WHEREAS, pursuant to the mandate of the Constitution, P.D. No. 985 was issued to standardize compensation of government officials and employees, including those in government-owned or controlled corporations, taking into account the nature of the responsibilities pertaining to, and the qualifications required for the positions concerned;

WHEREAS, the said Decree authorizes the adoption of additional financial incentives for viable and profit-making corporations and those performing critical functions, to be supported from net earnings and profits of such corporations.

WHEREAS, for Purposes of rationalizing Compensation and Position Classification Systems for groups of corporations belonging to the same functional sectoral interests which presently maintain differing compensation and position classification plans, the said Decree and subsequently LOI Ho. 62, created Compensation Committees to formulate and recommend policies and standards governing classification, compensation, allowances and incentives for such groups of corporations;

WHEREAS, LOI No. 841 directed the Compensation Committees to submit immediately for Presidential approval, adjustment in salary, allowances and fringe benefits as may be called for by present economic conditions, for government-owned of controlled corporations;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines by virtue of the powers vested in me by law, dohereby instruct the implementation of the Uniform Position Classification and Pay Plan for the Educational/Scientific/ Cultural/Social group of corporations;

1. Scope of the Plan. The Position and Compensation Plans for the Educational/Scientific/Cultural/Social group shall apply to the following corporations:

Cultural Center of the Philippines
Philippine High School for the Arts
Employees ™ Compensation Commission
Environmental Center of the Philippines
Metals Industry Research, and Development Center
Music Promotion foundation of the Philippines
National Research Council of the Philippines
National Social Action Council National Youth and Sports Development Foundation of the Philippines
Pambansang Katipunan ng Kabataang Barangay
Philippine Charity Sweepstakes Office
Philippine Heart Center for Asia
Philippine Institute for Development Studies
Philippine Veterans Assistance Commission
Science Foundation of the Philippines
Technology Resource Center

2.  Position Classification. Positions shall be classified using the national classification method and on the basis of pre-determined standards and factors.

A position classification plan shall be prepared for the corporations in the educational/scientific/cultural/ social group, adjusted to reflect unique jobs in each of the corporations in the group. These shall be determined on the basis of approved standards/factors and issued by the Minister of the Budget.

3. Compensation Schedule. The schedule attached to this Letter shall comprise the compensation schedule applicable to positions paid on monthly or annual basis.

4.  Salaries for Top Management Positions. The compensation of the executive positions in a corporation shall depend upon the asset size and operations of the corporation and upon its overall financialperformance. The maximum levels of basic salary for the top positions in the largest and most profitable corporations shall be as follows:

President/Director-General/Administrator/Director/Executive Director P78,000 Executive Vice President/Deputy Administrator/Assistant Director 70,000 Senior Vice President 63,000

Provided, That salaries actually being received by any official in excess of these rates may continue, subject to item no. 6 hereof.

5.  Maximum Level of Allowances and Benefits. Policies on allowances and other benefits now in force for each corporation shall be maintained.

6. Implementing Details . Implementing details of the Position and Complication Plan shall be issued by the Ministry of the Budget, which shall observe the following guidelines:

a. The increases shall be staggered within the limits of corporate financial performance. No government subsidy or equity investment shall be approved to finance any salary increase;

b. The implemented total increase in basic salary, allowances and fringe benefits in any one year shall be within the approved position classification and compensation plan for the group and for any one corporation, shall not in any case exceed twenty-five percent (25%) of the actual total personal services, expenses of the immediately preceding year, adjusted for increases in staffing;

c. An across the board increase of ten per cent (10%) in basic salary shall be immediately implemented for the various corporations, except for senior executive positions where existing scales exceed those indicated by item no. 4 of this Letter. This shall be considered as an interim measure pending the completion of the position classification study described under item no. 2 hereof;

d. The allowances and/or fringe benefits of senior executives whose basic salary already exceed those specified in item no. 4 hereof may be increased to make up for any difference between actual compensation now received and the amount otherwise authorized under this Letter;

e. Hiring rates for positions shall be established for each corporation, depending upon its size and profitability;

f. The implementation schedule for corporations incurring a loss in 1976 shall be prepared by the corporations concerned hand in hand with a profit plan and shall be subject to case to case approval by the Ministry of the Budget; and

g. Any changes in the approved position classification and pay plans, including reclassification action, shall be subject to the approval of the Minister of the Budget.

7.  Effectivity Date. The Position Classification and Compensation Plans herein directed shall take effect on May 1, 1979.

Done in the City of Manila this 1st day of October, in the year of Our Lord, nineteen hundred and seventy-nine.

(SGD.) FERDINAND E. MARCOS
President of the Philippines

By the President:

(SGD.) JACOBO C. CLAVE
Presidential Executive Assistant