[ DBM NATIONAL COMPENSATION CIRCULAR NO. 74, January 02, 1995 ]
GUIDELINES FOR THE SECOND YEAR IMPLEMENTATION OF THE NEW SALARY SCHEDULE IN THE GOVERNMENT
Purpose
This Circular is being issued to prescribe rules and regulations to govern the second year implementation of the new salary schedule in the Government as mandated under Executive Order No. 218, dated January 1, 1995, providing for one thousand peso (P1,000) increase over the monthly basic salaries as of December 31, 1994 of government personnel, effective January 1, 1995.
2.0
Coverage
All positions whether permanent, temporary, contractual, casual or emergency in nature, appointive or elective, in 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 Position Classification and Compensation System and/or do not follow the Salary Schedule prescribed for government employees.
3.2 Consultants and experts hired by government entitled 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 or contract (pakiao), those paid on piecework basis, including mail contractors, and other 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 forms of additional 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 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 LGUs to public school teachers prior to July 1, 1989, and which was added over and above their basic salary.
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 increase herein authorized, the monetary value of each salary step is hereby adjusted effective January 1, 1995, as indicated in the following Interim Salary Schedule* . |
| 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. Likewise, incumbents of positions which were moved to a higher salary grade allocation under Joint Senate and 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, 1994. |
| 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 salary over the prescribed salary rates shall be treated as advance implementation of the Salary Schedule contained under Joint Senate and House Representatives Resolution No. 1, s. 1994 as adopted by EO No. 164 (Illustrative Example A). |
| 5.1.4 | Appointments effective January 1, 1995 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. |
| 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 Interim Salary Schedule. |
| 5.1.6 | 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. |
| 5.1.7 | The Wage Rates of daily paid employees shall be computed by dividing the monthly salary rate shown in the Interim 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 rates contained in the Interim Salary Schedule referred to under Item 5.1.1 hereof shall be used as basis for computing retirement pay, year-end bonus and other similar benefits. |
| 5.1.9 | In accordance with Section 6, Article VII and Section 10, Article VI of the Constitution, the salary adjustments 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 term and with the Senators, only after the expiration of the term of all the incumbent Senators. |
5.2 For Uniformed Personnel of the DND and the DILG and the commissioned officers and enlisted personnel of the NAMRIA.
The uniformed personnel of the Department of National Defense, the Department of Interior and Local Government and the Commissioned Officers and Enlisted Personnel of the NAMRIA shall be paid in accordance with the following Salary Schedule* :
6.0
Prohibition
Heads of all national government agencies and corporate entities are prohibited from granting any adjustment in excess of the amounts herein authorized.
7.0
Funding Source
The funding sources for the amounts necessary to implement the Interim Salary Schedule 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 7845, the 1995 General Appropriations Act. Any deficiency shall be charged against savings in agency appropriations.
7.2 For government corporations, 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
The Department of Budget and Management (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.
9.0
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
Post-Audit
10.1 All agencies shall prepare for the purpose of this 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 Compensation and Position Classification Bureau (CPCB), DBM or to the appropriate DBM Regional Office, in the case of regionalized offices. CPCB or the DBM Regional Office concerned 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 CPCB or DBM Regional Office concerned 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 this 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, of 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, 1995.
Adopted: 2 Jan. 1995
Acting Secretary
* See Appendix A, page 202 for the Salary Schedule.
* See Appendix B, page 203 for the Salary Schedule.
* Text available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.
. Text available upon request at Office of the National Administrative Register, U.P. Law Center, Diliman, Q.C.