In order to meet the continuing need of economy in Government expenditures, the following rules governing the filling of positions and promotions in the civil service are hereby promulgated for the information and guidance of all officials concerned:

1. Whenever a vacancy shall occur in any position mentioned in the General Appropriation Act or in any special Act of the National Assembly, the appointment to which position it not by law vested in the President of the Philippines, the corresponding Head of Department is hereby authorized to fill it by original appointment from among the eligibles in the Civil Service or by regular promotion at a salary not to exceed three thousand pesos per annum, subject to the entrance salaries provided in Civil Service rules and regulations. Appointment to any such position at a salary exceeding three thousand pesos per annum shall be submitted to the President of the Philippines for approval.

2. No increase in salary shall be allowed except in case of promotion to a position of higher rank or to any position involving greater responsibilities or increase of activities, in which case promotion may be approved by the proper Department Head, subject to the limitations provided in paragraph (1) hereof: Provided, That promotions shall not be made at a rate greater than one civil service grade and after a period of one year from the date of the last promotion. Meritorious cases as may be determined by he Department Head may be submitted to the Cabinet for approval as an exception to Civil Service rules.

3. This Administrative Order shall take effect as of January first, nineteen hundred and thirty-seven.
Done at the City of Manila, this twenty-fourth day of August, in the year of Our Lord, nineteen hundred and thirty-seven, and of the Commonwealth of the Philippines, the second.