DBM National Budget Circular No. 468 (2000)

(NAR) VOL. 11 NO.1 / JANUARY – MARCH 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 Personnel5.1.1 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 55,000 335.1.2 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 Base Commissioned Pay Officers andEnlisted Personnel 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 IPetty Officer III 7,040 Staff Sergeant Senior Fire/Jail Officer Petty Office II 7,480 II Technical Sergeant Senior Fire/Jail Officer Petty Officer I 8,470 III Master Sergeant Senior Fire/Jail Officer Chief Petty Officer 9,350 IV 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. 13,200 Grade Captain Senior Inspector Lieutenant, Sr. 13,640 Grade 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)