WHEREAS, Article IX-B, Section 5 of the Constitution mandates Congress to provide for the standardization of compensation of government officials and employees;

WHEREAS, RA 6758 was enacted in compliance with the constitutional mandate for standardization of compensation in the government;

WHEREAS, the unified Position Classification and Compensation System established under RA 6758 applies to all positions in the government whether appointive or elective, on full-time or part-time basis;

WHEREAS, local government units, defined under Art. X of the 1987 Constitution as the territorial and political subdivisions of the State refer to Provinces, Cities, Municipalities and Barangays;

NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and direct:

SECTION 1. Compensation in the Barangay. - The Barangay as a political subdivision of the state shall henceforth be included in the unified position classification and compensation system of the government.

SECTION 2. Compensation Adjustments. - Compensation adjustments authorized by Congress and/or the President for government personnel shall also apply to the barangay personnel subject to the rules, policies and guidelines to be issued on the matter.

SECTION 3. Implementation. - The Department of Budget and Management as administrator of the unified Position Classification and Compensation System is hereby directed to issue rules and regulations relative to position classification and compensation of barangay personnel.

SECTION 4. Funding Source. - The amount necessary to implement the position classification and compensation system in the barangay shall be taken from barangay funds, subject to the budgetary requirement and limitations as provided for by law.

SECTION 5. Effectivity. - This Executive Order shall take effect immediately.

Adopted: 16 May 1996


By the President:

(SGD.) RUBEN D. TORRES
Executive Secretary