Third year implementation of the new salary schedule in the government

EXECUTIVE ORDER NO. 290 January 2, 1996

THIRD YEAR IMPLEMENTATION OF THE NEW SALARY SCHEDULE IN THE GOVERNMENT

WHEREAS, the government has adopted the new Salary Schedule contained in Joint Senate-House of Representatives Resolution No. 1, s. 1994 which shall be implemented within four (4) years or not later than 1997;

WHEREAS, the new Salary Schedule was partially implemented in 1994 and 1995 in accordance with Executive Orders No. 164 and 218;

WHEREAS, the amount of P19 billion is appropriated in the FY 1996 General Appropriations Act to cover, among others, the adjustment in basic salary of government personnel as authorized by said Joint Resolution for the third year implementation of the new Salary Schedule.

NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, P.D. 985, P.D. 1597 and RA 6758 as amended, do hereby order and direct:

SECTION 1. Third Interim Salary Schedules. The Department of Budget and Management is hereby directed to implement the attached Third Interim Salary Schedules...

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Summary of Executive Order No. 290

Third Year Implementation of the New Salary Schedule in the Government

- Directs the Department of Budget and Management to implement the attached Third Interim Salary Schedules (TISSs) for civilian and uniformed personnel effective January 1, 1996. (Section 1)
- The TISSs reflect an increase in basic salary of one thousand pesos (P1,000.00) per month or thirty per cent (30%) of the difference between the actual salary as of December 31, 1995 and the salary rate under the new Salary Schedule, whichever is higher. (Section 1)
- Where the difference is less than P1,000.00, the full amount of the difference shall be given. (Section 1)
- Heads of agencies shall not grant salary increase in excess of the authorized amount. (Section 1)

Coverage and Exemption:
- Covers officials and employees of National Government Agencies (NGAs), Government-Owned and/or Controlled Corporations (GOCCs), Government Financial Institutions (GFIs), and Local Government Units (LGUs) whose basic salaries conform to the Second Interim Salary Schedule. (Section 2)
- Exempts agencies that are exempt from the Position Classification and Compensation System and/or do not follow the Salary Schedule prescribed for government employees. (Section 2)

Continuation of Allowances:
- The Personnel Economic Relief Allowance and Additional Compensation authorized under RA 7078 and Administrative Order No. 53, respectively, shall continue to be paid as allowances and not integrated into the basic pay. (Section 3)

Allowances and Benefits Based on Percentage of Basic Salaries:
- There shall be no increase in the present allowances and benefits of officials and employees of GOCCs and GFIs which are based on percentage of their basic salaries. (Section 4)

Funding Sources:
- For NGAs, the amount shall be charged against the appropriations set aside for the purpose in the 1996 General Appropriations Act and from their savings. (Section 5a)
- For GOCCs and GFIs, the amount shall be charged against their respective corporate funds. (Section 5b)
- For LGUs, the amount shall be charged against their respective local funds. (Section 5c)
- GOCCs, GFIs and LGUs which do not have adequate or sufficient funds shall only partially implement the established rates uniformly and proportionately for all positions. (Section 5)

Applicability to Certain Constitutional Officials:
- The salary increase for the President, Vice-President, Senators and Members of the House Representatives shall take effect only on July 1, 1998. (Section 6)

Implementation Guidelines:
- The Department of Budget and Management shall prepare and issue the necessary guidelines for the implementation of this Executive Order. (Section 7)

Effectivity:
- This Executive Order shall take effect January 1, 1996. (Section 8)