Manual on Position Classification and Compensation | Civil Service | Salary

FOREWORD

“Equal pay for substantially equal work and responsibility.” The principle recognizes the fact that requirements and demands for performance vary in relative degrees from position to position. Fairness and equity require that similar or substantially similar positions should receive similar pay. The Philippine Government, in administering the Position Classification and Compensation System (PCCS) established under Republic Act No. 6758 or the Compensation and Position Classification Act of 1989, is guided by this universally accepted principle. For this reason, positions in the government are grouped into classes by occupational groups on the basis of similarity and level of work to determine their relative worth. A reasonable gap between salary levels is maintained to clearly define the distinction between the different job levels and recognize gradations in duties and responsibilities. Notwithstanding its noble objectives, the PCCS is not fully understood. This is why the Department of Budget and Management (DBM) prepared this Manual on Position Classification and Compensation. The Manual is a comprehensive documentation of the policies, rules, regulations, procedures and practices relative to the administration and maintenance of the PCCS. It reflects the legal bases as well as recent issuances, circulars, and other policy and procedural changes affecting the system. It is hoped that this Manual will enhance the capability of officials and employees concerned in the proper administration and maintenance of the PCCS.

ROLANDO G. ANDAYA, JR. Secretary

Chapter 1, Overview of the Position Classification and Compensation System, is devoted to the evolution of the PCCS starting from the American Regime up to the enactment of RA No. 6758. It also includes the governing principles, positions covered, parts, and objectives of the PCCS.

Chapter 2, The Position Classification Plan (PCP), discusses the concepts and contents of the PCP. It also discusses the position classification factors, the position classification process, including the policies, rules and regulations on the administration and maintenance of the PCP. Chapter 3, The Compensation Plan (CP), contains the concepts of compensation, compensation policy of the State, governing principles of the CP, and the general guidelines governing government compensation. It describes the salary schedule, salary rules, policies and guidelines related to additional compensation and benefits, and states how the CP is maintained. The Responsibility Centers in the Administration of the Position Classification and Compensation System are discussed in Chapter 4 while

the Salary Grades of Constitutional and Other Officials and Their Equivalents are discussed in Chapter 5.

Chapter 6, Position Classification and Compensation Scheme for Teaching Positions in Elementary and Secondary Schools, comprises

topics on the teacher’s preparation pay schedule and its coverage, basis of position classification, salary grades, compensation benefits and the career progression system for public school teachers.

Chapter 7, Position Classification and Compensation Scheme for Faculty Positions, includes discussions on the common criteria for evaluation, qualitative contribution evaluation, determination of appropriate ranks and salaries, evaluation cycle and the additional compensation for faculty members in State Universities and Colleges. Likewise included in the discussions are the manner, selection and appointments to faculty ranks.

Chapter 8, Position Classification and Compensation Scheme for Foreign Service Personnel shows the coverage of Republic Act No. 7157 or “The Philippine Foreign Service Act of 1991.” It enumerates the designations of foreign service personnel when assigned abroad and when recalled to the home office and describes their system of allowances. It likewise discusses the assignment, accreditation, appointment and determination of assimilated ranks of service attaches for compensation purposes.

Chapter 9, Position Classification and Compensation Scheme in Local Government Units, includes guidelines on position classification, creation of new positions/offices and of a new class of positions. The compensation scheme includes guidelines on basic pay, adoption of higher salary schedule, step increments, allowances, and other forms of compensation and benefits. As the need arises, changes in this Manual will be issued by the DBM. The looseleaf form has been adopted for easy insertion of changes in the Manual. The Human Resource Management Officers or equivalent officers of agencies are requested to maintain their copies of the Manual in current status.

ACKNOWLEDGMENT ----------------------------------------------The DBM, through the Organization, Position Classification and Compensation Bureau (OPCCB), greatly appreciates the contribution of the following DBM officials and staff in the preparation of this Manual: To then Secretary Emilia T. Boncodin, whose vision and direction paved the way for the preparation of the Manual; Undersecretary Cynthia G. Castel, for the introduction of new ideas and approaches used in the Manual; OPCCB Director Solita S. Recolizado and Assistant Director Clemente Z. Sosito who guided previous and existing OPCCB complement, namely: Ms. Gloria E. Lauzon, Ms. Arceli J. Arcaina, Mr. Edgardo M. Macaranas, Ms. Sharlene L. Raquitico, Ms. Maria Theresa Beverly M. Tirol-Wadel, and Ms. Maria Lourdes Z. Trinidad-Aganon and their technical staff in the preparation of their respective assigned chapters; To other staff of the OPCCB, namely: Ms. Rose V. Nera, Ms. Arlene J. Opolento, Mr. Rodel G. Orantes, and specially Ms. Emilia V. Nobleza who rendered invaluable administrative services in the preparation of the Manual; and Ms. Sharlene L. Raquitico, for updating and editing the Manual with the support of the present OPCCB staff.

MYRNA S. CHUA Director

Chapter 1
Overview of the Position Compensation System Classification and

The Position Classification and Compensation System in the Philippine Government evolved as follows: 1.1 The American Regime
During the first three years of the American regime (1898-1900), there was no formal position classification and salary administration system in the Philippines. The common designations of positions in the government service were clerk, employee, inspector, teacher, translator-interpreter, stenographer-typist and janitor-messenger. To indicate levels of difficulty, adjectives such as deputy, assistant and chief were used. Salaries were paid in Mexican dollars and Spanish-Filipino pesos were set at certain levels. Higher salaries, however, were reserved for the Americans to attract them to join the civil service. Salaries, on the other hand, for new positions were arbitrarily fixed by legislative prerogative. The depreciation, however, of the said currencies coupled with the problems of daily life placed the morale of civil servants on a rather low profile. To resolve the problem, Act No. 5 entitled, “An Act for the Establishment and Maintenance of an Efficient and Honest Civil Servants in the Philippines,” was enacted by the Philippine Commission on September 19, 1900. Among the salient provisions of said Act were the creation of the Philippine Civil Service Board which was the forerunner of the Civil Service Commission, the delineation of its powers and functions and the establishment of rules and regulations especially those on position classification. Notwithstanding the established salary rules, the Americans were paid higher salaries than Filipinos occupying similar positions in the civil service. 1.1.1 Act No. 102 To uplift the economic status of civil servants and to attract and retain qualified and competent staff, the Philippine Commission passed Act No. 57 in December 1900 directing the Philippine Civil Service Board to conduct a survey of salaries in the civil service.

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Manual on Position Classification and Compensation Based on the results of the said survey, a readjustment plan was submitted by the Philippine Civil Service Board to the Philippine Commission which in turn passed Act No. 102 entitled, “An Act Regulating the Salaries of Officers and Employees in the Philippine Civil Service,” dated March 9, 1901. Act No. 102 categorized officers and employees of the civil service into 2 general groups based on their salaries rather than on their duties and responsibilities. The first group consisted of 10 classes (1 to 10); the second group, 11 classes (A to K); or a total of 21 classes. Exempted from the Act were the officers of the Department of Mindanao and Sulu. The Governor-General, with the consent of the Philippine Commission, fixed the salaries of the officers of this Department. With the establishment of the monetary system of the Philippines, the salary rates provided in the salary scale under Act No. 102 were adjusted from dollars to pesos at the rate of $1 to P2 effective August 26, 1907 pursuant to Act No. 1698. The revised salary scale was followed for many years until the First World War.

1.2 The Commonwealth Regime
The economic depression brought about by the First World War forced the Philippine Legislature and private firms to cut the salaries of their employees. Prices of commodities rose steadily. To alleviate the economic plight of the civil servants, the Philippine Legislature created the Government Survey Board in 1936 under Commonwealth Act No. 5 to conduct a factual survey of all government departments and submit recommendations concerning, among others, classification of positions. After a two-year survey, the Board found out that civil servants were paid on the basis of their civil service eligibilities and not on their duties and responsibilities. Promotions, on the other hand, were based on length of service. 1.2.1 Commonwealth Act No. 402 To eliminate the said inequities, a Personnel and Salary Standardization Board was created to classify positions based on duties and responsibilities and standardize salaries of civil service personnel. The recommendations of said Board were put into effect by virtue of Commonwealth Act (CA) No. 402 entitled, “An Act to Provide for the Classification of Positions and Standardization of Salaries in the Government,” dated
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Overview of the Position Classification and Compensation System September 13, 1938. Said law was patterned after the US Classification Act of 1923, as amended in 1930. CA No. 402 created a Salary Board composed of the Commissioner of Civil Service as Chairman and the Commissioner of the Budget and the Auditor General as Members. It provided for a schedule consisting of 10 grades with 3 salary rates per grade, except Grade 10 which had only 2 salary steps. The classified positions were grouped into 7 services: administrative, professional and scientific, educational, navigation, vigilance, sub-professional, and craft and labor. The law covers all officers and employees embraced in the classified and unclassified service except the following: • • • • • • • Elective officers and officers whose compensation were fixed in the Constitution; Officers chosen by the National Assembly in accordance with the Constitution; Employees stationed outside the territorial limits of the Philippines; The President, deans of colleges, directors of schools, the registrar, the business director, and members of the teaching staff of the University of the Philippines; Commissioned and enlisted members in the active service of the Philippine Army; Persons in the military, naval or civil service of the United States who were appointed or detailed to perform duties in the Government of the Commonwealth; and Employees declared by the President of the Philippines as primarily confidential or highly technical.

The law also provided for special groups of positions, the Executive Group and the Judicial Group which were not subject to classification by the Salary Board. It likewise provided for compensation differentials for employees (a) stationed in disease-infected areas; (b) stationed in places subject to criminal elements; (c) assigned for not less than 3 consecutive months to work earlier than 6:00 A.M. or later than 8:00 P.M.; and (d) required to wear uniforms not furnished by the government. During the Second World War, the Salary Board was renamed Salary Committee with the Auditor General as Chairman. The number of national government employees as well as their salaries were reduced due to drastic changes in the organization of the Philippine Government, as well as in the economy. To
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Manual on Position Classification and Compensation cushion the effects of inflation, bonuses were granted to government officials and employees based on the number of immediate dependents.

1.3 The Philippine Republic
After the Liberation in 1945, the Salary Board was reactivated. The classification of positions made by the Salary Board in 1938 was revised but it was not updated. The rates of pay in CA No. 402 were nominally applied. In 1947, when the government was reorganized, the powers and functions of the said Board were transferred from the Commissioner of the Civil Service to the Commissioner of the Budget. Pursuant to Executive Order (EO) No. 94, s. 1947, the grades of positions and rates of salaries provided under CA No. 402 were converted into 37 grades with single rates. To relieve civil servants from the economic difficulties brought about by the Second World War, Congress enacted 3 minimum wage laws which were adopted for the entire country. However, these laws led employees in the middle and upper pay levels whose salaries were pegged at prewar levels to clamor for higher salaries. Congress sought solution in piece-meal pay increases for certain groups of employees or occupational groups which gave way to pay disparities and inequities. This situation went on for several years until 1957. 1.3.1 The Position Classification and Pay Plans of 1957 On June 4, 1953, the Philippine Government commissioned Louis J. Kroeger and Associates of San Francisco, California, to conduct a position and wage survey, to submit a position classification plan, a pay plan, and cost estimates to carry out the plans. The firm would also train government personnel in position classification and in determining salaries. This undertaking resulted in the establishment of the Position Classification Plan, the Pay Plan, and the Wage and Position Classification Office (WAPCO) under Reorganization Plan Nos. 1A, 2-A, and 3-A, respectively. The WAPCO classified positions on the bases of duties and responsibilities and qualification requirements. Positions that were sufficiently alike as to duties, level of responsibilities and qualification requirements in terms of education, experience, knowledge, skills and abilities were given the same descriptive title and the same test of fitness.
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Overview of the Position Classification and Compensation System The Plans covered all positions in the national government and its instrumentalities, including quasi-public corporations. Exempted therefrom are the following: • • • • • • Elected officials and officers whose compensation were fixed in the Constitution; Officers and employees of the legislative and judicial departments of the government; Secretaries and undersecretaries of departments of the government; Members of the Armed Forces; Officers and employees of the Foreign Service; and Provincial and municipal local officials.

The Position Classification Plan consisted of occupational groups, classes and class specifications or standards and the rules and regulations for its administration. The Pay Plan consisted of a salary schedule with 75 salary ranges and the salary rules. Each salary range had 5 salary steps. Each salary step was approximately 5% higher than the immediately preceding step. The spread between the minimum and maximum rates of a salary range was approximately 22%. The Pay Plan also had a built-in mechanism for periodic pay progression to provide incentives for better performance and recognize length of service through step increases. Due to funding constraints, however, these schemes were not implemented. When the Position Classification and Pay Plans were adopted on July 1, 1957, there were 237 occupational groups and 2,259 classes into which 183,000 regular positions were classified. Due to inadequate funds, the salaries of civil servants covered by the Plans were adjusted in 3 installments. The first adjustment was 30% of the difference between the minimum rate of the salary range of the position and the actual salary of the incumbent. The second and third adjustments which were both 35% of the said difference were granted on July 1, 1960 and July 1, 1961, respectively. From 1959 to the middle part of 1976, the concepts and principles of position classification and salary standardization were not fully appreciated by government functionaries because of the inability of the government to grant adequate salary increases. Consequently, exemptions from the coverage of the WAPCO Plans followed one after the other.
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Manual on Position Classification and Compensation 1.3.2 The Budgetary Reform Decree on Compensation and Position Classification of 1976 With the advent of the New Society, the President issued on August 22, 1976 Presidential Decree (PD) No. 985 known as “The Budgetary Reform Decree on Compensation and Position Classification of 1976,” in conformity with the following provision of Article XII-B, Section 6 of the 1973 Constitution: “The Batasang Pambansa shall provide for the standardization of compensation of government officials and employees, including those in government-owned and controlled corporations, taking into account the nature of the responsibilities pertaining to, and the qualifications required for, the position concerned.” PD No. 985 provided for the creation of the Office of Compensation and Position Classification (OCPC) and the abolition of the WAPCO. It declared the policy of the government to provide “equal pay for substantially equal work and to base differences in pay upon substantive differences in duties and responsibilities and qualification requirements of the positions. In determining rates of pay, due regard shall be given to prevailing rates in private industry for comparable work.” The salary schedule under PD No. 985 had 28 salary grades. Each salary grade consisted of 8 steps. The difference between 2 successive salary grades was ten (10) “1%” increments. The difference between steps is five (5) “1%” increments. The salary steps were increased from 5 to 8 to enable employees to receive salary increases as rewards for exemplary performance. The last 2 or 3 salary steps were intended for the longevity steps of employees who could not be promoted to more difficult positions because of limitations in qualification requirements and/or abilities. The reduction from 75 salary ranges to 28 salary grades required the compression of the existing occupational groups to a more manageable size. It also required the consolidation of 2 or more related classes into a class where duties and responsibilities were sufficiently alike in terms of difficulty, skills and qualification requirements. When PD No. 985 was issued, there were 282 occupational groups and 4,388 classes in which 575,756 regular positions were classified.
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Overview of the Position Classification and Compensation System The National Compensation and Position Classification System provided for in PD No. 985 was applied to all positions, whether permanent, temporary, or emergency in nature, or on full-time or part-time basis. Nine (9) groups of officials and officers were exempted from the coverage of PD No. 985. These exemptions were reduced to 2 groups under PD No. 1597 entitled, “Further Rationalizing the System of Compensation and Position Classification in the National Government.” They are: (1) elected officials and officers whose compensation were fixed in the Constitution and; (2) local government personnel whose compensation were governed by PD No. 1136. In addition to a standardized salary system, PD No. 985 provided for allowances, bonuses, and other benefits that shall accrue to officials and employees. This law expanded the concept and coverage of compensation administration. 1.3.3 The Compensation and Position Classification Act of 1989 Through the years, the increasing number of exemptions from the coverage of the Compensation and Position Classification System established under PD No. 985 through presidential decrees and other presidential issuances undermined the System which was not fully implemented. Special salary increases and additional compensation were likewise granted to personnel holding positions belonging to certain occupational groups and to personnel of so-called “critical” government agencies which resulted to the proliferation of several salary schedules under the Compensation Plan. These laws also brought about salary disparities among government agencies which in turn gave rise to demoralization and dissatisfaction among government employees. Thus, the morale among many of the civil servants declined and the quality of public service deteriorated. Faced by the grim realities of the past, the President signed into law RA No. 6758 entitled, “An Act Prescribing a Revised Compensation and Position Classification System in the Government and for Other Purposes” or “Compensation and Position Classification Act of 1989,” on August 21, 1989. This is also popularly known as the Salary Standardization Law (SSL). The law is the culmination of a painstaking study undertaken by the Department of Budget and Management with the end in view of putting into realization the provisions of Section 5, Article IX-B of the 1987 Constitution which mandates that:
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Manual on Position Classification and Compensation “The Congress shall provide for the standardization of compensation of government officials and employees, including those in government-owned and/or controlled corporations with original charters, taking into account the nature of the responsibilities pertaining to, and the qualifications required for their positions.” 1.3.3.1 Principles Governing the Position Classification and Compensation System (PCCS) The PCCS is governed by principles enunciated in RA No. 6758, as follows: • All government personnel shall be paid just and equitable wages in accordance with the principle of equal pay for substantially equal work. Differences in pay shall be based upon substantive differences in duties and responsibilities and upon the qualification requirements of positions; Basic compensation for all personnel in the government and government-owned or controlled corporations and financial institutions shall generally be comparable with those in the private sector doing comparable work, and must be in accordance with prevailing laws on minimum wages; The total compensation provided for government personnel must be maintained at a reasonable level in proportion to the national budget; and A review of government compensation rates taking into account possible erosion in purchasing power due to inflation and other factors shall be conducted periodically.

1.3.3.2

Positions Covered by the PCCS The PCCS applies to all positions in national and local governments, government-owned or controlled corporations (GOCCs) and government financial institutions (GFIs), elective or appointive, full-time or part-time, existing or still to be created. It does not apply to those expressly exempted by law from the coverage of the PCCS and those hired as part of a
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Overview of the Position Classification and Compensation System contract, paid on piecework or job order basis, including mail contractors and others similarly situated. 1.3.3.3 Parts of the PCCS The PCCS is composed of the Position Classification Plan (PCP) and the Compensation Plan (CP). • The PCP is an orderly scheme which provides the criteria and the standards for the classification of positions. The CP is an orderly scheme for determining rates of compensation for positions. It is based on the principle of equity and requires uniform and definite application.

1.3.3.4

Important Features of the PCCS • Grouped classes of categories, namely: positions into 4 main

♣ Professional Supervisory; ♣ Professional Non-Supervisory; ♣ Sub-Professional Supervisory; and ♣ Sub-Professional Non-Supervisory. • Revised the salary schedule from 28 to 33 salary grades and prescribed the rules and regulations for its implementation; Assigned the salary grades of constitutional officials and their equivalents and mandated the DBM to determine the officials who are of equivalent rank; Established benchmark positions as an aid to position classification and salary grade allocation; Provided for step increments based on merit or length of service;

• •

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Manual on Position Classification and Compensation • Reduced the number of classes of positions in the national government from more than 5,000 to about 2,400; and Integrated allowances and other compensation into the standardized salary.

• 1.3.3.5

Objectives of the PCCS The PCCS serves as a tool for effective management, organizational analysis, budgeting and fiscal control, and as an information tool for the general public or taxpayers. • As a tool for effective management: ♣ Standardizes salaries, allowances and benefits of officials and employees; ♣ Enables both the supervisors and employees to understand the job content and pay level of positions; ♣ Provides basis for the evaluation of the performance of officials and employees; ♣ Raises morale by enabling an employee to identify his/her position in the organization and to understand the job expected of him/her; ♣ Provides basis for the development of training programs; and ♣ Provides the management of a government agency with the necessary standards on which qualification requirements for recruitment, testing, selection and placement can be based. • As a tool in organizational analysis: ♣ Highlights problems of overlapping and duplication of functions or redundancies in a government agency; ♣ Aids in the accurate analysis and review of functions of a government agency.
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Overview of the Position Classification and Compensation System ♣ Facilitates the preparation of staffing patterns of government agencies; ♣ Contributes to the effective placement of an employee with regard to his job and abilities; and • As a tool in budgeting and fiscal control: ♣ Establishes common terminologies for budget requests for personal services; ♣ Provides standardized compensation for similar services among government agencies; ♣ Serves as basis for accurate payroll reporting and analysis; and ♣ Provides a basis for validating allotments and expenditures. • As an information tool: ♣ Provides information to taxpayers on the kinds of positions in the government and how much these positions are paid. For easy reference, a matrix on the evolution of the PCCS from the American Regime to the enactment of RA No. 6758 is presented in Annex A of this Chapter.

Discussions on the American and Commonwealth Regimes were based on the book by Tomas W. Flores, “Compensation and Position Classification in the Philippine Government, 1900-1978,” (Malacañang, Manila: Ministry of the Budget, 1978).
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Annex A The Evolution of the Position Classification and Compensation System in the Philippine Government
American Regime
Act No. 102, “An Act Regulating the Salaries of Officers and Employees in the Philippine Civil Service,” dated March 9, 1901

Particulars

Commonwealth Regime
Commonwealth Act No. 402, “An Act to Provide for the Classification of Positions and Standardization of Salaries in the Government,” dated September 13, 1938. Reorganization Plan 1A (The Position Classification Plan), and Reorganization Plan2-A (The Pay Plan) both dated May 5, 1956

Philippine Republic

Legal basis

Presidential Decree No. 985, “Budgetary Reform Decree on Compensation and Position Classification of 1976,” dated August 22, 1976 as amended by PD No. 1597, dated June 11, 1978 Duties, responsibilities and qualification requirements of the position All positions in the national government, including governmentowned or controlled corporations and government financial institutions Elected officers and officers whose compensation were fixed in the Constitution Local government

Republic Act No. 6758, the “Compensation and Position Classification Act of 1979,” dated August 21, 1989

Bases of classification Salary

Duties and responsibilities of the position

Duties, responsibilities and qualification requirements of the position All positions in the national government and its instrumentalities, including quasi-public corporations

Duties, responsibilities and qualification requirements of the position All positions in the government, including government-owned and controlled corporations and government financial institutions

Coverage

Officers and employees of the Philippine Civil Service

Officials and employees embraced in the classified and unclassified service

Exemption

Officers and employees of 1. the Department of Mindanao and Sulu 2.

Elective officers and 1. officers whose compensation were fixed in the Constitution Officers chosen by the 2.

Elected officers and 1. officers whose compensation were fixed in the Constitution Officers and emplo- 2.

Those expressly exempted by subsequent laws

Particulars

American Regime

Commonwealth Regime
National Assembly in accordance with the Constitution 3. Employees stationed outside the territorial 3. limits of the Philippines The President, deans of colleges, directors 4. of schools, the registrar, the business director and members 5. of the teaching staff of the University of the Philippines 6. Commissioned and enlisted members in the active service of the Philippine Army Persons in the military, naval or civil service of the United States who were appointed or detailed to perform duties in the Government of the Commonwealth Employees declared by the President of the Philippines as primarily confidential or highly technical yees of the legislative and judicial departments of the government Secretaries and undersecretaries of departments of the government Members of Armed Forces the

Philippine Republic
officials and employees, who were governed by PD No. 1136

4.

Officers and employees of the Foreign Service Provincial, municipal and local officials

5.

6.

7.

Particulars

American Regime

Commonwealth Regime
7 services

Philippine Republic

Number of services/ occupational services Number of occupational groups Number of classes of positions 2 groups (first and second) 21 classes of positions

19 occupational services

237 occupational groups 2,259 classes positions of

271 occupational groups Number of classes were reduced from 4,300 to 2,700 28 salary grades with 8 salary steps each

206 occupational groups Number of classes were reduced from more than 5,000 to 2,541 33 salary grades with 8 salary steps each

Salary structure

First Group (10 classes – 1 to 10) Second Group (11 classes – A to K)

10 grades with 3 rates of compensation The highest, Grade 1, had 3 rates. The lowest, Grade 10, had 2 rates. Salary Board was renamed Salary Committee during WW II. Chairmanship was transferred to the AuditorGeneral in 1945 and to the Commissioner of the Budget in 1947.

75 salary ranges with 5 salary steps each

Agency responsible

Civil Service Board composed of the Commissioner of the Civil Service Commission as Chairman and Commissioner of the Budget and the Auditor-General as Members

Wage and Classification (WAPCO), Commission

Position Office Budget

Office of Compensation and Position Classification (OCPC), Budget Commission

Compensation and Position Classification Bureau (CPCB), now Organization, Position Classification and Compensation Bureau, Department of Budget and Management

Chapter 2
The Position Classification Plan
2.1 The Position Classification Plan
The Position Classification Plan (PCP) consists of occupational services, occupational groups, classes in series, specifications or written descriptions of the classes and the rules and procedures for the administration and maintenance of the Plan.

2.2 Concepts of Position Classification
2.2.1 The position is the basic unit of an organization. It is a set of current duties and responsibilities assigned by competent authority to be performed by an individual either on a full-time or a part-time basis. It may be filled or vacant. 2.2.2 Positions are grouped by class on the basis of similarity of kind and level of difficulty and responsibility of work. 2.2.3 As a general rule, only the duties and responsibilities of the position are considered in position classification and not the incumbent’s qualifications, except teaching positions where the incumbent’s education, relevant training and experience and other factors are considered.

2.3 Grouping of Classes Under the PCP
A class consists of all those positions having sufficiently similar duties, responsibilities and qualification requirements such that they can be given the same position title, salary grade, and for all administrative and compensation purposes, be treated alike. Example: Public Health Nurse I. The classes in the PCP are grouped into the following: 2.3.1 Series A series consists of one or more classes of positions which are similar as to specialized line of work, arranged by level of difficulty and responsibility. Example: Public Health Nurse. This series is composed of Public Health Nurse I, Public Health Nurse II and Public Health Nurse III.

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Manual on Position Classification and Compensation 2.3.2 Occupational Group An occupational group consists of one or more series of classes of positions in the same or related occupation or occupational area. Example: Under the Medicine and Health Service is the Nursing Group. 2.3.3 Occupational Service An occupational service consists of occupational groups of broadly related or similar professions or occupations. Example: The Medicine and Health Service is comprised of the following occupational groups, among others: Dentistry Group, Dietetics Group, Health and Sanitation Group, Medical Group, Medical Technology Group, Nursing Group, etc.

2.4 Categorization of Classes
Classes are categorized under RA No. 6758 as follows: 2.4.1 Professional Supervisory (PS) Category – This category includes responsible positions of a managerial character involving the exercise of management functions such as planning, organizing, directing, coordinating, controlling and overseeing within delegated authority the activities of an organization, a unit thereof or of a group, requiring some degree of professional, technical or scientific knowledge and experience, and application of managerial or supervisory skills. Positions in this category require intensive and thorough knowledge of a specialized field acquired through completion of bachelor degrees or higher degree courses. The positions in this category are assigned Salary Grade 9 to Salary Grade 33. Examples: Engineer IV, Director II, Elementary School Principal I 2.4.2 Professional Non-Supervisory (PN) Category – This category includes positions performing tasks which usually require the exercise of a particular profession or application of knowledge acquired through formal training in a particular field or the exercise of a natural, creative and artistic ability or talent in literature, drama, music and other branches of arts and letters. Also included are positions involved in research and application of professional knowledge and methods to a variety of technological, economic, social, industrial, and governmental functions; in the performance of technical tasks
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Position Classification Plan auxiliary to scientific research and development; and in the performance of religious, educational, legal, artistic or literary functions. These positions require thorough knowledge in the field of arts and sciences or learning acquired through completion of at least four years of college studies. The positions in this category are assigned Salary Grade 8 to Salary Grade 30. Examples: Tourist Receptionist I, Chemist I, College Professor, University Professor 2.4.3 Sub-Professional Supervisory (SS) Category – This category includes positions performing supervisory functions over a group of employees engaged in work along technical, manual or clerical lines which are short of professional work, requiring training and moderate experience or lower training but considerable experience and knowledge of a limited subject matter or skills in arts, crafts or trades. These positions require knowledge acquired from secondary or vocational education or completion of up to two years of college education. The positions in this category are assigned Salary Grade 4 to Salary Grade 18. Examples: Bookbinder IV, Electrician Foreman, Chief Bookbinder 2.4.4 Sub-Professional Non-Supervisory (SN) Category – This category includes positions involved in routine or repetitive work in support of office or fiscal operations or those engaged in crafts, trades or manual work. These positions usually require skills acquired through training and experience or completion of elementary education, secondary or vocational education or completion of up to two years of college education. The positions in this category are assigned Salary Grade 1 to Salary Grade 10. Examples: Draftsman I, Proofreader II, Dental Aide

2.5 Index of Occupational Services, Position Titles and Salary Grades
A listing of the different occupational services, occupational groups and classes in series existing in the PCP is shown in the Index
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Manual on Position Classification and Compensation of Occupational Services, Position Titles, and Salary Grades (IOS). It also shows the salary grade assignment of each class. The IOS consists of 3 volumes: Volume I is the Index of Classes by Occupational Services and Occupational Groups. Volume II is the Index of Classes by Alphabetical Order. Salary Grades. Volume III is the Index of Classes by

2.6 Class Specification
A class specification is a written description of a class of positions consisting of: class category, class identification, class title, class definition, characteristics and qualifications guide. 2.6.1 Class Category A class category may be either of the following: Professional Supervisory (PS), Professional Non-Supervisory (PN), SubProfessional Supervisory (SS) or Sub-Professional Non-Supervisory (SN). 2.6.2 Class Identification (ID) A class ID identifies the class of positions. It shows the alphanumeric acronym and level of a class in a series. The class IDs are indicated in the IOS. Example: The class ID for Nurse I is NURS1. 2.6.3 Class Title A class title is a brief, concise and descriptive name of a class. As a general rule, a class title has three parts, namely: Root word – This shows the general nature of the work such as Sorter, Mechanic, Inspector. Specialty – This shows the field of specialization or field of activity such as Mail Sorter, Aircraft Mechanic, Meat Inspector. Level – This can either be an adjective, a noun or a number which expresses the relative rank or level of the class such as Senior Mail Sorter, Aircraft Mechanic Foreman, Meat Inspector II.

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Position Classification Plan • Levels of classes As a general rule, the following are the standard levels of classes of positions: ♣ Entrance Level or Level I – Classes under this level are under immediate supervision, and with detailed rules and procedures, perform the simplest, routine sub-professional or professional work. Examples: Carpenter I, Engineer I, Budget and Management Analyst ♣ Journeyman or Level II – Classes under this level are under general supervision and with limited latitude for the exercise of independent judgment, perform somewhat difficult but responsible sub-professional or professional work requiring training, some experience and a broad knowledge of a special subject matter. Examples: Radiologic Technologist II, Biologist II ♣ Senior Level/Participating Supervisor/Foreman or Level III – Classes under this level are under general supervision and with some latitude for the exercise of independent judgment, serve as heads of section or other unit of an organization of similar import, or in the case of those in the crafts and trades, a crew engaged in moderately difficult but routine work; or perform difficult and responsible subprofessional or professional work requiring training and moderate experience or lower training but with considerable experience and a very broad knowledge of a special subject matter. Examples: Plumber Foreman, Senior Tax Specialist, Engineer III ♣ Supervising Level/General Foreman or Level IV – Classes under this level are under direction and with substantial latitude for the exercise of independent judgment, serve as assistant heads of division or other unit of an organization of similar import or in the case of those in the crafts and trades, a large crew or several crews engaged in varied work ranging from routine to difficult and specialized work; or perform very difficult, important and responsible sub-professional or professional work requiring training and moderate experience or a lower training but with considerable experience and thorough knowledge of a special subject matter. Examples: Electrician General Foreman, Supervising Economic Development Specialist, Attorney IV
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Manual on Position Classification and Compensation ♣ Chief Level or Level V – Classes under this level are under direction and with considerable latitude for the exercise of independent judgment, serve as heads of division or other unit of an organization of similar import engaged in varied work ranging from routine to very difficult work; or perform exceptionally difficult and responsible subprofessional or professional work requiring training, considerable experience and demonstrated capacity for sound independent judgment and intimate knowledge of special subject matter. Examples: Chief Photographer, Chief Air Traffic Controller, Forester V, Attorney V • Use of Roman Numerals for Levels of Positions For ranking purposes, Roman numerals like I, II, III are used to identify classes in a series when: ♣ Duties and responsibilities of the classes are similar, but the size of the organization, educational requirement/preparation, or some similar factors indicate higher responsibilities and, therefore, a higher level class. Examples: ♦ ♦ ♦ ♦ Elementary School Principal I – supervises 10 to 29 teachers Elementary School Principal II – supervises 30 to 59 teachers Teacher I – Bachelor’s degree for teachers (BSE, BSEE) Teacher II – Bachelor’s degree for teachers plus 20 MA units

♣ Duties and responsibilities of the class are in the same field of specialization with a relatively gradual increase in the complexity of the duties and responsibilities or where each class in the series consists of more than one job type. Examples: Engineer I, Engineer II, Engineer III. 2.6.4 Class Definition A class definition is a general description of the overall duties and responsibilities of a class. It may indicate the alternative use of the class or job type. This usually begins with a statement as to the type of supervision received as follows:
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Position Classification Plan • Under immediate supervision - This is the closest degree of supervision. The position is subject to continuous and direct control. The position cannot decide on its own, hence, has to refer to specific and detailed guides and instructions. Its work is checked while in process and upon completion. This is the type of supervision received by entrance level positions. Under general supervision - The supervision received is not close, continuous or direct. Supervisory control is in terms of objectives and goals to be reached. The position is able to work with a reasonable degree of independence, referring only unusual or complicated matters to immediate supervisor for advice and direction. Under direction - The supervision received comes in the form of guidance from policies and objectives of the organization. Planning and organizing the details of the work and deciding the methods, systems and procedures are completely entrusted to the employee. This is the type of supervision received by assistant division chiefs and higher level positions. Under administrative or executive direction - This is the type of supervision received where the work of the position is subject only to administrative/executive determination of policy. This is the type of supervision received by heads of office and equivalents.

The last portion of the class definition is a general statement, “and does related work,” to emphasize that the employee may be given other assignments related or incidental to his work. 2.6.5 Characteristics • The characteristics portion enumerates specific tasks performed by the class. The typical tasks selected are those most significant in allocating positions to the class. The tasks are in the present tense verbs, third person, singular form with the tasks separated by semi-colons. When an alternate job type or types are necessary, separate paragraphs are used to describe separately the job types within a class because they may differ in objectives and in the manner of accomplishing the objectives. Each new paragraph begins with the conjunction, “Or.” The sequence
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Manual on Position Classification and Compensation of the paragraphs follows the order in the general description of the job types in the “Definition” portion. 2.6.6 Qualifications Guide The qualifications guide states the minimum education, training and experience needed to perform the duties and responsibilities of a class of positions. Annex A of this Chapter is a sample class specification.

2.7 Position Classification Factors
A position classification factor is a characteristic/guide which measures or compares the requirements or demands of a position. It influences the grouping of positions into classes or the allocation of a position to a class. 2.7.1 The Basic Classification Factors The 3 basic classification factors are: • Skills and Knowledge – These measure the extent of formal education and work experience normally required for the satisfactory performance of the duties and responsibilities of a position. Nature of Work – This measures the characteristics inherent in the position. It considers the supervisory content of the work, analysis and problem solving required, degree of mental/physical effort and exposure to hazards, and the degree and extent of internal and external relations. Responsibility – This measures the accountability of a position for supervision exercised, decisions and actions, degree of control of assets, and accuracy and confidentiality of records and reports.

2.7.2 The Sub-Classification Factors The 3 basic classification factors are divided into the following sub-factors: 2.7.2.1 Skills and Knowledge • Education – This considers the minimum formal education, applicable training or equivalent
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Position Classification Plan knowledge required for the satisfactory performance of the duties and responsibilities of a position. • Experience – This considers the length of time necessary for an average new employee with the required minimum education to acquire the needed skills for satisfactory performance of the job.

2.7.2.2

Nature of Work • Supervision Received – This considers the type, frequency and latitude by which assignments and instructions are received, how work methods are followed, and how work is checked for quality and quantity. Analysis and Problem Solving Required – This considers the degree of difficulty and complexity of the assigned tasks and the extent to which the work involved requires analytical ability, exercise of judgment and creativity necessary to achieve the desired results. Mental/Physical Effort – This considers the amount and continuity of physical exertion or mental concentration required in the completion of work, taking into consideration the pressure and extent of physical and/or mental effort involved. Internal and External Relationships – This refers to the nature of communication and association with others, both within and outside of the office, as required for the satisfactory performance of the duties and responsibilities of a position on a regular basis. Contacts include personal discussions, telephone conversations and written communications. This sub-factor is evaluated according to the nature and limits of contact. Hardship, Hazard and Personal Risk Involved – This considers the degree and continuity of exposure to health or accident hazards in the performance of the duties and responsibilities of a position.

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Manual on Position Classification and Compensation 2.7.2.3 Responsibility • For Work of Others or Supervision Exercised – This sub-factor considers the responsibility of a position for the various facets of supervision such as work planning and organization, work assignments and review, and the exercise of supervisory functions. For Decision-Making – This measures the mental processes involved in weighing facts and conditions to determine appropriate courses of action. It reflects the extent of analysis and planning exercised, the creativity required in developing policies, rules, methods or procedures. It also considers the impact of such decisions. For Accuracy of Records and Reports – This considers the accuracy required and importance of information, records and reports prepared or reviewed by a position. For Funds, Property and Equipment – This considers the accountability of a position for assets such as cash, negotiable instruments, equipment, supplies, materials and tools. Negligence could result in monetary loss or property damage.

2.7.3 Other Classification Factors • • • • rank of the position in the organizational hierarchy; functions of the unit where the position is located; kind and number of existing positions in the unit performing similar or related tasks; consistency of the classification and salary grade assignment of the positions in the unit, in the agency, and in other government agencies; other quantitative factors, such as number of elementary/ secondary school teachers supervised, etc.

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Position Classification Plan

2.8 The Position Classification Process
The position classification process is the series of actions leading to the grouping of positions into classes or to the determination of the appropriate class for a given position using the position classification factors as guides. 2.8.1 Steps in the Classification Process There are 3 steps in the classification process. They are factfinding, analysis and evaluation. 2.8.1.1 Fact-Finding 2.8.1.1.1 Fact-finding involves the gathering of facts about the duties and responsibilities of a position. In fact-finding, the 2 sources of facts are as follows: • Primary Sources – These include the accomplished Position Description Form, incumbent of the position, the supervisor of the position, organizational charts and work samples; and Secondary Sources – These include laws, rules and regulations, standard operating procedures, reports and publications, forms and materials used.

2.8.1.1.2 Fact-finding may employ the following 4 techniques/tools: • Use of the Position Description Form (PDF) ♣ The PDF is the basic document in the position classification process. ♣ The PDF and the instructions for accomplishing the same are attached as Annexes B and C, respectively, of this Chapter. • Conduct of Work Audit

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Manual on Position Classification and Compensation ♣ The conduct of work audit involves the verification of the work through an interview of the incumbent of the position, the immediate supervisor or the next higher supervisor and when necessary, of peers or subordinates. It is intended to validate, clarify, or supplement information gathered from the PDF. Interviews are resorted to under the following circumstances: ♦ Information in the PDF is incomplete, unclear, or contains terminology, concepts or procedures not well understood; ♦ The tasks of the position involve different levels of difficulty; and ♦ The duties and stated pertain occupations. responsibilities to different

♣ The information gathered in the work audit are documented in the form of a written audit report containing the following: ♦ the title and item number of the position audited; ♦ the organizational location of the position; ♦ the persons interviewed: names, position titles, and item numbers; ♦ an accurate and adequate description of the work performed and the amount of time spent on various duties and responsibilities; and ♦ an analysis of the position stating the degrees of the pertinent allocation factors that were considered.
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Position Classification Plan • Observation of Work Operations ♣ This involves gathering facts through mindful watching of a work in process and the recording/summarizing of activities/ actions observed. Data gathered may be documented in the form of a flow chart. ♣ Flowcharting is an analytical technique to document the process of work or activities in a clear, concise and logical manner, showing the movements of documents and action taken through various steps from their origin to their final destination. • Use of Organizational Charts ♣ An organizational chart is a graphic presentation of the units, functions or positions of an agency. The three basic types of organizational charts are: ♦ Structural Organization Chart This chart is a graphic representation of the organizational units in boxes. This chart provides a basis for determining organizational relationships. ♦ Functional Chart This chart contains the statements of functions of all organizational units indicated in boxes. This chart provides information about the general objective and responsibilities of each unit. The duties and responsibilities of a position are better understood by analyzing the functions of a unit. ♦ Position Chart - This chart shows the authorized positions in the organizational unit, listed by item number, position title and salary
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Manual on Position Classification and Compensation grade. This chart ascertains the official location of the position and its relation to other positions in the organizational unit. 2.8.1.2 Analysis Analysis is the critical examination of the duties and responsibilities and other facts about the position. The process involves selecting, organizing and commenting upon the duties and responsibilities of the position in terms of the position classification factors to determine the distinguishing characteristics of the position. The steps in the analysis of the duties and responsibilities and other facts about the position follow: Step 1: Organize the facts obtained about the position by listing down its major duties and responsibilities. The major duties and responsibilities represent the primary reason for the position’s creation. Typically, they occupy most of the employee’s time. They may be performed in a continuous, uninterrupted manner or performed at recurring intervals. Make a separate list for incidental duties and responsibilities which generally occupy a small portion of the employee’s time and are not the primary purpose for which the position was created. Step 2: Determine the occupational group and the series on the basis of the kind of work involved in the position. Step 3: Tentatively determine the classes in the series to which the position may be classified using the position classification factors as guides. Step 4: Ascertain whether or not there are written standards or class specifications for the classes in the series.

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Position Classification Plan Step 5: Determine the distinguishing characteristics of the classes in the series. Step 6: If no class specifications are available, list the facts pertinent to the position being classified against those of positions already classified in the series. Hereunder is an illustrative example of analyzing a position for classification: Step 1: Facts as organized • • • • Location of Position - Accounting Division Immediate Supervisor - Accountant I Positions Supervised - 2 Accounting Clerk I and 1 Accounting Clerk II Actual Duties 50% Supervises and participates in the work of accounting clerks engaged in posting and balancing accounts in the general ledger and maintaining books of accounts; 40% Prepares trial balance and monthly income and expenditures; and 10% Prepares correspondences bookkeeping matters as may directed by supervisors. on be

Step 2: Series of classes as determined by the kind of work: • __________________ Accounting Clerk and Bookkeeper - recording and posting financial transactions and maintaining books of accounts

Note: The classes under the Accounting Group mentioned on this page and on the succeeding 2 pages have been allocated to the corresponding levels of Administrative Officer, Administrative Aide and Administrative Assistant classes pursuant to Budget Circular No. 2004-3 dated March 6, 2004.

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Manual on Position Classification and Compensation Step 3: The position appears to be allocable to the class, Bookkeeper. Step 4: Class specifications or written standards are available for the Accounting Clerk and Bookkeeper series. Step 5: Distinguishing characteristics of the following classes have been determined as follows: • Accounting Clerk I – posts data and updates records for payment and deductions for salaries, wages and other accounts Accounting Clerk II - maintains subsidiary ledgers; reconciles subsidiary ledger balances with controlling account balances in the general ledger Accounting Clerk III – supervises the activities of accounting clerks engaged in posting entries from the journals to the subsidiary and general ledgers Bookkeeper – supervises the work of accounting clerks; prepares trial balances; maintains the journal or books of original entry; prepares adjusting entries and bank reconciliation

Step 6: This is not necessary in this particular case since class specifications or written standards are available. 2.8.1.3 Evaluation After the duties and responsibilities and other facts about the position have been reviewed and analyzed the next step is to evaluate it, i.e., to determine its relative worth. 2.8.1.3.1 The Pre-Determined Class Method • The Philippine government’s Position Classification Plan adopts the predetermined class method in the evaluation process. Under this method,
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Position Classification Plan classes with their appropriate salary grades and written standards are established. • Using the position classification factors as guides, the facts pertaining to the position are compared with those in the class specification or standards for the class. If the duties and responsibilities of the position meet the allocation standards for the class, a decision is made to allocate the position to the class. Using the same position in Sub-item 2.8.1.2 as an example, the following last 2 steps constitute the evaluation process:

Step 7:

All facts about the position are compared with the facts found in the class specifications for the series. All facts about the position are found in the class, Bookkeeper. Decide to allocate the position to the class, Bookkeeper, SG-8.

Step 8:

2.8.1.3.2 Evaluation of a Position in the Absence of a Class Specification In the absence of a class specification, a classifier must resort to the following: • • Determine the series to which the position may be allocated. Determine whether or not there have been positions classified under the series. If there are positions classified under the series, compare the facts pertaining to the position being classified against those of the positions already classified to the series. If the duties and responsibilities of the position are comparable with those of the classified
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Manual on Position Classification and Compensation position, the position is allocated to the particular class in the series. • If the duties and responsibilities of the position do not fall within the allocation standards for the class requested or any other existing class, consider recommending the creation of a new class.

2.8.1.3.3 Evaluation of Mixed-Grade Positions • “Mixed-Grade” positions refer to positions in which the work falls partly in one class and partly in another. There is no single rigid rule for determining the classification of this kind of position. Only general guides can be cited because these positions occur under so many circumstances.

♣ As a general rule, the preponderant duties and responsibilities or those which take up the majority of the employee’s working time must govern. ♣ When the position involves a set of duties and responsibilities or a task which enhances the relative value of the position and is paramount in influence or weight even though it does not consume a majority of the employee’s time, the position may be classified on that basis. In this case, the following conditions should be observed: ♦ The duties and responsibilities serving as the bases for the decision are regular or recurring and are not emergency, infrequent, incidental or temporary in nature. ♦ The duties and responsibilities serving as basis for the decision are so different from the other duties and responsibilities as to require
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Position Classification Plan materially higher qualifications, which are, or will be reflected in the qualifications standards used in recruiting, testing and selection.

