RMC No. 77-2017 — Publishes the full text of Executive Order (EO) No. 36, entitled "Suspending the Compensation and Position Classification System Under EO No. 203 (S. 2016), Providing for Interim Compensation Adjustments, and for Other Purposes"

REPUBLIC OF THE PHILIPPINES RECTRDS MGE DIVSION BUTREAU OF JHTSIWNAL EEVENTE

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE SEP 2 6 2017

Quezon City RECEIVED 9S 10:&0 0nJ

August 25, 2017

REVENUE MEMORANDUM CIRCULAR NO. 17-2017

SUBJECT: Publishing the Full Text of Executive Order No. 36 Dated July 28 2017, EntitIed"SUSPENDING THE COMPENSATION AND NO. 203 (S. 2016), PROVIDING FOR INTERIM COMPENSATION POSITION CLASSIFICATION SYSTEM UNDER EXECUTIVE ORDER

ADJUSTMENTS, AND FOR OTHER PURPOSES"

TO : All Internal Revenue Officials, Employees and Others Concerned

For the information and guidance of all internal revenue officials and others concerned, attached is the letter dated July 31, 2017 from Atty. Concepcion Zeny E

Executive Order No. 36 dated July 28, 2017, entitied "SUSPENDING THE COMPENSATION ADJUSTMENTS, AND FOR OTHER PURPOSES". Ferrolino-Enad, Director ll of Malacanang Records Office and a certified copy of COMPENSATION AND POSITION CLASSIFICATION SYSTEM UNDER EXECUTIVE ORDER NO. 203(S. 2016), PROVIDING FOR INTERIM

Circular a wide publicity as possibie All concerned are hereby enjoined to be guided accordingly and give this

2

Commissioner of Internal Revenye. CAeSAr R. DuLAY 0093'25

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DEPARTMENT OF FINANCE

Rapubllc of the Philpplnss

ptfice at the abresinent

Nll USecr/Atee d HtNs ar ATAcH7 Agwa of the 2philippines Alalatanang

MALACANANG RECORDS OFFICE

Manila, July 31, 2017

Department of Finance SECRETARY CARLOS G. DOMINGUEZ III Manila

Sir:

a certified copy of Executive Order No. 36 dated July 28, 2017 entitled SYSTEM UNDER EXECUTIVE ORDER NO. 203 (S. 2016), PROVIDING FOR INTERIM COMPENSATION ADJUSTMENTS, AND FOR OTHER PURPOSES" "SUSPENDING THE COMPENSATION AND POSITION CLASSIFICATION I have the honor to transmit for your information and guidance

Thank you.

BUREAU OF INTERNAL REVENIE RECORDS MGT DIVISION Very truly yours,

RECEIVED BUREAU OF INTERNAL REVENUE SEP 2 6 2017 48 10:&0am AttY. ConCePCie Directe III - Acting Head Y E. FERROLINO-ENAD

C.NM

K&u6 d4o017

C DEPARtMeNt oF FInAnCe OFFICE OF THE E commission DEFT.OF FINANCE Den wis. o 1 AUG 20i7 NSES UI3Py AUG O 1'2017 PMtKS 1

CENTRAL RECORDS MGNT. DIVISION

M-128 Mabinj:Hall:MaracanangMaidrfrunkline 784-4286 loc. 4029/ 4123/ 4153

BIREAU OF INTERNAL H: RECCRDS MGT. DIV

SEP 2 6 2017 U 10:21 amJ RECEIVF MALACANAN PALACE MAniLA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 36

SUSPENDING THE COMPENSATION AND POSITION CLASSIFICATION SYSTEM UNDER EXECUTIVE ORDER NO. 203 (S) 2016), PROVIDING FOR INTERIM COMPENSATION ADJUSTMENTS, AND FOR OTHER PURPOSES

in the Executive Branch, including all government-owned and -controlled corporations WHEREAS, Presidential Decree (PD) No. 1597 (s. 1978) required all agencies

(GOCCs), both chartered and non-chartered, to observe such guidelines and policies as may be issued by the President governing compensation and position classification systems;

WHEREAS, Joint Resolution (JR) No. 4 (s. 2009) of the Senate and the House of Representatives authorized the President to modify the existing Compensation and Position Classification System (CPCS) of civilian personnel in the government, including all GOCCs, both chartered and non-chartered, and reiterated the continuing applicability and enforceability of PD No. 1597:

WHEREAS,under Republic Act (RA) No. 10149, otherwise known as the "GOCC Governance Act of 2011", the Governance Commission for GOCCs (GCG), as the central advisory, monitoring, and oversight body with authority to formulate, implement and coordinate policies to govern GOcCs, is mandated to:

a. Ciassify GOCCs as may be necessary to guide the GCG in exercising its powers

and functions;

b. Conduct compensation studies, deveiop and recommend to the President a

competitive compensation and remuneration system which shall attract and retain talent, at the same time allowing the Gocc to be financially sound and sustainable; and

