DBM NATIONAL BUDGET CIRCULAR NO. 468, March 21, 2000

[ DBM NATIONAL BUDGET CIRCULAR NO. 468, March 21, 2000 ]

GUIDELINES FOR THE GRANT OF TEN PERCENT (10%) SALARY ADJUSTMENT TO ALL GOVERNMENT PERSONNEL EFFECTIVE JANUARY 1, 2000

1.0 PURPOSE

This Circular is being issued to prescribe rules and regulations to govern the implementation of new salary schedules in the Government under paragraphs 5.1.1 and 5.2 hereof as mandated under Executive Order (EO) No. 219 dated March 20, 2000, providing for 10% salary adjustment over the monthly basic salaries as of December 31, 1999 of government personnel, effective January 1, 2000.

2.0 COVERAGE

All positions whether permanent, temporary, contractual, casual or emergency in nature, appointive or elective, on full-time or part-time basis now existing or hereafter created in the national government, state universities and colleges and government-owned and/or controlled corporations and financial institutions.

3.0 EXEMPTIONS

3.1 Officials and employees of agencies which are exempt from the coverage of the Position Classification and Compensation System and/or do not follow the Salary Schedule prescribed for government employees.

3.2 Uniformed Personnel of the Philippine National Police.

4.0 DEFINITION OF TERMS

4.1 The present salary of an incumbent for purposes of this Circular shall mean the actual basic salary rate received as of December 31, 1999, exclusive of Personnel Economic Relief Allowance (PERA), Additional Compensation, Representation and Transportation Allowances, bonus and cash gift, honorarium, the 20% premium over basic pay of contractual personnel and any other forms of additional compensation usually paid in addition to basic salary but inclusive of transition allowance.

4.2 Transition allowance shall mean the excess of the present salary over the eighth step of the grade allocation of the employee’s position.

5.0 COMPENSATION RULES

5.1 For Civilian Personnel

5.1.1 The salary grades in the Salary Schedule prescribed under RA 6758 and the corresponding salary grade allocation of positions pursuant thereto shall be maintained. For purposes of the salary adjustment herein authorized, the monetary value of each salary step is hereby adjusted effective January 1, 2000, as indicated in the following Salary Schedule:

Salary Schedule for Civilian Personnel

Effective January 1, 2000

SG

STEP 1

STEP 2

STEP 3

STEP 4

STEP 5

STEP 6

STEP 7

STEP 8

SG

----------------------------------------------------------------------------------------------------------------

