c




 

c



 step increments, allowances, and other forms of
c


 compensation and benefits.As the need arises, changes in
, is devoted to the evolution of the PCCS starting from this Manual will be issued by the DBM. The loose leaf form
the American Regime up to the enactment of RA No. 6758. It has been adopted for easy insertion of changes in the
also includes the governing principles, positions covered, Manual. The Human Resource Management Officers or
parts, and objectives of the PCCS. equivalent officers of agencies are requested to maintain
their copies of the Manual in current status.
c
  

c



(PCP), discusses 
the concepts and c
,


 


contents of the PCP. It also discusses the position
classification factors, the
c




position classification process, including the policies, rules c



and regulations on the
administration and maintenance of the PCP.  

c



c


 
 







,
c
 c



(CP), contains the 
concepts of compensation, compensation policy of the State, $ 
&
governing principles of the CP, and the general guidelines During the first three years of the American regime (1898-
governing government compensation. It describes the salary 1900), there was no formal position classification and salary
schedule, salary rules, policies and guidelines related to administration system in the Philippines. The common
additional compensation and benefits, and states how the CP designations of positions in the government service were
is maintained. The 
c  clerk, employee, inspector, teacher, translator-interpreter,



 

c



 Stenographer-typist and janitor-messenger. To indicate levels
c


are discussed in c
 whilethe of difficulty, adjectives such as deputy, assistant and chief




c
 


   

  were used. Salaries were paid in Mexican dollars and Spanish-
!" 

are discussed in c
#$ Filipino pesos were set at certain levels. Higher salaries,
however, were reserved for the Americans to attract them to
c
% 

c



c


  join the civil service. Salaries, on the other hand, for new


 &

!





, positions were arbitrarily fixed by legislative prerogative.
comprisestopics on the teacher͛s preparation pay schedule The depreciation, however, of the said currencies coupled
and its coverage, basis ofposition classification, salary grades, with the problems of daily life placed the morale of civil
compensation benefits and the careerprogression system for servants on a rather low profile.
public school teachers. To resolve the problem, Act No. 5 entitled, ͞An Act for the
Establishment and Maintenance of an Efficient and Honest
c
' 

c



c


  Civil Servants in the Philippines,͟ was enacted by the

(
 

, includes discussions on the common Philippine Commission on September 19, 1900. Among the
criteria for evaluation,qualitative contribution evaluation, salient provisions of said Act were the creation of the
determination of appropriate ranks andsalaries, evaluation Philippine Civil Service Board which was the forerunner of the
cycle and the additional compensation for faculty members in Civil Service Commission, the delineation of its powers and
State Universities and Colleges. Likewise included in the functions and the establishment of rules and regulations
discussions are the manner, selection and appointments to especially those on position classification. Notwithstanding
faculty ranks. the established salary rules, the Americans were paid higher
salaries than Filipinos occupying similar positions in the civil
c
)

c



c


  service.

(
&

shows the coverage of Republic $$-
$.
Act No. 7157 or ͞ThePhilippine Foreign Service Act of 1991.͟ To uplift the economic status of civil servants and to attract
It enumerates the designations of(
& Service personnel and retain qualified and competent staff, the Philippine
when assigned abroad and when recalled to the homeoffice Commission passed Act No. 57 in December 1900 directing
and describes their system of allowances. It likewise discusses the Philippine Civil Service Board to conduct a survey of
theassignment, accreditation, appointment and salaries in the civil service.
determination of assimilated ranksof service attaches for Based on the results of the said survey, a readjustment plan
compensation purposes. was submitted by the Philippine Civil Service Board to the
Philippine Commission which in turn passed Act No. 102
Chapter 9, 

c



c


  entitled, ͞An Act Regulating the Salaries of Officers and
*



+, includes guidelines on position Employees in the Philippine Civil Service,͟ dated March 9,
classification, creation ofnew positions/offices and of a new 1901. Act No. 102 categorized officers and employees of the
class of positions. The compensation scheme includes civil service into 2 general groups based on their salaries
guidelines on basic pay, adoption of higher salary schedule, 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.
$ c

ͻ 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
ͻ 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
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.
$$c

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 cushion the effects of inflation, bonuses
were granted to government officials and employees based
on the number of immediate dependents.
$   
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
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
 relieve civil servants from the economic difficulties brought
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

c






/#'
officers and employees embraced in the classified and
unclassified service except the following:
ͻ Elective officers and officers whose compensation was fixed
in the Constitution;
ͻ Officers chosen by the National Assembly in accordance
with the Constitution;
ͻ Employees stationed outside the territorial limits of the
Philippines;
ͻ 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;
ͻ Commissioned and enlisted members in the active service
of the Philippine Army;
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
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.

$$ 
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.
1- A, 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.
The Plans covered all positions in the national government
and its instrumentalities, including quasi-public corporations.
Exempted there from are the following:
ͻ Elected officials and officers whose compensation were
fixed in the Constitution;
ͻ Officers and employees of the legislative and judicial
departments of the government;
ͻ Secretaries and undersecretaries of departments of the
government;
ͻ Members of the Armed Forces;
ͻ Officers and employees of the Foreign Service; and
ͻ 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.
$$ 0 &

1
c



 $$ c





c






c



/'% /)/
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.
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.
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
͞critical͟ 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
Purposes͟ 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:
͞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.͟

 cc
$$$
& 

c



 The PCCS serves as a tool for effective management,
c


2cc3 organizational analysis, budgeting and fiscal control, and as
The PCCS is governed by principles enunciated in RA
No. 6758, as follows:
ͻ 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;
ͻ 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;
ͻ The total compensation provided for government personnel
must be maintained at a reasonable level in proportion to the
national budget; and
ͻ A review of government compensation rates taking into
account possible erosion in purchasing power due to inflation
and other factors shall be conducted periodically.
$$$

c
 cc ´ Highlights problems of overlapping and duplication of
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
contract, paid on piecework or job order basis, including mail
contractors and others similarly situated.
$$$

 cc ´ Establishes common terminologies for budget requests for
The PCCS is composed of the Position Classification Plan (PCP)
and the Compensation Plan (CP).
ͻ The PCP is an orderly scheme which provides the criteria
and the standards for the classification of positions.
ͻ 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.
$$$4

(
 
 cc ´ Provides information to taxpayers on the kinds of positions
ͻ Grouped classes of positions into 4 main categories,
namely:
´ Professional Supervisory;
´ Professional Non-Supervisory;
´ Sub-Professional Supervisory; and
´ Sub-Professional Non-Supervisory.
ͻ Revised the salary schedule from 28 to 33 salary grades and
prescribed the rules and regulations for its implementation;
ͻ Assigned the salary grades of constitutional officials and
their equivalents and mandated the DBM to determine the
officials who are of equivalent rank;
ͻ Established benchmark positions as an aid to position
classification and salary grade allocation;
ͻ Provided for step increments based on merit or length of
service;
ͻ Reduced the number of classes of positions in the national
government from more than 5,000 to about 2,400; and
ͻ Integrated allowances and other compensation into the
standardized salary.
$$$# 5
an information tool for the general public or taxpayers.
ͻ 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.
ͻ As a tool in organizational analysis:
functions or redundancies in a government agency;
´ Aids in the accurate analysis and review of functions of a
government agency.
´ 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
ͻ As a tool in budgeting and fiscal control:
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.
ͻ As an information tool:
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 5. Commissioned and enlisted members in the active service
is presented in Annex A of this Chapter. Discussions on the of the Philippine Army
American and Commonwealth Regimes were based on the 6. Persons in the military, naval or civil service of the United
book by Tomas W. Flores, ͞Compensation and Position States who were appointed or detailed to perform duties in
Classification in the Philippine Government, 1900-1978,͟ the Government of the Commonwealth
(Malacañang, Manila: Ministry of the Budget, 1978). 7. Employees declared by the President of the Philippines as
6 primarily confidential or highly technical yees of the
 !

 

 

c



 legislative and judicial departments of the government
c


  

 3. Secretaries and undersecretaries of departments of the

 

&c


 & government
  
Legal basis Act No. 102, ͞An Act Regulating the Salaries of
Officers and Employees in the Philippine Civil Service,͟ dated
March 9, 1901
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 1- A (The Position Classification Plan),
and Reorganization Plan2-A (The Pay Plan) both dated May 5,
1956
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
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 Duties, responsibilities and qualification
requirements of the position Duties, responsibilities and
qualification requirements of the position Coverage
Officers and employees of the Philippine Civil Service
Officials and employees embraced in the classified and
unclassified service all positions in the national government
and its instrumentalities, including quasi-public corporations
All positions in the national government, including
government owned or controlled corporations and
government financial institutions All positions in the
government, including government- owned and controlled
corporations and government financial institutions Exemption
Officers and employees of the Department of Mindanao and
Sulu
1. Elective officers and officers whose compensation were
fixed in the Constitution
2. Officers chosen by the 1. Elected officers and officers
whose compensation was fixed in the Constitution 2. Officers
and employ-
1. Elected officers and officers whose compensation were
4. Members of the Armed Forces
5. Officers and employees of the Foreign Service
6. Provincial, municipal and local official͛s officials and
employees, who were governed by PD No. 1136
Number of services/ occupational services :
7 services19 occupational services
Number of occupational groups:
2 groups (first and second)
237 occupational groups
271 occupational groups
206 occupational groups
Number of classes
of positions
21 classes of positions
2,259 classes of
positions
Number of classes were reduced from 4,300 to 2,700
Number of classes were reduced from more than 5,000 to
2,541 Salary structure First Group (10 classes ʹ 1 to 10)
Second Group (11 classes ʹ A to K)
10 grades with 3 rates of compensation
The highest, Grade 1, had 3 rates. The lowest, Grade 10, had
2 rates. 75 salary ranges with 5 salary steps each 28 salary
grades with 8 salary steps each 33 salary grades with 8 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 Salary Board was renamed Salary
Committee during WW II. Chairmanship was transferred to
the Auditor- General in 1945 and to the Commissioner of the
Budget in 1947. Wage and Position Classification Office
(WAPCO), Budget Commission 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
c
 


c



 


fixed in the Constitution $ 

c




2. Local government those expressly exempted by The Position Classification Plan (PCP) consists of occupational
subsequent laws 
 

& services, occupational groups, classes in series, specifications
c


 &   National or written descriptions of the classes and the rules and
Assembly in accordance with the Constitution procedures for the administration and maintenance of the
3. Employees stationed outside the territorial limits of the Plan.
Philippines $c



c



4. The President, deans of colleges, directors of schools, the 2.2.1 The position is the basic unit of an organization. It is a
registrar, the business director and members of the teaching set of current duties and responsibilities assigned by
staff of the University of the Philippines
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 incumbent͛s qualifications, except teaching positions
where the incumbent͛s education, relevant training and
experience and other factors are considered.
$
&
c
+ c are assigned Salary Grade 8 to Salary Grade 30. Examples:
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
The classes in the PCP are grouped into the following:
$$
A series consists of one or more classes of positions which are
similar as to specialized line of work, arranged by level of
difficulty and responsibility. Example: Public Health Nurse.
This series is composed of Public Health Nurse I, Public Health
Nurse II and Public Health Nurse III.
$$  



 Electrician Foreman, Chief Bookbinder
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.
$$  



 usually require skills acquired through training and
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.
  







$c
&
7


c
 



Classes are categorized under RA No. 6758 as follows:
2.4.1 Professional Supervisory (PS) Category ʹ 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 ʹ 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
2413
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 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
Tourist Receptionist I, Chemist I, College Professor, University
Professor
2.4.3 Sub-Professional Supervisory (SS) Category ʹ 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,
2.4.4 Sub-Professional Non-Supervisory (SN) Category ʹ 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
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
$#46
A listing of the different occupational services, occupational
groups and classes in series existing in the PCP is shown in the
Index 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. Volume III is the Index of Classes by Salary Grades.
$%c


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.
$%$c
c
&
A class category may be either of the following: Professional
Supervisory (PS), Professional Non-Supervisory (PN), Sub-
Professional Supervisory (SS) or Sub-Professional Non-
Supervisory (SN).
$%$c
4

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.
$%$c

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 ʹ This shows the general nature of the work such as
Sorter, Mechanic, and Inspector. Specialty ʹ This shows the


- 

*




field of specialization or field of activity such as Mail Sorter,
Aircraft Mechanic, and Meat Inspector. Level ʹ 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, and Meat Inspector II.


c



 responsibilities and, therefore, a higher level class.
ͻ *


 Examples:
As a general rule, the following are the standard levels of
classes of positions:
´ Entrance Level or Level I ʹ 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 ʹ 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
ʹ 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 sub professional 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 ʹ 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
´ Chief Level or Level V ʹ 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 sub professional 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
ͻ +
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
Elementary School Principal I ʹ supervises 10 to 29 teachers
Elementary School Principal II ʹ supervises 30 to 59teachers
Teacher I ʹ Bachelor͛s degree for teachers (BSE, BSEE)
Teacher II ʹ Bachelor͛s 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.
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1
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:
ͻ Under immediate supervision 8This 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.
ͻ Under general supervision 8The 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.
ͻ 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.
ͻ 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.
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ͻ 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, and singular
form with the tasks separated by semi-colons.
ͻ 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 of
the paragraphs follows the order in the general description of
the job types in the ͞Definition͟ portion.
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  discussions, telephone conversations and written
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.
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(

 accident hazards in the performance of the duties and
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.
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(

 various facets of supervision such as work planning and
The 3 basic classification factors are:
ͻ Skills and Knowledge ʹ These measure the extent of formal
education and work experience normally required for the
satisfactory performance of the duties and responsibilities of
a position.
ͻ Nature of Work ʹ 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.
ͻ Responsibility ʹ 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.
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(

 Negligence could result in monetary loss or property damage.
The 3 basic classification factors are divided into the following
(


sub-factors:
$'$$:
;
ͻ Mental/Physical Effort ʹ This considers the amount and
continuity of physical exertion or mental concentration
required in the completion of work, taking into consideration
the pressure and extent of physical and/or mental effort
involved.
ͻ Internal and External Relationships ʹ This refers to the
nature of communication and association with others, both
within and outside of the office, as required for the
satisfactory performance of the duties and responsibilities of
a position on a regular basis. Contacts include personal
communications. This sub-factor is evaluated according to the
nature and limits of contact.
ͻ Hardship, Hazard and Personal Risk Involved ʹ This
considers the degree and continuity of exposure to health or
responsibilities of a position.
$'$$
ͻ For Work of Others or Supervision Exercised ʹ This sub-
factor considers the responsibility of a position for the
organization, work assignments and review, and the exercise
of supervisory functions.
ͻ For Decision-Making ʹ 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.
ͻ For Accuracy of Records and Reports ʹ This considers the
accuracy required and importance of information, records
and reports prepared or reviewed by a position.
ͻ For Funds, Property and Equipment ʹ This considers the
accountability of a position for assets such as cash, negotiable
instruments, equipment, supplies, materials and tools.
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ͻ Rank of the position in the organizational hierarchy;
& ͻ Functions of the unit where the position is located;
ͻ ! 

ʹ This considers the minimum formal education, ͻ Kind and number of existing positions in the unit
applicable training or equivalent knowledge required for the performing similar or related tasks;
satisfactory performance of the duties and responsibilities of ͻ Consistency of the classification and salary grade
a position. assignment of the positions in the unit, in the agency, and in
ͻ !6ʹ This considers the length of time necessary for other government agencies;
an average new employee with the required minimum ͻ Other quantitative factors, such as number of
education to acquire the needed skills for satisfactory elementary/secondary school teachers supervised, etc.
performance of the job. $) 

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<
: The position classification process is the series of actions
ͻ Supervision Received ʹ This considers the type, frequency leading to the grouping of positions into classes or to the
and latitude by which assignments and instructions are determination of the appropriate class for a given position
received, how work methods are followed, and how work is using the position classification factors as guides.
checked for quality and quantity. $)$ c




ͻ Analysis and Problem Solving Required ʹ This considers the There are 3 steps in the classification process. They are fact-
degree of difficulty and complexity of the assigned tasks and finding, analysis and evaluation.
the extent to which the work involved requires analytical $)$$(
8(&
ability, exercise of judgment and creativity necessary to 2.8.1.1.1 Fact-finding involves the gathering of facts about
achieve the desired results. the duties and responsibilities of a position. In fact-finding,
the 2 sources of facts are as follows:
ͻ Primary Sources ʹ These include the accomplished Position
Description Form, incumbent of the position, the supervisor
of the position, organizational charts and work samples; and
ͻ Secondary Sources ʹ 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:
ͻ 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.
ͻ Conduct of Work Audit
´ 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 responsibilities stated pertain to different
occupations.
´ 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.
ͻ 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.
ͻ 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 grade. This chart ascertains the official location of
the position and its relation to other positions in the
organizational unit.
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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 position͛s creation. Typically, they occupy most of the
employee͛s 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 employee͛s
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.
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
ͻ Location of Position - Accounting Division
ͻ Immediate Supervisor - Accountant I
ͻ Positions Supervised - 2 Accounting Clerk I and
1 Accounting Clerk II
ͻ 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 on bookkeeping matters
as may be directed by supervisors.
Step 2: Series of classes as determined by the kind of work:
ͻ Accounting Clerk and Bookkeeper ʹ 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.
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.




=68



Step 5: Distinguishing characteristics of the following classes
have been determined as follows:
ͻ Accounting Clerk I ʹ posts data and updates records for
payment and deductions for salaries, wages and other
accounts
ͻ Accounting Clerk II - maintains subsidiary ledgers; reconciles
subsidiary ledger balances with controlling account balances
in the general ledger
ͻ Accounting Clerk III ʹ supervises the activities of accounting
clerks engaged in posting entries from the journals to the
subsidiary and general ledgers
ͻ Bookkeeper ʹ 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.
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 The duties and responsibilities serving as basis for the
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.
$)$$$ 81c
=
 used in recruiting, testing and selection.
ͻ The Philippine government͛s Position Classification Plan

=


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adopts the predetermined class method in the evaluation
process. Under this method, classes with their appropriate
salary grades and written standards are established.
ͻ 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.
ͻ 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.
Step 8: All facts about the position are found in the class,
Bookkeeper. Decide to allocate the position to the class,
Bookkeeper, SG-8.
  


