executive_order EXECUTIVE ORDER No. 95EXECUTIVE ORDER No. 95

EXECUTIVE ORDER NO. 95, September 16, 2025

[ EXECUTIVE ORDER NO. 95, September 16, 2025 ]

APPROVING THE COMPENSATION AND POSITION CLASSIFICATION SYSTEM II AND PAY GRADES FOR GOVERNMENT-OWNED OR -CONTROLLED CORPORATIONS, REPEALING EXECUTIVE ORDER NO. 150 (S. 2021), AND FOR OTHER PURPOSES

WHEREAS , Section 5, Article IX-B of the Constitution mandates the Congress to provide for the standardization of compensation of government officials and employees, including those in government-owned or -controlled corporations (GOCCs) with original charters, taking into account the nature of the responsibilities pertaining to, and the qualifications required for their positions;

WHEREAS, Section 8 of Republic Act (RA) No. 10149 or the "GOCC Governance Act of 2011" mandates the Governance Commission for GOCCs (GCG), after conducting a compensation study, to develop a Compensation and Position Classification System (CPCS) for GOCCs that consists of classes of positions grouped into such categories as the GCG may determine, subject to the approval of the President;

WHEREAS, on 01 October 2021, Executive Order (EO) No. 150 (s. 2021) approved the CPCS I and the Index of Occupational Services, Position Titles, and Job Grades for GOCCs (IOS0G) Framework for the GOCC Sector;

WHEREAS, EO No. 150 applied the CPCS I and the IOS-G Framework to all GOCCs, Government Financial Institutions (GFIs), Government Instrumentalities with Corporate Powers (GICPs)/Government Corporate Entities (GCEs), including their subsidiaries, unless excluded from the coverage of RA No. 10149;

WHEREAS, Section 9 of EO No. 150 provides that the GCG En Banc shall review the CPCS three (3) years after its effectivity, and every three (3) years thereafter, taking into account the performance of GOCCs, their overall contribution to the national economy, and the possible erosion in purchasing power due to inflation and other factors;

WHEREAS, pursuant to the foregoing mandate and in consideration of emerging sectoral needs, the GCG undertook a comprehensive evaluation of the CPCS I under EO No. 150 and consulted various stakeholders to develop a more responsive compensation system for the GOCC sector;

WHEREAS, such study and consultations identified opportunities to enhanced the CPCS I, particularly in refining job grade distinctions and improving access to employee health benefits, prompting the GCG to develop CPCS II with key enhancements, including salary adjustments to address job grade distortions and the introduction of medical allowance to support employee welfare; and

WHEREAS, after exhaustive deliberation and review, the GCG En Banc, through GCG Resolution No. 02 (s. 2025), has resolved to approve and endorse CPCS II, and submitted the same to the President of the Philippines for adoption and approval;

NOW, THEREFORE, I, FERDINAND R. MARCOS, JR., President of the Philippines, by virtue of the powers vested in me by the Constitution and existing laws, do hereby order:

Section 1. Coverage. The CPCS II attached thereto is hereby approved and shall apply to all GOCCs, GFIs, GICPs/GCs (hereinafter collectively referred to as GOCCs), including their subsidiaries, unless excluded from the coverage of RA No. 10149.

The CPCS II is hereby confirmed not to apply to GOCCs with approved dispositive actions such as merger (exclusively referring to the GOCC to be absorbed), consolidation, abolition, deactivation, privatization, or such other related action as may be determined by GCG. The GCG shall have the authority to formulate the appropriate compensation framework for GOCCs falling under this paragraph, benchmarked against the Total Compensation Framework provided in the CPCS II.

The GCG shall have the authority to convert or revise the existing position classification system of GOCCs to align with the CPCS II under this Order. All positions in GOCCs shall then be allocated by GCG to their proper position titles and pay grades in the IOS-G to be issued by GCG pursuant to Section 14 hereof.

Section 2. No Authority to Negotiate/Bargain on the Economic Terms and Conditions of Collective Negotiation Agreements (CNAs)/Collective Bargaining Agreements (CBAs). While recognizing the Constitutional rights of workers to self-organization, collective bargaining, and negotiations, the Governing Boards of GOCCs shall not negotiate the economic terms and conditions of the CNAs/CBAs with their respective officers and employees.

CNA incentives shall be guided by the policies and guidelines established by the Department of Budget and Management (DBM) and shall be extended to cover non-chartered GOCCs to promote uniformity of allowable incentives within the GOCC Sector.

Section 3. Effective Dates of the CPCS II. GOCCs that have already implemented the CPCS I under EO No. 150 may adopt the monthly basic salaries (MBS) under this Order and the enhanced allowances, benefits, and incentives (ABIs) retroactive to 01 January 2025, upon receipt of their Authority to Implement (ATI) from GCG.

The MBS structure and ABIs of the a GOCC that has not yet implemented the CPCS I under EO No. 150, and which seeks to implement the CPCS II, shall be made effective upon issuance of their corresponding ATI from GCG.

Section 4. Non-Diminution of Authorized Salaries. In the implementation of the CPCS II, there shall be no diminution in the existing authorized salaries of incumbent officers and employees of GOCCs. For purposes of this Order, authorized salaries shall refer to the salary structure that has been duly authorized by the Office of the President (OP), GCG, and/or by law. An approval of the salary structure from the GOCC Governing Board alone, shall not be considered as authorization.

Section 5. Compensation System. The existing compensation granted by GOCCs to its officers and employees, including any approved enhancements made to the same, shall be standardized in accordance with the CPCS II approved under this Order. No additional compensation outside the CPCS II shall be granted by the GOCC Governing Board, unless the same has been endorsed by the Supervising Agency, recommended by GCG, and approved by the President.

GOCCs under the supervision of OP shall submit their request under this provision directly to GCG after approval by their respective Governing Boards. Thereafter, the GCG shall submit its recommendation to OP.

Section 6. Rationalization of the Provident Fund. The CPCS II rates on the contributions to the Provident Fund shall apply to GOCCs, subject to the rationalization measures outlined in the CPCS II.

Section 7. Application of Step Increment. All officers and employees of GOCCs that have not yet implemented the CPCS I under EO No. 150 shall automatically start at Step 1 of the prescribed MBS structures in the CPCS II, unless otherwise provided therein. The progressions in the step increments may be adjusted, subject to the implementing guidelines to be issued by GCG.

GOCCs that are already implementing the CPCS I under EO No. 150 shall continue with their salary step progression, subject to the implementing guidelines to be issued by GCG.

Section 8. Periodic Review of the CPCS. The GCG En Banc shall review the CPCS three (3) years after its effectivity, and every three (3) years thereafter, taking into account the performance of GOCCs, their overall contribution to the national economy, their strategic importance, and the possible erosion in purchasing power due to inflation and other factors.

Notwithstanding the foregoing provision, the GCG En Banc may recommend specific adjustments to the CPCS II, as may be necessary, for approval of the President.

Section 9. Reports. The GCG shall submit to the President, through the Office of the Executive Secretary, a bi-annual report that shall include, among other, a summary of the authorizations issued by GCG for all covered GOCCs and the status of implementation of this Order.

Section 10. Funding. The implementation of compensation adjustments shall depend on the financial capability of a GOCC and its corporate operating budget (COB) as approved by the GOCC Governing Board and DBM.

The amounts required for the implementation of the CPCS II shall be charged against the GOCC's Personnel Services appropriations under its approved COB, provided that a GOCC shall be prohibited to source payment from the following:

a. Loans;

b. Sale of GOCC's asset/s for the sole purpose of compensation adjustment; and

c. Other schemes analogous to the foregoing.

