MALACAÑANG
ManilaBY THE PRESIDENT OF THE PHILIPPINES
EXECUTIVE ORDER NO 719 May 1, 2008
COMPENSATION ADJUSTMENTS FOR GOVERNMENT PERSONNEL
WHEREAS, an efficient and effective civil service is crucial to the continuous development of our country;
WHEREAS, the current compensation of government personnel at the administrative/sub-professional entry professional/technical levels are nearly comparable with those in the private sector, but the gap widens at the higher professional and executive/top management levels, making the latter very uncompetitive;
WHEREAS, the two recent compensation adjustments for government personnel effective July 1, 2006 and July 1, 2007, which accorded priority to those the sub-professional and lower professional levels in view of limited government funds, have partly uplifted their economic well-being;
WHEREAS, the salaries and base pay of civilian and military/uniformed personnel, respectively, must be raised to address the gap in compensation between the private and public sectors for the government to attract and retain competent public servants;
NOW, THEREFORE, I GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by...
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Executive Orders
Compensation Adjustments for Government Personnel
Executive Order No. 719
Executive Order No. 719
Compensation Adjustments for Government Personnel
- Efficient and effective civil service is crucial for the country's development. (Whereas clause)
- Compensation gap between public and private sectors, especially at higher professional and executive levels. (Whereas clause)
- Previous compensation adjustments in 2006 and 2007 focused on sub-professional and lower professional levels. (Whereas clause)
- Salaries and base pay of civilian and military/uniformed personnel need to be raised to address the compensation gap. (Whereas clause)
Section 1. Compensation Adjustments for Government Personnel
a. National Government Agencies (NGAs) Including State Universities and Colleges (SUCs)
- i. Civilian Personnel: 10% increase over basic monthly salaries as of June 30, 2008, covered by the Compensation and Position Classification System under R.A. No. 6758, as amended. (Section 1.a.i)
- ii. Military and Uniformed Personnel: 10% increase over monthly base pay as of June 30, 2008, for Armed Forces of the Philippines, Department of the Interior and Local Government, Philippine Coast Guard, and National Mapping and Resource Information Authority. (Section 1.a.ii)
b. Government-Owned or Controlled Corporations (GOCCs)
- 10% increase over basic monthly salaries as of June 30, 2008, covered by the Compensation and Position Classification System under R.A. No. 6758, as amended, subject to availability of corporate funds. (Section 1.b)
c. Local Government Units (LGUs)
- 10% increase over basic monthly salaries as of June 30, 2008, subject to availability of local government funds. (Section 1.c)
Section 2. Exclusion
- Personnel of government agencies exempted by law from the coverage of R.A. No. 6758, as amended, are not entitled to the compensation adjustments. (Section 2)
Section 3. Fund Source
- For NGAs including SUCs: Charged against appropriate fund source under R.A. No. 9498 (FY 2008 General Appropriations Act), and thereafter included in the annual General Appropriations Act. (Section 3.a)
- For GOCCs: Charged against their respective corporate funds, subject to approval of their governing boards and applicable laws. Partial implementation allowed if funds are insufficient, with uniform percentage increase for all positions. (Section 3.b)
- For LGUs: Charged against their respective local government funds, subject to approval of their respective sanggunian pursuant to R.A. No. 7160 and other relevant statutes. Partial implementation allowed if funds are insufficient, with uniform percentage increase for all positions. (Section 3.c)
Section 4. Allowances and Benefits Based on a Percentage of the Basic Salary and Base Pay
- Except for year-end bonus, longevity pay for military and uniformed personnel, government counterpart to retirement and life insurance premiums, PAG-I.B.I.G. contributions, PHILHEALTH contributions, and Employees Compensation Insurance Premiums, all allowances and benefits computed as a percentage of salary or base pay shall not be increased. (Section 4)
Section 5. Applicability to Certain Constitutional Officials
- Salary increase for the President, Vice-President, Senators, and Members of the House of Representatives shall take effect only after the expiration of their respective terms of office, pursuant to the 1987 Philippine Constitution. (Section 5)
Section 6. Implementing Rules and Regulations
- The Department of Budget and Management shall prepare and issue the necessary rules and regulations to implement the provisions of this Executive Order. (Section 6)
Section 7. Effectivity
- The compensation adjustments shall take effect on July 1, 2008. (Section 7)
Compensation Adjustments for Government Personnel
- Efficient and effective civil service is crucial for the country's development. (Whereas clause)
- Compensation gap between public and private sectors, especially at higher professional and executive levels. (Whereas clause)
- Previous compensation adjustments in 2006 and 2007 focused on sub-professional and lower professional levels. (Whereas clause)
- Salaries and base pay of civilian and military/uniformed personnel need to be raised to address the compensation gap. (Whereas clause)
Section 1. Compensation Adjustments for Government Personnel
a. National Government Agencies (NGAs) Including State Universities and Colleges (SUCs)
- i. Civilian Personnel: 10% increase over basic monthly salaries as of June 30, 2008, covered by the Compensation and Position Classification System under R.A. No. 6758, as amended. (Section 1.a.i)
- ii. Military and Uniformed Personnel: 10% increase over monthly base pay as of June 30, 2008, for Armed Forces of the Philippines, Department of the Interior and Local Government, Philippine Coast Guard, and National Mapping and Resource Information Authority. (Section 1.a.ii)
b. Government-Owned or Controlled Corporations (GOCCs)
- 10% increase over basic monthly salaries as of June 30, 2008, covered by the Compensation and Position Classification System under R.A. No. 6758, as amended, subject to availability of corporate funds. (Section 1.b)
c. Local Government Units (LGUs)
- 10% increase over basic monthly salaries as of June 30, 2008, subject to availability of local government funds. (Section 1.c)
Section 2. Exclusion
- Personnel of government agencies exempted by law from the coverage of R.A. No. 6758, as amended, are not entitled to the compensation adjustments. (Section 2)
Section 3. Fund Source
- For NGAs including SUCs: Charged against appropriate fund source under R.A. No. 9498 (FY 2008 General Appropriations Act), and thereafter included in the annual General Appropriations Act. (Section 3.a)
- For GOCCs: Charged against their respective corporate funds, subject to approval of their governing boards and applicable laws. Partial implementation allowed if funds are insufficient, with uniform percentage increase for all positions. (Section 3.b)
- For LGUs: Charged against their respective local government funds, subject to approval of their respective sanggunian pursuant to R.A. No. 7160 and other relevant statutes. Partial implementation allowed if funds are insufficient, with uniform percentage increase for all positions. (Section 3.c)
Section 4. Allowances and Benefits Based on a Percentage of the Basic Salary and Base Pay
- Except for year-end bonus, longevity pay for military and uniformed personnel, government counterpart to retirement and life insurance premiums, PAG-I.B.I.G. contributions, PHILHEALTH contributions, and Employees Compensation Insurance Premiums, all allowances and benefits computed as a percentage of salary or base pay shall not be increased. (Section 4)
Section 5. Applicability to Certain Constitutional Officials
- Salary increase for the President, Vice-President, Senators, and Members of the House of Representatives shall take effect only after the expiration of their respective terms of office, pursuant to the 1987 Philippine Constitution. (Section 5)
Section 6. Implementing Rules and Regulations
- The Department of Budget and Management shall prepare and issue the necessary rules and regulations to implement the provisions of this Executive Order. (Section 6)
Section 7. Effectivity
- The compensation adjustments shall take effect on July 1, 2008. (Section 7)