Starting next week, agencies may start processing
adjustments in compensations with the issuance on Wednesday by the Department
of Budget and Management (DBM) of the National Budget Circular No. 562 and
Local Budget Circular No. 108.
These circulars will implement the first tranche
compensation adjustment for government workers and additional allowances for
Military and Uniformed Personnel (MUP), as mandated under Executive Order 201
(s. 2016).
“With the issuance of these circulars, the salaries of
civilian personnel will be adjusted in accordance with the First Tranche
Monthly Salary Schedule as provided in the Executive Order. Likewise, the new
allowances for MUP will be granted in accordance with the schedule provided in
the EO. Meanwhile, the Hazard Pay for MUP shall be increased from the current
rate of P240 per month to P390 per month,” Budget Secretary Florencio B. Abad
said.
Abad added that since the compensation adjustment is
retroactive to Jan. 1, 2016, civilian personnel will receive salary differential
and MUPs will receive the Hazard Pay differential and new allowances due them
since January.
National Budget Circular No. 562 prescribes the guidelines
for the implementation of the EO for civilian personnel in the executive,
legislative and judicial branches, including constitutional commissions, state
colleges and universities (SUCs), and government-owned and -controlled
corporations (GOCCs) covered by the Compensation and Position Classification
System (CPCS).
Local Budget Circular No. 108 covers local government unit
(LGU) personnel and barangay personnel positions that are paid monthly
honoraria.
Funds to be released to agencies next week
Abad explained that the funds for the compensation
adjustment and related fixed expenditures for civilian and MUP will be released
next week to the agencies based on the number of filled positions as of Dec.
31, 2015. Funds for newly-filled positions after the December cut-off date
shall be released separately and subject to submission of requirements.
However, Abad clarified that while the funds will be
released directly to agencies next week, this does not mean the adjusted
salaries and new allowances will be received by all covered personnel next
week.
“The Human Resource Office of agencies will, of course, need
time to implement the procedures for salary adjustment and process the release
of funds to employees,” he said.
For covered GOCCs, the funds shall for charged against their
approved corporate operating budgets. For LGUs, the funds shall be charged
against LGU funds subject to the Personnel Services (PS) limitation in LGU
budgets and income classification. If the funds are insufficient to fully implement
the salary schedule, the Sanggunian may adopt a modified salary schedule with
lower rates but at a uniform percentage of the rates in the applicable salary
schedule provided in the circular.
Military and Uniformed Personnel to get same pay adjustment
as civilians
The President signed Executive Order 201 last week modifying
the salary schedule for civilian government personnel and authorizing the grant
of additional benefits for both civilian and MUP in response to the
congressional deadlock on the issue of the indexation of MUP pension. This
resulted in the non-passage of the proposed Salary Standardization Law of 2015.
The EO effects compensation adjustments for this year as an
interim measure to implement Tranche 1 of the proposed SSL, the full year requirement
for which has already been provided in the 2016 Budget.
For civilian government personnel, the EO effects the
adoption of the same proposals in House Bill 6268 and Senate Bill 2671 for the
salary increase, the grant of the mid-year bonus equivalent to one month’s
basic salary, and the Productivity Enhancement Incentive (PEI) of P5,000.
For MUP, EO 201 provides for two new allowances: the
Provisional Allowance and Officers’ Allowance, in lieu of an increase in Base
Pay in consideration of the pension implications of Base Pay adjustment of
active MUP. These two new allowances approximate the added remuneration had the
Base Pay been increased. The amounts of these allowances are also based on the
proposed increases in Base Pay under the proposed bills on SSL 2015.
Abad said this is an interim measure to supplement the total
compensation of MUP until such time that a pension reform measure is passed in
Congress that will mitigate the impact of pension indexation.
“This will ensure that they will get at least the first
tranche of the pay increase that we have planned for them,” said Abad.
http://www.pna.gov.ph/index.php?idn=1&sid=&nid=1&rid=860464
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