Upon the recommendation of the Salary Board created by Commonwealth Act No. 402, I, Manuel L. Quezon, President of the Philippines, by virtue of the authority in me vested by the Constitution and the laws, do ordain and promulgate the following:

1. The initial allocations of positions in the National Government, embraced in the classified and unclassified civil service, subject to the provisions of Commonwealth Act No. 402, are hereby declared in effect as of January 1, 1940, as shown in S. B. Form No. 5 accomplished by the Salary Board.

2. The compensation for each position shall be adjusted in accordance with section 12 of Commonwealth Act No. 402. However, in order not to burden the finances of the Government unduly, until sufficient experience has shown the effect of the allocations upon the total appropriation for salaries and wages, there is hereby released, under section 7 of Commonwealth Act No. 446. such part of the savings from the appropriations authorized in said Act, as well as from any excess of actual collections over the estimated ordinary income of the National Government during the fiscal year 1940, as will be necessary to cover the required adjustments in compensation of positions from grades 10 to 8, inclusive. For positions allocated to grades 7 to 1, inclusive, only such amount is made available as will cover the following:

(a) For positions allocated to the grade in which they are now found: the required adjustment in compensation.

(b) For positions allocated to a higher grade: the required adjustment, if any, plus one-rate increase; or, if no adjustment is necessary, one-rate increase.

(c) If the present compensation is below the minimum of the appropriate grade and above the maximum of the next lower grade: only the required adjustment.

3. The chief of each bureau or office shall immediately submit to the Salary Board a statement containing the following information:

(a) Item number of each position and page of the Appropriation Act as indicated in S. B. Form 1;

(a) Corresponding item number and page for the same position in the current Appropriation Act;

(b) Name of the actual incumbent on the date of the statement required in this paragraph; and

(c) Compensation of the incumbent as adjusted in accordance with the present allocations.

Done at the City of Manila, this thirty-first day of December, in the year of Our Lord, nineteen hundred and thirty-nine, and of the Commonwealth of the Philippines, the fifth.


By the President:

JORGE B. VARGAS
Secretary to the President