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 $/$$ &
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 Original classification action is applied to positions classified
In the absence of a class specification, a classifier must resort
to the following:
ͻ Determine the series to which the position may be
allocated.
ͻ Determine whether or not there have been positions
classified under the series.
ͻ If there are positions classified under the series, compare
the facts pertaining to the position being classified against
those of the positions already classified to the series. If the
duties and responsibilities of the position are comparable
with those of the classified position, the position is allocated
to the particular class in the series.
ͻ If the duties and responsibilities of the position do not fall
within the allocation standards for the class requested or any
other existing class, consider recommending the creation of a
new class.
$)$$$!
ͻ ͞Mixed-Grade͟ 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
employee͛s 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 employee͛s
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.
decision are so different from the other duties and
responsibilities as to require materially higher qualifications,
which are, or will be reflected in the qualifications standards
$/

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.
$/$ 

for the first time such as new positions.
ͻ 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.
ͻ 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 (NOSCA) is issued to the agency. For no
itemized positions such as casual or contractual positions,
DBM issues a letter authorizing their creation and their
corresponding classification.
ͻ 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.
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 Circular No. 24 dated May 20, 1983; and
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.
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2.9.1.2.2.1 Non-performance of the regular duties and
responsibilities of a position by reason of the incumbent͛s
inability or incompetence;
2.9.1.2.2.2 New duties/assignments which
are temporary in nature;
2.9.1.2.2.3 Qualifications of the incumbent except those
enumerated in items 2.9.1.2.3.1 to 2.9.1.2.3.3
2.9.1.2.3 The following are the instances when reclassification
is based on the qualifications of the incumbent:
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;
2.9.1.2.3.2 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
2.9.1.2.3.3 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.
2.9.1.2.4 A position may be reclassified if the incumbent fully
meets the CSC͛s 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.
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
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
2-21
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;
2.9.1.2.1.3 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
2.9.1.2.1.4 The reclassification of a position is provided by law
or Presidential authority.
2.9.1.2.2 The following shall not be used as bases for the
reclassification of positions:
concerned their requests for reclassification of positions as
endorsed by agency heads, together with the following:
ͻ Duly accomplished Position Description Forms (PDFs);
ͻ Organization, functional and position charts;
ͻ Justification for the reclassification of the positions;
ͻ A certification that the incumbent fully meets the
qualification standards requirement for the position as
reclassified, pursuant to CSC rules and regulations.
ͻ If no amount is appropriated specifically for the
reclassification of positions, a proposal to implement the
͞scrap and build͟ policy, i.e., funded vacant positions are to
be offered for abolition which shall be used as funding source
for the said purpose; and
ͻ Justification for the abolition of the funded vacant positions
by considering the effects on the operation of the affected
units.
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.
2.9.1.2.6.3 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.
2.9.1.2.6.4 A request for reconsideration may be made within
thirty (30) calendar days after receipt of the NOSCA/DBM
action.
2.9.1.2.6.5 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 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

4


c




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.
2.9.1.2.6.6.2 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 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

´ 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.
ͻ The DBM evaluates the request in accordance with existing
position classification standards.
ͻ 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.
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&
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.
$/$$#&
Retitling of a class involves a change to a more appropriate
title of a class and consequently all positions allocated to the
class, without change in salary grade.
$/$!
2.9.2.1 All classification actions take effect on the date
indicated in the NOSCA or DBM letter. For positions in schools
and educational institutions, the effectivity is not earlier than
June 1 of the current year. For non-itemized positions, the
effectivity date is indicated in the DBM letter.
2.9.2.2 A reclassification action takes effect on the date
indicated in the NOSCA but not earlier than the date when
funds for the purpose are authorized in the General
Appropriations Act. For positions under the Department of
Education and other schools, the effectivity is not earlier than
June 1 of the current year.
2.9.2.3 The implementation of a reconsideration action takes
effect on the effectivity date of the original classification/
reclassification of a position.
2.9.2.4 The retitling/upgrading of a position takes effect on
the date indicated in the NOSCA.
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The DBM maintains/updates the PCP as follows:
$/$$c

-  



  



over the 8th step treated as ͞transition allowance͟ which 
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shall be deducted from any future salary adjustment of the New occupational services, occupational groups, classes in
employee. series may be created when new duties and responsibilities
2.9.1.2.6.6.2.4 If to a lower salary grade, the employee shall are found to exist or are not comparable to those existing in
be allowed to continue to receive his/her present salary. the PCP such that the positions cannot be allocated to
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 existing classes.
An agency may request reconsideration of the classification/ $/$$=&&&


  



reclassification of a position if it believes that the 
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classification/reclassification action made was erroneous on Existing occupational services, occupational groups, classes in
the grounds that pertinent facts were not considered in the series may be merged, split, or abolished when existing
evaluation, and that such omission caused the classification conditions of work assignments on which they were based
error. are modified. These may include splitting of functions,
ͻ A request for reconsideration may be made within addition of new functions, abolition of functions, changes in
30 calendar days after receipt of the NOSCA/DBM action. The work methods due to technological development,
agency submits the request for reconsideration together with organizational development, and changes in work entrance
the following: requirements, etc., which may cause the addition to or
changes in the duties and responsibilities of a position.
$/$$
  electrical generating and utilization equipment; and does
ͻ The BMB/DBM Regional Office concerned conducts initial
evaluation of the need for creation/
merging/splitting/abolition of occupational services/
occupational groups/classes in series. It submits its
recommendations relative thereto, the corresponding draft
class specifications and other pertinent documents to OPCCB.
ͻ Using the position classification factors as guides, the
OPCCB breaks down the facts pertaining to the positions and
compares them with those of existing classes to ascertain the
need for creation of new/modified classes.
ͻ After deciding that new/modified classes are to be created,
OPCCB undertakes the following:
´ determines the occupational service and occupational
group;
´ Within the occupational group, determines the different
levels of difficulty of duties and responsibilities;
´ Reviews and finalizes the draft class specifications;
´ Allocates each class to a salary grade on the basis of grade
level definitions or in the absence thereof, on the basis of
comparability with established classes in the PCP;
´ Submits its recommendation for approval of the DBM
Secretary;
ͻ The DBM, through the OPCCB, issues a notice of change in
the IOS to all DBM offices and to the government agencies
concerned; and
ͻ The BMB or DBM Regional Office concerned adopts the
new/modified class in processing the agency request.
$/$$+
&>


c



 power failure; repairs or replaces defectiveparts of the



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.
$/$$#


 

  recharges storage batteries; repairs magnetic switches and
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.
$/$$%+
 
c
 graduation from secondary trade school.
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.
 Name) (Middle
6
-
!*!c
!*!c4c4-4
1
 4. DEPARTMENT/BRANCH/DIVISION : 5. WORK
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
related work.
c


Follows blueprints and specifications for the installation of
channelboards, circuits and outlets and other equipment;
installs electrical wiring,conduits, switches, cables, fuse
boxes or circuit breakers in buildings, plantsand pumping
stations and other structures; installs electrical circuits for
buildingautomation controls, security devices, fire alarm
devices, audio and videosystems, 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; installselectrical wiring in marine craft; tests
electrical circuit to ensure safe operationas designed; installs
coaxial or fiber optic cable from computers and other
telecommunications equipment; regularly inspects electrical
wiring andequipment to identify potential problems; takes
corrective action immediately;repairs or replaces defective
parts of the electrical system.Or interprets electrical
transmission and distribution plans; installselectric wires
from powerhouse to pole; installs on poles electrical fixtures
andequipment such as insulators, transformers, street
lighting, lightning arrestersand platforms and traffic signals;
tests installed electrical equipment andlighting to ensure
safe operation; installs connecting wires from main power
lines to buildings and other structures; tests, locates and
inspects main line andconnecting lines to locate source of
power system and lighting; may operate aerial bucket truck
or anylarge construction equipment.Or determines repairs
and replacements to be made on electricalgenerating,
utilization and control equipment using testing instruments;
following using diagrams, rewinds armatures and field coils of
motors andgenerators and primary and secondary windings
of transformers; checks andrepairs electric wiring of motor
vehicles and heavy equipment; repairs, rebuildsand
horn relays;repairs water temperature and oil gauges and
indicators.
9


Any combination of training and experience equivalent to

60
Republic of the Philippines : 1. NAME OF EMPLOYEE
DBM-CSC Form No. 1 :
(POSITION DESCRIPTION FORM) : (Family Name) (Given
Name)
:
2. DEPARTMENT, CORPORATION OR : 3. BUREAU OR OFFICE
AGENCY/LOCAL GOVERNMENT UNIT ::
STATION/PLACE OF WORK:
6a. PRES. APPROP. : 6b. PREV. APPROP. : 7.a SALARY : 7.b
ACT/BOARD RES./ : ACT/BOARD RES./ : AUTHORIZED : OTHER
COMPENSATION
ORD. NO. : ORD. NO. : : 24. I hereby certify that the above answers are accurate and
ITEM NO. : ITEM NO. : ACTUAL : complete.
: Date Signature and Title of Immediate Supervisor
8. OFFICIAL DESIGNATION OF : 9. WORKING OR PROPOSED 25. APPROVED:
TITLE Date Head of Agency
POSITION : 
: 6c
10. DBM CLASSIFICATION OF THIS : 11. OCCUPATIONAL 4-+c4 -( cc =*4?4-?! 44 -
GROUP TITLE 1!c44 -( =
POSITION : (Leave Blank) The following instructions show how the Position Description
: Form (PDF) should be filled and how the supervisor should
12. FOR LOCAL GOVERNMENT POSITION, CHECK review it.
GOVERNMENTAL UNIT AND UNIT THE ADMINSTRATIVE OFFICER
CLASS The Administrative Officer or equivalent officer of the
MUNICIPAL CITY PROVINCE department, corporation, agency, or local government unit in
1st 2nd 3rd 4th 5th 6th charge of human resource management functions in which
13. STATEMENTS OF DUTIES AND RESPONSIBILITIES. If more the position is located should fill in Items 1 to 12, except Item
space is needed, 11.
please attach additional sheets. Item 1. Name of Employee ʹ Write the name of the employee
Percent of Working : Duties and Responsibilities presently occupying the position. Write the word ͞vacant͟ if
Time : the position is vacant at the time this form is accomplished.
: Item 2. Department, Corporation or Agency/Local
: Government ʹ Write down the exact name of the Office.
: Avoid using abbreviations. (Write ͞Department of Justice͟
: instead of ͞DOJ͟ if a department, ͞Social Security System͟
14. POSITION TITLE OF IMMEDIATE : instead of ͞SSS͟ if a corporation, and ͞Rizal Provincial
15. POSITION TITLE OF NEXT SUPERVISOR : HIGHER Government͟ instead of ͞Rizal͟ if a local government unit.)
SUPERVISOR: Item 3. Bureau or Office ʹ Write down the major subdivision
16. NAMES, TITLES and ITEM NOS. OF THOSE YOU DIRECTLY of the agency to which the position belongs and is directly
SUPERVISE (If more than seven (7), list only their item nos. under, such as ͞Bureau of Immigration͟ or ͞Financial and
and position titles.) Management Service͟ if in the department proper.
17. MACHINES, EQUIPMENT, TOOLS, etc. used regularly in Item 4. Department/Branch/Division ʹ Write down the
performance of work immediate subdivision of the office indicated in Item 3 where
__________________________________________________ the position is deployed, such as ͞Administrative Services
18. CONTACTS : 19. WORKING CONDITIONS Department,͟ ͞Personnel Branch,͟ or ͞Management
Occasional Frequent : Division.͟
General Public : Normal Working Condition Item 5. Work Station/Place of Work ʹ Indicate the geographic
Other Agencies : Field Work location of the position, such as Manila, Bataan, Davao, etc.
Supervisors : Field Trips Items 6a and 6b. Appropriations Act/Board Resolution - Write
Management : Exposed to Varied Weather down the present and previous appropriations act, board
Others (Specify) : Others (Specify) resolution or ordinance number and the item number of the
20. I certify that the above answers are accurate and position in said appropriations act, board resolution or
complete. ordinance.
Date Signature of Employee Items 7a and 7b. Salary and Other Compensation ʹ Write
TO BE FILLED OUT BY IMMEDIATE SUPERVISOR down the salary of the position as authorized in the
21. Describe briefly the general function of the unit or appropriations act, board resolution or ordinance and the
section. actual salary of the employee occupying the position. If the
22. Describe briefly the general function of the position. position is vacant at the time this form is being accomplished,
23a. Indicate the required qualifications by years and kind of indicate N.A. for not applicable opposite actual salary. Write
education considered in down the other regular compensation for the position.
filling up a vacancy for this position. (Keep the position in Item 8. Official Designation of Position ʹ Write down the class
mind rather than the title of the position as authorized in the appropriations act,
qualifications of the present incumbent. This item should be board resolution or ordinance.
filled for all positions Item 9. Working or Proposed Title ʹ Write down the class title
other than teaching.) of the position as requested.
Education: Item 10. DBM Classification of this Position ʹ Write down the
Experience: classification of the position as certified to the agency by the
23b. Licenses or certificates required to do this work, if any. DBM. Leave blank if the position is new and not yet classified.
Item 11. Occupational Group Title ʹ 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.
?!!=* @!!
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.
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
͞maintains͟ mechanical equipment and/or records; ͞checks͟
plans and/or reports; ͞helps͟ carpenters or engineers;
͞prepares͟ reports and/or layouts. For example, a statistician
may ͞prepare͟ 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
Time͟ 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 Received͟ 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
subordinate͛s work.
Item 14. Position Title of Immediate Supervisor ʹ Write down
the authorized position or class title of the first or immediate
supervisor. ͞Immediate supervisor͟ refers to the supervisor
nearest in level to the position supervised. For example, in a
division consisting of seven (7) positions, 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 ʹ 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
ʹ 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 ʹ Write down
the machines, equipment or tools used regularly such as a
typewriter, mechanic͛s tools or calculator or those operated
regularly such as a water pump, diesel generator or
computer.
Item 18. Contacts ʹ 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 ʹ Check the appropriate box that
describes the working condition of the position.
Item 20. Certification by the Employee for Accomplishing the
Form ʹ 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 employee͛s 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 ʹ 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


8These are cash compensation
Position ʹ 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.


8These are usually non-cash or
Item 23a. Minimum Qualifications Required ʹ 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 important
that the qualifications of the present incumbent of the


AThese are cash compensation
position should not be considered. Other skills, knowledge͛s
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


8These are cash compensation
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 ʹ 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.
 Compensation Plan of the Philippine Government.

 

c
 c

3.2.3 !6
>!AThese comprise all
compensation benefits, both monetary and non-monetary,
and received directly or indirectly by the employee.
3.2.4 1c
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 4c
in-kind benefit items that contribute to the employee͛s
welfare, standard of living and personal development. These
include protection programs such as insurances, paid leaves,
perquisites and training programs.
3.2.6 (6c
items which are regularly granted to all employees. Examples
are: basic salaries, Personnel Economic Relief Allowance
(PERA), and Additional Compensation (ADCOM).
3.2.7 B

c
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 0

8This is the primary cash compensation for
work performed, excluding any other payments, allowances
and fringe benefits.
3.2.9 

- This refers to the basic pay for work performed
by an employee paid on a monthly basis.
3.2.10 <
&AThis refers to the basic pay for work
performed by an employee paid on a daily or hourly basis.
3.2.11 (&08These 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
3.3 



 

 Section 2 of RA No. 6758 provides the compensation policy of
3.1  c




the State, to wit:
The Compensation Plan (CP) under RA No. 6758 is an orderly
"It is hereby declared the policy of the State to provide equal
scheme for determining rates of compensation of
pay for substantially equal work and to base differences in
government personnel. It was crafted to attract, motivate
pay upon substantive differences in duties and
and retain good and qualified people to accomplish the
responsibilities, and qualification requirements of the
Philippine Government͛s mission and mandates, to
positions. In determining rates of pay, due regard shall be
encourage personal and career growth, and to reward good
given to, among others, prevailing rates in the private sector
performance and length of service. To achieve these goals,
for comparable work. "
the CP has a mix of compensation components, namely;
3.4 

&
 c




basic pay or salaries, fringe benefits, incentives and non-
Pursuant to RA No. 6758, the CP is based on the following
financial rewards which provide reasonable levels of
principles:
compensation packages within existing government
3.4.1 All government personnel shall be paid just and
resources, and are administered equitably and fairly.
equitable salaries and wages. Intrinsic Rewards
3.2 c

c



job satisfaction personal/career growth quality of work life
3.2.1 

c


AThis represents all financial and
sense of belonging Fixed Protective Paid leave Additional
non-financial rewards and entitlements arising from
Services Variable: health insurance, retirement benefit,
employment relationship.
employee compensation, insurance free medical/dental
3.2.2 4
8These are derived from the work
clinic, shuttle service, free meals (hospitals) vacation leave,
environment, which are valued internally by an individual,
sick leave, special privilege, leave paternity/maternity leave
like quality of work life, job satisfaction, challenge, personal
single parent͛s leave monetization of leave credits
and professional growth opportunities, feeling of belonging,
Basic Pay
freedom to act, visionary leadership, and the like.
ͻ Salary
ͻ Wage Fixed Fringe Benefits 3.5.6 Unless otherwise specifically approved by the President,
ͻ PERA no person shall be appointed in the government under the
ͻ ADCOM guise of voluntary service, with compensation below the
ͻ uniform allowance hiring rate for the position, provided that, the application of
Variable Fringe Benefits this provision may be waived to authorize voluntary service in
ͻ hazard pay the Armed Forces of the Philippines or in connection with
ͻ honoraria relief operations.
ͻ overtime pay 3.6 c

 c




ͻ night-shift differential pay The CP contains the following:
ͻ subsistence Allowance ͻ Salary schedule;
Total Compensation ͻ Salary rules; and
sports activities ͻ Policies, rules and regulations related to other
cultural activities compensation such as allowances and other benefits.
training programs 3.7  

  
scholarship grants ͻ The salary schedule under the CP is a table of salary grades
intership programs with each salary grade consisting of several salary steps with
Direct Compensation Indirect Compensation corresponding money values.
service car __ ͻ A salary grade represents a level of difficulty and
mobile/cell phone __ responsibility of work. The present Salary Schedule consists of
assigned driver/secretary __ 33 salary grades.
preferred office furnishing __ ͻ Each of Salary Grades 1 to 32 consists of 8 salary steps
assigned parking space __ which are used to provide incentives for length of service in
free quarters __ the position. Salary Grade 33 has only 1 salary step.
newspaper subscriptions __ ͻ The 1st salary step is the minimum or hiring rate. The 2nd


 to 7th salary steps are the intermediate salary rates. The 8th
1

 step is the maximum salary rate.
Extrinsic Rewards ͻ 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.
__ housing loan ͻ The daily wage represents full compensation for full-time
__ PAG-IBIG Fund benefits employment in an 8-hour work day regardless of where the
__ Provident Fund benefits work is performed. The daily rate shall be computed based on
__ quarters privilege the authorized/actual monthly rate for the position divided
__laundry allowance by 22 days.
3.4.2 The basic pay for all personnel in the government shall 3.8 

 
generally be comparable with those in the private sector. The rules governing the implementation of the salary
3.4.3 The total compensation program of government schedule are as follows:
personnel shall be maintained at a reasonable level in $)$?&

proportion to the national budget. 3.8.2.1 The first step in the salary grade for a given class of
3.4.4 Government compensation rates shall be reviewed positions shall be the hiring rate for new employees.
periodically taking into account possible erosion in purchasing 3.8.2.2 No employee shall receive a salary less than the hiring
power due to inflation and other economic factors. rate for the position.
3.5 
 


c


 3.8.3 


ʹ This is a movement from a lower level
Government compensation shall be governed by the position to a higher level position within the same or in
following general guidelines: another organizational unit in the same department or
3.5.1 Each class of positions in the Position Classification Plan agency.
shall be assigned a salary grade. 3.8.3.1 If the actual salary of the employee at the time of
3.5.2 Compensation for part-time services rendered shall be his/her promotion is below the hiring rate of the new
computed proportionately. position, he/she shall be allowed the hiring rate or 1st step of
3.5.3 Across-the-board salary or wage adjustment shall be the salary grade of the new position.
granted to all employees. 3.8.3.2 If the present salary falls between steps, he shall be
3.5.4 Salary and other compensation adjustments including allowed the next higher step, i.e., the immediately succeeding
the grant of new benefits shall be covered by appropriate step to an off-step salary rate. Hence, if the salary rate falls
legal basis or authority. between steps 3 and 4, the next higher step is step 4.
3.5.5 As a general rule, no official or employee shall receive a 3.8.3.3 If the present salary is equal to any of the steps of the
salary equal to or higher than the salary of his/her immediate new position, he/she shall be allowed the next higher step.
supervisor, except when otherwise authorized by law, rules However, if it is equal to the maximum or 8th step, he/she
and regulations. shall only continue to receive the same salary rate.
3.8.3.4 If the present salary is over the maximum or 8th step exonerated and reinstated shall continue to receive his/her
of the new position, he/she shall continue to receive his/her previous salary.
present salary. Any excess over the 8th step shall be treated 3.9  c





0
as transition allowance which shall be considered as
advanced implementation of future salary increase/s.
3.8.3 1

ʹ This is a ovement from a higher level within the salary grade of a position.
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.
3.8.3.2 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.
3.8.4 
AThis 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 If the transfer is to a higher level position, the salary
rules on promotion shall apply.
3.8.4.2 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.
3.8.4.3 If the transfer is to a lower level position, the salary
rules on demotion shall apply.
3.8.5 





AThis is a form of position Circulars;
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.
3.8.5.2 If reclassified to a position with a higher salary grade,
the salary rules on promotion shall apply.
3.8.5.3 If reclassified to a position with a lower salary grade,
the employee shall be allowed to continue to receive his/her
present salary.
3.8.6 
&
7