GOCCs shall not increase their service fees for the purpose of augmenting deficiencies in the amounts prescribed herein, and neither shall compensation adjustments adversely affect the implementation of programs/projects, as well as the attainment of performance targets.

For GOCCs subsidized by the National Government, the amounts required for the implementation of the CPCS II shall not entail additional subsidy or equity from the National Treasury.

Section 11. Affordability. GOCCs in Category 1 of the CPCS II that do not have adequate or sufficient funds to implement the rates thereunder, as may be determined by GCG, shall partially implement the salary schedule under this Order at a lower uniform percentage across all positions for every GOCC.

GOCCs in Categories 2 and 3 of the CPCS II that do not have adequate or sufficient funds to implement the rates thereunder, as may be determined by GCG, shall adopt the salary schedule of lower tiers or that of Category 1.

Section 12. Mandatory Action and Separation Incentive Pay. Any GOCC that fails or refuses to implement the CPCS II rates, or the lower amounts provided under Section 11 as may be applicable, shall undergo a mandatory action ad be reorganized, merged, streamlined, abolished, or privatized pursuant to Section 5(a) of RA No. 10149, upon recommendation of the GOCC's Supervising Agency.

All officers and employees who will be affected by the mandatory action in view of the implementation of the CPCS II shall be granted separation incentive pay (SIP) using the following formula, unless GCG recommend lower rates to OP:

YEARS OF SERVICE

RATES

First 20 years

1.00 x MBS x No. of years

20 years and 1 day to 30 years

1.25 x MBS x No. of years

30 years and 1 day and above

1.50 x MBS x No. of years

"Years of Service" shall be understood as either Government Service or GOCC Service. For the purpose of computing the applicable early retirement incentive (ERI) or SIP, the specific years of service to be credited shall depend on the Category and Tier of the GOCC. In this regard, the GCG shall issue the necessary guidelines for the implementation of this provision to be submitted to the President for approval.

Section 13. Involuntary Separation and Early Retirements Incentive. Pursuant to Section 5(a) of RA No. 10149, the GCG En Banc is hereby authorized, at its discretion, to grant ERI to officers and employees who voluntarily elect to be retired, and SIP to those involuntarily separated from service, in accordance with the rates provided under Section 12 of this Order, unless adjusted rates are recommended to and approved bu OP. The grant of ERI and SIP under this Order shall be prospective, and is in addition to retirement or separation benefits under existing laws, such as RA No. 8291 or the "Government Service Insurance System Act of 1997," RA No. 8282 or the "Social Security Act of 1997," or Presidential Decree No. 442 or the "Labor Code of the Philippines," as amended, taking into consideration the Constitutional proscription against double compensation.

The ERI and SIP authorized under this Order shall not be applicable to GOCCs which may already be entitled to ERI and/or SIP provided by other EOs issued by OP.

Upon recommended personnel action of a GOCC, whether pursuant to Section 5(a) of RA No. 10149 or otherwise, the GCG En Banc, may also authorize the grant of ERI and/or SIP to officers and employees who may qualify. In this regard, the GCG shall submit, for approval of the President, the relevant guidelines to implement this provision.

The GCG, as the Implementing Agency of this Order, is hereby authorized to resolve any question that may arise from this provision.

Section. 14. IOS-G Framework . The GCG shall issue, upon approval of the President, the IOS-G Framework for the GOCC Sector relative to CPCS II. Pending issuance of the aforementioned IOS-G Framework, the GCG may refer to the DBM 2022 Index of Occupational Services to determine the proper position titles and for such other purposes as may deemed necessary by GCG.

Section 15. Implementing Guidelines. The GCG En Banc is hereby authorized to issue implementing or clarificatory guidelines as may be necessary to carry out the objectives of this Order and/or the attached CPCS II, including, but not limited to, those relating to affordability, step increments, hiring rates, overtime pay, night shift differential, merit increases, separation pay programs, and grant of higher Performance-Based Bonus (PBB) rates for GOCCs under Categories 2 or 3 of CPCS II, taking into consideration prevailing practices in the private sector and the guiding principles provided in CPCS II.

The guidelines on the grant of higher PBB rates for GOCCs under Categories 2 or 3 of CPCS II shall be submitted for approval of the President.

The DBM shall provide such relevant assistance to the GCG, as may be necessary, in the issuance of guidelines on matters pertaining to compensation adjustments of GOCCs.

Section 16. Separability Clause. If any provision of this Order is declared invalid or unconstitutional, the other provisions not affected thereby shall remain valid and subsisting.

Section. 17. Repeal. EO No. 150 is hereby repealed. All other orders, rules and regulations, issuances, or any part thereof, which are inconsistent with the provisions of this Order, are hereby repealed or modified accordingly.

Section 18. Effectively. This Order shall take effect immediately upon publication in the Official Gazette or in a newspaper of general circulation.

DONE, in the City of Manila, this 16 th day of September, in the year of Our Lord, Two Thousand and Twenty-Five.

(SGD.) FERDINAND R. MARCOS, JR.

By the President:

(SGD.) LUCAS P. BERSAMIN Executive Secretary

CPCS II ATTACHED TO EXECUTIVE ORDER NO. 95 (S. 2025)

COMPENSATION AND POSITION CLASSIFICATION SYSTEM II FOR THE GOCCS COVERED BY REPUBLIC ACT NO. 10149

I. GUIDING PRINCIPLES. This Compensation and Position Classification System (CPCS) II shall be implemented, enforced, and interpreted in accordance with the following guiding principles:

1. The CPCS II has been designed to provide government-owned or -controlled corporations (GOCCs) with adequate operational autonomy and flexibility towards ensuring efficient and effective implementation of a total compensation framework within their organizations to ensure that:

(a) The adoption of reasonable, justifiable and appropriate remuneration schemes prevents or deters the granting of unconscionable and/or excessive remuneration packages;

(b) The total compensation framework shall generally be comparable with the private sector doing comparable work in order to attract, engage, and retain the right talent and in compliance with prevailing laws on minimum wages;

(c) The compensation frameworks adopted by GOCCs shall operate within their affordability limits and sustainability capacities, and in accordance with their GOCC classification as provided herein;

(d) There shall be adherence to the principle of equal pay for work of equal value, with due regard for other verifiable factors such as the sector where the GOCCs are classified; and

(e) The rewards system supports and encourages performance-driven, productive, and efficient organizations.

2. The CPCS II shall be updated periodically by the Governance Commission for GOCCs (GCG) based on the following parameters:

(a) A review of the GOCC compensation rates every three (3) years, without prejudice to the provisions of the Executive Order (EO) to which this CPCS II is attached;

(b) The performance of the GOCC and its overall contribution to the national economy;

(d) Implementation of new compensation schemes in National Government Agencies.

II. DEFINITION OF TERMS.

"Authorized Allowances, Benefits, and Incentives (ABIs)" refer to the financial or non-financial compensation that has been duly authorized by the President of the Philippines and/or by law. An approval from the GOCC Governing Board alone, regardless if the GOCC is chartered or non-chartered, shall not be considered as authorization.

"Authorized Salaries" refer to the salary structure that has been duly authorized by the President of the Philippines, GCG, and/or by law. An approval of the salary structure from the GOCC Governing Board alone, regardless if the GOCC is chartered or non-chartered, shall not be considered as authorization.

"Board of Directors/Trustees" or "Governing Board" refers to the collegial body that exercises the corporate powers, conducts all business and controls or holds all properties of a GOCC, whether it formally referred to as the "Board of Directors," "Board of Trustees" or some other term in its Charter, Articles of Incorporation or By-Laws.

