WHEREAS, there is an imperative and urgent need to upgrade personnel administration in local governments to ensure their effectiveness for meaningful development and progress in nation building;

WHEREAS, position classification and salary administration has been long recognized and accepted as necessary managerial tools to promote work efficiency, to delineate duties and responsibilities, to preclude the proliferation of unnecessary positions, to prevent pay inequities, to facilitate the budgeting process and the preparation of more informative, realistic and meaningful personnel programs, and to enhance the development of a career-oriented, motivated, responsive and stable corps of employees in the local government service;

WHEREAS, the Constitution provides for the standardization of salaries of government officials and employees taking into account the nature of the responsibilities pertaining to, and the qualifications required for, the positions concerned;

WHEREAS, the salary rates of Provincial, City and Municipal officials fixed by law under Republic Act Numbers 4477, 6414 and/or other salary laws are already outmoded, are no longer adequate to cope with the rising cost of living, and have not kept up with rates in the national government and in the private sector;

WHEREAS, the basic concepts underlying position classification and salary standardization have not been carried to practical application in the local government service although the need therefor has long been acknowledged;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree and order:

SECTION 1.Title of the Decree. - This Decree shall be known as "The Local Government Personnel Administration and Compensation Plans Decree of 1977."

SEC. 2. Declaration of Policy.- It is hereby declared to be the policy of the State to promote the efficiency, effectiveness and integrity of the local government personnel service, by encouraging local governments to adopt rational personnel policy and position classification and compensation plans, based on the principle of equal pay for substantially equal work, and on the need to recognize differences in pay arising from substantive differences in duties, responsibilities and qualification requirements. In determining rates, of pay, due regard shall be given to the class and financial capability of the province, city or municipality and to prevailing rates for comparable work in private industry within the locality.

SEC. 3.Creation of a Joint Commission.- To formulate and coordinate policies on local government personnel policy and on position classification and salary plans and to implement the provisions of this Decree, there is hereby created a Joint Commission on Local Government Personnel Administration, hereinafter referred to as the Joint Commission.

SEC. 4. Composition and Functions of the Joint Commission.- The Joint Commission shall be composed of the Secretary of Local Government and Community Development as Chairman and the Secretary of Finance, the Commissioner of the Budget and the Chairman of the Civil Service Commission as members. A fifth member shall be a provincial governor to present the viewpoint of local governments who shall be appointed by, and who shall serve at the pleasure of the President. The Joint Commission shall serve as the principal coordinating body for agencies with direct responsibilities for local government supervision, budgeting, personnel administration, position classification and salary administration, and shall be responsible for the formulation of policies affecting personnel administration, position classification and salary and compensation plans for local governments, the evaluation of petitions of local government units for approval of their respective position classification and compensation plans, final approval of local position classification and compensation plans, and general supervision of personnel administration in local governments. The Joint Commission may issue Circulars for the promulgation of rules, regulations, and guidelines to implement the provisions of this Decree. The Circulars shall be signed by the members thereof or their duly authorized representatives. The Joint Commission shall be assisted by such Technical Committees, as may be necessary. The composition and functions of these Technical Committees shall be determined by the Joint Commission.

SEC. 5. Secretariat of the Joint Commission. -The Department of Local Government and Community Development, through the Office of the Secretary, shall serve as Secretariat to the Joint Commission, shall handle its correspondence and shall prepare the agenda for its meetings. To carry out these responsibilities, an initial amount of five hundred thousand Pesos (P500,000.00) is hereby appropriated out of any funds in the National Treasury not otherwise appropriated. Thereafter, funds sufficient to fully carry out the objectives of the Joint Commission shall be appropriated every fiscal year in the General Appropriation Law.

SEC. 6. Responsibilities of the National Agencies Represented on the Joint Commission. -The agencies comprising the Joint Commission, shall have the following responsibilities:

1. Department of Local Government and Community Development. Prescribe model organization and staffing patterns for local government units, encourage the use of position classification and salary plans in local governments, initiate and/or conduct related training courses.
2. Department of Finance. Determine the fiscal capacity of the local governments to carry out the proposed compensation and salary plans and review local government budgets to ensure that the expenditures for personal services are in conformity with approved position classification and compensation plans.
3. Budget Commission. Through the Office of Compensation and Position Classification, furnish technical assistance to local governments in the development, implementation and administration of position classification and compensation and salary plans, and assist in the training of local government personnel to enable them to administer and maintain such plans.
4. Civil Service Commission. Responsible for matters dealing with certification of eligibility, examination, appointments, promotions, performance evaluation, disciplinary action and such other personnel activities as defined in pertinent laws, rules and regulations.

The Joint Commission shall sponsor training courses for local officials under the leadership of the Department of Local Government and Community Development and the Civil Service Commission: Provided, That expertise for technical aspects of the training courses shall be drawn from the implementing agencies concerned, particularly among the members agencies of the Joint Commission.