AThis involves the restructuring of the service in their present positions.
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 organization͛s 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.
3.8.6.2 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.
3.8.6.3 If an employee is reappointed to a higher level
position, the salary rules on promotion shall apply.
3.8.7 
8An employee who was separated from position title, as in Illustrative Example 3, Annex ͞A.͟
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 
8An employee who was charged and
terminated from government service but was subsequently
3.9.1 4
Step increment is the increase in salary from step to step
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;
3.9.1.2.2 Career Executive Service Officers whose step
increments are governed by Career Executive Service Board
3.9.1.2.3 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
3.9.1.2.4 Elective officials
3.9.1.3 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
3.9.1.3.2 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:
ͻ reclassified to classes with lower or the same salary grades,
as in Illustrative Example 1, Annex ͞A;͟
ͻ 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
ͻ upgraded, i.e., with upward change in the salary grade
allocation of a class of positions without change in the
3.9.1.3.2.2 Those rendered by incumbents before they were:
ͻ 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;͟
ͻ 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
ͻ 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:
ͻ Those rendered before their promotion;
ͻ Those rendered before the upward reclassification of their
positions; and
ͻ Those rendered before voluntary demotion or demotion as
a result of disciplinary action.
3.9.1.3.4 Step increments shall be limited to the maximum
step of the salary grades of positions.
3.9.1.3.5 Authorized vacation leave without pay for an
aggregate of 15 days or less, inclusive of Saturdays,
Sundays and holidays, shall not interrupt the 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.
3.9.1.3.7 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).
3.9.1.4 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 LGUs͛ 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 ͞B͟ 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.
3.9.1.6.2 For GOCCs and GFIs, the amounts shall be charged
against their respective corporate funds.
3.9.1.6.3 For LGUs, the amounts shall be charged against their
respective local government funds.
Annex ͞A͟
4**+4B!!C=*!
Illustrative Example 1 ʹ Reclassification of Position
Geologic Aide SG-4 6,522 July 1, 2004 (Date of appointment)
Science Aide SG-4 6,522 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 ʹ Involuntary Demotion
Information Officer II SG-15 13,300 May 15, 2002 (Date of
promotion)
Information Officer I SG-11 13,300 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 ʹ Upgrading of Position
Legislative Staff Employee I SG-2 P4, 796 February 1, 1999
(Date of appointment Legislative Staff Employee I SG-4 6,211
March 1, 2000 (Date of upgrading of the position)
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 SG-4 P6,522 March 1, 2003 (Date of
appointment)
Dental Aide SG-4 P6,522 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 ʹ 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 court͛s 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)
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 ʹ Exoneration of an Employee Placed The Personnel Economic Relief Allowance (PERA) is a P500
under Preventive Suspension monthly allowance authorized under the pertinent general
Nurse I SG-10 P9,466 November 15, 2000 provision in the annual
(Date of appointment) December 15, 20003 General Appropriations Act (GAA). It is granted to augment a
(Placed under preventive suspension without pay) government employee's pay due to the rising cost of living.
June 15, 2004 (Date of exoneration) 3.9.2.1 Coverage
The computation of the length of service shall start from 3.9.2.1.1 Appointive government personnel occupying
November 15, 2000. The salary adjustment to Step 2 shall be regular plantilla positions;
on November 15, 2003, and succeeding step increments shall 3.9.2.1.2 Casual or contractual employees; and
be every 3 years thereafter, if the incumbent remains in the 3.9.2.1.3 Military personnel of the Armed Forces of the
same position. Philippines, and uniformed personnel of the
Illustrative Example 7 ʹ Change of Status of Appointment Department of the Interior and Local Government,
Ticket Checker (Temporary status) Philippine Coast Guard under the Department of
SG-3 P6, 039 April 1, 1996 (Date of appointment3 Transportation and Communications, and the
Ticket Checker (Permanent status) National Mapping and Resource Information
SG-3 P6,039 August 15, 2004 Authority under the Department of Environment and Natural
(Date of change of status of appointment) Resources.
The salary of the incumbent is adjusted to Step 4 on April 1, 3.9.2.2 Not Covered
2005. 3.9.2.2.1 Elective officials;
 3.9.2.2.2 Government personnel stationed abroad and others
Annex ͞B͟ similarly situated;
----------------------------------------------- 3.9.2.2.3 Those declared by the authorities concerned as
Name of Agency absent without leave during the month; and
NOTICE OF STEP INCREMENT 3.9.2.2.4 Consultants, experts, student laborers, apprentices,
---------------------------- laborers of contracted projects (͞pakyaw͟), mail contractors,
Date those paid on piecework bases; and others similarly situated.
Mr./Ms. ______________________ 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.
Sir/Madam: 3.9.2.3.2 The PERA of government personnel paid on daily or
Pursuant to CSC and DBM Joint Circular No. 1, s. 1990, as part-time basis shall be computed as follows, based on the
amended, implementing actual services rendered during the month but not to exceed
Paragraph 8 of the Senate and House of Representatives Joint P500 per month:
Resolution No. 1, s. 1994, as P500/Month Number of Days
adopted under Executive Order No. 164 (Adopting a Revised PERA for the Month = --------------------- Worked During
Compensation and Position xx Work Days/Month the Month
Classification System in the Government), dated March 8, 3.9.2.3.3 Actual services rendered during the month for
1994, your salary as which PERA is to be paid shall include leaves of absences with
____________________, is hereby adjusted effective pay.
__________________, as follows: 3.9.2.3.4 Government personnel who are on full-time or part-
Basic Monthly Salary as of time detail with another government agency shall receive the
________________________(Step _____) PERA from their mother agencies, or from the same source
P__________________ where they draw their basic pay. No one shall receive PERA
Add: Step Increment (_____ Step) __________________ from more than one source.
Adjusted Salary Effective 3.9.2.3.5 The rules and regulations relative to the PERA for
__________________________ P__________________ LGU personnel are covered by Chapter 9 of this Manual.
This step increment is subject to post-audit by the 3.9.2.4 Funding Source
Department of Budget and 3.9.2.4.1 For NGAs including SUCs, the PERA for personnel
Management and to appropriate re-adjustment and refund if occupying regular positions shall be charged against the
found not in order. appropriations for the purpose in the annual GAA. The PERA
Very truly yours, for casual and contractual personnel shall be charged against
 c



 their respective lump-sum appropriations.
3-17 3.9.2.4.2 For GOCCs and GFIs, the amounts shall be charged
__________________________ against their respective corporate funds.
Head of Agency 3.9.3 

c



Copy furnished: GSIS The Additional Compensation (ADCOM) of P500 per month
3.9.2 
!



 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;
3.9.3.1.2 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
>c
 &
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.
3.9.3.4.2 For GOCCs and GFIs, the amount shall be charged
against their respective corporate funds.
3.9.4 +


Communications and the National Mapping and Resource
Information Authority under the Department of Environment
and Natural Resources; and
3.9.3.1.3 Officials and employees of local government units
(LGUs)
3.9.3.2 Not Covered
3.9.3.2.1 Government officials and employees in NGAs and
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 (͞pakyaw͟), 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.
3.9.3.3.2 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.
3.9.3.3.3 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.
3.9.3.3.4 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 therefore. No one shall
receive ADCOM from more than one (1) fund source.
3.9.3.3.5 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.
3.9.3.3.6 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 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
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 that are hired as consultants, experts, student
laborers, laborers of contracted projects (͞pakyaw͟), mail
contractors, those paid on piecework bases, and others
similarly situated
3.9.4.3 Rules and Regulations
3.9.4.3.1 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.
3.9.4.3.3 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.
3.9.4.3.4 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.
3.9.4.3.5 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.
3.9.4.3.6 The U/CA of government personnel who are on
detail with other government agencies shall be borne by the
mother agency.
3.9.4.3.7 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.
3.9.4.3.8 Government personnel who are required to wear
uniforms at all times in the performance of their functions
such as security guards, prison guards, 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.
3.9.4.4.2 For GOCCs and GFIs, the amounts shall be charged
against their respective corporate funds.
3.9.4.4.3 For LGUs, the amounts shall be charged against their
respective local government funds.
3.9.5 







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
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
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 official͛s 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
National Budget Circular No. 498 dated April 1, 2005, the
following are the RATA rates:
Monthly Rate for Each Type
Officials of Allowance
Department Secretaries P 7,500 and those of equivalent ranks
Department Undersecretaries 6,000 and those of equivalent
ranks Department Assistant Secretaries 5,500 and those of
equivalent ranks Bureau Directors, Department 5,000
Regional Directors and those of equivalent ranks. Assistant
Bureau Directors, Department 4,500 Assistant Regional
Directors, Bureau Regional Directors, Department Service
Chiefs and those of equivalent ranks Assistant Bureau
Regional Directors 4,000 and those of equivalent ranks
Chiefs of Division identified as such 3,000 in the Personal
Services Itemization and Plantilla of Personnel and those of
equivalent ranks. 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
3.9.5.2.2.2 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
 
c
 
reassignment.
3.9.5.2.4 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.
3.9.5.2.5 Officials and employees designated as Officers-In-
Charge 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.
3.9.5.2.6 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.
3.9.5.2.7 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.
3.9.5.2.8 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.
3.9.5.3 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 agencies͛
appropriations for personal services.
3.9.5.3.1.2 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.
3.9.5.3.1.3 The RATA for contractual officials shall be charged
against the 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 @
8!0
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:
ͻ Those that have rendered at least a total or an aggregate of
4 months of service including leaves of absence with pay;
ͻ Those that 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
ͻ Those that have rendered less than 4 months of service
The aggregate service requirement for purposes of the grant
of YEB shall include such services
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 barangay͟
members, ͞barangay͟ secretaries and ͞barangay͟ 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 Those on absence without leave (AWOL);
3.9.6.2.2 Consultants, experts, student laborers, apprentices,
laborers of contracted projects (͞pakyaw͟), mail contractors,
those paid on piecework bases, and others similarly situated;
and
3.9.6.2.3 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 hereof
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
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.
3.9.6.3.1.3 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.
3.9.6.3.1.4 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:
Month of Retirement/ Separation from the Service
Percentage of P5.000
Corresponding Amount
May 0% P 0
June 20% 500
July 40% 1,000
August 60% 1,500
September 80% 2,000
October 100% 2,500
3.9.6.3.1.5 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:
Length of Service Percentage of P5,000
Corresponding Amount
3 months but less than 4 months
40% P2,000
2 months but less than 3 months
30% 1,500
1 month but less than 2 months
20% 1,000
Less than 1 month 10% 500
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.
3.9.6.3.2.2 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.
3.9.6.3.3 Personnel on Full-Time or Part-Time Detail
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.
3.9.6.3.5.2 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.
3.9.6.3.5.3 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.
3.9.6.3.6 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 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 ͞Barangay͟ Officials
3.9.6.3.7.1 ͞Barangay͟ 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.
3.9.6.3.7.2 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.
3.9.6.3.7.3 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.
3.9.6.3.7.4 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 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.
3.9.6.4.2 For GOCCs and GFIs, the amounts shall be charged
against their respective corporate operating budgets.
3.9.6.4.3 For LGUs, the amounts shall be charged against their
respective local government funds.
3.9.7 
 
4
0 exceed the average of P2,000 per filled position. This should
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
3.9.7.1.2 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
3.9.7.2 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;
3.9.7.2.2 Those who were dismissed within the year for which
PIBs are granted;
3.9.7.2.3 Those who have been absent without official leave
within the year for which PIBs are granted;
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 (͞pakyaw͟),
those paid on piecework bases, and others similarly situated;
3.9.7.2.5 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
3.9.7.2.6 Elective and appointive barangay personnel paid
honoraria
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.
3.9.7.3.1.2 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.
3.9.7.3.1.3 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.
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 latter͛s 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
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.
3.9.7.3.3.2 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.
3.9.7.3.4 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 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,
ͻ Personnel who were preventively suspended but later
exonerated of the charges filed against them shall be entitled
to PIBs.
ͻ If the penalties are only reprimands, the personnel may be
entitled to PIBs.
3.9.7.4 Funding Source
3.9.7.4.1 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.
3.9.7.4.2 For GOCCs and GFIs, the amounts shall be charged
against their respective corporate funds.
3.9.7.4.3 For LGUs, the amounts shall be charged against their
respective local government funds.
3.9.8

 3.9.8.3.3 Overtime pay shall be computed as follows:
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:
ͻ Cause financial loss to the government or its
instrumentalities;
ͻ Embarrass the government due to its inability to meet is
commitments; or
ͻ 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
3.9.8.1.2 Incumbents of positions of chiefs of division and
below who are designated to positions higher than chiefs of
division
3.9.8.2 Not Covered
3.9.8.2.1 Those occupying the following positions:
ͻ Department Secretaries;


8 
ͻ Department Undersecretaries;
ͻ Department Assistant Secretaries;
ͻ Bureau Directors and Regional Directors
ͻ Assistant Bureau Directors and Assistant
Regional Directors; and
ͻ Department Service Chiefs and Assistant
Department Service Chiefs
3.9.8.2.2 Incumbents of positions of equivalent category as
those above-mentioned in SUCs, GOCCs, GFIs and LGUs;
3.9.8.2.3 Incumbents of intermediate positions to the above
enumerated positions in the NGAs, SUCs, GOCCs, GFIs and
LGUs;
3.9.8.2.4 Elective officials; and
3.9.8.2.5 Other appointive officials whose equivalent ranks
are higher than chiefs of division
3.9.8.3 Rules and Regulations
3.9.8.3.1 Overtime services shall include:
ͻ Those rendered beyond eight (8) work hours of regular
work days;
ͻ Those rendered on rest days, such as Saturdays and
Sundays; and
ͻ Those rendered on holidays or non-working days.
3.9.8.3.2 Personnel who rendered overtime services shall be
granted overtime pay by the hour which shall be based on
his/her actual hourly rate derived as follows:
Actual Hourly Rate (HR) = Actual Salary/Month
-----------------------------
(22 Days/Month) (8 Hours/Day)
ͻ For ordinary work days: Plus 25% of the hourly rate (0.25 x
HR)
Overtime Pay = 1.25 x HR x Number of Hours of
Overtime Services Rendered
ͻ 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
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 foretasted conditions are fully satisfied.
3.9.8.4.2 For GOCCs, and GFIs, the amounts shall be charged
against their respective corporate funds.
3.9.8.4.3 For LGUs, the amounts shall be charged against their
respective local government funds.
3.9.9 c
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
3.9.9.1.2 Incumbents of positions of chiefs of division and
below who are designated to positions higher than chiefs of
division
3.9.9.2 Not Covered
3.9.9.2.1 Those occupying positions whose equivalent ranks
are higher than chiefs of division;
3.9.9.2.2 Elective officials; and
3.9.9.2.3 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:
ͻ completion of infrastructure and other projects with set
deadlines when due to unforeseen events the deadlines
cannot be met without resorting to overtime work;
ͻ relief, rehabilitation, reconstruction and other related work
or services during calamities and disasters;
ͻ work related to school graduation/registration where the
additional work cannot be handled by existing personnel
during regular work hours;
ͻ 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;
ͻ seasonal work such as budget preparation and rendition of
annual reports to meet scheduled deadlines;
ͻ 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;
ͻ 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;
ͻ implementation of special programs/projects embodied in
Presidential directives and authorizations with specific dates
of completion;
ͻ legal services to facilitate the dissolution of
cases/resolutions/ decisions;
ͻ services rendered by drivers and other immediate staff of
officials when required to keep the same working hours as
their superiors; and
ͻ such other activities as may be determined by the head of
agency.
3.9.9.3.2 Computation of Compensatory Overtime Credit
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.
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.
3.9.9.3.3.3 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 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
the employee during regular work days.
3.9.9.3.3.4.2 The COCs cannot be converted to cash, hence,
are noncommutative.
3.9.9.3.3.4.3 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.
3.9.9.3.3.5 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 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
employee͛s 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 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.
3.9.9.3.3.8.2 The employee renders overtime services as
stipulated in the office order.
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.
3.9.9.3.3.8.5 The employee requests approval from the
agency head or authorized official on the schedule of CTO.
3.9.9.3.3.8.6 The employee avails of the CTO.
 chief operating officer of the collegial body for every meeting
Annex C
This certificate entitles Mr./Ms.
_______________________________ to
_____________________ of Compensatory Overtime Credits.
(number of hrs.)
Head of Office
Date Issued: __________________
Valid Until: __________________
Certificate of COC Earned
No. of Hours of Earned Date of CTO Used COC Remaining COC
Remarks
COCs/Beginning Balance
Approved by: Claimed:
Front
 per diems at rates not exceeding the
3.9.10 1
Per diem is a compensation granted to a chairperson, vice
chairperson 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
3.9.10.1.2 Chairpersons and members of the
Board of Regents/Trustees of SUCs
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;
3.9.10.2.2 Appointed chairpersons, vice chairpersons
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
entities͛ 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, vice chairpersons
and members of collegial bodies
3.9.10.3.1.1 The chairpersons, vice chairpersons and
members of collegial bodies shall be entitled to per diems at
rates not exceeding the following:
Chairpersons Amount equivalent to 25% of the monthly
representation and transportation allowances (RATA) of the
actually attended but not to exceed 4 paid meetings in a
month
Vice-Chairpersons/
Members
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
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
Members Amount equivalent to 25% of the monthly
RATA of the Vice- 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
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, 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.
3.9.10.4.2 For SUCs, the per diem shall be charged against
the appropriations for the purpose in the annual
GAA or against their incomes.
3.9.10.4.3 For GOCCs and GFIs, the per diem shall be charged
against their respective corporate funds.
 and/or in excess of their regular loads;
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 ʹ Level II; SUC-B ʹ Level III;
SUC-C ʹ 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 Maximum Amount Maximum Number
Maximum
President Per Meeting of Paid Meetings Per Diems
Per year (Regular Per Year
and Special)
(25% x a)
(a) (b) (c) (b x c) =(d)
SUC - A II P10,000 P2,500.00 6 15,000
SUC - B III 11,000 2,750.00 6 16,500
SUC - C IV 12,000 3,000.00 6 18,000
Note: Mr. Yanes shall be paid per diems for only four (4)
regular meetings and two (2) special meetings in a year.
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 ʹ Level II; SUC-D ʹ Level III;
SUC-E ʹ 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 Maximum Amount Maximum Number
MaximumVice President Per Meeting of Paid Meetings Per
DiemsPer Year (Regular Per Year and Special)
(25% x a)
(a) (b) (c) (b x c) = d
SUC ʹ D II P9,000 P2,250.00 6 13,500
SUC ʹ E III 9,000 2,250.00 6 13,500
SUC ʹ F IV 10,000 2,500.00 6 15,000
Note: Mr. Ama shall be paid per diems for only four (4)
regular meetings and two (2) special meetingsin a year.

$/$?
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 Skills Development Authority, SUCs and other
educational institutions engaged in actual classroom teaching
whose teaching loads are outside of their regular office hours
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
3.9.11.1.3 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.
3.9.11.1.4 Those who are involved in science and
technological activities who receive services beyond their
regular work load.
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
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 ʹ 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 ʹ 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 ʹ any person who serves
as lecturer/speaker in seminars, training programs and other
similar activities
3.9.11.3.4 Training Institutions ʹ 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:
Regardless of the regular positions of the lecturer/resource
person, he/she may be paid the hourly rate of a Professor VI






4


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 agencies͛ 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
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
Personnel: 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 NGAs including SUCs, the amounts for
honoraria shall be charged against the appropriations for the
purpose in the annual GAA.
3.9.11.5.2 For GOCCs and GFIs, the amounts shall be charged
against their respective corporate funds.
3.9.11.5.3 For LGUs, the amounts shall be charged against
their respective local government funds.
$/$?

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.
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:
ͻ Open and competitive bidding;
ͻ Limited source bidding;
ͻ Negotiated procurement under Section 53 (a) of the IRR-A,
where there has been failure of bidding for the second time;
and
ͻ 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:
ͻ Direct contracting;
ͻ Repeat order;
ͻ Shopping;
ͻ 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
ͻ 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
BAC Chair P 3,000
BAC Members 2,500
TWG Chair and Members 2,000
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.
The members of the BAC Secretariat whose positions are in
the Procurement Unit of the agency shall not be entitled to
honoraria. Thepayment 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:
ͻ Proceeds from sale of bid documents;
ͻ Fees from contractor/supplier registry;
ͻ Fees charged for copies of minutes of bid openings, BAC
resolutions and other BAC documents;
ͻ Protest fees;
ͻ Liquidated damages; and
ͻ 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.
3.9.13 -& 8 1


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
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.
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.
3.9.13.4.2 For GOCCs and GFIs, the amounts shall be charged
against their respective corporate operating budgets.
3.9.13.4.3 For LGUs, the amounts shall be charged against
local government funds.
3.9.14 ?
7
1 

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 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 strife torn 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, strife torn or
embattled areas for the following periods in a month:
Period of Assignment Monthly in Work Days Rate
1 to 7 days P 400
8 to 14 days 500
15 or more days 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:
ͻ on vacation, sick or study leave with or without pay;
ͻ on maternity leave;
ͻ on summer vacation, such as teachers;
ͻ on terminal leave;
ͻ on detail with another agency which work areas are not
strife-torn or embattled;
ͻ on attendance in training courses/ scholarship
grants/seminars/similar activities; and
ͻ 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
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), and subject further
to the enactment of the appropriate Sanggunian ordinances.
3.9.14  
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
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
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;
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.
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.
3.9.15.3.2 For GOCCs and GFIs, the amounts shall be charged
against their respective corporate operating budgets.
3.9.15.3.3 For LGUs, the amounts shall be charged against
their respective local government funds.
$/$%*



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.
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.
c

 

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.
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 for 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.
$/$'(9

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
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:


*
 3.9.17.4.1 For NGAs, the amounts shall be charged against
c
&
 the released allotments for maintenance and other operating
Department Regional Directors A
Department Assistant Regional Directors A
Bureau Regional Directors B
Assistant Bureau Regional Directors B
&?


