MALACAÑAN PALACE
MANILABY THE PRESIDENT OF THE PHILIPPINES
EXECUTIVE ORDER NO. 40
IMPLEMENTATION OF THE THIRD TRANCHE OF THE MODIFIED SALARY SCHEDULE FOR CIVILIAN PERSONNEL AND BASE PAY SCHEDULE FOR MILITARY AND UNIFORMED PERSONNEL IN THE GOVERNMENT
WHEREAS, the Philippine Government has adopted the modified Salary Schedule for civilian personnel and the Base Pay Schedule for military and uniformed personnel as authorized in the Senate and House of Representatives Joint Resolution No. 4 (s. 2009) which shall be implemented in four (4) yearly tranches for personnel in national government agencies (NGAs);
WHEREAS, for personnel in government-owned or controlled corporations (GOCCs), government financial institutions (GFIs), and local government units (LGUs), the implementation of the modified Salary Schedule shall be in at least four (4) years depending on their financial capabilities, pursuant to item (13) of the Joint Resolution;
WHEREAS, the first tranche of the modified Salary Schedule and Base Pay Schedule have been implemented effective 1 July 2009 for personnel in NGAs, GOCCs, and GFIs, and effective 1 January 2010 for personnel in LGUs;
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Executive Orders
Implementation Of The Third Tranche Of The Modified Salary Schedule For Civilian Personnel And Base Pay Schedule For Military And Uniformed Personnel In The Government
Executive Order No. 40
Summary of Executive Order No. 40
Coverage and Exclusion (Section 1):
- Covers compensation adjustments for civilian personnel in the Executive, Legislative, and Judicial branches, Constitutional bodies, SUCs, GOCCs, GFIs, and LGUs, whether regular, casual, or contractual.
- Covers military personnel under DND and uniformed personnel under DILG, PCG, and NAMRIA.
- Excludes individuals engaged through job orders, contracts of service, or similar arrangements.
- Excludes civilian personnel in government entities exempted from RA No. 6758 and authorized to implement their own compensation systems.
Implementation of Third Tranche for National Government Civilian Personnel (Section 2):
- The Salary Schedule in Annex "A" shall be implemented effective June 1, 2011, for personnel in NGAs, GOCCs, and GFIs.
Implementation of Third Tranche for Military and Uniformed Personnel (Section 3):
- The Base Pay Schedule in Annex "B" shall be implemented effective June 1, 2011.
Implementation of Third Tranche for LGU Personnel (Section 4):
- Implementation for LGU personnel shall be determined by the sanggunian based on the LGU income class and financial capability.
- Salary rates shall not exceed specified percentages of the rates in Annex "A".
- The resulting Personal Services cost shall not exceed the PS limitation in LGU budgets.
- DBM shall issue the Third Tranche Monthly Salary Schedule for Local Government Personnel for each LGU income class, effective not earlier than January 1, 2012.
Inapplicability to Certain Officials (Section 5):
- No increase in compensation shall take effect until after the expiration of the full term of all Members of the Senate and the House of Representatives approving such increase.
Funding (Section 6):
- For NGAs, amounts shall be charged against the MPBF appropriation in the FY 2011 GAA and from available savings.
- For GOCCs and GFIs, amounts shall be charged against their respective corporate funds.
- For LGUs, 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 at uniform percentages of the rates in Annex "A".
- LGUs with insufficient funds shall implement salary schedules at uniform percentages of the respective Third Tranche Monthly Salary Schedules for Local Government Personnel.
Implementing Rules and Regulations (Section 8):
- DBM shall issue the necessary rules and regulations to implement this Executive Order.
Separability Clause (Section 9):
- If any provision is declared invalid or unconstitutional, the other provisions shall remain valid and subsisting.
Repealing Clause (Section 10):
- All orders, rules, regulations, and issuances inconsistent with this Executive Order are repealed, amended, or modified accordingly.
Effectivity (Section 11):
- This Executive Order shall take effect immediately.
Coverage and Exclusion (Section 1):
- Covers compensation adjustments for civilian personnel in the Executive, Legislative, and Judicial branches, Constitutional bodies, SUCs, GOCCs, GFIs, and LGUs, whether regular, casual, or contractual.
- Covers military personnel under DND and uniformed personnel under DILG, PCG, and NAMRIA.
- Excludes individuals engaged through job orders, contracts of service, or similar arrangements.
- Excludes civilian personnel in government entities exempted from RA No. 6758 and authorized to implement their own compensation systems.
Implementation of Third Tranche for National Government Civilian Personnel (Section 2):
- The Salary Schedule in Annex "A" shall be implemented effective June 1, 2011, for personnel in NGAs, GOCCs, and GFIs.
Implementation of Third Tranche for Military and Uniformed Personnel (Section 3):
- The Base Pay Schedule in Annex "B" shall be implemented effective June 1, 2011.
Implementation of Third Tranche for LGU Personnel (Section 4):
- Implementation for LGU personnel shall be determined by the sanggunian based on the LGU income class and financial capability.
- Salary rates shall not exceed specified percentages of the rates in Annex "A".
- The resulting Personal Services cost shall not exceed the PS limitation in LGU budgets.
- DBM shall issue the Third Tranche Monthly Salary Schedule for Local Government Personnel for each LGU income class, effective not earlier than January 1, 2012.
Inapplicability to Certain Officials (Section 5):
- No increase in compensation shall take effect until after the expiration of the full term of all Members of the Senate and the House of Representatives approving such increase.
Funding (Section 6):
- For NGAs, amounts shall be charged against the MPBF appropriation in the FY 2011 GAA and from available savings.
- For GOCCs and GFIs, amounts shall be charged against their respective corporate funds.
- For LGUs, 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 at uniform percentages of the rates in Annex "A".
- LGUs with insufficient funds shall implement salary schedules at uniform percentages of the respective Third Tranche Monthly Salary Schedules for Local Government Personnel.
Implementing Rules and Regulations (Section 8):
- DBM shall issue the necessary rules and regulations to implement this Executive Order.
Separability Clause (Section 9):
- If any provision is declared invalid or unconstitutional, the other provisions shall remain valid and subsisting.
Repealing Clause (Section 10):
- All orders, rules, regulations, and issuances inconsistent with this Executive Order are repealed, amended, or modified accordingly.
Effectivity (Section 11):
- This Executive Order shall take effect immediately.