2.9 Administration and Maintenance of the PCP
The PCP was designed as guide for the proper classification of positions in the Philippine government based on major duties and responsibilities of the position in pursuance of agency functions. To implement and manage the PCP, the Department of Budget and Management (DBM) formulates and issues policies, standards, rules and procedures. Changes in organization, duties and responsibilities, however, may result from reorganization, new work techniques or procedures, abolition of functions, changes in administrative policies, or a variety of other causes. Effect of such changes on the contents of the PCP must be determined so that the latter could be modified/updated. The administration and maintenance of the PCP, therefore, is a continuous process which rests on those concerned in the DBM and in government agencies. 2.9.1 Rules and Procedures in the Administration of the PCP 2.9.1.1 Original Classification Original classification action is applied to positions classified for the first time such as new positions. • The agency submits a request for creation of positions, together with the following: ♣ justifications for their creation; ♣ duly accomplished PDFs; ♣ organizational charts; ♣ funding source; and ♣ such other documents as may be necessary. • The DBM analyst evaluates the necessity for the creation of positions and classifies the positions. For itemized positions, a corresponding Notice of Organization, Staffing and Classification Action
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Manual on Position Classification and Compensation (NOSCA) is issued to the agency. For nonitemized positions such as casual or contractual positions, DBM issues a letter authorizing their creation and their corresponding classification. • The details in the NOSCA serve as inputs to the Personal Services Itemization and Plantilla of Personnel (PSIPOP) for itemized positions issued by the DBM to agencies each year. The original copy of the agency accomplished PSIPOP is submitted to the DBM. For non-itemized positions, the agency prepares the corresponding Plantilla of Personnel.

2.9.1.2

Reclassification Reclassification is a form of staffing modification and/or position classification action which may be applied only when there has been a substantial change in the regular duties and responsibilities of the incumbent of the position and which may result in a change in any or all of the position attributes: position title, level and salary grade. Such reclassification, however, should not result in a distortion in the staffing pattern nor in an unauthorized change in organizational structure or leveling, not only within the unit where said position is deployed, but also among equivalent or parallel structures in the agency. Reclassification generally involves a change in the position title and may be accompanied by an upward or downward change in salary grade. However, if the salary grade of the position is maintained, the staffing modification and/or position classification action is deemed as retitling, provided that such is within the same occupational group. 2.9.1.2.1 Reclassification may also be applied when: 2.9.1.2.1.1 There are changes in the level/ category of the government entity which will bear on the level of key positions, e.g., President and Vice-President positions in state universities and colleges (SUCs) and General Manager, Assistant
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Position Classification Plan General Manager, and other Managerial positions in Local Water Districts; 2.9.1.2.1.2 There are changes in quantitative factors used in determining the appropriate position and level in accordance with existing position classification standards, e.g., coverage of agricultural facility for certain positions under the Department of Agriculture; There are changes in the position titles and salary grades in the Index of Occupational Services, Position Titles and Salary Grades approved by the DBM; and The reclassification of a position is provided by law or Presidential authority.

2.9.1.2.1.3

2.9.1.2.1.4

2.9.1.2.2 The following shall not be used as bases for the reclassification of positions: 2.9.1.2.2.1 Non-performance of the regular duties and responsibilities of a position by reason of the incumbent’s inability or incompetence; New duties/assignments which are temporary in nature; Qualifications of the incumbent except those enumerated in items 2.9.1.2.3.1 to 2.9.1.2.3.3

2.9.1.2.2.2 2.9.1.2.2.3

2.9.1.2.3 The following are the instances when reclassification is based on the qualifications of the incumbent:

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Manual on Position Classification and Compensation 2.9.1.2.3.1 Implementation of the Equivalents Record Forms (ERFs) of teachers pursuant to Section 14 of Presidential Decree No. 985, as implemented by DBM Circular Letter No. 84040 dated May 30, 1984 and Budget Circular No. 2004-1 dated January 23, 2004; Implementation of the Master Teachers career path provided under Executive Order No. 500 dated March 21, 1978, as implemented by National Budget Circular (NBC) No. 303 dated April 10, 1979 and National Compensation Circular No. 24 dated May 20, 1983; and Implementation of NBC No. 461 dated June 1, 1998 for faculty members of SUCs, higher education institutions, and TESDA technical education institutions, and of NBC No. 308 dated May 28, 1979 in the case of faculty members of the University of the Philippines System and the Mindanao State University System.

2.9.1.2.3.2

2.9.1.2.3.3

2.9.1.2.4 A position may be reclassified if the incumbent fully meets the CSC’s qualification standards requirement for the position as reclassified, pursuant to CSC law, rules and regulations. 2.9.1.2.5 Reclassification shall not apply to vacant regular positions which necessitate changes in their position titles for being under any of the instances cited in items 2.9.1.2.1.1 to 2.9.1.2.1.4. Instead, they shall be converted, i.e., they shall be abolished and the appropriate positions shall be created.
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Position Classification Plan 2.9.1.2.6 Procedural Guidelines 2.9.1.2.6.1 Government agencies shall submit to the DBM Budget and Management Bureau or Regional Office concerned their requests for reclassification of positions as endorsed by agency heads, together with the following: • • • Duly accomplished Position Description Forms (PDFs); Organization, functional and position charts; Justification reclassification positions; for of the the

A certification that the incumbent fully meets the qualification standards requirement for the position as reclassified, pursuant to CSC rules and regulations. If no amount is appropriated specifically for the reclassification of positions, a proposal to implement the “scrap and build” policy, i.e., funded vacant positions are to be offered for abolition which shall be used as funding source for the said purpose; and Justification for the abolition of the funded vacant positions by considering the effects on the operation of the affected units.

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Manual on Position Classification and Compensation 2.9.1.2.6.2 The analyst in the DBM Office concerned shall evaluate the requests. Should there be a need to validate, clarify or supplement information gathered from the PDFs, the agencies shall assist the DBM analyst in his/her conduct of position/work audit. An agency shall be informed of the approval of the reclassification of positions through a Notice of Organization, Staffing and Compensation Action (NOSCA) or through a DBM letter, as the case may be; otherwise, the agency shall be informed of the denial action through a DBM letter. A request for reconsideration may be made within thirty (30) calendar days after receipt of the NOSCA/DBM action. Agencies which have been granted budget flexibilities by the DBM may reclassify filled positions provided that the condition in item 2.9.1.2.4 is satisfied; that such are in accordance with the position classification standards and that such are within their budget management authorities. Any additional funding requirement shall be sourced out of the abolition of funded vacant positions. Upon receipt of the budgetary actions made by the agency, the DBM analyst concerned shall evaluate the same. If found in order, the corresponding NOSCA shall be
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2.9.1.2.6.3

2.9.1.2.6.4

2.9.1.2.6.5

Position Classification Plan prepared to formalize the change in the GMIS database, subject to approval of the DBM authorities concerned. The NOSCA shall be issued to the agency. However, if upon receipt of the budgetary actions, the reclassification actions made by agencies are not in order, the DBM reserves the right to make alterations therein. 2.9.1.2.6.6 In the implementation of reclassification action, the following salary rules shall apply: 2.9.1.2.6.6.1 An employee whose position is reclassified without change in salary grade shall continue to be paid his present salary. If reclassified to a position with a higher salary grade, the following salary rules on promotion shall apply: 2.9.1.2.6.6.2.1 If the basic salary of the employee in his/her former position is below the hiring rate of the reclassified position, the employee shall be allowed the
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2.9.1.2.6.6.2

Manual on Position Classification and Compensation 1st step or the hiring rate; 2.9.1.2.6.6.2.2 If the present salary falls in between steps, the employee shall be allowed the higher step; 2.9.1.2.6.6.2.3 If the present salary is in excess of the maximum or 8th step, the employee shall be allowed to continue to receive his/her present salary with the excess over the 8th step treated as “transition allowance” which shall be deducted from any future salary adjustment of the employee. 2.9.1.2.6.6.2.4 If to a lower salary grade, the employee shall be allowed to continue to receive his/her present salary.

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Position Classification Plan 2.9.1.3 Reconsideration An agency may request reconsideration of the classification/reclassification of a position if it believes that the classification/reclassification action made was erroneous on the grounds that pertinent facts were not considered in the evaluation, and that such omission caused the classification error. • A request for reconsideration may be made within 30 calendar days after receipt of the NOSCA/DBM action. The agency submits the request for reconsideration together with the following: ♣ ♣ ♣ identification of the position which classification is requested for reconsideration; proposed classification of the position; and explanation why the existing classification was erroneous, or a declaration of the facts which, if considered, would have resulted in a different classification.

• •

The DBM evaluates the request in accordance with existing position classification standards. The DBM issues a revised NOSCA or a letter if a request concerns casual/contractual positions. For a denied request, the agency is informed through a DBM letter.

2.9.1.4

Upgrading Upgrading of a class involves upward change in the salary grade allocation of the class and consequently all positions allocated to the class, without change in class title, if the duties and responsibilities and other facts about the class so warrant.

2.9.1.5

Retitling Retitling of a class involves a change to a more appropriate title of a class and consequently all positions allocated to the class, without change in salary grade.
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Manual on Position Classification and Compensation 2.9.2 Effectivity of Implementation of Classification Actions 2.9.2.1 All classification actions take effect on the date indicated in the NOSCA or DBM letter. For positions in schools and educational institutions, the effectivity is not earlier than June 1 of the current year. For non-itemized positions, the effectivity date is indicated in the DBM letter. A reclassification action takes effect on the date indicated in the NOSCA but not earlier than the date when funds for the purpose are authorized in the General Appropriations Act. For positions under the Department of Education and other schools, the effectivity is not earlier than June 1 of the current year. The implementation of a reconsideration action takes effect on the effectivity date of the original classification/ reclassification of a position. The retitling/upgrading of a position takes effect on the date indicated in the NOSCA.

2.9.2.2

2.9.2.3

2.9.2.4

2.9.3 Maintaining/Updating the PCP The DBM maintains/updates the PCP as follows: 2.9.3.1 Creation of New Occupational Services, Occupational Groups, Classes in Series New occupational services, occupational groups, classes in series may be created when new duties and responsibilities are found to exist or are not comparable to those existing in the PCP such that the positions cannot be allocated to existing classes. 2.9.3.2 Merging, Splitting, Abolition of Occupational Services/Occupational Groups/Classes in Series Existing occupational services, occupational groups, classes in series may be merged, split, or abolished when existing conditions of work assignments on which they were based are modified. These may include splitting of functions, addition of new functions, abolition of functions, changes in work methods due to technological development, organizational development, changes in work entrance
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Position Classification Plan requirements, etc., which may cause the addition to or changes in the duties and responsibilities of a position. 2.9.3.3 Procedure • The BMB/DBM Regional Office concerned conducts initial evaluation of the need for creation/ merging/splitting/abolition of occupational services/ occupational groups/classes in series. It submits its recommendations relative thereto, the corresponding draft class specifications and other pertinent documents to OPCCB. Using the position classification factors as guides, the OPCCB breaks down the facts pertaining to the positions and compares them with those of existing classes to ascertain the need for creation of new/modified classes. After deciding that new/modified classes are to be created, OPCCB undertakes the following: ♣ Determines the occupational occupational group; service and

♣ Within the occupational group, determines the different levels of difficulty of duties and responsibilities; ♣ Reviews and specifications; finalizes the draft class

♣ Allocates each class to a salary grade on the basis of grade level definitions or in the absence thereof, on the basis of comparability with established classes in the PCP; ♣ Submits its recommendation for approval of the DBM Secretary; • The DBM, through the OPCCB, issues a notice of change in the IOS to all DBM offices and to the government agencies concerned; and The BMB or DBM Regional Office concerned adopts the new/modified class in processing the agency request.
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Manual on Position Classification and Compensation 2.9.3.4 Updating/Revision of Class Specifications or Standards Occasionally and following consultations with government agencies, the DBM through the OPCCB updates class specifications or standards. The DBM may revise, supplement or abolish existing class specifications or standards so that as nearly as practicable, positions existing at any given time within the government service shall be covered by current standards. 2.9.3.5 Revision of Rules and Procedures The rules and procedures for implementing the PCP are revised as the need arises to keep pace with changes in administrative policies and other developments in the government. 2.9.3.6 Use of Official Class Titles The class titles found in the IOS shall be the official class titles of positions and shall be used for personnel, budget and fiscal purposes, without precluding the use of alternate titles for internal administration, public convenience, law enforcement, or similar purposes.

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Position Classification Plan Annex A SN ELEC1 ELECTRICIAN I Definition Under general supervision, does skilled electrical work in the installation maintenance and repair of electrical wiring and equipment; or of power lines and electrical lighting; or of electrical generating and utilization equipment; and does related work. Characteristics Follows blueprints and specifications for the installation of channel boards, circuits and outlets and other equipment; installs electrical wiring, conduits, switches, cables, fuse boxes or circuit breakers in buildings, plants and pumping stations and other structures; installs electrical circuits for building automation controls, security devices, fire alarm devices, audio and video systems, communication trunks, air-conditioning and refrigeration systems; installs additional circuits for additional lights and appliances; installs electrical equipment such as storage heaters, water heaters and electrical signs; installs electrical wiring in marine craft; tests electrical circuit to ensure safe operation as designed; installs coaxial or fiber optic cable from computers and other telecommunications equipment; regularly inspects electrical wiring and equipment to identify potential problems; takes corrective action immediately; repairs or replaces defective parts of the electrical system. Or interprets electrical transmission and distribution plans; installs electric wires from powerhouse to pole; installs on poles electrical fixtures and equipment such as insulators, transformers, street lighting, lightning arresters and platforms and traffic signals; tests installed electrical equipment and lighting to ensure safe operation; installs connecting wires from main power lines to buildings and other structures; tests, locates and inspects main line and connecting lines to locate source of power failure; repairs or replaces defective parts of the power system and lighting; may operate aerial bucket truck or any large construction equipment. Or determines repairs and replacements to be made on electrical generating, utilization and control equipment using testing instruments; following using diagrams, rewinds armatures and field coils of motors and generators and primary and secondary windings of transformers; checks and repairs electric wiring of motor vehicles and heavy equipment; repairs, rebuilds
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Manual on Position Classification and Compensation and recharges storage batteries; repairs magnetic switches and horn relays; repairs water temperature and oil gauges and indicators. Qualifications Guide Any combination of training and experience equivalent to graduation from secondary trade school.

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Position Classification Plan Annex B
Republic of the Philippines DBM-CSC Form No. 1 (POSITION DESCRIPTION FORM) Name) 2. DEPARTMENT, CORPORATION OR AGENCY/LOCAL GOVERNMENT UNIT DEPARTMENT/BRANCH/DIVISION : 1. NAME OF EMPLOYEE : : (Family Name) (Given Name) (Middle : : 3. BUREAU OR OFFICE : : : 5. WORK STATION/PLACE OF WORK : 6a. PRES. APPROP.
ACT/BOARD RES./ ORD. NO. ITEM NO. : 6b. PREV. APPROP. : ACT/BOARD RES./ : ORD. NO. : ITEM NO. : : : : 7.a SALARY AUTHORIZED : 7.b : OTHER COMPENSATION :

4.

ACTUAL

: : 9. WORKING OR PROPOSED TITLE : : 10. DBM CLASSIFICATION OF THIS : 11. OCCUPATIONAL GROUP TITLE POSITION : (Leave Blank) : 12. FOR LOCAL GOVERNMENT POSITION, CHECK GOVERNMENTAL UNIT AND UNIT CLASS MUNICIPAL CITY PROVINCE 8. OFFICIAL DESIGNATION OF POSITION 1st 2nd 3rd 4th 5th 6th

:

13. STATEMENTS OF DUTIES AND RESPONSIBILITIES. If more space is needed, please attach additional sheets. Percent of Working Time : : : : : : : : : : : : Duties and Responsibilities

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Manual on Position Classification and Compensation
14. POSITION TITLE OF IMMEDIATE SUPERVISOR : 15. POSITION TITLE OF NEXT : HIGHER SUPERVISOR : 16. NAMES, TITLES and ITEM NOS. OF THOSE YOU DIRECTLY SUPERVISE (If more than seven (7), list only their item nos. and position titles.) 17. MACHINES, EQUIPMENT, TOOLS, etc. used regularly in performance of work ______________________________________________________________________ __ 18. CONTACTS : 19. WORKING CONDITIONS Occasional Frequent : General Public : Normal Working Condition Other Agencies : Field Work Supervisors : Field Trips Management : Exposed to Varied Weather Others (Specify) : Others (Specify) 20. I certify that the above answers are accurate and complete. Date Signature of Employee

TO BE FILLED OUT BY IMMEDIATE SUPERVISOR 21. Describe briefly the general function of the unit or section. 22. Describe briefly the general function of the position. 23a. Indicate the required qualifications by years and kind of education considered in filling up a vacancy for this position. (Keep the position in mind rather than the qualifications of the present incumbent. This item should be filled for all positions other than teaching.) Education: Experience: 23b. Licenses or certificates required to do this work, if any. 24. I hereby certify that the above answers are accurate and complete. Date 25. APPROVED: Date Head of Agency Signature and Title of Immediate Supervisor

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Position Classification Plan Annex C
INSTRUCTIONS FOR ACCOMPLISHING THE POSITION DESCRIPTION FORM

The following instructions show how the Position Description Form (PDF) should be filled and how the supervisor should review it.
THE ADMINSTRATIVE OFFICER

The Administrative Officer or equivalent officer of the department, corporation, agency, or local government unit in charge of human resource management functions in which the position is located should fill in Items 1 to 12, except Item 11. Item 1. Name of Employee – Write the name of the employee presently occupying the position. Write the word “vacant” if the position is vacant at the time this form is accomplished. Item 2. Department, Corporation or Agency/Local Government – Write down the exact name of the Office. Avoid using abbreviations. (Write “Department of Justice” instead of “DOJ” if a department, “Social Security System” instead of “SSS” if a corporation, and “Rizal Provincial Government” instead of “Rizal” if a local government unit.) Item 3. Bureau or Office – Write down the major subdivision of the agency to which the position belongs and is directly under, such as “Bureau of Immigration” or “Financial and Management Service” if in the department proper. Item 4. Department/Branch/Division – Write down the immediate subdivision of the office indicated in Item 3 where the position is deployed, such as “Administrative Services Department,” “Personnel Branch,” or “Management Division.” Item 5. Work Station/Place of Work – Indicate the geographic location of the position, such as Manila, Bataan, Davao, etc. Items 6a and 6b. Appropriations Act/Board Resolution - Write down the present and previous appropriations act, board resolution or ordinance number and the item number of the position in said appropriations act, board resolution or ordinance. Items 7a and 7b. Salary and Other Compensation – Write down the salary of the position as authorized in the appropriations act, board resolution
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Manual on Position Classification and Compensation or ordinance and the actual salary of the employee occupying the position. If the position is vacant at the time this form is being accomplished, indicate N.A. for not applicable opposite actual salary. Write down the other regular compensation for the position. Item 8. Official Designation of Position – Write down the class title of the position as authorized in the appropriations act, board resolution or ordinance. Item 9. Working or Proposed Title – Write down the class title of the position as requested. Item 10. DBM Classification of this Position – Write down the classification of the position as certified to the agency by the DBM. Leave blank if the position is new and not yet classified. Item 11. Occupational Group Title – Leave this blank. DBM will indicate the occupational group title after the position has been classified. Item 12. For local government positions, check the appropriate local government unit and income class of the unit where the position is authorized. THE EMPLOYEE Writing the statements of duties and responsibilities (position description) is the responsibility of the employee holding the position as well as his/her supervisor so as to insure the adequacy, validity and correctness of the statements made therein. Any duly accomplished PDF submitted, signed and endorsed becomes an official record and a public document. Therefore, care should be taken in accomplishing the PDF. The employee who presently occupies the position should write the description of the duties and responsibilities of the position as performed and understood by him/her. In case the position is vacant, the immediate supervisor of the position shall accomplish the PDF for the position. Below are pointers in writing position descriptions: A. Do not attempt to write down in a single sitting all the duties and responsibilities of the position. Take time and give them a little thought. Note down on a sheet of paper the duties and responsibilities as recalled. Examine the relationship of the position with the other positions in the organization. This will help in visualizing the tasks performed by the position in the overall organizational pattern. B. After all the duties and responsibilities of the position have been written, rearrange them in descending order from the most important to the least important, indicating the percent of working time spent on each of the duties and responsibilities.
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Position Classification Plan C. Simple, clear and short statements should be used in discussing the duties and responsibilities. Such statements, therefore, should indicate the what-it-is, the why or purpose, and the how-it-is accomplished. Samples of the work which cannot be adequately described should be attached to the PDF such as reports made, forms accomplished, designs and drawings made, etc. D. Avoid using vague terms such as “maintains,” “checks,” “helps,” and “prepares.” Explain in detail how the position “maintains” mechanical equipment and/or records; “checks” plans and/or reports; “helps” carpenters or engineers; “prepares” reports and/or layouts. For example, a statistician may “prepare” statistical reports, and so does a typist. E. Finally, copy what were written on the sheet of paper to the PDF under Item 13 (Statements of Duties and Responsibilities). It is suggested that before doing so, a final review of the statements be made by asking the following questions: Have all the duties and responsibilities pertinent to the position been written down? Are the duties and responsibilities statements written in the most concise and specific terms possible and outlining the what, why and how? Can the position description be used as an instruction sheet for a new employee of the position? Item 13. Statements of Duties and Responsibilities. This is the most important part of the form. Write down in detail what are actually done by the position. The “Percent of Working Time” in the left-hand column should indicate the percentage of working time consumed in performing each statement of duties and responsibilities. List the duties and responsibilities in the order of their importance with the most important duty and responsibility first, the second most important duty second and so on. State fully whether instructions are received in detail or in a general way (work is reviewed closely or from time to time only). Describe also the degree of supervision received and given to subordinates, if a supervisor). “Degree of Supervision Received” means the amount and type of instructions and guidance usually received from the immediate supervisor, including the rules and regulations, office practices and procedures and the extent the supervisor controls the performance of the subordinate’s work. Item 14. Position Title of Immediate Supervisor – Write down the authorized position or class title of the first or immediate supervisor. “Immediate supervisor” refers to the supervisor nearest in level to the position supervised. For example, in a division consisting of seven (7) positions,
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Manual on Position Classification and Compensation inclusive of one (1) Information Officer V as chief of division and one (1) Information Officer IV as assistant chief of division, the immediate supervisor is the latter and not the former. Item 15. Position Title of Next Higher Supervisor – Write down the authorized position or class title of the next higher supervisor. In the example given in Item 14, this would be the chief of division, the Information Officer V. Item 16. Names, Titles, and Item Numbers of Employees Supervised Directly – One supervises employees when one gives work assignments or instructions to them and reviews their work. Write down the names, item numbers, and positions or class titles of the employees supervised. Item 17. Machines, Equipment and Tools Used – Write down the machines, equipment or tools used regularly such as a typewriter, mechanic’s tools or calculator or those operated regularly such as a water pump, diesel generator or computer. Item 18. Contacts – Check the appropriate box to describe the approximate frequency of the contacts required of the position in connection with its work. Item 19. Working Condition – Check the appropriate box that describes the working condition of the position. Item 20. Certification by the Employee for Accomplishing the Form – Indicate the date the form was fully filled-up. The incumbent of the position signs his/her name. Leave this item blank if the position is vacant. THE SUPERVISOR The first or immediate supervisor should review the accuracy of the statements from Items 13 to 20. He may add to or explain any of the employee’s statements that may be inaccurate or incomplete. He/She should also fill in Items 21 to 24. Item 21. Brief Description of the General Function of the Unit or Section – Write a brief description of the function of the unit where the position is deployed. Item 22. Brief Description of the General Function of the Position – Write a brief description of the function of the position. Any exception to any statement of duties and responsibilities described by the employee under Item 13 of this form may be indicated. Item 23a. Minimum Qualifications Required – The supervisor indicates the suggested minimum number of years of training and experience which will have to be considered of an applicant in filling a vacancy for this position. It is
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Position Classification Plan important that the qualifications of the present incumbent of the position should not be considered. Other skills, knowledges and abilities preferably required of an incumbent of this position should also be indicated. The filling of this item is important especially if the position under consideration is new or proposed. Item 23b. Licenses or Certificates of Proficiency. Indicate licenses or certificates required of an incumbent of this position. If no license or certificate is required, write down “None.” Item 24. Certification of Immediate Supervisor – After reading the statements carefully and giving comments on the adequacy, validity and correctness of the facts stated, the immediate supervisor certifies to the completeness and accuracy of the statements/data in the PDF by signing his/her name and indicating the date of certification. THE AGENCY HEAD Item 25. Approved - The agency head signs his/her name on the space provided to indicate his/her approval of the statements/data in the PDF.

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Chapter 3
The Compensation Plan
3.1 The Compensation Plan The Compensation Plan (CP) under RA No. 6758 is an orderly scheme for determining rates of compensation of government personnel. It was crafted to attract, motivate and retain good and qualified people to accomplish the Philippine Government’s mission and mandates, to encourage personal and career growth, and to reward good performance and length of service. To achieve these goals, the CP has a mix of compensation components, namely; basic pay or salaries, fringe benefits, incentives and non-financial rewards which provide reasonable levels of compensation packages within existing government resources, and are administered equitably and fairly. 3.2 Concepts of Compensation 3.2.1 Total Compensation – This represents all financial and non-financial rewards and entitlements arising from employment relationship. 3.2.2 Intrinsic Rewards - These are derived from the work environment, which are valued internally by an individual, like quality of worklife, job satisfaction, challenge, personal and professional growth opportunities, feeling of belonging, freedom to act, visionary leadership, and the like. 3.2.3 Extrinsic Rewards/Entitlements – These comprise all compensation benefits, both monetary and non-monetary, and received directly or indirectly by the employee. 3.2.4 Direct Compensation - These are cash compensation items which are either fixed or variable and are paid to an employee for the performance of work. These include basic pay, cash allowances and fringe benefits. 3.2.5 Indirect Compensation - These are usually non-cash or in-kind benefit items that contribute to the employee’s welfare, standard of living and personal development. These include protection programs such as insurances, paid leaves, perquisites and training programs.

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Manual on Position Classification and Compensation 3.2.6 Fixed Compensation – These are cash compensation items which are regularly granted to all employees. Examples are: basic salaries, Personnel Economic Relief Allowance (PERA), and Additional Compensation (ADCOM). 3.2.7 Variable Compensation - These are cash compensation items which are granted to employees based on certain qualifications or rendition of special services. Examples are, hazard pay, honoraria, night-shift differential pay, and overtime pay. 3.2.8 Basic Pay - This is the primary cash compensation for work performed, excluding any other payments, allowances and fringe benefits. 3.2.9 Salary - This refers to the basic pay for work performed by an employee paid on a monthly basis. 3.2.10 Wage – This refers to the basic pay for work performed by an employee paid on a daily or hourly basis. 3.2.11 Fringe Benefits - These refer to cash compensation benefits given to an employee to supplement the basic pay. These include cash allowances, bonuses, premium payments, etc. The chart on page 3-3 shows the Concept of Total Compensation and what comprises it under the existing Compensation Plan of the Philippine Government.

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The Compensation Plan

Total Compensation
Intrinsic Rewards
job satisfaction personal/career growth quality of worklife sense of belonging

Extrinsic Rewards

Direct Compensation

Indirect Compensation

Fixed
Basic Pay • Salary • Wage Fixed Fringe Benefits • PERA • ADCOM • uniform allowance

Variable
Variable Fringe Benefits • hazard pay • honoraria • overtime pay • night-shift differential pay • subsistence Allowance

Protective
health insurance retirement benefit employee compensation insurance

Paid leave
vacation leave sick leave special privilege leave paternity/maternity leave single parent’s leave monetization of leave credits
Personal Development

Additional Services free medical/dental clinic shuttle service free meals (hospitals)

sports activities cultural activities training programs scholarship grants intership programs Perquisites service car mobile/cell phone assigned driver/secretary preferred office furnishing assigned parking space free quarters newspaper subscriptions __ __ __ __ __ __ __

Others __ housing loan __ PAG-IBIG Fund benefits __ Provident Fund benefits __ quarters privilege __laundry allowance

3.3 Policy of the State Section 2 of RA No. 6758 provides the compensation policy of the State, to wit: "It is hereby declared the policy of the State to provide equal pay for substantially equal work and to base differences in pay upon substantive differences in duties and responsibilities, and qualification requirements of the positions. In determining rates of pay, due regard shall be given to, among others, prevailing rates in the private sector for comparable work. " 3.4 Governing Principles of the Compensation Plan Pursuant to RA No. 6758, the CP is based on the following principles: 3.4.1 All government personnel shall be paid just and equitable salaries and wages.
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Manual on Position Classification and Compensation 3.4.2 The basic pay for all personnel in the government shall generally be comparable with those in the private sector. 3.4.3 The total compensation program of government personnel shall be maintained at a reasonable level in proportion to the national budget. 3.4.4 Government compensation rates shall be reviewed periodically taking into account possible erosion in purchasing power due to inflation and other economic factors. 3.5 General Guidelines on Government Compensation Government compensation shall be governed by the following general guidelines: 3.5.1 Each class of positions in the Position Classification Plan shall be assigned a salary grade. 3.5.2 Compensation for part-time services rendered shall be computed proportionately. 3.5.3 Across-the-board salary or wage adjustment shall be granted to all employees. 3.5.4 Salary and other compensation adjustments including the grant of new benefits shall be covered by appropriate legal basis or authority. 3.5.5 As a general rule, no official or employee shall receive a salary equal to or higher than the salary of his/her immediate supervisor, except when otherwise authorized by law, rules and regulations. 3.5.6 Unless otherwise specifically approved by the President, no person shall be appointed in the government under the guise of voluntary service, with compensation below the hiring rate for the position, provided that, the application of this provision may be waived to authorize voluntary service in the Armed Forces of the Philippines or in connection with relief operations. 3.6 Contents of the Compensation Plan The CP contains the following: • • • Salary schedule; Salary rules; and Policies, rules and regulations related to other compensation such as allowances and other benefits.
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The Compensation Plan

3.7 The Salary Schedule • The salary schedule under the CP is a table of salary grades with each salary grade consisting of several salary steps with corresponding money values. A salary grade represents a level of difficulty and responsibility of work. The present Salary Schedule consists of 33 salary grades. Each of Salary Grades 1 to 32 consists of 8 salary steps which are used to provide incentives for length of service in the position. Salary Grade 33 has only 1 salary step. The 1st salary step is the minimum or hiring rate. The 2nd to 7th salary steps are the intermediate salary rates. The 8th step is the maximum salary rate. All rates in the Salary Schedule represent full compensation for full-time employment in a 40-hour work week regardless of where the work is performed. The daily wage represents full compensation for full-time employment in an 8-hour work day regardless of where the work is performed. The daily rate shall be computed based on the authorized/actual monthly rate for the position divided by 22 days.

• •

3.8 Salary Rules The rules governing the implementation of the salary schedule are as follows: 3.8.2 Hiring Rate 3.8.2.1 3.8.2.2 The first step in the salary grade for a given class of positions shall be the hiring rate for new employees. No employee shall receive a salary less than the hiring rate for the position.

3.8.3 Promotion – This is a movement from a lower level position to a higher level position within the same or in another organizational unit in the same department or agency.

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Manual on Position Classification and Compensation

3.8.3.1

If the actual salary of the employee at the time of his/her promotion is below the hiring rate of the new position, he/she shall be allowed the hiring rate or 1st step of the salary grade of the new position. If the present salary falls between steps, he shall be allowed the next higher step, i.e., the immediately succeeding step to an off-step salary rate. Hence, if the salary rate falls between steps 3 and 4, the next higher step is step 4. If the present salary is equal to any of the steps of the new position, he/she shall be allowed the next higher step. However, if it is equal to the maximum or 8th step, he/she shall only continue to receive the same salary rate. If the present salary is over the maximum or 8th step of the new position, he/she shall continue to receive his/her present salary. Any excess over the 8th step shall be treated as transition allowance which shall be considered as advanced implementation of future salary increase/s.

3.8.3.2

3.8.3.3

3.8.3.4

3.8.3 Demotion – This is a movement from a higher level position to a lower level position within the same or in another organizational unit in the same department or agency. 3.8.3.1 If the demotion is due to the exigency of the service, the employee shall be allowed to continue to receive his/her present salary in the higher level position. If the demotion is voluntary or at the instance of the employee or a result of disciplinary action, he/she shall be allowed only the hiring rate of the lower level position.

3.8.3.2

3.8.4 Transfer – This is a movement from one position to another from one department or agency to another, or from one organizational unit to another within the same department or agency. 3.8.4.1 3.8.4.2 If the transfer is to a higher level position, the salary rules on promotion shall apply. If the transfer is to a position of equivalent rank or of the same salary grade as the previous position, the employee shall continue to receive his/her present salary.
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The Compensation Plan

3.8.4.3

If the transfer is to a lower level position, the salary rules on demotion shall apply.

3.8.5 Reclassification of Position – This is a form of position classification action which may result in a change in position title or position level, and may or may not involve a change in salary grade. 3.8.5.1 An employee whose position was reclassified to another position at the same salary grade shall continue to be paid his/her present salary rate. If reclassified to a position with a higher salary grade, the salary rules on promotion shall apply. If reclassified to a position with a lower salary grade, the employee shall be allowed to continue to receive his/her present salary.

3.8.5.2 3.8.5.3

3.8.6 Reorganization – This involves the restructuring of the organization and staffing of government agencies for the efficient conduct of their functions, services and activities. 3.8.6.1 An employee who holds a permanent position in the old organization’s staffing pattern and is reappointed to a lower level position in the new staffing pattern shall continue to receive his/her actual salary at the time of reorganization. If an employee is reappointed to the same position or to a position at the same salary grade, he/she shall continue to receive his/her present salary. If an employee is reappointed to a higher level position, the salary rules on promotion shall apply.

3.8.6.2

3.8.6.3

3.8.7 Reemployment - An employee who was separated from the service because of reduction in force, reorganization, voluntary resignation or any non-disciplinary action such as dropping from the rolls and is reemployed, shall be paid the hiring rate or the 1st step of the salary grade of the position. 3.8.8 Reinstatement - An employee who was charged and terminated from government service but was subsequently exonerated and reinstated shall continue to receive his/her previous salary.

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Manual on Position Classification and Compensation

3.9 Other Compensation, Allowances and Benefits

3.9.1 Step Increment
Step increment is the increase in salary from step to step within the salary grade of a position. The grant of step increments to government personnel based on their lengths of service is pursuant to Item 8 of Joint Senate-House of Representatives Resolution No. 1, s. 1994, as adopted under Executive Order No. 164 (Adopting a Revised Compensation and Classification System in the Government), dated March 8, 1994. 3.9.1.1 Coverage Officials and employees of national government agencies (NGAs) including state universities and colleges (SUCs), government-owned or -controlled corporations (GOCCs), government financial institutions (GFIs) and local government units (LGUs) who are appointed in the career service under permanent status and in the non-career service whose positions are found in the regular plantillas of agencies 3.9.1.2 Not Covered 3.9.1.2.1 Career and non-career officials and employees who are occupying positions in agencies exempted from or not following RA No. 6758; Career Executive Service Officers whose step increments are governed by Career Executive Service Board Circulars; Military personnel under the Armed Forces of the Philippines, and uniformed personnel under the Department of the Interior and Local Government, Philippine Coast Guard under the Department of Transportation and Communications and National Mapping and Resource Information Authority under the Department of Environment and National Resources; and

3.9.1.2.2

3.9.1.2.3

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The Compensation Plan

3.9.1.2.4 3.9.1.3

Elective officials

Rules and Regulations 3.9.1.3.1 A one (1) step increment shall be granted to officials and employees for every 3 years of continuous satisfactory service in their present positions. The length of service in the present positions shall include the following: 3.9.1.3.2.1 Those rendered by incumbents before their positions were: • reclassified to classes with lower or the same salary grades, as in Illustrative Example 1, Annex “A;” allocated to lower or the same salary grades in a reorganization, whether or not the position titles were changed as in Illustrative Example 2, Annex “A;” and upgraded, i.e., with upward change in the salary grade allocation of a class of positions without change in the position title, as in Illustrative Example 3, Annex “A.” by incumbents

3.9.1.3.2

3.9.1.3.2.2

Those rendered before they were: •

transferred to other positions within the same NGA, SUC, GOCC or GFI, transferred to another agency or transferred/devolved to an LGU or vice versa, without change in position titles and in salary grades, as in Illustrative Example 4, Annex “A;”
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Manual on Position Classification and Compensation

separated due to phase-out of position during reorganization but subsequently re-appointed to the same positions or to other positions with the same or lower salary grades in view of the decisions of judicial/quasi-judicial bodies, as in Illustrative Example 5, Annex “A;” and placed under preventive suspension without pay but subsequently exonerated by appropriate judicial/quasi-judicial bodies, as in Illustrative Example 6, Annex “A;”

3.9.1.3.2.3

Those rendered by incumbents appointed to regular positions on a temporary/provisional status who have been subsequently appointed to the same positions in permanent status, as in Illustrative Example 7, Annex “A.”

3.9.1.3.3

Services rendered by incumbents under the following instances shall not be considered in the computation of their lengths of service: • • • Those rendered before their promotion; Those rendered before the reclassification of their positions; and upward

Those rendered before voluntary demotion or demotion as a result of disciplinary action.

3.9.1.3.4 3.9.1.3.5

Step increments shall be limited to the maximum step of the salary grades of positions. Authorized vacation leave without pay for an aggregate of 15 days or less, inclusive of Saturdays, Sundays and holidays, shall not interrupt the
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The Compensation Plan continuity of the 3 years service requirement for the grant of a step increment. When the total number of authorized vacation leave without pay incurred within the 3- year period exceeds 15 days, the date of the grant of step increments shall be moved or adjusted accordingly. 3.9.1.3.6 In case of downward reclassification of a position due to the exigency of the service or in case of involuntary demotion, in which case the actual salary of the incumbent falls in between steps, e.g., between step 4 and step 5 of the salary grade of the position, the salary of the incumbent which is off-step shall only be adjusted to the next higher step, or step 5 after completing 3 years of service in the previous higher position. Public Health Workers shall either be granted step increments or longevity pay, but not both benefits as the grant of both for the same purpose and period constitutes double recovery of the same benefit which is contrary to Section 36 of RA No. 7305 (Magna Carta of Public Health Workers).

3.9.1.3.7

3.9.1.4 Applicability of Personal Services Cap The step increment forms part of the implementation of RA No. 6758, hence, the personal services cap under the Local Government Code shall not be applicable to the grant thereof to appointive LGU employees, provided that the prescribed salary schedule for the LGUs’ income classes are being implemented. 3.9.1.5 Notice of Step Increment Heads of agencies shall notify the officials and employees entitled thereto through a Notice of Step Increment as shown in Annex “B” hereof, copy furnished the Government Service Insurance System (GSIS). 3.9.1.6 Funding Source 3.9.1.6.1 For NGAs including SUCs, the amounts shall be charged against agency savings from appropriations.

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Manual on Position Classification and Compensation

3.9.1.6.2

For GOCCs and GFIs, the amounts shall be charged against their respective corporate funds. For LGUs, the amounts shall be charged against their respective local government funds.

3.9.1.6.3

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The Compensation Plan

Annex “A” ILLUSTRATIVE EXAMPLES Illustrative Example 1 – Reclassification of Position Geologic Aide Science Aide SG-4 SG-4 6,522 6,522 July 1, 2004 (Date of appointment) January 1, 2005 (Effectivity date of reclassification of the position)

The computation of the length of service shall start from July 1, 2004. The salary adjustment to Step 2 in the position of Science Aide, SG-4, shall be on July 1, 2007. Illustrative Example 2 – Involuntary Demotion Information Officer II Information Officer I SG-15 SG-11 13,300 13,300 May 15, 2002 (Date of promotion) January 1, 2005 (Effectivity of reorganization)

The computation of the length of service shall start from May 15, 2002. The resultant salary due to involuntary demotion on January 1, 2005 shall be P13,300 which is already beyond Step 8 of SG-11. The employee is no longer entitled to step increment in the position of Information Officer I. Illustrative Example 3 – Upgrading of Position Legislative Staff Employee I SG-2 Legislative Staff Employee I SG-4 P4,796 6,211 February 1, 1999 (Date of appointment March 1, 2000 (Date of upgrading of the position)

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Manual on Position Classification and Compensation The computation of the length of service shall start from February 1, 1999. The salary adjustment to Step 2 in the position of Legislative Staff Employee I, SG-4, shall be on February 1, 2002; to Step 3 on February 1, 2005.

Illustrative Example 4 - Transfer Dental Aide Dental Aide SG-4 SG-4 P6,522 P6,522 March 1, 2003 (Date of appointment) October 1, 2004 (Date of transfer)

The computation of the length of service shall start from March 1, 2003. The salary adjustment to Step 2, shall be on March 1, 2006, and succeeding step increments shall be every 3 years thereafter, if the incumbent remains in the same position.

Illustrative Example 5 – Reappointment to a Position with Lower Salary Grade Engineer IV SG-22 P16,667 December 1, 1997 (Date of promotion) July 1, 2000 (The position was phased-out due to agency reorganization.) July 1, 2002 (Date of court’s decision) Engineer III SG-19 P18,334 (adjusted salary in the previous position of Engineer IV; falls between the step 6 and step 7 of SG-19) July 1, 2000 (Date of reappointment without diminution in salary)

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The Compensation Plan
The computation of the length of service shall start from December 1, 1997. The salary adjustment to Step 7 in the position of Engineer III, SG-19, shall be on December 1, 2000; to Step 8 on December 1, 2003.

Illustrative Example 6 – Exoneration of an Employee Placed under Preventive Suspension Nurse I SG-10 P9,466 November 15, 2000 (Date of appointment) December 15, 20003 (Placed under preventive suspension without pay) June 15, 2004 (Date of exoneration) The computation of the length of service shall start from November 15, 2000. The salary adjustment to Step 2 shall be on November 15, 2003, and succeeding step increments shall be every 3 years thereafter, if the incumbent remains in the same position. Illustrative Example 7 – Change of Status of Appointment Ticket Checker (Temporary status) Ticket Checker (Permanent status) SG-3 SG-3 P6,039 P6,039 April 1, 1996 (Date of appointment) August 15, 2004 (Date of change of status of appointment)

The salary of the incumbent is adjusted to Step 4 on April 1, 2005.

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Manual on Position Classification and Compensation

Annex “B” ----------------------------------------------Name of Agency NOTICE OF STEP INCREMENT ---------------------------Date Mr./Ms. ______________________ _____________________________ _____________________________ Sir/Madam: Pursuant to CSC and DBM Joint Circular No. 1, s. 1990, as amended, implementing Paragraph 8 of the Senate and House of Representatives Joint Resolution No. 1, s. 1994, as adopted under Executive Order No. 164 (Adopting a Revised Compensation and Position Classification System in the Government), dated March 8, 1994, your salary as ____________________, is hereby adjusted effective __________________, as follows: Basic Monthly Salary as of ________________________(Step _____) Add: Step Increment (_____ Step) Adjusted Salary Effective __________________________ P__________________ __________________ P__________________

This step increment is subject to post-audit by the Department of Budget and Management and to appropriate re-adjustment and refund if found not in order. Very truly yours,

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The Compensation Plan

__________________________ Head of Agency Copy furnished: GSIS

3.9.2 Personnel Economic Relief Allowance
The Personnel Economic Relief Allowance (PERA) is a P500 monthly allowance authorized under the pertinent general provision in the annual General Appropriations Act (GAA). It is granted to augment a government employee's pay due to the rising cost of living. 3.9.2.1 Coverage 3.9.2.1.1 3.9.2.1.2 3.9.2.1.3 Appointive government regular plantilla positions; personnel occupying

Casual or contractual employees; and Military personnel of the Armed Forces of the Philippines, and uniformed personnel of the Department of the Interior and Local Government, Philippine Coast Guard under the Department of Transportation and Communications, and the National Mapping and Resource Information Authority under the Department of Environment and Natural Resources.

3.9.2.2

Not Covered 3.9.2.2.1 3.9.2.2.2 3.9.2.2.3 3.9.2.2.4 Elective officials; Government personnel stationed others similarly situated; abroad and

Those declared by the authorities concerned as absent without leave during the month; and Consultants, experts, student laborers, apprentices, laborers of contracted projects (“pakyaw”), mail contractors, those paid on piecework bases; and others similarly situated.
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Manual on Position Classification and Compensation 3.9.2.3 Rules and Regulations 3.9.2.3.1 Government personnel who are paid salaries on monthly basis shall be granted PERA of P500 each per month.

3.9.2.3.2

The PERA of government personnel paid on daily or part-time basis shall be computed as follows, based on the actual services rendered during the month but not to exceed P500 per month:
Number of Days Worked During the Month

P500/Month PERA for the Month = --------------------xx Work Days/Month

3.9.2.3.3

Actual services rendered during the month for which PERA is to be paid shall include leaves of absences with pay. Government personnel who are on full-time or part-time detail with another government agency shall receive the PERA from their mother agencies, or from the same source where they draw their basic pay. No one shall receive PERA from more than one source. The rules and regulations relative to the PERA for LGU personnel are covered by Chapter 9 of this Manual.

3.9.2.3.4

3.9.2.3.5

3.9.2.4 Funding Source 3.9.2.4.1 For NGAs including SUCs, the PERA for personnel occupying regular positions shall be charged against the appropriations for the purpose in the annual GAA. The PERA for casual and contractual personnel shall be charged against their respective lump-sum appropriations. For GOCCs and GFIs, the amounts shall be charged against their respective corporate funds.