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.
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
 consumption and not of the entire household, at rates not
c

 =


0 &
 prevailing in the locality for residential users, as certified by
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 A B

rental cost 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
expenses.
3.9.17.4.2 For GOCCs and GFIs, the amounts shall be charged
against their respective corporate operating budgets.
$/$)(9

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 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
exceeding the minimum charges for water and electricity
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.
$/$/
c


Special Cities (Manila/ The Special Counsel Allowance authorized under the
Quezon City pertinent general provision in the annual GAA is granted to
P3,000 P2,500 lawyer personnel, including those designated to assume the
Highly Urbanized Cities/ duties of a legal officer and those deputized by the Office of
Capital Centers the Solicitor General in the legal staff of departments,
2,500 2,000 bureaus or offices of the national government to appear in
Others 2,000 2,000 court as special counsel in collaboration with the Solicitor
3.9.17.3.2.1 The rental contract shall be entered into by and General or prosecutors concerned.
between the agency concerned and the owner of the 3.9.19.1 Rate of Special Counsel Allowance
dwelling unit; and the rental payment shall be paid to the The Special Counsel Allowance is granted at P500 for each
latter and not commuted in favor of the official concerned. court appearance, but not exceeding P3,000 per month.
3.9.17.3.2.2 The above rates shall be inclusive of the amounts 3.9.19.2 Funding Source
for telephone, water and electric bills. Savings in agency appropriations/budgets
3.9.17.3.2.3 Those who desire more expensive/ extensive $/$.

0
 
quarters other than those provided by their agencies or by The Anniversary Bonus (AB) is a financial incentive authorized
the authorized maximum rental rate, may secure such under Administrative Order No. 263 dated March 28, 1996, to
preferred quarters, provided that the difference between the
be granted to government employees on the occasion of
their agencies͛ 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 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 (͞pakyaw͟), 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 per personnel,
provided that he/she has rendered at least 1 year of service
in the same agency as of the date of the milestone year.

-&


&2c-34

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.
th
3.9.20.3.3 A milestone year refers to the 15 anniversary and
to every 5th year thereafter.
3.9.20.3.4 ͞Government entities͟ shall refer to departments,
bureaus, offices, commissions and similar bodies of the
national government, including GOCCs and GFIs; 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.
3.9.20.3.6 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.
3.9.20.3.7 The counting of the milestone years of merged
agencies shall start from the date they were merged.
3.9.20.3.8 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.
3.9.20.3.9 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.
3.9.20.3.10 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.
3.9.20.4.2 For GOCCs and GFIs, the amounts shall be
charged against their respective corporate
operating budgets.
3.9.20.4.3 For LGUs, the amounts shall be charged
against their respective local government
funds.
$/$c
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 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
employees͛ 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 Those who perform
managerial functions;
3.9.21.1.1.2 ͞Coterminous employees͟ 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
3.9.21.1.1.3 ͞Highly confidential
employees͟ 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
1 Section 1, Rule I, Definition of Terms, PSLMC Resolution No.
02, s. 2004.
misgivings of betrayal of
personal trust or confidential
matters of state.͟2
3.9.21.2 
  Resolution No. 02, s. 2003, and before the effectivity of the
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 employees͛ 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 ͞A͟ 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.
 
 
3.9.21.2.4 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 CAN Incentive.
3.9.21.2.4.2 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.
3.9.21.2.4.3 Starting from the effectivity
of BC No. 2006-1, all CNAs
and supplements thereto shall only provide for the
CNA Incentive as the cashincentive.
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
Circular, which were granted in strict compliance with said
PSLMC Resolutions, are thus confirmed as valid CNA
Incentives.
3.9.21.2.6 The amount/rate of the individual CNA
Incentive:
3.9.21.2.6.1 Shall not be pre-determined in the CNAs or in the
supplements thereto since it is dependent on savings
generated from cost cutting measures and systems
improvement, and also from improvement of productivity
and income in GOCCs and GFIs;
3.9.21.2.6.2 Shall not be given upon signing and ratification of
the CNAs or supplements thereto, as this gives the CAN
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);
3.9.21.2.6.3 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
3.9.21.2.6.4 May be higher for employees in offices or
organizational units which contributed more in cost 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.
$/$$
3.9.21.3.1 An Employees͛ Organization -
Management Consultative Committee or a similar body
composed of designated representatives from the
management and the accredited employees͛ organization
shall review the agency͛s 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;
3.9.21.3.1.2 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;
3.9.21.3.1.3 The apportioned amounts of such savings shall
cover the following items:
͞Fifty percent (50%) for CNA Incentive
Thirty percent (30%) for improvement of working conditions
and other programs and/or to be added as part of the CAN
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
programs͟3

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 Employees͛ 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 Section 5, PSLMC Resolution No. 04, s. 2002.
3 Section 6 c), PSLMC Resolution No. 02, s. 2003.
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 year͛s operating loss should
have been minimized or reduced compared to or at most
equal that of prior year͛s 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
c) 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.͟ The
following are the definitions of the terms aforestated,
pursuant to Section 4, PSLMC Resolution No. 02,
s. 2003:
͞a) Corporate Operating Budget ʹ refers to the budget of a

government- owned and/or ʹ controlled corporation/
government financial institution consisting of 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 ʹ refers to gross income/
revenues generated from the exercise of the corporation͛s
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.
c) Actual operating expenses ʹ 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.
d) Operating loss ʹ refers to the excess of actual operating
expenses over actual operating income/ revenue.͟
The computation of savings for the CNA Incentive in GOCCs
and GFIs is illustrated in Annex ͞A.͟
$/$$( &
3.9.21.4.1 The CNA Incentive shall be sourced solelyfrom
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
cash allocation from the Department of Budget and
Management (DBM).
3.9.21.4.3 GOCCs/GFIs and LGUs may pay the CAN Incentive
from savings in their respective approved corporate
operating budgets or local government budgets.
3.9.21.4.4 NGAs shall submit to DBM a report on the
utilization of savings for the payment of the CNA Incentive.

Annex ͞A͟
4 

GOCC A, which meets the conditions in item 6.2 of this
Circular, may grant the CNA Incentive as illustrated
below and in Annex ͞A͟ of PSLMC Resolution No. 02, s. 2003:
Compliance with item 6.2.a) and 6.2.b) rate, meals and incidental travel expenses excluding
Particulars transportation expenses going to and from the destination.
(In Thousand Pesos) 3.9.22.1 Coverage Government personnel, both from the
Per Approved COB national and local governments
(Projection) 3.9.22.2 Rules and Regulations for Local Travel
As Audited Hereunder are the rules and regulations relative to local
(Actual) travels approved by the authorities concerned:
Variance 3.9.22.2.1 The travel expenses of government personnel
Operating income 150,000 150,000 0 regardless of rank and destination shall be P800 per day
Less: Operating Expenses (120,000) a/ (100,000) a/ 20,000 b/ which shall be apportioned as follows:
Net Operating Income 30,000 50,000 50% for hotel/lodging (P400)
20,000 30% for meals (P240 or P80 per meal)
Compliance with item 6.2.c) 20% for incidental expenses (P160)
(In Thousand Pesos) 3.9.22.2.2 Entitlement to travel expenses shall start only
I. Revenues: upon arrival at the place of destination and shall cease upon
Operating income 150,000 departure therefrom at the following percentages:
Non-operating income Particulars Percentage To cover
10,000 Arrival not later than 12 noon
Total income 160,000 100% Hotel/lodging (50%), meals
II. Expenses: (30%) and incidental expenses
Operating Expenses (20%)
Personal Services 30,000 40,000 * Arrival after 12 80% Hotel/lodging (50%), dinner noon (10%)
MOOE 40,000 46,000 ** and incidental expenses
Equipment Outlay 30,000 30,000 (20%)
Sub-total, Operating Expenses 100,000 a/ 116,000 Departure before 12 noon
Non-Operating Expenses: 30% Breakfast (10%) and incidental expenses (20%)
Non-Cash Expenses Departure after 12
5,000 noon and later
Others 5,000 40% Breakfast (10%), lunch (10%)
Sub-total, Non-Operating Expenses 10,000 and incidental expenses (20%)
Total Expenses 126,000 3.9.22.2.3 In case the local travel occurred only in one
III. Net Profit Before Income Tax 34,000 (1) day, e.g., an employee arriving at the place of destination
IV. Income Tax at 10:00 AM and leaves at 4:00 PM, he/she shall be entitled
8,000 only to 40% of the per day rate of P800 or P320, broken down
V. Net Profit After Income Tax 26,000 as follows: 10% for breakfast, 10% for lunch, and 20% for
Dividend Payable to the National Government (50%) 13,000 incidental expenses.
Notes: 3.9.22.2.4 Claims for reimbursement of actual travel expenses
* Including payment of the CNA Incentive in the amount of in excess of the prescribed rate of P800 may be allowed upon
P10 Million, net of P4 million to be retained by the GOCC/GFI certification by the head of the agency concerned as
** Including amount used for improvement of working absolutely necessary in the performance of an assignment
conditions which as an alternative may also be used for CNA and upon presentation of bills and receipts, provided that
incentive certification or affidavit of loss shall not be considered as
a/ Excluding payment of CNA Incentive appropriate replacement for the required bills and receipts.
b/ Amount to be used for CNA Incentive Distribution: (In 3.9.22.2.5 Claims for payment of expenses
thousand pesos) 20,000 Claims for payment of expenses due to travel/assignment to
Fifty percent (50%) CNA Incentive 10,000 places within the 50 kilometer radius from the last city or
Thirty percent (30%) for improvement of working 6,000 municipality covered by the Metropolitan
conditions and/or to be added as part of the CNA Incentive Manila Area in the case of those whose permanent official
Twenty percent (20%) to be retained by the GOCC/GFI 4,000 stations are in the Metropolitan Manila Area, or from the city
Total 20,000 or municipality wherein their permanent official stations are
$/$

!6 located in the case of those outside the Metropolitan Manila
Travel Expenses constitute the amounts authorized under Area, shall be allowed only upon presentation of proofs, duly
Executive Order (EO) No. 248, dated May 29, 1995 and EO supported by bills or invoices with official receipts of
No. 248-A, dated expenses incurred, that they stayed in their places of
August 14, 1995, as amended by EO No. 298, dated March 23, assignment for the whole duration of their official travels. If
2004, as recommended by the Travel Rates Committee they commute daily from the places of assignments to the
created under Section 72, Book VI of Executive Order No. places of residences or permanent official stations, they shall
292, the Administrative Code of 1987, to cover hotel/lodging 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 there
from 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.
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.
3.9.15 
*

0
=
7


 savings.
*

c
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



c







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
104 = Saturdays and Sundays in a regular year
10 = Legal holidays (per EO No. 292)
12 months/year
CF = --------------------------
[3 65 ʹ (104 + 10)] days/year
12 months
CF = --------------------------
251 days
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 = 1 day
--------------- x 1 month
0.0478087
month
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 builtin appropriations in cases
where claimants simultaneously request for fund releases.
Deficiencies in appropriations shall be charged against agency
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
ͻ Funds for the MLC shall be charged solely from savings of
government entities.
3.10 c
-
 
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:
Authorized Monthly Salary for the Position
Daily Wage Rate = -------------------------------------------------
22 days
3.10.1.2 Payment of the daily wage shall be in accordance
with the ͞No Work, No Pay͟ 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 ͞E͟ 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 duleaves
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 PAG-
IBIG Fund, vacation and sick leaves and the monetization
thereof, and payment of terminal leave benefits.
3.10.2 Funding Source
Funds for wages, allowances and other personnel benefits of
casual personnel and those of similar nature, including the
government͛s share in the Government Service Insurance
System (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 the agency
appropriations/budgets for personal services.
 than two part-time contracts with government at any one
Annex ͞E͟
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:
Months
(1)
Number of
Work Days
(2)
Daily Wage Rate
= P5,082
22 days
(3)
Aggregate Wage
For the Month*
(2) x (3) = (4)
(4)
January 22 P231 P5,082
February 20 231 4,620
October 23 231 5,313
* Based on the assumption that the number of work days is
equal to days actually worked
3.11 c



c



 Allowances (RATA) for contractual officials whose positions
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 (͞pakyaw͟), 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.
3.11.2.3 Contractual personnel shall not be allowed more
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 employees͛ 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
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 The data collected are tabulated, organized and processed
with the rules and regulations provided under item 3.9.5.2.14 statistically to obtain the desired information.
of this Chapter. Based on the compensation survey results, the DBM is guided
3.11.3 Funding Source in the determination of the prevailing rates of salaries,
Funds for the salaries, allowances, other personal benefits of allowances and other personnel benefits. Policy decisions are
contractual personnel, including the government͛s share in made as to the extent of adjustment of salary levels and
the GSIS retirement and life insurance premiums, health implementation of allowances and other personnel benefits,
insurance premiums, employees compensation insurance taking into consideration the following:
premiums and PAG-IBIG Fund contributions shall be charged ͻ statistical results of survey
against the lump-sum funds for the purpose under agency ͻ the government͛s ability to finance the compensation of its
appropriations/budgets for personal services. personnel on a sustainable basis; and
$=


 c



 ͻ other considerations such as standard cost of living,
The Compensation Plan should provide compensation which geographical location, etc.
can stand comparison with those in private industries and 
which can provide maximum benefit to the service so that 1
DDDDDDDDDDDDDDDDDDDDDDDDDD
the Philippine Government could retain its core of public 0 
>&DDDDDDDDDDDDDDDDDDDDDDD
servants. Thus, the Compensation Plan was established with Jan Feb March April May June July Aug Sep Oct Nov Dec Jan
maintenance mechanisms such that compensation issues Feb March April May June July Aug Sep Oct Nov Dec
brought about by changes in economic conditions, Prepared/Certified Correct: Approved:
employment conditions, policy decisions, administrative ______________________ _________________
reforms, etc., could readily be addressed without disrupting Administrative Officer Agency Head
the relationship between the Position Classification Plan and 3-75
the Compensation Plan. 



?
7
1 
2?13
3.12.1 Maintenance Mechanisms  

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-
$DDDDDDDD
3.12.1.1 Regular review of the compensation plan (@DDDDDD
To keep the Compensation Plan current so that it remains Period of Assignment
reasonable and competitive, the DBM reviews the salary (5)
schedule on a regular basis to identify problems brought Annex D
about by: Name of
ͻ inherent defects in the salary schedule reinforced by special Personnel
salary adjustments to specific groups of government (1)
personnel which eventually create salary problems that may Unique
disturb salary relationships of positions; Item
ͻ inflation, changes in the working environment and in the Number
organization which eventually make the rules and rates of (2)
certain fringe benefits unrealistic; Position
ͻ new rulings and decisions of courts and quasijudicial bodies Title and
which need to be harmonized and/or rationalized with the Salary
existing compensation rules and regulations; Grade
ͻ enactment of laws providing special compensation to (3)
special groups; Work
ͻ changes in the number of years of academic requirements; Area
ͻ budgetary constraints; and (4)
ͻ other factors. HDP Paid
The regular review of the salary schedule, salary rules, rules (6) Total
and regulations on the grant of allowances and other Amount
personnel benefits enables the DBM to adopt appropriate (7)
measures to ensure that the compensation plan is updated 
and pay equity is maintained. 


3.12.1.2 Compensation Survey 4

The DBM conducts compensation surveys as often as Republic Act No. 6758,
economic conditions affect general salary/wage levels. August 21, 1989
Through the compensation survey, information about An Act Prescribing a Revised Compensation and Position
compensation levels and practices in selected private firms Classification System in the Government and for Other
are gathered using benchmark positions existing in both the Purposes
public and private sectors. The survey may be by occupation National Compensation
or by industry, and may be conducted by geographical area. Circular No. 56, September
30, 1989
Rules and Regulations on the Standardization of No. 448, series of 1996,
Compensation and Position Classification Plan in the January 2, 1996
Government Guidelines for the Third Year Implementation of the New
National Compensation Salary Schedule in the Government
Circular No. 59, September Executive Order No. 389,
30, 1989 December 28, 1996
List of Allowances/Additional Compensation of Implementing the Fourth and Final Year Salary Increases
Government Officials and Employees Which Shall Be Authorized by Joint Senate and House of Representatives
Deemed Integrated Into the Basic Salary Resolution No. 1, series of 1994
Corporate Compensation National Budget Circular
Circular No. 10, October 2, No. 458, series of 1997,
1989 and February 15, January 2, 1997
1999 Guidelines for the Full Implementation of the New Salary
Rules and Regulations for the Implementation of the Schedule in the Government
Revised Compensation and Position Classification Plan in Executive Order No. 219,
Government-Owned and/or -Controlled Corporations and March 20, 2000
Government Financial Institutions (GOCCs/GFIs) Grant of Salary Adjustment to All Government Personnel
Joint Senate-House of National Budget Circular
Representatives Resolution No. 468, March 21, 2000
No. 1, s. 1994, March 7, Guidelines for the Grant of Ten Percent (10%) Salary
1994 Adjustment to All Government Personnel Effective
Joint Resolution Urging the President of the Philippines to January 1, 2000
Revise the Existing Compensation and Position Executive Order No. 22,
Classification System in the Government and to June 27, 2001
Implement the Same Initially Effective January 1, 1994 Grant of Salary Adjustment to All Government Personnel
Executive Order No. 164, National Budget Circular
March 7, 1994 No. 474, June 15, 2001
Adopting a Revised Compensation and Position Guidelines for the Grant of Five Percent (5%) Salary
Classification System in the Government Adjustment to All Government Personnel Effective July 1,
National Compensation 2001
Circular No. 72, March 9, 4
1994 4

Guidelines for the Initial Implementation of the Revised Civil Service Commission and Department of Budget and
Compensation and Position Classification System Management Joint
Executive Order No. 218, Circular No. 1, s. 1990,
January 1, 1995 March 29, 1990
Second Year Implementation of the New Salary Schedule Rules and Regulations Governing the Grant of Step
in the Government Increments to Deserving Officials and Employees of the
National Compensation Government
Circular No. 74, January 2, Civil Service Commission and Department of Budget and
1995 Management Joint
Guidelines for the Second Year Implementation of the Circular No. 2, s. 1991,
New Salary Schedule in the Government July 5, 1991
Corporate Compensation Amending Section 1, Rule I of the Joint CSC-DBM Circular
Circular No. 11, series of No. 1, s. 1990
1996, January 15, 1996 Civil Service Commission and Department of Budget and
Rules and Regulations for the Implementation of the Management Joint
Revised Compensation and Position Classification Plan in Circular No. 1-2003, April
Government-Owned and/or Controlled Corporations and 11, 2003
Government Financial Institutions (GOCCs/GFIs) Amending Further Joint CSC-DBM Circular No. 1, s. 1990
Executive Order No. 290, (Entitlement to Step Increment)
January 2, 1996 =




c



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Third Year Implementation of the New Salary Schedule in the 3-116
Government 
!




 c



 4

3- 115 Budget Circular No. 4,
4
 June 28, 1991
National Budget Circular Grant of Personnel Economic Relief Allowance to All
Employees of the Government Increase in the Additional Compensation
Budget Circular No. 4-A, +
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 &


