1.0     Background

The Congress JR No. 1 (Joint Resolution Authorizing the Increase in Base Pay of Military and Uniformed Personnel in the Government,  and for Other Purposes) dated January 1, 2018 provides the modified Base Pay Schedule for the MUP, which shall be implemented in two (2) years, i.e., FYs 2018 and 2019.
 
Said Congress JR adjusts the compensation package of the MUP to a level commensurate  with their critical role in maintaining  national security and peace and order, taking into consideration  their exposure  to high-risk environments  in the performance of their duties.

Furthermore, the aforementioned Congress JR (i) suspends the indexation of pension  of  retired  MUP  to  the  base  pay  of  those  in  the  active  service;  (ii) stipulates  the  fixed  amount  of  Hazard  Pay  of  all  MUP;  and  (iii)  repeals  the provisions of Executive Order (EO) No. 201^[1] , s. 2016 on the grant of Provisional Allowance and Officers ™ Allowances.

The Department of Budget and Management (DBM) is directed to issue the necessary rules and regulations to implement the provisions of Congress JR No. 1, s. 2018.

2.0 Purpose

This Circular is issued to prescribe the guidelines, rules, and regulations for the implementation  of  the  modified  Base  Pay  Schedule  for  the  MUP  beginning January 1, 2018, and other provisions of Congress JR No. 1, s. 2018.

3.0 Coverage

This Circular shall apply to all military personnel of the Armed Forces of the Philippines  (AFP)  under  the  DND  and  uniformed  personnel  of  the  Philippine National Police (PNP), Philippine Public Safety College (PPSC), Bureau of Fire Protection (BFP), and Bureau of Jail Management  and Penology (BJMP) under the  DILG;  Philippine  Coast  Guard  (PCG)  under  the  DOTr;  and  the  National Mapping and Resource Information Authority (NAMRIA) under the DENR.

4.0 Modified Base Pay Schedule for the MUP Beginning January 1, 2018

The first year implementation  of the new base pay rates for the MUP shall be in accordance with the Modified Base Pay Schedule under Item II of Congress JR No. 1, s. 2018, attached as Annex œA  of this Circular.

The actual monthly base pay of the incumbent  MUP as of December  31, 2017 shall be adjusted effective January 1, 2018 to the rates in the Modified Base Pay Schedule in Annex œA. 

5.0 Hazard Pay of the MUP

The Hazard Pay of all MUP shall be fixed at the amount of Five Hundred Forty
Pesos (P 540.00) per month, pursuant to Item IV of Congress JR No. 1, s.2018.

6.0 Discontinuance of the Grant of Provisional and Officers ™ Allowances

Consistent  with Item  VIII of Congress  JR No. 1, s. 2018,  the Provisional  and Officers ™ Allowances, which were previously given to qualified MUP as an interim measure  pursuant  to  E0  No.  201,  s.  2016,  shall  no  longer  be  part  of  the compensation  of  MUP  beginning  January  1,  2018,  in  view  of  the implementation  of  the  modified  Base  Pay  Schedule  authorized  in  the aforementioned Congress JR.

7.0 Suspension of the Indexation of Pension of Retired MUP

The indexation of the pension of retired MUP with the base pay of those in the active  service  shall  be  suspended  with  respect  to  the  base  pay  increase authorized in Congress JR No. 1, s. 2018, following Item III thereof.

The indexation of such pension shall thus remain to be based on the rates of the Base  Pay  Schedule  provided  under  Congress  JR  No.  4^[2] ,  s.  2009, notwithstanding the provisions of Presidential Decree No. 1638^[3] , s. 1979, as amended, Republic Act (RA) No. 8551^[4] , RA No. 5976^[5] , RA No. 9993^[6] , and RA No. 9263^[7] .  This suspension  shall be automatically  lifted on January 1, 2019 or upon the effectivity of a pension reform law, whichever comes earlier.

8.0 Procedural Guidelines

8.1 Preparation of Notices of Base Pay Adjustment (NOBPAs)

8.1.1 The Human Resource Management Officer (HRMO)/ Administrative Officer   (AO)   of  agencies   concerned   shall   prepare   NOBPAs   for incumbent  MUP  using  the  attached  format  indicated  in  Annex  œB,  subject to approval by the Head of the Agency.

8.1.2  The NOBPAs shall be issued to the personnel concerned.

8.2 The base pay adjustment granted to the MUP shall be subject to the usual accounting   and  auditing   rules  and  regulations,   and  to  appropriate   re- adjustment, if found not in order.

9.0 Fund Sources and Release of Funds

9.1 The amounts required to implement the increase in base pay and related Personnel  Services  (PS)  expenditures  for  MUP  shall  be  charged  against their respective  agency budgets for PS authorized  under RA No. 10964 or the FY 2018 General Appropriations Act (GAA).

9.2 In case of deficiency, the agency may submit a request to the DBM for the release of funds charged to the Miscellaneous Personnel Benefits Fund.

10.0   Responsibility of Agencies

Agencies shall be responsible for the proper implementation  of the provisions of this Circular. The responsible officers shall be held liable for any payment not in accordance with the provisions of this Circular, without prejudice to the refund by the personnel concerned of any excess or unauthorized payments.

11.0   Resolution of Cases

Cases not covered by the provisions of this Circular shall be referred to the DBM
for resolution.

12.0   Effectivity

This Circular shall take effect on January 1, 2018.

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^[1] Modifying the Salary Schedule for Civilian Government Personnel and Authorizing the Grant of Additional Benefits for both Civilian and Military and Uniformed Personnel.

^[2] Joint Resolution Authorizing the President of the Philippines to Modify the Compensation and Position Classification System of Civilian Personnel and the Base Pay Schedule of Military and Uniformed Personnel in the Government, and for other Purposes!

^[3] AFP Military Personnel Retirement and Separation Decree of 1979.

^[4] Philippine National Police Reform and Reorganization Act of 1998.

^[5] Coast Survey Officers Retirement and Separation Act of 1969.

^[6] Philippines Coast Guard Law of 2009.

^[7] Bureau of Fire Protection and Bureau of Jail Management and Penology Professionalization Act of 2004