WHEREAS, the budgetary requirements of the 10% across-the-board salary increase effective January 1, 2000 would involve about P13.2 Billion;

WHEREAS, the amount incorporated in the Year 2000 National Expenditure Program could only cover the months of September 2000 to December 2000;

WHEREAS, additional sources of funds is needed for the implementation of the said salary increase effective January 1, 2000;

WHEREAS, there is also an urgent need to impose restrictions on the hiring of new personnel in the national government to contain the growth of government manpower level and maintain a lean and productive workforce by optimizing the services of existing government personnel;

NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order the suspension of the hiring of new personnel in accordance with the following provisions:

Section 1. Coverage. This Order shall apply to all positions in all departments and agencies of the Executive Branch, including government-owned and/or -controlled corporations (GOCCs) and state universities and colleges (SUCs).

The Legislative and Judicial Branches of Government, including Local Government Units, are encouraged to adopt the provisions of this Order at their own respective discretion.

Section 2. Prohibition. The hiring of new personnel whether on a permanent, temporary, substitute, co-terminous, contractual or casual status, is hereby suspended, except for key positions, teaching, and uniformed personnel in the Philippine National Police, Bureau of Fire Protection and Bureau of Jail Management and Penology.

This prohibition shall not apply to employees transferring from one department, agency, GOCC or SUC to another as covered by this Order.

Section 3. Non-Release of Funds. Except with respect to the requirements of the positions exempted from the aforecited prohibition, no amount shall be released for the purpose of hiring new personnel.

Section 4. Rules and Regulations. The Department of Budget and Management shall issue the necessary rules and regulations for the effective implementation of this Administrative Order.

Section 5. Agency Head Responsibility. Department Secretaries and agency heads shall be responsible for the strict implementation of this Order.

Section 6. Repealing Clause. All executive orders, other executive issuances or parts thereof which are inconsistent with this Administrative Order are hereby superseded and/or modified accordingly.

Section 7. Effectivity. This Order shall take effect immediately.

DONE in the City of Manila, this 1^st day of December, in the Year of Our Lord, Nineteen Hundred and Ninety-Nine.

(Sgd.) JOSEPH EJERCITO ESTRADA
President of the Philippines

By the President:
(Sgd.) RONALDO B. ZAMORA
Executive Secretary