July 1, 1991 4

Grant of Personnel Economic Relief Allowance (PERA) to Budget Circular No. 2003-
All Employees of the Government 8, December 8, 2003
Circular Letter No. 95-9, series of 1995, December Rules and Regulations on the Grant of Uniform/Clothing
15, 1995 Allowance (U/CA) to All Government Personnel for FY
Grant of Personnel Economic Relief Allowance (PERA) to 2004 and Years Thereafter
Substitute Teachers Budget Circular No. 2003-
Budget Circular No. 4-B, series of 1996, February 2, 8A, July 2, 2004
1996 Rules and Regulations on the Grant of Uniform/Clothing
Amending Budget Circular No. 4 Dated June 28, 1991 Allowance (U/CA) to All Government Personnel for FY
Relative to the Grant of Personnel Economic Relief 2004 and Years Thereafter
Allowance to All Employees of the Government 









Budget Circular No. 12, 4

April 7, 1997 National Compensation
Updated Rules and Regulations on the Grant of Personnel Circular No. 67, January 1,
Economic Relief Allowance (PERA) and Expansion of 1992
Coverage to Include All Employees of the Government Representation and Transportation Allowances of


c


 National Government Officials and Employees
4
 National Compensation
Administrative Order No. Circular No. 67-A, May 15,
53, May 17, 1993 1992
Implementing the Grant of Additional Compensation in Amending National Compensation Circular No. 67 Dated
the Amount of P500.00 Per Month to Public School January 1, 1992 Relative to the Representation and
Teachers, and Uniformed Personnel of the Philippine Transportation Allowances of National Government
National Police and the Armed Forces of the Philippines, and Officials and Employees
Extending the Benefit to the Rest of the Personnel of the National Budget Circular
Government Administrative Order No. No. 450, March 5, 1996
76, August 17, 1993 Representation and Transportation Allowances of
Clarifying the Implementation of the Grant of Additional Contractual Personnel
Compensation in the Amount of P500.00 Per Month to National Budget Circular
Contractual Personnel of the Government and to Local No. 454, October 14, 1996
Officials and Employees Guidelines on the Grant of the Monthly Cash Equivalent
Budget Circular No. 15, of the Transportation Allowance Authorized Under the
March 5, 1998 Annual General Appropriations Act
Compensation and Additional Benefits of Suspended Corporate Budget Circular
Government Personnel No. 18, November 14,
Budget Circular No. 17, 2000
February 24, 1999 Guidelines for the Implementation of the Revised Rates
Extending the Grant of P500 Per Month Additional of Representation and Transportation Allowances (RATA)
Compensation (ADCOM) to Government Personnel of Officials in Local Water Districts (LWDs)
Allocated to Salary Grade 26 and Above Administrative Order =




c



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No. 144, February 28, 2006 3-118
Granting Additional Compensation in the Amount of One 4

Thousand Pesos (P1,000.00) Per Month to All Employees National Compensation
of the National Government Circular No. 67-B, August
 c



 8, 2002
3- 117 Further Amending National Compensation Circular No. 67
4
 Dated January 1, 1992 Relative to the Representation and
Budget Circular No. 2006- Transportation Allowances of National Government
2, March 2, 2006 Officials and Employees
Rules and Regulations on the Increase in the Additional National Budget Circular
Compensation of Government Employees No. 498, April 1, 2005
Budget Execution Revised Rates of Representation and Transportation
Guidelines No. 2006-8, Allowances (RATA)
March 3, 2006 @
8!0
 
c
 
Specific Guidelines on the Release of Funds for the 4

Executive Order No. 74, April 24, 1997
November 26, 1986 Amending Budget Circular (BC) No. 11, Dated October
Granting Year-End Bonus and Cash Gift to National and 31, 1996 Relative to the Grant of Year-End Bonus and
Local Government Officials and Employees Cash Gift and Advance Payment of One-Half (1/2)
Executive Order No. 74-A, Thereof for FY 1996 and Years Thereafter
December 19, 1986 Republic Act No. 8441,
Expanding the Coverage of the Year-End Bonus December 22, 1997
Republic Act No. 6686, An Act Increasing the Cash Gift to Five Thousand Pesos
December 14, 1988 (P5,000.00), Amending for the Purpose Certain Sections
An Act Authorizing Annual Christmas Bonus to National of Republic Act Numbered Six Thousand Six Hundred
and Local Government Officials and Employees Starting Eighty-Six and for Other Purposes
CY 1988 Budget Circular No. 11-B,
Administrative Order No. March 30, 1998
57, June 1, 1993 Amending Further Budget Circular (BC) No. 11, Dated
Prescribing the Guidelines for the Advance Payment of October 31, 1996 Relative to the Grant of Year-End
One-Half (1/2) of the Amount of the Christmas Bonus Bonus and Cash Gift and Advance Payment of One-Half
and Cash Gift for CY 1993 Under R.A. No. 6686 to (1/2) Thereof for FY 1996 and Years Thereafter
Government Personnel Budget Circular No. 15,
National Compensation March 5, 1998
Circular No. 70, November Compensation and Additional Benefits of Suspended
8, 1993 Government Personnel
Grant of the Balance of One-Half Month Year-End Bonus Budget Circular No. 2000-
and Cash Gift for Calendar Year 1993 to Government 18, September 6, 2000
Officials and Employees Including Those in Government- Grant of Year-End Bonus and Cash Gift and Advance
Owned and/or Controlled Corporations and Financial Payment of One-Half (1/2) Thereof for FY 2000 and
Institutions and Local Government Units Years Thereafter
Administrative Order No. Circular Letter No. 2002-
132, June 8, 1994 14, June 25, 2002
Prescribing the Guidelines for the Loan of One-Half (1/2) Clarification on the Service Requirement for Entitlement
of the Amount of the Christmas Bonus and Cash Gift for to Year-End Benefits (YEB)
CY 1994 Under R.A. No. 6686 to Government Personnel Circular Letter No. 2003-
Budget Circular No. 5, 10, October 17, 2003
October 14, 1994 Prohibition on the Grant of Additional Bonuses in Any
Grant of Year-End Bonus and Cash Gift for CY 1994 Form
Budget Circular No. 5-A, Budget Circular No. 2003-
December 16, 1994 2, May 9, 2003
Grant of Year-End Benefits for CY 1994 Liberalization of the Rules and Regulations on the
Administrative Order No. Payment of Year-End Bonus and Cash Gift
195, May 30, 1995 Budget Circular No. 2005-
Authorizing the Grant of an Interest-Free Loan to 6, October 28, 2005
Government Personnel in CY 1995 and Years Thereafter Updated Rules and Regulations on the Grant of the Year-
 c



 End Bonus and Cash Gift to Government Personnel for FY
3- 119 2005 and Years Thereafter
4
 =




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Budget Circular No. 7, 3-120
November 2, 1995 
 
4
0
Grant of Year-End Bonus and Cash Gift for FY 1995 and 4

Years Thereafter Administrative Order No.
Circular Letter No. 12-96, 268, February 21, 1992
May 3, 1996 Rationalizing the Grant of Productivity Incentive Benefits
Grant of an Interest-Free Loan to Government Officials for Calendar Year 1991 to All Personnel of Government
and Employees Agencies
Budget Circular No. 11, National Budget Circular
October 31, 1996 No. 426, April 1, 1992
Grant of Year-End Bonus and Cash Gift and Advance Grant of Productivity Incentive Benefits to Officials and
Payment of One-Half (1/2) Thereof for FY 1996 and Employees of the Government
Years Thereafter Administrative Order No.
Budget Circular No. 11-A, 103, January 14, 1994
Authorizing the Grant of CY-1993 Productivity Incentive Amending Memorandum Order No. 228, Prescribing
Benefits to Government Personnel and Prohibiting Guidelines Governing the Rendition and Payment of
Payments of Similar Benefits in Future Years Unless Duly Overtime Services of Government Personnel
Authorized by the President Budget Circular No. 10,
Administrative Order No. March 29, 1996
161, December 6, 1994 Prescribing and Updating the Guidelines and Procedures
Prescribing a Standard Incentive Pay System Based on on the Rendition of Overtime Services With Pay of
Productivity and Performance, for All Officials and Government Personnel
Employees of the Government, National and Local c


8 
Including Those of Government-Owned and/or 4

ʹControlled Corporations and Government Financial Administrative Order No.
Institutions and for Other Purposes 103, August 31, 2004
National Compensation Directing the Continued Adoption of Austerity Measures
Circular No. 71, January in the Government
19, 1994 Civil Service Commission
Grant of Productivity Incentive Benefits to Officials and and Department of Budget
Employees of the Government and Management Joint
National Compensation Circular No. 2, series of
Circular No. 73, December 2004, October 4, 2004
27, 1994 Non-Monetary Remuneration for Overtime Services
Grant of Productivity Incentive Benefit (PIB) for CY 1994 Rendered
and Years Thereafter Civil Service Commission
National Compensation and Department of Budget
Circular No. 73-A, March 1, and Management Joint
1995 Circular No. 2-A, s. 2005,
Supplementing National Compensation Circular No. 73 July 1, 2005
Dated December 27, 1994 on the Grant of Productivity Amendments to CSC-DBM Joint Circular (JC) No. 2, s.
Incentive Benefits (PIB) for CY 1994 and Years 2004 re: Non-Monetary Remuneration for Overtime
Thereafter Services Rendered
Circular Letter No. 3-96, 1
series of 1996, January 15, 4

1996 Executive Order No. 389,
Grant of Productivity Incentive Benefit (PIB) for CY 1995 December 30, 1989
Circular Letter No. 3-97, Authorizing Officials and Employees of the Regular
January 31, 1997 Agencies/Offices of the National Government and of
Grant of Productivity Incentive Benefit (PIB) for FY 1996 Other Government-Owned and/or Controlled Corporations to
and Years Thereafter Adopt the Rates of Per Diem and Allowances as
Circular Letter No. 2001-6, Authorized Pursuant to Executive Order No. 151 Dated
March 2, 2001 4

Grant of Productivity Incentive Benefit March 19, 1987, as Implemented by National Budget
Circular Letter No. 2002-3, Circular No. 391 Dated October 6, 1987, as Amended,
January 2, 2002 and Ratifying for the Purpose All Previous Payments Made
Additional Guidelines on the Grant of Productivity by National Government Agencies/Offices Pursuant to the
Incentive Benefit (PIB) Said Issuances
 c



 Budget Circular No. 2003-
3- 121 6, September 29, 2003


 Guidelines Relative to the Grant of Per Diems to Members
4
 of Collegial Bodies and Members of the Board of
Memorandum Order No. Regents/Trustees of State Universities and Colleges
228, March 29, 1989 ?




Prescribing Guidelines Governing the Rendition and 4

Payment of Overtime Services of Government Personnel Compensation Policy
National Budget Circular Guidelines No. 98-1, March
No. 410, April 28, 1989 23, 1998
Rules and Regulations Implementing Memorandum Order National Government Officials Entitled to Honoraria
No. 228 on the Rendition of Overtime Services With Pay Chargeable Against Local Funds
Memorandum Order No. Budget Execution
227, August 26, 1994 Guidelines No. 2004-1,
January 8, 2004 4

Updated Rules and Regulations on the Grant of Additional Republic Act No. 7305,
Allowance and Other Benefits to National Government March 26, 1992
Officials/Employees Assigned to Local Government Units Magna Carta of Public Health Workers
Budget Circular No. 2003- 4

5, September 26, 2003 November 1999 Revised Implementing Rules and Regulations
Prescribing Guidelines on the Grant of Honoraria to for Public
Government Personnel for FY 2003 and onwards Health Workers
?







4


 

0
 


 4


  Administrative Order No.
4
 263, March 28, 1996
Budget Circular No. 2004- Authorizing the Grant of Anniversary Bonus to Officials
5, March 23, 2004 and Employees of Government Entities
Guidelines on the Grant of Honoraria to Government National Budget Circular
Personnel Involved in Government Procurement No. 452, May 20, 1996
Budget Circular No. 2004- Amplifying and Clarifying the Implementation of the
5A, October 7, 2005 Grant of Anniversary Bonus to Officials and Employees of
Guidelines on the Grant of Honoraria to Government Government Entities
Personnel Involved in Government Procurement c

-&


&4

-& 8 1

 4

4
 Executive Order No. 180,
Budget Circular No. 8, June 1, 1987
Series 1995, December 4, Providing Guidelines for the Exercise of the Right to
1995 Organize of Government Employees, Creating a Public
Prescribing Guidelines and Procedures for the Grant of Sector Labor-Management Council and for Other
Night-Shift Differential Pay to Government Employees Purposes
 c



 Public Sector Labor-
3- 123 Management Council
?
7
1 
 Resolution No. 04, s. 2002,
4
 November 14, 2002
Budget Circular No. 2005- Grant of Collective Negotiation Agreement (CNA)
4, July 13, 2005 Incentive for National Government Agencies, State
Rules and Regulations on the Grant of Hazard Duty Pay Universities and Colleges and Local Government Units
 

 Public Sector Labor-
4
 Management Council
Republic Act No. 7305, Resolution No. 02, s. 2003,
March 26, 1992 May 19, 2003
Magna Carta of Public Health Workers Grant of Collective Negotiation Agreement (CNA)
November 1999 Revised Implementing Rules and Regulations Incentive for Government Owned or Controlled
for Public Corporations (GOCCs) and Government Financial
Health Workers Institutions (GFIs)
*


 Public Sector Labor-
4
 Management Council
Republic Act No. 7305, Resolution No. 02, s. 2004,
March 26, 1992 September 28, 2004
Magna Carta of Public Health Workers Approving and Adopting the Amended Rules and
November 1999 Revised Implementing Rules and Regulations Regulations Governing the Exercise of the Right of
for Public Government Employees to Organize
Health Workers Executive Order No. 135,
(9

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 December 27, 2005
4
 Authorizing the Grant of Collective Negotiation
National Budget Circular Agreement (CNA) Incentive to Employees in Government
No. 456, November 11, Agencies
1996 Budget Circular No. 2006-
Guidelines on the Provision of Free Quarters to Certain 1, February 1, 2006
Officials Grant of Collective Negotiations Agreement (CNA)
(9

&?

 Incentive


!6 1, January 14, 2002
4
 Computation and Funding of Terminal Leave Benefits and
Executive Order No. 248, Monetization of Leave Credits
May 29, 1995 c



c







Prescribing Rules and Regulations and New Rates of -
 4

Allowances for Official Local and Foreign Travels of Budget Circular No. 2003-
Government Personnel 4, September 26, 2003
Executive Order No. 248-A, Rules and Regulations on the Computation and Payment of
August 14, 1995 Daily Wage
Amending Executive Order No. 248 Dated May 29, 1995, Note:
Which Prescribes Rules and Regulations and New Rates Compensation Policy Guidelines and Budget Execution
of Allowances for Official Local and Foreign Travels of Guidelines are only for internal use of DBM technical staff.
Government Personnel c

Executive Order No. 298,
March 23, 2004

c 


Amending Further Executive Order No. 248 Dated May
 
29, 1995 as Amended by Executive Order No. 248-A 

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Dated August 14, 1995, Which Prescribes Rules and

Regulations and New Rates of Allowances for Official
$1

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Local and Foreign Travels of Government Personnel
The Department of Budget and Management (DBM) is the

*

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primary government agency responsible for the formulation
4

and implementation of the National Budget through the
Civil Service Commission and Department of Budget and
efficient and sound utilization of government funds and
Management Joint
resources for the attainment of the country͛s development
Circular No. 1, s. 1991,
objectives. One of the major functions of the DBM to fulfill its
June 27, 1991
mandate is the development, administration and
Rules and Regulations Governing the Monetization of
maintenance of a unified government Position Classification
Leave Credits of Government Officials and Employees
and Compensation System (PCCS). It carries this out
Civil Service Commission Memorandum Circular No.
principally through the Organization, Position
31, s. 1991, July 23, 1991
Classification and Compensation Bureau (OPCCB), Budget and
Guidelines in the Application for Monetization of Leave
Management Bureaus (BMBs) and DBM Regional Offices
Credits and the Computation of the Money Value of the
(DBM-ROs).
Ten (10) Days Monetized Leave Credits
Below are the pertinent functions of each bureau/office in so
Civil Service Commission
far as the PCCS is concerned.
and Department of Budget
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and Management Joint
0 

Circular No. 2-97, June 25,
4.1.1.1 Administer and maintain the PCCS;
1997
4.1.1.2 Develop standards, guidelines, rules and regulations
Amendatory Rules and Regulations Governing the
on organization, staffing, and classification and compensation
Monetization of Leave Credits of Government Officials
of positions;
and Employees
4.1.1.3 Render advice to or process requests of government
Civil Service Commission
entities referred by DBM offices, or by other government
Memorandum Circular No.
offices on organization, staffing, position classification and
41, s. 1998, December 24,
compensation matters;
1998
4.1.1.4 Maintain, update and enforce position classification
Amendments to Rules I and XVI of the Omnibus Rules
and compensation policies and standards;
Implementing Book V of the Administrative Code of 1987
4.1.1.5 Monitor government manpower levels and maintain a
(Executive Order 292)
comprehensive database on government positions and
Civil Service Commission
compensation through the Government Manpower
Memorandum Circular No.
Information System (GMIS);
14, s. 1999, August 23,
4.1.1.6 Establish the government-wide budgetary
1999
requirements for personal services and associated budgetary
Additional Provisions and Amendments to CSC
items for inclusion in the annual national budget;
Memorandum Circular No. 41, s. 1998
4.1.1.7 Prepare recommendations/position papers on
=




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legislative proposals/bills and proposed executive issuances
3-126
with policy and government-wide implications on
4

organization, staffing and position classification and
Budget Circular No. 2002-
compensation;
4.1.1.8 Conduct training programs in the field of organization,
staffing position classification and compensation;
4.1.1.9 Conduct compensation surveys in private industry to
determine prevailing rates of pay for comparable positions in
the government; and
4.1.1.10 Perform other related functions as may be provided
by law.
$$0 &
=

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20=038!
4.1.2.1 Evaluate and process organization, staffing, position
classification and compensation proposals of government
agencies under their coverage;
4.1.2.2 Establish agency-specific annual budgetary
requirements for personal services and associated budgetary
items for inclusion in the annual national budget;
4.1.2.3 Conduct position audits in government agencies to
ascertain the duties and responsibilities of positions, as
necessary;


4.1.2.4 Provide technical assistance to government agencies
under their coverage on organization, staffing, position
classification and compensation matters; and
4.1.2.5 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

" &1
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implications.
$$ 10=&

  4.3.1 A well maintained PCCS would proactively address all
4.1.3.1 Evaluate and process position classification and
compensation proposals of government entities delegated to
DBM-ROs;

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 cc the times, the DBM enlists the full support of agencies
4-3
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;
4.1.3.3 Conduct position audits in delegated government
entities to ascertain the duties and responsibilities of
positions, as necessary;
4.1.3.4 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



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4.1.3.5 Provide technical assistance to government entities
delegated to DBM-ROs on organization, staffing, position


classification and compensation matters.



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The head of the department, bureau, office or agency shall:




4.2.1.1 Ensure compliance by all concerned with the rules and
regulations on position classification and compensation;
4.2.1.2 Prescribe the duties and responsibilities of each
employee in accordance with the approved classification of
the position; and
4.2.1.3 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.
$$ 

 
!" 

  Chairman, Constitutional Commission 31
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);
4.2.2.2 Review the accomplished PDF for completeness;
4.2.2.3 Indicate BMB/DBM-RO classification action on the
agency copy of the PDF and in the Personal Services
Itemization and Plantilla of Personnel (PSIPOP);
4.2.2.4 Prepare position classification and compensation
reports as required by the DBM; accomplish and update the
PSIPOP; and
4.2.2.5 Keep and maintain official position classification and
compensation records.
$$ 4
 
The immediate supervisor shall:
4.2.3.1 Assign to the incumbent the duties and
responsibilities used as basis for the classification of the
incumbent͛s position; and
4.2.3.2 Review the PDF of employees for consistency with
actual duties and responsibilities.
$ 
10=
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
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.
c
#






  

 !" 
#$



Under RA No. 6758, the salary grades of positions of
constitutional officials are as follows:



President 33
Vice-President 32
President of the Senate 32
Speaker of the House of Representatives 32
Chief Justice of the Supreme Court 32
Senator 31
Member of the House of Representatives 31
Associate Justice of the Supreme Court 31
Commissioner, Constitutional Commission 30 Heads of councils, commissions, boards and similar entities
#$






!" 


