WHEREAS, it is the policy of government to help augment government personnel income in times of economic crisis and inflation;

WHEREAS, existing national policy mandates that compensation of government personnel shall be adjusted/standardized taking into consideration the prevailing level of compensation in the private industry;

WHEREAS, the result of the 1979 Survey conducted in private industry by the National Government indicates and justifies a further increase in the salaries of government personnel;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and direct:

1. The increase of the salaries of all officials and employees of the national government to partially implement the results of the 1979 Salary Survey, thus:

1.1 Those whose salaries range from the minimum salary/wage to P8,400 per annum shall be increased by three (3) salary steps in the National Salary Schedule or equivalent to approximately 15%;

1.2 Those whose salaries are more than P8,400 per annum shall be increased by two (2) salary steps in the National Salary Schedule or equivalent to approximately 10%.

2. Positions in national government agencies with approved special pay plans and those not covered by the national pay plan including the members of the Armed Forces of the Philippines and the Integrated National Police shall likewise be given the same percentage salary increases.

3. Agencies that have granted salary adjustments/increases in CY 1981 shall be deemed to have complied with this Order. If the employee-position has received less than the amount that he is entitled to under Nos. 1 and 2 hereof, he shall be allowed to receive the difference.

4. Funds needed to implement this Order shall be drawn from salary lapses, the Salary Adjustment Fund in the CY 1981 General Appropriations Act and any remaining deficiency shall be covered by the budgetary reserves.

5. Positions whose salaries are fixed in the Constitution are not covered by this Order.

6. Government-owned and controlled corporations may grant the same percentage salary increases provided in this Order subject to the rules, guidelines, procedures and conditions to be determined by the Compensation Committees created in P.D. No. 985.

7. Local government units may likewise grant the same percentage salary increases provided herein, chargeable against their respective local government funds, subject to the rules, guidelines, procedures and conditions to be determined by the Joint Commission on Local Government Personnel Administration.

8. The rules and regulations needed to comply with this Order shall be formulated and issued by the Ministry of the Budget.

9. This Executive Order shall take effect on March 1, 1981.

DONE in the City of Manila, this 19th day of March in the year of Our Lord, nineteen hundred and eighty-one.


By the President:

(SGD.) JUAN C. TUVERA
Presidential Executive Assistant