WHEREAS, paragraph 5, Article IV, Part III of the Integrated Reorganization Plan (IRP), as amended, mandated the Career Executive Service Board (CESB) as the governing body of the Career Executive Service (CES), to promulgate rules, standards and procedures on the selection, classification, compensation and career development of members of the CES;

WHEREAS, Presidential Decree No. 847 dated December 16, 1975 laid down the policies on compensation in the CES providing, among others, that the salaries of Career Executive Service Officers (CESOs) shall start at step 2 of the corresponding salary grade attached to their CES rank while those incumbents of CES positions who are not CESOs shall start at Step 1 of the corresponding salary grade attached to their positions;

WHEREAS, Item 3, CESB Circular No. 12, s. 1996, provides œa CESO whose salary at the time of the issuance of CSC Resolution No. 94-5840 is already on the second or higher step of the salary grade of his rank by virtue of step increments earlier granted based either on merit or length of service, shall be entitled to a one-step adjustment in salary grade of his rank effective 26 November 7994; provided, that where the rank of a CESO has a salary grade lower than that of the CES position to which he is assigned/ appointed to, the one-step salary adjustment shall be based on the salary grade of the higher position; provided, finally,  that where the salary of the CESO is already at the eight step of the salary grade of his rank or position, this one-step entitlement shall no longer apply ;

WHEREAS, Item E.1, CESB Resolution No. 807, s. 2009, provides œUpon original or promotional appointment to a rank, a CESO shall be entitled to a one-step adjustment in the salary grade attached to his rank, provided, that where the rank of a CESO has a salary grade lower than that of the CES position to which he is appointed to, the one- step salary adjustment shall be based on the salary grade of the higher CES position; provided, finally, that where the salary of a CESO is already at the eight step of the salary grade of his rank or position, this one-step entitlement shall no longer apply ;

WHEREAS, Government-Owned and Controlled Corporation (GOCCs) and Government Financial Institutions ; (GFIs) with original charter, may have provisions in their charters that grant them authority to determine their own compensation system and salary structure;

WHEREAS, in such instances said GFls and GOCCs may have more than eight step increments allowed to National Government Agencies, in their salary grades;

WHEREAS, CESB ™s current rules on the compensation system in the CES under CESB Resolution No. 807, s. 2009 is silent on this matter;

WHEREAS, it is imperative to address this gap and harmonize the compensation systems observed in the GOCCs and GFIs with that of the rules on compensation in the CES under CESB Resolution No. 807, s. 2009;

NOW THEREFORE, foregoing premises considered and pursuant to the mandate of the CESB as the governing body of the CES, to promulgate rules, standards and procedures on the selection, classification, compensation and career development of members of the Career Executive Service, the Board hereby RESOLVES to AMEND Item E.1 of CESB Resolution No. 807, which shall now read as:

œE. One-Step Salary Adjustment :

1. œUpon original or promotional appointment to a rank, a CESO shall be entitled to a one-step adjustment in the salary grade attached to his rank, provided, that where the rank of a CESO has a salary grade lower than that of the CES position to which he is appointed to, the one-step salary adjustment shall be based on the salary grade of the higher CES position; provided, further, that where the salary of a CESO is already at the eight step of the salary grade of his rank or position, this one-step entitlement shall no longer apply  except where the salary grades have more than eight steps, hence, the one-step adjustment will continue to apply until the last step of the salary grade of his rank.

RESOLVED FURTHER, that the Civil Service Commission and the Department of Budget and Management (DBM) be furnished a copy of this resolution for its information and guidance.

RESOLVED  FINALLY, that all existing CES rules and regulations, circulars and memoranda inconsistent with this resolution are hereby repealed or amended accordingly.

This resolution shall take effect after fifteen (15) days from publication in the Official Gazette or in a newspaper of general circulation.

Adopted: 14 September 2010