: whose operations cut across sectors or are serving a sizeable
The Department of Budget and Management (DBM) portion of the general public and which coverage are
determines the positions that are of equivalent ranks to any nationwide or whose functions are comparable to the
of the foregoing officials based on the following guidelines: aforecited positions, may be placed at this level.
5.2.1 Salary Grade 33 - This Salary Grade is assigned to the 5.2.5 The salary grades of positions not mentioned herein or
President of the Republic of the Philippines as the highest those that may be created shall be determined based on the
position in the government. No other position in the above guidelines.
government service is considered to be of equivalent rank. c
%
5.2.2 Salary Grade 32 - This Salary Grade is assigned to the
Vice- President of the Republic of the Philippines and to


c



c



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.
There is no distinction between the duties of one teaching
5.2.3 Salary Grade 31 - This Salary Grade is assigned to
position and those of other teaching positions. All are
Senators, and Members of the House of Representatives and
involved in classroom teaching. Hence, teaching positions are
those of equivalent rank. The following are examples of
classified based on the personal qualifications of the
positions of equivalent rank:
incumbents thereof rather than based on the preponderant
ͻ Executive Secretary;
duties and responsibilities and qualification requirements of
ͻ Department Secretary;
the positions. This concept deviates from existing standards
ͻ Presidential Spokesman;
that work assignments determine the classification and pay
ͻ Ombudsman;
levels of positions. The deviation is made in the case of
ͻ Press Secretary;
teachers to encourage and reward initiatives for professional
ͻ Presidential Assistant II;
growth which are vital in a dynamic educational system. The
ͻ Presidential Adviser;
progression to a higher position level, which does not entail
ͻ Director-General (National Economic and Development
an increase in duties and responsibilities, recognizes the
Authority);
increase in the academic preparation level.
ͻ Presiding Justice, Court of Appeals;
%$ 
 E



  23
ͻ Presiding Justice, Sandiganbayan;
The TPPS is the position classification and compensation
ͻ Secretary of the Senate;
scheme for teaching positions in elementary and secondary
ͻ Secretary-General of the House of Representatives; and
schools. It similarly applies to guidance
ͻ UP President.
counselors/coordinators, school librarians who are similarly
A position, other than ex-officio, which heads an entity that
assigned teaching loads. It does not cover school nurses,
can be considered organizationally equivalent to a
school physicians, school dentists and other school
Department by reason of its broad functional scope of
employees.
operations and wide area of coverage ranging from top level
%$c


 
policy formulation to the provision of technical and
%$$c


&
administrative support to the units under it, can be
The TPPS applies to the following classes of positions:
considered as of equivalent rank to a Department Secretary.
c
*




5.2.4 Salary Grade 30 - Examples of positions included in this
Teacher I, II, III 10, 11,12
Salary Grade are the following:
Master Teacher I, II, III, IV 16,17,18,19
ͻ Department Undersecretary;
Head Teacher I, II, III, IV, V, VI 13,14,15,16,17,18
ͻ Presidential Assistant I;
Special Education Teacher I, II, III, IV, V 13,14,15,16, 17
ͻ Solicitor-General;
Special Science Teacher I, II, III, IV, V 13,16,19,22, 24
ͻ Government Corporate Counsel;
Guidance Counselor I, II, III 10,11,12
ͻ Court Administrator of the Supreme Court;
Guidance Coordinator I, II, III 13,14,15
ͻ Chief of Staff (Office of the Vice-President);
School Farming Coordinator I, II, III 13,14,15
ͻ Deputy Director-General (National Economic and
Vocational Instruction Supervisor I, II, III 16,17,18
Development Authority);
It also applies to certain classes of positions in the Library
ͻ Deputy Ombudsman;
Services Group which have at least one teaching load:
ͻ Associate Justice, Court of Appeals;
c
*




ͻ Associate Justice, Sandiganbayan;
School Librarian I, II, III 10,11,12
ͻ Special Prosecutor;
The TPPS does not apply to Librarian positions not assigned in
ͻ UP Executive Vice-President; and
schools.
ͻ SUC President IV.
%$$0

c






The Department of Education (DepEd), in consultation with Instruction
the Department of Budget and Management (DBM), Supervisor I,
maintains the TPPS, as shown below: SG-16
 



 E



 Vocational

 Instruction
0!F0!G.FF=FFF Supervisor II,
Library SG-17
Services Vocational
School Librarian I, Instruction
SG-10 Supervisor III,
School Librarian II, SG-18
SG-11 * Bachelor of Science in Education or equivalent
School Librarian ** Bachelor of Science in Education or equivalent plus 20
III, SG-12 units in Master of
Teacher I, SG-10 Teacher II, SG-11 Teacher III, SG-12 Arts or 20 years of teaching at Level I or Level IV in the case of
Head Teacher I, Head
SG-13 Teachers
Head Teacher II, *** Master of Arts
SG-14 c



c


 

 &
Head Teacher III, 


SG-15 !






School, 6-3
College and %$$$(


c






University Under the TPPS, the classification of the teaching positions
Teaching and others similarly covered are in accordance with the
Head Teacher IV, principle of ͞equal pay for equal work, training and
SG-16 experience.͟ The classification of such positions are
Head Teacher V, determined based on:
SG-17 6.2.2.1.1 academic or educational preparation;
Head Teacher VI, 6.2.2.1.2 teaching experience including those in private
SG-18 schools; and
Special Education 6.2.2.1.3 extra-curricular activities for professional
Teacher I, growth.
SG-13 %$$$



" 
Special Education The minimum requirements for the classification of positions
Teacher II, to the levels established for each class of positions are as
SG-14 follows:
Special Education 6.2.2.2.1 Level I, e.g., Teacher I, School Librarian I -
Teacher III, Bachelor of Science in Education degree or equivalent;
SG-15 6.2.2.2.2 Level II, e.g., Teacher II, Guidance Counselor
Guidance II - Bachelor of Science in Education degree
Counselor I, or equivalent, plus 20 graduate units; and
SG-10 6.2.2.2.3 Level III, e.g., Teacher III, School Librarian
Guidance Counselor III, Guidance Counselor III - Master͛s degree or equivalent.
II, SG-11 %$$$!" 




!" 


Guidance The DepEd, in consultation with the DBM, establishes
Counselor III, ͞equivalents͟ to the academic preparation prerequisites
SG-12 and defines the ͞area of equivalents͟ and the corresponding
School Farming units or points. The existing equivalents and areas of
Coordinator I, equivalents are as follows:
SG-13 6.2.2.3.1 Table of Equivalents
School Farming 0




Coordinator II, c
&
4
SG-14 (Equivalent Titles
School Farming or Degrees)
Coordinator III, c
&
44
SG-15 (Years of
Vocational Teaching)
c
&
 or equivalent
444 with at least 20
(Credit graduate units
Allowances) plus 20 years of
(
*
4 teaching experience
Bachelor͛s degree Bachelor͛s degree
for teachers for teachers
(BSE, BSEE, etc.) or equivalent
1(a) Bachelor of with at
Pedagogy, Bachelor least 20 graduate
in Library units,
Science, Bachelor plus credit allowances.
of Science in The
Nursing, etc. total of graduate
Teacher͛s Certificate units
(2 or 3 years) or equivalent with at least 20 years teaching and credit allowances
experience 148 or more units (according to major or minor should
subject) be equal to the
(b) All other number of
Bachelor͛s degree units required
courses plus to graduate
at least 18 with an MA
professional education degree.
units 6.2.2.3.2 Table of Areas of Equivalents
(
*
44 




Bachelor͛s degree +
c
for teachers plus 1. Formal Training 1 unit per academic
20 years teaching unit
experience 2. Service in professional committees
(BSE+20) a. Workshop, seminar,
2(a) Courses in conference, etc
No. 1(a) above b. Special assignment from
plus 20 graduate the Director to perform
units special educational
Bachelor͛s degree activity (assignment by
for teachers detail excluded)
or equivalent 1 unit per 25 hours
with at least 20 1 unit per
years teaching assignment of not
experience less than 30 hours
Bachelor͛s degree 3. Educational travel not for
for teachers study purposes (report to
plus at be submitted and
least 20 units evaluated)
of credit allowances 2 units per 6
(b) Courses in months
No. 1(b) above 4. Work experience
with at least 18 a. Trade (must be
professional education functionally related to
units plus school assignment)
20 graduate units b. Camp counselor
(
*
444 5 units per year
Master͛s degree 1 unit per 2-week
in Education camping
Master of Science/ 5. In-service training on the
Arts national level
Bachelor͛s degree a. Boy Scouting for scout
for teachers masters
b. Public administration or 6.2.2.4.2 The processing of the ERF involves the following
educational supervision steps:
1 unit per training ͻ Role of the DepEd
period ´ The filling of the ERF can be initiated either by the schools
1 unit per training division (SD) or the teacher concerned.
period SD Initiative
6. Teaching experience with 1. The SD shall identify teachers with 20 or more years of
paid service teaching experience, evaluatethe duly certified service
a. Public school records, prepare the
b. Government summer Certification as to the names of qualified teachers, and
school inform the teacher concerned that such submission has been
c. Private school prior to made on his/her behalf.
assignment in public 2. In case of approval, the SD shall determine whether or not
school the approved ERF is within the cut-off date. In case of
1 unit per 3 years disapproval, the teacher shall be informed by the SD
½ unit per 3-unit concerned. Teachers retiring during the year are not covered
course by the cutoff dates.
1 unit per 5 years 3. If within the cut-off date, the SD shall prepare a request for
d. Private school courses ERF implementation which shall be endorsed and submitted
different from subjects together with the duly certified service records and
taught in public schools Certification as to the names of qualified teachers by the
1 unit per 3 unit DepEd Regional Office (RO) to the DBM ROconcerned.
course, ½ unit per 4. Upon receipt of the Notice of Organization, Staffing and
annual high school Classification Action (NOSCA), the DepEd RO shall prepare the
subject Notices of Salary Adjustment (NOSA) and the necessary
7. Authorship of educational adjustment to the salaries of the teachers concerned.
material excluding thesis 5. The SD shall issue the NOSA to the teacher concerned.
and dissertations used to Teacher͛s Initiative
obtain a Master͛s or 1. A teacher who has rendered less than 20 years of service
Doctor͛s degree but has earned 20 masteral units shall prepare and submit
5 units his/her ERF to the SD.
8 Administrative and supervisory 2. The ERF shall be evaluated by the SD and post-audited by
experience the DepEd RO concerned to determine whether or not it
a. Public school meets the required points.
b. Private school 3. The teacher shall be duly informed by the DepEd RO
1 unit per 2 years through the SD whether his/her ERF is approved or
1 unit per 4 years disapproved.
%$$$ !" 


(
2!(3 4. Consequently, steps 2 to 5 of the SD Initiative are taken.
6.2.2.4.1 The ERF is a tool for determining the appropriate ´ The flow chart for the processing of ERFs is shown in
classification of a Teacher position. It reflects the educational Annexes A and A-I of this Chapter.
preparation, training, teaching experience, workshop and ͻ Role of the DBM
seminars for professional growth undertaken by a teacher. ´ The DBM RO shall determine whether or not there are
ͻ The ERF contains information on position title, unique item available funds for the implementation thereof. If none, the
number and authorized salary in the current Personal same shall be returned to the DepEd RO with the information
Services Itemization and Plantilla of Personnel (PSIPOP). that the reclassification may be considered in the next budget
ͻ Credits claimed as to educational preparation, years of cycle.
teaching experience in public or private schools and ´ If there are available funds, the DBM RO shall prepare the
professional activities shall be itemized and supported either corresponding NOSCA and issue the same to the DepEd RO.
by the original or certified true copy of the teacher͛s special The salary adjustmentaccruing to the teachers concerned
orders, diploma or transcript of records. shall be charged against the lump-sum for ERF
The authenticity of the documents such as educational implementation.
preparation and seminars attended shall be certified by the 6.2.2.4.3 Specific Compensation Guidelines for Teachers with
school registrar and the director of training, respectively. Approved ERFs
ͻ The allowable credits are computed on the basis of the 6.2.2.4.3.1 Movement in position level due to the
Table of Equivalents. implementation of the ERF is considered as reclassification,
ͻ The educational preparation, teaching experience and which simultaneously partaking the nature of promotion.
credits allowed are matched with corresponding category in 6.2.2.4.3.2 Allowable salaries of teachers with approved ERFs
the preparation and classification levels of the TPPS. 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

rd
P11,068 per month (3 step)
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.
%$c

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  materials.
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.
%$$c
*
6.3.1.1 For purposes of advancement, teachers are given the
option of choosing alternative career lines in school
administration or classroom teaching.
6.3.1.2 At the base of the career system is the Teacher
position. Thereafter, a teacher may be promoted either as
Elementary/Secondary School Principal, following the school
administration career line, or as Master Teacher, which falls
under the teaching career line.
%$$c


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*2cc*3 6.3.2.5.1.5 At least 25 points in leadership and potential, or
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:
c




Master Teacher I 16
Master Teacher II 17
Master Teacher III 18
Master Teacher IV 19
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.
6.3.2.3 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:
ͻ Master Teacher I positions shall not exceed 6.6% of the
total number of authorized teaching positions.
ͻ Master Teacher II positions shall not exceed 3.4% of the
number of authorized Master Teacher I positions.
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.
%$$$ 
( 
The following attributes and functions have been identified
for Master Teacher levels:
6.3.2.4.1 All Master Teachers shall be administratively under
the school heads where they are assigned notwithstanding
their rank and salary.
6.3.2.4.2 Master Teachers shall have regular teaching loads.
6.3.2.4.3 Master Teachers shall guide other teachers in the
school or district towards improving their competencies as
well as taking the lead in the preparation of instructional
6.3.2.4.4 Master Teachers shall serve as demonstration
teachers or teacher consultants in other schools in the
district.
%$$$#c

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 Permanent teacher;
6.3.2.5.1.2 Bachelor͛s degree for teachers or equivalent as
provided in the
Magna Carta for Public School
Teachers;
6.3.2.5.1.3 Very satisfactory performance rating for the last
two years;
6.3.2.5.1.4 At least 3 years teaching experience; and
has been a demonstration teacher in the district level plus 15
points in leadership and potential.
6.3.2.5.2 Master Teacher II
6.3.2.5.2.1 Master Teacher I for at least one year;
6.3.2.5.2.2 Very satisfactory rating as
Master Teacher I;
6.3.2.5.2.3 Bachelor͛s degree for teachers or equivalent as
provided in the
Magna Carta for Teachers, plus completion of academic
requirements for Master of Arts; and
6.3.2.5.2.4 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.
6.3.2.5.3 Master Teacher III
6.3.2.5.3.1 Master Teacher II;
6.3.2.5.3.2 M.A. in education or equivalent;
The following are considered
M.A. equivalent:
ͻ Bachelor͛s degree for teachers or equivalent plus


0

 
20 years experience and at least 20 M.A. units;





 &



ͻ Bachelor͛s degree for teachers or equivalent plus at least 20
graduate units and at least 18 credit allowances.
6.3.2.5.3.3 Very satisfactory performance rating as Master
Teacher II; and
6.3.2.5.3.4 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 Master Teacher III;
6.3.2.5.4.2 At least an M.A. in Education,
M.A. in Teaching or Masters in
Education;
6.3.2.5.4.3 Outstanding performance rating as Master
Teacher III; and
6.3.2.5.4.4 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.
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



B




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.
%$$


c
* than 1 ½ days are entitled to full salaries during Christmas
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
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
Commission (CSC) Resolution No. 040863 promulgated on
July 28, 2004 (Annex C).
%$c
%$$?
Section 13 of RA No. 4670 (Magna Carta for Public School
Teachers) provides that the actual classroom teaching hours
for a teacher shall not be more than 6 hours per day or 30
hours per week. The number of teaching hours is designed to
give teachers ample time for preparation of lesson plan,
correction of exercises and other work incidental to their
normal teaching duties. Teaching hours in excess thereof are
paid honoraria. The rates, which shall be based on the Prime
Hourly Teaching Rate (PHTR), shall be computed in
accordance with the following formula:
AR AR
PHTR = ------- T = --------- 1.25 = 0.000781 AR
W 1,600
Where:
AR = Annual salary rate of each teacher proposed to be paid
honoraria
W = Total teaching hours (This is computed at 40 hours/week
multiplied by 40 weeks or 1, 600 hours.)
T = 1.25 or 125% of the teacher͛s remuneration for services
in excess of 6 hours actual teaching per day but not more
than 2 hours.
%$$
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.
6.4.2.2 Teachers who rendered continuous services in a
school year without incurring absences without pay of more
and summer vacation.
6.4.2.3 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.
6.4.2.4 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.
6.4.2.5 The service credits earned by teachers may be used to
offset absences of teachers due to illness or to offset
proportional deduction in PVP.
%$$?
 >
?
 


6.3.3.2.2 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.
6.3.3.4 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).
6.3.3.5 The modified qualification standards for Head Teacher
and Principal positions are prescribed under Civil Service
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.
6.4.3.2 Hardship posts are public schools that are accessible
only by hiking, animal ride or banca ride, partly or wholly.
Schools that are directly accessible by motorized land or
water transport do not qualify as hardship posts.
6.4.3.3 Special hardship allowance is granted to teachers
assigned to handle multi-grade classes.
6.4.3.4 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 No
requirement of 15 pupils per class. Yes
6.4.3.5 The hardship/special hardship allowance shall not Ye
exceed 25% of the basic pay of the teacher, and is in lieu of No
hazard duty pay. yes
%$$ 


4

& 

 No

  684
6.4.4.1 As provided under Joint DECS, CHED, GSIS and DBM Yes
Circular No. 1, series of 1997, all incumbents of public school NOSCA/
teacher positions are entitled to one (1) salary grade increase SARO
on the last day of service for retirement benefit purposes. Letter
Similarly covered are positions which fall within the purview Receives
of a public school teacher as defined under Section 2 of RA salary
No. 4670 and as amended/modified by RA No. 6758. adjustment
6.4.4.2 The one salary grade increase shall take effect on the NOSCA/
last day of the service of the retiring public school teacher. NOSA
The salary of the retiring teacher shall be adjusted upward by Prepares NOSCA and
one salary grade at the same step of his/her previously SARO; Modification effected in the GMIS
assigned salary grade. Prepares and submits ERF
No Prepares
Yes Certification as to names of qualified teachers Certification
Next Budget Determines if within cut off date?
Cycle Determines if retiring during the year?
Next Budget Within the cut off date
Cycle Retiring during the year
No Prepares the requests for ERF implementation Endorses
Receives salary adjustment request
Prepares NOSCA and Certification and endorsement letter
SARO; Modification effected in the GMIS Funds available?
Identifies teachers with 20 or more years of teaching service Transmits DBM disapproval
Prepares Certification as to names of qualified teachers NOSA
Certification Yes
Determines if within cut off date No
Determines if retiring during the year (



&!(
Within the cut off date? 
 E4


Retiring during the year? Department of Education
Prepares the requests for ERF implementation (DepEd)
Endorses request Schools Division (SD)
Certification and endorsement letter Regional
Funds available? Offices
Transmits DBM disapproval (RO)
NOSA DBM RO
Yes Prepares
Yes NOSA
No Teacher
NOSCA/ Pre-evaluates the
SARO ERF
6 Post-audits the ERF
(



&!( Certification


1

4

 Required
Teacher Department of Education (DepEd) points
Schools Division (SD) Regional Offices met?
(RO) Letter Informs the teacher
DBM RO NOSCA/
NOSCA/ Prepares NOSA NOSA
NOSA 
NOSCA/ Annex B
NOSA !+0*4;-4*44-
REPUBLIC OF THE PHILIPPINES enterprise, to focus resources and motivate people in the
;<--!1+;@ - realization of the shared school vision.
DEPARTMENT OF EDUCATION It is within the framework of leadership that the succeeding
1!c
6=


$
&c  guidelines on the selection, promotion, and designation of
Tanggapan ng Kalihim school heads have been formulated.
m
  
 44$0


DepEd ORDER November 27, 2003 1. The selection, promotion and designation of school heads
No. 85 s. 2003 shall be anchored on the principles of merit, competence,
GUIDELINES ON THE SELECTION, PROMOTION fitness and equality.
AND DESIGNATION OF SCHOOL HEADS 2. Applicants for Head Teacher and Principal positions must
TO: Undersecretaries possess executive and managerial competence, in addition to
Assistant Secretaries the following criteria:
RegionaL Directors i. Performance
Schools Division/City Superintendents ii. Experience and Outstanding Accomplishments
Heads, Public Elementary and Secondary Schools iii. Education and Training
1. Pursuant to the Implementing Rules and Regulations of iv. Potential
R.A. 9155, the selection, v. Psycho-social Attributes and Personality Traits
promotion and designation of school heads shall be based on Annex 1 presents the details on these criteria.
merit, competence, 3. Policies pertaining to Principals
fitness and equality. It is based on these principles that the 3.1 Aspirants for Principalship must pass a test to be
enclosed guidelines are considered for selection and promotion.
hereby issued. a. To qualify for the test, the aspirant must be any of the
2. Immediate dissemination of and compliance with this following:
Order is directed. Master Teacher I for at least two (2) years
(SIGNED) EDILBERTO C. DE JESUS Master Teacher II for at least one (1) year
Secretary Head Teacher for at least one (1) year
Encl.: Teacher-in-Charge for at least two (2) years
As stated Teacher III for at least three (3) years
Reference Teacher II for at least four (4) years
DepEd Order No. 1, s. 2003 Teacher I for at least five (5) years
Allotment: 1 __ (D.O. 50-97) b. The test shall serve as a mechanism for evaluating the
To be indicated in the Perpetual Index under the following aspirants in terms of the 3-dimensional leadership
subjects: qualifications. It may consist of paper & pencil, simulation,
OFFICIALS etc.
POLICY c. The Department Central Office will set the standards for
PROMOTION testing.
GUIDELINES ON THE SELECTION, PROMOTION d. Test development and quality assurance will be provided
AND DESIGNATION OF SCHOOL HEADS by the Regional Office. The test administration will be
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: division-based.
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. ! 

