Providing for an Internal Revenue Service Career System in the Bureau of Internal Revenue and for Other Purposes

Case Overview and Summary

EXECUTIVE ORDER NO. 1042

Providing for an Internal Revenue Service Career System in the Bureau of Internal Revenue and for Other Purposes

- Adopts and implements an Internal Revenue Service Career System in the Bureau of Internal Revenue (BIR) for selection, training, promotion, assignment, incentives, and recognition of personnel. (Section 1)

- Realigns, restructures, and upgrades the position classes in the BIR as provided in Annex A. (Section 2)

- Establishes a standard staffing pattern in the BIR, with positions under the Enforcement Officers and Tax Counselling Occupational groups constituted into a pool for assignment based on workloads and employees' capabilities and potential, without reduction in rank, status, or salary. (Section 3)

- Grants allowances and fringe benefits to BIR officials and employees, including:
• Cost of living, clothing, transportation, representation, quarters, and similar allowances, including overtime pay at rates not exceeding those for government financial institutions. (Section 4a)
• Reimbursement of actual legal expenses incurred in good faith in suits brought in court and Fiscals' Offices, at rates prescribed by the Commissioner of Internal Revenue. (Section 4b)
• Reimbursement of actual and necessary travel and other expenses incurred in official travel, upon approval of the Commissioner, notwithstanding Presidential Decree No. 344. (Section 4c)
• Incentive award for outstanding work performance against them for acts committed in the performance of their official duties, upon exoneration from administrative or criminal liability. (Section 4d)
• Hazard pay benefits for officials and employees assigned in areas declared as strife-torn or danger zones by the Ministry of National Defense. (Section 4e)
• Special Counsel allowance for lawyers of the Bureau, at an amount fixed by the Commissioner. (Section 4f)
• Automatic one-step salary increase for officials and employees who will retire under the compulsory retirement scheme, one year before reaching the automatic retirement age, provided they have rendered satisfactory service for the immediate past five years prior to retirement. (Section 4g)

- Provides guidelines for the implementation of salary adjustments and the new staffing pattern, including:
• Salary adjustments shall be implemented immediately, while allowances, fringe benefits, and the new staffing pattern shall be phased, depending on availability of funds. (Section 5a)
• The first step of the salary grade shall be the hiring rate for new employees. (Section 5b)
• An employee may be allowed a higher salary rate within the grade allocation of the position if they had previously received a higher salary in the government service. (Section 5c)
• If an employee is promoted, they shall be entitled to the step next above their previous salary in the lower class. (Section 5d)
• Subject to satisfactory service certification, employees shall be adjusted to higher salary steps after specified periods of time. (Section 5e)
• No officer or employee shall receive a salary higher than their immediate superior. (Section 5f)
• Incumbent officers and employees shall continue in office pending reappointment to positions in the new staffing pattern, without demotion, change of status, or reduction in salary. (Section 5g)

- Positions in the BIR shall automatically be granted any general increase in salary, allowances, or benefits for government employees, notwithstanding the prescribed ceiling. (Section 6)

- The BIR budget for Personal Services shall be used for implementation, with any deficiency funded from the BIR Special Fund, created from 1 1/2% of the increase in total collections achieved during the immediate preceding year over the previous year. (Section 7)

- The Commissioner of Internal Revenue shall issue rules and regulations needed to implement this Executive Order, subject to the approval of the Minister of Finance. (Section 8)

- This Executive Order shall take effect upon approval. (Section 9)