"Charter" refers to a law or statute creating a chartered GOCC and defining its franchise.

"Chartered GOCC" refers to a GOCC, including Government Financial Institutions, created and vested with function by a special law.

"Chief Executive Office (CEO)" refers to the highest-ranking corporate executive who could be named as the President or the General Manager, Chief Operating Officer, Executive Director, or Administrator of a GOCC.

"Commercial GOCCs" refer to GOCCs that undertake operations or provide service that compete with the private sector. Such commercial activities can include, but not limited to:

a. Design and conceptualization of the products/services;

b. Manufacturing and production of the products/services;

c. Sales;

d. Logistics involved in delivering the products/services to the end customer;

e. Customer service;

f. Property development and management;

g. Banking operation; and

h. Extractive industries ( e.g. oil, gas).

"Collection Negotiation Agreement (CNA) or "Collection Bargaining Agreement (CBA)" refers to the negotiated contract between an accredited employees' organization representing a negotiating unit and the employer/management concerning terms and conditions of employment and improvements thereof that are not fixed by law.

"Employee" when used with reference to a person in the public service, includes any person in the service of the Government or any of its agencies, divisions, subdivisions, or instrumentalities.

"Full-Time Equivalent (FTE) Employees" refer to employees holding plantilla positions in a GOCC.

"GCG or the Governance Commission" refers to the lead Implementing Agency of the CPCS, including this CPCS II, for the GOCC Sector.

"GCG En Banc" refers to the collegial body composed of the GCG Chairperson and two (2) Commissioners, and the Secretaries of the Department of Budget and Management (DBM) and the Department of Finance, that exercises regulatory, supervisory, and policy-making functions for GOCCs covered by Republic Act (RA) No. 10149 or the "GOCC Governance Act of 2011."

"Government Financial Institutions (GFIs)" refer to financial institutions or corporations in which the Government directly or indirectly owns majority of the capital stock and which are either: (1) registered with or directly supervised by the Bangko Sentral ng Pilipinas (BSP); (2) collecting or transacting funds or contributions from the public and places them in financial instruments or assets such as deposits, loans, bonds and equity including, but not limited to, the Government Service Insurance System and the Social Security System.

"Government Instrumentalities with Corporate Powers (GICPs)/Government Corporate Entities (GCEs)" refer to instrumentalities or agencies of the Government, which are neither corporations nor agencies integrated within the Departmental Framework, but vested by law with special functions or jurisdiction, endowed with some if not all corporate powers, administering special funds, and enjoying operational autonomy usually through a charter including, but not limited to, the following: the Manila International Airport Authority, Philippine Ports Authority, Philippine Deposit Insurance Corporation, Metropolitan Waterworks and Sewerage System, Laguna Lake Development Authority, Philippine Fisheries Development Authority, Bases Conversion and Development Authority, Cebu Port Authority, Cagayan de Oro Port Authority, San Fernando Port Authority, Local Water Utilities Administration, and Asian Productivity Organization.

"Government-Owned or -Controlled Corporation (GOCC)" refers to any agency organized as a stock or non-stock corporation, vested with functions relating to public needs whether governmental or proprietary in nature, and owned by the Government of the Republic of the Philippines directly or through its instrumentalities either wholly or, where applicable, as in the case of stock corporations, to the extent of at least a majority of its outstanding capital stock: Provided, however, That for purposes of the CPCS II, the term "GOCC" shall include GICP/GCE and GFI as define herein.

"Job Grade" refers to the numerical representation of the relative internal values of jobs in a GOCC's plantilla in accordance with the CPCS attached to EO No. 150 (s. 2021).

"Monthly Basic Salary (MBS)" refers to the amount actually received per month by an officer or employee and determined in accordance with the applicable salary structure, policies, and guidelines of the CPCS, including this CPCS II.

"National Government" refers to the entire machinery of the central government, as distinguished from the different forms of local governments.

"Non-chartered GOCC" refers to a GOCC organized and operating under the applicable Corporation Code of the Philippines.

"Non-commercial GOCCs" refers to GOCCs whose primary operations do not compete with the private sector, such as:

a. Non-governmental business enterprises, as determined by the Commission on Audit;

b. GICPs;

c. Those organized for cultural, educational, civic, scientific, or charitable purposes;

d. Those with social protection objectives;

e. Those which have privatized operations and primarily generate revenue through collection of concession fees;

f. Those primarily derive business income from activities undertaken for developmental purposes ( e.g., interest on investments, lease or sale of properties);

g. Those which are conduits for sector development;

h. Marketing arms of the National Government to support its programs;

i. Those which primarily generate revenue through fees borne out of their regulatory powers; and

j. Registered as non-stock, non-profit corporations, including foundations.

"Officer" refers to a person whose duties, not being of a clerical or manual nature, involve the exercise of discretion in the performance of the functions of the Government. When used with reference to a person having authority to do a particular act or perform a particular function in the exercise of governmental power, "officer" includes any government employee, agent, or body having authority to do the act or exercise that function.

"Parent GOCC" refers to a GOCC that owns, holds, or controls, directly or indirectly, through one or more intermediaries, at least a majority of the outstanding capital stock of the subsidiary.

"Pay Grade (PG)" refers to the numerical representation of the relative internal values of jobs in a GOCC's plantilla. The PG will dictate the MBS of said jobs based on the Salary Structure under this CPCS II.

"Supervising Agency" refers to a government agency to which a GOCC is attached for purposes of policy and program coordination and for general supervision.

"Total Compensation Framework (TCF)" refers to all financial and non-financial compensation components such as basic salaries, ABIs, and variable pay.

III. COVERAGE. The CPCS II shall apply to all GOCCs, including their subsidiaries, which are covered by RA No. 10149.

The CPCS II shall apply to all positions on regular, contractual, or casual basis, now exiting or hereafter created in GOCCs, whether chartered or non-chartered, and whether previously covered by, or previously exempted from, RA No. 6758 or the "Compensation and Position Classification Act of 1989."

IV. EXCLUSION. The CPCS II shall not apply to the BSP, state universities and colleges, cooperatives, local water districts, economic zone authorities, and research institutions which are expressly outside the coverage of RA No. 10149.

GOCCs with approved dispositive actions such as merger (exclusively referring to the GOCC to be absorbed), consolidation, abolition, deactivation, privatization, or such other related action as determined by the GCG shall not be covered by the CPCS II. The GCG shall have the authority to formulate the appropriate compensation for GOCCs falling under this paragraph in accordance with Section 1 of the EO on CPCS II.

Excluded also from the coverage of the CPCS II are those individuals hired by GOCCs without employer-employee relationships and paid from non-Personnel Services appropriations/budgets, as follows:

(a) Consultants and experts hired to perform specific activities or services with expected outputs;

(b) Laborer hired through job contracts ( pakyaw) and those paid on piecework basis;

(d) Those whose services are engaged through job orders, contracts of service, or others similarly situated.

Finally, members of the Governing Board, except for the CEO, are likewise excluded from the CPCS II.

V. GOCC CLASSIFICATION UNDER THE CPCS II. All GOCCs will be categorized and graded under the CPCS II with due regard to the financial capability of the GOCC, in accordance with RA No. 10149. Measures of a GOCC's magnitude and complexity which will determine the GOCC grade required for the organization to operate and deliver its mandate/s will also be considered to determine the GOCC's classification under the CPCS II. If circumstances so warrant, the GCG may review the category, tier, and/or GOCC grade of all GOCCs that have already implemented the CPCS, whether under EO No. 150 or this CPCS II. Until the GCG En Banc provides otherwise, the following rules shall apply for the classification of GOCCs for purposes of the CPCS II:

1. GOCC CATEROGIZATION - GOCCs shall be categorized based on their nature of operations and financial viability to sustain their operations/activities. The GOCCs shall be categorized based on the following descriptors:

CATEGORY

DESCRIPTORS

Category 1

GOCCs that are not self-sustaining either because:

* They rely on National Government subsidies to fund their day-to-day operations; and/or

* They have an average net loss for the last three (3) years, regardless whether they receive subsidies or not.

