Executive Order No. 40 (2011)

107 OG No. 24, 2725 (Oct. 3, 2011)

[ EXECUTIVE ORDER NO. 40, April 29, 2011 ]

IMPLEMENTATION OF THE THIRD TRANCHE OF THE MODIFIED SALARY SCHEDULE FOR CIVILIAN PERSONNEL AND BASE PAY SCHEDULE FOR MILITARY AND UNIFORMED PERSONNEL IN THE GOVERNMENT

WHEREAS, the Philippine Government has adopted the modified Salary Schedule for civilian personnel and the Base Pay Schedule for military and uniformed personnel as authorized in the Senate and House of Representatives Joint Resolution No. 4 (s. 2009) which shall be implemented in four (4) yearly tranches for personnel in national government agencies (NGAs);

WHEREAS, for personnel in government-owned or controlled corporations (GOCCs), government financial institutions (GFIs), and local government units (LGUs), the implementation of the modified Salary Schedule shall be in at least four (4) years depending on their financial capabilities, pursuant to item (13) of the Joint Resolution;

WHEREAS, the first tranche of the modified Salary Schedule and Base Pay Schedule have been implemented effective 1 July 2009 for personnel in NGAs, GOCCs, and GFIs, and effective 1 January 2010 for personnel in LGUs;

WHEREAS, the second tranche of the modified Salary Schedule and Base Pay Schedule have been implemented effective 24 June 2010 for personnel in NGAs, GOCCs, and GFIs, and effective 1 January 2011 for personnel in LGUs; and

WHEREAS, Republic Act (RA) No. 10147, the FY 2011 General Appropriations Act (GAA), provides appropriations under the Miscellaneous Personnel Benefits Fund (MPBF) for the implementation of the third tranche of the modified Salary Schedule and Base Pay Schedule for personnel in NGAs;

NOW, THEREFORE, I, BENIGNO S. AQUINO III, President of the Philippines, by virtue of the powers vested in me by, do hereby order:

SECTION 1. Coverage and Exclusion.

(a) Civilian Personnel – The compensation adjustments due to the implementation of the third tranche of the modified Salary Schedule shall cover all positions for civilian personnel in the Executive, Legislative, and Judicial Branches, the Constitutional Commissions/Offices, State Universities and Colleges, GOCCs, GFIs, and LGUs, whether regular, casual, or contractual in nature, appointive or elective, on full-time or part-time basis, now existing or hereafter created.(b) Military and Uniformed Personnel – The compensation adjustments due to the implementation of the third tranche of the modified Base Pay Schedule shall cover the military personnel under the Department of National Defense (DND) and uniformed personnel under the Department of the Interior and Local Government (DILG), Philippine Coast Guard (PCG), and National Mapping and Resource Information Authority (NAMRIA).

(c) The following are excluded from the coverage of the compensation adjustments:

(i) Individuals and groups of people whose services are engaged through job orders, contracts of service, or others similarly situated; and (ii) Civilian personnel in government entities which are exempted from RA No. 6758 and are authorized by law to adopt and are actually implementing their own compensation and position classification systems approved by the Office of the President.

SECTION 2. Implementation of the Third Tranche Monthly Salary Schedule for Civilian Personnel of the National Government. The Salary Schedule attached as Annex “A,” which is the third tranche of the modified Salary Schedule provided in item (4)(b) of Joint Resolution No. 4, shall be implemented effective 1 June 2011 for personnel in NGAs, and in GOCCs and GFIs.

SECTION 3. Implementation of the Third Tranche Monthly Base Pay Schedule for Military and Uniformed Personnel. The Base Pay Schedule attached as Annex “B,” which is the third tranche of the modified Base Pay Schedule in item (8) of Joint Resolution No. 4, shall be implemented effective 1 June 2011.

