WHEREAS, the government has adopted the new Salary Schedule contained in Joint Senate-House of Representatives Resolution No. 1, s. 1994 which shall be implemented within four (4) years or not later than 1997;

WHEREAS, the new Salary Schedule was partially implemented in 1994 and 1995 in accordance with Executive Orders No. 164 and 218;

WHEREAS, the amount of P19 billion is appropriated in the FY 1996 General Appropriations Act to cover, among others, the adjustment in basic salary of government personnel as authorized by said Joint Resolution for the third year implementation of the new Salary Schedule.

NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, P.D. 985, P.D. 1597 and RA 6758 as amended, do hereby order and direct:

SECTION 1. Third Interim Salary Schedules. The Department of Budget and Management is hereby directed to implement the attached Third Interim Salary Schedules (TISSs) for civilian and for uniformed personnel effective January 1, 1996 reflecting an increase in basic salary of one thousand pesos (P1,000.00) per month or thirty per cent (30%) of the difference between the actual salary as of December 31, 1995 and the salary rate of government personnel under the new Salary Schedule contained in the aforecited Joint Resolution, whichever is higher. Where the difference is less than P1,000.00 the full amount of the difference shall be given.

Heads of all National Government Agencies (NGAs) including Government-Owned and/or -Controlled Corporations (GOCCs), Government Financial Institutions (GFIs) and Local Government Units (LGUs) shall not grant salary increase in excess of the amount herein authorized.

SECTION 2. Coverage and Exemption. This Order shall cover only those officials and employees of the NGAs, GOCCs, GFIs, and LGUs whose basic salaries conform to the Second Interim Salary Schedule prescribed under Executive Order No. 218. Officials and employees of agencies which are exempt from the Position Classification and Compensation System and/or do not follow the Salary Schedule prescribed for government employees are not entitled to the salary increase authorized herein.

SECTION 3. Continuation of Personnel Economic Relief Allowance and Additional Compensation. The Personnel Economic Relief Allowance and Additional Compensation authorized under RA 7078 and Administrative Order No. 53, respectively, shall continue to be paid as allowances and not integrated into the basic pay.

SECTION 4. Allowances and Benefits Based on Percentage of Basic Salaries. Notwithstanding the salary increase authorized herein, there shall be no increase in the present allowances and benefits of officials and employees of GOCCs and GFIs which are based on percentage of their basic salaries.

SECTION 5. Funding Source. The funding sources for the amounts necessary to implement the TISS shall be as follows:

a. For NGAs, the amount shall be charged against the appropriations set aside for the purpose in the 1996 General Appropriations Act and from their savings. Thereafter, such amounts as are needed shall be included in the annual General Appropriations Act;

b. For GOCCs and GFIs, the amount shall be charged against their respective corporate funds; and

c. For LGUs, the amount shall be charged against their respective local funds.

GOCCs, GFIs and LGUs which do not have adequate or sufficient funds to pay the salary increase prescribed herein shall only partially implement the established rates: Provided, That any partial implementation shall be uniform and proportionate for all positions in each corporate entity and local government unit.

SECTION 6. Applicability to Certain Constitutional Officials. Pursuant to Section 10 of Article VI and Section 6 of Article VII of the Constitution, the salary increase prescribed herein for the President, Vice-President, Senators and Members of the House Representatives shall take effect only on July 1, 1998.

SECTION 7. Implementing Guidelines. The Department of Budget and Management shall prepare and issue the necessary guidelines for the implementation of this Executive Order.

SECTION 8. Effectivity. This Executive Order shall take effect January 1, 1996.

DONE in the City of Manila, this 2nd day of January in the year of Our Lord, Nineteen Hundred and Ninety Six.

(Sgd.) FIDEL V. RAMOS
President of the Philippines

By the President:

(Sgd.) RUBEN D. TORRES
Executive Secretary