Further, at the time of initial CPCS II implementation, GOCCs that failed to submit the required information on their financials and FTE employees will also be included in Category 1.

Category 2 GOCCs that are self-sustaining through sources of funds generated from non-commercial activities.

Category 3 GOCCs that are self-sustaining through sources of funds generated from commercial activities, with products and services that directly compete with the private sector.

2. GOCC GRADING - Each GOCC shall be classified by its GOCC grade based on the weighted average grade in these three (3) factors:

(a) Company Financials - 60%

(b) Complexity - 30%

GOCC grading is the foundation of the job evaluation process for each GOCC. The GOCC grade sets a cap to the number of grades in the organization and determines the grade of the CEO.

Newly created GOCCs shall be subject to the guidelines to be issued by the GCG En Banc.

2.1. Company Financials - GOCCs shall have a grade based on the average relevant financial indicators over the last three (3) years as reported in their audited financial statements and DBM and/or Board-approved corporate operating budgets:

GOCC GRADE

FINANCIALS (P)

< 3.975 billion

≥ 3.975 billion and < 7.95 billion

≥ 7.95 billion and < 26.5 billion

≥ 26.5 billion and < 53 billion

≥ 53 billion and < 106 billion

≥ 106 billion and < 265 billion

≥ 265 billion and < 530 billion

≥ 530 billion and < 2.65 trillion

≥ 2.65 trillion and < 5.3 trillion

≥ 5.3 trillion

In consideration of the financial viability and source of funds to sustain an organization's full operations and activities, the financial indicators applicable for each GOCC shall be dependent on the Category of the GOCC. The three (3) years financials will be averaged based on the following formula for each category:

CATEGORY

DESCRIPTORS

Category 1

Operating expense plus operating subsidies

Category 2

Operating expense (plus investment income, if any).

Program subsidies will not be included in the computation of financials of GOCCs under this category.

Category 3 Annual revenue or operating expense plus annual revenue minus statutory contributions.

2.2. Complexity - GOCCs shall have a grade for its complexity based on the fixed grade equivalent to its categorization:

GOCC GRADE

CATEGORY

Category 1

Category 2

Category 3

2.3. Number of FTE Employees - GOCCs shall have a grade based on the number of FTE Employees as follows:

GOCC GRADE

NO. OF FTE EMPLOYEES

Less than 91

91 to 240

241 to 620

621 to 1,600

1,601 to 4,100

4,101 to 10,600

10,601 to 27,500

27,501 to 75,000

75,001 to 200,000

More than 200,000

2.4. Official GOCC Grade - The GOCC shall have a weighted average grade based on Chapter V, Sections 2.1 to 2.3 to derive the official grade of the GOCC. A sample computation is provided as follows:

COMPONENT

WEIGHT

GRADE

WEIGHTED GRADE

Financials

60%

9.60

Complexity

30%

5.40

FTE Employees

10%

1.80

GOCC Final Grade

The resulting weighted average grade shall be rounded off to get the final GOCC Grade under the CPCS which shall be capped at Grade 20.

The conversion of the GOCC grade into the new salary tables will be included in the guidelines that will be issued by the GCG.

IV. COMPENSATION SYSTEM. The total compensation grated to officers and employees for services rendered shall hereinafter be limited to the following:

(a) Basic Salaries, including Step Increments

(b) ABI

Provided, That the CPCS II does not cover indirect compensation that is not specified herein and is regulated under existing laws such as, but not limited to: life and retirement insurance benefits, employee compensation insurance, health insurance, and PAG-IBIG Fund benefits: Provided further, That the GCG En Banc may issue clarificatory guidelines relative to the aforementioned indirect compensation as may be necessary.

All GOCCs shall migrate to the rationalized and standardized TCF that shall be implemented for their offices and employees in accordance with the basic salaries, including step increments, ABIs, and variable pay provided therein. The TCF to be adopted by GOCCs that have not yet migrated into the CPCS under EO No. 150 and seek to implement the CPCS II shall be allowed upon authorization of the GCG based on the GCG-certified GOCC Classification under Chapter V, and the job evaluation of all positions of the GOCC based on the Index of Occupational Services, Position Titles, and Job Grades for GOCCs in accordance with Section 15 of the EO on CPCS II.

A. BASIC SALARIES, INCLUDING STEP INCREMENTS

1. Basic Salaries - The MBS provided under the CPCS II is the maximum amount that the GOCC can grant to its officers and employees which shall be differentiated for Category 1 and Categories 2 and 3. A lower uniform percentage of the prescribed rates herein may be implemented by the GOCC based on its own implementation scheme of the CPCS II, provided that such scheme is based on:

(a) Affordability and sustainability of the GOCC top continually implement the CPCS rates for its offices and employees;

(b) Provision of gradual annual salary increase with the salary rates of the CPCS II as the cap, as authorized by the GOCC Governing Board; and/or

(c) Flexibility of the GOCC to provide its own salary tranches such that the amounts in the salary structure herein shall be the amount of the GOCC's final tranche and shall only be applied on the third year of implementation.

1.1. Salary Structure - There are a total of six (6) salary structures which GOCCs can implement depending on their profitability and sustainability of operations. Categorization and Tiering shall then be applied for GOCCs to adopt the appropriate structure that is within their financial capacity.

1.1.1 By Categorization - GOCCs under Category 1 shall follow one structure and shall not be classified further into Tiers.

GOCCs under Categories 2 and 3 shall have a total of five (5) structures wherein the applicable structure shall be based on the Tiers provided herein.

1.1.2 By Tiering - GOCCs under Categories 2 and 3 shall be subjected to Tiering which shall determine the corresponding salary structure that the GOCC can implement based on the following financials using the same formula provided under Chapter V, Section 2.1:

TIERS FINANCIALS (P)

Tier 1 Between 1.98 billion to 3.97 billion

Tier 2 ≥ 3.97 billion

Tier 3 ≥ 20.32 billion

Tier 4 ≥ 36.6 billion

Tier 5 ≥ 53 billion

All GOCCs under Categories 2 and 3 with financials falling at P1.98B and below will automatically follow the pay structure for a Category 1 GOCC.

The GCG En Banc may adjust or set an appropriate Tier for a GOCC by reason of its strategic importance to national economy and development: Provided, That the GOCC's financial viability to sustain its operations/activities is considered and that the source of funds for the adjustment shall not be subsidized by the National Government or the parent GOCC, as may be applicable.