*
 $The ability to lead in crafting a test requirement for a one year period reckoned from the
shared school vision including the development of curriculum
policies and practices which provide success for all students;
2. 
*
 $The ability to work with various open to all qualified applicants/candidates.
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. 
&*
 $The ability to expire complex issues
from a global perspective, to manage an educational
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
date of the issuance of this Order.
3.4 The ranking of candidates for Principal position shall be
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 Education
be open to all qualified applicant/candidates. BEEd/BSE or
5. Policies pertaining to Teacher-in-Charge its equivalent
5.1 The Schools Division Superintendent shall designate or Bachelors
Teachers-In-Charge. degree with
5.2 To be designated as Teacher-In-Charge, a teacher must 18 professional
have teaching experience of at least three (3) years. education
III. Computation of Points units
1. In computing the number of points for purposes of ranking BEEd/BSE or
the Head its equivalent
Teacher/Principal, a specific number of points is assigned to or Bachelors
each criterion as follows: degree with
c
=
6 -
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 18 professional
Performance Rating education
Experience/Outstanding units
Accomplishments BEEd/BSE or
Education/Training its equivalent
Potential or Bachelors
Psychosocial attributes and degree with
Personality traits 18 professional
40 education
10/25 units
10/10 BEEd/BSE or
2.5 its equivalent
2.5 or Bachelors
40 degree with
35 18 professional
20 education
2.5 units
2.5 BEEd/BSE or
Total .. its equivalent
2. In the evaluation of accomplishment/s, the following or Bachelors
matrix is suggested. degree with

& 18 professional

 >=
 =
6  education
-
$

 units
Outstanding Employee Award BEEd/BSE or
Innovations its equivalent
Research and Dev. Projects or Bachelors
Publication/Authorship degree with
Consultancy/Resource 18 professional
Speakership education
Linkages & Resource units
Mobilization Training 8 hrs. of
5 relevant
5 training
4 8 hrs. of
4 relevant
4 training
3 8 hrs. of
TOTAL # relevant
Annex II presents the details on computation of points. training
See Annex II 8 hrs. of
 relevant
Annex I training
Following are the basic qualifications required of: 8 hrs. of
4$?

  relevant
c
?4?44?444?4B?B?B4 training
8 hrs. of 1 yr. as Principal
relevant BEEd/BSE + 9 units
training of Management
Experience 1 year as TIC 8 hrs. of relevant
or 3 yrs. training
Teaching 1 yr. as Principal
experience Performance
1 year as HT VS for the last 3 yrs.
2 years as HT VS for the last 3 yrs.
3 years as HT VS for the last 3 yrs.
4 years as HT VS for the last 3
5 years as HT yrs.
Performance VS for the last Note: For Head Teacher and Principal: Training credited in the
3 rating previous promotion will not be
periods considered in succeeding promotion.
VS for the last 
3 rating Annex II
periods COMPUTATION OF POINTS
VS for the last I. Performance Rating (40 points)
3 rating Numerical Rating result multiplied by forty (40) per cent
periods II. Experience (10) points
VS for the last Relevant experience consists of the performance of duties
3 rating and functions relevant to the
periods next higher position over a period expressed in years with
VS for the last every year given a point but
3 rating not to exceed ten (10) points equivalent to 10 years.
periods III. Outstanding Accomplishments (25) points
VS for the last A. Outstanding Employee Award (5) points
3 rating Awardee in the school - 1 pts.
periods Nomination in the division/awardee in the district - 2 pts.
Note: Promotion to higher Head Teacher (HT) positions shall Nomination in the region/awardee in the division - 3 pts.
be on an open ranking basis where merit Nomination in the Department/awardee in the region - 4 pts.
and fitness shall be the main consideration and not the National awardee (Kapwa Award/Pagasa Award/
position Presidential Award) - 5 pts.
44$
 B. Innovations (5 points)
c
4444444B Conceptualized an innovative work plan and properly
Education documented and approved by immediate chief and attested
Training by authorized regional/division official - 1 pt.
Experience Implementation of work plan has been started - 2 pts.
BEEd/BSE with 18 professional Work plan has been implemented with documented outputs -
units in education 3 pts.
or its equivalent Work plan or essential parts thereof adopted for wider
8 hrs. of relevant training implementation - 5 pts.
MT I for at least 2 yrs.; or C. Research and Development Projects (5 points)
MT II for at least 1 yr.; or Conducted research at other levels - 3 pts.
HT for at least 1 yr., or Conducted research at the other school level - 4 pts.
TIC for at least 3 yrs.; or Conducted research at the division level - 5 pts.
TII for at least 4 yrs.; or D. Research and Development Projects (5 points)
TI for at least 5 yrs. Sole Authorship of a book - 5 pts.
BEEd/BSE + 6 units Co-authorship of a book - 4 pts.
of Management (Shall be divided by the number of authors)
8 hrs. of relevant Articles published - 1 pt.
training (Per article but not to exceed 4 pts.)
1 yr. as Principal E. Consultancy/Resource Speakership in Training/Seminars/
BEEd/BSE + 6 units Workshops/Symposia (5 points)
of Management District level - 1 pt.
8 hrs. of relevant Division level - 2 pts.
training Regional level - 3 pts.
National level - 4 pts. Qualification Standards Manual shows that the proposed
International level - 5 pts. modified qualification standards are higher.
IV. Education and Training (20 points) WHEREFORE, foregoing premises, considered, the
A. Education (10 points) Commission Resolves to approve the modified qualification
Bachelors degree in Education - 4 pts. standards of the following positions in the Department of
Ma units Education:
18 units - 6 pts.  44 -
24 units or completion of academic requirements - 8 pts. 4*!*!B!*!1+c4 -!C!4!-c!4-4-
MA degree - 10 pts. !*4404*4@
B. Training (10 points) (
!



Participant in 3 or more training activities Head
For at least 2 days - 2 pts. Teacher II
Co-chairmanship of a technical committee - 4 pts. 14 2 Bachelor͛s degree
Chairmanship of a technical committee - 6 pts. in Elementary or
Co-chairmanship of a planning committee - 8 pts. Bachelor͛s degree
Chairmanship of a planning committee - 10 pts. with 18 professional
V. Potential (2.5 points) education
VI. Psychosocial attributes and physical characteristics (2.5 units
points) 1 year as
 Head Teacher
Annex C 8 hours of
DE JESUS, Edilberto C. relevant
Re: Qualification Standards for Head training
Teacher I to III and Principal I to IV (For RA 1080
Elementary School); Teacher I to VI and (Teacher)
Principal I to iv (For Secondary School) Head
Positions in the Department of Education Teacher III
x----------------------------------------------------------x 15 2 Bachelor͛s degree
! *+4 -- $..)% in Elementary or
Secretary Edilberto C. De Jesus of the Department of Bachelor͛s degree
Education (DepEd) requests the with 18 professional
modification of its 1995 approved qualification standards for education
the following positions: units
For Elementary School For Secondary School 2 years as
Head Teacher I to III Head Teacher I to VI Head Teacher
Principal I to IV Principal I to IV 8 hours of relevant training
Secretary De Jesus stated that the modification is anchored RA 1080
under DepEd͛s Guidelines on the Selection, Promotion and (Teacher)
Designation of Schools Heads under DepEd Order No. 85, s. (





2003 pursuant to RA 9155, otherwise known as the Basic Head
Education Act of 2001. Said Act provides, among other things, Teacher I
that the selection, promotion and designation of school 13 2 Bachelor͛s degree
heads shall be based on merit, competence, fitness and in Elementary or
equality. He likewise stated that that the proposed modified Bachelor͛s degree with 18 professional
requirements are not lower than those provided under the Education units with appropriate field of specialization
CSC Qualification Standards. 1 year as
Policy No. 2, Part I ʹ General Policies of CSC MC No. 030962 Teacher-In-
dated September 12, 2003 specifically the 3rd paragraph Charge or 3 years teaching experience 8 hours of relevant
provides that ͞Agencies are encouraged to set specific or training
higher standard for their positions. These standards shall be RA 1080
submitted to the Commission for approval, and once (Teacher)
approved they shall be adopted by the Commission as Head
qualification standards in the attestation of appointments of Teacher II
the agency concerned.͟ (Underscoring supplied). 14 2 Bachelor͛s degree
An evaluation of DepEd͛s proposed modified qualification in Elementary or
standards vis-à-vis the approved minimum qualification Bachelor͛s degree
standards of positions as provided in the 1997 Revised with 18 professional
education
units with appropriate RA 1080
field of (Teacher)
specialization c



c


 

 &
1 year as 


Head Teacher !






8 hours of 6-29
relevant  44 -
training 4*!*!B!*!1+c4 -!C!4!-c!4-4-
RA 1080 !*4404*4@
(Teacher) specialization
Head Head
Teacher III Teacher VI
15 2 Bachelor͛s degree 18 2 Bachelor͛s degree
in Elementary or in Elementary or
Bachelor͛s degree Bachelor͛s degree
with 18 professional with 18 professional
education education
units with appropriate units with appropriate
field of field of
specialization specialization
2 years as 5 years as
Head Teacher Head Teacher
8 hours of 8 hours of
relevant relevant
training training
RA 1080 RA 1080
(Teacher) (Teacher)
Head (
!



Teacher IV Principal I 18 2 Bachelor͛s degree
16 2 Bachelor͛s degree in Elementary or
in Elementary or Bachelor͛s degree
Bachelor͛s degree with 18 professional
with 18 professional education
education units
units with appropriate MT I for at
field of least 2 yrs.; or
specialization MT II for at
3 years as least 1 yr.; or
Head Teacher HT for at least
8 hours of 1 yr.; or TIC
relevant for at least 2
training years; or T III
RA 1080 for at least 3
(Teacher) years; or T II
Head for at least 4
Teacher V years; or T I
17 2 Bachelor͛s degree for at least 5
in Elementary or years
Bachelor͛s degree 8 hours of
with 18 professional relevant
education training
units with appropriate RA 1080
field of (Teacher)
4 years as Principal II 19 2 Bachelor͛s degree
Head Teacher in Elementary or
8 hours of Bachelor͛s degree
relevant with 18 professional
training education
units + 6 units of years; or T II
Management for at least 4
1 year as years; or T I
Principal for at least 5
8 hours of years
relevant 8 hours of
training relevant
RA 1080 training
(Teacher) RA 1080
Principal (Teacher)
III Principal II 19 2 Bachelor͛s degree
20 2 Bachelor͛s degree in Elementary or
in Elementary or Bachelor͛s degree
Bachelor͛s degree with 18 professional
with 18 professional education
education units + 6 units of
units + 6 units of Management
Management 1 year as
2 years as Principal
Principal 8 hours of
8 hours of relevant
relevant training
training RA 1080
RA 1080 (Teacher)
(Teacher) Principal III 20 2 Bachelor͛s degree
Principal V 21 2 Bachelor͛s degree in Elementary or
in Elementary or Bachelor͛s degree
Bachelor͛s degree with 18 professional
with 18 professional education
education units + 6 units of
units + 6 units of Management
Management 2 years as
3 years as Principal
Principal 8 hours of relevant training
8 hours of RA 1080
relevant (Teacher)
training Principal IV 21 2 Bachelor͛s degree
RA 1080 in Elementary or
(Teacher) Bachelor͛s degree with 18 professional education units + 6
 44 - units of Management 3 years as Principal 8 hours of relevant
4*!*!B!*!1+c4 -!C!4!-c!4-4- training RA 1080
!*4404*4@ (Teacher)
(




 RESOLVED further, that the above approved qualification
Principal I 18 2 Bachelor͛s degree standards shall be the bases
in Elementary or of the Civil Service Commission in the attestation of
Bachelor͛s degree appointments and other personnel actions.
with 18 professional Let copy of this Resolution be disseminated to all Civil Service
education Commission Regional and
units Field Offices.
MT I for at Quezon City, July 28, 2004.
least 2 yrs.; or (Signed) ;4-c --4- 81B41
MT II for at Chairman
least 1 yr.; or (Signed) H$<*1!=B$B*= !(Signed) c!1$
HT for at least 0+!-(* 
1 yr.; or TIC Commissioner Commissioner
for at least 2 Attested by:
years; or T III (Signed) !0!cc$(!--1!I
for at least 3 Director IV
 c
' To implement a standardized PCCSFP, it is imperative for all
faculty to pass through a CCE that can distinguish the


c



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 different faculty ranks within institutions, across institutions
  and across disciplines and fields. The CCE has the following

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 objectives:
7.2.1.1 To standardize faculty ranks among institutions;
c
&
7.2.1.2 To rationalize the salary rate appropriate to a faculty
Prior to the issuance of PD No. 985, State Universities and
rank;
Colleges (SUCs) which were exempted from the coverage of
7.2.1.3 To have an instrument for generating the faculty
the National Position Classification and Compensation Plans
profile across SUCs, HEIs and TEIs;
adopted individual staff credentials and qualifications,
7.2.1.4 To serve as basis for policy decisions for accelerated
position classification and pay plans. The disparities in pay
faculty development; and
and compensation among similar comparable positions
7.2.1.5 To motivate a faculty to upgrade his/her rank and
brought about by the different schemes adopted by the
compensation by improving his/her academic qualifications,
various SUCs gave rise to demoralization and dissension
achievements and performance.
among the ranks of faculty members and further complicated
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the process of compensation administration in SUCs.
The CCE point system in determining faculty rank and sub-
When the SUCs were placed within the ambit of PD No. 985,
rank is as follows:
the need to rationalize the academic
'$$$=
5
(


=
6 
(


ranks/salaries/advancement of faculty members in SUCs
=
6 - 


became apparent due to the application of varied faculty
Educational Qualification
evaluation instruments. As early as 1982, the Philippine
85
Association of State Universities and Colleges (PASUC),
Experience and Professional Services
together with the DBM, started deliberating on a scheme of
25
upgrading/promoting qualified and deserving faculty
Professional Development, Achievement
members through a process of objective evaluation. This
and Honors
paved the way to the development and adoption of a
90
Common Criteria for Evaluation (CCE) across programs and
 *
disciplines which aimed to rationalize academic ranks and
..
salaries. National Compensation Circular (NCC) No. 33 was
The specific factors and guidelines for determining credit
issued on January 2, 1985 with retroactive effect on July 1,
points are in Annex A of this Chapter.
1984. This Circular established the position classification and
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compensation scheme for faculty positions in SUCs. Since
(
 
:
then, amendments of certain provisions including
 8
:
improvements of the CCE have been introduced through NCC

No. 68, NCC No. 69 and the latest, National Budget Circular

0
:
(NBC) No. 461. NBC No. 461 is a revision and an update of
I 12 65 ʹ Below
NCC No. 69 which was exclusively for the faculty positions in
4 
II 13 66 ʹ 76
SUCs. Under NBC No. 461, Commission on Higher Education
III 14 77 ʹ 87
(CHED)-supervised higher education institutions (HEIs),
I 15 88 ʹ 96
Technical Education and Skills Development Authority

II 16 97 ʹ 105
(TESDA)-supervised Technical Education Institutions (TEIs)


III 17 106 ʹ 114
and SUCs are covered.
IV 18 115 ʹ 123
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&
I 19 124 ʹ 130
The Position Classification and Compensation Scheme For
II 20 131 ʹ 137
Faculty Positions (PCCSFP) covers all teaching positions


III 21 138 ʹ 144
involved in instruction, research and extension activities in all


IV 22 145 ʹ 151
SUCs, CHED-Supervised HEIs and TESDASupervised TEIs.
V 23 152 ʹ 158
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I 24 159 ʹ 164
As part of the PCCSFP, a CCE is established which shall be the
II 25 165 ʹ 170
primary basis for recruitment, classification and promotion of


III 26 171 ʹ 176
a faculty. The CCE is a set of factors consisting of services and
IV 27 177 ʹ 182
achievements which establishes the relative performance of a
V 28 183 ʹ 188
faculty in the institution for the period of evaluation through
VI 29 189 ʹ 194
the application of a point system in determining faculty rank
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and sub-rank. The new CCE which was developed by the



CHED and PASUC places more emphasis on advancement and
30 195-200
performance rather than on educational qualifications.
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7.2.2.2.1 The highest rank that can be allowed in HEIs and The Head of the SUC, HEI or TEI, may subsequently grant
TEIs is Associate Professor V. promotions to faculty members for meritorious performance,
7.2.2.2.2 The quota for the rank of Professor shall be provided that the aggregate number of sub-ranks involved in
20% of the total number of faculty positions all such promotions shall not exceed 15% of the total number
of each SUC. of current authorized full-time faculty members annually,
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 provided further that such upward movements shall be
7.3.1 In addition to the CCE, promotions to higher rank and limited to the highest sub-rank of the assigned rank as
sub-rank indicated in the CCE. Upward movements to Professor ranks
shall be subject to Qualitative Contribution Evaluation (QCE). in SUCs and to Associate Professor ranks, in HEIs and TEIs
QCE is the process of determining the eligibility of a faculty shall similarly be subject to prior evaluation by the
candidate for the particular rank and sub-rank indicated by Accreditation Committee, to the requirement for
the CCE. appointment to such ranks, and to the quota system
7.3.2 Qualitative Contribution (QC) is the continuous prescribed for Professors, in the case of SUCs.
improvement towards excellence by a faculty member in all '$'


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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.
7.3.2.2 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.
7.3.2.3 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.
7.3.3 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
ratee͛s client, by the direct supervisor, by the stakeholders in
the completed projects, and by his/her external and internal
communities.
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 standing either locally or abroad. However, in highly
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.
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 in commercial or industrial projects in relevant fields of
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.
'$%
1
 projects and/or undertakings; and
7.7.1 Instructor I ʹ 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;
7.7.2.2 Earned MA degree for Assistant Professor II to IV; and
7.7.2.3 QC in instruction, otherwise known as Teaching
Effectiveness.
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.
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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
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.
7.8.1.2 Productivity - This refers to significant outputs,
contributions and applications and/or use of research results
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;
7.8.1.2.2 Discoveries, inventions and other significant original
contributions;
7.8.1.2.3 Books, monograms, compendiums and major bodies
of published work;
7.8.1.2.4 Transformation of research recommendations to
public policy benefiting the country͛s training of science
graduates or significant contribution to manpower
development and/or science and technology, practical
application of research results in industrial or commercial
7.8.1.2.5 Such other criteria which the Accreditation
Committee may require as may be warranted by new
developments in science and technology.
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 CCE points of at least 159;
7.8.2.2 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 master͛s degree, and
has earned 20 points in the following areas:
7.8.2.2.1 Books, monograms, compendiums, and major
bodies of published work;
7.8.2.2.2 Scientific articles in publications of international
circulation, and other works of similar nature;
7.8.2.2.3 Discoveries, inventions and other significant original
contributions;
7.8.2.2.4 Research recommendations transformed to public
policy benefiting the country;
7.8.2.2.5 Supervision, tutoring or coaching of graduate
scientists and technologists; and
7.8.2.2.6 Research results applied or utilized in industrial
and/or commercial projects or undertaking.
7.8.2.3 QC in at least 3 of the 4 functional areas; and
7.8.2.4 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
7.8.3.2 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.
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: Upon recommendation by the institution head concerned, all
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;
7.9.1.2 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
7.9.1.3 SUC Presidents/Vice-Presidents who opt to return to
teaching after the expiration of their fixed terms of office 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 for appointment as
College/University Professor:
7.9.2.1 CCE points of at least 195;
7.9.2.2 Earned doctorate;
7.9.2.3 Professorial accreditation, in case of a faculty;
7.9.2.4 A pass from a Screening Committee, duly constituted
byPASUC; and
7.9.2.5 QC in at least 3 out of the 4 functional areas.
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;
7.9.3.2 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
7.9.3.3 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
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
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.
7.9.5.2 He/She must have expert knowledge in one field or
division and familiar with at least one other subject within
another division.
7.9.5.3 He/She must be known for intellectual maturity and
objectivity in his/her judgment.
7.9.5.4 He/She must have a high reputation among his/her Organization, Staffing and Compensation Action (NOSCA)
colleagues and other scholars for his/her mastery of the reflecting the changes in the rank/sub-rank and salaries of
subject of his/her specialization. faculty members concerned in the respective institution.
7.9.5.5 Recognition and esteem could be manifested in the '$!