3.9.2.4.2

3-18 18

The Compensation Plan

3.9.3 Additional Compensation
The Additional Compensation (ADCOM) of P500 per month authorized under Administrative Order (AO) No. 53, dated May 17, 1993, is granted as a supplement to basic pay. AO No. 144 dated February 28, 2006, authorized the increase in the existing P500 per month ADCOM by P1,000 per month, resulting to a total of P1,500 per month. 3.9.3.1 Coverage 3.9.3.1.1 Civilian appointive personnel under permanent, temporary, contractual, casual or substitute status, on full-time or part-time basis, in national government agencies (NGAs), including state universities and colleges, government-owned and/or controlled corporations (GOCCs) and government financial institutions (GFIs) created by law, which are covered by or following Republic Act (RA) No. 6758 (Compensation and Position Classification Act of 1989), as amended; Military personnel of the Armed Forces of the Philippines and uniformed personnel of the Department of the Interior and Local Government, Philippine Coast Guard under the Department of Transportation and Communications and the National Mapping and Resource Information Authority under the Department of Environment and Natural Resources; and Officials and employees of local government units (LGUs)

3.9.3.1.2

3.9.3.1.3 3.9.3.2

Not Covered 3.9.3.2.1 Government officials and employees in NGAs and
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Manual on Position Classification and Compensation GOCCs/GFIs exempt from the coverage of RA No. 6758; and 3.9.3.2.2 Consultants, experts, student laborers, apprentices, laborers of contracted projects (“pakyaw”), mail contractors, those paid on piecework bases and others similarly situated

3.9.3.3

Rules and Regulations 3.9.3.3.1 Government personnel who are paid salaries on monthly basis shall be granted ADCOM of P1,500 each per month. The ADCOM of government personnel paid on hourly, daily or part-time basis shall be computed on the basis of actual services rendered on an eight-hour working day, 22 working day-month, regardless of the number of working days in a month but not to exceed P1,500 per month. The ADCOM of government personnel who were on absence without leave and/or who were on leave without pay during the month shall be computed on the basis of actual services rendered with pay during the month. Government personnel who are on full-time or part-time detail with other government agencies shall be paid the ADCOM by their mother agencies. Those on full-time or part-time detail with projects shall be paid ADCOM from project funds if they draw their basic salaries thereform. No one shall receive ADCOM from more than one (1) fund source. The ADCOM of government personnel with pending cases shall continue to be paid for as long as they render services and are paid their basic salaries. The ADCOM of government personnel under preventive suspension shall not be paid during the period of their suspension. If they are exonerated and if decided upon by the
3-20 20

3.9.3.3.2

3.9.3.3.3

3.9.3.3.4

3.9.3.3.5

3.9.3.3.6

The Compensation Plan authorities concerned, they shall be entitled to the full amount of the ADCOM starting from the day of suspension. If they were meted penalties and not paid their salaries, they shall not be entitled to the ADCOM until they have served their penalties. 3.9.3.3.6.1 In this regard, if the penalty meted out is only a reprimand, such penalty shall not be a basis for the disqualification to receive said benefit.

3.9.3.3.7

The rules and regulations relative to the payment of ADCOM to LGU personnel are provided in Chapter 9 of this Manual.

3.9.3.4

Funding Source 3.9.3.4.1 For NGAs including SUCs, the ADCOM for personnel occupying regular positions shall be charged against the appropriations for the purpose in the annual GAA. The ADCOM for casual and contractual personnel shall be charged against their respective lump-sum appropriations. For GOCCs and GFIs, the amount shall be charged against their respective corporate funds.

3.9.3.4.2

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Manual on Position Classification and Compensation

3.9.4 Uniform/Clothing Allowance
The Uniform/Clothing Allowance (UCA) authorized under the pertinent general provision of the annual GAA is granted to cover the cost of uniform/clothing of government employees to identify them with their mother agency/office. 3.9.4.1 Coverage All government personnel regardless of status of employment 3.9.4.2 Not Covered 3.9.4.2.1 Military personnel of the Armed Forces of the Philippines and uniformed personnel of the Department of the Interior and Local Government and the Philippine Coast Guard under the Department of Transportation and Communications; 3.9.4.2.2 Foreign service personnel of the Department of Foreign Affairs and of other departments and agencies who are stationed abroad; 3.9.4.2.3 Government personnel who are on leave without pay for more than 6 consecutive months in a particular year; 3.9.4.2.4 Government personnel whose U/CA rates are specifically provided for by law; and 3.9.4.2.5 Those who are hired as consultants, experts, student laborers, laborers of contracted projects (“pakyaw”), mail contractors, those paid on piecework bases, and others similarly situated 3.9.4.3 Rules and Regulations
3-22 22

3.9.4.3.1

The Compensation Plan The U/CA, which rate shall be as prescribed in the pertinent general provision of the annual GAA, may be given in cash or in kind subject to the discretion of the agency head.

3.9.4.3.2

Government personnel who are expected to render at least 6 consecutive months of service in a particular year including leaves of absence with pay shall be entitled to U/CA. Newly hired government personnel shall be entitled to U/CA after they have rendered 6 consecutive months of service, or in the next grant thereof, whichever comes later. Part-time government personnel shall not be entitled to U/CA except medical personnel who shall be entitled to U/CA equivalent to 1/2 of the amount authorized in the GAA. The U/CA for special police, security guards, prison guards, firefighters and other similar positions shall be inclusive of other articles of clothing like regulation caps, belts, and coats. The U/CA of government personnel who are on detail with other government agencies shall be borne by the mother agency. Government personnel who transferred to other agencies during the first 6 months of a particular year and were not granted U/CA by their former agencies, whether in cash or in kind, shall be granted U/CA by their new agencies. If they transferred to other agencies within the last 6 months of a particular year, they shall no longer be granted U/CA by their new agencies as by then they are deemed to have been granted U/CA by their former agencies. Government personnel who are required to wear uniforms at all times in the performance of their functions such as security guards, prison guards,
3-23 23

3.9.4.3.3

3.9.4.3.4

3.9.4.3.5

3.9.4.3.6

3.9.4.3.7

3.9.4.3.8

Manual on Position Classification and Compensation firefighters, teachers, those which are in direct contact with patients, and others occupying similar positions, shall be granted U/CA whether or not they meet the service requirement.

3.9.4.3.9

Government personnel who transferred to other agencies and who are required to wear uniforms at all times like the positions cited under item 3.9.4.3.8 hereof, may be granted U/CA by their new agencies even if they have received U/CA from their former agencies, subject to the discretion of the agency head concerned.

3.9.4.3.10 The guidelines on the wearing of the uniform, e.g. for those in mourning, on maternity leave, during wash days, etc. shall be at the discretion of the agency head. 3.9.4.4 Funding Source 3.9.4.4.1 For NGAs including SUCs, the amounts shall be charged against the appropriations for the purpose under the annual GAA. The U/CA of casual or contractual personnel shall be charged against the lump-sum appropriations where their salaries are drawn. For GOCCs and GFIs, the amounts shall be charged against their respective corporate funds. For LGUs, the amounts shall be charged against their respective local government funds.

3.9.4.4.2 3.9.4.4.3

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The Compensation Plan

3.9.5 Representation and Transportation Allowances
The pertinent general provisions of the General Appropriations Acts (GAAs) prior to FY 1993 and in the FY 1999 GAA provided that the officials listed therein and those of equivalent ranks as may be determined by the Department of Budget and Management (DBM) are to be granted monthly commutable RATA. Hence, prior to FY 1993 and in FY 1999, RATA were allowances attached to the position. The pertinent general provisions of the FYs 1993 to 1998 GAAs and in the FY 2000 GAA provided that the officials listed therein and those of equivalent ranks as may be determined by the DBM while in the actual performance of their respective functions are to be granted monthly commutable RATA. This provision was reiterated in the pertinent general provisions of subsequent GAAs. Hence, in FYs 1993 to 1998 and beginning FY 2000 and up to the present, the actual performance of an official’s duties and responsibilities was a pre-requisite to the grant of RATA. The rationale behind the qualifying phrase, “while in the actual performance of their respective functions,” is to provide the official concerned with additional funds to meet necessary expenses incidental to and connected with the exercise or the discharge of the functions of the office. Thus, if the official is out of office, whether voluntary or involuntary, the official does not and is not supposed to incur expenses. There being no expenses incurred, there is nothing to reimburse. Since RATA are privileges or benefits in the form of reimbursement of expenses, they are not salaries or part of basic salaries. Forfeiture or non-grant of the RATA does not constitute diminution in pay. RATA may be spent in variable amounts per work day depending on the situation. Entitlement thereto should not be proportionate to the number of work days in a month, inclusive of regular and special holidays falling on work days. 3.9.5.1 Coverage
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Manual on Position Classification and Compensation 3.9.5.1.1 Officials enumerated in the pertinent general provision of the annual GAA; 3.9.5.1.2 Those whose positions were determined by the DBM to be of equivalent ranks with the officials enumerated under item 3.9.5.2.1 hereof, including those in GOCCs, local water districts (LWDs) and GFIs; 3.9.5.1.3 Those duly designated by competent authorities to perform the full-time duties and responsibilities, whether or not in concurrent capacities, as Officers-In-Charge (OICs) of positions in items 3.9.5.1.1 and 3.9.5.1.2 hereof; and 3.9.5.1.4 Those hired on full-time contractual basis as part of agency organizations and whose positions were determined by the DBM as equivalent in ranks with the officials enumerated under item 3.9.5.2.1 hereof. 3.9.5.2 Rules and Regulations 3.9.5.2.1 RATA Rates Officials and those of equivalent ranks as may be determined by the DBM who actually perform the regular duties and responsibilities of their positions are authorized to collect monthly commutable RATA at rates prescribed under the pertinent general provision of the annual GAA. Pursuant to Section 45 of the General Provisions of RA No. 9336, the FY 2005 GAA, re-enacted in FY 2006, and as implemented by National Budget Circular No. 498 dated April 1, 2005, the following are the RATA rates: Monthly Rate for Each Type of Allowance P 7,500

Officials Department Secretaries and those of equivalent ranks

3-26 26

The Compensation Plan Department Undersecretaries and those of equivalent ranks Department Assistant Secretaries and those of equivalent ranks Bureau Directors, Department Regional Directors and those of equivalent ranks Assistant Bureau Directors, Department Assistant Regional Directors, Bureau Regional Directors, Department Service Chiefs and those of equivalent ranks Assistant Bureau Regional Directors and those of equivalent ranks Chiefs of Division identified as such in the Personal Services Itemization and Plantilla of Personnel and those of equivalent ranks 6,000 5,500 5,000

4,500

4,000 3,000

Revised RATA rates may be implemented in future years if authorized in the GAA, subject to the provisions of implementing circulars. 3.9.5.2.2 Officials and employees enumerated under item 3.9.5.1 hereof shall no longer be authorized to continue to collect RATA if they are in the following instances for one (1) full calendar month or more: 3.9.5.2.2.1 When on full-time detail with other government agencies or on reassignment within the same government agencies for one full calendar month or more, except when the duties and responsibilities they perform are comparable with those of their regular positions, in which case, they may be authorized to continue to collect RATA on a reimbursable basis, subject to the availability of funds; and

3-27 27

Manual on Position Classification and Compensation 3.9.5.2.2.2 When on vacation, sick or maternity leave of absence with or without pay for one full calendar month or more. 3.9.5.2.3 Officials and employees whose detail or reassignment has been found by appropriate judicial bodies to be not in accordance with existing laws, rules and regulations, shall be authorized to collect RATA on reimbursable bases for the duration of such detail or reassignment. Officials and employees who are on authorized attendance at a training course/scholarship grant/seminar or any other similar activity, which is tantamount to the performance of their regular duties and responsibilities, may be authorized to continue to collect RATA on a reimbursable basis, subject to the availability of funds. Officials and employees designated as Officers-InCharge of positions entitled to commutable RATA may be authorized to collect reimbursable RATA for the positions if provided in the office orders designating them as such, except in the following instances: 3.9.5.2.5.1 When designated in concurrent capacities and the officials and employees so designated are already entitled to commutable RATA in their permanent positions, in which case they may be authorized to collect the difference only, if any, between the RATA of the two positions; and 3.9.5.2.5.2 When on full-time or part-time detail with another government agency or on reassignment in an organizational unit of the same government agency; attending a training course/scholarship grant/seminar or any other similar activity; or on vacation, sick or maternity leave of absence, for one (1) full calendar month or more.

3.9.5.2.4

3.9.5.2.5

3-28 28

3.9.5.2.6

The Compensation Plan The Transportation Allowance (TA) shall not be granted to officials who are assigned or who use government service vehicles in the performance of their duties and responsibilities. Officials whose service vehicles could not be used for at least one (1) week since these are out of order or are undergoing repair shall be allowed to claim the proportionate monthly cash equivalent of their TAs until such service vehicles are ready for use. Full-time contractual employees whose positions were determined by the DBM to be of equivalent ranks to the officials enumerated under item 3.9.5.2.1 hereof are entitled to commutable RATA at rates indicated therein. The grant of RATA shall be indicated in the terms of the contracts of service.

3.9.5.2.7

3.9.5.2.8

3.9.5.3

Funding Source 3.9.5.3.1 NGAs Including SUCs 3.9.5.3.1.1 The commutable RATA for officials in NGAs and SUCs who occupy regular positions shall be charged against the appropriations for the purpose in the annual GAA. Deficiencies shall be charged against savings in agencies’ appropriations for personal services. The reimbursable RATA for duly designated Officers-In-Charge of funded vacant positions shall be charged against the RATA appropriated for the positions. If the positions are unfunded, the reimbursable RATA shall be charged against savings from appropriations for maintenance and other operating expenses. The RATA for contractual officials shall be charged against the
3-29 29

3.9.5.3.1.2

3.9.5.3.1.3

Manual on Position Classification and Compensation corresponding lump sum appropriations. 3.9.5.3.2 GOCCs, GFIs and LWDs The RATA shall be charged against their respective corporate funds. In all cases, no one shall be allowed to collect RATA from more than one source.

3.9.6 Year-End Bonus and Cash Gift
The Year-End Bonus and Cash Gift is intended as a year-end premium to government personnel for satisfactory and dedicated service. They are collectively referred to as the Year-end Benefit (YEB), authorized under Republic Act (RA) No. 6686, as amended by RA No. 8441. The liberalization of the grant thereof is authorized pursuant to the pertinent general provision in the annual GAA. 3.9.6.1 Coverage 3.9.6.1.1 All government personnel in NGAs including SUCs, GOCCs, GFIs and LGUs, whether appointive or elective, under permanent, temporary or casual status, and those issued contractual appointments who are under the following instances from January 1 to October 31 of each year: • Those who have rendered at least a total or an aggregate of 4 months of service including leaves of absence with pay; Those who are on approved leave of absence without pay but have rendered at least a total or an aggregate of 4 months of service provided they are not yet dropped from the rolls; and Those who have rendered less than 4 months of service

The aggregate service requirement for purposes of the grant of YEB shall include such services
3-30 30

The Compensation Plan before the termination of the employment during the year under the following modes: ♣ resignation; ♣ separation not for cause; ♣ termination of contract/appointment; or ♣ termination of term in office from the date they were rehired/reappointed during the year to the same or another position in the same or another agency. 3.9.6.1.2 All “punong barangay,” “sangguniang barangay” members, “barangay” secretaries and “barangay” treasurers

3.9.6.2 Not Covered All government personnel under the following instances shall not be entitled to the one-half (1/2) YEB or the full YEB: 3.9.6.2.1 3.9.6.2.2 Those on absence without leave (AWOL); Consultants, experts, student laborers, apprentices, laborers of contracted projects (“pakyaw”), mail contractors, those paid on piecework bases, and others similarly situated; and Those who are formally charged administrative cases as well as criminal cases which relate to acts or omissions in connection with their official duties and functions and found guilty and/or meted penalties, subject to conditions stipulated in item 3.9.6.3.6 hereof

3.9.6.2.3

3.9.6.3 Rules and Regulations 3.9.6.3.1 Payment of the YEB 3.9.6.3.1.1 Government personnel who have rendered at least a total of 4 months service including leaves of absence
3-31 31

Manual on Position Classification and Compensation with pay from January 1 to October 31 of a particular year, and who are in the service as of October 31 of the same year, shall be entitled to the full YEB based on the basic monthly salaries as of October 31. 3.9.6.3.1.2 One-half (½) of the YEBs may be paid to government personnel not earlier than May 1 and not later than May 31 of a particular year, based on the basic monthly salaries as of April 30, provided that they have rendered at least 4 months of service including leaves of absence with pay from January 1 to April 30 of the same year, regardless of whether or not they will still be in the service as of October 31 of the same year. The remaining half or the balance of the full YEBs (for those not granted ½ YEBs in May for lack of service requirement) shall be paid not earlier than November 15 and not later than November 30 of each year, provided that the conditions stipulated under item 3.9.6.3.1.1 are satisfied. Those who have rendered more than 4 months of service in a given year and are to retire or are to be separated before October 31 of the year may receive the proportionate shares of the remaining balances of their cash gifts in addition to their ½ YEBs, based on the following scheme, to be paid within the month of retirement/separation of the employees concerned:

3.9.6.3.1.3

3.9.6.3.1.4

Month of Retirement/ Percentage Corresponding Separation of P5.000 Amount from the Service May 0% P
3-32 32

0

The Compensation Plan June July August September October 3.9.6.3.1.5 20% 40% 60% 80% 100% 500 1,000 1,500 2,000 2,500

Government personnel who have rendered less than 4 months of service as of October 31 of the same year shall be entitled solely to the cash gift pro-rated as follows: Percentage Corresponding of P5,000 Amount 40% P2,000 30% 20% 10% 1,500 1,000 500

Length of Service 3 months but less than 4 months 2 months but less than 3 months 1 month but less than 2 months Less than 1 month 3.9.6.3.2

Personnel on Part-Time Service Provided that the conditions stipulated in item 3.9.6.3.1.1 are satisfied, the YEBs for employees on part-time service are as follows; 3.9.6.3.2.1 Those who are employed on part-time bases are entitled to the YEBs corresponding to their basic monthly salaries and to the proportionate amounts of their cash gifts. Those who render part-time services in 2 or more different agencies shall be entitled to the YEBs corresponding to each of their total basic monthly salaries provided that each of their total cash gifts shall not exceed P5,000.

3.9.6.3.2.2

3.9.6.3.3

Personnel on Full-Time or Part-Time Detail

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Manual on Position Classification and Compensation The YEBs of government personnel on full-time or part-time detail with other agencies shall be paid by their respective mother agencies. 3.9.6.3.4 Transferred Personnel The YEBs of government personnel who transferred from one agency to another shall be granted by the new offices. If they were granted their ½ YEBs in their former offices, only the remaining balances of the YEBs shall be paid by their new offices. Certifications from the former offices of the availment of the ½ YEBs are necessary. 3.9.6.3.5 Personnel on AWOL 3.9.6.3.5.1 Government personnel on AWOL within the period, January 1 to April 30 of a particular year, shall not receive the advanced payment of their ½ YEBs in May of the same year. Those on AWOL within the period, January 1 but before October 31 of the same year but have rendered a total or an aggregate of 4 months service, including leaves of absence with pay as of October 31, may be granted the full YEBs within the period, November 15 to November 30 of the same year. Those on AWOL as of October 31 of a particular year are not entitled to YEBs notwithstanding that they have rendered a total or an aggregate of at least 4 months of service, including leaves of absence with pay before October 31 of the same year.

3.9.6.3.5.2

3.9.6.3.5.3

3.9.6.3.6

Personnel Charged with Administrative Cases 3.9.6.3.6.1 Government personnel formally charged administrative and/or criminal cases and whose cases are still pending for resolution shall be entitled
3-34 34

The Compensation Plan to the YEBs until found guilty and meted penalties. 3.9.6.3.6.2 Those found guilty shall not be entitled to the YEBs in the year the decisions were handed down. If the penalties meted out are only reprimands, such penalties should not be made the bases of disqualification to receive the YEBs.

3.9.6.3.6.3

Those found guilty and later on exonerated by competent authorities upon appeal of the cases shall be entitled to the back YEBs unless decided otherwise by said authorities.

3.9.6.3.7

“Barangay” Officials 3.9.6.3.7.1 “Barangay” officials under item 3.9.6.1.2 hereof shall be entitled only to cash gifts of P5,000 each, provided the conditions stipulated in item 3.9.6.3.1.1 are satisfied. One-half (½) of their cash gifts may be paid to each of them not earlier than May 1 and not later than May 31 of a particular year, provided that the conditions stipulated in item 3.9.6.3.1.2 are satisfied. The remaining half of the cash gifts shall be paid to each of them not earlier than November 15 and not later than November 30 of each year, provided that they are still in the service as of October 31. Those who have rendered more than 4 months of service in a given year and are to be separated before October 31 of the year may each
3-35 35

3.9.6.3.7.2

3.9.6.3.7.3

3.9.6.3.7.4

Manual on Position Classification and Compensation receive the remaining balance of the cash gift in addition to ½ of the cash gift, based on the scheme in item 3.9.6.3.1.4, to be paid within the month of separation of the barangay officials concerned. 3.9.6.3.8 Prohibition Against Payment of Additional Bonuses Agencies are prohibited from granting additional bonuses in any form other than the YEB.

3.9.6.4

Funding Source 3.9.6.4.1 For NGAs including SUCs, the amounts shall be charged against the appropriations for the purpose in the annual GAA. Deficiencies in appropriations shall be charged against available savings of agencies. The YEBs for casual and contractual personnel shall be charged against their respective lump-sum appropriations. For GOCCs and GFIs, the amounts shall be charged against their respective corporate operating budgets. For LGUs, the amounts shall be charged against their respective local government funds.

3.9.6.4.2

3.9.6.4.3

3-36 36

The Compensation Plan

3.9.7 Productivity Incentive Benefit
The Productivity Incentive Benefit (PIB) is a cash award authorized under Administrative Order (AO) No. 161, dated December 6, 1994, to recognize individual personnel productivity and performance which contributed to attainment of agency goals and targets. Performance includes conduct and behavior in the discharge of the duties of a public office. 3.9.7.1 Coverage 3.9.7.1.1 Appointive personnel of NGAs including SUCs, GOCCs, GFIs and LGUs on permanent or temporary status; and Those issued casual and contractual appointments, even if their services have been terminated effective December 31 of the year for which the PIBs are granted

3.9.7.1.2

3.9.7.2

Not Covered 3.9.7.2.1 Those who were suspended either preventively or as a penalty as a result of an administrative charge within the year for which PIBs are granted, regardless of the duration of the suspension; Those who were dismissed within the year for which PIBs are granted; Those who have been absent without official leave within the year for which PIBs are granted;
3-37 37

3.9.7.2.2 3.9.7.2.3

Manual on Position Classification and Compensation 3.9.7.2.4 Those hired not as part of the organic manpower of agencies but as consultants, experts, student laborers, apprentices, laborers of contracted projects (“pakyaw”), those paid on piecework bases, and others similarly situated; Elective national government officials and local government officials down to the municipal level in the absence of an objective system of evaluating their individual productivity and performance, unless AO No. 161 is amended; and Elective and appointive barangay personnel paid honoraria

3.9.7.2.5

3.9.7.2.6

3.9.7.3 Rules and Regulations 3.9.7.3.1 Basis of Grant of PIB 3.9.7.3.1.1 The grant of the PIB shall be based on individual personnel productivity and performance as evaluated and determined by the agency authorities concerned in accordance with the policies and standards set by the Civil Service Commission. To be entitled to PIBs, government personnel shall have at least satisfactory performance ratings for the 2 semesters during the year for which PIBs are granted and shall have contributed to the productivity of the office. The minimum appraisal period shall be at least 90 days or 3 months. No appraisal period shall be longer than 1 year. Should there be only one performance rating, it shall be understood to apply for the 2 semesters or 1 year covered by the rated performance.
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3.9.7.3.1.2

3.9.7.3.1.3

The Compensation Plan 3.9.7.3.2 Amount of PIBs 3.9.7.3.2.1 The amount of PIBs to be granted to deserving personnel in agencies may vary per individual, depending on the latter’s productivity and performance appraisal. Agency heads shall establish the internal guidelines for the grant thereof.

3.9.7.3.2.2

The total cost of the PIBs granted shall in no case exceed the average of P2,000 per filled position. This should not be construed to mean as prescribing an across-the-board grant of incentive.

3.9.7.3.3

PIBs for Transferred Personnel 3.9.7.3.3.1 The PIBs for personnel who transferred to other government agencies on or before the end of the calendar year for which the PIBs are granted shall be paid by the new agencies. The PIBs of those who transferred after December 31 of the year for which the PIBs are granted shall be paid by the former agencies.

3.9.7.3.3.2

3.9.7.3.4 PIBs for Part-Time Personnel The PIBs for personnel employed on part-time bases, whether employed on permanent, temporary or contractual status, shall be equivalent to ½ of the full amount received by full-time personnel with the same productivity and performance appraisals. 3.9.7.3.5 PIBs for Other Personnel

3-39 39

Manual on Position Classification and Compensation Cases concerning the PIBs of personnel who were newly-hired, retired, on leave of absence with or without pay, or on authorized attendance at a training course/scholarship grant or any other similar activity shall be referred to the Civil Service Commission for resolution. Other cases not covered by this Manual shall be referred to the DBM for proper study and recommendation to the Office of the President.

3.9.7.3.6 Subject to the conditions stipulated in item 3.9.7.3.1.2 hereof, • Personnel who were preventively suspended but later exonerated of the charges filed against them shall be entitled to PIBs. • 3.9.7.4 If the penalties are only reprimands, the personnel may be entitled to PIBs.

Funding Source For NGAs including SUCs, the PIBs for personnel occupying regular positions shall be charged against the appropriations for the purpose in the annual GAA. The PIBs for casual and contractual personnel shall be charged against their respective lump-sum appropriations. For GOCCs and GFIs, the amounts shall be charged against their respective corporate funds. For LGUs, the amounts shall be charged against their respective local government funds.

3.9.7.4.1

3.9.7.4.2 3.9.7.4.3

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The Compensation Plan

3.9.8 Overtime Pay
Government employees are required to render 40 hours of work in a week, subject to the work schedule adopted by the agencies concerned. Through adequate planning of work activities, overtime work could be avoided. Hence, overtime work should not be resorted to in the performance of regular work, except in cases when unforeseen events and emergency situations will result in any of the following: • • • Cause financial loss to the government or its instrumentalities; Embarrass the government due to its inability to meet is commitments; or Negate the purposes for which the work or activity was conceived.

Should the need to render overtime services become very necessary, overtime pay may be paid pursuant to Section 63, Chapter 7, Book VI of Executive Order No. 292 (Administrative Code of 1987), dated July 25, 1987, as implemented by Budget Circular No. 10, dated March 29, 1996. 3.9.8.1 Coverage 3.9.8.1.1 Incumbents of positions of chiefs of division and below under permanent, temporary or casual status, and contractual personnel whose employments are in the nature of regular employees; and Incumbents of positions of chiefs of division and below who are designated to positions higher than chiefs of division

3.9.8.1.2

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3.9.8.2

Manual on Position Classification and Compensation Not Covered 3.9.8.2.1 Those occupying the following positions: • Department Secretaries; • Department Undersecretaries; • Department Assistant Secretaries; • Bureau Directors and Regional Directors • Assistant Bureau Directors Regional Directors; and • Department Service Chiefs Department Service Chiefs 3.9.8.2.2 and and Assistant Assistant

Incumbents of positions of equivalent category as those above-mentioned in SUCs, GOCCs, GFIs and LGUs; Incumbents of intermediate positions to the above enumerated positions in the NGAs, SUCs, GOCCs, GFIs and LGUs; Elective officials; and Other appointive officials whose equivalent ranks are higher than chiefs of division

3.9.8.2.3

3.9.8.2.4 3.9.8.2.5 3.9.8.3

Rules and Regulations 3.9.8.3.1 Overtime services shall include: • • • 3.9.8.3.2 Those rendered beyond eight (8) work hours of regular work days; Those rendered on rest days, Saturdays and Sundays; and such as

Those rendered on holidays or non-working days.

Personnel who rendered overtime services shall be granted overtime pay by the hour which shall be
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The Compensation Plan based on his/her actual hourly rate derived as follows:
Actual Hourly Rate (HR) = Actual Salary/Month ----------------------------(22 Days/Month) (8 Hours/Day)

3.9.8.3.3

Overtime pay shall be computed as follows: • For ordinary work days: hourly rate (0.25 x HR) Plus 25% of the

Overtime Pay = 1.25 x HR x Number of Hours of Overtime Services Rendered

For rest days, holidays and non-work days: Plus 50% of the hourly rate (0.50 x HR)
Overtime Pay = 1.50 x HR x Number of Hours of Overtime Services Rendered

3.9.8.3.4 The total overtime pay of an employee for the year shall not exceed 50% of his/her annual basic salary. 3.9.8.4 Funding Source 3.9.8.4.1 For NGAs including SUCs, the overtime pay shall be charged against: 3.9.8.4.1.1 The amounts specifically appropriated for the purpose in agency budgets; and/or 3.9.8.4.1.2 Savings from released allotments for current operating expenditures, provided that: All mandatory expenses as authorized by law have been paid; and
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Manual on Position Classification and Compensation Total overtime payments made in a given calendar year shall not exceed 5% of the total salaries of authorized positions of the agency. Such savings may be used without need for prior authority from the DBM, provided that the aforestated conditions are fully satisfied.

3.9.8.4.2 3.9.8.4.3

For GOCCs, and GFIs, the amounts shall be charged against their respective corporate funds. For LGUs, the amounts shall be charged against their respective local government funds.

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The Compensation Plan

3.9.9 Compensatory Time-Off
Section 1 (d) of Administrative Order No. 103 (Directing the Continued Adoption of Austerity Measures in the Government) dated August 31, 2004, provides for the adoption of a scheme that will allow employees to be compensated through time/days off in lieu of overtime pay. Thus, Civil Service Commission and DBM Joint Circular No. 2, s. 2004, was issued to implement said provision. Said Joint Circular refers to the Compensatory time-Off (CTO) as the number of hours or days an employee is excused from reporting for work with full pay and benefits. It is a nonmonetary benefit provided to an employee in lieu of overtime pay. 3.9.9.1 Coverage 3.9.9.1.1 Incumbents of positions of chiefs of division and below under permanent, temporary or casual status, and contractual personnel whose employments are in the nature of regular employees Incumbents of positions of chiefs of division and below who are designated to positions higher than chiefs of division

3.9.9.1.2

3.9.9.2

Not Covered

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Manual on Position Classification and Compensation 3.9.9.2.1 Those occupying positions whose equivalent ranks are higher than chiefs of division; 3.9.9.2.2 3.9.9.2.3 Elective officials; and Military and uniformed personnel

3.9.9.3

Guidelines 3.9.9.3.1 Overtime services which may be compensated through CTO as may be authorized by heads of agencies for the following activities: • completion of infrastructure and other projects with set deadlines when due to unforeseen events the deadlines cannot be met without resorting to overtime work; relief, rehabilitation, reconstruction and other related work or services during calamities and disasters; work related to school graduation/registration where the additional work cannot be handled by existing personnel during regular work hours; work involving the preparation for and administration of government examinations, including the prompt correction and release of results thereof where existing personnel are not adequate to handle such work during regular work hours; seasonal work such as budget
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The Compensation Plan preparation and rendition of annual reports to meet scheduled deadlines; • preparation of special/financial/ accountability reports required occasionally by central monitoring agencies like the Congress of the Philippines, Office of the President, Commission on Audit, DBM, and National Economic and Development Authority;

the provision of essential public services during emergency situations, such as power and energy, water, distribution and control of basic staples, communication and transportation, medical and health services, peace and order, and security; implementation of special programs/projects embodied in Presidential directives and authorizations with specific dates of completion; legal services to facilitate the dissolution of cases/resolutions/ decisions; services rendered by drivers and other immediate staff of officials when required to keep the same working hours as their superiors; and such other activities as may be determined by the head of agency.

3.9.9.3.2 Computation of Compensatory Overtime Credit

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Manual on Position Classification and Compensation As a result of services rendered beyond regular work hours, and/or those rendered on Saturdays, Sundays, holidays or scheduled days off without the benefit of overtime pay, an employee earns accrued number of hours worked. These are collectively referred to as compensatory overtime credit (COC). The COC is expressed in number of hours and computed as follows:

3.9.9.3.2.1

For overtime services rendered on weekdays or scheduled work days:

COC = Number of Hours of Overtime Services x 1.0

The 1.0 multiplier is used since overtime services during weekdays or scheduled work days are considered as mere extension of regular work hours. The employees rendering overtime services are not expected to incur additional expenses. 3.9.9.3.2.2 For overtime services rendered on weekends, holidays or scheduled days off:

COC = Number of Hours of Overtime Services x 1.5

The 1.5 multiplier is used since the employees who render overtime services on weekends, holidays or scheduled days off incur incidental expenses for transportation and meals.

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The Compensation Plan 3.9.9.3.3 Accrual and Use of COCs 3.9.9.3.3.1 Employees may accrue not more than 40 hours of COC in a month. In no instance, however, shall the total COC exceed 120 hours at any given time. COC in excess of the limit shall be forfeited. These measures are intended to ensure judicious use of regular work hours and to efficiently balance agency manpower with respect to the availment of the CTO. 3.9.9.3.3.2 The COC should be used as time-off within the year they are earned until the immediately succeeding year. Thereafter, any unutilized COCs are deemed forfeited. The COCs shall be considered as official time for the following purposes: 3.9.9.3.3.3.1 compliance with compensation rules relative to the entitlement to PERA, Additional Compensation, year-end benefits, and other benefits received on regular bases; and 3.9.9.3.3.3.2 computation of service hours for entitlement to sick and
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3.9.9.3.3.3

Manual on Position Classification and Compensation vacation leave credits, and step increment due to length of service. 3.9.9.3.3.4 Limitation on the Use of COCs 3.9.9.3.3.4.1 The COCs cannot be used to offset undertime/s or tardiness incurred by the employee during regular work days. 3.9.9.3.3.4.2 The COCs cannot be converted to cash, hence, are noncommutative. The COCs cannot be added to the regular leave credits of the employee. Hence, it is not part of the accumulated leave credits of the employee.

3.9.9.3.3.4.3

3.9.9.3.3.5 Effect on Personnel Movement 3.9.9.3.3.5.1 In cases of resignation, retirement, or separation from the service, the unutilized COCs are deemed forfeited. 3.9.9.3.3.5.2 In cases of detail, secondment or transfer to another agency, the COCs earned in one agency cannot be transferred to another agency, nor could the employees receive the
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The Compensation Plan monetary equivalents thereof. 3.9.9.3.3.5.3 In cases of promotion, except when promoted to positions not qualified to receive overtime pay, the employees shall retain their accrued COCs.

3.9.9.3.3.6 Issuance of Certificate of COC Earned An employee who has earned COC shall be granted a Certificate of COC Earned (Annex C) duly approved and signed by the agency head. The certificate shall indicate the employee’s number of hours of earned COC in a month. The certificate should be issued at the end of each month. 3.9.9.3.3.7 Availment of CTO 3.9.9.3.3.7.1 To ease tracking of COCs and simplify CTO availment process, the CTO may be availed of in blocks of 4 or 8 hours. Agencies adopting alternative work schedules should make parallel adjustments in the availment blocks, tantamount to either a half or full day leave from work. 3.9.9.3.3.7.2 The employee may use the CTO continuously up to a maximum of 5 consecutive days per single availment, or on
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Manual on Position Classification and Compensation staggered basis within the year. 3.9.9.3.3.7.3 The employee must first obtain approval from the agency head or authorized official regarding the schedule of availment of CTO. The management shall accommodate, to the extent practicable, all applications for availment of CTO at the time requested by the employee. In the exigency of the service, however, the schedule may be recalled and subsequently rescheduled within the year by the agency head or authorized official. 3.9.9.3.3.8 Procedure The following procedure shall be observed in the rendition of overtime services and availment of CTO: 3.9.9.3.3.8.1 The agency head or authorized official issues an office order authorizing the rendition of overtime services and indicating the tasks to be completed and the expected time of completion. The employee renders overtime services as stipulated in the office order.
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3.9.9.3.3.8.2

The Compensation Plan 3.9.9.3.3.8.3 The Administrative Officer concerned prepares a summary of overtime services rendered in a month, and computes the equivalent COC, for the purpose of the issuance of the COC Certificate.

3.9.9.3.3.8.4

The agency head or authorized official issues the Certificate of COC, specifying the number of hours of COC earned in a month. The employee requests approval from the agency head or authorized official on the schedule of CTO. The employee avails of the CTO.

3.9.9.3.3.8.5

3.9.9.3.3.8.6

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Manual on Position Classification and Compensation

Annex C

Certificate of COC Earned

This certificate entitles Mr./Ms. _______________________________ to _____________________ of Compensatory Overtime Credits. (number of hrs.) Head of Office Date Issued: __________________ Valid Until: __________________ Front

No. of Hours of Earned COCs/Beginning Balance

Date of CTO Used COC

Remaining COC

Remarks

Approved by:

Claimed:

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The Compensation Plan

3.9.10

Per Diem
Per diem is a compensation granted to a chairperson, vicechairperson or member of a collegial body created by law for attendance in collegial meetings with quorum. The guidelines on per diems are provided under Budget Circular (BC) No. 2003-6, dated September 29, 2003, as amended by BC No. 2005 ______, dated _____________. 3.9.10.1 Coverage 3.9.10.1.1 Chairpersons, vice-chairpersons and members of collegial bodies in NGAs, GOCCs and GFIs; and Chairpersons and members of the Board of Regents/Trustees of SUCs

3.9.10.1.2 3.9.10.2 Not Covered

3.9.10.2.1 Department Secretaries, Department Undersecretaries and Department Assistant Secretaries occupying exofficio positions in governing boards, commissions, committees, councils and similar bodies, in view of the Supreme Court ruling in the case, Civil Liberties Union vs. Executive Secretary (G.R. No. 83896), dated February 22, 1991;

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Manual on Position Classification and Compensation 3.9.10.2.2 Appointed chairpersons, vicechairpersons and members of collegial bodies who receive salaries and other compensation; 3.9.10.2.3 Chief operating officers and other officials of government entities who are ex-officio members of their entities’ collegial bodies; 3.9.10.2.4 Chairpersons, vice-chairpersons and members of collegial bodies who are paid honoraria pursuant to existing laws and implementing rules and regulations; and 3.9.10.2.5 Members of local regulatory boards, quasi-judicial bodies and similar bodies whose per diem and the rules and regulations on the grant thereof are included in Chapter 9 of this Manual. 3.9.10.3 Rules and Regulations 3.9.10.3.1 Per diems of the chairpersons, vicechairpersons and members of collegial bodies 3.9.10.3.1.1 The chairpersons, vicechairpersons and members of collegial bodies shall be entitled to per diems at rates not exceeding the following: Amount equivalent to 25% of the monthly representation and transportation allowances (RATA) of the chief operating officer of the collegial body for every meeting actually attended but not to exceed 4 paid meetings in a month
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Chairpersons

Vice-Chairpersons/ Members

The Compensation Plan Amount equivalent to 25% of the monthly RATA of the second ranking official of the collegial body for every meeting actually attended but not to exceed 4 paid meetings in a month

3.9.10.3.2 Per diems of the chairpersons and members of Board of Regents/Trustees of SUCs 3.9.10.3.2.1 Consistent with the Revised Implementing Rules and Regulations of RA No. 8292 (Higher Education Modernization Act of 1997), the chairpersons and members of the Board of Regents/ Trustees of SUCs shall be entitled to per diems at rates not exceeding the following: Chairpersons Amount equivalent to 25% of the monthly RATA of the President of the respective SUC for every meeting actually attended but not to exceed 4 paid regular meetings and 2 paid special meetings in a year Amount equivalent to 25% of the monthly RATA of the VicePresident of the respective SUC for every meeting actually attended but not to
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Members

Manual on Position Classification and Compensation exceed 4 paid regular meetings and 2 paid special meetings in a year 3.9.10.3.2.2 Attendance in excess of the prescribed number of regular and special meetings shall no longer be compensated.

3.9.10.3.2.3 No other allowances on top of the per diem authorized under item 3.9.10.3.2.1 hereof shall be paid regardless of the funding source. Illustrative examples on the computation of the per diem are shown in Annex “D.” 3.9.10.3.3 Duly authorized representatives of ex-officio and other members of collegial bodies and Boards of Regents/Trustees of SUCs who actually attended board meetings shall be entitled to per diems not exceeding the rates provided under item 3.9.10.3.1 and 3.9.10.3.2 hereof, respectively. In no case, however, shall a chairperson/vicechairperson/member and his/her representative be each entitled to per diem for the same meeting notwithstanding that they both attended said meeting.

3.9.10.3.4 Higher per diem rates and/or other benefits, whether commutable or reimbursable, in cash or in kind, shall not be allowed unless specifically authorized by law or by the President. 3.9.10.3.5 Board Secretaries who are already paid salaries for, among other functions,
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The Compensation Plan attendance in the meetings of the board shall not be entitled to per diem. 3.9.10.4 Funding Source 3.9.10.4.1 For NGAs, the per diem shall be charged against the appropriations for the purpose in the annual GAA. Deficiencies in appropriations shall be charged against agency savings. For SUCs, the per diem shall be charged against the appropriations for the purpose in the annual GAA or against their incomes. For GOCCs and GFIs, the per diem shall be charged against their respective corporate funds.

3.9.10.4.2

3.9.10.4.3

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Manual on Position Classification and Compensation

ANNEX D
ILLUSTRATIVE EXAMPLE A Name of official: Mr. Amir Yanes Position: Chair of the Governing Boards of three (3) SUCs Name and level of SUCs: SUC-A – Level II; SUC-B – Level III; SUC-C – Level IV Number of meetings in 2004: SUC-A = 6 regular and 2 special meetings; SUC-B = 4 regular and 2 special meetings; SUC-C = 8 regular and 2 special meetings CEILING PER BUDGET CIRCULAR NO. _____ Level RATA of SUC President Maximum Amount Per Meeting Maximum Number of Paid Meetings Per year (Regular and Special) Maximum Per Diems Per Year

(25% x a)
(a) SUC - A SUC - B SUC - C Note: II III IV P10,000 11,000 12,000 (b) P2,500.00 2,750.00 3,000.00 (c) 6 6 6 (b x c) =(d) 15,000 16,500 18,000

Mr. Yanes shall be paid per diems for only four (4) regular meetings and two (2) special meetings in a year.

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The Compensation Plan

ILLUSTRATIVE EXAMPLE B Name of official: Mr. Arturo Ama Position: Member of the Governing Boards of three (3) SUCs Name and level of SUCs: SUC-C – Level II; SUC-D – Level III; SUC-E – Level IV Number of meetings in 2004: SUC-C = 6 regular and 2 special meetings; SUC-D = 4 regular and 2 special meetings; SUC-E = 8 regular and 2 special meetings CEILING PER BUDGET CIRCULAR NO. _____ Level RATA of SUC Vice President Maximum Amount Per Meeting Maximum Number of Paid Meetings Per Year (Regular and Special) Maximum Per Diems Per Year

(25% x a)
(a) SUC – D SUC – E SUC – F II III IV P9,000 9,000 10,000 (b) P2,250.00 2,250.00 2,500.00
(c)

(b x c) = d 13,500 13,500 15,000

6 6 6

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Manual on Position Classification and Compensation
Note: Mr. Ama shall be paid per diems for only four (4) regular meetings and two (2) special meetings in a year.

3.9.11

Honoraria
Honoraria are token payments in recognition of incidental services rendered. Since FY 2003, the grant of honoraria is limited only to the government personnel enumerated under Section 42, General Provisions, RA No. 9206, the FY 2003 GAA. 3.9.11.1 Coverage The grant of honoraria shall apply to the following personnel in all NGAs, GOCCs, GFIs, and LGUs: 3.9.11.1.1 Teaching personnel of the Department of Education, Commission on Higher Education, Technical Education and
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The Compensation Plan Skills Development Authority, SUCs and other educational institutions engaged in actual classroom teaching whose teaching loads are outside of their regular office hours and/or in excess of their regular loads; 3.9.11.1.2 Those who act as lecturers, resource persons, coordinators and facilitators in seminars, training programs and other similar activities in training institutions, including those conducted by entitles for their officials and employees; and Chairpersons and members of commissions, boards, councils and other similar entities which are hereinafter referred to as collegial bodies including the personnel thereof, who are neither paid salaries nor per diems but compensated in the form of honoraria as provided by law, rules and regulations. Those who are involved in science and technological activities who receive services beyond their regular work load.