SEC. 7. Coverage.- The salary plan provided in Section 8 of this Decree shall apply to the positions of Provincial Governor and City Mayor; Provincial/City Administrator; Provincial/City Assessor, Engineer, Health Officer, and Development Coordinator; Assistant Provincial/City Agriculturist, Assessor, Engineer, Health Officer, Treasurer, and Kalihim ng Sangguniang Panlalawigan/Panglungsod: Municipal Mayor; Municipal Treasurer, Assessor, Health Officer, Engineer and Development Officer; and Assistant Municipal Treasurer, Attorney, Development Officer; and Kalihim ng Sangguniang Bayan; and the position classification and salary plans shall apply to all other positions in the City or Provincial service, whether such positions are permanent or temporary, except those occupied by: (a) officials whose compensation are fixed in the Constitution, Presidential Decree and other laws; and (b) officials and employees who are under the direct supervision and control of the National Government or its agencies, and who are paid wholly or partially from national funds.

SEC. 8. Maximum Salary Rates for Provincial, City and Municipal Officials. - The annual salaries of the officials referred to in Section 7 hereof shall be equated to those of the Career Executive Service in accordance with the schedule indicated below and in Section 9, which shall be understood as the maximum rates that may be authorized by Joint Commission: Provided, that local governments which do not have adequate or sufficient funds shall only partially implement the established rates as may be approved by the Joint Commission: Provided, further, that any partial implementation shall be uniform and proportionate for all positions in each local government unit or as may otherwise be approved by the Joint Commission: Provided, further, That the rates specified herein for local officials shall be automatically revised in accordance with any modification of the rates for Career Executive Service Officers as may be subsequently approved: and Provided, finally, that the Joint Commission shall determine the maximum salary rates for officials of provinces/cities/municipalities classified as other than I-A and the position classification and maximum salary rates for positions other than those listed in this Section.

Position of Local Official

CESO Rank

Governor/city mayor of class I-A

II

Provincial/City Administrator, Assessor, Engineer, Health Officer, and Treasurer

III

Provincial/City Development Coordinator, Attorney/Legal Officer, and Agriculturist

III

Assistant Provincial/City Agriculturist, Assessor, Engineer, Health Officer, Treasurer and Kalihim ng Sangguniang Panlalawigan/Panglungsod

IV

Municipal Mayor of Class I-A municipality

IV

Municipal Treasurer, Assessor, Engineer, and Health Officer

V

Assistant Municipal Treasurer, Approximately Kalihim ng Sangguniang Bayan, one rank lower

Attorney, Development Officer than a CESO Rank V

SEC. 9. Salary Schedule for Officials of Cities in Metropolitan Manila.- The salary Schedule for officials of the Cities of Manila, Quezon, Pasay and Caloocan shall be as follows:

Position of Local Official Manila

CESO Rank

City Administrator, Assessor, Engineer, Health Officer and Treasurer

II

Assistant City Assessor, Engineer, Health Officer and Treasurer

III

Cities of Quezon, Pasay and Caloocan City Administrator, Assessor, Engineer, Health Officer and Treasurer

III

Assistant City Assessor, Engineer, Health Officer and Treasurer

IV

SEC. 10. Rules for the Implementation of the Salary Schedules for Provincial, City and Municipal Officials.- The Salary Schedules prescribed in Section 8 and 9 hereof shall be implemented for local government units as may be approved by the Joint Commission in accordance with policies and guidelines issued by the President: Provided, That the specific rates of pay shall be determined on the basis of the following guidelines: (a) The hiring rates of a first class province, city or municipal official shall be 80% of the hiring rate of the equivalent CESO position: (b) The hiring rate of other classes of provincial, city or municipal officials shall be 90% of the hiring rate of the next preceding class; (c) For the mayors of the cities of Manila, Quezon, Pasay and Caloocan, the rates shall be determined as follows: Mayor of Manila not exceeding 90% of the Salary of the Secretary of an Executive Department and Mayor of Quezon City/Pasay City/Caloocan City not exceeding 85% of the salary of the Secretary of an Executive Department: Provided, further, that the Joint Commission may adopt such policies and salary rates needed to cope with any transitional problems, including those pertaining to positions and officials currently receiving rates in excess of the amounts approved under this Decree.

SEC. 11. Interim Rates for Cities in Metropolitan Manila. - The Salary rates herein prescribed for the Cities of Manila, Quezon, Pasay, Caloocan and the municipalities within the Metropolitan Manila area as defined under P.D. 824 shall prevail until such time as the Metropolitan Manila Commission and the Joint Commission shall have prescribed a salary schedule and position classification and salary plans for the cities and municipalities within Metropolitan Manila.

SEC. 12.Repealing Clause.- All laws, acts, decrees, administrative orders, rules and regulations or parts thereof, including portions of the City Charters inconsistent with the provisions of this Decree, are hereby repealed, and or modified accordingly.

SEC. 13. Effectivity. This Decree shall take effect immediately.

Done in the City of Manila, this 5th day of May, in the year of Our Lord, nineteen hundred and seventy-seven.

 

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JUAN C. TUVERA
		Presidential Executive Assistant