with transition allowance shall likewise be entitled to the salary adjustment authorized herein. The excess of their adjusted salary over the prescribed rates shall be treated as advance implementation of the Revised Compensation and Position Classification System under Joint Senate and House Resolution No. 1, s. 1994 (Illustrative Example A).
5.4 Appointments effective January 1, 1995 and thereafter shall be at the first step of the salary grade allocation of the position prescribed under Section 5.1 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.
5.5 The salary adjustment herein authorized as well as the subsequent salary increases shall not apply to the devolved national personnel except as provided for under paragraph 6.0 of this Circular, until the salary rates of their local counterparts have equaled the salary rates of such devolved personnel (Illustrative Example B** ).
5.6 The Personnel Economic Relief Allowance and Additional Compensation shall continue to be paid as allowances and are not considered integrates into the basic salary rates contained in the Interim Salary Schedule.
5.7 Contractual employees whose salaries are paid out of lump sum appropriations or project funds may be entitled to not more than 120% of the adjusted minimum hiring rate of comparable regular positions (Illustrative Example C).
5.8 The Wage Rates of daily paid employees shall be computed by dividing the monthly salary rate shown in the Interim Salary Schedules indicated under Section 5.1 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.
5.9 The rates contained in the Interim Salary Schedules referred to under Section 5.1 hereof shall be used for computing retirement pay, year-end bonus and other similar benefits.
6.0
Applicability to Public Health Workers
6.1 The salary rates of locally-paid public health workers, devolved or otherwise, notwithstanding the income classification of the local government units where they are assigned, shall be as indicated in Annex of the Interim Salary Schedules.
6.2 Local government units which do not have adequate or sufficient funds to pay the salary increases herein authorized shall only partially implement the established rates uniformly and proportionately for their respective health workers without prejudice to such financial assistance as may be availed of from the Department of Health for the differentials in the salary adjustment requirement as mandated under Executive Order No. 215 and Administrative Order No. 170.
7.0
Prohibition
The Local Chief Executive/Sangguniang Panlalawigan/Panlungsod/Bayan are prohibited from granting any adjustment in excess of the amounts herein authorized.
8.0
Funding Source
8.1 The amount necessary for the implementation of the second phase of the revised compensation and position classification system shall come from the respective funds of the local government units.
8.2 Said amount shall be provided for in an appropriation ordinance to be enacted by the local Sangguniang Panlalawigan/Panlungsod/Bayan.
8.3 In the event that local funds will not be sufficient, implementation of salary increases under this Circular shall be partial and proportionate for all positions in the local government unit. The salary increase shall be fixed at a uniform rate/amount such that no official or employee shall receive a salary increase higher than that of any other employee in the same local government unit, subject to the provisions of Section 5.5 hereof.
9.0
Responsibility of Head of Local Government Units
The Provincial Governor, City or Municipal Mayor concerned 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 employee concerned.
10.0
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.
11.0
Adoption of Higher Salary Schedule
In line with the second paragraph of item (5) of Joint Resolution No. 1 s. 1994, of the Senate and the House of Representatives, LGUs lower than special cities and first class provinces and cities, may adopt the salary schedule for higher class LGUs subject to the following conditions/limitations:
11.1 That the LGU is financially capable;
11.2 That the salary schedule to be adopted shall be uniformly applied to all positions in the LGU concerned;
11.3 The salary schedule for the Special and Highly Urbanized Cities and first class Provinces and Cities shall not be higher than that being adopted by the national government;
11.4 In implementing a new and higher salary schedule, the salary grade allocation of positions and the salary steps of personnel shall be retained (Illustrative Example D);
11.5 That the adoption of the higher salary schedule shall be subject to the budgetary and general limitations on Personal Services Expenditures mandated under Sections 324 and 325 of RA 7160 (Illustrative Example D);
11.6 That in the case of component cities and municipalities, the salary schedule to be adopted shall not be higher than that of the Province or City in the case of some municipalities, where they belong (Illustrative Example E); and
11.7 That the adoption of a higher salary schedule shall not in any manner alter the existing classification of the LGU concerned.
12.0
Prohibition for Retroactive Salary Adjustment
In consonance with the provision of Section 325(g) of RA 7160, LGUs which cannot implement the herein salary adjustment in the current year are precluded from implementing the same retroactively in future years.
13.0
Uniform/Clothing Allowance
The Local Chief Executive, with the approval of the Sanggunian, may grant uniform/clothing allowance to local government officials and employees at rates not exceeding P1,500.00 each per annum, provided that said allowance shall be in lieu of any similar grant, in cash or in kind, of the same amount or value, to employees.
14.0
Saving Clause
Cases not covered by the provisions of this Circular shall be referred to the Secretary of Budget and Management for resolution.
15.0
Effectivity
This Circular shall take effect January 1, 1995.
Adopted: 25 Jan. 1995
(SGD.) SALVADOR M. ENRIQUEZ, JR.
Secretary
Illustrative Example A
Computing the Adjusted Salary of Employees with Transition Allowance and the Advance Partial Implementation of the Revised Compensation and Position Classification System
Actual Basic Salary as of December 31, 1994 of a SG-10 employee Add: Increase per EO No. 218 Total Adjusted Salary as of January 1, 1995 Less: Excess considered as advance partial implementation of the revised CPCS
Illustrative Example B*
(Computation of Adjusted Salary of Devolved Personnel)
Illustrative Example C
Computing the Salary Adjustment of Contractual Personnel
Add: Twenty per cent premium Adjusted maximum contractual rate as of January 1, 1995
Illustrative Example E
A 4th class city located in a 2nd class province, depending on it financial capability may adopt the salary schedule not higher than that of a 2nd class province/city. If the city decides to adopt the salary schedule of a 2nd class province/city, the salary adjustment of a Clerk IV of the city shall be computed as follows:
Salary as of December 31, 1994 (1st step SG-8, 4th class city) Increase under EO 218 Adjusted salary 1-1-95 Salary rate under this Circular (1st step SG-8, 2nd class city) Adjusted salary 1-1-95 Additional adjustment subject to PS limitation
* See Appendix 8, page 353.