3.9.11.1.3

3.9.11.1.4

3.9.11.2

Not Covered 3.9.11.2.1 Chairpersons and Members of the various Professional Regulatory Boards of the Professional Regulation Commission (PRC) who are compensated in the form of honoraria pursuant to DBM and PRC Joint Circular No. 2002-1, dated March 11, 2002; 3.9.11.2.2 Agency personnel who are designated as members of agency committees, boards, councils, or assigned to agency or inter-agency special projects; and

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Manual on Position Classification and Compensation 3.9.11.2.3 Personnel granted honoraria by LGUs pursuant to the pertinent provisions of RA No. 7160 (Local Government Code of 1991). 3.9.11.3 Definition of Terms 3.9.11.3.1 Coordinator – any government personnel who directs, supervises and/or participates in the organization, coordination and conduct of seminars, training programs and other similar activities 3.9.11.3.2 Facilitator – any government personnel who extends technical assistance to facilitate the conduct of seminars, training programs and similar activities by providing instructional materials such as charts, handouts, projectors, multimedia equipment and other devices, and to empower the participants to solve issues by bringing out quality of thinking and structuring the dynamic flow of discussions. 3.9.11.3.3 Lecturer/Resource Person – any person who serves as lecturer/speaker in seminars, training programs and other similar activities

3.9.11.3.4 Training Institutions – refer to those agencies mandated by existing laws to conduct training programs 3.9.11.4 Rules and Regulations 3.9.11.4.1 Teaching personnel mentioned under item 3.9.11.1.1 hereof may be paid honoraria in accordance with the formula in Chapters 6 and 7 of this Manual. 3.9.11.4.2 For lecturers and resource persons:

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The Compensation Plan Regardless of the regular positions of the lecturer/resource person, he/she may be paid the hourly rate of a Professor VI position at SG-29 for actual lecture hours, including reasonable time for preparation of materials not exceeding 10 hours in all. 3.9.11.4.3 Government personnel who serve as coordinators, facilitators, lecturers or resource persons in seminars, training programs and similar activities conducted by their own agencies shall not be entitled to honoraria. Such services are in connection with their agencies’ objectives or obligations to disseminate instructions, to clarify issues and concerns and to interact with clients and/or implementors of agency mandates. These activities are considered part of the regular functions of agencies, hence, also form part of the related work of those assigned to perform said activities. 3.9.11.4.4 Agency personnel who are members of agency committees, boards, councils, or special projects are not entitled to honoraria as their duties and responsibilities therein may be considered pertinent to or within the scope of their regular duties and responsibilities in their agencies for which they are paid salaries. 3.9.11.4.5 The chairpersons, members and personnel listed under item 3.9.11.1.3 hereof may be paid honoraria at the following rates: Chairpersons: 25% of the monthly representation and transportation allowances (RATA) of the chief operating officer of the collegial body for every meeting actually attended but not to exceed 4 paid meetings a month

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Manual on Position Classification and Compensation Members: 25% of the monthly RATA of the second ranking official of the collegial body for every meeting actually attended but not to exceed 4 paid meetings a month The hourly rate of equivalent positions in the national government as determined by the DBM but not to exceed 8 hours a day or 40 hours a week. They shall not be allowed other benefits, whether in cash or in kind, except when specifically provided by law. In case their present honoraria are higher than the honoraria authorized herein, they shall continue to receive the same until the termination of their appointments. 3.9.11.4.6 Department Secretaries, Department Undersecretaries and Department Assistant Secretaries who are exofficio members of collegial bodies shall not be paid the honoraria authorized therein pursuant to the Supreme Court ruling in G.R. No. 83896 dated February 22, 1991. 3.9.11.4.7 GOCCs and GFIs exempted from the coverage of RA No. 6758 and LGUs are encouraged to adopt the foregoing provisions on honoraria as far as practicable. 3.9.11.4.8 Honoraria shall not be paid to personnel outside of those covered herein except when specifically provided by law. 3.9.11.5 Funding Source 3.9.11.5.1 For for the the NGAs including SUCs, the amounts honoraria shall be charged against appropriations for the purpose in annual GAA.

Personnel:

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3.9.11.5.2

The Compensation Plan For GOCCs and GFIs, the amounts shall be charged against their respective corporate funds. For LGUs, the amounts shall be charged against their respective local government funds.

3.9.11.5.3

3.9.12 Honoraria for Government Personnel Involved in Government Procurement
Honoraria are granted to government personnel involved in government procurement pursuant to Section 15, RA No. 9184 (Government Procurement Reform Act), and the Implementing Rules and Regulations (IRR), Part A, for fully domestically-funded procurement projects, which took effect on October 8, 2003. Budget Circular (BC) No. 2004-5 dated March 23, 2004, superseded by BC No. 2004-5A dated October 7, 2005, provide the guidelines on the grant of honoraria to said government personnel.

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Manual on Position Classification and Compensation 3.9.12.1 Coverage Government personnel in NGAs including SUCs, GOCCs, GFIs and LGUs involved in procurement. 3.9.12.2 Guidelines 3.9.12.2.1 The chairs and members of the Bids and Awards Committee (BAC) and the Technical Working Group (TWG) may be paid honoraria only for successfully completed procurement projects. In accordance with Section 7 of the Implementing Rules and Regulations Part A (IRR-A) of RA No. 9184, a procurement project refers to the entire project identified, described, detailed, scheduled and budgeted for in the Project Procurement Management Plan prepared by the agency. A procurement project shall be considered successfully completed once the contract has been awarded to the winning bidder. 3.9.12.2.2 The payment of honoraria shall be limited to procurement that involves competitive bidding. Competitive bidding activities are present only in: • • • • Open and competitive bidding; Limited source bidding; Negotiated procurement under Section 53 (a) of the IRR-A, where there has been failure of bidding for the second time; and Negotiated procurement under Section 53 (b) of the IRR-A following the procedures under Section 54.2 (b) thereof, whereby the procuring entity shall draw up a list of at least (3) suppliers or contractors who will be invited to submit bids.

Conversely, honoraria will not be paid when procurement is thru: • Direct contracting;
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The Compensation Plan • • • Repeat order; Shopping; Negotiated procurement under Section 53 (b) of the IRR-A following the procedures under Section 54.2 (d) thereof, whereby the procuring entity directly negotiates with previous supplier, contractor or consultant; or when the project is undertaken by administration or in high security risk areas, through the Armed Forces of the Philippines, in case of infrastructure projects; and Negotiated procurement under Section 53 (c) to (g) of the IRR-A.

3.9.12.2.3 The honoraria of each person shall not exceed the rates indicated below per completed procurement project: Maximum Honorarium Rate Per Procurement Project P 3,000 2,500 2,000

BAC Chair BAC Members TWG Chair and Members

3.9.12.2.4 The average amount of honoraria per month over one year shall not exceed 25% of the basic monthly salary. The honoraria, however, shall be paid only upon the successful completion of each procurement. 3.9.12.2.5 To be entitled to honoraria, personnel should be duly assigned as chair or member of the BAC or the TWG by the head of the department/agency concerned. 3.9.12.2.6 The members of the BAC Secretariat who are performing the attendant functions in addition to their regular duties in other nonprocurement units of the agency may likewise be paid honoraria at the same rate as the TWG Chair and Members, subject to the same regulations.

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Manual on Position Classification and Compensation The members of the BAC Secretariat whose positions are in the Procurement Unit of the agency shall not be entitled to honoraria. The payment of overtime services may be allowed, subject to existing policy on the matter. 3.9.12.2.7 Heads of government entities are prohibited from paying honoraria to personnel involved in procurement activities outside of those covered herein. 3.9.12.2.8 By reason of jurisprudence, a Department Undersecretary or Department Assistant Secretary who concurrently serves in the BAC, in whatever capacity, shall not be entitled to honoraria. 3.9.12.2.9 In lieu of honoraria, the payment of overtime services may be allowed for the administrative staff, such as clerks, messengers and drivers supporting the BAC, the TWG and the Secretariat, for procurement activities rendered in excess of official working hours. The payment of overtime services shall be in accordance with the existing policy on the matter.

3.9.12.2.10 Those who are receiving honoraria for their participation in procurement activities shall no longer be entitled to overtime pay for procurement-related services rendered in excess of official working hours. 3.9.12.3 Funding Source 3.9.12.3.1 The amount necessary for the payment of the honoraria and overtime pay shall be sourced only from the following: • • Proceeds from sale of bid documents; Fees from contractor/supplier registry;
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• • • •

The Compensation Plan Fees charged for copies of minutes of bid openings, BAC resolutions and other BAC documents; Protest fees; Liquidated damages; and Proceeds from bid/performance security forfeiture.

3.9.12.3.2 Pursuant to the DOF-DBM-COA Permanent Committee Resolution No. 2005-2 of June 2005, all agencies are authorized to treat the collections from the sources identified in item 3.9.12.3.1 hereof as trust receipts to be used exclusively for the payment of honoraria and overtime pay. Agencies may utilize up to 100% of the said collections for the payment of honoraria and overtime pay subject to the guidelines in item 3.9.12.2. Any excess in the amount collected shall be remitted by NGAs to the Bureau of the Treasury. In the case of GOCCs and LGUs, the same shall form part of their corporate or local government funds, respectively. 3.9.12.3.3 The total amount of honoraria and overtime pay to be paid for procurement-related activities shall not exceed the said collections.

3.9.12.3.4 In case of deficiency in collections from the sources identified in item 3.9.12.3.1, the amount of honoraria and overtime pay shall be adjusted proportionately for all those entitled thereto.

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Manual on Position Classification and Compensation

3.9.13 Night-Shift Differential Pay
Night-Shift Differential Pay is a compensation premium granted to government personnel whose regular work hours fall wholly or partly within 6:00 PM to 6:00 AM of the following day. Its grant was standardized and rationalized pursuant to Budgt Circular No. 8, s. 1995. 3.9.13.1 Coverage All government employees regardless of status of employment, whether permanent, casual, temporary and
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The Compensation Plan contractual, whose regular schedule of work fall partly or wholly between 6:00 PM and 6:00 AM of the following day 3.9.13.2 Not Covered 3.9.13.2.1 Public Health Workers (PHWs); 3.9.13.2.2 Government personnel whose schedules of office hours or work shifts fall between 6:00 AM to 6:00 PM; and 3.9.13.2.3 Government personnel whose services are required, or are on call 24 hours a day such as the military personnel of the Armed Forces of the Philippines, uniformed personnel under the Department of the Interior and Local Government, and Philippine Coast Guard under the Department of Transportation and Communications 3.9.13.3 Rules and Regulations 3.9.13.3.1 The night-shift differential pay shall not exceed 20% of the actual rate of the employee derived as follows:
Actual Salary/Month Actual Hourly Rate (HR) = -------------------------------------(22 Days/Month) (8 Hours/Day) Night-Shift Differential Pay = 1.20 x HR x Number of Hours Rendered

3.9.13.3.2 When the schedule of work hours fall partly within 6:00 PM to 6:00 AM, the night-shift differential pay shall be paid only for the hours within 6:00 PM to 6:00 AM of the following day. 3.9.13.3.3 When an employee working in a regular night-shift falling within the 6:00 PM to 6:00 AM period renders services in excess of the regular 8-hour night-shift, the excess hours shall be compensated through overtime pay, unless payment thereof is suspended by order of the President, or through compensatory time-off.

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Manual on Position Classification and Compensation 3.9.13.3.4 To qualify for the night-shift differential pay, the official work hours shall be prescribed by the head of office taking into consideration the nature of the services of the office concerned and the necessity for an official shift outside the ordinary work hours prescribed by the Civil Service Commission, provided that such official work hours are observed for a period of at least 10 work days. 3.9.13.3.5 Payment of night-shift differential pay may be authorized by the Head of Office without the need of prior approval from the DBM. 3.9.13.4 Funding Source 3.9.13.4.1 For NGAs including SUCs, the amounts shall be charged against the appropriations for the purpose. Deficiencies in appropriations shall be charged against agency savings. For GOCCs and GFIs, the amounts shall be charged against their respective corporate operating budgets. For LGUs, the amounts shall be charged against local government funds.

3.9.13.4.2

3.9.13.4.3

3.9.14 Hazard Duty Pay
The hazard duty pay (HDP) authorized under Section 54, General Provisions of Republic Act No. 9336 (FY 2005 General Appropriations Act) is a compensation premium granted to each official and employee actually assigned to, and performing duties in, strife-torn or embattled areas. 3.9.14.1 Coverage All government personnel in NGAs, including SUCs, GOCCs, GFIs, and LGUs, whether appointive or
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The Compensation Plan elective, on full-time or part-time basis, under permanent or temporary status, personnel with casual and contractual appointments whose salaries/wages are charged to the budgetary allocation for personal services, and who are actually assigned to and performing their duties and responsibilities in strifetorn or embattled areas 3.9.14.2 Not Covered 3.9.14.2.1 Those entitled to HDP or other similar allowances under existing laws, such as the military and uniformed personnel, public health workers, scientists, engineers, researchers and science and technology personnel; 3.9.14.2.2 Those hired through contract of service or job order basis; and 3.9.14.2.3 Those who are not actually assigned to nor performing their duties and responsibilities in strife-torn or embattled areas 3.9.14.3 Rules and Regulations 3.9.14.3.1 Heads of government agencies may grant HDP to their personnel at the following rates without the need for approval by the DBM, provided that the following conditions are met: 3.9.14.3.1.1 The personnel were actually assigned to, and performing their duties and responsibilities in, strifetorn or embattled areas for the following periods in a month: Period of Assignment in Work Days 1 to 7 days Monthly Rates P 400
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Manual on Position Classification and Compensation 8 to 14 days 15 or more days 500 600

3.9.14.3.1.2 The areas of assignment have been determined and certified by the Secretary of National Defense or by his authorized representative as strife-torn or embattled areas. 3.9.14.3.2 The period of entitlement to HDP shall be coterminous with the duration of the actual assignments of the personnel in strife-torn or embattled areas, but in no case they shall exceed 3 months. Such entitlement to HDP may be renewed as deemed necessary by the head of agency, subject to items 3.9.14.3.1.1 and 3.9.14.3.1.2 above. 3.9.14.3.3 Those who work part-time shall receive half of the amounts received by full-time personnel in the same situation. 3.9.14.3.4 The HDP of personnel detailed in other government agencies which work areas are identified as strife-torn or embattled shall be paid by their respective mother agencies.

3.9.14.3.5 Government personnel who are assigned to strife-torn or embattled areas shall no longer be entitled to receive HDP when they are under the following instances for one (1) full calendar month or more: • • on vacation, sick or study leave with or without pay; on maternity leave;

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The Compensation Plan • • • on summer teachers; vacation, such as

on terminal leave; on detail with another agency which work areas are not strife-torn or embattled; on attendance in training courses/ scholarship grants/seminars/similar activities; and on official travel outside of their official stations.

3.9.14.3.6 The government agencies concerned shall submit to the respective DBM Budget and Management Bureaus or Regional Offices not later than fifteen (15) days after the end of each fiscal year a report on the personnel granted HDP by following the format attached as Annex A. 3.9.14.4 Funding Source 3.9.14.4.1 For NGAs, including SUCs, the amounts shall be charged against available savings from released allotments for current operating expenditures without need for prior authority from the DBM, provided all authorized mandatory expenses shall have been paid first; 3.9.14.4.2 For GOCCs and GFIs, the amounts shall be charged against savings from their respective DBM-approved corporate operating budgets; and 3.9.14.4.3 For LGUs, the amounts shall be charged against their respective local government funds, subject to the personal services limitation under Section 325 (a), RA No. 7160 (Local Government Code of 1991),

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Manual on Position Classification and Compensation and subject further to the enactment of the appropriate Sanggunian ordinances.

3.9.14 Subsistence Allowance
Subsistence Allowance is allowance for meal or sustenance of government personnel who, by the nature of their duties and responsibilities, have to make their services available in their places of work even during mealtimes. The grant thereof is pursuant to Section 69, Chapter 7, Book VI of Executive Order No. 292 (Administrative Code of 1987). 3.9.15.1 Coverage
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The Compensation Plan 3.9.15.1.1 Public Health Workers (PHWs) as defined under RA No. 7305 (Magna Carta of Public Health Workers); 3.9.15.1.2 Marine officers, engineers, and crew of government vessels, launches, and motorboats, who take their meals on the mess when aboard said vessels, launches or motorboats; 3.9.15.1.3 Officials and employees who are required to render services within penal institutions, military installations and other similar institutions, and who are required to live within the premises of said institutions for continuous periods that include meal times so as to make their services available at any and all times; 3.9.15.1.4 Lightkeepers and other employees in light stations who are authorized by the head of agency to receive subsistence allowance; and 3.9.15.1.5 Laborers temporarily fielded to isolated or unsettled areas 3.9.15.2 Rules and Regulations 3.9.15.2.1 For PHWs 3.9.15.2.1.1 The rate for subsistence allowance as provided under the GAA, shall be P30 per day per employee, or as presently enjoyed by them based on their respective authorizations. 3.9.15.2.1.2 PHWs are eligible to receive full subsistence allowance as long as they render actual duties. Those on vacation/sick leave, with or without pay, on special privilege leave, maternity/paternity leave, on terminal leave, or on official travel are not entitled to the subsistence allowance.
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Manual on Position Classification and Compensation 3.9.15.2.1.3 Higher rates for subsistence allowance for PHWs may be granted, but not exceeding P50 per day pursuant to the revised Implementing Rules and Regulations (IRR) of RA No. 7305, provided that the additional requirement shall be taken from savings and no additional amount shall be released by the DBM. 3.9.15.2.2 For Other Personnel 3.9.15.2.2.1 The subsistence allowance for marine officers and crew of marine vessels operated by the government shall not be commutable since it is granted for conducting a mess on board said vessels. 3.9.15.2.2.2 When there is no mess hall or whenever available, the same is inadequate, the subsistence allowance may be commuted. 3.9.15.2.2.3 The subsistence allowance for lightkeepers and other employees in light stations and of laborers temporarily fielded to isolated or unsettled districts may be commuted, or the equivalent may be used to furnish them with the usual rations. 3.9.15.2.2.4 Personnel who are on maternity/ paternity leave, on sick or vacation leave with or without pay, or on fulltime or part-time detail with another agency, or reassigned to another organizational unit or special project of the same agency, or attending training course/scholarship grant/ seminar, or any other similar activity, or on official travel are not entitled to subsistence allowance for the duration thereof.
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The Compensation Plan 3.9.15.3 Funding Source 3.9.15.3.1 For NGAs including SUCs, the amounts shall be charged against the appropriations for the purpose in the annual GAA. For GOCCs and GFIs, the amounts shall be charged against their respective corporate operating budgets. For LGUs, the amounts shall be charged against their respective local government funds.

3.9.15.3.2

3.9.15.3.3

3.9.16 Laundry Allowance
The Laundry Allowance is intended to defray the laundry cost incurred for uniforms of specific government personnel pursuant to Section 67, Chapter 7, Book VI of Executive Order No. 292 (Administrative Code of 1987). 3.9.16.1 Rules and Regulations 3.9.16.1.1 Public Health Workers (PHWs) 3.9.16.1.1.1 The laundry allowance
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for

Manual on Position Classification and Compensation PHWs shall be P125 per month as provided in the annual GAA. 3.9.16.1.1.2 PHWs may be granted higher rates of laundry allowance not exceeding P150 per month, regardless of the actual work rendered, pursuant to the Revised Implementing Rules and Regulations of RA No. 7305, provided that the additional requirement shall be taken from agency savings and no additional amount shall be released by the DBM. 3.9.16.1.1.3 The laundry allowance for officials or employees serving in penal institutions or other similar institutions, who are required to wear uniforms during the performance of their duties and responsibilities shall be at rates as provided under their respective authorizations. 3.9.16.2 Funding Source 3.9.16.2.1 For NGAs including SUCs, the amounts shall be charged against the appropriations for the purpose in the annual GAA. 3.9.16.2.2 For GOCCs and GFIs, the amounts shall be charged against their respective corporate operating budgets. 3.9.16.2.3 For LGUs, the amounts shall be charged against their respective local government funds.

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The Compensation Plan

3.9.17 Free Quarters for Certain Government Officials
Free quarters for government officials refer to the free use of government-owned or leased place of lodgings which may include telephone, water and electricity for basic needs. National Budget Circular No. 456, dated November 11, 1996, provides the guidelines on free quarters for certain government officials to implement the pertinent general provision of the annual GAA. 3.9.17.1 Coverage
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Manual on Position Classification and Compensation Government officials and their equivalents under the following categories, who by virtue of agency policies of reshuffling or rotation are assigned or transferred to places other than those of their domiciles and do not own houses or rooms therein: Position Levels Department Regional Directors Department Assistant Regional Directors Bureau Regional Directors Assistant Bureau Regional Directors 3.9.17.2 Not Covered 3.9.17.2.1 Public Health Workers who are entitled free quarters under RA No. 7305; 3.9.17.2.2 Military personnel under the Armed Forces of the Philippines and uniformed personnel of the Department of the Interior and Local Government, Philippine Coast Guard under the Department of Transportation and Communications, and National Mapping and Resource Information Authority under the Department of Environment and Natural Resources (DENR) who are entitled to quarters allowances pursuant to existing laws, rules and regulations; 3.9.17.2.3 Those who are expressly authorized free quarters under existing laws, rules and regulations; and 3.9.17.2.4 Those who are stationed abroad. 3.9.17.3 Rules and Regulations 3.9.17.3.1 Heads of agencies may provide free quarters within their office premises to their officials without the need for approval by the DBM. Category A A B B

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The Compensation Plan 3.9.17.3.2 Where there is not enough space to be used as quarters, houses or rooms may be rented which shall serve as quarters at reasonable rates based on the prevailing cost of rental in the area or locality as determined under Chapter 4 of the Manual of Building Services and Real Property Management issued under Joint DBM, DENR and Department of Public Works and Highways Circular No. 1, dated September 30, 1989 but not to exceed the rates prescribed below: Category Area/Locality Special Cities (Manila/ Quezon City Highly Urbanized Cities/ Capital Centers Others A P3,000 2,500 2,000 B P2,500 2,000 2,000

3.9.17.3.2.1 The rental contract shall be entered into by and between the agency concerned and the owner of the dwelling unit; and the rental payment shall be paid to the latter and not commuted in favor of the official concerned.

3.9.17.3.2.2 The above rates shall be inclusive of the amounts for telephone, water and electric bills. 3.9.17.3.2.3 Those who desire more expensive/ extensive quarters other than those provided by their agencies or by the authorized maximum rental rate, may secure such preferred quarters, provided that the difference between the rental cost

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Manual on Position Classification and Compensation and the amount authorized therefor shall be paid by the former. 3.9.17.3.2.4 The guidelines for free quarters for certain LGU elected officials are provided in Chapter 9 of this Manual. 3.9.17.4 Funding Source 3.9.17.4.1 For NGAs, the amounts shall be charged against the released allotments for maintenance and other operating expenses. 3.9.17.4.2 For GOCCs and GFIs, the amounts shall be charged against their respective corporate operating budgets.

3.9.18 Free Quarters Privileges in Hospitals
Free quarters privileges refer to the free use of government hospital-owned place of lodging authorized under the pertinent general provision in the annual GAA. 3.9.18.1 Guidelines 3.9.18.1.1 Pursuant to item 7.7.1, Rule XV, Revised Implementing Rules and Regulations, RA No. 7305, all PHWs who are on tour of duty and
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The Compensation Plan those who, because of unavailable circumstances are forced to stay in hospitals, sanitaria or health infirmary premises, shall be entitled to free living quarters within hospitals, sanitaria or health infirmary premises. 3.9.18.1.2 Pursuant to DBM Circular Letter No. 2000-17, dated September 19, 2000, free quarters may be provided for the Chief of Hospital, Chief of Clinics, Hospital Administrative Officer and Chief Nurse in view of the nature of their functions which involve round-theclock supervision of the different activities of the hospital. 3.9.18.1.3 In case the above-mentioned hospital officials own houses within the locality or in close proximity to the hospital, said free quarters privilege shall be forfeited and concerned officials shall instead be allowed reimbursement of light and water bills, pertaining to their personal basic consumption and not of the entire household, at rates not exceeding the minimum charges for water and electricity prevailing in the locality for residential users, as certified by the local electric and water utilities offices/providers in the particular areas. Minimum charge refers to the nominal rate charged by water and electric companies/cooperatives to residential users which is the fixed rate for the first block of cubic meter consumption for water or kilowatt for electricity.

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Manual on Position Classification and Compensation

3.9.19 Special Counsel Allowance
The Special Counsel Allowance authorized under the pertinent general provision in the annual GAA is granted to lawyer personnel, including those designated to assume the duties of a legal officer and those deputized by the Office of the Solicitor General in the legal staff of departments, bureaus or offices of the national government to appear in court as special counsel in collaboration with the Solicitor General or prosecutors concerned. 3.9.19.1 Rate of Special Counsel Allowance
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The Compensation Plan The Special Counsel Allowance is granted at P500 for each court appearance, but not exceeding P3,000 per month. 3.9.19.2 Funding Source Savings in agency appropriations/budgets

3.9.20 Anniversary Bonus
The Anniversary Bonus (AB) is a financial incentive authorized under Administrative Order No. 263 dated March 28, 1996, to be granted to government employees on the occasion of their agencies’ milestone years. 3.9.20.1 Coverage All government personnel whether employed on full-time or part-time bases, under permanent, temporary or casual status, elective or appointive, including
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Manual on Position Classification and Compensation contractual personnel whose employments are in the nature of regular employees who have rendered at least 1 year of service in the same agencies as of the date of milestone years and continue to be employed in the same government entities as of the occasion of their milestone anniversaries 3.9.20.2 Not Covered 3.9.20.2.1 Those absent without leave as of the date of the milestone year for which the AB is being paid; 3.9.20.2.2 Those who are no longer in the service in the same government entity as of the date of the milestone year; and 3.9.20.2.3 Those Consultants, experts, laborers of contracted projects (“pakyaw”), student laborers, apprentices, mail contractors, those paid on piecework bases, and others similarly situated 3.9.20.3 Rules and Regulations 3.9.20.3.1 The AB shall be paid at P3,000 personnel, provided that he/she rendered at least 1 year of service in same agency as of the date of milestone year. per has the the

3.9.20.3.2

In case of insufficiency of funds, a lesser but uniform amount of AB may be paid to the personnel entitled thereto. A milestone year refers to the 15th anniversary and to every 5th year thereafter. “Government entities” shall refer to departments, bureaus, offices, commissions and similar bodies of the national government, including GOCCs and GFIs;
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3.9.20.3.3

3.9.20.3.4

The Compensation Plan provided that staff bureaus or entities which form part of the organizational structure of departments or offices shall be deemed absorbed by the latter and shall not be treated as a separate agency. 3.9.20.3.5 A frontline bureau or entity created as such under a distinct law, thus, deemed as an institution in its own right shall be considered a distinct and separate agency for purposes of the grant of AB, notwithstanding the fact that it had since been organizationally integrated with a department or office. The counting of milestone years shall start from the year the government entity was created regardless of whether it was subsequently renamed or reorganized, provided that its original primary functions have not substantially changed. Otherwise, the counting of milestone years shall start from the date the functions were substantially changed. The counting of the milestone years of merged agencies shall start from the date they were merged. Officials and employees in government entities attached to or are placed directly under a department or department level entity and which creation are not through charters, may be considered as organic personnel of the mother department/ department level entity, for purposes of the grant of the AB. The AB shall be granted only during milestone years and shall be received by the employee only once every 5 years, regardless of transfer from one government entity to another.

3.9.20.3.6

3.9.20.3.7

3.9.20.3.8

3.9.20.3.9

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Manual on Position Classification and Compensation 3.9.20.3.10 Government personnel who were found guilty of any offense in connection with their work during the 5-year interval between milestone years shall not be entitled to the immediately succeeding AB. 3.9.20.3.11 The foregoing rules and regulations shall also apply to LGUs as far as applicable, in addition to the rules and regulations in Chapter 9 of this Manual. 3.9.20.4 Funding Source 3.9.20.4.1 For NGAs including SUCs, the amounts shall be solely charged against savings from released allotments for current operating expenses, provided that all authorized mandatory expenses shall have been paid first. For GOCCs and GFIs, the amounts shall be charged against their respective corporate operating budgets. For LGUs, the amounts shall be charged against their respective local government funds.

3.9.20.4.2

3.9.20.4.3

3.9.21 Collective Negotiation Agreement (CNA) Incentive
The CNA Incentive is a cash incentive in whatever form provided for in CNAs and supplements thereto, which were granted pursuant to PSLMC Resolution No. 04, s. 2002 or PSLMC Resolution No. 02, s. 2003, or the rationalized cash incentive granted on or after the effectivity of Budget Circular No. 2006-1 dated February 1, 2006, to the government employees concerned who have contributed either in productivity or cost savings in an agency, in fulfillment of the commitments in the CNAs or supplements thereto. It excludes
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The Compensation Plan such other items that are negotiable, in cash or in kind, listed under Section 2, Rule XII, PSLMC Resolution No. 02, s. 2004, and non-negotiable concerns specified in PSLMC Resolution No. 04, s. 2002 and PSLMC Resolution No. 02, s. 2003. 3.9.21.1 Coverage 3.9.21.1.1 Rank-and-file employees who are members of employees’ organizations accredited by the Civil Service Commission (CSC) in NGAs, SUCs, LGUs, and GOCCs,/GFIs, whether or not covered by RA No. 6758 (Compensation and Position Classification Act of 1989). They do not fall under the following categories: 3.9.21.1.1.1 3.9.21.1.1.2 Those who perform managerial functions; “Coterminous employees” or those whose entrance and continuity in government service are “based on any of the following: 1) trust and confidence of the appointing authority or of the head of the organizational unit where the former is assigned; or, 2) duration of the project, or the period for which an agency or office was created;”1 or “Highly confidential employees” or those who occupy positions which require “high degree of trust and confidence and close intimacy with the appointing authority or immediate supervisor which ensures free and open communication without harassment or freedom from

3.9.21.1.1.3

1

Section 1, Rule I, Definition of Terms, PSLMC Resolution No. 02, s. 2004. 3-93 93

Manual on Position Classification and Compensation misgivings of betrayal of personal trust or confidential matters of state.”2 3.9.21.2 Policy Guidelines 3.9.21.2.1 The CNA Incentive in the form of cash may be granted to employees covered by the grant of the CNA Incentives, if provided for in the CNAs or in the supplements thereto, executed between the representatives of management and the employees’ organization accredited by the CSC as the sole and exclusive negotiating agent for the purpose of collective negotiations with the management of an organizational unit listed in Annex “A” of PSLMC Resolution No. 01, s. 2002, and as updated. 3.9.21.2.2 The grant of the CNA Incentive may be extended to employees under items 3.9.21.1.1.2 and 3.9.21.1.1.3 hereof who contributed to agency productivity and implementation of cost-cutting measures identified in the CNAs or supplements thereto, in line with the equal protection clause of the 1987 Constitution, provided they are assessed and have paid the corresponding agency fees pursuant to PSLMC Resolution No. 1, s. 1993. 3.9.21.2.3 Such CNA Incentive shall refer to those provided in CNAs and supplements thereto which were signed on or after the effectivity of PSLMC Resolution No. 04, s. 2002, and PSLMC Resolution No. 02, s. 2003, or signed and ratified by a majority of the general membership on or after the effectivity of PSLMC Resolution No. 02, s. 2004, “Approving and Adopting the Amended Rules and Regulations Governing the Exercise of the Right of Government Employees to Organize.”

2

Section 1, Rule I, Definition of Terms, PSLMC Resolution No. 02, s. 2004. 3-94 94

The Compensation Plan 3.9.21.2.4 The form of the CNA Incentive shall be simplified and rationalized as follows: 3.9.21.2.4.1 All existing cash incentives in the CNAs in the form of allowances and benefits, such as staple food allowance, rice subsidy, grocery allowance, inflation allowance, relocation allowance, SONA bonus, bonuses other than the year-end benefit authorized under RA No. 6686, as amended by RA No. 8441, etc., shall be consolidated into a single cash incentive, and shall be referred to and collectively paid as the CNA Incentive. Existing cash incentives in the CNAs which are already provided under existing laws, admi-nistrative orders, or with Presidential approval, or under the CSCapproved Program on Awards and Incentives for Service Excellence (PRAISE) established under CSC Memorandum (MC) No. 01, s. 2001, shall not be part of the CNA Incentive to preclude double compensation which is prohibited under the Constitution, and as payments thereof are subject to separate authority and pertinent conditions. Starting from the effectivity of BC No. 2006-1, all CNAs and supplements thereto shall only provide for the
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3.9.21.2.4.2

3.9.21.2.4.3

Manual on Position Classification and Compensation CNA Incentive as the cash incentive. 3.9.21.2.5 The grant of the CNA Incentive in whatever form of cash benefit pursuant to CNAs and supplements thereto, which were signed and ratified on or after the effectivity of PSLMC Resolution No. 04, s. 2002, and PSLMC Resolution No. 02, s. 2003, and before the effectivity of the Circular, which were granted in strict compliance with said PSLMC Resolutions, are thus confirmed as valid CNA Incentives. The amount/rate Incentive: 3.9.21.2.6.1 of the individual CNA

3.9.21.2.6

Shall not be pre-determined in the CNAs or in the supplements thereto since it is dependent on savings generated from costcutting measures and systems improvement, and also from improvement of productivity and income in GOCCs and GFIs; Shall not be given upon signing and ratification of the CNAs or supplements thereto, as this gives the CNA Incentive the character of the CNA Signing Bonus which the Supreme Court has ruled against for not being a truly reasonable compensation (Social Security System vs. Commission on Audit, 384 SCRA 548, July 11, 2002); May vary every year during the term of the CNA, at rates depending on the savings generated after the signing and ratification of the CNA; and May be higher for employees in offices or organizational units which contributed more in cost
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3.9.21.2.6.2

3.9.21.2.6.3

3.9.21.2.6.4

The Compensation Plan savings, productivity, profitability, or a combination thereof, as the case may be. 3.9.21.2.7 The CNA Incentive for the year shall be paid as a one-time benefit after the end of the year, provided that the planned programs/activities/projects have been implemented and completed in accordance with the performance targets for the year.

3.9.21.3 Procedural Guidelines 3.9.21.3.1 An Employees’ Organization Management Consultative Committee or a similar body composed of designated representatives from the management and the accredited employees’ organization shall review the agency’s financial records and report of operations at the end of the fiscal year, and shall arrive at a consensus on the following items: 3.9.21.3.1.1 The guidelines/criteria to be followed in the grant of the CNA Incentive; The total amount of unencumbered savings at the end of the year which were realized out of costcutting measures identified in the CNAs and supplements thereto, and which were the results of the joint efforts of labor and management; The apportioned amounts of such savings shall cover the following items:

3.9.21.3.1.2

3.9.21.3.1.3

“Fifty percent (50%) for CNA Incentive

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Manual on Position Classification and Compensation Thirty percent (30%) for improvement of working conditions and other programs and/or to be added as part of the CNA Incentive, as may be agreed upon in the CNA Twenty percent (20%) to be reverted to the General Fund for the national government agencies or to the General Fund of the constitutional commissions, state universities and colleges, and local government units concerned, as the case may be;”2 or for GOCCs and GFIs, the twenty percent (20%) is to be retained and “to be used for the operations of the agency to include among others, purchase of equipment critical to the operations and productivity improvement programs”3 3.9.21.3.1.4 The individual amount of the CNA Incentive to be granted to the employees concerned based on the established guidelines/ criteria. Such agreements shall be incorporated in a written resolution to be signed by the representatives of both parties and noted by the agency head. This resolution shall serve as basis for accounting and auditing purposes.

3.9.21.3.2

The Employees’ Organization Management Consultative Committee or similar body in GOCCs and GFIs shall determine if the employees concerned are entitled to the CNA Incentive based on compliance with the following

2 3

Section 5, PSLMC Resolution No. 04, s. 2002. Section 6 c), PSLMC Resolution No. 02, s. 2003. 3-98 98

The Compensation Plan conditions, pursuant to Section 2, PSLMC Resolution No. 02, s. 2003: “a) Actual operating income at least meets the targeted operating income in the Corporate Operating Budget (COB) approved by the Department of Budget and Management (DBM)/Office of the President for the year. For GOCCs/GFIs, which by the nature of their functions consistently incur operating losses, the current year’s operating loss should have been minimized or reduced compared to or at most equal that of prior year’s level; b) Actual operating expenses are less than the DBM-approved level of operating expenses in the COB as to generate sufficient source of funds for the payment of CNA Incentive; and For income generating GOCCs/GFIs, dividends amounting to at least 50% of their annual earnings have been remitted to the National Treasury in accordance with the provisions of Republic Act No. 7656 dated November 9, 1993.”

c)

The following are the definitions of the terms aforestated, pursuant to Section 4, PSLMC Resolution No. 02, s. 2003: “a) Corporate Operating Budget – refers to the budget of a government- owned and/or – controlled corporation/ government financial institution consisting of
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Manual on Position Classification and Compensation estimates of revenues, expenditures and borrowings. This is prepared prior to the beginning of the fiscal year and recommended by the governing board of the corporation for consideration and final approval of the President through the DBM. b) Actual operating income – refers to gross income/ revenues generated from the exercise of the corporation’s regular functions as mandated by law. This excludes revenues not recurring in nature, such as interest income, proceeds from the sale of scrap and/or obsolete equipment, materials and/or real estate assets, which sale is not the main function of the corporation. Actual operating expenses – refer to all expenses incurred by the corporation in the conduct of its regular functions. This excludes non-cash items like allowance for bad debts, depreciation/depletion expense, losses from foreign exchange and similar expenses. Operating loss – refers to the excess of actual operating expenses over actual operating income/ revenue.”

c)

d)

The computation of savings for the CNA Incentive in GOCCs and GFIs is illustrated in Annex “A.” 3.9.21.4 Funding Source

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The Compensation Plan 3.9.21.4.1 The CNA Incentive shall be sourced solely from savings from released Maintenance and Other Operating Expenses (MOOE) allotments for the year under review, still valid for obligation during the year of payment of the CNA, subject to the following conditions: 3.9.21.4.1.1 Such savings were generated out of the cost-cutting measures identified in the CNAs and supplements thereto; 3.9.21.4.1.2 Such savings shall be reckoned from the date of signing of the CNA and supplements thereto; 3.9.21.4.1.3 Such savings shall be net of the priorities in the use thereof such as augmentation of amounts set aside for compensation, bonus, retirement gratuity, terminal leave benefits, old-age pension of veterans and other personnel benefits authorized by law and in special and general provisions of the annual General Appropriations Act, as well as other MOOE items found to be deficient. Augmentation shall be limited to the actual amount of deficiencies incurred; and 3.9.21.4.1.4 The basic rule that augmentation can be done only if there is deficiency in specific expenditure items, should be strictly observed. 3.9.21.4.2 National government agencies may use any free portion of their respective cash allocation for payment of the CNA Incentive or, if necessary, may request the release of

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cash allocation from the Department of Budget and Management (DBM). 3.9.21.4.3 GOCCs/GFIs and LGUs may pay the CNA Incentive from savings in their respective approved corporate operating budgets or local government budgets. NGAs shall submit to DBM a report on the utilization of savings for the payment of the CNA Incentive.

3.9.21.4.4

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Annex “A” Illustration GOCC A, which meets the conditions in item 6.2 of this Circular, may grant the CNA Incentive as illustrated below and in Annex “A” of PSLMC Resolution No. 02, s. 2003:
Compliance with item 6.2.a) and 6.2.b) Particulars (In Thousand Pesos) Operating income Less: Operating Expenses Net Operating Income 20,000 Per Approved COB (Projection) 150,000 (120,000) a/ 30,000 As Audited (Actual) 150,000 (100,000) a/ 50,000 Variance 0 20,000 b/

Compliance with item 6.2.c) (In Thousand Pesos) I. 10,000 II. Total income Expenses: Operating Expenses Personal Services MOOE Equipment Outlay Sub-total, Operating Expenses Non-Operating Expenses: Non-Cash Expenses 5,000 Others Sub-total, Non-Operating Expenses Total Expenses III. Net Profit Before Income Tax IV. Income Tax 8,000 V. Net Profit After Income Tax Dividend Payable to the National Government (50%) 5,000 10,000 126,000 34,000 26,000 13,000 160,000 30,000 40,000 30,000 100,000 a/ 40,000 * 46,000 ** 30,000 116,000 Revenues: Operating income Non-operating income

150,000

Notes: * Including payment of the CNA Incentive in the amount of P10 Million, net of P4 million to be retained by the GOCC/GFI ** Including amount used for improvement of working conditions which as an alternative may also be used for CNA incentive a/ Excluding payment of CNA Incentive b/ Amount to be used for CNA Incentive Distribution: (In thousand pesos) Fifty percent (50%) CNA Incentive Thirty percent (30%) for improvement of working conditions and/or to be added as part of the CNA Incentive Twenty percent (20%) to be retained by the GOCC/GFI Total 20,000 10,000 6,000 4,000 20,000

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3.9.22 Travel Expenses
Travel Expenses constitute the amounts authorized under Executive Order (EO) No. 248, dated May 29, 1995 and EO No. 248-A, dated August 14, 1995, as amended by EO No. 298, dated March 23, 2004, as recommended by the Travel Rates Committee created under Section 72, Book VI of Executive Order No. 292, the Administrative Code of 1987, to cover hotel/lodging rate, meals and incidental travel expenses excluding transportation expenses going to and from the destination. 3.9.22.1 Coverage Government personnel, both from the national and local governments 3.9.22.2 Rules and Regulations for Local Travel Hereunder are the rules and regulations relative to local travels approved by the authorities concerned: 3.9.22.2.1 The travel expenses of government personnel regardless of rank and destination shall be P800 per day which shall be apportioned as follows: 50% for hotel/lodging (P400) 30% for meals (P240 or P80 per meal) 20% for incidental expenses (P160) 3.9.22.2.2 Entitlement to travel expenses shall start only upon arrival at the place of destination and shall cease upon departure therefrom at the following percentages:
Percentage 100% To cover Hotel/lodging (50%), meals (30%) and incidental expenses (20%) Hotel/lodging (50%), dinner
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Particulars Arrival not later than 12 noon Arrival after 12

80%

The Compensation Plan
noon Departure before 12 noon Departure after 12 noon and later 30% 40% (10%) and incidental expenses (20%) Breakfast (10%) and incidental expenses (20%) Breakfast (10%), lunch (10%) and incidental expenses (20%)

3.9.22.2.3

In case the local travel occurred only in one (1) day, e.g., an employee arriving at the place of destination at 10:00 AM and leaves at 4:00 PM, he/she shall be entitled only to 40% of the per day rate of P800 or P320, broken down as follows: 10% for breakfast, 10% for lunch, and 20% for incidental expenses. Claims for reimbursement of actual travel expenses in excess of the prescribed rate of P800 may be allowed upon certification by the head of the agency concerned as absolutely necessary in the performance of an assignment and upon presentation of bills and receipts, provided that certification or affidavit of loss shall not be considered as appropriate replacement for the required bills and receipts. Claims for payment of expenses Claims for payment of expenses due to travel/assignment to places within the 50 kilometer radius from the last city or municipality covered by the Metropolitan Manila Area in the case of those whose permanent official stations are in the Metropolitan Manila Area, or from the city or municipality wherein their permanent official stations are located in the case of those outside the Metropolitan Manila Area, shall be allowed only upon presentation of proofs, duly supported by bills or invoices with official receipts of expenses incurred, that they stayed in their places of assignment for the whole duration of their

3.9.22.2.4

3.9.22.2.5

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Manual on Position Classification and Compensation official travels. If they commute daily from the places of assignments to the places of residences or permanent official stations, they shall be allowed only the reimbursement of actual fares at the prevailing rates of the authorized mode of transportation from the permanent official stations to the destinations or places of work and back, and reasonable costs for meals. The total actual fare and cost of meals and incidental expenses shall in no case exceed P400 per day per personnel. 3.9.22.3 Rules and Regulations for Foreign Travel Hereunder are the rules and regulations relative to foreign travels approved by the President, Department Secretaries and their equivalents, as the case may be, under the following authorized purposes/categories. 3.9.14.1.2 Government personnel who travel abroad shall be entitled to the Daily Subsistence Allowance (DSA) as provided in the United Nations Development Program (UNDP) Index which can be secured from the Department of Foreign Affairs. 3.9.14.1.3 The DSA shall be apportioned in the same manner as the travel expenses for local travel. 3.9.14.1.4 Entitlement to DSA shall start only upon arrival at the place of destination and shall cease upon departure therefrom at the same percentages indicated in item 3.9.22.2.2. 3.9.14.1.5 In case the officials or employees authorized to travel are not provided with transportation by the host country or sponsoring organization, they shall be allowed official transportation, which shall be of the restricted economy class, unless otherwise authorized by the President of the Philippines.
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3.9.14.1.6 The airport terminal fee at the point of embarkation to go back to the Philippines upon completion of the official trip abroad may be reimbursed. 3.9.14.2 Funding Source 3.9.14.2.2 For NGAs including SUCs, the amounts shall be charges against their respective appropriations for traveling expenses. 3.9.14.2.3 For GOCCs and GFIs, the amounts shall be charged against their respective corporate operating budgets. 3.9.14.2.4 For LGUs, the amounts shall be charged against their respective local government funds.

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3.9.15

Terminal Leave Benefit and Monetization of Leave Credits
The Terminal Leave Benefit (TLB) refers to the money value of the total accumulated vacation and sick leave credits of an employee based on the highest salary received prior to or upon retirement or voluntary separation from government service. Monetization of Leave Credits (MLC) refers to the payment in advance under prescribed limits and subject to specified terms and conditions of the money value of the vacation and sick leave credits of an employee upon his/her request, without actually going on leave. Budget Circular No. 2002-1 dated January 14, 2002, prescribes the guidelines relative to the computation of the TLB and MLC in accordance with Memorandum Circular (MC) No. 14, s. 1999, issued by the Civil Service Commission (CSC). 3.9.23.1 Guidelines 3.9.23.1.1 Pursuant to Section 40, CSC MC No. 14, the TLB shall be computed as follows: TLB = S x D x CF Where: TLB = Terminal leave benefit S = Highest monthly salary received D = Number of days of accumulated vacation and sick leave credits CF = Constant factor of 0.0478087 month/day The CF was derived as follows: Given: 365 = Days in a regular year
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104 = 10 =

The Compensation Plan Saturdays and Sundays in a regular year Legal holidays (per EO No. 292)

CF =

12 months/year -------------------------[3 65 – (104 + 10)] days/year 12 months -------------------------251 days

CF =

CF = .0478087 month/day Conversely, a day is equal to 0.0478087 month. The equivalent number of days in a month for the purpose of computation of TLB is 20.91667 derived as follows: Number of days = month 1 day --------------- x 1 month 0.0478087

Number of days = 20.91667 days 3.9.23.1.2 The monetization of leave credits shall be computed by using the same formulae for the computation of the TLB. 3.9.23.2 On the Funding Source 3.9.23.2.1 For the TLB 3.9.23.2.1.1 For NGAs including SUCs, the TLBs for compulsory retirees shall be charged against the appropriations for the purpose in the annual GAA. However, compulsory retirees shall be given priority over optional retirees in the use of the built3-109 109

Manual on Position Classification and Compensation in appropriations in cases where claimants simultaneously request for fund releases. Deficiencies in appropriations shall be charged against agency savings. 3.9.23.2.1.2 For GOCCs and GFIs, the TLBs shall be charged against their respective corporate operating budgets. 3.9.23.2.1.3 For LGUs, the TLBs shall be charged against their respective local government funds. 3.9.23.2.2 For the MLC • Funds for the MLC shall be charged solely from savings of government entities.