C. Develop a CPCS which shall apply to all officers and employees of GOCCs whether under the Salary Standardization Law or exempt therefrom, and shall

consist of classes of positions grouped into such categories as the GCG may determine, subject to the approval of the President;

WHEREAs, the GCG, after having conducted the requisite compensation studies, has developed the CPCS for GOCCs which was approved by the President Iast 22 March 2016 through Executive Order (EO) No. 203;

THE PRESIDENT OF THE PHILIPPINES

RECERDS MGE DIVISICN ISU&EY UT HNIEIMNAL REVKN

GocCs and eliminate any excessive, unauthorized, illegal, and/or unconscionable allowances, incentives and benefits; WHEREAs,there is a need to further study and review the compensation of RECEIVED SEP 2 6 2017 SN!0: &ouN

reevaluate the CPCS under EO No. 203 and institute an interim measure for affected GOcCs in the meantime; WHEREAS, the GCG finds that there are compelling reasons to revisit and/or

by virtue of the powers vested in me by the Constitution and existing laws, do hereby order: NOW, THEREFORE, I, RODRIGO ROA DUTERTE, President of the Philippines.

Framework for the GOCC Sector. The implementation of the CPCS and the IOS Framework for the GOCC Sector under EO No. 203 is hereby suspended. SECTION 1. The CPCS and Index of Occupational Services (IOS)

be governed by the following: GOcCs, Government Financial Institutions, Government Instrumentalities with Corporate Powers, or Government Corporate Entities (hereinafter referred to as "GOCCs"), including their subsidiaries, which are covered under RA No. 10149, shall SECTION 2. Interim Measure. In the interim, the compensation framework of

a. For SSL-covered GOCCs, the GOCC shall adopt the Modified Salary Schedule under E0 No. 201 (s. 2016), as well as the allowances and benefits provided therein, upon approval by the GCG.

provisions of EO No. 201, where applicable. GOCCs which do not have adeguate or sufficient funds shall partially implement the Modified Salary Schedule and authorized benefits. in case of partial implementation, the same The impiementation of the compensation adjustments shall be subject to the shall be at uniform percentage across all positions for every Gocc. b. All SsL-exempt GOCCs shall have the option to either maintain their current Salary Schedule under EO No. 201. For GOCCs adopting the Modified Salary Schedule under EO No. 201, the following shall apply: compensation framework or, subject to approval of the GcG, adopt the Modified

i. They shail be limited to the benefits, allowances, incentives provided under JR No. 4; ii. The GCG shall have the authority to convert/revise the compensation framework of such GOCCs.(i.e., convert from Job Grade to Salary Grade); iii. A Mid-Year bonus eguivalent to one (1) month basic salary shall be granted to those who have rendered at least four (4) months of satisfactory service Gift shall be subject to the guidelines issued by the GCG. year. The grant of the Mid-Year and Year-End bonuses as well as the Cash and are still in service as of same date, to be given not earlier than May 15 of every year. The existing Year-End Bonus equivalent to one (1) month basic salary and Cash Gift at prescribed rates shall be given in November of every

The Mid-Year and Year-End bonuses provided herein, shall be in lieu of the bonuses, allowances or incentives of similar nature that the GOcCs receive under their current compensation framework.

impiemented effective 1 January 2017, upon approval of the GCG. SEcTiON 3. Application. The interim measure under this Order shall be

of this Order, there shall be no diminution in the authorized salaries of incumbent officers and employees. SECTION 4. Non-Diminution of Authorized Saiaries. - In the implementation

Negotiation Agreements (CNA) in the GOCC Sector. Section 2 of EO No. 203. regarding CBAs and CNAs, is not suspended by this Order and shall continue to be in effect. SECTION 5. Collective Bargaining Agreements (CBAs) and Collective

from the effectivity of this Order. the GcG shall promuigate impiementing rules and regulations which shall, among others, ensure that the approvals herein required prior to impiementation of the interim measure are issued to qualified GOCCs in the most expedient and efficient manner. SECTION 6. Implementing Rules and Regulations. Within thirty (30) days

are hereby repealed or modified accordingly. and regulations or part thereof which are inconsistent with the provisions of this Order SEcTiON 7. Repeal. All orders, circulars, issuances, board resofutions, rules

subsisting. unconstitutional, the other provisions not affected thereby shall remain valid and SECTiON 8. Separability. If any provision of this Order is declared invalid or

SECTiON 9. Effectivity. This Order shall take effect immediately.

year of our Lord Two Thousand and Seventeen. DONE, in the City of Manila, this 28th day of July , in the

By the President:

BUREAU OF INTERNAL KEVEND RECORDS MGE. DFVTSIEN

SALVADOR C. MEDIALDEA Executive Secretary N RECEIVET SEP 2 6 2017 86 10:&0 qm

4011154 TC2 THE PHILIPPINE CHEPTHFHEGDIH MALACANANG RECORDS OFFICE frice of the Frae

RRD 2016 - 002958

ATTY.CONCEPCIOL Dt- v DRECTOR H ZENYE FERROLINO-ENAD o