Second year of implementation of the new salary schedule in the government

Case Overview and Summary

Summary of Executive Order No. 218

New Salary Schedule (Section 1):
- The Department of Budget and Management is directed to implement a second interim Salary Schedule effective January 1, 1995.
- The new Salary Schedule reflects an increase of one thousand pesos (P 1,000.00) over the basic monthly salaries of government personnel as of December 31, 1994.
- Heads of government agencies, government-owned and controlled corporations, and local government units shall not grant compensation adjustment in excess of the authorized amount.

Coverage (Section 2):
- Covers all officials and employees of the national government, government-owned and controlled corporations (including government financial institutions), and local government units, whose basic salaries conform to the new Salary Schedule prescribed under Executive Order No. 164.
- Officials and employees whose basic pay are higher than those prescribed under the new Salary Schedule are not entitled to the salary increase.

Continuation of Allowances (Section 3):
- Personnel Economic Relief Allowance and the additional compensation authorized under Administrative Order No. 53 shall continue to be paid as allowances and not integrated into basic pay.

Funding Sources (Section 4):
- For national government entities, the amount shall be charged against the appropriations set aside for the purpose in the 1995 General Appropriations Act and from savings generated from the different departments, bureaus, offices, and agencies.
- For government-owned and/or controlled corporations (GOCCs), the amount shall come from their respective corporate funds.
- For local government units (LGUs), the amount shall be charged against their respective local funds.
- GOCCs and LGUs which do not have adequate or sufficient funds shall only partially implement the established rates, provided that the partial implementation shall be uniform and proportionate for all positions.

Applicability to Constitutional Officials (Section 5):
- The compensation adjustment for the President, Vice-President, and Members of the House of Representatives shall take effect only after the expiration of the respective term of the present incumbents.
- For Senators, the compensation adjustment shall take effect only after the expiration of the term of all the incumbent Senators.

Implementing Guidelines (Section 6):
- The Department of Budget and Management shall prepare and issue the necessary guidelines for the implementation of this Executive Order.

Effectivity (Section 7):
- This Executive Order shall take effect January 1, 1995.