1.1.3. The MBS Structure for Category 1 GOCC shall be as follows:

Pay Grade

Category 1

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Step 7

Step 8

15,208

15,304

15,423

15,442

15,663

15,784

15,906

16,030

16,118

16,233

16,349

16,466

16,582

16,700

16,820

16,939

17,120

17,244

17,366

17,490

17,616

17,740

17,868

17,994

18,180

18,309

18,440

18,571

18,704

18,836

18,971

19,106

19,296

19,434

19,573

19,712

19,852

19,994

20,137

20,280

20,474

20,620

20,767

20,916

21,065

21,215

21,367

21,520

21,872

22,034

22,196

22,362

22,526

22,693

22,860

23,030

23,399

23,603

23,808

24,014

24,221

24,432

24,644

24,859

25,433

25,627

25,823

26,021

26,220

26,421

26,624

26,828

28,247

28,462

28,678

28,896

29,116

29,337

29,561

29,787

33,387

33,501

33,790

34,082

34,378

34,679

34,983

35,292

35,650

35,771

36,059

36,350

36,645

36,944

37,246

37,552

37,828

37,987

38,303

38,623

38,948

39,276

39,608

39,945

40,505

40,882

41,263

41,650

42,040

42,436

42,837

43,243

44,148

44,564

44,985

45,412

45,844

46,281

46,723

47,172

47,829

48,286

48,750

49,219

49,694

50,175

50,662

51,154

51,877

52,381

52,891

53,407

53,929

54,459

54,993

55,536

56,332

56,885

57,447

58,013

58,589

59,171

59,760

60,356

61,916

62,729

63,556

64,395

65,249

66,116

66,999

67,895

76,594

77,628

78,679

79,747

80,833

81,936

82,982

84,121

95,296

96,612

97,952

99,320

100,814

102,331

103,873

105,308

107,022

108,627

110,260

111,918

113,603

115,317

116,952

118,719

121,559

123,385

125,242

127,128

129,047

130,995

132,977

134,989

155,217

157,550

159,921

162,184

164,630

166,512

169,030

171,587

173,788

176,411

179,077

181,457

184,205

186,999

189,319

192,196

194,570

197,521

200,519

203,567

206,663

209,044

212,230

215,469

218,237

221,556

224,726

227,943

231,209

234,743

238,113

241,758

308,730

314,460

320,302

353,952

331,707

337,758

343,862

350,080

364,586

371,607

378,767

385,708

393,154

400,750

408,500

416,040

459,469

464,551

469,690

474,886

480,139

485,450

490,820

500,129

1.1.4 The MBS structures for a Category 2 or 3 GOCC shall be as follows:

Pay Grade

Category 2 and 3 - Tier 1

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Step 7

Step 8

15,451

15,849

16,246

16,643

17,041

17,438

17,835

18,233

18,451

18,628

18,806

18,983

19,160

19,337

19,514

19,691

19,888

20,001

20,113

20,226

20,338

20,451

20,563

20,676

20,882

21,207

21,532

21,857

22,182

22,507

22,832

23,157

23,388

23,455

23,521

23,587

23,653

23,719

23,785

23,852

24,090

24,158

24,226

24,294

24,363

24,431

24,499

24,567

24,813

24,883

24,953

25,023

25,094

25,164

25,234

25,304

25,557

25,955

26,353

26,750

27,148

27,545

27,943

28,341

28,624

28,826

29,029

29,231

29,434

29,636

29,839

30,041

30,341

30,772

31,202

31,633

32,063

32,494

32,924

33,354

33,688

34,521

35,354

36,187

37,020

37,853

38,686

39,519

39,914

40,219

40,524

40,829

41,134

41,439

41,477

42,049

42,470

42,793

43,115

43,438

43,761

44,083

44,406

44,729

45,176

45,640

46,104

46,567

47,031

47,495

47,958

48,422

48,906

49,465

50,025

50,584

51,143

51,703

52,262

52,821

53,350

53,911

54,473

55,034

55,596

56,157

56,719

57,280

57,853

58,472

59,091

59,711

60,330

60,949

61,568

62,187

62,809

63,491

64,173

64,856

65,538

66,220

66,902

67,584

68,260

69,370

70,479

71,589

72,698

73,807

74,917

76,026

76,787

79,274

81,761

84,248

86,735

89,222

91,709

94,196

96,080

98,392

101,647

104,901

108,156

111,411

114,665

117,920

119,099

121,076

123,053

125,030

127,007

128,983

130,960

132,937

134,267

136,679

139,092

141,505

143,917

146,330

148,743

151,156

155,721

158,306

163,944

169,583

175,221

180,860

186,498

192,137

194,058

197,888

201,718

205,548

209,377

213,207

217,037

220,867

249,845

260,800

271,755

282,710

293,665

304,620

315,575

326,530

249,845

260,800

271,755

282,710

293,665

304,620

315,575

326,530

329,795

340,990

453,185

363,381

374,576

385,771

396,967

408,162

412,244

426,238

440,232

454,226

468,220

482,214

496,208

510,202

515,304

532,797

550,290

567,782

585,275

602,768

620,260

637,753

Pay Grade

Category 2 and 3 - Tier 2

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Step 7

Step 8

15,699

16,147

16,596

17,044

17,493

17,941

18,390

18,838

19,064

19,247

19,430

19,613

19,796

19,979

20,162

20,345

20,549

20,665

20,781

20,898

21,014

21,130

21,246

21,363

21,576

21,912

22,248

22,583

22,919

23,255

23,590

23,926

24,165

24,234

24,302

24,370

24,439

24,507

24,576

24,644

24,890

24,961

25,031

25,102

25,172

25,242

25,313

25,383

25,637

25,710

25,782

35,855

25,927

26,000

26,072

26,145

26,406

26,817

27,228

27,639

28,050

28,460

28,871

29,282

29,575

29,784

29,993

30,202

30,412

30,621

30,830

31,039

31,349

31,794

32,239

32,684

33,128

33,573

34,018

34,462

34,807

35,668

36,528

37,389

38,250

39,110

39,971

40,832

41,240

41,555

41,870

42,185

42,501

42,816

43,131

43,446

43,881

44,214

44,548

44,881

45,214

45,538

45,881

46,215

46,677

47,156

47,635

48,114

48,593

49,072

49,551

50,031

50,531

51,109

51,687

52,265

52,842

53,420

53,998

54,576

55,122

55,702

56,282

56,863

57,443

58,023

58,603

59,183

59,775

60,415

61,054

61,694

62,334

62,974

63,613

64,253

64,896

65,600

66,305

67,010

67,715

68,420

69,125

69,830

70,528

71,674

72,820

73,967

75,113

76,259

77,406

78,552

79,337

81,907

84,477

87,046

89,616

92,186

94,755

97,325

98,298

101,661

105,024

108,386

111,749

115,112

118,475

121,837

123,056

125,098

127,141

129,183

131,226

133,268

135,311

137,353

138,727

141,220

143,713

146,206

148,698

151,191

153,684

156,177

157,739

163,565

169,391

175,216

181,042

186,868

192,694

198,520

200,505

204,501

208,498

212,495

216,491

220,488

224,485

228,481

230,766

234,683

238,600

242,517

246,434

250,350

254,267

258,184

260,766

272,569

284,371

296,174

307,977

319,779

331,582

343,385

346,819

359,082

371,346

383,610

395,874

408,137

420,401

432,665

436,991

452,444

467,896

483,348

498,801

514,253

529,705

545,158

550,609

570,079

589,549

609,019

628,489

647,959

667,429

686,899

Pay Grade

Category 2 and 3 - Tier 3

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Step 7

Step 8

15,950

16,405

16,861

17,317

17,773

18,228

18,684

19,140

19,369

19,555

19,741

19,927

20,113

20,299

20,485

20,671

20,878

20,996

21,114

21,232

21,350

21,468

21,586

21,704

21,921

22,263

22,604

22,945

23,286

23,627

23,968

24,309

24,552

24,621

24,691

24,760

24,830

24,899

24,969

25,038

25,289

25,360

25,432

25,503

25,575

25,646