1

4,840

4,961

5,085

5,212

5,343

5,476

5,613

5,753

1

2

5,276

5,408

5,543

5,682

5,823

5,969

6,119

6,271

2

3

5,751

5,894

6,041

6,193

6,347

6,507

6,668

6,835

3

4

6,211

6,366

6,525

6,688

6,855

7,027

7,202

7,382

4

5

6,708

6,875

7,047

7,223

7,404

7,589

7,778

7,973

5

6

7,244

7,425

7,611

7,801

7,996

8,196

8,401

8,611

6

7

7,751

7,944

8,143

8,347

8,556

8,769

8,989

9,214

7

8

8,294

8,501

8,713

8,931

9,154

9,383

9,618

9,858

8

9

8,874

9,096

9,324

9,557

9,796

10,040

10,292

10,548

9

10

9,466

9,703

9,945

10,194

10,449

10,710

10,978

11,252

10

11

10,033

10,294

10,541

10,804

11,075

11,352

11,636

11,928

11

12

10,635

10,901

11,174

11,453

11,739

12,033

12,333

12,642

12

13

11,273

11,556

11,844

12,140

12,443

12,755

13,074

13,400

13

14

11,949

12,249

12,554

12,869

13,190

13,520

13,858

14,204

14

15

12,667

12,983

13,308

13,640

13,991

14,331

14,699

15,057

15

16

13,427

13,762

14,108

14,480

14,820

15,191

15,571

15,980

16

17

14,232

14,588

14,952

15,326

15,710

16,103

16,506

16,918

17

18

15,087

15,464

15,850

16,247

16,653

17,069

17,496

17,933

18

19

15,992

16,391

16,801

17,222

17,652

18,093

18,546

19,009

19

20

16,951

17,375

17,809

18,255

18,711

19,179

19,658

20,150

20

21

17,629

18,070

18,522

18,985

19,459

19,945

20,445

20,955

21

22

18,334

18,792

19,262

19,744

20,238

20,744

21,262

21,793

22

23

19,067

19,544

20,033

20,534

21,046

21,573

22,112

22,666

23

24

19,831

20,327

20,835

21,355

21,890

22,437

22,998

23,573

24

25

20,624

21,140

21,668

22,210

22,765

23,334

23,917

24,516

25

26

21,449

21,985

22,535

23,098

23,675

24,267

24,874

25,496

26

27

22,307

22,865

23,437

24,022

24,622

25,238

25,869

26,516

27

28

23,199

23,779

24,374

24,983

25,607

26,247

26,904

27,576

28

29

24,127

24,730

25,348

25,982

26,632

27,298

27,980

28,679

29

30

27,500

28,188

28,893

29,614

30,355

31,891

32,689

31,114

30

31

38,500

39,463

40,449

41,460

42,496

43,559

44,648

45,764

31

32

44,000

45,100

46,228

47,384

48,568

49,782

51,027

52,302

32

33

55,000

33

5.1.2 Incumbents shall receive the salary rates corresponding to their designated salary steps in the salary grade allocation of their positions as of December 31, 1999.

5.1.3 The transition allowance shall be considered as advance entitlement of the salary increase herein authorized. Any excess thereafter shall be deducted from whatever salary adjustments that such employee may be authorized in the future (Illustrative Examples A and A-1).

5.1.4 Appointments effective January 1, 2000 and thereafter shall be at the first step of the salary grade allocation of the position prescribed under Item 5.1.1 hereof. In case the appointee has previously received under an approved permanent appointment, a salary higher than the first step of the salary grade allocation, the existing salary rules shall apply as contained in Annex C of NBC 458.

5.1.5 The Personnel Economic Relief Allowance and Additional Compensation shall continue to be paid as allowances and are not considered integrated into the basic salary rates contained in the new Salary Schedule and therefore not subject to tax pursuant to Section 4 of Executive Order (EO) No. 219.

5.1.6 Contractual employees including seconded personnel to Foreign-Assisted Projects (FAPs) whose salaries are paid out of lump-sum appropriations or project funds shall be entitled to salary adjustment corresponding to their comparable regular provisions of RA 8760, the FY 2000 GAA and Section 2.1.1 of CSC-DBM Joint Circular No. 99-7, dated December 29, 1999, contractual personnel shall no longer be entitled to the 20% premium over the basic pay.

5.1.7 The Wage Rates of daily paid employees shall be computed by dividing the monthly salary rate shown in the Salary Schedule indicated under Item 5.1.1 hereof by twenty-two (22) working days, provided that the total wages received by a daily paid employee in a month shall not exceed said monthly salary rate.

5.1.8 The appropriate rates contained in the said Salary Schedule as the case maybe, shall be used as basis for computing retirement pay, year-end bonus and other similar benefits.

5.2 For Uniformed Personnel . The uniformed personnel of the Department of National Defense, the Bureau of Jail Management and Penology, Bureau of Fire Protection, Philippine Coast Guard and the Commissioned Officers and Enlisted Personnel of the NAMRIA shall be paid in accordance with the following Salary Schedule:

Salary Schedule for Uniformed Personnel Except PNP

Effective January 1, 2000

AFP/PCG BFP/BJMP/PPSC NAMRIA Commissioned Officers and Enlisted Personnel Base Pay

Enlisted Ranks

4,400

Candidate Soldier

Fire/Jail Officer I

Seaman, 1st Class

5,500

Private

Fire/Jail Officer II

Seaman, 2nd Class

5,830

Private, First Class

Fire/Jail Officer III

Seaman, 1st Class

6,160

Corporal

Non-Commissioned Officers

Sergeant

Senior Fire/Jail Officer I

Petty Officer III

7,040

Staff Sergeant

Senior Fire/Jail Officer II

Petty Office II

7,480

Technical Sergeant

Senior Fire/Jail Officer III

Petty Officer I

8,470

Master Sergeant

Senior Fire/Jail Officer IV

Chief Petty Officer

9,350

Sr. Master Sergeant

10,148

Chief Master Sergeant

10,945

Company Grade Officers

Cadet

Cadet

10,780

Prob. 2nd Lieutenant

11,660

Second Lieutenant

Ensign

12,540

First Lieutenant Inspector

Lieutenant, Jr. Grade

13,200

Captain

Senior Inspector

Lieutenant, Sr. Grade

13,640

Field Grade Officers

Major

Chief Inspector

Lt. Commander

14,190

Lieutenant Colonel

Superintendent

Commander

14,740

Colonel

Senior Superintendent

Captain

15,400

General Officers

Brigadier General

Chief Superintendent

Commodore

16,280

Major General

Director

16,830

Lieutenant General

17,710

General

18,260

The Uniformed Personnel of the Philippine National Police shall be paid in accordance with the provisions of Republic Act (RA) No. 8551 and RA No. 8760, the FY 2000 GAA and the implementing guidelines issued therefor.