SECTION 4. Implementation of the Third Tranche Monthly Salary Schedule for LGU Personnel. The implementation of the third tranche of the modified Salary Schedule for LGU personnel shall be determined by the sanggunian concerned based on the LGU income class and financial capability: Provided, That such salary rates shall not exceed the following applicable percentages of the rates in Annex “A,” pursuant to item (7)(a) of Joint Resolution No. 4: Provided, Further, That the resulting Personal Services (PS) cost shall not exceed the PS limitation in LGU budgets, as provided under Sections 325(a) and 331(b) of RA No. 7160: Provided, Finally, That there shall be no diminution in the basic salaries of incumbents for purposes of complying with said PS limitation. Percentages of Salary Rates in Annex “A” For Provinces/Cities For Municipalities Special Cities 100% 1 st Class 100% 90% 2 nd Class 95% 85% 3 rd Class 90% 80% 4 th Class 85% 75%5 th Class 80% 70% 6 th Class 75% 65% For this purpose, the DBM shall issue the Third Tranche Monthly Salary Schedule for Local Government Personnel for each LGU income class to take effect not earlier than 1 January 2012.

SECTION 5. Inapplicability to Certain Officials. In accordance with Section 10, Article VI of the Constitution, no increase in compensation shall take effect until after the expiration of the full term of all the Members of the Senate and the House of Representatives approving such increase.

SECTION 6. Funding. The fund sources for the amounts necessary to implement the provisions of this Executive Order shall be as follows:

(a) For NGAs, the amounts shall be charged against the appropriation for the purpose under the MPBF in the FY 2011 GAA and from available savings. Thereafter, such amounts as may be needed shall be included in the annual GAA;

(b) For GOCCs and GFIs, the amounts shall be charged against their respective corporate funds in the approved corporate operating budgets; and (c) For LGUs, the amounts shall be charged against their respective local government funds.

SECTION 7. Uniform Implementation in Case of Insufficiency of Funds.

(a) GOCCs and GFIs which do not have adequate or sufficient funds shall implement salary schedules which shall be at uniform percentages of the rates in Annex “A.” (b) LGUs which do not have adequate or sufficient funds to implement the salaries authorized for their LGU income classes shall implement salary schedules which shall be at uniform percentages of the rates in the respective Third Tranche Monthly Salary Schedules for Local Government Personnel.

SECTION 8. Implementing Rules and Regulations. The DBM shall issue the necessary rules and regulations to implement this Executive Order.

SECTION 9. Separability Clause. If any provision of this Executive Order is declared invalid or unconstitutional, the other provisions not affected thereby shall remain valid and subsisting.

SECTION 10. Repealing Clause. All orders, rules, regulations, and issuances, or parts thereof, which are inconsistent with this Executive Order, are hereby repealed, amended, or modified accordingly.

SECTION 11. Effectivity. This Executive Order shall take effect immediately.DONE in the City of Manila this 29 th day of April, in the year of our Lord, Two Thousand and Eleven.

(SGD.)BENIGNO S.

AQUINO III

President of the Philippines

By the President:

(SGD.) PAQUITO N. OCHOA, JR. Executive Secretary [ANNEXES] Annex “A” Third Tranche Monthly Salary Schedule for Civilian National Government Personnel Effective June 1, 2011 (In Pesos) Salary Step 1 Step 2 Step 3 Step 4 Grade 1 8,287 8,393 8,501 8,610 2 8,932 9,047 9,162 9,281 3 9,628 9,751 9,876 10,004 4 10,358 10,491 10,626 10,763 5 11,145 11,288 11,434 11,581 6 11,992 12,146 12,302 12,462 7 12,880 13,045 13,213 13,384 8 13,833 14,011 14,192 14,375 9 14,857 15,048 15,242 15,439 10 15,948 16,153 16,360 16,571 11 17,099 17,318 17,540 17,765 12 18,333 18,568 18,805 19,047 13 19,658 19,908 20,162 20,420 14 21,078 21,346 21,618 21,894 15 22,688 22,994 23,305 23,621 16 24,423 24,752 25,085 25,424 17 26,292 26,644 27,002 27,36618 28,305 28,684 29,068 29,458 19 30,474 30,880 31,292 31,711 20 32,810 33,246 33,688 34,140 21 35,219 35,685 36,158 36,638 22 37,812 38,310 38,815 39,327 23 40,604 41,136 41,676 42,223 24 43,612 44,179 44,756 45,340 25 46,848 47,456 48,071 48,696 26 50,334 50,982 51,642 52,310 27 54,088 54,782 55,487 56,201 28 58,132 58,874 59,628 60,392 29 62,488 63,282 64,088 64,905 30 67,944 68,814 69,697 70,592 31 79,729 80,777 81,841 82,921 32 91,226 92,425 93,642 94,878 33 107,470 Salary Step 5 Step 6 Step 7 Step 8 Grade 1 8,721 8,834 8,948 9,064 2 9,400 9,522 9,646 9,772 3 10,133 10,265 10,398 10,534 4 10,904 11,045 11,189 11,335 5 11,732 11,884 12,040 12,197 6 12,624 12,788 12,955 13,125 7 13,558 13,734 13,913 14,096 8 14,561 14,750 14,942 15,138 9 15,639 15,842 16,048 16,257 10 16,786 17,003 17,225 17,449 11 17,994 18,227 18,464 18,703 12 19,291 19,541 19,793 20,050 13 20,682 20,948 21,219 21,493 14 22,174 22,459 22,748 23,041 15 23,941 24,266 24,598 24,934 16 25,767 26,117 26,472 26,832 17 27,736 28,110 28,491 28,878 18 29,854 30,256 30,666 31,080 19 32,137 32,568 33,008 33,453 20 34,596 35,059 35,530 36,009 21 37,125 37,620 38,123 38,633 22 39,848 40,376 40,913 41,45723 42,778 43,343 43,916 44,498 24 45,934 46,537 47,148 47,769 25 49,330 49,974 50,628 51,292 26 52,988 53,676 54,374 55,083 27 56,926 57,662 58,408 59,166 28 61,167 61,953 62,752 63,562 29 65,735 66,576 67,431 68,296 30 71,500 72,422 73,356 74,305 31 84,017 85,130 86,261 87,408 32 96,132 97,405 98,698 100,011 33 Annex “B” Third Tranche Monthly Base Pay Schedule for Military and Uniformed Personnel Effective June 1, 2011 (In Pesos) DND DILG PCG and Monthly NAMRIA Base Pay BJMP and BFP PNP and PPSC Candidate 10,386 Soldier Private Fire/Jail Officer Police Officer I Apprentice 13,492 I Seaman/ Seaman Third Class Private First Seaman 14,472 Class Second Class Corporal Fire/Jail Officer Police Officer II Seaman First 15,359 II Class Sergeant Petty Officer 16,126 III Staff Sergeant Fire/Jail Officer Police Officer Petty Officer II 16,986 III III Technical Petty Officer I 18,286 Sergeant Master Senior Fire/Jail Senior Police Chief Petty 19,685 Sergeant Officer I Officer I Officer Senior Master Senior Fire/Jail Senior Police Senior Chief 21,193 Sergeant Officer II Officer II Petty Officer Chief Master Senior Fire/Jail Senior Police Master Chief 22,817 Sergeant Officer III Officer III Petty Officer First Chief Senior Fire/Jail Senior Police First Master 24,567 Master Officer IV Officer IV Chief PettySergeant Officer Cadet Cadet 24,567 Probationary 24,567 Second Lieutenant Second Ensign 26,868 Lieutenant First Inspector Inspector Lieutenant 28,839 Lieutenant Junior Grade Captain Senior Senior Inspector Lieutenant 31,251 Inspector Senior Grade Major Chief Inspector Chief Inspector Lieutenant 32,942 Commander Lieutenant Superintendent Superintendent Commander 35,380 Colonel Colonel Senior Senior Captain 38,003 Superintendent Superintendent Brigadier Chief Chief Commodore 40,828 General Superintendent Superintendent Major General Director Director Rear Admiral 43,872 Vice Admiral 47,150 Lieutenant Deputy Admiral 51,283 General Director- General General Director General 57,500