25,718

25,789

26,047

26,121

26,195

26,268

26,342

26,416

26,489

26,563

26,829

27,246

27,663

28,081

28,498

28,916

29,333

29,751

30,048

30,261

30,474

30,686

30,898

31,111

31,323

31,536

31,851

32,303

32,755

33,206

33,658

34,110

34,562

35,014

35,364

36,238

37,113

37,987

38,862

39,736

40,610

41,485

41,900

42,220

42,540

42,860

43,181

43,501

43,821

44,141

44,583

44,922

45,260

45,599

45,938

46,277

46,616

46,954

47,424

47,911

48,397

48,884

49,371

49,858

50,344

50,831

51,339

51,926

52,514

53,101

53,688

54,275

54,862

55,449

56,004

56,593

57,183

57,772

58,362

58,951

59,541

60,130

60,731

61,381

62,031

62,681

63,331

63,981

64,631

65,281

65,934

66,650

67,366

68,082

68,798

69,515

70,231

70,947

71,656

72,821

73,986

75,150

76,315

77,480

78,644

79,809

80,607

83,218

85,828

88,439

91,050

93,661

96,271

98,882

99,871

103,287

106,704

110,121

113m537

116,954

120,370

123,787

125,025

127,100

129,175

131,250

133,325

135,401

137,476

139,551

140,947

143,479

146,012

148,545

151,078

153,610

156,143

158,676

160,263

166,182

171,101

178,020

183,939

189,858

195,777

201,696

203,713

208,483

213,253

218,024

222,794

227,564

232,334

237,104

239,475

244,254

249,033

253,812

258,591

263,370

268,149

272,928

275,658

287,744

299,831

311,918

324,005

336,092

348,179

360,265

363,868

379,823

395,777

411,732

427,687

443,641

459,596

475,550

480,306

494,465

508,623

522,782

536,941

551,100

565,259

579,417

585,11

603,597

621,983

640,368

658,754

677,139

695,525

713,910

Pay Grade

Category 2 and 3 - Tier 4

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Step 7

Step 8

16,205

16,668

17,131

17,594

18,057

18,520

18,983

19,446

19,679

19,868

20,057

20,246

20,435

20,624

20,813

21,002

21,212

21,332

21,452

21,572

21,692

21,812

21,932

22,052

22,272

22,619

22,965

23,312

23,658

24,005

24,351

24,698

24,945

25,015

25,086

25,157

25,227

25,298

25,368

25,439

25,693

25,766

25,839

25,911

25,984

26,057

26,129

26,202

26,464

26,539

26,614

26,689

26,763

26,838

26,913

26,988

27,258

27,682

28,106

28,530

28,954

29,378

29,802

30,227

30,529

30,745

30,961

31,177

31,392

31,608

31,824

32,040

32,361

32,820

33,279

33,738

34,197

34,656

35,115

35,574

35,930

36,818

37,707

38,595

39,483

40,372

41,260

42,149

42,570

42,895

43,221

43,546

43,872

44,197

44,522

44,848

45,296

45,640

45,985

46,329

46,673

47,017

47,361

47,706

48,183

48,677

49,172

49,666

50,161

50,665

51,150

51,644

52,161

52,757

53,354

53,950

54,547

55,144

55,740

56,337

56,900

57,499

58,098

58,697

59,296

59,894

60,493

61,092

61,703

62,364

63,024

63,684

64,345

65,005

65,665

66,326

66,989

67,716

68,444

69,172

69,899

70,627

71,354

72,082

72,803

73,986

75,169

76,353

77,536

78,719

79,902

81,086

81,897

85,549

87,202

89,854

92,507

95,159

97,812

100,464

101,469

104,940

108,411

111,882

115,354

118,825

122,296

125,767

127,025

129,133

131,242

133,350

135,439

137,567

139,675

141,784

143,202

145,775

148,348

150,922

153,495

156,068

158,641

161,215

162,827

168,841

174,854

180,868

186,882

192,896

198,909

204,923

206,972

212,837

218,701

224,566

230,430

236,294

242,159

248,023

250,503

258,298

266,093

273,888

281,683

289,478

297,273

305,068

308,119

322,937

337,754

352,572

367,390

382,207

397,025

411,842

415,961

428,316

440,671

453,027

465,382

477,737

490,092

502,448

507,472

525,417

543,361

561,306

579,250

597,195

615,140

633,084

639,415

660,216

681,018

701,819

722,620

743,422

764,223

785,024

Pay Grade

Category 2 and 3 - Tier 5

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Step 7

Step 8

17,015

17,453

17,890

18,328

18,765

19,203

19,640

20,078

20,319

20,514

20,709

20,904

21,099

21,294

21,489

21,684

21,901

22,025

22,149

22,273

22,397

22,521

22,644

22,768

22,996

23,354

23,712

24,069

24,427

24,785

25,143

25,501

25,756

25,828

25,901

25,974

26,047

26,120

26,193

26,266

26,528

26,603

26,678

26,753

26,828

26,903

26,978

27,054

27,324

27,401

27,479

27,556

27,633

27,711

27,788

27,865

28,144

28,582

29,020

29,457

29,895

30,333

30,771

31,209

31,521

31,744

31,967

32,190

32,413

32,636

32,859

33,081

33,412

33,886

34,360

34,834

35,308

35,782

36,256

36,730

37,098

38,015

38,932

39,849

40,767

41,684

42,601

43,518

43,954

44,290

44,625

44,961

45,297

45,633

45,969

46,305

46,768

47,124

47,479

47,834

48,190

48,545

48,901

49,256

49,749

50,259

50,770

51,280

51,791

52,302

52,812

53,323

53,856

54,472

55,088

55,704

56,320

56,936

57,552

58,168

58,749

59,368

59,986

60,604

61,223

61,841

62,459

63,078

63,709

64,390

65,072

65,754

66,436

67,118

67,799

68,481

69,166

69,917

70,668

71,420

72,171

72,922

73,673

74,425

75,169

76,391

77,612

78,834

80,056

81,278

82,499

83,721

84,558

87,297

90,036

92,774

95,513

98,252

100,990

103,729

104,766

108,351

111,935

115,519

119,103

122,687

126,271

129,855

131,153

133,330

135,507

137,684

139,861

142,038

144,215

146,392

147,856

150,513

153,170

155,827

158,483

161,140

163,797

166,454

168,119

174,328

180,537

186,746

192,956

199,165

205,374

211,583

213,699

220,661

227,622

234,584

241,546

248,507

255,469

262,431

265,055

274,427

283,800

293,173

302,545

311,918

321,290

330,663

333,969

347,668

361,367

375,066

388,765

402,464

416,163

429,861

434,160

448,898

463,636

478,374

493,112

507,851

522,589

537,327

542,700

561,123

579,545

597,968

616,391

634,813

653,236

671,658

678,375

706,201

734,027

761,853

789,678

817,504

845,330

873,156

The GCG shall issue an Authority to Implement (ATI) the CPCS II to each GOCC for the conversion of their existing Job Grades (pursuant to CPCS attached to EO No. 150) into the salary compensation framework under this CPCS II.

2. Step Increments - Officers and employees of a GOCC may progress from Step 1 to Step 8 within the particular PG of the position based on the following:

* Meritorious performance based on a Performance Management System approved by the Civil Service Commission (CSC) for chartered GOCCs and by the Board for non-chartered GOCCs;

* Length of service in accordance with the rules and regulations to be promulgated by the Governance Commission; and

* Adjustments for a specific person and/or position as approved by the GOCC Governing Board and recommended by the Supervising Agency of the GOCC to the GCG for final review and approval shall only be allowed once and within six (6) months from the issuance of the ATI to the GOCC.

Guidelines for the grant of step increment may use as reference the rules and regulations issued by the DBM.

