Implementation Of The Fourth Tranche Of The Modified Salary Schedule For Civilian Personnel And Base Pay Schedule For Military And Uniformed Personnel In The Government

Case Overview and Summary

Executive Order No. 76 s.2012

Implementation of the Fourth Tranche of the Modified Salary Schedule for Civilian Personnel and Base Pay Schedule for Military and Uniformed Personnel in the Government

• Coverage and Exclusions (Section 1):
- Covers civilian personnel in the Executive, Legislative, and Judicial Branches, Constitutional Commissions/Offices, State Universities and Colleges, GOCCs, GFIs, and LGUs, whether regular, casual, or contractual, appointive or elective, full-time or part-time. (Section 1a)
- Covers military personnel under the DND and uniformed personnel under the DILG, PCG, and NAMRIA. (Section 1b)
- Excludes individuals and groups engaged through job orders, contracts of services, or others similarly situated. (Section 1ci)
- Excludes civilian personnel in government entities exempted from R.A. No. 6758 and authorized to adopt their own compensation and position classification systems. (Section 1cii)

• Implementation of the Fourth Tranche Monthly Salary Schedule for Civilian Personnel of the National Government (Section 2):
- The Salary Schedule in Annex "A" shall be implemented effective June 1, 2012, for national government personnel.
- For the President, Vice President, and Cabinet Secretaries, the fourth tranche shall be effective July 1, 2012.

• Implementation of the Fourth Tranche Monthly Base Pay Schedule for Military and Uniformed Personnel (Section 3):
- The Base Pay Schedule in Annex "B" shall be implemented effective June 1, 2012.

• Implementation of the Fourth Tranche Monthly Salary Schedule for LGU Personnel (Section 4):
- The implementation shall be determined by the sanggunian based on the LGU income class and financial capability.
- The salary rates shall not exceed the applicable percentages of the salary rates in Annex "A".
- The resulting Personal Services (PS) cost shall not exceed the PS limitation in LGU budgets.
- There shall be no diminution in the basic salaries of incumbents for complying with the PS limitation.
- The DBM shall issue the "Fourth Tranche Monthly Salary Schedule for Local Government Personnel" for each LGU income class, effective not earlier than January 1, 2013.

• Inapplicability to Certain Officials (Section 5):
- No increase in compensation of Senators and Members of the House of Representatives shall take effect until after the expiration of their full term.

• Fund Sources (Section 6):
- For NGAs, the amounts shall be charged against the MPBF in the FY 2012 GAA and from available savings, and thereafter included in the annual GAA.
- For GOCCs and GFIs, the amounts shall be charged against their respective corporate funds.
- For LGUs, the amounts shall be charged against their respective local government funds.

• Uniform Implementation in Case of Insufficiency of Funds (Section 7):
- GOCCs and GFIs with insufficient funds shall implement salary schedules with lower rates than, but at uniform percentages of the salaries in Annex "A".
- LGUs with insufficient funds shall implement salary schedules with lower rates than, but at uniform percentages of the rates in the "Fourth Tranche Monthly Salary Schedule for Local Government Personnel" for their respective LGU income classes.

• Implementing Rules and Regulations (Section 8):
- The DBM shall prepare and issue the necessary rules and regulations to implement this Executive Order.

• Separability Clause (Section 9)

• Effectivity (Section 10):
- This Executive Order shall take effect immediately.