6.0 PROHIBITION

6.1 Heads of all national government agencies and corporate entities are prohibited from granting any adjustment in excess of the amounts herein authorized.

6.2 In accordance with Section 6, Article VII and Section 10, Article VI of the Constitution, the salary adjustment of the President, the Vice-President, and the Members of the House of Representatives shall take effect only after the expiration of their respective present terms, and with the Senators, only after the expiration of the term of all the incumbent Senators.

7.0 FUNDING SOURCE

The funding sources for the amounts necessary to implement the new Salary Schedule shall be as follows:

7.1 For national government agencies, the amount shall be charged against their savings and from the Salary Adjustment Fund under RA 8760, the 2000 General Appropriations Act.

7.1.1 Agencies with fiscal autonomy are enjoined to fund their salary adjustment within the PS funds released to them pursuant to National Budget Circular No. 466 dated December 17, 1999.

7.1.2 The requirements for non-permanent employees including contractual positions in FAPs shall be sourced from their respective lump sum appropriations for salaries/wages reflected in the agency budget.

7.2 For government corporations and financial institutions, the amount shall come from their respective corporate funds. Government corporations which do not have adequate or sufficient funds shall only partially implement the established rates, provided, that any partial implementation shall be uniform and proportionate for all positions in each government corporation.

8.0 RELEASE OF FUNDS

8.1 The Department of Budget and Management (DBM) shall release the covering Notice of Cash Allocation (NCA) needed to implement the salary adjustment for permanent employees.

8.2 Requests for additional release for non-permanent positions except contractual positions in FAPs shall not be allowed. The cost to implement their salary adjustment shall be solely charged from their respective released lump sum appropriations.

9.0 PAYMENT OF SALARY ADJUSTMENT

9.1 Upon receipt of the NCA, agencies shall pay the required salary adjustment authorized herein.

9.2 Any salary adjustment under this Circular shall be subject to appropriate adjustments if found not in order upon review by DBM.

9.3 The Head of the agency shall notify the official/employee of any salary adjustment in accordance with this Circular through a Notice of Salary Adjustment (For individuals, ANNEX A *). A copy of this notice shall be furnished the GSIS, if the official/employee is a member thereof.

9.4 For officials/employees covered by similar information, such as classification of position, salary grade, present salary and adjusted salary, a Notice of Salary Adjustment (For Groups, Annex B *) shall be issued in lieu of the form prescribed in Section 9.3.A copy of the Notice shall be furnished the GSIS if the beneficiaries are members thereof.

10.0 POST-AUDIT

10.1 All Government Owned and/or -Controlled Corporations/Government Financial Institutions shall prepare for the purpose of the Circular, a Plantilla of Personnel and Salary Adjustment Form (PPSAF) as prescribed in Annex C [*] . A separate PPSAF shall be prepared for contractual, casual and emergency positions.

10.2 The original and three (3) copies of each of the said PPSAF which shall be certified correct by the Human Resource Management Officer/Administrative Officer and approved by the Head of the government agency shall be submitted for post-audit within thirty (30) days after the grant of the salary adjustment to the Budget and Management Bureau “D” (BMB “D”), DBM which shall examine and verify the said PPSAF based on its records and certify them accordingly. The certified copies shall then be distributed as follows:

10.2.1 one copy to the Civil Service Commission Regional Office and Field Office concerned;

10.2.2 one copy to the Commission on Audit, for compliance with auditing requirements;

10.2.3 one copy to the Office of origin; and

10.2.4 the original shall remain with the BMB “D” for records, control and post-audit purposes.

11.0 RESPONSIBILITY OF THE HEAD OF AGENCY

The Head of agency shall be responsible for the submission of the required reports. He shall be held personally liable for any payment of salary adjustment not in accordance with the provisions of the Circular, without prejudice however, to the refund of any excess payment by the employee concerned.

12.0 CONTRIBUTIONS

The salary adjustments herein authorized are subject to the mandatory requirements of GSIS life and retirement insurance premiums, and Home Development Mutual Fund (HDMF) contribution, if the recipient is a member of the GSIS and HDMF, pursuant to RA 660 and CA 186 with respect to retirement and life insurance premiums.

13.0 SAVING CLAUSE

Cases not covered by the provisions of this Circular shall be referred to the Secretary of Budget and Management for resolution.

14.0 EFFECTIVITY

This Circular shall take effect January 1, 2000.

Adopted: 21 March 2000

(SGD.) BENJAMIN E. DIOKNO

Secretary

[*] Annexes are Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City)