2.1. For incumbents of GOCCs which have not yet implemented the CPCS under EO No. 150. - Upon implementation of the CPCS II, all incumbent officers and employees of GOCCs shall be assigned to Step 1. If the current salary of the GOCC personnel is higher than the Step 1 rate of his/her assigned PG, his/her MBS shall be in accordance with the following rules:

* If the current salary falls between two (2) Steps of the assigned PG, the higher Step shall be granted to the personnel.

* If the current salary is already above Step 8 of the assigned PG, such current salary shall be retained as the MBS of the personnel and there shall be not increase or diminution in the same.

2.2. For newly hired and newly promoted officers and employees - All officers and employees of GOCCs who are hired or promoted after the implementation of the CPCS II shall be assigned to Step 1 of the PG assigned to his/her position.

2.3. GOCCs that are already implementing the CPCS under EO No. 150 shall continue with their existing salary step progression, subject to the implementing guidelines to be issued by the GCG.

B. ALLOWANCES, BENEFITS, AND INCENTIVES

1. Standard Allowances and Benefits - These refer to allowances and benefits that are given across-the-board to officers and employees based on the prescribed rates, guidelines, and regulations to be promulgated by the GCG pursuant to the applicable standardized compensation laws and issuances for National Government Agencies. These shall be limited to the following:

1.1. Year-End Bonus (YEB) - The YEB shall be granted annually based on the one (1) month basic salary, subject to the eligibility conditions under the applicable guidelines to be released by the GCG.

1.2. Cash Gift - Cash Gift shall be granted annually as a year-end benefit.

1.3. Uniform/Clothing Allowance (UCA) - The UCA shall be granted annually to provide the required proper uniform/clothing to employees.

1.4. Personnel Economic Relief Allowance (PERA) - The PERA shall be granted monthly to augment the compensation of government personnel against the rising cost of living.

1.5. Medical Allowance - All GOCCs may provide an annual medical allowance to each qualified employee with the following maximum allowable amounts:

* Category 1 - P7,000.00, or the amount provided for National Government Agencies, whichever may be higher;

* Category 2 and 3 -

* Tier 1 - P10,000.00

* Tier 2 - P15,000.00

* Tier 3 - P20,000.00

* Tier 4 - P27,000.00

* Tier 5 - P35,000.00

The grant of the medical allowance shall be in accordance with the guidelines to be established by the GCG using as reference the applicable standardized procedures and issuances for National Government Agencies.

2. Specific-Purpose Allowances and Benefits - These refers to allowances and benefits given to officers and employees in GOCCs under specific conditions and situations related to the actual performance of work. The prescribed rates, guidelines, and regulations to be promulgated by the GCG shall be based on the applicable compensation laws and issuance for National Government Agencies. These shall be limited to the following:

2.1. Hazard Pay - This is a compensation given to employees who, in the actual performance of their duties and responsibilities, are actually exposed to hazardous situations, such as, but not limited to, assignment in strife-torn or embattled areas, distressed or isolated stations, prison camps, mental hospitals, leprosaria, radiation-exposed clinics/laboratories/workshops, disease-infested areas and areas declared under state of calamity or emergency which pose occupational risks or perils to life.

2.2. Compensation for Overtime Work - This shall serve as the compensation for services rendered beyond the required forty (40) hours of work in a week and those performed on rest days, holidays, and non-working days. This can either be in the form of Compensatory Tome-Off or Overtime Pay.

2.3. Night Shift Differential Pay - This is a compensation premium given to employees whose regular working hours fall within a specified period od time.

2.4. Honorarium - This is a form of compensation that may be given for services rendered beyond the regular duties and responsibilities of the positions they occupy.

2.5. Special Counsel Allowance - This is an allowance given to lawyer-personnel assigned in the legal office of GOCCs for their appearance or attendance to court 1 hearings.

2.6. Representation and Transportation Allowance (RATA) - This is a collective term for two distinct but complementary monthly allowances: Representation Allowance (RA) and Transportation (TA). This is given to officials of GOCCs down to Heads of Division or their equivalent for their transportation and representation expenses while in the actual performance of their duties and responsibilities.

2.7. Subsistence Allowance - This is an allowance given to employees who, by nature of their duties and responsibilities, have to make their services available in their places of work even during mealtimes.

2.8. Magna Carta Benefits for Public Health Workers (PHWs) - The PHWs, as defined in RA no. 7305 or the "Magna Carta of Public Health Workers" are entitled to the benefits provided under the said law.

2.9 Magna Carta Benefits for Scientists, Engineers, Researchers, and Other Science and Technology (S&T) Personnel - Employees considered as S&T personnel as defined in RA No. 8439 or the "Magna Carta for Scientists, Engineers, Researchers, and other S&T Personnel in the Government" are entitled to the benefits provided under the said law.

2.10 Magna Carta Benefits for Public Social Workers (PSWs) - All registered PSWs as defined in RA No. 9433 or the "Magna Carta for Public Social Workers" and employed in government service are entitled to the benefits provided under the said law.

3. Incentives - These refer to rewards granted for services for, and contributions to, the GOCC. The prescribed rates, guidelines, and regulations of the items herein shall be promulgated by the GCG based on the applicable standardized compensation laws and issuances for National Government Agencies. These shall be limited to the following:

3.1. Loyalty Award - This is an incentive in recognition of loyalty to government service.

3.2. Anniversary Bonus - This is an incentive given during the milestone years of the GOCC as authorized by Administrative Order No. 263 (s. 1996).

3.3. Mid-Year Bonus - This is an incentive given to qualified officers and employees equivalent to one (1) month basic salary.

3.4 Productivity Enhancement Incentive - This is a cash incentive meant to improve the productivity of officers and employees.

3.5 CNA Incentive - This is an incentive given to officials and employees of GOCCs with approved and successfully implemented CNAs in recognition of their efforts in accomplishing performance targets at a lesser cost.

The grant of the CNA Incentive shall be based on the guidelines to be established by the Governance Commission, using as reference the guidelines released by the DBM and/or the CSC.

3.6. Program on Awards and Incentives for Service Excellence (PRAISE) - This is a program to provide monetary and/or non-monetary incentives to recognize, acknowledge, and reward productive, creative, innovative, and ethical behavior of employees.

Chartered GOCCs shall follow the guidelines issued by the CSC for the establishment and maintenance of the PRAISE Program. Non-chartered GOCCs may opt to adopt the PRAISE Program, provided that they establish their own program using as reference the guideline sunder CSC issuances, and provided further, that the rates of monetary and/or non-monetary incentives shall not exceed the rates under the CSC issuances.

4. Additional Allowances, Benefits, and Incentives - Upon receipt of the authorization from the GCG ( i.e., the ATI) to implement the CPCS II, all the ABIs of GOCC officers and employees, whether they are incumbents or new hires, shall be limited to those provided under the CPCS II. All additional compensation outside of the CPCS II shall be approved by the Governing Board, endorsed by the Supervising Agency, recommended by the GCG, and approved by the President of the Philippines.

All orders, issuances, and memoranda that are contrary or inconsistent to the provisions and grants provided under CPCS II shall automatically be repealed upon implementation of the CPCS II.

5. Discontinued Allowances, Benefits, and Incentives - The authorized ABIs currently being received by incumbents of GOCCs that are implementing compensation frameworks different from what is provided in the CPCS under EO No. 150 or the CPCS II shall be paid the three (3)-year present value of such authorized ABIs that will be discontinued under and upon implementation of the CPCS II, using the following formula:

3 year present value = Total authorized excess ABIs for the first year ___________________________________ 1.0225 0

+ Total authorized excess ABIs for the second year ___________________________________ 1.0225 1

+ Total authorized excess ABIs for the third year ___________________________________ 1.0225 2

Only ABIs that are duly authorized by the President of the Philippines and/or by law shall be included in the computation of ABIs to be paid out to each incumbent, subject to availability of the corporate funds and financial viability of the GOCC.

