MALACAÑANG
M a n i l aPRESIDENTIAL DECREE No. 985 August 22, 1976
A DECREE REVISING THE POSITION CLASSIFICATION AND COMPENSATION SYSTEMS IN THE NATIONAL GOVERNMENT, AND INTEGRATING THE SAME
WHEREAS, the Constitution provides for the standardization of compensation of government officials and employees, including those in government-owned or controlled corporations, taking into account the nature of the responsibilities pertaining to and the qualifications required for, the positions concerned;
WHEREAS, the Integrated Reorganization Plan provides that a comprehensive reexamination of the present classification and pay plans be undertaken;
WHEREAS, it has been the policy of the national government to pay its employees on the principle of "equal pay for substantially equal work" and to base difference in pay among them in accordance with the difficulty of their duties and responsibilities;
WHEREAS, to implement this policy, the Classification and Compensation Plans were adopted and initially implemented by the national government in 1957;
WHEREAS, no less than forty percent of the total national budget is devoted to personal services costs and therefor it is...
Details
Amends
n/a
Amended by
n/a
Presidential Decrees
A Decree Revising the Position Classification and Compensation Systems in the National Government, and Integrating the Same
Presidential Decree No. 985
SUMMARY OF PRESIDENTIAL DECREE NO. 985
Declaration of Policy and Establishment of Systems (Sections 1-2):
- This decree shall be known as "The Budgetary Reform Decree on Compensation and Position Classification of 1976".
- It establishes a system of compensation standardization and position classification in the national government, including government-owned or controlled corporations and financial institutions.
- The policy is to provide equal pay for substantially equal work and base differences in pay on substantive differences in duties, responsibilities, and qualification requirements.
- Prevailing rates in private industry for comparable work shall be considered in determining rates of pay.
Definitions (Section 3):
- Defines key terms such as "actual service", "allocation", "class", "class specification", "classification", "compensation", "grade", "immediate supervisor", "OCPC", "occupational group", "part-time position", "position", "position classification system", "preparation equivalent rating", "reclassification", "salary adjustment", "salary grade", "salary schedule", "salary step increment", "series", and "wage schedule".
Coverage and Exclusions (Section 4):
- Covers all positions, permanent, temporary, or emergency, full-time or part-time, in the national government, including government-owned or controlled corporations and financial institutions.
- Excludes elected officers, heads of executive departments, diplomatic officers, judicial officers, members of the armed forces, heads and senior management of government corporations, heads of state universities and colleges, positions in the Career Executive Service, and provincial, city, municipal, and other local government officials and employees.
Position Classification System (Sections 5-9):
- Consists of occupational groups, classes, class specifications, and rules and regulations for implementation and administration.
- The Budget Commission shall prepare class specifications defining classes of positions based on duties, responsibilities, and qualification requirements. (Section 7)
- The OCPC shall allocate positions to appropriate classes and reallocate positions when duties change. (Section 8)
- The Commission shall maintain and update class specifications as needed. (Section 9)
Compensation System (Sections 10-14):
- Consists of a Salary Schedule, a Wage Schedule, policies on allowances, bonuses, pension plans, and other benefits, and rules and regulations. (Section 10)
- The Salary Schedule has 28 grades with 8 steps each, representing levels of work difficulty and responsibility. (Section 11)
- The Wage Schedule has 28 grades computed on a 56-hour work week or 2,912-hour year, for positions paid on a daily or hourly rate basis. (Section 12)
- The Salary and Wage Schedules shall be revised periodically based on private industry rates, changes in the basic work week, or changes in the Minimum Wage Law. (Section 13)
- For teaching positions, salary grades shall be determined based on a "Teacher's Preparation Pay Schedule" considering academic preparation, teaching experience, and professional growth activities. (Section 14)
Compensation Rules (Section 15):
- Hiring rates, pay reduction rules, step increments based on satisfactory service, and status of appointment rules are provided.
Compensation Committees (Section 16):
- Compensation committees may be created to recommend compensation standards, policies, rules, and regulations for critical government agencies and government corporations, subject to the President's approval.
- The OCPC shall implement and enforce compensation policies.
Powers and Functions of the Budget Commission and OCPC (Section 17):
- Administer the compensation and position classification systems.
- Define salary and wage grades.
- Keep position classes updated.
- Conduct surveys of duties, responsibilities, qualification requirements, and private industry pay rates.
- Certify classification actions.
- Provide criteria and guidelines for allowances and additional compensation.
- Monitor and compile personal services cost data.
- Promulgate rules and regulations.
- Advise local governments on classification and compensation matters.
General Guidelines and Standards (Section 18):
- Heads of departments/agencies shall assign duties and responsibilities according to the position classification.
- Non-performance of duties shall not be a basis for reclassification.
- Reclassification requires a substantial change in duties and responsibilities, certified by the department head.
- Positions must be classified before being filled.
Release of Funds and Implementing Agency (Sections 19-20):
- The Budget Commission is authorized to release funds for salaries and wages based on rates determined by the OCPC.