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3.10

Compensation for Casual Personnel and Those of Same Nature
Casuals, temporary and emergency employees, including skilled, semiskilled and unskilled laborers refer to those hired for short durations only, depending on the needs of the service. 3.10.1 Rules and Regulations 3.10.1.1 In accordance with Section 7, RA No. 6758, the daily wage rate for casual personnel and those of similar nature shall be derived based on the following formulae:
Daily Wage Rate = Authorized Monthly Salary for the Position ------------------------------------------------22 days

3.10.1.2 Payment of the daily wage shall be in accordance with the “No Work, No Pay” policy. Accordingly, casual employees shall be paid wages only on days actually worked based on the above formulae, regardless of the number of work days in a month. Annex “E” shows a sample computation. 3.10.1.3 No wages shall be paid on rest days such as Saturdays, Sundays and regular holidays falling on weekdays unless casual employees worked on these days, and during leaves of absence without pay. 3.10.1.4 Pursuant to PD No. 442, casual employees are entitled to wages on special days proclaimed by the President even if they did not work on these days. 3.10.1.5 Work performed on special work holidays are tantamount to work performed on ordinary work days. 3.10.1.6 Casual personnel and those of similar nature shall be entitled to allowances received by regular personnel, including membership in the GSIS, health insurance, employees compensation insurance, membership in the
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Annex “E”

SAMPLE COMPUTATION OF DAILY WAGE
Mr. Dante dela Cruz, a casual employee, is occupying the position of Utility Worker I, SG-1, with authorized monthly salary of P5,082. His aggregate monthly wages are as follows: Daily Wage Rate = P5,082 22 days (3) P231 231 231 Aggregate Wage For the Month* (2) x (3) = (4) (4) P5,082 4,620 5,313

Months (1) January February October

Number of Work Days (2) 22 20 23

* Based on the assumption that the number of work days is equal to days actually worked

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3.11

Compensation for Contractual Personnel
Contractual personnel are those hired in accordance with specific contracts for specified periods and with definite expected outputs, and are employed to undertake a particular work or project, and whose hiring creates employee-employer relationships between them and the hiring agencies. Contractual personnel are considered as employees of hiring agencies limited to such periods when their services are reasonably required. Civil Service Commission and Department of Budget and Management Joint Circular No. 99-7 dated December 29, 1999, provides the guidelines governing contractual personnel. 3.11.1 Not Covered 3.11.1.1 Student laborers, apprentices, laborers of contracted projects (“pakyaw”), mail collectors, including those paid on piecework bases; and 3.11.1.2 Those whose positions are not classified/approved by the DBM and the CSC 3.11.2 Rules and Regulations 3.11.2.1 The hiring of contractual personnel shall be allowed under the following conditions: 3.11.2.1.1 The desired expertise is not available among the regular staff. 3.11.2.1.2 The service to be rendered is of short duration and the service has to be terminated thereafter. 3.11.2.1.3 The work to be accomplished is very urgent but in utilizing the regular staff, other functions of the agency will be unduly prejudiced. 3.11.2.2 Contractual personnel may be hired only if funds for the purpose are available in agency appropriations/budgets.
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3.11.2.3 Contractual personnel shall not be allowed more than two part-time contracts with government at any one time. 3.11.2.4 Contractual personnel must not be designated in any case to positions wherein they will exercise control or supervision over regular personnel of hiring agencies. 3.11.2.5 Employment contracts shall only be issued on the bases of classified contractual positions duly approved by the DBM, and in no case shall the contracts extend beyond the fiscal year they were approved. 3.11.2.6 Compensation of Contractual Personnel 3.11.2.6.1 Contractual personnel shall be paid salaries of equivalent permanent positions as determined by the DBM, but not to exceed the salaries of immediate superiors. 3.11.2.6.2 Contractual personnel shall be entitled to allowances received by regular personnel, including membership in the GSIS, health insurance, employees compensation insurance, membership in the PAG-IBIG Fund, vacation and sick leaves and the monetization thereof, and payment of terminal leave benefits. 3.11.2.6.3 The contractual employees’ share in the GSIS retirement and life insurance premiums, health insurance premiums, employees compensation insurance premiums and PAG-IBIG Fund contributions shall be paid by the individual contractual employees. 3.11.2.6.4 The Representation and Transportation Allowances (RATA) for contractual officials whose positions have been determined by the DBM as comparable or equivalent in rank to any of the positions enumerated in item 3.9.5.2.1 of this Chapter, may be granted RATA in accordance with the rules and
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3.11.3 Funding Source Funds for the salaries, allowances, other personal benefits of contractual personnel, including the government’s share in the GSIS retirement and life insurance premiums, health insurance premiums, employees compensation insurance premiums and PAG-IBIG Fund contributions shall be charged against the lump-sum funds for the purpose under agency appropriations/budgets for personal services.

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3.12 Maintenance of the Compensation Plan
The Compensation Plan should provide compensation which can stand comparison with those in private industries and which can provide maximum benefit to the service so that the Philippine Government could retain its core of public servants. Thus, the Compensation Plan was established with maintenance mechanisms such that compensation issues brought about by changes in economic conditions, employment conditions, policy decisions, administrative reforms, etc., could readily be addressed without disrupting the relationship between the Position Classification Plan and the Compensation Plan. 3.12.1 Maintenance Mechanisms 3.12.1.1 Regular review of the compensation plan To keep the Compensation Plan current so that it remains reasonable and competitive, the DBM reviews the salary schedule on a regular basis to identify problems brought about by: • inherent defects in the salary schedule reinforced by special salary adjustments to specific groups of government personnel which eventually create salary problems that may disturb salary relationships of positions; inflation, changes in the working environment and in the organization which eventually make the rules and rates of certain fringe benefits unrealistic; new rulings and decisions of courts and quasijudicial bodies which need to be harmonized and/or rationalized with the existing compensation rules and regulations; enactment of laws providing special compensation to special groups;

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Manual on Position Classification and Compensation • changes in the number of years of academic requirements; • • budgetary constraints; and other factors.

The regular review of the salary schedule, salary rules, rules and regulations on the grant of allowances and other personnel benefits enables the DBM to adopt appropriate measures to ensure that the compensation plan is updated and pay equity is maintained. 3.12.1.2 Compensation Survey The DBM conducts compensation surveys as often as economic conditions affect general salary/wage levels. Through the compensation survey, information about compensation levels and practices in selected private firms are gathered using benchmark positions existing in both the public and private sectors. The survey may be by occupation or by industry, and may be conducted by geographical area. The data collected are tabulated, organized and processed statistically to obtain the desired information. Based on the compensation survey results, the DBM is guided in the determination of the prevailing rates of salaries, allowances and other personnel benefits. Policy decisions are made as to the extent of adjustment of salary levels and implementation of allowances and other personnel benefits, taking into consideration the following: • statistical results of survey • the government’s ability to finance the compensation of its personnel on a sustainable basis; and • other considerations such as standard cost of living, geographical location, etc.

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Annex D

Report on Personnel Granted Hazard Duty Pay (HDP) Pursuant to Budget Circular No. ________ FY ______
Department __________________________ Bureau/Agency _______________________
Unique Item Name of Personnel Number (2) (1) Position Title and Salary Grade (3) Period of Assignment (5) HDP Paid (6)

Work Area (4)

Total Amount (7) Jan Feb March April May June July Aug Sep Oct Nov Dec Jan Feb March April May June July Aug Sep Oct Nov Dec

Prepared/Certified Correct: ______________________ Administrative Officer

Approved: _________________ Agency Head

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Manual on Position Classification and Compensation

References
Salaries
Issuances Republic Act No. 6758, August 21, 1989 National Compensation Circular No. 56, September 30, 1989 National Compensation Circular No. 59, September 30, 1989 Corporate Compensation Circular No. 10, October 2, 1989 and February 15, 1999 Joint Senate-House of Representatives Resolution No. 1, s. 1994, March 7, 1994 Executive Order No. 164, March 7, 1994 National Compensation Circular No. 72, March 9, 1994 Executive Order No. 218, January 1, 1995 National Compensation Circular No. 74, January 2, 1995 Corporate Compensation Circular No. 11, series of 1996, January 15, 1996 Executive Order No. 290, January 2, 1996 Titles An Act Prescribing a Revised Compensation and Position Classification System in the Government and for Other Purposes Rules and Regulations on the Standardization of Compensation and Position Classification Plan in the Government List of Allowances/Additional Compensation of Government Officials and Employees Which Shall Be Deemed Integrated Into the Basic Salary Rules and Regulations for the Implementation of the Revised Compensation and Position Classification Plan in Government-Owned and/or -Controlled Corporations and Government Financial Institutions (GOCCs/GFIs) Joint Resolution Urging the President of the Philippines to Revise the Existing Compensation and Position Classification System in the Government and to Implement the Same Initially Effective January 1, 1994 Adopting a Revised Compensation Classification System in the Government and Position

Guidelines for the Initial Implementation of the Revised Compensation and Position Classification System Second Year Implementation of the New Salary Schedule in the Government Guidelines for the Second Year Implementation of the New Salary Schedule in the Government Rules and Regulations for the Implementation of the Revised Compensation and Position Classification Plan in Government-Owned and/or Controlled Corporations and Government Financial Institutions (GOCCs/GFIs) Third Year Implementation of the New Salary Schedule in the Government
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Issuances National Budget Circular No. 448, series of 1996, January 2, 1996 Executive Order No. 389, December 28, 1996 National Budget Circular No. 458, series of 1997, January 2, 1997 Executive Order No. 219, March 20, 2000 National Budget Circular No. 468, March 21, 2000 Executive Order No. 22, June 27, 2001 National Budget Circular No. 474, June 15, 2001 Titles Guidelines for the Third Year Implementation of the New Salary Schedule in the Government Implementing the Fourth and Final Year Salary Increases Authorized by Joint Senate and House of Representatives Resolution No. 1, series of 1994 Guidelines for the Full Implementation of the New Salary Schedule in the Government Grant of Salary Adjustment to All Government Personnel Guidelines for the Grant of Ten Percent (10%) Salary Adjustment to All Government Personnel Effective January 1, 2000 Grant of Salary Adjustment to All Government Personnel Guidelines for the Grant of Five Percent (5%) Salary Adjustment to All Government Personnel Effective July 1, 2001

Step Increments
Issuances Civil Service Commission and Department of Budget and Management Joint Circular No. 1, s. 1990, March 29, 1990 Civil Service Commission and Department of Budget and Management Joint Circular No. 2, s. 1991, July 5, 1991 Civil Service Commission and Department of Budget and Management Joint Circular No. 1-2003, April 11, 2003 Titles Rules and Regulations Governing the Grant of Step Increments to Deserving Officials and Employees of the Government

Amending Section 1, Rule I of the Joint CSC-DBM Circular No. 1, s. 1990

Amending Further Joint CSC-DBM Circular No. 1, s. 1990 (Entitlement to Step Increment)

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Manual on Position Classification and Compensation Personnel Economic Relief Allowance
Issuances Budget Circular No. 4, June 28, 1991 Budget Circular No. 4-A, July 1, 1991 Circular Letter No. 95-9, series of 1995, December 15, 1995 Budget Circular No. 4-B, series of 1996, February 2, 1996 Budget Circular No. 12, April 7, 1997 Titles Grant of Personnel Economic Relief Allowance to All Employees of the Government Grant of Personnel Economic Relief Allowance (PERA) to All Employees of the Government Grant of Personnel Economic Relief Allowance (PERA) to Substitute Teachers Amending Budget Circular No. 4 Dated June 28, 1991 Relative to the Grant of Personnel Economic Relief Allowance to All Employees of the Government Updated Rules and Regulations on the Grant of Personnel Economic Relief Allowance (PERA) and Expansion of Coverage to Include All Employees of the Government

Additional Compensation
Issuances Administrative Order No. 53, May 17, 1993 Titles Implementing the Grant of Additional Compensation in the Amount of P500.00 Per Month to Public School Teachers, and Uniformed Personnel of the Philippine National Police and the Armed Forces of the Philippines, and Extending the Benefit to the Rest of the Personnel of the Government Clarifying the Implementation of the Grant of Additional Compensation in the Amount of P500.00 Per Month to Contractual Personnel of the Government and to Local Officials and Employees Compensation and Additional Benefits of Suspended Government Personnel Extending the Grant of P500 Per Month Additional Compensation (ADCOM) to Government Personnel Allocated to Salary Grade 26 and Above Granting Additional Compensation in the Amount of One Thousand Pesos (P1,000.00) Per Month to All Employees of the National Government
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Administrative Order No. 76, August 17, 1993

Budget Circular No. 15, March 5, 1998 Budget Circular No. 17, February 24, 1999 Administrative Order No. 144, February 28, 2006

The Compensation Plan
Issuances Budget Circular No. 20062, March 2, 2006 Budget Execution Guidelines No. 2006-8, March 3, 2006 Titles Rules and Regulations on the Increase in the Additional Compensation of Government Employees Specific Guidelines on the Release of Funds for the Increase in the Additional Compensation

Uniform/Clothing Allowance
Issuances Budget Circular No. 20038, December 8, 2003 Budget Circular No. 20038A, July 2, 2004 Titles Rules and Regulations on the Grant of Uniform/Clothing Allowance (U/CA) to All Government Personnel for FY 2004 and Years Thereafter Rules and Regulations on the Grant of Uniform/Clothing Allowance (U/CA) to All Government Personnel for FY 2004 and Years Thereafter

Representation and Transportation Allowances
Issuances National Compensation Circular No. 67, January 1, 1992 National Compensation Circular No. 67-A, May 15, 1992 National Budget Circular No. 450, March 5, 1996 National Budget Circular No. 454, October 14, 1996 Corporate Budget Circular No. 18, November 14, 2000 Titles Representation and Transportation Allowances National Government Officials and Employees of

Amending National Compensation Circular No. 67 Dated January 1, 1992 Relative to the Representation and Transportation Allowances of National Government Officials and Employees Representation and Contractual Personnel Transportation Allowances of

Guidelines on the Grant of the Monthly Cash Equivalent of the Transportation Allowance Authorized Under the Annual General Appropriations Act Guidelines for the Implementation of the Revised Rates of Representation and Transportation Allowances (RATA) of Officials in Local Water Districts (LWDs)

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Issuances National Compensation Circular No. 67-B, August 8, 2002 National Budget Circular No. 498, April 1, 2005 Titles Further Amending National Compensation Circular No. 67 Dated January 1, 1992 Relative to the Representation and Transportation Allowances of National Government Officials and Employees Revised Rates of Representation and Transportation Allowances (RATA)

Year-End Bonus and Cash Gift
Issuances Executive Order No. 74, November 26, 1986 Executive Order No. 74-A, December 19, 1986 Republic Act No. 6686, December 14, 1988 Administrative Order No. 57, June 1, 1993 Titles Granting Year-End Bonus and Cash Gift to National and Local Government Officials and Employees Expanding the Coverage of the Year-End Bonus An Act Authorizing Annual Christmas Bonus to National and Local Government Officials and Employees Starting CY 1988 Prescribing the Guidelines for the Advance Payment of One-Half (1/2) of the Amount of the Christmas Bonus and Cash Gift for CY 1993 Under R.A. No. 6686 to Government Personnel Grant of the Balance of One-Half Month Year-End Bonus and Cash Gift for Calendar Year 1993 to Government Officials and Employees Including Those in GovernmentOwned and/or Controlled Corporations and Financial Institutions and Local Government Units Prescribing the Guidelines for the Loan of One-Half (1/2) of the Amount of the Christmas Bonus and Cash Gift for CY 1994 Under R.A. No. 6686 to Government Personnel Grant of Year-End Bonus and Cash Gift for CY 1994 Grant of Year-End Benefits for CY 1994 Authorizing the Grant of an Interest-Free Loan to Government Personnel in CY 1995 and Years Thereafter

National Compensation Circular No. 70, November 8, 1993

Administrative Order No. 132, June 8, 1994 Budget Circular No. 5, October 14, 1994 Budget Circular No. 5-A, December 16, 1994 Administrative Order No. 195, May 30, 1995

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The Compensation Plan
Issuances Budget Circular No. 7, November 2, 1995 Circular Letter No. 12-96, May 3, 1996 Budget Circular No. 11, October 31, 1996 Budget Circular No. 11-A, April 24, 1997 Titles Grant of Year-End Bonus and Cash Gift for FY 1995 and Years Thereafter Grant of an Interest-Free Loan to Government Officials and Employees Grant of Year-End Bonus and Cash Gift and Advance Payment of One-Half (1/2) Thereof for FY 1996 and Years Thereafter Amending Budget Circular (BC) No. 11, Dated October 31, 1996 Relative to the Grant of Year-End Bonus and Cash Gift and Advance Payment of One-Half (1/2) Thereof for FY 1996 and Years Thereafter An Act Increasing the Cash Gift to Five Thousand Pesos (P5,000.00), Amending for the Purpose Certain Sections of Republic Act Numbered Six Thousand Six Hundred Eighty-Six and for Other Purposes Amending Further Budget Circular (BC) No. 11, Dated October 31, 1996 Relative to the Grant of Year-End Bonus and Cash Gift and Advance Payment of One-Half (1/2) Thereof for FY 1996 and Years Thereafter Compensation and Additional Benefits of Suspended Government Personnel Grant of Year-End Bonus and Cash Gift and Advance Payment of One-Half (1/2) Thereof for FY 2000 and Years Thereafter Clarification on the Service Requirement for Entitlement to Year-End Benefits (YEB) Prohibition on the Grant of Additional Bonuses in Any Form Liberalization of the Rules and Regulations on the Payment of Year-End Bonus and Cash Gift Updated Rules and Regulations on the Grant of the YearEnd Bonus and Cash Gift to Government Personnel for FY 2005 and Years Thereafter

Republic Act No. 8441, December 22, 1997

Budget Circular No. 11-B, March 30, 1998

Budget Circular No. 15, March 5, 1998 Budget Circular No. 200018, September 6, 2000 Circular Letter No. 200214, June 25, 2002 Circular Letter No. 200310, October 17, 2003 Budget Circular No. 20032, May 9, 2003 Budget Circular No. 20056, October 28, 2005

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Issuances Administrative Order No. 268, February 21, 1992 National Budget Circular No. 426, April 1, 1992 Administrative Order No. 103, January 14, 1994 Titles Rationalizing the Grant of Productivity Incentive Benefits for Calendar Year 1991 to All Personnel of Government Agencies Grant of Productivity Incentive Benefits to Officials and Employees of the Government Authorizing the Grant of CY-1993 Productivity Incentive Benefits to Government Personnel and Prohibiting Payments of Similar Benefits in Future Years Unless Duly Authorized by the President Prescribing a Standard Incentive Pay System Based on Productivity and Performance, for All Officials and Employees of the Government, National and Local Including Those of Government-Owned and/or –Controlled Corporations and Government Financial Institutions and for Other Purposes Grant of Productivity Incentive Benefits to Officials and Employees of the Government Grant of Productivity Incentive Benefit (PIB) for CY 1994 and Years Thereafter Supplementing National Compensation Circular No. 73 Dated December 27, 1994 on the Grant of Productivity Incentive Benefits (PIB) for CY 1994 and Years Thereafter Grant of Productivity Incentive Benefit (PIB) for CY 1995

Administrative Order No. 161, December 6, 1994

National Compensation Circular No. 71, January 19, 1994 National Compensation Circular No. 73, December 27, 1994 National Compensation Circular No. 73-A, March 1, 1995 Circular Letter No. 3-96, series of 1996, January 15, 1996 Circular Letter No. 3-97, January 31, 1997 Circular Letter No. 2001-6, March 2, 2001 Circular Letter No. 2002-3, January 2, 2002

Grant of Productivity Incentive Benefit (PIB) for FY 1996 and Years Thereafter Grant of Productivity Incentive Benefit Additional Guidelines on the Grant of Productivity Incentive Benefit (PIB)
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Issuances Memorandum Order No. 228, March 29, 1989 National Budget Circular No. 410, April 28, 1989 Memorandum Order No. 227, August 26, 1994 Budget Circular No. 10, March 29, 1996 Titles Prescribing Guidelines Governing the Rendition and Payment of Overtime Services of Government Personnel Rules and Regulations Implementing Memorandum Order No. 228 on the Rendition of Overtime Services With Pay Amending Memorandum Order No. 228, Prescribing Guidelines Governing the Rendition and Payment of Overtime Services of Government Personnel Prescribing and Updating the Guidelines and Procedures on the Rendition of Overtime Services With Pay of Government Personnel

Compensatory Time-Off
Issuances Administrative Order No. 103, August 31, 2004 Civil Service Commission and Department of Budget and Management Joint Circular No. 2, series of 2004, October 4, 2004 Civil Service Commission and Department of Budget and Management Joint Circular No. 2-A, s. 2005, July 1, 2005 Titles Directing the Continued Adoption of Austerity Measures in the Government Non-Monetary Rendered Remuneration for Overtime Services

Amendments to CSC-DBM Joint Circular (JC) No. 2, s. 2004 re: Non-Monetary Remuneration for Overtime Services Rendered

Per Diem
Issuances Executive Order No. 389, December 30, 1989 Titles Authorizing Officials and Employees of the Regular Agencies/Offices of the National Government and of Other Government-Owned and/or Controlled Corporations to Adopt the Rates of Per Diem and Allowances as Authorized Pursuant to Executive Order No. 151 Dated
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Manual on Position Classification and Compensation
Issuances Titles March 19, 1987, as Implemented by National Budget Circular No. 391 Dated October 6, 1987, as Amended, and Ratifying for the Purpose All Previous Payments Made by National Government Agencies/Offices Pursuant to the Said Issuances Budget Circular No. 20036, September 29, 2003 Guidelines Relative to the Grant of Per Diems to Members of Collegial Bodies and Members of the Board of Regents/Trustees of State Universities and Colleges

Honoraria
Issuances Compensation Policy Guidelines No. 98-1, March 23, 1998 Budget Execution Guidelines No. 2004-1, January 8, 2004 Budget Circular No. 20035, September 26, 2003 Titles National Government Officials Entitled to Honoraria Chargeable Against Local Funds Updated Rules and Regulations on the Grant of Additional Allowance and Other Benefits to National Government Officials/Employees Assigned to Local Government Units Prescribing Guidelines on the Grant of Honoraria to Government Personnel for FY 2003 and onwards

Honoraria for Government Personnel Involved in Government Procurement
Issuances Budget Circular No. 20045, March 23, 2004 Budget Circular No. 20045A, October 7, 2005 Titles Guidelines on the Grant of Honoraria to Government Personnel Involved in Government Procurement Guidelines on the Grant of Honoraria to Government Personnel Involved in Government Procurement

Night-Shift Differential Pay
Issuance Budget Circular No. 8, Series 1995, December 4, 1995 Title Prescribing Guidelines and Procedures for the Grant of Night-Shift Differential Pay to Government Employees

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The Compensation Plan Hazard Duty Pay
Issuance Budget Circular No. 20054, July 13, 2005 Title Rules and Regulations on the Grant of Hazard Duty Pay

Subsistence Allowance
Issuance Republic Act No. 7305, March 26, 1992 November 1999 Title Magna Carta of Public Health Workers Revised Implementing Rules and Regulations for Public Health Workers

Laundry Allowance
Issuances Republic Act No. 7305, March 26, 1992 November 1999 Title Magna Carta of Public Health Workers Revised Implementing Rules and Regulations for Public Health Workers

Free Quarters for Certain Government Officials
Issuance National Budget Circular No. 456, November 11, 1996 Title Guidelines on the Provision of Free Quarters to Certain Officials

Free Quarters Privileges in Hospitals
Issuance Republic Act No. 7305, March 26, 1992 Title Magna Carta of Public Health Workers

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Manual on Position Classification and Compensation
Issuance November 1999 Title Revised Implementing Rules and Regulations for Public Health Workers

Anniversary Bonus
Issuances Administrative Order No. 263, March 28, 1996 National Budget Circular No. 452, May 20, 1996 Titles Authorizing the Grant of Anniversary Bonus to Officials and Employees of Government Entities Amplifying and Clarifying the Implementation of the Grant of Anniversary Bonus to Officials and Employees of Government Entities

Collective Negotiation Agreement Incentive
Issuances Executive Order No. 180, June 1, 1987 Titles Providing Guidelines for the Exercise of the Right to Organize of Government Employees, Creating a Public Sector Labor-Management Council and for Other Purposes Grant of Collective Negotiation Agreement (CNA) Incentive for National Government Agencies, State Universities and Colleges and Local Government Units Grant of Collective Negotiation Agreement (CNA) Incentive for Government Owned or Controlled Corporations (GOCCs) and Government Financial Institutions (GFIs) Approving and Adopting the Amended Rules and Regulations Governing the Exercise of the Right of Government Employees to Organize Authorizing the Grant of Collective Negotiation Agreement (CNA) Incentive to Employees in Government Agencies Grant of Incentive Collective Negotiations Agreement (CNA)

Public Sector LaborManagement Council Resolution No. 04, s. 2002, November 14, 2002 Public Sector LaborManagement Council Resolution No. 02, s. 2003, May 19, 2003 Public Sector LaborManagement Council Resolution No. 02, s. 2004, September 28, 2004 Executive Order No. 135, December 27, 2005 Budget Circular No. 20061, February 1, 2006

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The Compensation Plan Travel Expenses
Issuances Executive Order No. 248, May 29, 1995 Executive Order No. 248-A, August 14, 1995 Titles Prescribing Rules and Regulations and New Rates of Allowances for Official Local and Foreign Travels of Government Personnel Amending Executive Order No. 248 Dated May 29, 1995, Which Prescribes Rules and Regulations and New Rates of Allowances for Official Local and Foreign Travels of Government Personnel Amending Further Executive Order No. 248 Dated May 29, 1995 as Amended by Executive Order No. 248-A Dated August 14, 1995, Which Prescribes Rules and Regulations and New Rates of Allowances for Official Local and Foreign Travels of Government Personnel

Executive Order No. 298, March 23, 2004

Terminal Leave Benefit and Monetization of Leave Credits
Issuances Civil Service Commission and Department of Budget and Management Joint Circular No. 1, s. 1991, June 27, 1991 Civil Service Commission Memorandum Circular No. 31, s. 1991, July 23, 1991 Civil Service Commission and Department of Budget and Management Joint Circular No. 2-97, June 25, 1997 Civil Service Commission Memorandum Circular No. 41, s. 1998, December 24, 1998 Civil Service Commission Memorandum Circular No. 14, s. 1999, August 23, 1999 Titles Rules and Regulations Governing the Monetization of Leave Credits of Government Officials and Employees

Guidelines in the Application for Monetization of Leave Credits and the Computation of the Money Value of the Ten (10) Days Monetized Leave Credits Amendatory Rules and Regulations Governing the Monetization of Leave Credits of Government Officials and Employees

Amendments to Rules I and XVI of the Omnibus Rules Implementing Book V of the Administrative Code of 1987 (Executive Order 292) Additional Provisions and Amendments Memorandum Circular No. 41, s. 1998 to CSC

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Issuances Budget Circular No. 20021, January 14, 2002 Titles Computation and Funding of Terminal Leave Benefits and Monetization of Leave Credits

Compensation for Casual Personnel and Those of Same Nature
Issuance Budget Circular No. 20034, September 26, 2003
Note: Compensation Policy Guidelines and Budget Execution Guidelines are only for internal use of DBM technical staff.

Title Rules and Regulations on the Computation and Payment of Daily Wage

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Chapter 4
Responsibility Centers in the Administration of the Position Classification and Compensation System
4.1 Department of Budget and Management
The Department of Budget and Management (DBM) is the primary government agency responsible for the formulation and implementation of the National Budget through the efficient and sound utilization of government funds and resources for the attainment of the country’s development objectives. One of the major functions of the DBM to fulfill its mandate is the development, administration and maintenance of a unified government Position Classification and Compensation System (PCCS). It carries this out principally through the Organization, Position Classification and Compensation Bureau (OPCCB), Budget and Management Bureaus (BMBs) and DBM Regional Offices (DBM-ROs). Below are the pertinent functions of each bureau/office in so far as the PCCS is concerned. 4.1.1 Organization, Position Classification and Compensation Bureau 4.1.1.1 4.1.1.2 Administer and maintain the PCCS; Develop standards, guidelines, rules and regulations on organization, staffing, and classification and compensation of positions; Render advice to or process requests of government entities referred by DBM offices, or by other government offices on organization, staffing, position classification and compensation matters; Maintain, update and enforce position classification and compensation policies and standards; Monitor government manpower levels and maintain a comprehensive database on government positions and compensation through the Government Manpower Information System (GMIS); Establish the government-wide budgetary requirements for personal services and associated budgetary items for inclusion in the annual national budget;

4.1.1.3

4.1.1.4 4.1.1.5

4.1.1.6

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Manual on Position Classification and Compensation 4.1.1.7 Prepare recommendations/position papers on legislative proposals/bills and proposed executive issuances with policy and government-wide implications on organization, staffing and position classification and compensation; Conduct training programs in the field of organization, staffing position classification and compensation; Conduct compensation surveys in private industry to determine prevailing rates of pay for comparable positions in the government; and

4.1.1.8 4.1.1.9

4.1.1.10 Perform other related functions as may be provided by law. 4.1.2 Budget and Management Bureaus (BMBs) A-E 4.1.2.1 Evaluate and process organization, staffing, position classification and compensation proposals of government agencies under their coverage; Establish agency-specific annual budgetary requirements for personal services and associated budgetary items for inclusion in the annual national budget; Conduct position audits in government agencies to ascertain the duties and responsibilities of positions, as necessary; Provide technical assistance to government agencies under their coverage on organization, staffing, position classification and compensation matters; and Prepare recommendations/position papers on legislative proposals/bills and proposed executive issuances with specific agency issues on organization, staffing, position classification, and compensation; and with funding implications.

4.1.2.2

4.1.2.3

4.1.2.4

4.1.2.5

4.1.3 The DBM Regional Offices 4.1.3.1 Evaluate and process position classification and compensation proposals of government entities delegated to DBM-ROs;

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Responsibility Center in the Administration of the PCCS 4.1.3.2 Establish annual budgetary requirements for personal services and associated budgetary items of delegated government entities for inclusion in the annual national budget; Conduct position audits in delegated government entities to ascertain the duties and responsibilities of positions, as necessary; Review budgets of provinces and highly urbanized cities under their coverage, particularly the personal services component, to ensure compliance with existing laws, rules and regulations; and Provide technical assistance to government entities delegated to DBM-ROs on organization, staffing, position classification and compensation matters.

4.1.3.3

4.1.3.4

4.1.3.5

4.2 The Department/Bureau/Office
4.2.1 Agency Head The head of the department, bureau, office or agency shall: 4.2.1.1 4.2.1.2 Ensure compliance by all concerned with the rules and regulations on position classification and compensation; Prescribe the duties and responsibilities of each employee in accordance with the approved classification of the position; and When requested, provide information about the functions of the organization and such other matters necessary for position classification, pay determination and preparation of class specifications.

4.2.1.3

4.2.2 The Administrative Officer or Equivalent Officer The Administrative Officer or equivalent officer of a government agency in charge of human resource management functions serves as the link between the agency and the DBM through the OPCCB/BMB/DBM-RO concerned. The Administrative Officer or equivalent officer shall: 4.2.2.1 Cause the preparation of the Position Description Form (PDF);
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Manual on Position Classification and Compensation 4.2.2.2 4.2.2.3 Review the accomplished PDF for completeness; Indicate BMB/DBM-RO classification action on the agency copy of the PDF and in the Personal Services Itemization and Plantilla of Personnel (PSIPOP); Prepare position classification and compensation reports as required by the DBM; accomplish and update the PSIPOP; and Keep and maintain official position classification and compensation records.

4.2.2.4

4.2.2.5

4.2.3 The Immediate Supervisor The immediate supervisor shall: 4.2.3.1 Assign to the incumbent the duties and responsibilities used as basis for the classification of the incumbent’s position; and Review the PDF of employees for consistency with actual duties and responsibilities.

4.2.3.2

4.3 Submission of Required Agency Documents/Reports to DBM
4.3.1 A well maintained PCCS would proactively address all issues related to human capital, and would be an invaluable tool for strategic planning and decision-making in all levels of management. To keep the PCCS updated and responsive with the times, the DBM enlists the full support of agencies through the submission of agency documents/reports on personnel complement and compensation matters for monitoring, planning and other purposes. 4.3.2 Failure on the part of agency heads, chief accountants, administrative officers, and other responsible agency officers to submit current PSIPOP and such other documents/reports as may be required by the DBM shall subject the agency concerned to appropriate sanctions under existing rules and regulations.

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Chapter 5
Salary Grades of Positions of Constitutional and Other Officials and Their Equivalents
5.1 Salary Grades of Positions of Constitutional Officials
Under RA No. 6758, the salary grades of positions of constitutional officials are as follows: Position President Vice-President President of the Senate Speaker of the House of Representatives Chief Justice of the Supreme Court Senator Member of the House of Representatives Associate Justice of the Supreme Court Chairman, Constitutional Commission Commissioner, Constitutional Commission Salary Grade 33 32 32 32 32 31 31 31 31 30

5.2 Salary Grades of Positions of Equivalent Ranks
The Department of Budget and Management (DBM) determines the positions that are of equivalent ranks to any of the foregoing officials based on the following guidelines: 5.2.1 Salary Grade 33 - This Salary Grade is assigned to the President of the Republic of the Philippines as the highest position in the government. No other position in the government service is considered to be of equivalent rank. 5.2.2 Salary Grade 32 - This Salary Grade is assigned to the VicePresident of the Republic of the Philippines and to positions which head the Legislative and Judicial Branches of the government, namely: the President of the Senate, the Speaker of the House of Representatives, and the Chief Justice of the Supreme Court. No other positions in the government service are considered to be of equivalent rank. 5.2.3 Salary Grade 31 - This Salary Grade is assigned to Senators, and Members of the House of Representatives and those of

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Manual on Position Classification and Compensation equivalent rank. equivalent rank: • • • • • • • • • • • • • The following are examples of positions of

Executive Secretary; Department Secretary; Presidential Spokesman; Ombudsman; Press Secretary; Presidential Assistant II; Presidential Adviser; Director-General Authority); (National Economic and Development

Presiding Justice, Court of Appeals; Presiding Justice, Sandiganbayan; Secretary of the Senate; Secretary-General of the House of Representatives; and UP President.

A position, other than ex-officio, which heads an entity that can be considered organizationally equivalent to a Department by reason of its broad functional scope of operations and wide area of coverage ranging from top level policy formulation to the provision of technical and administrative support to the units under it, can be considered as of equivalent rank to a Department Secretary. 5.2.4 Salary Grade 30 - Examples of positions included in this Salary Grade are the following: • • • Department Undersecretary; Presidential Assistant I; Solicitor-General;

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Salary Grades of Positions of Constitutional and Other Officials and Their Equivalents • • • • • • • • • • Government Corporate Counsel; Court Administrator of the Supreme Court; Chief of Staff (Office of the Vice-President); Deputy Director-General Development Authority); Deputy Ombudsman; Associate Justice, Court of Appeals; Associate Justice, Sandiganbayan; Special Prosecutor; UP Executive Vice-President; and SUC President IV. (National Economic and

Heads of councils, commissions, boards and similar entities whose operations cut across sectors or are serving a sizeable portion of the general public and which coverages are nationwide or whose functions are comparable to the aforecited positions, may be placed at this level. 5.2.5 The salary grades of positions not mentioned herein or those that may be created shall be determined based on the above guidelines.

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Chapter 6
Position Classification and Compensation Scheme for Teaching Positions in Elementary and Secondary Schools
There is no distinction between the duties of one teaching position and those of other teaching positions. All are involved in classroom teaching. Hence, teaching positions are classified based on the personal qualifications of the incumbents thereof rather than based on the preponderant duties and responsibilities and qualification requirements of the positions. This concept deviates from existing standards that work assignments determine the classification and pay levels of positions. The deviation is made in the case of teachers to encourage and reward initiatives for professional growth which are vital in a dynamic educational system. The progression to a higher position level, which does not entail an increase in duties and responsibilities, recognizes the increase in the academic preparation level.

6.1 The Teachers’ Preparation Pay Schedule (TPPS)
The TPPS is the position classification and compensation scheme for teaching positions in elementary and secondary schools. It similarly applies to guidance counselors/coordinators, school librarians who are similarly assigned teaching loads. It does not cover school nurses, school physicians, school dentists and other school employees.

6.2 Components of the TPPS
6.2.1 Coverage The TPPS applies to the following classes of positions:
Class Teacher Master Teacher Head Teacher Special Education Teacher Special Science Teacher Guidance Counselor Guidance Coordinator School Farming Coordinator Vocational Instruction Supervisor I, I, I, I, I, I, I, I, I, II, II, II, II, II, II, II, II, II, Level III III, III, III, III, III III III III IV IV, V, VI IV, V IV, V Salary Grade 10, 11,12 16,17,18,19 13,14,15,16,17,18 13,14,15,16, 17 13,16,19,22, 24 10,11,12 13,14,15 13,14,15 16,17,18

It also applies to certain classes of positions in the Library Services Group which have at least one teaching load:
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Manual on Position Classification and Compensation
Class School Librarian Level I, II, III Salary Grade 10,11,12

The TPPS does not apply to Librarian positions not assigned in schools. 6.2.2 Basis of Classification of Positions The Department of Education (DepEd), in consultation with the Department of Budget and Management (DBM), maintains the TPPS, as shown below:
Occupational Group Library Services School, College and University Teaching Teachers’ Academic Preparation BSE* BSE + 20** MA*** School Librarian III, SG-12 Teacher III, SG-12 Head Teacher III, SG-15 Head Teacher VI, SG-18 Special Education Teacher III, SG-15 Guidance Counselor III, SG-12 School Farming Coordinator III, SG-15 Vocational Instruction Supervisor III, SG-18

School Librarian I, School Librarian II, SG-10 SG-11 Teacher I, SG-10 Head Teacher I, SG-13 Head Teacher IV, SG-16 Special Education Teacher I, SG-13 Guidance Counselor I, SG-10 School Farming Coordinator I, SG-13 Vocational Instruction Supervisor I, SG-16 Teacher II, SG-11 Head Teacher II, SG-14 Head Teacher V, SG-17 Special Education Teacher II, SG-14 Guidance Counselor II, SG-11 School Farming Coordinator II, SG-14 Vocational Instruction Supervisor II, SG-17

* ** ***

Bachelor of Science in Education or equivalent Bachelor of Science in Education or equivalent plus 20 units in Master of Arts or 20 years of teaching at Level I or Level IV in the case of Head Teachers Master of Arts 6-2

Classification and Compensation Scheme for Teaching Positions in Elementary and Secondary Schools 6.2.2.1 Factors for Classification of Positions Under the TPPS, the classification of the teaching positions and others similarly covered are in accordance with the principle of “equal pay for equal work, training and experience.” The classification of such positions are determined based on: 6.2.2.1.1 academic or educational preparation; 6.2.2.1.2 teaching experience including those in private schools; and 6.2.2.1.3 extra-curricular growth. 6.2.2.2 activities for professional

Academic Preparation Prerequisites The minimum requirements for the classification of positions to the levels established for each class of positions are as follows: 6.2.2.2.1 Level I, e.g., Teacher I, School Librarian I Bachelor of Science in Education degree or equivalent;
6.2.2.2.2 Level II, e.g., Teacher II, Guidance Counselor

II - Bachelor of Science in Education degree or equivalent, plus 20 graduate units; and
6.2.2.2.3 Level III, e.g., Teacher III, School Librarian III, Guidance Counselor III - Master’s degree or

equivalent. 6.2.2.3 Equivalents and Areas of Equivalents The DepEd, in consultation with the DBM, establishes “equivalents” to the academic preparation prerequisites and defines the “area of equivalents” and the corresponding units or points. The existing equivalents and areas of equivalents are as follows: 6.2.2.3.1 Table of Equivalents

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Manual on Position Classification and Compensation
Basic Preparation For Level I Bachelor’s degree for teachers (BSE, BSEE, etc.) 1(a) Bachelor of Pedagogy, Bachelor in Library Science, Bachelor of Science in Nursing, etc. (b) All other Bachelor’s degree courses plus at least 18 professional education units For Level II Bachelor’s degree for teachers plus 20 years teaching experience (BSE+20) 2(a) Courses in No. 1(a) above plus 20 graduate units Bachelor’s degree for teachers or equivalent with at least 20 years teaching experience Bachelor’s degree for teachers plus at least 20 units of credit allowances Teacher’s Certificate (2 or 3 years) or equivalent with at least 20 years teaching experience 148 or more units (according to major or minor subject) Category I (Equivalent Titles or Degrees) Category II (Years of Teaching) Category III (Credit Allowances)

(b) Courses in No. 1(b) above with at least 18 professional education units plus 20 graduate units For Level III Master’s degree Master of Science/ in Education Arts Bachelor’s degree for teachers or equivalent with at least 20 graduate units plus 20 years of teaching experience Bachelor’s degree for teachers or equivalent with at least 20 graduate units, plus credit allowances. The total of graduate units and credit allowances should be equal to the number of units required to graduate with an MA degree.

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Classification and Compensation Scheme for Teaching Positions in Elementary and Secondary Schools 6.2.2.3.2 Table of Areas of Equivalents
Professional Activities 1. Formal Training 2. Service in professional committees a. Workshop, seminar, conference, etc b. Special assignment from the Director to perform special educational activity (assignment by detail excluded) 3. Educational travel not for study purposes (report to be submitted and evaluated) 4. Work experience a. Trade (must be functionally related to school assignment) b. Camp counselor 5. In-service training on the national level a. Boy Scouting for scout masters b. Public administration or educational supervision 6. Teaching experience with paid service a. Public school b. Government summer school c. Private school prior to assignment in public school d. Private school courses different from subjects taught in public schools 7. Authorship of educational material excluding thesis and dissertations used to obtain a Master’s or Doctor’s degree 8 Administrative and supervisory experience a. Public school b. Private school Units of Credit 1 unit per academic unit 1 unit per 25 hours 1 unit per assignment of not less than 30 hours 2 units months per 6

5 units per year 1 unit per 2-week camping 1 unit per training period 1 unit per training period 1 unit per 3 years ½ unit per 3-unit course 1 unit per 5 years 1 unit per 3 unit course, ½ unit per annual high school subject 5 units

1 unit per 2 years 1 unit per 4 years 6-5

Manual on Position Classification and Compensation 6.2.2.4 The Equivalents Record Form (ERF) 6.2.2.4.1 The ERF is a tool for determining the appropriate classification of a Teacher position. It reflects the educational preparation, training, teaching experience, workshop and seminars for professional growth undertaken by a teacher. • The ERF contains information on position title, unique item number and authorized salary in the current Personal Services Itemization and Plantilla of Personnel (PSIPOP). Credits claimed as to educational preparation, years of teaching experience in public or private schools and professional activities shall be itemized and supported either by the original or certified true copy of the teacher’s special orders, diploma or transcript of records. The authenticity of the documents such as educational preparation and seminars attended shall be certified by the school registrar and the director of training, respectively. The allowable credits are computed on the basis of the Table of Equivalents. The educational preparation, teaching experience and credits allowed are matched with corresponding category in the preparation and classification levels of the TPPS.

• •

6.2.2.4.2 The processing of the ERF involves the following steps: • Role of the DepEd ♣ The filling of the ERF can be initiated either by the schools division (SD) or the teacher concerned.
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Classification and Compensation Scheme for Teaching Positions in Elementary and Secondary Schools ♦ SD Initiative 1. The SD shall identify teachers with 20 or more years of teaching experience, evaluate the duly certified service records, prepare the Certification as to the names of qualified teachers, and inform the teacher concerned that such submission has been made on his/her behalf. 2. In case of approval, the SD shall determine whether or not the approved ERF is within the cut-off date. In case of disapproval, the teacher shall be informed by the SD concerned. Teachers retiring during the year are not covered by the cutoff dates. 3. If within the cut-off date, the SD shall prepare a request for ERF implementation which shall be endorsed and submitted together with the duly certified service records and Certification as to the names of qualified teachers by the DepEd Regional Office (RO) to the DBM RO concerned. 4. Upon receipt of the Notice of Organization, Staffing and Classification Action (NOSCA), the DepEd RO shall prepare the Notices of Salary Adjustment (NOSA) and the necessary adjustment to the salaries of the teachers concerned.

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Manual on Position Classification and Compensation 5. The SD shall issue the NOSA to the teacher concerned. ♦ Teacher’s Initiative 1. A teacher who has rendered less than 20 years of service but has earned 20 masteral units shall prepare and submit his/her ERF to the SD. 2. The ERF shall be evaluated by the SD and post-audited by the DepEd RO concerned to determine whether or not it meets the required points. 3. The teacher shall be duly informed by the DepEd RO through the SD whether his/her ERF is approved or disapproved. 4. Consequently, steps 2 to 5 of the SD Initiative are taken. ♣ The flow chart for the processing of ERFs is shown in Annexes A and A-I of this Chapter. • Role of the DBM ♣ The DBM RO shall determine whether or not there are available funds for the implementation thereof. If none, the same shall be returned to the DepEd RO with the information that the reclassification may be considered in the next budget cycle. ♣ If there are available funds, the DBM RO shall prepare the corresponding NOSCA and issue the same to the DepEd RO. The salary adjustment accruing to the teachers concerned
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Classification and Compensation Scheme for Teaching Positions in Elementary and Secondary Schools shall be charged against the lump-sum for ERF implementation. 6.2.2.4.3 Specific Compensation Guidelines Teachers with Approved ERFs 6.2.2.4.3.1 for

Movement in position level due to the implementation of the ERF is considered as reclassification, which simultaneously partaking the nature of promotion. Allowable salaries of teachers with approved ERFs To determine the salary that may be authorized for teachers and other teaching related personnel who are appointed to higher level positions due to approved ERFs, the rules on promotion under Item 1 of Annex C of NBC No. 458 may be adopted. To illustrate: A Teacher I whose salary is on the 5th step of SG-10 due to step increment based on length of service, with an approved ERF as Teacher II, SG-11 shall have his salary adjusted to 3rd step of SG-11, applying the rules of promotion. From: Teacher I, SG-10 at P10,971 per month (5th step) To: Teacher II, SG-11 at P11,068 per month (3rd step)

6.2.2.4.3.2

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Manual on Position Classification and Compensation 6.2.2.4.3.3 Grant of step increment due to length of service The reckoning date for the grant of step increment shall be based on the date of appointment to the latest position of the incumbent. Thus, step increments previously earned by a teacher shall no longer be credited in his new position. Likewise, teaching services not credited in the ERF evaluation can no longer be used in computing the step increments of the incumbent in his reclassified position.

