WHEREAS, the total monthly compensation of national government employees has not been increased since July 2001, or almost five years ago, notwithstanding periodic wage adjustments granted to the private sector and increases in prices of basic commodities;

WHEREAS, the grant of One Thousand pesos (P1,000.00) across the board additional allowance under House Bill No. 5013, which has been approved on 3rd reading in the House of Representatives, is meant to provide them with sufficient means to make ends meet;

WHEREAS, there is an urgent need for employees of the national government to receive said increase in compensation while the bill is going through the legislative mill;

WHEREAS, pursuant to Section 21 of Republic Act No. 6758 and Section 5 of Presidential Decree 1597, the President may approve grant of additional allowances and other fringe benefits to employees of the national government;

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. Increase in Additional Compensation. - Until such time that a bill authorizing adjustment in compensation has been signed into law, the amount of One Thousand Pesos (P1,000.00) per month increase in additional compensation (ADCOM) shall be granted to national government employees in agencies covered by Republic Act No. 6758 as amended and to military and uniformed personnel.

 

SECTION 2. Fund Source. - Funds necessary to support the increase in AD- COM of national government employees including military and uniformed personnel shall be taken from the appropriations provided under the Miscellaneous Personnel Benefits Fund, as augmented from any available savings, under Republic Act No. 9336, or the FY 2005 General Appropriations Act, as re-enacted.

 

SECTION 3. Authority to Adjust compensation/Allowances of Employees in Government Owned and/or Controlled Corporations (GOCCs) and Local Government Units (LGUs). - Subject to availability of funds, GOCC including government financial institutions covered by Republic Act No. 6758, as amended, and LGUs are likewise authorized to grant an increase of One Thousand Pesos (P1,000.00) per month in the ADCOM of their employees chargeable against their respective funds.

 

SECTION 4. Implementing Rules and Regulations. The Department of Budget and Management shall issue the necessary rules and regulations to implement the provisions of this Administrative Order.

 

SECTION 5. Effectivity - The increase in ADCOM, as well as the authority given to GOCCs and LGUs to provide said increase, shall take effect 1 January 2006 and shall cease upon approval of any legislative measure authorizing adjustment in compensation of government employees.

Adopted: 28 Feb. 2006

(SGD.) GLORIA MACAPAGAL-ARROYO

By the President:

(SGD.) EDUARDO R. ERMITA
Executive Secretary