- The OCPC shall implement the provisions of this decree.
Transitory Provisions (Section 21):
- The Budget Commission shall place all positions in appropriate classes and grades within 180 days.
- Agencies shall submit necessary documents within 90 days.
- Upon initial implementation, salaries shall be adjusted as follows:
- Below minimum: raised to minimum
- Between steps: raised to next higher step
- At or above maximum: no change
Effectivity and Repealing Clause (Sections 22-24):
- The compensation system shall be implemented upon issuance of rules and regulations by the Budget Commission.
- Inconsistent laws, decrees, orders, rules, and regulations are repealed or modified accordingly.
- The decree takes effect upon approval.
Declaration of Policy and Establishment of Systems (Sections 1-2):
- This decree shall be known as "The Budgetary Reform Decree on Compensation and Position Classification of 1976".
- It establishes a system of compensation standardization and position classification in the national government, including government-owned or controlled corporations and financial institutions.
- The policy is to provide equal pay for substantially equal work and base differences in pay on substantive differences in duties, responsibilities, and qualification requirements.
- Prevailing rates in private industry for comparable work shall be considered in determining rates of pay.
Definitions (Section 3):
- Defines key terms such as "actual service", "allocation", "class", "class specification", "classification", "compensation", "grade", "immediate supervisor", "OCPC", "occupational group", "part-time position", "position", "position classification system", "preparation equivalent rating", "reclassification", "salary adjustment", "salary grade", "salary schedule", "salary step increment", "series", and "wage schedule".
Coverage and Exclusions (Section 4):
- Covers all positions, permanent, temporary, or emergency, full-time or part-time, in the national government, including government-owned or controlled corporations and financial institutions.
- Excludes elected officers, heads of executive departments, diplomatic officers, judicial officers, members of the armed forces, heads and senior management of government corporations, heads of state universities and colleges, positions in the Career Executive Service, and provincial, city, municipal, and other local government officials and employees.
Position Classification System (Sections 5-9):
- Consists of occupational groups, classes, class specifications, and rules and regulations for implementation and administration.
- The Budget Commission shall prepare class specifications defining classes of positions based on duties, responsibilities, and qualification requirements. (Section 7)
- The OCPC shall allocate positions to appropriate classes and reallocate positions when duties change. (Section 8)
- The Commission shall maintain and update class specifications as needed. (Section 9)
Compensation System (Sections 10-14):
- Consists of a Salary Schedule, a Wage Schedule, policies on allowances, bonuses, pension plans, and other benefits, and rules and regulations. (Section 10)
- The Salary Schedule has 28 grades with 8 steps each, representing levels of work difficulty and responsibility. (Section 11)
- The Wage Schedule has 28 grades computed on a 56-hour work week or 2,912-hour year, for positions paid on a daily or hourly rate basis. (Section 12)
- The Salary and Wage Schedules shall be revised periodically based on private industry rates, changes in the basic work week, or changes in the Minimum Wage Law. (Section 13)
- For teaching positions, salary grades shall be determined based on a "Teacher's Preparation Pay Schedule" considering academic preparation, teaching experience, and professional growth activities. (Section 14)
Compensation Rules (Section 15):
- Hiring rates, pay reduction rules, step increments based on satisfactory service, and status of appointment rules are provided.
Compensation Committees (Section 16):
- Compensation committees may be created to recommend compensation standards, policies, rules, and regulations for critical government agencies and government corporations, subject to the President's approval.
- The OCPC shall implement and enforce compensation policies.
Powers and Functions of the Budget Commission and OCPC (Section 17):
- Administer the compensation and position classification systems.
- Define salary and wage grades.
- Keep position classes updated.
- Conduct surveys of duties, responsibilities, qualification requirements, and private industry pay rates.
- Certify classification actions.
- Provide criteria and guidelines for allowances and additional compensation.
- Monitor and compile personal services cost data.
- Promulgate rules and regulations.
- Advise local governments on classification and compensation matters.
General Guidelines and Standards (Section 18):
- Heads of departments/agencies shall assign duties and responsibilities according to the position classification.
- Non-performance of duties shall not be a basis for reclassification.
- Reclassification requires a substantial change in duties and responsibilities, certified by the department head.
- Positions must be classified before being filled.
Release of Funds and Implementing Agency (Sections 19-20):
- The Budget Commission is authorized to release funds for salaries and wages based on rates determined by the OCPC.
- The OCPC shall implement the provisions of this decree.
Transitory Provisions (Section 21):
- The Budget Commission shall place all positions in appropriate classes and grades within 180 days.
- Agencies shall submit necessary documents within 90 days.
- Upon initial implementation, salaries shall be adjusted as follows:
- Below minimum: raised to minimum
- Between steps: raised to next higher step
- At or above maximum: no change
Effectivity and Repealing Clause (Sections 22-24):
- The compensation system shall be implemented upon issuance of rules and regulations by the Budget Commission.
- Inconsistent laws, decrees, orders, rules, and regulations are repealed or modified accordingly.
- The decree takes effect upon approval.