6.3 Career Progression System for Public School Teachers
In addition to the TPPS, the Career Progression System for Public School Teachers attaches a premium to classroom effectiveness and allows teachers to remain in the classroom while advancing in status and compensation. The system provides for equivalence in duties, recognition and compensation for whatever career line a teacher chooses. 6.3.1 Career Lines 6.3.1.1 For purposes of advancement, teachers are given the option of choosing alternative career lines in school administration or classroom teaching. At the base of the career system is the Teacher position. Thereafter, a teacher may be promoted either as Elementary/Secondary School Principal, following the school administration career line, or as Master Teacher, which falls under the teaching career line.

6.3.1.2

6.3.2 Classroom Teaching Career Line (CTCL) 6.3.2.1 Executive Order No. 500 established a system of career progression and promotion for public school teachers. Four (4) levels of Master Teacher classes under the CTCL, were created as follows:
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Classification and Compensation Scheme for Teaching Positions in Elementary and Secondary Schools
Class Teacher I Teacher II Teacher III Teacher IV Salary Grade 16 17 18 19

Master Master Master Master

6.3.2.2

There are established qualitative and quantitative criteria for each level of Master Teacher. An applicant must possess all the prescribed qualifications to be considered for a particular level which is measured in terms of educational preparation, performance rating, and teaching experience. There is, likewise, a quota system on the allowable number of Master Teacher positions in elementary and secondary schools. The quota system as determined by the DepEd, in consultation with DBM, is as follows: 6.3.2.3.1 For elementary schools: Total Master Teacher positions shall not exceed 10% of the total authorized teacher positions in the district, to wit: • Master Teacher I positions shall not exceed 6.6% of the total number of authorized teaching positions. Master Teacher II positions shall not exceed 3.4% of the number of authorized Master Teacher I positions.

6.3.2.3

6.3.2.3.2 For secondary schools: One (1) Master Teacher position regardless of level may be allowed per subject area with at least 5-7 authorized teacher positions within the school. 6.3.2.4 Attributes and Functions The following attributes and functions have been identified for Master Teacher levels: 6.3.2.4.1 All Master Teachers shall be administratively under the school heads where they are
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Manual on Position Classification and Compensation assigned notwithstanding their rank and salary. 6.3.2.4.2 Master Teachers shall have regular teaching loads. 6.3.2.4.3 Master Teachers shall guide other teachers in the school or district towards improving their competencies as well as taking the lead in the preparation of instructional materials. 6.3.2.4.4 Master Teachers shall serve as demonstration teachers or teacher consultants in other schools in the district. 6.3.2.5 Criteria As provided under DECS Order No. 57, series of 1997, the requisites/qualifications needed for a candidate to be considered for the Master Teacher position are as follows: 6.3.2.5.1 Master Teacher I 6.3.2.5.1.1 6.3.2.5.1.2 Permanent teacher; Bachelor’s degree for teachers or equivalent as provided in the Magna Carta for Public School Teachers; Very satisfactory performance rating for the last two years; At least 3 years experience; and teaching

6.3.2.5.1.3 6.3.2.5.1.4 6.3.2.5.1.5

At least 25 points in leadership and potential, or has been a demonstration teacher in the district level plus 15 points in leadership and potential.

6.3.2.5.2

Master Teacher II

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Classification and Compensation Scheme for Teaching Positions in Elementary and Secondary Schools 6.3.2.5.2.1 6.3.2.5.2.2 6.3.2.5.2.3 Master Teacher I for at least one year; Very satisfactory Master Teacher I; rating as

Bachelor’s degree for teachers or equivalent as provided in the Magna Carta for Teachers, plus completion of academic requirements for Master of Arts; and At least 30 points in leadership, potential and achievement; or has been a demonstration teacher in the division level plus 20 points in leadership and potential, provided the activities or accomplishments listed for this purpose had not been credited or used for similar promotions.

6.3.2.5.2.4

6.3.2.5.3 Master Teacher III 6.3.2.5.3.1 6.3.2.5.3.2 Master Teacher II; M.A. in education or equivalent; The following are considered M.A. equivalent: • Bachelor’s degree for teachers or equivalent plus 20 years experience and at least 20 M.A. units; Bachelor’s degree for teachers or equivalent plus at least 20 graduate units and at least 18 credit allowances.

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Manual on Position Classification and Compensation 6.3.2.5.3.3 6.3.2.5.3.4 Very satisfactory performance rating as Master Teacher II; and At least 45 points in leadership, potential and achievement, provided the activities or accomplishments cited for this purpose had not been credited for an earlier promotion.

6.3.2.5.4 Master Teacher IV 6.3.2.5.4.1 6.3.2.5.4.2 Master Teacher III; At least an M.A. in Education, M.A. in Teaching or Masters in Education; Outstanding performance rating as Master Teacher III; and At least 60 points in leadership, potential, and achievements provided the accomplishments and achievements cited for this purpose had not been credited for an earlier promotion.

6.3.2.5.4.3 6.3.2.5.4.4

Requests for reclassification of teaching positions to Master Teacher I and from Master Teacher I to Master Teacher II shall be supported by the plantilla and the pertinent evaluation documents. It shall then be reviewed and verified by the DBM RO concerned, subject to the budget rules and regulations on release of funds prescribed under National Budget Circular No. 303 and National Compensation Circular No. 24, respectively. 6.3.3 School Administration Career Line The second career line is school administration which covers Head Teachers and School Principals. 6.3.3.1 Item E (12), Section 7, Chapter I of Republic Act (RA) 9155. provides that the selection, promotion and designation of school heads shall be anchored on the
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Classification and Compensation Scheme for Teaching Positions in Elementary and Secondary Schools principles of merit, competence, fitness and equality, rather than on the number of teachers/learning facilitators and learners in the school. 6.3.3.2 Applicants for Head Teacher and Principal positions must possess executive and managerial competence, in addition to the following criteria: 6.3.3.2.1 Performance 6.3.3.2.2 Experience and Outstanding Accomplishments 6.3.3.2.3 Education and Training 6.3.3.2.4 Potential 6.3.3.2.5 Psycho-social Attributes and Personality Traits 6.3.3.3 Promotion to higher Head Teacher (HT) and Principal positions shall be an open ranking basis where merit and fitness are the main consideration and not the position. The detailed guidelines on the selection, promotion and designation of school heads are provided under DepEd Administrative Order (AO) No. 85, s. 2003 dated November 27, 2003 (Annex B). The modified qualification standards for Head Teacher and Principal positions are prescribed under Civil Service Commission (CSC) Resolution No. 040863 promulgated on July 28, 2004 (Annex C).

6.3.3.4

6.3.3.5

6.4 Compensation Benefits of Teachers
6.4.1 Honoraria for Teaching Overload Section 13 of RA No. 4670 (Magna Carta for Public School Teachers) provides that the actual classroom teaching hours for a teacher shall not be more than 6 hours per day or 30 hours per week. The number of teaching hours is designed to give teachers ample time for preparation of lesson plan, correction of exercises and other work incidental to their normal teaching duties. Teaching hours in excess thereof are paid honoraria. The rates,

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Manual on Position Classification and Compensation which shall be based on the Prime Hourly Teaching Rate (PHTR), shall be computed in accordance with the following formula: AR AR PHTR = ------- T = --------- 1.25 = 0.000781 AR W 1,600 Where: AR = W = T = Annual salary rate of each teacher proposed to be paid honoraria Total teaching hours (This is computed at 40 hours/week multiplied by 40 weeks or 1, 600 hours.) 1.25 or 125% of the teacher’s remuneration for services in excess of 6 hours actual teaching per day but not more than 2 hours.

6.4.2 Proportional Vacation Pay 6.4.2.1 Among the benefits unique to public school teachers is the proportional vacation pay (PVP) whereby teachers are paid during the Christmas break and the summer vacation. Teachers who rendered continuous services in a school year without incurring absences without pay of more than 1 ½ days are entitled to full salaries during Christmas and summer vacation. Those incurring absences without pay of more than 1 ½ days are still entitled to PVP, computed in proportion to the number of days they have served during the school year. Teachers earn service credits when they render authorized services during the vacation period, Saturdays, Sundays and holidays in the course of the regular school year. The service credits earned by teachers may be used to offset absences of teachers due to illness or to offset proportional deduction in PVP.

6.4.2.2

6.4.2.3

6.4.2.4

6.4.2.5

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Classification and Compensation Scheme for Teaching Positions in Elementary and Secondary Schools 6.4.3 Hardship/Special Hardship Allowance 6.4.3.1 Hardship Allowance, as provided under Section 19 of RA No. 4670, is given to all teachers who are assigned to hardship posts whether resident or transient, on regular or temporary status of employment. Hardship posts are public schools that only by hiking, animal ride or banca wholly. Schools that are directly motorized land or water transport do hardship posts. are accessible ride, partly or accessible by not qualify as

6.4.3.2

6.4.3.3 6.4.3.4

Special hardship allowance is granted to teachers assigned to handle multi-grade classes. A multi-grade teacher is defined as a public school teacher handling a class of two or more grades. Combined or multi-grade classes may be allowed at the primary level, from Grades I to IV, if the school age population for a given grade cannot meet the minimum requirement of 15 pupils per class. The hardship/special hardship allowance shall not exceed 25% of the basic pay of the teacher, and is in lieu of hazard duty pay.

6.4.3.5

6.4.4 One Salary Grade Increase for Retiring Public School Teachers 6.4.4.1 As provided under Joint DECS, CHED, GSIS and DBM Circular No. 1, series of 1997, all incumbents of public school teacher positions are entitled to one (1) salary grade increase on the last day of service for retirement benefit purposes. Similarly covered are positions which fall within the purview of a public school teacher as defined under Section 2 of RA No. 4670 and as amended/modified by RA No. 6758. The one salary grade increase shall take effect on the last day of the service of the retiring public school teacher. The salary of the retiring teacher shall be adjusted upward by one salary grade at the same step of his/her previously assigned salary grade.
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6.4.4.2

Manual on Position Classification and Compensation
Annex A

Flowchart for Processing ERFs Schools Division Initiative
Teacher Department of Education (DepEd) Schools Division (SD)
Identifies teachers with 20 or more years of teaching service

Regional Offices (RO)

DBM RO

Next Budget Cycle

Prepares Certification as to names of qualified teachers

Certification

Determines if within cut off date

Determines if retiring during the year

Within the cut off date?
No No

Retiring during the year?

Yes

Prepares the requests for ERF implementation

Yes

Endorses request
Certification and endorsement letter

Next Budget Cycle

Transmits DBM disapproval

No

Funds available?

Yes

NOSA

NOSCA/ NOSA

NOSCA/ NOSA

Prepares NOSA

Prepares NOSCA and SARO; Modification effected in the GMIS NOSCA/ SARO

Receives salary adjustment

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Classification and Compensation Scheme for Teaching Positions in Elementary and Secondary Schools
Annex A-I Flowchart for Processing ERFs Teacher’s Initiative
Teacher Department of Education (DepEd) Schools Division (SD)
Pre-evaluates the ERF

Regional Offices (RO)
Post-audits the ERF
Certification

DBM RO

Prepares and submits ERF

Letter

Informs the teacher
Letter

No

Required points met?

Prepares Certification as to names of qualified teachers

yes

Certification

Determines if within cut off date?

Determines if retiring during the year?

No

Within the cut off date
No Yes

Ye

Retiring during the year
Yes

Prepares the requests for ERF implementation

Endorses request

Certification and endorsement letter

Transmits DBM disapproval

No

Funds available? Yes

NOSA

NOSCA/ NOSA

NOSCA/ NOSA

Prepares NOSA

Prepares NOSCA and SARO; Modification effected in the GMIS

NOSCA/ SARO

Receives salary adjustment

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Manual on Position Classification and Compensation
Annex B
REPUBLIKA NG PILIPINAS REPUBLIC OF THE PHILIPPINES KAGAWARAN NG EDUKASYON DEPARTMENT OF EDUCATION

Dep Ed Complex, Meralco Ave., Pasig City, Philippines

Tanggapan ng Kalihim Office of the Secretary DepEd ORDER No. 85 s. 2003 GUIDELINES ON THE SELECTION, PROMOTION AND DESIGNATION OF SCHOOL HEADS TO: Undersecretaries Assistant Secretaries RegionaL Directors Schools Division/City Superintendents Heads, Public Elementary and Secondary Schools Pursuant to the Implementing Rules and Regulations of R.A. 9155, the selection, promotion and designation of school heads shall be based on merit, competence, fitness and equality. It is based on these principles that the enclosed guidelines are hereby issued. Immediate dissemination of and compliance with this Order is directed. (SIGNED) EDILBERTO C. DE JESUS Secretary Encl.: As stated Reference DepEd Order No. 1, s. 2003 Allotment: 1 __ (D.O. 50-97) To be indicated in the Perpetual Index under the following subjects: OFFICIALS POLICY PROMOTION November 27, 2003

1.

2.

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Classification and Compensation Scheme for Teaching Positions in Elementary and Secondary Schools
GUIDELINES ON THE SELECTION, PROMOTION AND DESIGNATION OF SCHOOL HEADS I. Leadership Framework

Pursuant to Section 6.1, Rule VI of the Implementing Rules and Regulations of Republic Act No. 9155 (Governance of Basic Education Act of 2001) there shall be a school head for all public elementary and secondary schools or a cluster thereof. A school head is a person responsible for the administrative and instructional supervision of the school or cluster of schools. As such, a school head is expected to possess the following leadership dimensions: 1. Education Leadership. The ability to lead in crafting a shared school vision including the development of curriculum policies and practices which provide success for all students; 2. People Leadership. The ability to work with various stakeholders; develop effective relationships with diverse individuals and groups; inspire the respect and cooperation of people and promote the development and effectiveness of people within the organization; 3. Strategic Leadership. The ability to expire complex issues from a global perspective, to manage an educational enterprise, to focus resources and motivate people in the realization of the shared school vision. It is within the framework of leadership that the succeeding guidelines on the selection, promotion, and designation of school heads have been formulated. II. Basic Policies 1. 2. The selection, promotion and designation of school heads shall be anchored on the principles of merit, competence, fitness and equality. Applicants for Head Teacher and Principal positions must possess executive and managerial competence, in addition to the following criteria: i. ii. iii. iv. v. Performance Experience and Outstanding Accomplishments Education and Training Potential Psycho-social Attributes and Personality Traits

Annex 1 presents the details on these criteria. 3. Policies pertaining to Principals 3.1 Aspirants for Principalship must pass a test to be considered for selection and promotion.

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Manual on Position Classification and Compensation
a. To qualify for the test, the aspirant must be any of the following: Master Teacher I for at least two (2) years Master Teacher II for at least one (1) year Head Teacher for at least one (1) year Teacher-in-Charge for at least two (2) years Teacher III for at least three (3) years Teacher II for at least four (4) years Teacher I for at least five (5) years b. The test shall serve as a mechanism for evaluating the aspirants in terms of the 3-dimensional leadership qualifications. It may consist of paper & pencil, simulation, etc. c. The Department Central Office will set the standards for testing.

d. Test development and quality assurance will be provided by the Regional Office. The test administration will be division-based. 3.2 Those who pass the test shall form the pool of qualifiers from which shall be drawn those who will undergo the training for Principalship. 3.3 Pending the development of the test, those who have successfully completed the Basic School Management Course (BSMC) and the Strategic Management and Instructional Leadership Course for School Administrators (SMILE-CSA) being conducted by the National Educators Academy of the Philippines (NEAP) will be exempted from the test requirement for a one year period reckoned from the date of the issuance of this Order. 3.4 The ranking of candidates for Principal position shall be open to all qualified applicants/candidates. 3.5 The appointment of a school principal shall be non-station specific. 4. Policies pertaining to Head Teachers 4.1 Promotion to higher Head Teacher positions shall likewise be on an open ranking basis. 4.2 The ranking of candidates to a Head Teacher position shall be open to all qualified applicant/candidates. 5. Policies pertaining to Teacher-in-Charge 5.1 The Schools Division Superintendent shall designate Teachers-In-Charge. 5.2 To be designated as Teacher-In-Charge, a teacher must have teaching experience of at least three (3) years.

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Classification and Compensation Scheme for Teaching Positions in Elementary and Secondary Schools
III. Computation of Points 1. In computing the number of points for purposes of ranking the Head Teacher/Principal, a specific number of points is assigned to each criterion as follows: Criteria Performance Rating Experience/Outstanding Accomplishments Education/Training Potential Psychosocial attributes and Personality traits Total 2. Maximum No. of Points 40 10/25 10/10 2.5 2.5 Total 40 35 20 2.5 2.5 100

In the evaluation of accomplishment/s, the following matrix is suggested. Outstanding Accomplishment/s Measures Maximum No. of Points 5 5 4 See Annex II 4 4 3 25

Outstanding Employee Award Innovations Research and Dev. Projects Publication/Authorship Consultancy/Resource Speakership Linkages & Resource Mobilization TOTAL Annex II presents the details on computation of points.

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Manual on Position Classification and Compensation
Annex I Following are the basic qualifications required of: I. Head Teacher HTI
BEEd/BSE or its equivalent or Bachelors degree with 18 professional education units 8 hrs. of relevant training 1 year as TIC or 3 yrs. Teaching experience

Criteria
Education

HTII
BEEd/BSE or its equivalent or Bachelors degree with 18 professional education units 8 hrs. of relevant training

HTIII
BEEd/BSE or its equivalent or Bachelors degree with 18 professional education units 8 hrs. of relevant training

HTIV
BEEd/BSE or its equivalent or Bachelors degree with 18 professional education units 8 hrs. of relevant training

HTV
BEEd/BSE or its equivalent or Bachelors degree with 18 professional education units 8 hrs. of relevant training

HTVI
BEEd/BSE or its equivalent or Bachelors degree with 18 professional education units 8 hrs. of relevant training

Training

Experience

1 year as HT VS for the last 3 rating periods

2 years as HT VS for the last 3 rating periods

3 years as HT VS for the last 3 rating periods

4 years as HT VS for the last 3 rating periods

5 years as HT VS for the last 3 rating periods

Performance VS for the last 3 rating periods

Note:

Promotion to higher Head Teacher (HT) positions shall be on an open ranking basis where merit and fitness shall be the main consideration and not the position

II.

Principal PI PII PIII
BEEd/BSE + 6 units of Management 8 hrs. of relevant training 1 yr. as Principal

Criteria
Education

PIV
BEEd/BSE + 9 units of Management 8 hrs. of relevant training 1 yr. as Principal

BEEd/BSE with 18 pro- BEEd/BSE + 6 units fessional units in educa- of Management tion or its equivalent 8 hrs. of relevant training MT I for at least 2 yrs.; MT II for at least 1 yr.; HT for at least 1 yr., TIC for at least 3 yrs.; TII for at least 4 yrs.; TI for at least 5 yrs. VS for the last 3 yrs. or or or or or 8 hrs. of training relevant

Training Experience

1 yr. as Principal

Performance Note:

VS for the last 3 yrs.

VS for the last 3 yrs.

VS for the last 3 yrs.

For Head Teacher and Principal: Training credited in the previous promotion will not be considered in succeeding promotion.

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Classification and Compensation Scheme for Teaching Positions in Elementary and Secondary Schools
Annex II COMPUTATION OF POINTS I. Performance Rating (40 points) Numerical Rating result multiplied by forty (40) per cent II. Experience (10) points Relevant experience consists of the performance of duties and functions relevant to the next higher position over a period expressed in years with every year given a point but not to exceed ten (10) points equivalent to 10 years. III. Outstanding Accomplishments (25) points A. Outstanding Employee Award (5) points Awardee in the school Nomination in the division/awardee in the district Nomination in the region/awardee in the division Nomination in the Department/awardee in the region National awardee (Kapwa Award/Pagasa Award/ Presidential Award) B. Innovations (5 points) Conceptualized an innovative work plan and properly documented and approved by immediate chief and attested by authorized regional/division official Implementation of work plan has been started Work plan has been implemented with documented outputs Work plan or essential parts thereof adopted for wider implementation C. Research and Development Projects (5 points) Conducted research at other levels Conducted research at the other school level Conducted research at the division level D. Research and Development Projects (5 points) Sole Authorship of a book Co-authorship of a book (Shall be divided by the number of authors) Articles published (Per article but not to exceed 4 pts.) - 5 pts. - 4 pts. - 1 pt. - 3 pts. - 4 pts. - 5 pts. 1 2 3 4 pts. pts. pts. pts.

- 5 pts.

- 1 pt. - 2 pts. - 3 pts. - 5 pts.

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Manual on Position Classification and Compensation
E. Consultancy/Resource Speakership in Training/Seminars/ Workshops/Symposia (5 points) District level Division level Regional level National level International level IV. Education and Training (20 points) A. Education (10 points) Bachelors degree in Education Ma units 18 units 24 units or completion of academic requirements MA degree B. Training (10 points) Participant in 3 or more training activities For at least 2 days Co-chairmanship of a technical committee Chairmanship of a technical committee Co-chairmanship of a planning committee Chairmanship of a planning committee V. VI. Potential (2.5 points) Psychosocial attributes and physical characteristics (2.5 points) 2 pts. 4 pts. 6 pts. 8 pts. 10 pts. - 4 pts. - 6 pts. - 8 pts. - 10 pts. 1 2 3 4 5 pt. pts. pts. pts. pts.

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Classification and Compensation Scheme for Teaching Positions in Elementary and Secondary Schools
Annex C DE JESUS, Edilberto C. Re: Qualification Standards for Head Teacher I to III and Principal I to IV (For Elementary School); Teacher I to VI and Principal I to iv (For Secondary School) Positions in the Department of Education x----------------------------------------------------------x RESOLUTION NO . 040863 Secretary Edilberto C. De Jesus of the Department of Education (DepEd) requests the modification of its 1995 approved qualification standards for the following positions: For Elementary School Head Teacher I to III Principal I to IV For Secondary School Head Teacher I to VI Principal I to IV

Secretary De Jesus stated that the modification is anchored under DepEd’s Guidelines on the Selection, Promotion and Designation of Schools Heads under DepEd Order No. 85, s. 2003 pursuant to RA 9155, otherwise known as the Basic Education Act of 2001. Said Act provides, among other things, that the selection, promotion and designation of school heads shall be based on merit, competence, fitness and equality. He likewise stated that that the proposed modified requirements are not lower than those provided under the CSC Qualification Standards. Policy No. 2, Part I – General Policies of CSC MC No. 030962 dated September 12, 2003 specifically the 3rd paragraph provides that “Agencies are encouraged to set specific or higher standard for their positions. These standards shall be submitted to the Commission for approval, and once approved they shall be adopted by the Commission as qualification standards in the attestation of appointments of the agency concerned.” (Underscoring supplied). An evaluation of DepEd’s proposed modified qualification standards vis-à-vis the approved minimum qualification standards of positions as provided in the 1997 Revised Qualification Standards Manual shows that the proposed modified qualification standards are higher. WHEREFORE, foregoing premises, considered, the Commission Resolves to approve the modified qualification standards of the following positions in the Department of Education: POSITION TITLE SG LEVEL EDUCATION EXPERIENCE TRAINING ELIGIBILITY

For Elementary School Head Teacher II 14 2 Bachelor’s degree in Elementary or Bachelor’s degree with 18 professional education units 1 year as Head Teacher 8 hours of relevant training RA 1080 (Teacher)

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Manual on Position Classification and Compensation
POSITION TITLE Head Teacher III SG LEVEL 15 2 EDUCATION Bachelor’s degree in Elementary or Bachelor’s degree with 18 professional education units EXPERIENCE 2 years as Head Teacher TRAINING 8 hours of relevant training ELIGIBILITY RA 1080 (Teacher)

For Secondary School Head Teacher I 13 2 Bachelor’s degree in Elementary or Bachelor’s degree with 18 professional education units with appropriate field of specialization Bachelor’s degree in Elementary or Bachelor’s degree with 18 professional education units with appropriate field of specialization Bachelor’s degree in Elementary or Bachelor’s degree with 18 professional education units with appropriate field of specialization Bachelor’s degree in Elementary or Bachelor’s degree with 18 professional education units with appropriate field of specialization Bachelor’s degree in Elementary or Bachelor’s degree with 18 professional education units with appropriate field of 1 year as Teacher-InCharge or 3 years teaching experience 8 hours of relevant training RA 1080 (Teacher)

Head Teacher II

14

2

1 year as Head Teacher

8 hours of relevant training

RA 1080 (Teacher)

Head Teacher III

15

2

2 years as Head Teacher

8 hours of relevant training

RA 1080 (Teacher)

Head Teacher IV

16

2

3 years as Head Teacher

8 hours of relevant training

RA 1080 (Teacher)

Head Teacher V

17

2

4 years as Head Teacher

8 hours of relevant training

RA 1080 (Teacher)

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Classification and Compensation Scheme for Teaching Positions in Elementary and Secondary Schools
POSITION TITLE SG LEVEL EDUCATION specialization Head Teacher VI 18 2 Bachelor’s degree in Elementary or Bachelor’s degree with 18 professional education units with appropriate field of specialization 5 years as Head Teacher 8 hours of relevant training RA 1080 (Teacher) EXPERIENCE TRAINING ELIGIBILITY

For Elementary School Principal I 18 2 Bachelor’s degree in Elementary or Bachelor’s degree with 18 professional education units MT I for at least 2 yrs.; or MT II for at least 1 yr.; or HT for at least 1 yr.; or TIC for at least 2 years; or T III for at least 3 years; or T II for at least 4 years; or T I for at least 5 years 1 year as Principal 8 hours of relevant training RA 1080 (Teacher)

Principal II

19

2

Bachelor’s degree in Elementary or Bachelor’s degree with 18 professional education units + 6 units of Management Bachelor’s degree in Elementary or Bachelor’s degree with 18 professional education units + 6 units of Management Bachelor’s degree in Elementary or Bachelor’s degree with 18 professional education units + 6 units of Management

8 hours of relevant training

RA 1080 (Teacher)

Principal III

20

2

2 years as Principal

8 hours of relevant training

RA 1080 (Teacher)

Principal V

21

2

3 years as Principal

8 hours of relevant training

RA 1080 (Teacher)

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Manual on Position Classification and Compensation
POSITION TITLE SG LEVEL EDUCATION EXPERIENCE TRAINING ELIGIBILITY

For Secondary School Principal I 18 2 Bachelor’s degree in Elementary or Bachelor’s degree with 18 professional education units MT I for at least 2 yrs.; or MT II for at least 1 yr.; or HT for at least 1 yr.; or TIC for at least 2 years; or T III for at least 3 years; or T II for at least 4 years; or T I for at least 5 years 1 year as Principal 8 hours of relevant training RA 1080 (Teacher)

Principal II

19

2

Bachelor’s degree in Elementary or Bachelor’s degree with 18 professional education units + 6 units of Management Bachelor’s degree in Elementary or Bachelor’s degree with 18 professional education units + 6 units of Management Bachelor’s degree in Elementary or Bachelor’s degree with 18 professional education units + 6 units of Management

8 hours of relevant training

RA 1080 (Teacher)

Principal III

20

2

2 years as Principal

8 hours of relevant training

RA 1080 (Teacher)

Principal IV

21

2

3 years as Principal

8 hours of relevant training

RA 1080 (Teacher)

RESOLVED further, that the above approved qualification standards shall be the bases of the Civil Service Commission in the attestation of appointments and other personnel actions.

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Classification and Compensation Scheme for Teaching Positions in Elementary and Secondary Schools
Let copy of this Resolution be disseminated to all Civil Service Commission Regional and Field Offices. Quezon City, July 28, 2004. (Signed) KARINA CONSTANTINO-DAVID Chairman (Signed) J. WALDEMAR V. VALMORES Commissioner (Signed) CESAR D. BUENAFLOR Commissioner

Attested by:
(Signed) REBECCA A. FERNANDEZ Director IV

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Chapter 7
Position Classification and Compensation Scheme for Faculty Positions in State Universities and Colleges
Prior to the issuance of PD No. 985, State Universities and Colleges (SUCs) which were exempted from the coverage of the National Position Classification and Compensation Plans adopted individual staff credentials and qualifications, position classification and pay plans. The disparities in pay and compensation among similar comparable positions brought about by the different schemes adopted by the various SUCs gave rise to demoralization and dissension among the ranks of faculty members and further complicated the process of compensation administration in SUCs. When the SUCs were placed within the ambit of PD No. 985, the need to rationalize the academic ranks/salaries/advancement of faculty members in SUCs became apparent due to the application of varied faculty evaluation instruments. As early as 1982, the Philippine Association of State Universities and Colleges (PASUC), together with the DBM, started deliberating on a scheme of upgrading/promoting qualified and deserving faculty members through a process of objective evaluation. This paved the way to the development and adoption of a Common Criteria for Evaluation (CCE) across programs and disciplines which aimed to rationalize academic ranks and salaries. National Compensation Circular (NCC) No. 33 was issued on January 2, 1985 with retroactive effect on July 1, 1984. This Circular established the position classification and compensation scheme for faculty positions in SUCs. Since then, amendments of certain provisions including improvements of the CCE have been introduced through NCC No. 68, NCC No. 69 and the latest, National Budget Circular (NBC) No. 461. NBC No. 461 is a revision and an update of NCC No. 69 which was exclusively for the faculty positions in SUCs. Under NBC No. 461, Commission on Higher Education (CHED)-supervised higher education institutions (HEIs), Technical Education and Skills Development Authority (TESDA)-supervised Technical Education Institutions (TEIs) and SUCs are covered.

7.1 Coverage
The Position Classification and Compensation Scheme For Faculty Positions (PCCSFP) covers all teaching positions involved in instruction, research and extension activities in all SUCs, CHED-Supervised HEIs and TESDASupervised TEIs.

7-1

Manual on Position Classification and Compensation

7.2 Common Criteria for Evaluation
As part of the PCCSFP, a CCE is established which shall be the primary basis for recruitment, classification and promotion of a faculty. The CCE is a set of factors consisting of services and achievements which establishes the relative performance of a faculty in the institution for the period of evaluation through the application of a point system in determining faculty rank and sub-rank. The new CCE which was developed by the CHED and PASUC places more emphasis on advancement and performance rather than on educational qualifications. 7.2.1 The CCE Concept and Objectives To implement a standardized PCCSFP, it is imperative for all faculty to pass through a CCE that can distinguish the different faculty ranks within institutions, across institutions and across disciplines and fields. The CCE has the following objectives: 7.2.1.1 7.2.1.2 7.2.1.3 7.2.1.4 7.2.1.5 To standardize faculty ranks among institutions; To rationalize the salary rate appropriate to a faculty rank; To have an instrument for generating the faculty profile across SUCs, HEIs and TEIs; To serve as basis for policy decisions for accelerated faculty development; and To motivate a faculty to upgrade his/her rank and compensation by improving his/her academic qualifications, achievements and performance.

7.2.2 The Point System The CCE point system in determining faculty rank and sub-rank is as follows: 7.2.2.1 Major Factors and Maximum Points
Factors Educational Qualification Maximum Number of Points 85

7-2

Classification and Compensation Scheme for Faculty Positions
Experience and Professional Services Professional Development, Achievement and Honors TOTAL 25 90

200

The specific factors and guidelines for determining credit points are in Annex A of this Chapter. 7.2.2.2 Point Allocation Under NBC No. 461
Faculty Rank Sub-Rank I II III I II III IV I II III IV V I II III IV V VI SG 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Point Bracket 65 – Below 66 – 76 77 – 87 88 – 96 97 – 105 106 – 114 115 – 123 124 – 130 131 – 137 138 – 144 145 – 151 152 – 158 159 – 164 165 – 170 171 – 176 177 – 182 183 – 188 189 – 194 195-200

Instructor

Assistant Professor

Associate Professor

Professor

College/University Professor

7.2.2.2.1 7.2.2.2.2

The highest rank that can be allowed in HEIs and TEIs is Associate Professor V. The quota for the rank of Professor shall be 20% of the total number of faculty positions of each SUC.

7-3

Manual on Position Classification and Compensation

7.3 Qualitative Contribution Evaluation
7.3.1 In addition to the CCE, promotions to higher rank and sub-rank shall be subject to Qualitative Contribution Evaluation (QCE). QCE is the process of determining the eligibility of a faculty candidate for the particular rank and sub-rank indicated by the CCE. 7.3.2 Qualitative Contribution (QC) is the continuous improvement towards excellence by a faculty member in all four (4) functional areas of the institution, namely: instruction, research, extension and production. 7.3.2.1 For those seeking promotion to the higher sub-rank of Instructor and Assistant Professor, the QC shall be on Teaching Effectiveness. For those seeking promotion to the Associate Professor rank, the QC shall be in any two (2) functional areas chosen by the candidate prior to any assessment year. For those seeking promotion to the Professor rank, the QC shall be in any three (3) functional areas chosen by the candidate prior to any assessment year.

7.3.2.2

7.3.2.3

7.3.3 For the QC of Instructors and Assistant Professors, a common evaluation instrument is prepared by a joint committee of CHED, PASUC and TESDA. The evaluation is done by the faculty concerned, his/her peers, his/her supervisor and his/her student beneficiaries. 7.3.4 For the QC of Associate Professors and Professors, a common evaluation instrument is prepared by a joint committee of CHED and PASUC. The evaluation is done by the ratee’s client, by the direct supervisor, by the stakeholders in the completed projects, and by his/her external and internal communities.

7.4 Accreditation
Accreditation is a screening process for validating the eligibility of a faculty candidate to the rank of Associate Professor or Professor. The process involves written exams and interviews, particularly on substantive issues/ questions related to the field of specialization/ discipline of the candidate.

7-4

Classification and Compensation Scheme for Faculty Positions

7.5 Determination of Appropriate Faculty Rank and Salary
7.5.1 A faculty member who is assigned on the basis of the CCE and QCE to a sub-rank higher than his/her present rank, or subsequently promoted through presidential discretion, shall be given the rank and salary corresponding to that higher rank. 7.5.2 A faculty member who merited a higher rank based on the CCE but assigned a lower rank based on the QCE shall be given the rank and salary corresponding to that lower rank. 7.5.3 In the initial implementation of NBC No. 461, a faculty member who is assigned on the basis of the CCE and QCE to a sub-rank lower than his/her present rank shall retain his/her present rank and salary.

7.6 Presidential Discretion
The Head of the SUC, HEI or TEI, may subsequently grant promotions to faculty members for meritorious performance, provided that the aggregate number of sub-ranks involved in all such promotions shall not exceed 15% of the total number of current authorized full-time faculty members annually, provided further that such upward movements shall be limited to the highest sub-rank of the assigned rank as indicated in the CCE. Upward movements to Professor ranks in SUCs and to Associate Professor ranks, in HEIs and TEIs shall similarly be subject to prior evaluation by the Accreditation Committee, to the requirement for appointment to such ranks, and to the quota system prescribed for Professors, in the case of SUCs.

7.7 Appointment to Ranks Below Professor
7.7.1 Instructor I – Entry level, total of CCE points is 65 or less. 7.7.2 Appointment to the ranks of Instructor II to Assistant Professor IV shall be subject to the following requirements: 7.7.2.1 CCE points of at least 66 for the higher sub-rank of the Instructor position and at least 88 for the Assistant Professor position; Earned MA degree for Assistant Professor II to IV; and

7.7.2.2

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Manual on Position Classification and Compensation 7.7.2.3 QC in instruction, Effectiveness. otherwise known as Teaching

7.7.3 Appointment to the rank of Associate Professor shall be subject to the following requirements: 7.7.3.1 CCE points of at least 124; 7.7.3.2 Earned MA degree; 7.7.3.3 QC in at least 2 of the 4 functional areas; and 7.7.3.4 Accreditation by a committee of experts constituted by PASUC for candidates entering the Associate Professor rank for the first time; in the case of those in HEIs and TEIs.

7.8 Appointments to Professor Ranks
7.8.1 The minimum criteria for appointment to full Professor ranks are as follows: 7.8.1.1 Education - This refers to the relevant doctoral academic degree from a college or university of recognized standing either locally or abroad. However, in highly meritorious and extremely exceptional cases as in areas of specialization or fields of discipline where there is a dearth of doctoral programs or the same are not readily available, the foregoing doctoral degree requirement may be waived. Productivity - This refers to significant outputs, contributions and applications and/or use of research results in commercial or industrial projects in relevant fields of applied and natural sciences and includes the following: 7.8.1.2.1 Scientific articles in publications of international circulation, and other works of similar nature; Discoveries, inventions and other significant original contributions; Books, monograms, compendiums and major bodies of published work;
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7.8.1.2

7.8.1.2.2 7.8.1.2.3

Classification and Compensation Scheme for Faculty Positions 7.8.1.2.4 Transformation of research recommendations to public policy benefiting the country’s training of science graduates or significant contribution to manpower development and/or science and technology, practical application of research results in industrial or commercial projects and/or undertakings; and Such other criteria which the Accreditation Committee may require as may be warranted by new developments in science and technology.

7.8.1.2.5

7.8.1.3

Professional standing - This refers to the level of acceptance and recognition in the academic community in terms of professional, moral and ethical integrity.

7.8.2 The appointment to Professor ranks shall be subject to the following requirements: 7.8.2.1 7.8.2.2 CCE points of at least 159; Earned doctorate, in the case of Professors IV to VI; where a doctorate is not normally part of career preparation, or where such doctoral program is rare as determined by CHED, the doctoral requirement may be waived, provided that the candidate has an appropriate master’s degree, and has earned 20 points in the following areas: 7.8.2.2.1 7.8.2.2.2 Books, monograms, compendiums, and major bodies of published work; Scientific articles in publications of international circulation, and other works of similar nature; Discoveries, inventions and other significant original contributions; Research recommendations transformed to public policy benefiting the country; Supervision, tutoring or coaching of graduate scientists and technologists; and
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7.8.2.2.3 7.8.2.2.4 7.8.2.2.5

Manual on Position Classification and Compensation 7.8.2.2.6 Research results applied or utilized in industrial and/or commercial projects or undertaking.

7.8.2.3 7.8.2.4

QC in at least 3 of the 4 functional areas; and Accreditation by a committee of experts constituted by PASUC for candidates entering the Professor rank for the first time.

7.8.3 Limitations The following guidelines set the limitations for appointment to Professor ranks: 7.8.3.1 The number of Professor positions shall not exceed 20% of the total number of faculty positions in the SUC concerned; and An applicant who fails in the accreditation process including those who qualify as Professors but are in excess of the quota for Professor ranks shall be appointed to the position of Associate Professor V.

7.8.3.2

7.9 Appointments to College/University Professor Ranks
7.9.1 The following are deemed qualified for appointment as College/ University Professors: 7.9.1.1 Deserving faculty members, occupying Professor positions who satisfy the qualification for accreditation under item 7.9.5 hereof and duly accredited by the PASUC Accreditation Committee; SUC Presidents and Vice-Presidents or their equivalents who opt to receive the basic salary pertaining to their assigned academic rank under the CCE, and those who opt to return to teaching due to their resignation/retirement not for cause before the expiration of their fixed terms of office provided that they have complied with the requirements prescribed for College/University Professors; and SUC Presidents/Vice-Presidents who opt to return to teaching after the expiration of their fixed terms of office
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7.9.1.2

7.9.1.3

Classification and Compensation Scheme for Faculty Positions may be appointed as College/University Professors subject to the provisions of NBC No. 461, insofar as pertinent, in addition to the slots available for deserving faculty members. Thereafter, any vacancy arising from the retirement/ resignation of a faculty member appointed as College/ University Professor, shall not be filled until such time that the SUC President/Vice-President similarly appointed as College/University Professor has retired/resigned from the government service. 7.9.2 The following are the requirements College/University Professor: 7.9.2.1 7.9.2.2 7.9.2.3 7.9.2.4 7.9.2.5 CCE points of at least 195; Earned doctorate; Professorial accreditation, in case of a faculty; A pass from a Screening Committee, duly constituted by PASUC; and QC in at least 3 out of the 4 functional areas. for appointment as

7.9.3 Limitations The following guidelines set the limitations for appointment as College or University Professor: 7.9.3.1 Only one position of College Professor, per college, is authorized for every 6 years, the total of which shall not exceed the number of authorized colleges and external campuses of the respective SUC; Only one position of University Professor, per University, is authorized for every 6 years, the total of which shall not exceed 5% of the total number of accredited full professors in the university concerned; and The classification of existing College Professor positions at SG-29 whose incumbents were appointed based on the previous point allocation under NCC No. 69 shall be coterminous with the incumbents. Hence, upward movements of incumbents of positions of College
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7.9.3.2

7.9.3.3

Manual on Position Classification and Compensation Professor, SG-29, to the new rank of College/University Professor, SG-30, is not automatic. The salary grade of incumbents thereof who were accredited under NCC No. 69 shall remain at SG-29 until they qualify as College/University Professor based on the point allocation under NBC No. 461. 7.9.4 Screening Process Upon recommendation by the institution head concerned, all candidates for the rank of College/University Professor shall undergo screening by an independent body, to be organized by the Philippine Association of State Universities and Colleges (PASUC). 7.9.5 Qualifications for Accreditation as College/University Professor 7.9.5.1 He/She must be an outstanding scholar and scientist as shown in the quality of his/her publications and researches in his/her principal field of study and in allied fields; or he/she must have manifested outstanding performance in his/her executive leadership role. He/She must have expert knowledge in one field or division and familiar with at least one other subject within another division. He/She must be known for intellectual maturity and objectivity in his/her judgment. He/She must have a high reputation among his/her colleagues and other scholars for his/her mastery of the subject of his/her specialization. Recognition and esteem could be manifested in the following ways: 7.9.5.5.1 His/her contributions to the advancement of his/her fields of specialization are recognized by colleagues, here and abroad. He/She is published in the most respected learned journals in his/her field of specialization. His/Her works are worldly acclaimed and
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7.9.5.2

7.9.5.3 7.9.5.4

7.9.5.5

7.9.5.5.2

7.9.5.5.3

Classification and Compensation Scheme for Faculty Positions provoke spirited discussions among scholars, often from various disciplines. 7.9.5.5.4 He/She is often invited to other universities and scholarly gatherings for the originality of his thoughts. He/She is accorded various forms of honors (awards, chairs, titles, etc.).

7.9.5.5.5

7.10 Conversion of Teaching and Teaching-Related Positions in CHED-supervised HEIs and TESDAsupervised TEIs Integrated into SUCs
7.10.1 To preclude position downgrading implications, the existing teaching/teaching related positions integrated with the staffing pattern of newly converted SUCs shall be initially converted/retitled to their lateral equivalent SUC faculty positions based on salary grades without the need for prior evaluation under NBC No. 461. Examples:
From Secondary School Principal II, SG-19 Master Teacher II, SG-17 Head Teacher III, SG-15 To Associate Professor I, SG-19 Assistant Professor III, SG-17 Assistant Professor I, SG-15

7.10.2 All positions of Teacher I, SG-10, Teacher II, SG-11, and Teacher III, SG-12, shall be automatically converted/retitled to Instructor I, SG-12. 7.10.3 The initial faculty ranks shall serve as bases for future movements/promotions to higher level positions. Should the ensuing evaluation under NBC No. 461 result in the downgrading of the initial ranks, the faculty concerned shall retain his/her assigned rank and salary grade at conversion until he/she qualifies for a higher rank. 7.10.4 Teaching positions handling laboratory classes in teacher education courses may be converted/retitled to faculty positions provided they serve as critic teacher in such teacher education courses and each attends to at least three (3) practicum students at the senior level.
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Manual on Position Classification and Compensation

7.11 Role of Agencies in the Implementation of NBC No. 461
7.11.1. Role of SUCs, HEIs and TEIs The heads of SUCs, HEIs and TEIs shall submit the Personal Services Itemization and Plantilla of Personnel (PSIPOP). reflecting the modifications in rank/sub-rank and the corresponding salary adjustments of faculty members concerned together with the CCE Computer Print-out and pertinent evaluation documents. 7.11.2. Role of DBM The DBM Regional Offices (ROs) shall verify and post-audit the PSIPOP. The DBM ROs shall then prepare the Notice of Organization, Staffing and Compensation Action (NOSCA) reflecting the changes in the rank/sub-rank and salaries of faculty members concerned in the respective institution.

7.12 Evaluation Cycle
As a matter of policy, the evaluation may be undertaken every odd year for SUCs. In the case of HEIs and TEIs, the evaluation may be undertaken every even year.

7.13 Additional Compensation for Faculty
7.13.1 Honoraria for Teaching Overload Faculty members are entitled to honoraria for services rendered in excess of the regular teaching load. Honoraria shall be based on the Prime Hourly Teaching Rate (PHTR) which shall be computed as follows: 7.13.1.1 For undergraduate program AR AR PHTR = --------T = -------- x 1.25 = 0.000781 AR W 1600
Where: AR = annual salary rate of each faculty proposed to be paid honoraria
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Classification and Compensation Scheme for Faculty Positions
W = Total teaching hours (40hrs/week multiplied by 40 weeks or 1600 hrs.) T = 1.25 or 125% of the faculty’s remuneration for services in excess of 6 hours of actual teaching per day but not more than 2 hours

7.13.1.2 For graduate program 7.13.1.2.1 For faculty members with degrees and with special preparation Bachelor’s vocational

AR PHTR = --------- x 1.5 = 0.0012 AR 1,296 7.13.1.2.2 For faculty degrees members with Master’s

PHTR = 0.0014 AR 7.13.1.2.3 For faculty Degrees members with Doctorate

PHTR = 0.0015 AR 7.13.1.3 Reduced Teaching Load for Faculty Assigned with Workload Other than Teaching In the determination of the load of a faculty who is given assignments other than teaching, the following allowable percentage weights are adopted: • 25% of the official time of faculty members concerned shall be credited to actual teaching load; and 75% of the official time of faculty members concerned shall be allotted for workload other than teaching in connection with research and extension functions, or as a Dean/Department Head or Director.

