WHEREAS, the Government fully appreciates the heroism and sacrifices of the members of the Armed Forces of the Philippines (AFP) who are directly involved in combat operations to preserve the internal security of the country;

WHEREAS, the Government recognizes that the effectiveness of these frontline soldiers in the pursuit of their mandated tasks is largely dependent on a host of factors which include, among others, the adequacy of their compensation and benefits;

WHEREAS, in acknowledgement of this reality, it is the policy of the Government to provide, within its fiscal means, such deserving members of the armed forces a more rational collateral pay for combat duties;

WHEREAS, the Government recognizes that the attainment of socio-economic and political reforms only becomes possible under conditions of secure and stable environment.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1.  Combat Incentive Pay - Members of the Armed Forces of the Philippines who figure directly in actual combat against members of the various insurgent, terrorist and lawless groups shall be entitled to an additional combat incentive pay of Php150.00 per day while actually engaged in combat operation effective July 1, 2007. This collateral pay shall be over and above the Php240.00 per month that members of the Armed Forces of the Philippines assigned in field units are currently entitled to for combat duties.

SECTION 2. Specific Guidelines - The grant of the collateral pay shall be subject to conditions as follows:

a. The operation must be for a specific combat mission that is duly covered by an Operations Order (OPORD) or a Fragmentary Order (FRAG-O);

b. The personnel involved in combat engagements must be in the published task organization of the OPORD; and

c. The total additional combat incentive pay for each individual shall not exceed Php 1,500.00 per OPORD/FRAG-O.

SECTION 3. Funding - The Initial funding of Seventy Three Million (Php73,000,000.00) Pesos necessary to implement this Executive Order shall be drawn from the President ™s Social Fund (PSF) subject to established accounting and auditing rules and regulations. Any additional funding requirement for fiscal years 2007 and 2008 shall be determined in coordination with the Department of Budget and Management (DBM) and shall be submitted to the Office of the President for approval. Thereafter, appropriations starting fiscal year 2009 shall be incorporated in the General Appropriations Act.

SECTION 4. Implementing Guidelines - The Department of National Defense shall prepare and issue the necessary guidelines for the implementation of this Executive Order.

SECTION 5. Repeal - All executive orders, rules and regulations, and other or parts thereof, which are inconsistent with this Executive Order, are hereby revoked, amended, or modified accordingly.

SECTION 6. Effectivity - This Executive Order shall take effect fifteen (15) days after its publication in a national newspaper of general circulation.

Adopted: 06 Sept. 2007


(SGD.) GLORIA MACAPAGAL-ARROYO

By the President:

(SGD.) EDUARDO R. ERMITA
Executive Secretary