This provision shall only be applicable to GOCCs that will migrate to the CPCS II after the effectivity of this Order.

C. VARIABLE PAY OR PERFORMANCE-BASED BONUS

1. Performance-Based Bonus (PBB) - This is a cash bonus given to qualified officers and employees in recognition of their contribution to the accomplishment of the GOCC's overall targets and commitments.

1.1. Coverage - All officers and employees of GOCCs who occupy regular, casual, or contractual positions with employer-employee relationship.

1.2. Rules and Regulations

1.2.1. Eligibility for GOCCs

1.2.1.1. Only GOCCs that have achieved a weighted-average score of at least 90% in their Performance Scorecard for the applicable year.

1.2.1.2. GOCCs shall satisfy other conditions set by the GCG for the grant of PBB.

1.2.2. Eligibility Requirements for individual officers and employees

1.2.2.1. Officers and employees must have rendered an aggregate period ot at least nine (9) months of government service for the applicable year to be entitled to the full-grant of PBB. Those who do not meet the nine (9)-month service requirement but have served for at least three (3)-months shall be entitled to PBB on a pro-rata basis.

1.2.2.2. Officers and employees shall satisfy other conditions set by the GCG to be entitled to the grant of PBB.

1.2.3. PBB rates - The rate of PBB is dependent on the performance of an officer or employee, his/her MBS as of 31 December of the applicable the applicable year, and the actual length of service he/she has rendered.

Percentile

PBB as % of MBS

Top: Maximum 10%

65.0%

Next: Maximum 25%

57.5%

Remaining: Minimum 65%

50.0%

All qualified officers and employees shall be entitled to PBB not lower than P5,000.00 and not exceeding 65% of their individual MBS as of 31 December of the applicable year. The percentage of PBB to be paid to officers and employees based on their length of service shall be as follows:

Length of Service

% of PBB

At least 9 months

100%

8 months but less than 9 months

90%

7 months but less than 8 months

80%

6 months but less than 7 months

70%

5 months but less than 6 months

60%

4 months but less than 5 months

50%

3 months but less than 4 months

40%

1.2.4. Grant of higher PBB rate - GOCCs categorized either as Category 2 or 3 under CPCS II may grant to a specific incumbent a higher PBB rate of up to 150% of the incumbent's MBS, subject to the approval of the GOCC Governing Board, endorsement of the Supervising Agency of the GOCC, and final approval of the GCG.

1.3. To ensure consistency with the policies and guiding principles enshrined in EO No. 61 (s. 2024), the grant of PBB shall be in accordance with the guidelines to be established by the GCG, using a reference the applicable standardized compensation laws and issuances for National Government Agencies. In this regard, the GCG shall submit to the Office of the President the guidelines for the grant of PBB.

VII. ENTITLEMENTS. The entitlements herein are indirect compensation and/or are outside the TCF of GOCCs. These entitlements shall be based on the prescribed rates, guidelines, and regulations to be promulgated by the GCG using as reference the applicable standardized compensation laws and issuances for National Government Agencies. These shall be limited to the following:

1. Communication Allowance - Officers and employees of GOCCs may be paid communication expenses incurred for the performance of their official duties and responsibilities.

2. Leave Credits - All officers and employees of GOCCs, whether permanent, temporary, casual, or contractual, who are employed with an employer-employee relationship are entitled to earn leave credits.

3. Monetization of Leave Credits - All officers and employees of GOCCs entitled to earn leave credits shall be allowed to monetize their unused leave credits.

4. Terminal Leave Benefits - Officers and employees who retire, voluntarily resign, or are separated from services shall be entitled to the commutation of their leave credits.

5. Rehabilitation Privilege - Officers and employees who sustained wounds and/or injuries while in the performance of official duties may avail of rehabilitation privilege.

6. Cost of Participation in Conferences, Seminars, etc. - Officers and employees may participate in conventions, seminars, conferences, symposia, and similar gatherings, subject to the allowable cost for the participation.

7. Official Vehicles and Transport - Government motor transportation may be used by the personnel of GOCCs for official business.

8. Allowances for Local and Foreign Travel - This is an allowance for official local and foreign travel of GOCC officers and employees.

9. Cultural and Athletic Activities - This is an annual authorized expense for the purchase of uniforms or costumes and other related expenses in the conduct of cultural and athletic activities.

10. Quarters Privileges - This is benefit for GOCC officers or employees assigned or transferred to a place other than their domicile or residence and who do not own houses or rooms therein, by virtue of the GOCC's policies on reshuffling or rotation.

11. Relocation Allowance - This is an annual authorized expense meant to cover expenses incidental to the transfer or assignment of GOCC officers or employees due to internal policies or reshuffling or rotation.

12. Extraordinary and Miscellaneous Expenses (EME) - An annual authorized expense for specified officials and those of equivalent rank occupying key positions in GOCCs in recognition of the need to grant some form of expense to enable them to meet various financial demands of their incumbency in their positions. An annual miscellaneous expense is also authorized for each of the office under the specified officials and their equivalent ranks who are entitled to EME.

VII. PROVIDENT FUND (PF). The PF of GOCCs shall be in accordance with the following:

CATEGORY

RATIONALIZATION OF PF

Category 1

* PF shall be subjected to DBM Budget Circular No. 2008-3 2 , or any subsequent issuances thereof, provided that the employer's share shall be limited to 10%.

Category 2 and 3

* The employer's share shall be limited to 10%. * The employer's share shall be at minimum rate of 3%. Any rate above 3% is subject to written approval of the concerned employee.

The conditions on GOCCs with existing PF shall also be in accordance with the following rationalization measures:

* GOCCs with current PF employer's share that is lower than the maximum of 10% shall have to request for approval from the President of the Philippines should they intent to increase such employer's share. The request should include a computation of the financial impact of the proposed increase in the PF employer' share on the GOCC, aprproved by the Governing Board, and endorsed by the Supervising Agency to the GCG for review and recommendation to the President.

* GOCC with current PF employer's share that is higher than the maximum of 10% shall be limited to up to the applicable maximum rate listed above.

* GOCCs may choose to liquidate their exiting PF and pay out their member employees if thet are not amenable to the new PF rates.

* Those GOCCs that intent to set up a PF shall request for approval from the Office of the President, provided that the new PF is subject to the rationalization of PF under CPCS II.

* GOCCs with financial falling under P1.98 billion shall follow the PF rates for Category 1.

IX. IMPLEMENTATION SCHEDULE OF THE CPCS II ABIs. GOCCs that have implemented the CPCS under EO No. 150 may implement the enhanced ABIs undr this CPCS II retroactive to 01 January 2025, upon receipt of their ATU from GCG.

GOCCs that have not yet implemented the CPCS under EO No. 150 shall implement prospectively the ABIs under this CPCS II, upon issuance of their corresponding ATIs.

X. GUIDELINES PENDING THE ISSUANCE OF THE CPCS II GUIDELINES. Pending the issuance of the applicable implementing guidelines by the GCG, GOCCs shall use existing GCG, DBM, and CSC issuances for the rules , regulations, and, whenever applicable, the rates for the grant of the ABIs provided therein.

XI. UPDATES ON RULES AND REGULATIONS. The GCG may issue updates on any rules and regulations implementing the CPCS II, and/or new guidelines on the CPCS II, as may be deemed necessary.

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