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Manual on Position Classification and Compensation 7.13.2 Representation and Transportation Allowances (RATA) Faculty members who are designated as Vice- Presidents/Deans/ Directors/Department Heads are authorized RATA based on their rank equivalence at the rates provided in the annual General Appropriations Act (GAA). 7.13.2.1 Vice-Presidents SUC Level
4 3 2 1

Rank Equivalence Bureau Director Assistant Bureau Director Bureau Regional Director Bureau Assistant Regional Director

7.13.2.2 Deans equivalent to Assistant Bureau Regional Director 7.13.2.2.1 Designated Dean of the Graduate School with at least a Master of Arts/Master of Science Program with 15 faculty members. 7.13.2.2.2 Designated Deans of Colleges with at least four (4) degree programs and a teaching complement of 40 full-time faculty members. In case the SUC cannot meet the minimum number of programs required, it may still be entitled to a Dean, if it meets the following:
No. of Programs 4 3 2 1 No. of Full-Time Faculty Members 40 50 60 70

7.13.2.3 Directors/Department Heads equivalent to Chiefs of Division 7.13.2.3.1 Designated Director of Research Services, with at least P500,000 appropriation for research service function; when no authorized research function in the GAA, the
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Classification and Compensation Scheme for Faculty Positions SUC to have at least 10 research projects with a total cost of P500,000 per annum. 7.13.2.3.2 Designated Director of Extension Services, with at least P500,000 appropriation for extension service function; when no authorized extension services function in the GAA, the SUC to have at least 10 extension services projects with a total cost of P500,000 per annum. 7.13.2.3.3 Designated Director of Auxiliary Services, provided the SUC has a yearly income from its operations of at least P60,000 and at least 7 personnel involved in such income generating projects. 7.13.2.3.4 Designated Director of each satellite campus/ branch/center/institute, duly mandated by law, provided each campus/branch/center/ institute has a complete administrative staff, i.e., at least a budget officer, an accountant/bookkeeper, an administrative officer/administrative assistant, a supply officer/property custodian, a cashier/ disbursing officer and other support positions such as clerks, janitors and security guards and at least 1,000 students in the tertiary level. 7.13.2.3.5 Designated Director of Student Affairs Services for SUCs with at least 4,000 college students. 7.13.2.3.6 Designated Department Heads of different departments/colleges, each one having at least 4 degree programs with each program differentiated from each other by 33% (the distinction of the programs to be certified by the CHED). 7.13.3 Compensation of faculty/non-faculty members designated as Vice- Presidents (VP) 7.13.3.1 Faculty and non-faculty members who are designated as VPs shall be entitled to the difference between their
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Manual on Position Classification and Compensation present salaries and the 1st step of the salary grade of the VP positions corresponding to the level of the SUCs concerned. Said salary differentials shall form part of their actual salaries as designated VPs. The year-end benefits (YEB) and retirement and life insurance premiums (RLIP) shall be adjusted accordingly during their periods of designation. 7.13.3.2 A designated VP who is already receiving a salary higher than the 1st step of a permanent VP position shall only be entitled to the corresponding RATA for the position. In no case shall the designee’s basic salary plus the salary differential exceed the hiring rate prescribed for a permanent VP position for the particular SUC level. 7.13.3.3 The aggregate salary received during the designation cannot be used as previous salary for purposes of future appointment. It shall not be considered for purposes of the computation of terminal leave benefits (TLB). 7.13.3.4 During the period of designation, the VP shall continue to be entitled to step increment in his/her regular position but not as VP. In case his/her step increment in his/her lower position overtakes the 1st step of the VP position, he/she shall be allowed to receive the higher salary. 7.13.3.5 In the event that the designation, being of a temporary nature, is revoked by the Governing Board of the SUC concerned, he shall revert to his/her salary in his/her regular position plus any step increment he/she earned during the period of designation. 7.13.4 Night Pay of Faculty/Non-Faculty of the Polytechnic University of the Philippines (PUP) 7.13.4.1 The PUP is authorized by law to compensate its faculty and non-faculty including those from outside of the University for night services rendered on top of their regular services. The night service is considered as a separate and distinct program from the regular 8-hour service. The night pay does not partake of the nature of overtime
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Classification and Compensation Scheme for Faculty Positions pay which is not part of basic salary. The night pay partakes more of the nature of basic salary, as a matter of right for recompense of services rendered in the night program of the University. 7.13.4.2 The night pay, therefore, is integrated into the basic salaries of the University’s employees for purposes of retirement benefits. This authority, however, is applicable only to PUP. 7.13.5 Step Increment of Faculty Members 7.13.5.1 In cases of promotion or movements from one rank/sub- rank to another, the step increment earned by a faculty member in his/her previous faculty rank cannot be carried over to his/her salary in the higher level faculty rank. His/Her next step increment shall be reckoned from the date of his/her appointment to the higher level faculty rank. 7.13.5.2 In case of conversion of a teaching position to a faculty rank, the step increment earned by a teacher in his/her previous position cannot also be carried over to the converted faculty rank. His/Her step increment shall be reckoned from the date of his/her appointment to the newly converted faculty rank.

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Manual on Position Classification and Compensation

Annex A
Specific Factors and Guidelines for Determining Credits Points Under the Common Criteria for Evaluation 1. Educational Qualifications ----------------------------------- 85 pts. 1.1 Highest relevant academic degree or educational attainment with the following maximum points credits 1.1.1 Doctorate Degree ………………………………… 85 1.1.2 Master’s Degree …………………………………… 65 1.1.3 LLB and MD ……………………………………...… 65 The MD shall be considered a Doctorate degree if the holder is teaching in a College of Medicine 1.1.4 Diploma course (above a bachelor’s degree).. 55 1.1.5 Bachelor’s degree (4 years) ……………………… 45 In the case of a Bachelor’s degree which is more than 4 years, additional credit of 5 points is given for every year over 4 years 1.1.6 Special Courses • • 3-year post secondary course…………………30 2-year post secondary course…………………25

1.2 Additional equivalent and relevant degree earned 1.2.1 Additional Master’s degree……………………..…….4 1.2.2 Additional Bachelor’s degree……………………..….3 An additional equivalent and relevant degree earned related to the present position refers to another degree on the same level as the advanced degree that the faculty has already earned. Relevance is the applicability of the degree to teaching and to the subjects the faculty is teaching, or the duties and functions other than teaching which the faculty performs.

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Classification and Compensation Scheme for Faculty Positions For example, a holder of an M.S. in Math acquired a degree in M.S. Physics. However, an M.A. holder, who acquired 2 bachelor degrees like A.B., BSE, shall be credited only for his/her M.A. degree. 1.3 Additional credits earned 1.3.1 For every 3 units earned toward a higher approved degree course (maximum of 10 pts.) …………………………………1 2. Experience and Professional Services-------------------------------- 25 pts. The services and experiences of a faculty who is designated to an administrative position like Vice-President, Dean, Director, etc., shall be credited only once, whichever is highest, within the period of his/her designation. 2.1 For every year of full-time academic……………………………… 1 service in a state institution of higher learning Academic service refers to teaching in college or doing research and extension functions. A year means at least 2 semesters. Full-time service means the official full-time equivalent load (FTEL) hours of actual teaching or its equivalent in other functions approved by the institution’s Board of Regents/Board of Trustees. State institution of higher learning refers to a chartered SUC, CHED-Supervised HEI or TESDA-Supervised TEI whose main function and responsibility is tertiary education and which offers degree programs. 2.2 For every year of full-time academic……………………………….0.75 service in an institution of higher learning other than SUCs, CHEDSupervised HEIs and TESDA-Supervised TEIs; service in a public or private research institution Academic service refers to teaching in the tertiary level in an institution of higher learning which is not a SUC, CHED-Supervised HEI or TESDA- Supervised TEI, or doing research on a professional level in a research institution.
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Manual on Position Classification and Compensation 2.3 For every year of administrative designation as: a. President…………………………………………………….…………..3.0 b. Vice-President………………………………………………………….2.5 c. Dean/Director/School Superintendent……………….………..2.0 d. Principal/Supervisor/Department……………..………….….….1.0 Chairperson/Head of Unit 2.4 For every year experience as: of full-time industrial/agricultural/teaching

a. Engineer, Plant/Farm Manager…………………………..……..1.5 b. Technician………………………………………………………..…….1.0 c. Skilled Worker…………………………………………………..…….0.5 2.5 For every year of experience as: a. Cooperating Teacher..………….…………………………………..1.5 b. Basic Education Teacher.….……………………………………….1.0 3. Professional Development Achievement and Honors………………...90 pts. 3.1 Innovations, patented inventions, publications and other creative works (maximum of 30 pts.) 3.1.1 For every cost and time-saving ……………………………1 to 7 innovation, patented invention and creative work as well as discovery of an educational, technical, scientific and/or cultural value Sub-categories under 3.1.1 are as follows: A. Inventions These are original patented (or must have patent pending) works which have direct contribution to education, science and technology. The basis for the weight is the patent score.

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Classification and Compensation Scheme for Faculty Positions Criteria 1. If patented Credits Multiply patent score by weight assigned according to criterion of utility Multiply patent by weight according to utility

2. If patent pending

Per invention or discovery the following additional criteria and point allocations are prescribed: Commercial utility on: • • • an international scale…………………………………………7 a national scale…………………………………………………5 institutional level ………………………………………………2

The accrediting bodies for these factors on the international and national scale are: • • Science and technology …….………………DOST Education.………………………………………..DECS/CHED/TESDA

For the institutional level, a University Committee shall be the accrediting body. The patent paper/document must be presented to ascertain patent score. Credit points are divided equally among 2 or more individuals claiming credit for the same invention. B. Discoveries A discovery must be the first of its kind or not of common knowledge. It shall be the result or product of the research of an individual or a group of faculty. Criteria 1. Originality, educational impact, documentation 2. Evidence of wide dissemination, e.g. exhibits, publications Credits 60% of 7 (0.6 x 7) 40% of 7 (0.4 x 7)

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Manual on Position Classification and Compensation Where there are more than one proponent, the points are to be divided equally among them. If only one factor, e.g., (1), is satisfied, credit is awarded only for that factor. C. Creative work has to satisfy one or more of the following criteria: 1. 2. 3. 4. Originality Acceptability and recognition Relevance and value Documentation and evidence of dissemination 25% 25% 25% 25% of of of of 1 1 1 1 – – – – 7 7 7 7 pts. pts. pts. pts.

3.1.2 For every published book, original, edited, or compiled, copyrighted/published within the last 10 years a. b. c. d. e. f. As As As As As As original author…….……………………………….3 - 7 co-author………….…………………………………2 - 5 reviewer.….…..………………………………….…1 - 4 translator.……………………………………………1 - 4 editor…….……………………………………………1 - 3 compiler………………………………………………1 - 2

The factors and their weights are: Textbooks, including Science and Technology and references
Role Single author Co-author Reviewer Translator Editor Compiler Tertiary 7 pts. 5 4 4 3 2 High School 5 pts. 3 2 2 2 1 Elementary 4 pts. 2 1 1 1 1

3.1.3 For every scholarly research/monograph/educational technical articles in a technical/scientific/professional journal a. International…………………………………………….5 b. National…………………………………………………..3 c. Local……………………………………………………….2

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Classification and Compensation Scheme for Faculty Positions 3.1.4 For every instructional manual/audio-visual developed and approved use…………………………………………..1-3 material for

Under this item are approved and published sets of complete modules, laboratory manuals, operation manuals, workbooks, teaching guides, including software, prototype and computer-aided instruction materials. Syllabi, flipcharts, compiled copies of machine-copied documents, mock-ups are not considered under this item. Those which can be credited are approved by the department or college for instructional purposes. Role Single author or maker Co-author, co-maker Credit Full Half

For credits to be granted, as sample of the material and a certification by the College/Department as to its usefulness and acceptability for instruction must be presented. 3.2 For expert services, training and active participation professional/technical activities (Maximum of 30 pts.) 3.2.1 Training and Seminars (Maximum of 10 pts.) 3.2.1.1 For every training course with a duration of at least one year (Pro-rated for less than a year and not to exceed 10 pts.) a. International…………………………………………..5 b. National………………………………………………….3 c. Local………………………………………………………2 3.2.1.2 3.2.1.3 For certified industrial, agro-industrial ….1/120h or fishery training (maximum of 5 pts.) For participation workshops in conferences, seminars, in

a. International…………………………………………..3 b. National………………………………………………….2 c. Local………………………………………………………1

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Manual on Position Classification and Compensation 3.2.2 Expert services rendered (Maximum of 20 pts.) 3.2.2.1 For serving as a short-term consultant/expert in an activity of an educational, technological, professional, scientific or cultural nature (foreign or local) sponsored by the government or other agencies a. International………………………………………… 5 b. National……………………………………………….. 3 c. Local……………………………………………………. 2 3.2.2.2 For services rendered as coordinator, lecturer, resource person or guest speaker in conferences, workshops, and/or training courses a. International…………………………………………. 5 b. National……………………………………………….. 3 c. Local……………………………………………………. 2 3.2.2.3 For expert services as adviser in doctoral dissertations, masteral and undergraduate theses (maximum of 10 pts.) a. Doctoral dissertation.……………………………1.00 b. Masteral thesis ……………………………………0.50 c. Undergraduate thesis..…………………………0.25 3.2.2.4 For certified services as reviewer/examiner in the Professional Regulations Commission (PRC) or in the Civil Service Commission…………………….…...1 For expert services in accreditation work as member of the Board of Directors, member of the Technical Committee or Consultant Group….…………….….1 For expert services in trade skill certification….1 For every year of service as coach/trainer in sports or adviser of student organization……....1

3.2.2.5

3.2.2.6 3.2.2.7

3.3 Membership in professional organizations/honor societies and honors received (maximum of 10 pts.)

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Classification and Compensation Scheme for Faculty Positions 3.3.1 For current individual membership in relevant professional organization(s) a. Learned Society Full member…………………………………………………. 2 Associate member………………………………………… 1 b. Honor Society……………………………………….……… 1 c. Scientific Society……………….………………………….. 1 d. Professional Officer……………………………… ………………………… 1 Member……………………………………………………….. 0.5 3.3.2 For undergraduate academic honors earned: Summa Cum Laude……………………………………………. Magna Cum Laude…………………………………………….. Cum Laude……………………………………………………….. 3.3.3 Scholarship/Fellowship degree granting. 5 3 1

This may be degree or non-

a. International, competitive Doctorate…….……………………………………………… Masteral……………………………………………………… Non-Degree………………………………………………… b. International, non-competitive Doctorate…….……………………………………………… Masteral……………………………………………………… Non-Degree………………………………………………… c. National/Regional, competitive Doctorate…….…………………………………………….. Masteral…………………………………………………….. Non-Degree……………………………………………….. d. National/Regional, non-competitive Doctorate…….……………………………………………. Masteral……………………………………………………. e. Local, competitive or non-competitive

5 4 3 3 2 2 3 2 1 2 1

3.4 Awards of distinction received in recognition of achievements in relevant areas of specialization/profession and/or assignment of the faculty concerned
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Manual on Position Classification and Compensation a. International……………………………………………………….. b. National/Regional..………………………………………………. c. Local……………………………………………………………….…. 3.5 Community outreach (maximum of 5 points) 3.5.1 For every year of participation in service-oriented projects in the community……………………………….. 3.6 Professional examinations 3.6.1 For every relevant licensure and other professional examinations passed (maximum of 10 pts.) a. Engineering, Accounting, Medicine, Law, Teacher’s Board, etc…………………………… b. Marine Board/Seaman Certificate; Master Electrician Certificate, Master Plumber Certificate, Plant Mechanic Certificate; Professional Radio Operator Certificate………………………………………………….. c. Other trade skill certificate…………………………. 5 1 5 3 2

2 1

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Chapter 8
Compensation Scheme for Foreign Service Personnel
In pursuance of an independent foreign policy, Republic Act (RA) No. 7157, “Philippine Foreign Service Act of 1991,” was enacted on September 19, 1991, to reorganize and strengthen the Philippine Foreign Service. One of its objectives is to provide suitable salaries, allowances and benefits that will attract personnel from all walks of Philippine life and to appoint persons to positions in the Foreign Service solely on the basis of merit and demonstrated capability in the promotion of national interests.

8.1 Coverage
The compensation scheme established under RA No. 7157 covers the following classes of positions under the Foreign Service Group: Classes Foreign Service Staff Employee III Foreign Service Staff Employee II Foreign Service Staff Employee I Foreign Service Staff Officer IV Foreign Service Staff Officer III Foreign Service Staff Officer II Foreign Service Staff Officer I Foreign Service Officer, Class IV Foreign Service Officer, Class III Foreign Service Officer, Class II Foreign Service Officer, Class I Counsellor Chief of Mission, Class II Chief of Mission, Class I Salary Grade 5 7 9 11 15 18 22 22 23 24 25 26 27 29

8.2 Designations When Assigned Abroad
When assigned abroad, Foreign Service Officers shall be commissioned as diplomatic or consular officers, or both. All official acts of these officers shall be performed under such commissions. Their diplomatic and consular titles, however, shall be coterminous with their assignments at the foreign posts. When in the foreign service, their designations are as follows: 8.2.1 A Chief of Mission shall be assigned as ambassador extraordinary and plenipotentiary to head a diplomatic mission or as deputy
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Manual on Position Classification and Compensation head of mission or as consul general to head a consular establishment. 8.2.2 A Counsellor (Career Minister) shall be assigned as career minister in a diplomatic mission, or as consul general to head a consular establishment. 8.2.3 A Foreign Service Officer, Class I, shall be assigned as first secretary in a diplomatic mission or consul in a consular establishment. 8.2.4 A Foreign Service Officer, Class II, shall be assigned as second secretary in a diplomatic mission or consul in a consular establishment. 8.2.5 A Foreign Service Officer, Class III, shall be assigned as third secretary in a diplomatic mission or vice-consul in a consular establishment. 8.2.6 A Foreign Service Officer, Class IV, shall be assigned as third secretary in a diplomatic mission or vice-consul in a consular establishment. In a diplomatic post where there is a consular section, Foreign Service Officers may be designated as both diplomatic and consular officers.

8.3 Designations When in the Home Office
When in the Home Office, Foreign Service Officers are designated as follows: 8.3.1 A Chief of Mission shall be designated as assistant secretary when assigned to head any of the principal offices of the Department of Foreign Affairs (DFA). 8.3.2 A Counsellor (Career Minister) may be designated as executive director of an office. 8.3.3 A Foreign Service Officer, Class I, may be designated as division director. 8.3.4 A Foreign Service Officer, Class II, Class III, or Class IV, may be designated as assistant division director.

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Compensation Scheme for Foreign Service Personnel 8.3.5 A Foreign Service Officer in any class, including chiefs of mission and career ministers, may be designated as special assistant to the Secretary or to the Undersecretary of Foreign Affairs. 8.3.6 A Foreign Service Officer below the rank of chief of mission may be designated as principal assistant in any office. Any assignment in the home office requiring a rank higher than the actual rank of the officer assigned shall be in an acting capacity.

8.4 System of Allowances
8.4.1 Allowances When Assigned Abroad Foreign Service personnel who are assigned in foreign posts are entitled to the following allowances as provided under RA No. 7157: 8.4.1.1 Overseas Allowance (OA) 8.4.1.1.1 Purpose of OA - It is granted to Foreign Service personnel who are citizens of the Philippines to adjust their take home pay taking into account the: • changes in the cost of living abroad which arise from changes in foreign currency conversion rates; differentials in the cost of living between the Philippines and foreign posts; and extraordinary and necessary expenses, not otherwise compensated for, which are incurred by officers or employees in the foreign posts.

8.4.1.1.2

Basic Annual Rates of OA - The basic annual rates of OA are indicated in Annex A of this Chapter. Indices for OA - The DFA indices for OA indicated in Annex B of this Chapter shall be

8.4.1.1.3

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Manual on Position Classification and Compensation used to compute the OA at the post of assignment. 8.4.1.1.4 OA for Husband and Wife - The husband and wife who are assigned in the same post shall be entitled to separate OA corresponding to each of their respective ranks. Conditions for Grant of OA - The grant of OA shall be in accordance with the provisions of Section 66 of RA No. 7157 and subject to the condition that nobody shall suffer a reduction as a result of the revision of the rates/indices. In case of reduction, the rates shall apply prospectively and the personnel concerned shall continue to receive their present OA for the duration of their tour of duty at the post. OA for Personnel Assigned at Hardship Posts - Personnel assigned in hardship posts, as may be determined by the DFA Secretary, shall receive an additional 5% increase in their OA to meet other expenses brought about by dangerous, unhealthy or excessively adverse living conditions prevailing at post, subject to the availability of funds. OA for Personnel on Temporary Assignment - Foreign service personnel assigned abroad, including chiefs of mission, who are detailed to another post shall, for the duration of the detail, be entitled to the OA based on the index of the post where they are temporarily assigned. Review and Adjustment of OA Rates - The basic annual rates of OA may be adjusted not oftener than once a year, as determined by the President, upon the recommendation of the Permanent Committee created under Section 67, RA No. 7157, consisting of the DFA Secretary, the Department of Budget
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8.4.1.1.5

8.4.1.1.6

8.4.1.1.7

8.4.1.1.8

Compensation Scheme for Foreign Service Personnel and Management Secretary and the Bangko Sentral ng Pilipinas Governor. 8.4.1.1.9 Index of Newly Opened Post - In the case of a newly opened foreign service post which index has not yet been fixed, the index of the nearest post in terms of economic conditions shall apply, pending Executive approval of an appropriate index for the new post.

8.4.1.2

Living Quarters Allowance (LQA) 8.4.1.2.1 Purpose of LQA - It is granted to foreign service personnel to enable them to rent and maintain quarters befitting their representative capacities. Basic Annual Rates of LQA - The basic annual rates of LQA which are commutable are as indicated in Annex A of this Chapter. Indices for LQA - The DFA indices for LQA indicated in Annex B of this Chapter shall be used to compute the LQA at the post of assignment. Conditions for Grant of LQA - The grant of LQA shall be in accordance with the provisions of Section 65 of RA No. 7157 and subject to the condition that nobody shall suffer a reduction as a result of the revision of the rates/indices. In case of reduction, the rates shall apply prospectively and the personnel concerned shall continue to receive their present LQA for the duration of their tour of duty at the post. Classification of Family Status - Payment of the LQA shall be based on the following classification of foreign service personnel: • With family – if living at the post of assignment with the spouse or at least one (1) qualified dependent child who has not reached 21 years of age
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8.4.1.2.2

8.4.1.2.3

8.4.1.2.4

8.4.1.2.5

Manual on Position Classification and Compensation • Without family – if single, widow, or widower, or legally separated, and living without dependent Unmarried children who are mentally or physically handicapped as attested to by a medical certificate, incapable of supporting themselves and living with the officer or employee abroad, shall be considered, for this purpose, regardless of age, as dependents. 8.4.1.2.6 Basis of Payment of LQA - Payment of the LQA shall be made strictly on the basis of actual status at post. However, those whose dependents have temporarily left their residences at the posts shall retain their “with family” status, provided that for the duration of their absences, the personnel concerned shall not move to cheaper or smaller lodgings; provided, further, that their absence at any one time shall not exceed beyond three (3) months; provided, finally, that the dependents have not established residences elsewhere. Gainful employment outside of post is an indication of having changed domicile. LQA of Husband and Wife - In the case of husband and wife who are both assigned in one (1) post, only the spouse with the higher rank shall be entitled to the LQA, and for purposes of family status under Item 8.4.1.2.5 hereof, the other spouse shall be considered as dependent. Joint Rental of Apartment or Housing Unit In case where, because of acute housing shortage, prohibitive rental cost or other circumstances, two (2) or more foreign service personnel are constrained to rent one (1) apartment or housing unit jointly, the claimants shall be entitled to their respective allowances, provided that the Head of Post shall certify in the claim
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8.4.1.2.7

8.4.1.2.8

Compensation Scheme for Foreign Service Personnel voucher that their individual allowances are insufficient to cover the rental of one (1) apartment or housing unit at the post. 8.4.1.2.9 Advance Payment of LQA - In posts where there is a standard practice among landlords to require advance rental or deposit equivalent to at least six (6) months to one (1) year rental of the unit, payment in advance of LQA sufficient to cover the required amount may be authorized, provided that the advance rental shall be paid directly to the landlord by the post; provided, further, that the claimant shall submit to the Home Office a copy of the pertinent contract of lease duly certified by the Head of Post which should invariably contain a diplomatic clause; provided that in case of recall, reassignment or for any other reason, the unexpired portion of the amount paid shall be duly refunded to the post, subject to the condition that in case of force majeure whereby the unexpired portion is not refunded, the claimant shall not be held accountable.

8.4.1.2.10 Payment of Key Money for Goodwill and Rental Through a Real Estate Agent – In places where the new lessees are invariably required at the outset to pay key money for goodwill and in places where lessees are required by the host government, or by customary business practice, to rent a house or apartment unit through an agent and pay the corresponding real estate agent’s fee or commission upon signing of the lease contract, payment of the above may be authorized chargeable against the account of the Department concerned, provided that the Head of Post shall certify in the pertinent cash voucher that such payments are required by the host government or customary at the post and not refunded by the owner to the lessee; provided further, that any key money and/or real estate agent’s fee or
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Manual on Position Classification and Compensation commission that may be required upon renewal of the lease contract shall likewise be chargeable against the account of the Department concerned. 8.4.1.2.11 Actual Rental – In lieu of commutable living quarters allowance, payment of actual rental of quarters occupied by the Head of Post may be authorized, subject to the availability of funds and as may be warranted by the housing situation in the post of assignment. Payment of the utilities shall be in accordance with regulations as may be prescribed by the DFA Secretary. 8.4.1.2.12 Index of Newly-Opened Post - In the case of a newly-opened foreign service post which index has not yet been fixed, the index of the nearest post in terms of economic conditions shall apply, pending approval of an appropriate index for the new post. 8.4.1.3 Post Allowance (PA) 8.4.1.3.1 Purpose of PA - It is granted to defray unusual expenses incident to the operation and maintenance of the official residence suitable for the chief of diplomatic mission or consular representative of the Philippines at the post. Allotment Fund for PA - An allotment fund may be made by the DFA Secretary to defray the unusual expenses incident to the operation and maintenance of an official residence suitable for the chief diplomatic or consular representative of the Philippines at the post. Payment of PA – The PA shall be granted at a per annum rate beginning on the first day of the month following arrival thereat. It shall be payable only when on duty status at his/her station.
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8.4.1.3.2

8.4.1.3.3

Compensation Scheme for Foreign Service Personnel 8.4.1.3.4 Duty Status - A Head of Mission or Principal Officer shall be considered on duty status even when on: • temporary duty outside the city or place where the officer maintains regular office but within the territorial limits of the officer’s diplomatic or consular jurisdiction temporary duty outside the diplomatic or consular jurisdiction for a consecutive period not exceeding 60 days; beyond 60 days, no allowance shall be paid except as specifically approved by the President; payment of PA to be resumed only on the date of the actual return to the territory within the officer’s diplomatic or consular jurisdiction leave of absence with pay, provided the leave is spent within the territorial jurisdiction of the post; no PA to be paid if the officer goes on leave with pay outside the territorial jurisdiction of the post

8.4.1.3.5

Territorial Limits - The territorial limits, in case of concurrent jurisdiction, shall extend to all countries or areas covered by the concurrent offices. No PA shall be paid if the officer lives in a hotel as residence. Entitlement to PA may be suspended due to insufficiency of funds.

8.4.1.3.6 8.4.1.3.7 8.4.1.4

Family Allowance (FA) 8.4.1.4.1 Purpose of FA - It is granted to assist foreign service personnel living with their families at the post of assignment in meeting the incremental expenses arising from foreign assignment, computed for the
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Manual on Position Classification and Compensation dependent spouse and for unmarried legal minor dependent children not exceeding three (3) in number. 8.4.1.4.2 Rates of FA – An officer or employee, other than an alien or casual/contractual employee, who is assigned abroad and whose family resides with the officer or employee at the post of assignment, shall be entitled to a commutable FA equivalent to: • • US$ 150 per month for the dependent spouse; and US$ 75 per month for each dependent child not exceeding three (3) in number.

8.4.1.4.3

Definition of Dependent Child - A dependent child shall mean legitimate, illegitimate, legitimated or legally adopted child who is not over 21 years, unmarried, not gainfully employed, and living with the officer or employee at the post of assignment. When Unmarried Children are Considered Dependents - Unmarried children who are mentally or physically handicapped as attested to by medical certificate, incapable of supporting themselves and living with the officer or employee abroad, shall be considered, for this purpose, regardless of age, as dependents. Dependents Not Living with Foreign Service Personnel - Subject to the prior approval of the Department head, full FA may be paid to any claimant whose dependent does not live with the officer or employee at the post of assignment under any of the following circumstances: • The officer or employee is compelled to live alone due to dangerous, notably unhealthy or excessively adverse living
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8.4.1.4.4

8.4.1.4.5

Compensation Scheme for Foreign Service Personnel conditions, or by other unavoidable circumstances like lack of appropriate, reasonable educational facilities for the officer’s or employee’s children; or • For the convenience of the Government, the officer or employee must live alone without any or all the members of the officer’s or employee’s family at the post of assignment.

All other meritorious cases may be considered by the Department head as the circumstances and the exigencies of the service may warrant. 8.4.1.5 Clothing Allowance (CA) 8.4.1.5.1 Purpose of CA - It covers the increased cost of clothing incurred in posts where the climate is different from that of the Philippines or where unusual circumstances exist. Rates of CA - The following are the rates for CA which shall be granted once every 12 months:
Rank Chiefs of Mission, Counsellors (Career Ministers) and those assigned as Principal Officers or Consuls General Foreign Service Officers including those assigned as Consuls or Acting Principal Officers Foreign Service Staff Officers and Employees Rates in US $ Tropical Temperate Zone Zone

8.4.1.5.2

$400

$500

$300

$400

$200

$250

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Manual on Position Classification and Compensation 8.4.1.5.3 Classification of Posts - The rates of payment of CA shall be in accordance with the following classification of posts: • The following posts are considered as falling under the temperate zone, having 4 distinct seasons, namely, summer, autumn, winter and spring:
Abu Dhabi Ankara Athens Baghdad Beijing Berne Bonn Brasilia Brussels Bucharest Budapest Buenos Aires Cairo Canberra Chicago Dhaka Doha Geneva Hamburg Hanoi Hongkong Islamabad Jeddah Kobe Kuwait London Los Angeles Madrid Manama Mexico City Milan Moscow Muscat New Delhi New York Ottawa Paris Pretoria Riyadh Rome San Francisco Santiago Seoul Stockholm Sydney Tehran Tel Aviv The Hague Tokyo Toronto Tripoli Vancouver Vatican City Vienna Washington, D.C. Wellington Xiamen

The following posts are considered as falling under the tropical zone:
Agana Bangkok Brunei Havana Honolulu Jakarta Phnom Penh Kuala Lumpur Port Moresby Lagos Saipan Manado Singapore Nairobi Yangon

8.4.1.6

Medical Allowance (MA) 8.4.1.6.1 Purpose of MA - It is intended to cover the cost of medical insurance in countries where medical care is unusually expensive, including cost of hospitalization and medical treatment of foreign service personnel and legal dependents living with the officer or employee at the post.
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Compensation Scheme for Foreign Service Personnel 8.4.1.6.2 Medical Insurance - Foreign service personnel may be required by the DFA to subscribe to a medical insurance scheme available in the host country. Twenty-five percent (25%) of the corresponding premiums shall be payable by the personnel concerned and 75% thereof shall be borne by the Government as its contribution. Hospitalization - In the event of illness or injury requiring hospitalization of a foreign service personnel, not as a result of vicious habits, intemperance or misconduct on his/her part, the Government shall reimburse the cost of medical expenses provided that no medical insurance scheme is available in the post of assignment. Medical Expenses - The medical expenses shall cover the cost of hospitalization and/or payment of the services of the attending physician, including travel expenses to and from the hospital or clinic, and such other incidental expenses as may be incurred in connection with such hospitalization treatment but not to exceed US$1,000. Legal Dependents - Only legal dependents living with the officer or employee at the post shall be entitled to the MA.

8.4.1.6.3

8.4.1.6.4

8.4.1.6.5

8.4.1.7

Representation Allowance (RA) 8.4.1.7.1 Purpose of RA - It is granted to chiefs of mission, special envoys, permanent delegates or representatives to international bodies, principal officers, and other ranking diplomatic officers, and ranking foreign service officers stationed abroad to enable such officers to uphold the prestige of the Republic of the Philippines, to represent the country with dignity and distinction, and to carry out their functions more effectively.
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Manual on Position Classification and Compensation 8.4.1.7.2 Uses of RA - RA shall be expended only for purposes which are of a public character, beneficial to the interests of the public service, and connected with the exercise of the functions of the Government in relation to the conduct of foreign affairs. They may be expended for necessary entertainment, charitable contributions, memorials, flowers, gifts, club initiation fees, membership dues, and the like. The office to whom the allowance is granted may disburse any portion of it to cover necessary entertainment by the officer’s subordinates to accomplish certain tasks assigned to them. Supporting Document - Expenses charged to RA must be supported by proper receipts or vouchers if the individual amount of expenditures exceeds US$50.00 or its equivalent. Where expenses are incurred for entertainment, the voucher must be accompanied by a statement of the officer concerned or by such proofs showing that the expenses have been made in the public interest. Special Entertainment - Should special entertaining be necessary because of formal visits of Philippine dignitaries travelling on diplomatic or special passports, the DFA Secretary shall be informed in advance thereof and specific requests for funds therefor shall be made. No such expenses shall be incurred without the prior authorization of the DFA Secretary. The annual RA rates are as follows: • High Cost Posts are posts which have overseas allowance index in the range of 90 and above

8.4.1.7.3

8.4.1.7.4

8.4.1.7.5

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Compensation Scheme for Foreign Service Personnel
Rank/Position Chief of Mission Representation Allowance US $ 6,000 4,500 3,600 2,700 1,800 1,800 1,440 1,440

(not Head of Post)
Counsellor (Career Minister) Foreign Service Officer, Class I Foreign Service Officer, Class II Foreign Service Officer, Class III Foreign Service Officer, Class IV Foreign Service Staff Officer I Others duly authorized by the Secretary

Medium Cost Posts are posts which have overseas allowance indices in the range of 80 to 89
Rank/Position Chief of Mission Representation Allowance US $ 3,600 3,600 2,880 2,160 1,440

(not Head of Post)
Counsellor (Career Minister) Foreign Service Officer, Class I Foreign Service Officer, Class II Foreign Service Officer, Class III

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Manual on Position Classification and Compensation
Rank/Position Foreign Service Officer, Class IV Foreign Service Staff Officer I Others duly authorized by the Secretary Representation Allowance 1,440 1,080 1,080

Low Cost Posts are posts which have overseas allowance indices in the range of 70 to 79
Rank/Position Chief of Mission Career Minister Foreign Service Officer, Class I Foreign Service Officer, Class II Foreign Service Officer, Class III Foreign Service Officer, Class IV Foreign Service Staff Officer I Others duly authorized by the Secretary Representation Allowance US $ 2,700 2,700 2,100 1,620 1,080 1,080 900 900

(not Head of Post)

8.4.1.8

Education Allowance (EA) 8.4.1.8.1 Purpose of EA - It is granted to compensate for additional cost incurred to educate legal dependents not exceeding 3 who are
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Compensation Scheme for Foreign Service Personnel enrolled in the primary, elementary and high school levels where free public education at the post is not provided for. 8.4.1.8.2 Actual Costs – The EA may be granted as reimbursement of actual costs, within such maximum amount as set by the DFA and DBM Secretaries, with the approval of the President, per school year for each child, subject to presentation of receipts and other evidences of payment of matriculation, tuition fees, books and other school fees.

8.5 Service Attachés
8.5.1 Assignment and Accreditation - The assignment and accreditation of personnel in any agency of the Government as service attachés to embassies or representatives to consulates shall have the prior clearance of the DFA Secretary who shall take into account the specific places where the services of these officers or employees from the other government agencies are needed, except Trade Attachés who shall be assigned and accredited only after consultation with the Department of Trade and Industry Secretary. 8.5.2 Appointments - The authority to appoint service attachés and representatives shall be vested in the Department Secretary sending them. An agency shall have only one (1) service attaché or representative accredited to one (1) post, except military and trade attachés. 8.5.3 Assimilated Ranks - The President shall determine, upon recommendation of the DFA Secretary, the assimilated ranks of service attachés for purposes of compensation. 8.5.3.1 As a general rule and except as the President may appoint, no officer of the Philippine Government outside of the DFA shall be assigned an assimilated rank higher than Foreign Service Officer, Class I. The assimilated ranks shall not confer diplomatic rankings for purposes of protocol.

8.5.3.2

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Manual on Position Classification and Compensation The assimilated ranks of military and civilian attachés from the Department of National Defense, Department of Trade and Industry, Department of Tourism, Department of Finance and Department of Agriculture are indicated in Annex C of this Chapter.

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Compensation Scheme for Foreign Service Personnel Annex A Table of Annual Rates for Overseas and Living Quarters Allowances for Foreign Service Personnel (in US $) Living Quarters (LQA) Rank/Position Overseas Allowance (OA) 69,599 60,521 52,626 45,762 41,601 37,819 34,382 With Family Without Family

Chief of Mission Head of Diplomatic Mission Others, including Consul General Counsellor (Career Minister) Foreign Service Officer, Class I Foreign Service Officer, Class II Foreign Service Officer, Class III Foreign Service Officer, Class IV 42,871 35,723 31,064 28,244 25,674 23,341 21,218 35,041 29,199 25,394 23,080 20,986 19,079 17,342

Foreign Service Staff Officer I Foreign Service Staff Officer II Foreign Service Staff Officer III Foreign Service Staff Officer IV

34,382 32,744 31,185 29,700

21,218 19,288 18,371 17,496

17,342 16,518 15,731 14,980

Foreign Service Staff Employee I Foreign Service Staff Employee II Foreign Service Staff Employee III

27,000 25,714 24,490

15,868 15,868 15,868

13,588 13,588 13,588

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Manual on Position Classification and Compensation Annex B Table of Indices for Overseas and Living Quarters Allowances for Foreign Service Personnel OA in % 86 93 100 77 86 89 84 75 77 94 89 90 98 107 93 82 94 81 92 82 76 90 82 100 77 91 77 89 79 86 95 107 89 92 79 85 96 LQA in % 100 90 100 100 110 130 100 95 95 130 95 125 130 130 130 110 130 130 130 90 95 97 115 100 70 100 65 100 100 100 130 130 100 130 70 100 130 OA in % 94 70 91 90 85 96 93 95 81 78 79 100 100 128 105 91 98 75 86 88 90 92 83 86 96 86 100 100 82 100 107 89 80 99 90 83 90 LQA in % 130 70 100 100 115 130 100 130 100 90 70 100 100 150 130 102 130 90 100 115 130 100 100 100 130 100 100 100 90 100 125 100 100 130 100 95 125
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Post Abu Dhabi Abuja Agana Amman Ankara Athens Baghdad Bandar Seri Begawan Bangkok Barcelona Beijing Beirut Berlin Berne Bonn Brasilia Brussels Bucharest Budapest Buenos Aires Cairo Canberra Caracas Chicago Colombo Dakar Dhaka Dili Doha Dubai Dublin Geneva Guangzhou Hamburg Hanoi Havana Holy See

Post Madrid Manado Manama Melbourne Mexico City Milan Montreal Moscow Muscat Nairobi New Delhi New Orleans New York Osaka Oslo Ottawa Paris Phnom Penh Pohnpei Port Moresby Prague Pretoria Rabat Riyadh Rome Saipan San Diego San Francisco Santiago Seattle Seoul Shanghai Singapore Stockholm Sydney Tehran Tel-Aviv

Compensation Scheme for Foreign Service Personnel OA in % 100 100 100 80 81 86 86 75 81 93 78 87 100 100 LQA in % 115 110 100 70 95 100 100 90 100 100 90 130 130 100 OA in % 93 128 93 82 91 96 96 80 85 100 90 91 89 83 LQA in % 130 150 102 100 102 130 130 70 130 100 115 100 95 70

Post Hongkong SAR Honolulu Houston Islamabad Jakarta Jeddah Koror Kuala Lumpur Kuwait City Libreville Lima Lisbon London Los Angeles

Post The Hague Tokyo Toronto Tripoli Vancouver Holy See Vienna Vientiane Warsaw Washington, D.C. Wellington Winnipeg Xiamen Yangon

Note: The reference post for the annual rates for OA and LQA (at 100%) is New York City. Sample Computation of OA and LQA Given: Employee A, married with one dependent child, holding the position of Foreign Service Staff Officer I and posted in Geneva OA = US $ 34,382 LQA = US $ 21,218 Required: Annual proportionate OA and LQA while in Geneva OA OA OA = US $ 34,382 for the reference post = (US $ 34,382) (1.07) = US $ 36,788.74 x 130% for Geneva ---------------------------------100% for the reference post x 107% for Geneva ---------------------------------100% for the reference post

LQA = US $ 21,218 for the reference post LQA = (US $ 21,218) (1.30) LQA = US $ 27,583.40

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Manual on Position Classification and Compensation Annex C Assimilated Ranks of Military and Civilian Attachés, Representatives and Other Personnel of the Philippine Government Stationed Abroad

Department

Position/Designation

Assimilated Rank Counsellor Foreign Service Officer, Class I Foreign Service Officer, Class II Foreign Service Officer, Class III Foreign Service Officer, Class IV Foreign Service Officer, Class IV Counsellor Foreign Service Officer, Class I Foreign Service Officer, Class II Foreign Staff Officer, Class III Foreign Service Officer, Class IV Foreign Service Staff Officer II

(a) Department of National Brigadier General Defense Colonel/Navy Capatain Lieutenant Colonel/ Major/Lieutenant Commander/Commander Captain/Lieutenant Senior Grade First Lieutenant/Lieutenant Junior Grade Second Lieutenant/Ensign (b) Department of Trade and Industry Special Trade Representative Foreign Trade Service Officer I Foreign Trade Service Officer II Foreign Trade Service Officer III Foreign Trade Service Officer IV Foreign Trade Service Staff Officer

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Compensation Scheme for Foreign Service Personnel Department (c) Position/Designation Assimilated Rank Foreign Service Officer, Class I Foreign Service Officer, Class II Foreign Service Staff Officer IV

Department of Tourism Tourism Attaché Public Relations Officer IV Administrative Assistant

Tourism Promotion Assistant Foreign Service Staff Officer III Regional Convention Coordinator Convention Service Officer Senior Market Assistant Administrative Assistant II (d) Department of Finance Finance Attaché Revenue Attaché Assistant Revenue Attaché (e) Department of Labor and Employment Labor Attaché II Labor Attaché I Overseas Worker Welfare Officer IV Overseas Worker Welfare Foreign Service Officer, Class I Foreign Service Officer, Class II Foreign Service Staff Officer IV Foreign Service Staff Officer III Foreign Service Officer, Class I Foreign Service Officer, Class I Foreign Service Officer, Class II Foreign Service Officer, Class I Foreign Service Officer, Class II Foreign Service Officer, Class III Foreign Service Staff
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Manual on Position Classification and Compensation Department Position/Designation Officer III (Center Coordinator) (f) Department of Agriculture Agricultural Attaché Agricultural Analyst
Note: The allowances/benefits of incumbents of the positions from the above-listed Departments while stationed abroad are computed in the same manner as those of foreign service personnel of the DFA, based on the assimilated ranks.

Assimilated Rank Officer I Foreign Service Officer, Class I Foreign Service Officer, Class III

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Chapter 9
Position Classification and Compensation Scheme in Local Government Units
9.1 Historical Background
9.1.1 Before Presidential Decree (PD) No. 1136 Local governments are political units composed of provinces, cities, municipalities and barangays. They have long been existing with their own legislative bodies which are endowed with specific powers as defined in the Revised Administrative Code and individual local government unit (LGU) charters. These local legislative bodies were then called provincial boards in the case of provinces, city councils in cities and municipal councils in municipalities. These local legislative bodies were vested with the power to determine the number of employees that each office should have and to fix their salary rates as agreed upon by the majority. In exercising such power, however, there were no specific guidelines nor definite standards used in the creation of positions and the fixing of salaries. Position titles were not descriptive nor reflective of the duties and responsibilities of the positions and salaries were fixed arbitrarily. For local officials, however, laws such as Republic Act (RA) No. 268 as amended, and RA No. 4477 were passed by Congress fixing the salaries of municipal, provincial and city officials. These salary laws created a wide gap between the salaries of rank-and-file employees and the officials. 9.1.2 PD No. 1136 Cognizant of the need for a more effective local government personnel administration, PD No. 1136, “The Local Government Personnel Administration and Compensation Plans Decree of 1977,” was promulgated on May 5, 1977. Its salient features are as follows: 9.1.2.1 The creation of the Joint Commission on Local Government Personnel Administration (JCLGPA) to formulate policies on local government personnel administration, position classification and pay administration; and to implement the provisions of PD No. 1136;

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Manual on Position Classification and Compensation 9.1.2.2 The adoption by LGUs of rational personnel policy and position classification and compensation plans, based on the principle of equal pay for substantially equal work, and to recognize differences in pay arising from substantive differences in duties and responsibilities and qualification requirements; and The maximum salary rates for provincial, city and municipal officials by equating them to CESO ranks.

9.1.2.3

9.1.3 RA No. 6758 In pursuance of the Constitutional mandate for the adoption of a unified Position Classification and Compensation System (PCCS) in the government, RA No. 6758, the “Compensation and Position Classification Act of 1989” popularly known as the “Salary Standardization Law,” includes LGUs under its coverage. Section 10, RA No. 6758, provides that the rates of pay shall be determined on the basis of the class and financial capability of each LGU. Such rates of pay shall not exceed the following percentages of the rates of the salary schedule prescribed under Section 7 of the Act:
For Provinces/Cities Special Cities 1st Class 2nd Class 3rd Class 4th Class 5th Class 6th Class 100% 100% 95% 90% 85% 80% 75% For Municipalities 90% 85% 80% 75% 70% 65%

9.1.4 RA No. 7160 To enable LGUs to attain their fullest development as self-reliant entities and make them more effective partners in the attainment of national goals, RA No. 7160, the “Local Government Code of 1991,” was enacted. The pertinent provisions of the Code are as follows: 9.1.4.1 The personnel, records, equipment and other assets of the abolished JCLGPA shall be transferred to the appropriate office in the Civil Service Commission (CSC).
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Position Classification and Compensation Scheme In LGUs 9.1.4.2 Every LGU shall design and implement its own organizational structure and staffing pattern taking into consideration its service requirements and financial capability, but subject to the minimum standards and guidelines prescribed by the CSC. Pursuant to Section 81, RA No. 7160, the compensation of local government officials and employees shall be determined by the sanggunian concerned provided that: 9.1.4.3.1 The increase in compensation of elective local government officials shall take effect only after the terms of office of those approving such increase shall have expired; The increase in compensation of the appointive officials and employees shall take effect as provided in the ordinance authorizing such increase; Said increase shall not exceed the percentage limitation for personal services; and Such compensation may be based upon the pertinent provisions of RA No. 6758.

9.1.4.3

9.1.4.3.2

9.1.4.3.3

9.1.4.3.4 9.1.4.4

The local sanggunian is empowered to determine the positions, salaries and wages, allowances and other benefits of officials and employees paid wholly or mainly from local government funds. If the finances of LGUs allow, the local sanggunian may provide for additional allowances and other benefits to judges, prosecutors, public elementary and high school teachers and other national government officials stationed in or assigned in LGUs.

9.1.4.5

9.1.5 Administrative Order (AO) No. 42 9.1.5.1 Realizing the need to address issues on position classification and compensation in LGUs in view of the provisions of RA No. 7160, and to effectively enforce the provisions of the Constitution and fully rationalize the standardization of compensation in the government particularly in LGUs, AO No. 42 was issued
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Manual on Position Classification and Compensation by the President on March 3, 1993, to reiterate the provision of RA No. 6758 that the Department of Budget and Management (DBM) shall be the Administrator of the unified Position Classification and Compensation System of the government and as such shall undertake the following: 9.1.5.1.1 Provide guidelines on the classification of local government positions and on the specific rates of pay therefor; Provide criteria and guidelines for the grant of all allowances and additional forms of compensation to local government employees; Advise and assist LGUs on matters of position classification and compensation of local government personnel; and Provide technical expertise in the training of local government personnel to enable them to administer and maintain the compensation and position classification system.

9.1.5.1.2

9.1.5.1.3

9.1.5.1.4

9.1.5.2

The issuance of this clarificatory order was anchored on the following: 9.1.5.2.1 The abolition of the JCLGPA pursuant to Section 77, RA No. 7160, and the transfer of all its personnel, records, equipment and other assets to the CSC; The inability of RA No. 7160 to specifically provide for the transfer of the respective functions of the member agencies of the JCLGPA; Section 325 (b) of RA No. 7160 states that: "No official or employee shall be entitled to a salary rate higher than the maximum fixed for his position or other positions of equivalent rank by applicable laws, rules and regulations issued thereunder;

9.1.5.2.2

9.1.5.2.3

9-4

Position Classification and Compensation Scheme In LGUs 9.1.5.2.4 The only applicable law that governs the Compensation and Position Classification System in the government is RA No. 6758 which is administered by the DBM as mandated; and The Compensation and Position Classification System established in pursuance of the Constitutional mandate covers all national and local government positions, appointive or elective, on full-time or part-time basis now existing or hereafter created.

9.1.5.2.5

9.1.6 Joint Senate and House of Representatives Resolution No. 01, Adopted on March 3, 1994 Under said Joint Resolution approved by the President on March 7, 1994, LGUs other than special and 1st class cities and provinces may adopt the salary schedules for higher class LGUs, provided that the salary schedules adopted shall be uniformly applied to all positions in the said LGUs, subject to certain conditions.

9.2 The Position Classification Scheme for LGUs
Like the positions in the national government covered by RA No. 6758, positions in LGUs are classified based on duties and responsibilities and the pertinent rules, regulations and procedures on position classification provided under Chapter 2 of this Manual. 9.2.1 Position Classification Guide – In classifying positions, LGUs shall be guided by the following: 9.2.1.1 Index of Occupational Services, Position Titles, and Salary Grades (IOS) in the Local Government – This is a document listing the different occupational services, occupational groups, series of classes and classes of positions existing in LGUs. It also shows the salary grade assignment of each class of positions. Class Specification – This is a detailed description of a class of positions. It serves as standard or guide for allocating positions to their proper classes. A more detailed discussion on class specifications is found in Chapter 2 of this Manual.
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9.2.1.2

Manual on Position Classification and Compensation 9.2.1.3 Salary Grade Allocation of Elective Officials - RA Nos. 6758 and 7160 and their implementing rules and regulations provide the salary grade allocations of elective officials in LGUs that correspond to specific salary rates in the salary schedules prescribed for LGUs. 9.2.1.3.1 Elective Officials of Provinces
Position Provincial Governor Provincial Vice-Governor Sangguniang Panlalawigan Member Salary Grade 30 28 27

9.2.1.3.2

Elective Officials of Cities Special Cities (Manila and Quezon City) and Highly Urbanized Cities
Position City Mayor City Vice Mayor II Sangguniang Panlungsod Member II Salary Grade 30 28 27

Component Cities
Position City Mayor City Vice Mayor I Sangguniang Panlungsod Member I Salary Grade 30 26 25

9.2.1.3.3

Elective Officials of Municipalities • Within Metropolitan Manila

9-6

Position Classification and Compensation Scheme In LGUs
Position Municipal Mayor II Municipal Vice Mayor II Sangguniang Bayan Member II Salary Grade 28 26 25

Outside Metropolitan Manila
Position Salary Grade 27 25 24

Municipal Mayor I Municipal Vice Mayor I Sangguniang Bayan Member I

9.2.1.4

Salary Grade Allocation of Appointive Officials – RA No. 6758 and its implementing rules and regulations provide the salary grade allocation of appointive officials in LGUs that corresponds to a specific salary rate in the salary schedule prescribed for LGUs. 9.2.1.4.1 Appointive Officials of Provinces
Position Provincial Government Department Head Provincial Government Department Head Assistant Salary Grade 26 24

9.2.1.4.2

Appointive Officials of Cities • Special Cities (Manila and Quezon City)
Position City Government Department Head III City Government Office Head Salary Grade 27 26

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Manual on Position Classification and Compensation
City Government Assistant Department Head III 25

Highly Urbanized Metropolitan Manila Cities
Position

Cities/Other

Salary Grade 26 24

City Government Department Head II City Government Assistant Department Head II

Component Cities
Position Salary Grade 25 23

City Government Department Head I City Government Assistant Department Head I

9.2.1.4.3

Appointive Officials of Municipalities • Within Metropolitan Manila
Position Municipal Government Department Head II Municipal Government Department Head II Assistant Salary Grade 25 23

Outside Metropolitan Manila
Position Salary Grade 24 22

Municipal Government Department Head I Municipal Government Department Head I Assistant

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Position Classification and Compensation Scheme In LGUs 9.2.1.5 Other Positions – The highest position below the rank of an assistant department head may be allocated in accordance with the following standard leveling of positions based on the level and income class of the LGU:
Local Government Unit Provinces Special Cities Highly Urbanized Cities Component Cities 1st to 3rd Class Municipalities 4th to 6th Class Municipalities Highest Positions Below the Assistant Department Heads SG-22, examples: Licensing Officer IV, Project Development Officer IV SG-24, examples: Licensing Officer V, Project Development Officer V SG-22, examples: Licensing Officer IV, Project Development Officer IV SG-22, examples: Licensing Officer IV, Project Development Officer IV SG-18 to 19, examples: Licensing Officer III, SG-18, and Engineer III, SG-19 SG-14 to 16, examples: Registration Officer II, SG-14, Project Development Officer II, SG-15, and Dentist II, SG-16

N.B. The position titles of the positions below the Assistant Department Heads must be in accordance with the Index of Occupational Services, Position Titles and Salary Grades (IOS) in the Local Government issued under Local Budget Circular No. 61 dated March 18, 1996. 9.2.1.6 Other Positions Assigned to LGU Officials – The classification of Private Secretary, Executive Assistant and Driver positions is dependent on the level/rank of the position they serve. Per established standards, the allowable level of these positions for the said officials are as follows:

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Manual on Position Classification and Compensation
Local Executive Private Secretary Executive Assistant Driver

Provincial Governor Provincial ViceGovernor City Mayor City Vice Mayor Municipal Mayor Municipal Vice Mayor

Private Secretary II, SG-15 Private Secretary I, SG-11 Private Secretary II, SG-15 Private Secretary I, SG-11 Private Secretary II, SG-15 Private Secretary I, SG-11

Executive Assistant IV, SG-22 Executive Assistant II, SG-17 Executive Assistant IV, SG-22 Executive Assistant II, SG-17 Executive Assistant II, SG-17 Executive Assistant I, SG-14

Driver II, SG-4 Driver I, SG-3 Driver II, SG-4 Driver I, SG-3 Driver II, SG-4 Driver I, SG-3

Pursuant to Budget Circular No. 2004-3, dated March 6, 2004, however, the following positions were retitled as follows:
From Private Secretary I, SG-11 Private Secretary II, SG-15 Driver I, SG-3 Driver II, SG-4 To Administrative Assistant V, SG-11 Senior Administrative Assistant III, SG-15 Administrative Aide III, SG-3 Administrative Aide IV, SG-4

9.2.1.7

Heads of Administrative/Support Units – Generally, there shall be only one (1) administrative unit in a LGU and this is placed under the Office of the Local Chief Executive. If found necessary, administrative support units in other departments of the LGU may be allowed. The head of these satellite units should be classified one (1) rank lower than the head of the administrative mother unit. Municipal Health Officers (MHOs) and Rural Health Physicians (RHPs) – The MHO as a mandatory position is the municipal department head in charge of formulating and implementing the health and medical programs for the whole municipality. It assumes supervision, coordination and monitoring of rural health
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9.2.1.8

Position Classification and Compensation Scheme In LGUs units (RHUs) within the municipality. The RHP is ordinarily in charge of a small medical team of health service personnel assigned in a RHU which renders preventive and medical services in specific area of assignment within the municipality, usually consisting of at least one (1) barangay. Notwithstanding that the RHP pursuant to RA No. 7305 is given the same salary grade as the MHO, the MHO has ascendancy over the RHP in the hierarchical ranking of positions in LGUs. 9.2.1.9 Changes in Nomenclature of Positions - In line with Section 325 (f) of RA No. 7160, changes in designation or nomenclature of positions resulting in promotion or demotion in ranks or increase or decrease in compensation shall not be allowed, except when the positions are actually vacant.

9.2.2 Creation of New Positions/Offices Creation of new positions in LGUs may be allowed subject to the following conditions that: 9.2.2.1 9.2.2.2 9.2.2.3 All the mandatory positions listed under RA No. 7160 have been created and provided for; The Salary Standardization implemented; Law has been fully

The absorption of national government personnel by LGUs on account of the devolution of functions has been fully effected; The general limitations on expenditures are not exceeded; personal services

9.2.2.4 9.2.2.5

The classification of the positions should be consistent with the standards and implementing rules and regulations of RA No. 6758; The creation of new positions or offices is subject to the conditions prescribed under Civil Service Commission Memorandum Circular No. 19, s. 1992; and The classification of the heads of new offices shall be dependent on the level of the organizational structure of the new offices. If the new office is considered a department, the head shall be classified as Department
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9.2.2.6

9.2.2.7

Manual on Position Classification and Compensation Head. If lower than a department but higher than a division, the head shall be classified as Assistant Department Head. 9.2.3 Creation of a New Class of Positions – A proposal to create a new class of positions not found in the IOS for Local Government shall be submitted to the DBM for approval together with the following documents/information: 9.2.3.1 9.2.3.2 9.2.3.3 Justification for the creation of the new class; Duly accomplished Position Description Form; and Structural, functional and position charts.

9.3 The Compensation Scheme for LGUs
9.3.1 Basic Salaries The salary rates of positions in LGUs shall be based on their income classifications as determined by the Department of Finance (DOF), and their financial capabilities. These rates shall conform with the percentages of the rates in the Salary Schedule prescribed for national government personnel pursuant to Section 7, RA No. 6758, and are indicated in item 9.1.3 of this Chapter. 9.3.1.1 Salary Schedule (SS) - The SS consists of 30 salary grades for provinces and cities and 27 for municipalities. Each salary grade in the SS has 8 salary steps to provide for the hiring rate and incentive for length of service in the position. There are 8 salary schedules for LGUs with each salary schedule corresponding to a specific income class of a LGU. A - Special Cities and First Class Provinces and Cities B - Second Class Provinces and Cities C - Third Class Provinces and Cities and First Class Municipalities D - Fourth Class Provinces and Cities and Second Class Municipalities E - Fifth Class Provinces and Cities and Third Class Municipalities F - Sixth Class Provinces and Cities and Fourth Class Municipalities
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Position Classification and Compensation Scheme In LGUs G - Fifth Class Municipalities H - Sixth Class Municipalities 9.3.2 Adoption of Higher Salary Schedule To minimize disparity in pay between the devolved personnel of national government agencies and the organic personnel of the LGU and pursuant to Joint Senate and House of Representatives Resolution No. 1, s. 1994, LGUs lower than Special Cities and First Class Provinces and Cities may adopt the salary schedule for higher class LGUs. 9.3.2.1 The following conditions/limitations shall be observed in adopting a higher salary schedule: 9.3.2.1.1 That the LGU must first implement fully the prescribed salary schedule for its income class and assure sustainability before it can exercise the option to adopt a higher salary schedule; That the LGU is financially capable; That the salary schedule to be adopted shall be uniformly applied to all positions in the LGU concerned; That the salary grade allocation of positions and the salary steps of personnel shall be retained; That the difference arising from the adoption of the higher salary schedule shall be subject to the budgetary and general limitations on personal services expenditures mandated under Sections 324 and 325 of RA No. 7160 as implemented by Local Budget Circular (LBC) No. 75 dated July 12, 2002;

9.3.2.1.2 9.3.2.1.3

9.3.2.1.4

9.3.2.1.5

9.3.2.1.6 That in the case of component cities and municipalities, the salary schedule to be adopted shall not be higher than that of the province where they belong;

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Manual on Position Classification and Compensation 9.3.2.1.7 That the adoption of a higher salary schedule shall not in any manner alter the existing income classification of the LGU concerned; and 9.3.2.1.8 That the following mandatories or activities have been fully provided for: • • • • • Statutory and contractual obligations of the LGU; Continued 6758; implementation of RA No.

Creation of mandatory positions; Absorption of devolved positions; and Payment of the Magna Carta benefits of public health workers pursuant to the provisions of RA No. 7305.

9.3.2.2

A LGU which has adopted a higher salary schedule as authorized and which cannot afford to sustain such schedule, may revert to the prescribed or lower salary schedule. For instance, a municipal government of a 4th class municipality which adopted the salary schedule for a 1st class municipality may revert to the salary schedule for a 2nd class municipality. To maintain the integrity and consistency of the Pay Plan the following rules shall apply in reverting to the prescribed/lower salary schedule: 9.3.2.2.1 No personnel whose salaries have been adjusted based on the higher salary schedule shall suffer diminution in pay as a result thereof. For new hirees/appointees, their salaries shall be at the hiring rates of their positions based on the prescribed/lower salary schedule.

9.3.2.2.2

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Position Classification and Compensation Scheme In LGUs 9.3.3 Step Increments The rules and regulations on step increments as discussed under Chapter 3 of this Manual also apply to LGUs. However, in case a LGU reverts to the prescribed or lower salary schedule, the following rules on step increment shall be observed: 9.3.3.1 Notwithstanding the actual salary rate of the employee based on the higher salary schedule, his/her step increment after reversion to the prescribed or lower salary schedule shall be based on the years of service in the position. Thus, an employee with 6 years of service in the position shall be at the third step regardless of his/her higher salary rate. To illustrate: A Planning Officer I, SG-11, with six years of service in the position in a municipal government of a 4th class municipality which adopted the salary schedule for a 1st class municipality later reverted to the salary schedule for a 2nd class municipality: 4 Class P8,301 3rd step
th

Adopted 1 Class P9,961 3rd step

st

Reverted to 2nd Class P9,961 * 3rd step

* same salary rate due to “no diminution in pay policy” Upon serving 9 years in the position, he/she will be entitled to the salary corresponding to the 4th step, but will not receive any adjustment in pay since his/her actual salary is still higher than the 4th step. This shall continue until such time that his/her salary rate equalizes the prescribed rate for his/her step in the salary schedule being implemented by the LGU. This rule is also applicable to municipalities converted to cities with lower salary schedules. 9.3.4 Other Compensation, Allowances and Benefits The following other compensation, allowances and benefits authorized for national government personnel are likewise granted to local government personnel subject to the criteria, rules and regulations issued for the purpose as discussed under Chapter 3 of this Manual and to the additional rules applicable only to LGUs:
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Manual on Position Classification and Compensation 9.3.4.1 Representation and Transportation Allowances 9.3.4.1.1 The following LGU officials are entitled to representation and transportation allowances (RATA) based on the rates and conditions indicated in the annual General Appropriations Act (GAA): • • • • • • Provincial Governors and City/Municipal Mayors; Provincial Vice-Governors, City/Municipal Vice Mayors; Members of the Sangguniang Panlalawigan/ Panlungsod/ Bayan; Local Government Department Heads and their equivalents; Local Government Assistant Department Heads and their equivalents; and Division Chiefs (for Special Cities only).

The equivalent ranks of LGU officials to national government officials entitled to RATA under the GAA are indicated in Annex A of this Chapter. The maximum rates for each type of allowance shall be based on the percentage application of the RATA rates for national government officials indicated in Annex A. 9.3.4.1.2 RATA for Personnel Devolved to LGUs Pursuant to RA No. 7160 • Municipal Agricultural Officers (MAOs) ♣ The MAO position is not entitled to RATA since it is neither a Department Head nor an Assistant Department Head. However, in line with the no-diminution-in-pay provision of Executive Order (EO)
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Position Classification and Compensation Scheme In LGUs No. 503 dated January 22, 1992, the devolved MAOs shall continue to receive the total monthly RATA in the amount of P2,200 they have been receiving as of the devolution. ♣ A devolved MAO appointed to the optional local position of Municipal Agriculturist (MA) shall be entitled to the RATA for a Department Head or Assistant Department Head as the case may be in a particular LGU. ♣ A new appointee to the MAO psition shall no longer be entitled to RATA. • Social Welfare Officers (SWOs) ♣ The devolved SWOs in municipalities are not entitled to RATA. However, when the devolved SWO is appointed to the optional local position of Municipal Social Welfare and Development Officer (MSWDO), he/she shall be entitled to the RATA for a Department Head or Assistant Department Head as the case may be in a particular LGU. • Rural Health Physicians (RHPs) ♣ RHPs, whether devolved or appointed, shall be entitled to monthly RATA of P2,200 pursuant to RA No. 7305 or the Magna Carta of Public Health Workers. ♣ A RHP who is appointed to the mandatory department head position of Municipal Health Officer (MHO) is entitled to the RATA for a
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Manual on Position Classification and Compensation Department Head in a particular LGU. 9.3.4.2 Personnel Economic Relief Allowance 9.3.4.2.1 The rates of Personnel Economic Relief Allowance (PERA) for all appointive LGU personnel under permanent, temporary, contractual, casual, substitute or emergency status, shall be a percentage of the PERA at P500 per month based on the income classification of the LGU, as follows:
Class Special Cities 1st Class 2nd Class 3rd Class 4th Class 5th Class 6th Class Provinces/Cities 100% 100% 90% 90% 80% 80% 80% Municipalities 90% 80% 80% 70% 70% 70%

9.3.4.2.2

In the event that a LGU has no sufficient fund for the purpose, the grant of the same may be partial but uniform for all positions in the LGU. However, LGUs which can afford to pay higher than the rates authorized in the above schedule for their particular income classes are allowed to do so, at rates uniformly applied to all their respective personnel, but not exceeding P500 per month. Elective officials are not granted the PERA since they are not among those covered by the grant thereof pursuant to the pertinent general provision in the annual General Appropriations Act.

9.3.4.2.3

9.3.4.2.4

9.3.4.3

Additional Compensation 9.3.4.3.1 The rules and regulations relative to the grant of additional compensation (ADCOM) at P1,500 per month to national government personnel provided under
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Position Classification and Compensation Scheme In LGUs Chapter 3 of this Manual likewise apply to LGU personnel. 9.3.4.3.2 9.3.4.3.3 9.3.4.3.4 The grant of ADCOM covers all officials and employees of LGUs. Payment thereof is subject to availability of local government funds. In the event that a LGU has no sufficient fund for the purpose, the grant of the same maybe partial but uniform for all positions in the LGU.

9.3.4.4

Year-End Bonus and Cash Gift The rules and regulations on the grant of the year-end bonus and cash gift to national government personnel under Chapter 3 of this Manual are also applicable to salaried local government personnel. Item 3.9.6.3.7 of said Chapter also provides the rules and regulations on the grant of cash gifts to barangay officials who are paid honoraria.

9.3.4.5

Honoraria 9.3.4.5.1 Honoraria for Barangay Volunteer Frontline Workers The rules and regulations on the grant of honoraria to Barangay Frontline Workers are as follows: • The honoraria for Day Care Workers shall not exceed the minimum salary rate of SG-6 of the salary schedule being implemented by the LGU concerned. The honoraria for Barangay Health Aides/Workers (including Barangay Nutrition Scholars, Barangay Health Workers and other volunteer workers of similar nature) shall not exceed the minimum salary rate of SG-4 of the
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Manual on Position Classification and Compensation salary schedule being implemented by the LGU concerned. • A Barangay Health Worker who simultaneously serves as a Barangay Nutrition Scholar may be granted the honorarium as Barangay Health Worker or as Barangay Nutrition Scholar which is more advantageous to him/her, but not to both honoraria. The grant of honoraria shall be subject to the following conditions: ♣ That the volunteer worker is actively performing his/her functions relative to the implementation of assigned programs and projects in the barangay; ♣ That the volunteer worker concerned has undergone the necessary skills and capability training which is duly recognized by appropriate authority or body either in the national or local level; ♣ That the grant of honoraria shall be charged against barangay funds. However, this does not preclude higher local governments to undertake projects in the barangay which may include payment of honoraria to its volunteer workers charged from their funds; ♣ That the amount of honoraria shall not equal nor exceed those received by the barangay officials. In case these officials are receiving the aforestated minimum salary rates, the allowable honoraria for volunteer frontline workers should be adjusted accordingly so as to maintain a reasonable pay gap with
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Position Classification and Compensation Scheme In LGUs the lowest paid barangay official; and ♣ That the grant of honoraria shall be subject to availability of funds, and budgetary limitation on personal services under RA No. 7160. 9.3.4.5.2 Honoraria for Barangay Action Officers (BHRAOs) Human Rights

The BHRAO implements the Barangay Human Rights Action Program of the Commission on Human Rights which is aimed to promote and protect human rights in the grassroots level. Each Barangay Human Rights Action Center (BHRAC) serves as the center for complaints and advocacy on human rights in a barangay. A barangay is limited to one BHRAO. • All officially designated BHRAOs may be granted honoraria at rates not exceeding P1,000 each per month subject to the following conditions: ♣ That the BHRAO concerned is duly recognized by the BHRAC National Secretariat; ♣ That the BHRAO has satisfactorily undergone the skills capability training of the Commission on Human Rights; ♣ That the BHRAO concerned is actively performing his/her functions relative to the promotion and protection of human rights in his/her community; ♣ That the grant of honoraria shall be charged against barangay funds, subject to the discretion of the barangay concerned after taking
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Manual on Position Classification and Compensation into consideration its program priorities and financial capability; ♣ That the amount of honoraria for BHRAOs shall not exceed those being received by barangay officials. In case these barangay officials are only receiving the minimum honoraria, the allowable honoraria for the BHRAO should be adjusted accordingly so as to maintain a reasonable pay gap with the lowest barangay official; and ♣ That the grant of honoraria shall be subject to the budgetary limitations under RA No. 7160. 9.3.4.5.3 Additional allowances and Other Benefits or Honoraria for National Government Personnel Assigned in LGUs Pursuant to Sections 447, 458 and 468 of RA No. 7160, the local sanggunian may provide for additional allowances and other benefits to judges, prosecutors, public elementary and high school teachers and other national government officials stationed/assigned in a LGU, subject to the following conditions: • • The grant thereof is not mandatory on the part of the LGU; The total amount of additional allowance and other benefits or honoraria shall not exceed the RATA authorized for the department heads of the LGU concerned, subject to availability of local government funds; That all contractual and obligations of the LGU the implementation of RA and the benefits mandated No. 7305 (Magna Carta statutory including No. 6758 under RA of Public
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Position Classification and Compensation Scheme In LGUs Health Workers) have been provided for in the budget; • fully

That the LGU has fully implemented the devolution of functions/personnel in accordance with RA No. 7160. That the delivery of basic services and functions mandated under RA No. 7160 are not jeopardized; That the grant thereof shall be subject to a regular review and may be withdrawn as deemed necessary by the LGU; and That the expense shall be presented in the LGU budget under the maintenance and other operating expenses pursuant to item 5.5 of Local Budget Circular No. 75 dated July 12, 2002.

9.3.4.6

Anniversary Bonus The rules and regulations on the grant of anniversary bonus (AB) in the national government under Chapter 3 of this Manual are also applicable to LGUs. However, the following additional rules and regulations are applicable only to LGUs: 9.3.4.6.1 The AB shall be granted only during milestone years which refer to the 15th anniversary and to every 5th year thereafter of the founding of the LGUs; The founding year of LGUs shall be as indicated in the authentic documents showing their establishment, or in the enabling acts or laws creating such localities; The counting of milestone years shall start from the year the LGUs were founded regardless of whether they were subsequently renamed, reclassified or
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9.3.4.6.2

9.3.4.6.3

Manual on Position Classification and Compensation converted from one level to another, such as barangay to municipality, municipality to city; 9.3.4.6.4 The counting of the milestone years of an LGU which was created by law out of the split of an LGU and became a distinct and separate LGU shall begin from the time of the LGU’s separation/splitting or creation as a separate entity; and The counting of milestone years of merged LGUs shall reckon from the date they were merged.

9.3.4.6.5

9.3.4.7

Free Quarters Provincial Governors and Provincial Vice-Governors who have no residences within 50-kilometer radius from the provincial capitol may be allowed free quarters, subject to the following guidelines: 9.3.4.7.1 LGUs may provide free quarters within their office premises to the officials concerned who have no residences within 50-kilometer radius from the provincial capitol. Where there is not enough space to be used as quarters, the LGU may rent houses or rooms which shall serve as quarters at reasonable rates based on the prevailing cost of rental in the area or locality as determined under Chapter 4 of the Manual of Building Services and Real Property Management issued under Joint DBM, DENR and DPWH Circular No. 1, dated September 30, 1989, provided that such rates shall not exceed 25% of their monthly basic salaries, and subject to the following: 9.3.4.7.2.1 The rental contract shall be entered into by and between the LGU concerned and the owners of the dwelling units; and the rental payments shall be paid to the latter and not
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9.3.4.7.2

Position Classification and Compensation Scheme In LGUs commuted in favor of the officials concerned. 9.3.4.7.2.2 Said rates shall be inclusive of the amount for telephone, water and electric bills, which shall likewise be paid directly to the utility companies. Those who desire more expensive/extensive quarters other than those rented by the LGUs may secure such preferred quarters, provided that the difference between the rental cost and the amount authorized therefor shall be paid by the former.

9.3.4.7.2.3

9.3.4.7.3

Provision of free quarters outside of the 50kilometer radius from the provincial capitol, such as in Metropolitan Manila, shall not be allowed. The amount necessary for the provision of free quarters to the Provincial Governor and Provincial Vice-Governor shall be charged against the respective LGU funds.

9.3.4.7.4

9.3.4.8

Other Compensation, Allowances and Benefits 9.3.4.8.1 The pertinent rules and regulations on the following other compensation, allowances and benefits provided under Chapter 3 of this Manual are also applicable to LGU personnel: • • • • • Productivity Incentive Benefits; Uniform/Clothing Allowance; Overtime Pay; Night Shift Differential Pay; Subsistence Allowance; and
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Manual on Position Classification and Compensation • Laundry Allowance.

Their grants are subject to the personal services limitation under RA No. 7160. 9.3.4.8.2 The rules and regulations on travel allowance/expenses provided under Chapter 3 of this Manual are also applicable to LGU personnel.

9.3.4.9

Compensation for Local Government Personnel Designated to Fill Temporary Vacancies The following rules shall apply relative to the payment of compensation to officials and employees designated by competent authority to fill temporary vacancies as authorized under RA No. 7160. 9.3.4.9.1 An official or employee in an LGU other than a special city, designated by competent authority on a concurrent capacity to a position lower than Assistant Department Head but nevertheless heads a specific area of responsibility like division chief in provinces and cities, or section chiefs in municipalities, may be allowed honoraria at the rate not exceeding P1,000 per month in provinces and cities, P800 per month in municipalities belonging to 1st to 3rd class and P600 per month for lower than 3rd class. An official or employee not entitled to RATA in his/her permanent position, designated by competent authority on a concurrent capacity to a position entitled to RATA, may be granted the RATA, provided it is so specified in the order of designation, or honorarium at a rate not exceeding the rate of RATA for the position where designated. An official or employee entitled to RATA in his/her permanent position designated by competent authority on a concurrent capacity to a higher position with higher
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9.3.4.9.2

9.3.4.9.3

Position Classification and Compensation Scheme In LGUs rate of RATA may be entitled to the difference between the RATA of the two positions, or honorarium authorized under item 9.3.4.9.1, whichever is higher. 9.3.4.9.4 An official or employee entitled to RATA designated by competent authority to a lateral position in a concurrent capacity for one full calendar month or more may be paid honorarium at the rate prescribed in item 9.3.4.9.1.

9.3.4.10 Compensation for Members of Local Regulatory Boards/Quasi-Judicial Bodies and Similar Bodies in LGUs The following rules shall apply on the payment of compensation to members of local regulatory boards/ quasi-judicial bodies and similar bodies in LGUs: 9.3.4.10.1 A member of a local regulatory and quasijudicial body, e.g., People’s Law Enforcement Board (PLEB), Mining Regulatory Board (MRB) or similar body created pursuant to a law or Presidential authority shall be compensated in the form of per diem at a rate not exceeding P1,000 per meeting/session actually attended but not to exceed 4 paid sessions or P4,000 per month. 9.3.4.10.2 Each administrative support staff rendering services to a board/body may be compensated in the form of honoraria not exceeding P200 per session but not to exceed 4 paid sessions or P800 per month. 9.3.4.10.3 The grant of compensation shall be subject to the following conditions: • • That no law bars them from receiving compensation as members. That the grant thereof is subject to the budgetary limitation on personal
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Manual on Position Classification and Compensation services under Section 325 of RA No. 7160, and to availability of funds. • That when the law expressly provides the rate of compensation, the pertinent provision of the law shall prevail.

9.3.4.11 Compensation for Ex-Officio Members of the Local Sanggunian The rules and regulations relative to the compensation for ex-officio members of the local sanggunian are as follows: 9.3.4.11.1 Ex-officio members of local legislative bodies shall receive the same compensation as that of their counterpart elective sanggunian officials. 9.3.4.11.2 The Municipal and City Chapter Presidents of the Liga ng mga Barangay and the Presidents of the Pederasyon ng mga Sangguniang Kabataan who serve as exofficio members of the Sangguniang Bayan/Panlungsod as the case may be shall receive in full their salaries and allowances from the concerned municipal or city governments. 9.3.4.11.3 The elected Presidents of the Provincial Chapter of the Liga and the Pederasyon who sit as ex-officio members of the Sangguniang Panlalawigan shall receive in full their salaries and allowances from the concerned provincial governments. 9.3.4.11.4 The respective Vice-Presidents of the Liga and the Pederasyon who sit as ex-officio members in the Sangguniang Panlungsod/Bayan in lieu of the Presidents who were elevated to the Sangguniang Panlalawigan shall receive their full salaries and allowances from the concerned city/municipal governments.

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Position Classification and Compensation Scheme In LGUs 9.3.4.11.5 The Presidents of the Provincial Federation of Sanggunian Members of Municipalities and Component Cities who sit as ex-officio members in the Sanggunian Panlalawigan shall receive their salaries and allowances from the component city or municipal governments which they represent. The provincial governments shall appropriate only the difference in the salary and allowances of said officials such that their total compensation shall be equivalent to the compensation actually being received by their elective counterparts in the Sangguniang Panlalawigan. 9.3.4.11.6 The Punong Barangay and SK Chairman who were elected as Chapter/Federation Presidents and therefore sit as ex-officio members in the Sangguniang Bayan/Panlungsod may collect honoraria as chairman of the barangay and as ex-officio member of the Sangguniang Barangay at rates not exceeding P1,000 and P600 per month, respectively, provided that they continue to perform their functions in the barangay. They shall not be entitled to the honoraria adjustments authorized under Local Budget No. 63 and the Christmas bonus from the barangay government in line with the constitutional prohibition on the receipt of double compensation. 9.3.4.11.7 In the event that other officials are validly designated to perform the functions of the Punong Barangay and the Sangguniang Kabataan Chairman in the barangay, the designated officials shall be entitled to collect reimbursable traveling and incidental expenses not exceeding P1,000 per month for the representative of the Punong Barangay and P600 for the Sangguniang Kabataan Chairman representative. Said designated officials shall not be entitled to Christmas bonus.
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Manual on Position Classification and Compensation 9.3.4.12 Classification of Positions and Compensation for Barangay Personnel Pursuant to Executive Order No. 332 dated May 16, 1996, barangay government officials are covered by the Position Classification and Compensation System under RA No. 6758. The following rules on position classification and compensation apply to barangay government officials: 9.3.4.12.1 Barangay officials shall be compensated in the form of honoraria at the minimum rate of P1,000 per month for the Punong Barangay and P600 each per month for the Sangguniang Barangay Members, Barangay Secretary, Barangay Treasurer and the Sangguniang Kabataan (SK) Chairman as ex-officio member of the Sangguniang Barangay. These minimum rates may be increased to a maximum rate equivalent to the first step of the following salary grades of the salary schedule being implemented by the city or municipality where the barangay belongs: •

SG-14 for the Punong Barangay; and
SG-10 for the Sangguniang Barangay Members, Barangay Secretary, Barangay Treasurer and the SK Chairman.

9.3.4.12.2 At the discretion of the barangay government and in consideration of its service requirement and the 55% limitation on personal services appropriation, other positions may be created and may be compensated in the form of salaries or honoraria at rates not exceeding the first step of the salary grade allocation of the following indicative positions based on the salary schedule being implemented in the city/municipality where the barangay belongs:

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Position Classification and Compensation Scheme In LGUs
Positions Utility Worker I Clerk I Accounting Clerk I Barangay Health Aide Revenue Collection Clerk I Day Care Worker I Administrative Assistant Salary Grade 1 3 4 4 5 6 8

Pursuant to Budget Circular No. 2004-3 dated March 6,2004, however, the abovelisted positions have been retitled as follows:
From To

Utility Worker I, SG- Administrative Aide I, 1 SG-1 Clerk I, SG-3 Administrative III, SG-3 Aide

Accounting Clerk I, Administrative Aide IV, SG-4 SG-4 Administrative Assistant, SG-8 Administrative Assistant II, SG-8

9.3.4.12.3 Positions compensated in the form of salaries shall be allocated to their proper position titles and salary grades in accordance with the IOS for the Local Government. Position titles not consistent with the IOS shall be submitted to the DBM for approval. 9.3.4.12.4 Barangay personnel paid salaries and whose positions are classified in accordance with RA No. 6758 and issued appointments in
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Manual on Position Classification and Compensation accordance with the Civil Service law, rules and regulations may be entitled to the following benefits in accordance with law, rules and regulations pertaining thereto, provided that the total compensation of concerned employees shall not exceed the compensation received by the lowest barangay officials: • • • • • 9.3.4.12.5 Personnel Economic Relief Allowance; Additional Compensation; Year-End Bonus and Cash Gift; Productivity Incentive Benefit; and Other benefits accruing government employees. to regular

Barangay Tanods and Members of the Lupong Tagapamayapa may be granted honoraria, allowances and other emoluments provided the total amount shall not exceed the minimum salary rate for SG1 of the salary schedule being implemented by the city/municipality where the barangay belongs and provided further that such compensation shall not exceed those of the lowest paid barangay officials.

9.3.4.12.6 A City/Municipal Accountant who keeps and maintains the financial records of barangay governments are not entitled to honoraria from the latter since such functions are part of their regular functions in the Office of the City/Municipal Accountant. 9.3.4.12.7 Monetization of Leave Credits of Barangay Officials The monetization of the leave credits of barangay officials reckoned from the services they rendered starting April 15, 2004, shall be paid by following the rules and regulations provided under Civil Service
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Position Classification and Compensation Scheme In LGUs Commission and Department of Budget and Management Joint Circular No. 1, s. 2004. Annex A EQUIVALENT RANKS OF LOCAL GOVERNMENT OFFICIALS TO NATIONAL GOVERNMENT OFFICIALS ENTITLED TO RATA
Category LGU/Class % Application Department Department on National Secretary, Undersecretary, RATA Rates SG-31 SG-30 Department Assistant Secretary, SG-29 Director IV, SG-28 (Bureau Director) Director III, SG-27 (Assistant Bureau Director) Director I, SG-25 (Assistant Bureau Regional Director) Division Chief, SG-24

A

Provinces 1 Class 2nd Class 3rd Class 4th Class 5th Class 6th Class
st

100% 95% 90% 85% 80% 75% 100% City Mayor, SG-30

Provincial Governor, SG-30

Provincial ViceGovernor, SG-28

Sanggunian Panlalawigan Member, SG-27 Provincial Government Department Head, SG-26

Provincial Government Assistant Department Head, SG-24

Chief of Hospital II, SG-25

Chief of Hospital I, SG-24

B

Special Cities (Manila and Quezon City only)

City Vice Mayor II, SG-28

Sanggunian Panlungsod Member II, SG-27 City Governmen t Department Head III, SG-27

City Government Assistant Department Head III, SG-25

Division Chief, SG-24

C

Highly Urbanized Cities

100%

City Mayor, SG-30

City Vice Mayor II, SG-28

Sanggunian Panlungsod Member II, SG-27 City Government Department Head II, SG-26

City Government Assistant Department Head II, SG-24

Chief of Hospital II, SG-25

Chief of Hospital I, SG-24 Sanggunian Panlungsod Member I, SG-25 City Government Department Head I, SG-25 City Government Assistant Department Head I, SG-23 Chief of Hospital II, SG-25 Chief of Hospital I, SG-24

D

Component Cities 1st Class 2nd Class 3rd Class 4th Class 5th Class 6th Class 100% 95% 90% 85% 80% 75%

City Mayor, SG-30

City Vice Mayor I, SG-26

E

Municipalities within Metropolitan Manila

100%

Municipal Mayor II, SG-28

Municipal Vice Mayor II, SG-26

Sangguniang Bayan Member II, SG-25 Municipal Government Department Head II, SG-25

Municipal Government Assistant Department Head II, SG-23

F

Municipalities outside Metro Manila 1st Class 2nd Class 3rd Class 4th Class 5th Class 6th Class 90% 85% 80% 75% 70% 65%

Municipal Mayor I, SG-27

Municipal Vice Mayor I, SG-25

Sangguniang Bayan Member I, SG-24 Municipal Government Department Head I, SG-24

Municipal Government Assistant Department Head I, SG-22

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Manual on Position Classification and Compensation

References
Issuances Joint Commission on Local Government Personnel Administration Circular No. 37, September 30, 1989 Joint Commission on Local Government Personnel Administration Circular No. 39, October 2, 1990 Joint Commission on Local Government Personnel Administration Bulletin No. 10, March 7, 1991 Republic Act No. 7160, October 10, 1991 Executive Order No. 503, January 22, 1992 Titles Index of Occupational Services, Position Titles and Salary Grades

Changes in the Index of Occupational Services, Position Titles and Salary Grades Issued Under Circular No. 37

Guidelines for the Proper Implementation of Joint Commission Circular No. 39 Dated October 2, 1990

Local Government Code of 1991 Providing for the Rules and Regulations Implementing the Transfer of Personnel and Assets, Liabilities and Records of National Government Agencies Whose Functions are to be Devolved to the Local Government Units and for Other Related Purposes Guidelines and Standards in the Establishment of Organizational Structures and Staffing Patterns in Local Government Units Clarifying the Role of the Department of Budget and Management in the Compensation and Classification of Local Government Positions Under R.A. No. 7160 Guidelines on Compensation and Position Classification in the Local Government Units Guidelines for the Initial Implementation of the Revised Compensation and Position Classification System in the Local Government Clarificatory Guidelines on the Initial Implementation of the Revised Compensation and Position Classification System for Devolved Personnel Guidelines on Compensation and Position Classification in the Local Government Units (LGUs)

Civil Service Commission Memorandum Circular No. 19, s. 1992, May 7, 1992 Administrative Order No. 42, March 3, 1993 Local Budget Circular No. 53, September 1, 1993 Local Budget Circular No. 54, March 9, 1994 Local Budget Circular No. 54-A, August 7, 1994 Local Budget Circular No. 55, March 15, 1994

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Position Classification and Compensation Scheme in LGUs
Issuances Local Budget Circular No. 56, January 25, 1995 Titles Guidelines for the Implementation of the Revised Compensation and Position Classification System (CPCS) in the Local Government and Other Compensation Matters Clarificatory Guidelines on Allowances That Fall Under the Personal Services (PS) Account Compensation of Barangay Officials and Personnel Guidelines for the Implementation of the Revised Rates of Representation and Transportation Allowances and Uniform Allowance in the Local Government Units Supplementary Guidelines on the Payment of Representation and Transportation Allowances (RATA) to Certain Personnel Devolved From the Department of Health (DOH), Department of Agriculture (DA) and Department of Social Welfare and Development (DSWD) Guidelines for the Implementation of the Revised Position Classification and Compensation System (PCCS) in the Local Government Revised Index of Occupational Services, Position Titles and Salary Grades (IOS) in Local Government Integrating the Barangay Governments Into the Revised Position Classification and Compensation System in the Government Directing Strict Compliance with the Compensation Standardization Law by Local Governments Guidelines on the Grant of Honoraria in the Local Government Units (LGUs) Position Classification and Compensation of Barangay Officials and Personnel Guidelines for the Full Implementation of the Revised Position Classification and Compensation System (PCCS) in the Local Government Guidelines on the Grant of Anniversary Bonus in the Local Government

Local Budget Circular No. 57, May 19, 1995 Local Budget Circular No. 58, July 7, 1995 Local Budget Circular No. 59, Series of 1996 Local Budget Circular No. 59-A, December 8, 1997

Local Budget Circular No. 60, January 25, 1996 Local Budget Circular No. 61, March 18, 1996 Executive Order No. 332, May 16, 1996 Administrative Order No. 282, July 25, 1996 Local Budget Circular No. 62, July 29, 1996 Local Budget Circular No. 63, October 22, 1996 Local Budget Circular No. 64, January 22, 1997 Local Budget Circular No. 65, March 3, 1997

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Manual on Position Classification and Compensation
Issuances Local Budget Circular No. 66, March 4, 1998 Local Budget Circular No. 66-A, August 28, 2000 Local Budget Circular No. 67, March 23, 1998 Local Budget Circular No. 68, June 4, 1998 Local Budget Circular No. 69, March 21, 2000 Local Budget Circular No. 71, October 5, 2000 Local Budget Circular No. 72, December 5, 2000 Local Budget Circular No. 73, January 10, 2001 Titles Guidelines on the Payment of Compensation to Ex-Officio Members of the Local Sanggunian Additional Guidelines on the Payment of Compensation to Ex-Officio Members of the Local Sanggunian Guidelines on the Payment of Per Diem to the Members and Support Staff of the People’s Law Enforcement Board (PLEB) Guidelines for the Implementation of the Revised Rates of Representation and Transportation Allowances and Uniform Allowance in the Local Government Units Guidelines for the Grant of Ten Percent (10%) Salary Adjustment to Personnel in the Local Government Effective January 1, 2000 Adoption of Higher Salary Schedule by Local Government Units Compensation of the Members of the Provincial/City Mining Regulatory Board Guidelines on the Grant of Compensation Benefit to Local Regulatory Boards/Quasi-Judicial Bodies and Similar Bodies In Provinces/Cities/Municipalities and Barangay Volunteer Frontline Workers Authority to Grant a Maximum of Five Percent (5%) Salary Adjustment to Personnel in the Local Government Units (LGUs) Effective July 1, 2001 Guidelines on Personal Services (PS) Limitation Cash Gift of Barangay Officials Clarifying Local Budget Circular No. 76 dated November 5, 2002 on the Cash Gift of Barangay Officials Guidelines on the Provision of Free Quarters to Provincial Governors and Vice-Governors Guidelines for the Implementation of the Revised Rates of Representation and Transportation Allowances (RATA) in Local Government Units (LGUs)

Local Budget Circular No. 74, June 15, 2001 Local Budget Circular No. 75, July 12, 2002 Local Budget Circular No. 76, November 5, 2002 Local Budget Circular No. 76-A, November 20, 2002 Local Budget Circular No. 78, March 8, 2004 Local Budget Circular No. 79, April 1, 2005

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Position Classification and Compensation Scheme in LGUs

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