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following ways: As a matter of policy, the evaluation may be undertaken
7.9.5.5.1 His/her contributions to the advancement of his/her every odd year
fields of specialization are recognized by colleagues, here and for SUCs. In the case of HEIs and TEIs, the evaluation may be
abroad. undertaken every even year.
7.9.5.5.2 He/She is published in the most respected learned '$

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7.9.5.5.3 His/Her works are worldly acclaimed and provoke Faculty members are entitled to honoraria for services
spirited discussions among scholars, often from various rendered in excess of the regular teaching load. Honoraria
disciplines. shall be based on the Prime Hourly Teaching Rate (PHTR)
7.9.5.5.4 He/She is often invited to other universities which shall be computed as follows:
and scholarly gatherings for the originality of his thoughts. '$$$(
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7.9.5.5.5 He/She is accorded various forms of honors AR AR
(awards, chairs, titles, etc.). PHTR = --------T = -------- x 1.25 = 0.000781 AR
'$.c




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 W 1600


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?!4
!1 
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+c AR = annual salary rate of each faculty proposed to be paid
7.10.1 To preclude position downgrading implications, the honoraria
existing teaching/teaching related positions integrated with W = Total teaching hours (40hrs/week multiplied by 40
the staffing pattern of newly converted SUCs shall be initially weeks or 1600 hrs.)
converted/retitled to their lateral equivalent SUC faculty T = 1.25 or 125% of the faculty͛s remuneration for
positions based on salary grades without the need for prior services in excess of 6 hours of actual teaching per
evaluation under NBC No. 461. day but not more than 2 hours
Examples: '$$$(
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 7.13.1.2.1 For faculty members with Bachelor͛s
Secondary School Principal II, SG-19 Associate Professor I, SG- degrees and with special vocational
19 preparation
Master Teacher II, SG-17 Assistant Professor III, SG-17 AR
Head Teacher III, SG-15 Assistant Professor I, SG-15 PHTR = --------- x 1.5 = 0.0012 AR
7.10.2 All positions of Teacher I, SG-10, Teacher II, SG-11, and 1,296
Teacher III, SG-12, shall be automatically converted/retitled 7.13.1.2.2 For faculty members with Master͛s
to Instructor I, SG-12. degrees
7.10.3 The initial faculty ranks shall serve as bases for future PHTR = 0.0014 AR
movements/promotions to higher level positions. Should the 7.13.1.2.3 For faculty members with Doctorate
ensuing evaluation under NBC No. 461 result in the Degrees
downgrading of the initial ranks, the faculty concerned shall PHTR = 0.0015 AR
retain his/her assigned rank and salary grade at conversion '$$$ 
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until he/she qualifies for a higher rank.  <
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7.10.4 Teaching positions handling laboratory classes in In the determination of the load of a faculty who is
teacher education courses may be converted/retitled to given assignments other than teaching, the following
faculty positions provided they serve as critic teacher in such allowable percentage weights are adopted:
teacher education courses and each attends to at least three ͻ 25% of the official time of faculty members
(3) practicum students at the senior level. concerned shall be credited to actual teaching
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$ load; and
% ͻ 75% of the official time of faculty members
'$$$

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!4 concerned shall be allotted for workload other than
The heads of SUCs, HEIs and TEIs shall submit the Personal teaching in connection with research and
Services Itemization and Plantilla of Personnel (PSIPOP). extension functions, or as a Dean/Department
reflecting the modifications in rank/sub-rank and the Head or Director.
corresponding salary adjustments of faculty members =




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concerned together with the CCE Computer Print-out and 7-14
pertinent evaluation documents. '$$









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10= 23
The DBM Regional Offices (ROs) shall verify and post-audit Faculty members who are designated as Vice-
the PSIPOP. The DBM ROs shall then prepare the Notice of Presidents/Deans/
Directors/Department Heads are authorized RATA based on 7 personnel involved in such income
their generating projects.
rank equivalence at the rates provided in the annual General 7.13.2.3.4 Designated Director of each satellite campus/
Appropriations Act (GAA). branch/center/institute, duly mandated by
'$$$B8 law, provided each campus/branch/center/
+c*

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 institute has a complete administrative staff,
4 i.e., at least a budget officer, an
3 accountant/bookkeeper, an administrative
2 officer/administrative assistant, a supply
1 officer/property custodian, a cashier/
Bureau Director disbursing officer and other support positions
Assistant Bureau Director such as clerks, janitors and security guards
Bureau Regional Director and at least 1,000 students in the tertiary
Bureau Assistant Regional Director level.
'$$$1
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 7.13.2.3.5 Designated Director of Student Affairs
1
 Services for SUCs with at least 4,000 college
7.13.2.2.1 Designated Dean of the Graduate School with students.
at least a Master of Arts/Master of Science 7.13.2.3.6 Designated Department Heads of different
Program with 15 faculty members. departments/colleges, each one having at
7.13.2.2.2 Designated Deans of Colleges with at least least 4 degree programs with each program
four (4) degree programs and a teaching differentiated from each other by 33% (the
complement of 40 full-time faculty members. distinction of the programs to be certified by
In case the SUC cannot meet the minimum the CHED).
number of programs required, it may still be '$$c




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entitled to a Dean, if it meets the following: &

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 7.13.3.1 Faculty and non-faculty members who are
-
$
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(
 = as VPs shall be entitled to the difference between their
4 =




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3 7-16
2 present salaries and the 1st step of the salary grade of
1 the VP positions corresponding to the level of the SUCs
40 concerned. Said salary differentials shall form part of
50 their actual salaries as designated VPs. The year-end
60 benefits (YEB) and retirement and life insurance
70 premiums (RLIP) shall be adjusted accordingly during
'$$$1
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c  their periods of designation.

1

 7.13.3.2 A designated VP who is already receiving a salary
7.13.2.3.1 Designated Director of Research Services, higher than the 1st step of a permanent VP position
with at least P500,000 appropriation for shall only be entitled to the corresponding RATA for the
research service function; when no position. In no case shall the designee͛s basic salary
authorized research function in the GAA, the plus the salary differential exceed the hiring rate
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  prescribed for a permanent VP position for the


 particular SUC level.
7-15 7.13.3.3 The aggregate salary received during the designation
SUC to have at least 10 research projects cannot be used as previous salary for purposes of
with a total cost of P500,000 per annum. future appointment. It shall not be considered for
7.13.2.3.2 Designated Director of Extension Services, purposes of the computation of terminal leave benefits
with at least P500,000 appropriation for (TLB).
extension service function; when no 7.13.3.4 During the period of designation, the VP shall
authorized extension services function in the continue
GAA, the SUC to have at least 10 extension to be entitled to step increment in his/her regular
services projects with a total cost of P500,000 position but not as VP. In case his/her step increment in
per annum. his/her lower position overtakes the 1st step of the VP
7.13.2.3.3 Designated Director of Auxiliary Services, position, he/she shall be allowed to receive the higher
provided the SUC has a yearly income from salary.
its operations of at least P60,000 and at least
7.13.3.5 In the event that the designation, being of a 1.1.4 Diploma course (above a bachelor͛s degree).. 55
temporary 1.1.5 Bachelor͛s degree (4 years) ͙͙͙͙͙͙͙͙͙ 45
nature, is revoked by the Governing Board of the SUC In the case of a Bachelor͛s degree which is more than 4
concerned, he shall revert to his/her salary in his/her years, additional credit of 5 points is given for every year
regular position plus any step increment he/she earned over 4 years
during the period of designation. 1.1.6 Special Courses
'$$-& 

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  ͻ 3-year post secondary course͙͙͙͙͙͙͙30
+

  2+3 ͻ 2-year post secondary course͙͙͙͙͙͙͙25
7.13.4.1 The PUP is authorized by law to compensate its 1.2 Additional equivalent and relevant degree earned
faculty 1.2.1 Additional Master͛s degree͙͙͙͙͙͙͙͙..͙͙.4
and non-faculty including those from outside of the 1.2.2 Additional Bachelor͛s degree͙͙͙͙͙͙͙͙..͙.3
University for night services rendered on top of their An additional equivalent and relevant degree earned
regular services. related to the present position refers to another degree on
The night service is considered as a separate and the same level as the advanced degree that the faculty has
distinct program from the regular 8-hour service. The already earned.
night pay does not partake of the nature of overtime Relevance is the applicability of the degree to teaching and
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  to the subjects the faculty is teaching, or the duties and


 functions other than teaching which the faculty performs.
7-17 c



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pay which is not part of basic salary. The night pay 


partakes more of the nature of basic salary, as a matter 7-19
of right for recompense of services rendered in the For example, a holder of an M.S. in Math acquired a degree
night program of the University. in M.S. Physics. However, an M.A. holder, who acquired 2
7.13.4.2 The night pay, therefore, is integrated into the basic bachelor degrees like A.B., BSE, shall be credited only for
salaries of the University͛s employees for purposes of his/her M.A. degree.
retirement benefits. This authority, however, is 1.3 Additional credits earned
applicable only to PUP. 1.3.1 For every 3 units earned toward a higher approved
'$$#4
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 = degree
7.13.5.1 In cases of promotion or movements from one course (maximum of 10 pts.) ͙͙͙͙͙͙͙͙͙͙͙͙͙1
rank/sub- rank to another, the step increment earned 2. Experience and Professional Services------------------------------
by a faculty member in his/her previous faculty rank -- 25 pts.
cannot be carried over to his/her salary in the higher The services and experiences of a faculty who is designated to
level faculty rank. His/Her next step increment shall be an
reckoned from the date of his/her appointment to the administrative position like Vice-President, Dean, Director,
higher level faculty rank. etc., shall be
7.13.5.2 In case of conversion of a teaching position to a credited only once, whichever is highest, within the period of
faculty his/her
rank, the step increment earned by a teacher in his/her designation.
previous position cannot also be carried over to the 2.1 For every year of full-time academic͙͙͙͙͙͙͙͙͙͙͙͙ 1
converted faculty rank. His/Her step increment shall be service in a state institution of higher
reckoned from the date of his/her appointment to the learning
newly converted faculty rank. Academic service refers to teaching in college or doing
=




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7-18 and extension functions.
6 A year means at least 2 semesters.
(


 
1&c Full-time service means the official full-time equivalent load

 (FTEL) hours of actual teaching or its equivalent in other
+ c

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 functions
1. Educational Qualifications ----------------------------------- 85 approved by the institution͛s Board of Regents/Board of
pts. Trustees.
1.1 Highest relevant academic degree or educational State institution of higher learning refers to a chartered SUC,
attainment with CHED-Supervised HEI or TESDA-Supervised TEI whose main
the following maximum points credits function and responsibility is tertiary education and which
1.1.1 Doctorate Degree ͙͙͙͙͙͙͙͙͙͙͙͙͙ 85 offers
1.1.2 Master͛s Degree ͙͙͙͙͙͙͙͙͙͙͙͙͙͙ 65 degree programs.
1.1.3 LLB and MD ͙͙͙͙͙͙͙͙͙͙͙͙͙͙...͙ 65 2.2 For every year of full-time
The MD shall be considered a Doctorate degree if the academic͙͙͙͙͙͙͙͙͙͙͙͙.0.75
holder is teaching in a College of Medicine service in an institution of higher
learning other than SUCs, CHEDSupervised For the institutional level, a University Committee shall be the
HEIs and TESDA-Supervised TEIs; accrediting body. The patent paper/document must be
service in a public or private research institution presented to ascertain patent score. Credit points are divided
Academic service refers to teaching in the tertiary level in an equally among 2 or more individuals claiming credit for the
institution of higher learning which is not a SUC, CHED- same invention.
Supervised B. Discoveries
HEI or TESDA- Supervised TEI, or doing research on a A discovery must be the first of its kind or not of common
professional level in a research institution. knowledge. It shall be the result or product of the research of
=




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c


 an individual or a group of faculty.
7-20 Criteria Credits
2.3 For every year of administrative designation as: 1. Originality, educational 60% of 7 (0.6 x 7)
a. President͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.͙͙͙͙..3.0 impact, documentation
b. Vice-President͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.2.5 2. Evidence of wide dissemi- 40% of 7 (0.4 x 7)
c. Dean/Director/School Superintendent͙͙͙͙͙͙.͙͙͙..2.0 nation, e.g. exhibits, publications
d. Principal/Supervisor/Department͙͙͙͙͙..͙͙͙͙.͙.͙.1.0 Where there are more than one proponent, the points are to
Chairperson/Head of Unit be divided equally among them. If only one factor, e.g., (1),
2.4 For every year of full-time industrial/agricultural/teaching is satisfied, credit is awarded only for that factor.
experience as: C. Creative work has to satisfy one or more of the following
a. Engineer, Plant/Farm Manager͙͙͙͙͙͙͙͙͙͙..͙͙..1.5 criteria:
b. Technician͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙..͙͙.1.0 1. Originality 25% of 1 ʹ 7 pts.
c. Skilled Worker͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙..͙͙.0.5 2. Acceptability and recognition 25% of 1 ʹ 7 pts.
2.5 For every year of experience as: 3. Relevance and value 25% of 1 ʹ 7 pts.
a. Cooperating Teacher..͙͙͙͙.͙͙͙͙͙͙͙͙͙͙͙͙͙..1.5 4. Documentation and evidence 25% of 1 ʹ 7 pts.
b. Basic Education Teacher.͙.͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.1.0 of dissemination
3. Professional Development Achievement and 3.1.2 For every published book, original, edited, or compiled,
Honors͙͙͙͙͙͙...90 pts. copyrighted/published within the last 10 years
3.1 Innovations, patented inventions, publications and other a. As original author͙͙.͙͙͙͙͙͙͙͙͙͙͙͙.3 - 7
creative b. As co-author͙͙͙͙.͙͙͙͙͙͙͙͙͙͙͙͙͙2 - 5
works (maximum of 30 pts.) c. As reviewer.͙.͙..͙͙͙͙͙͙͙͙͙͙͙͙͙.͙1 - 4
3.1.1 For every cost and time-saving ͙͙͙͙͙͙͙͙͙͙͙1 to 7 d. As translator.͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙1 - 4
innovation, patented invention e. As editor͙͙.͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙1 - 3
and creative work as well as f. As compiler͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙1 - 2
discovery of an educational, The factors and their weights are:
technical, scientific and/or Textbooks, including Science and Technology and references
cultural value 

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Sub-categories under 3.1.1 are as follows: Single author 7 pts. 5 pts. 4 pts.
A. Inventions Co-author 5 3 2
These are original patented (or must have patent pending) Reviewer 4 2 1
works which have direct contribution to education, science Translator 4 2 1
and Editor 3 2 1
technology. The basis for the weight is the patent score. Compiler 2 1 1
Criteria Credits 3.1.3 For every scholarly research/monograph/educational
1. If patented Multiply patent score by technical articles in a technical/scientific/professional
weight assigned according journal
to criterion of utility a. International͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.5
2. If patent pending Multiply patent by weight b. National͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙..3
according to utility c. Local͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.2
Per invention or discovery the following additional criteria c



c


 
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and 


point allocations are prescribed: 7-23
Commercial utility on: 3.1.4 For every instructional manual/audio-visual material
ͻ an international scale͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙7 developed and approved for
ͻ a national scale͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙5 use͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙..1-3
ͻ institutional level ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙2 Under this item are approved and published sets of
The accrediting bodies for these factors on the international complete modules, laboratory manuals, operation manuals,
and national scale are: workbooks, teaching guides, including software, prototype
ͻ Science and technology ͙͙.͙͙͙͙͙͙DOST and computer-aided instruction materials. Syllabi, flipcharts,
ͻ Education.͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙..DECS/CHED/TESDA 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.

c

c


 
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Single author or maker Full


Co-author, co-maker 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 in
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. International͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙..5
b. National͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.3
c. Local͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙2
3.2.1.2 For certified industrial, agro-industrial ͙.1/120h
or fishery training (maximum of 5 pts.)
3.2.1.3 For participation in conferences, seminars,
workshops
a. International͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙..3
b. National͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.2
c. Local͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙1
=




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 Doctorate͙͙.͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙ 5
7-24
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. International͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙ 5
b. National͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.. 3
c. Local͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙. 2
3.2.2.2 For services rendered as coordinator, lecturer,
resource person or guest speaker in conferences,
workshops, and/or training courses
a. International͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙. 5
b. National͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.. 3
c. Local͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙. 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


c



c



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 Commission͙͙͙͙͙͙͙͙.͙...1
3.2.2.5 For expert services in accreditation work as
member of the Board of Directors, member of
the Technical Committee or Consultant
Group͙.͙͙͙͙͙.͙.1
3.2.2.6 For expert services in trade skill certification͙.1
3.2.2.7 For every year of service as coach/trainer in
sports or adviser of student organization͙͙....1
3.3 Membership in professional organizations/honor societies
and
honors received (maximum of 10 pts.)
c



7-25
3.3.1 For current individual membership in relevant
professional
organization(s)
a. Learned Society
Full member͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙. 2
Associate member͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙ 1
b. Honor Society͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.͙͙͙ 1
c. Scientific Society͙͙͙͙͙͙.͙͙͙͙͙͙͙͙͙͙.. 1
d. Professional
Officer͙͙͙͙͙͙͙͙͙͙͙͙ ͙͙͙͙͙͙͙͙͙͙ 1
Member͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.. 0.5
3.3.2 For undergraduate academic honors earned:
Summa Cum Laude͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙. 5
Magna Cum Laude͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.. 3
Cum Laude͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.. 1
3.3.3 Scholarship/Fellowship - This may be degree or
nondegree
granting.
a. International, competitive
Masteral͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙ 4
Non-Degree͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙ 3
b. International, non-competitive
Doctorate͙͙.͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙ 3
Masteral͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙ 2
Non-Degree͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙ 2
c. National/Regional, competitive
Doctorate͙͙.͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.. 3
Masteral͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.. 2
Non-Degree͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.. 1
d. National/Regional, non-competitive
Doctorate͙͙.͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙. 2
Masteral͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙. 1
e. Local, competitive or non-competitive
3.4 Awards of distinction received in recognition of
achievements in
relevant areas of specialization/profession and/or assignment
of
the faculty concerned
=


7-26
a. International͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.. 5
b. National/Regional..͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙. 3
c. Local͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.͙. 2
3.5 Community outreach (maximum of 5 points)
3.5.1 For every year of participation in service-oriented
projects in the community͙͙͙͙͙͙͙͙͙͙͙͙.. 1
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, Teacher͛s Board, etc͙͙͙͙͙͙͙͙͙͙͙ 5
b. Marine Board/Seaman Certificate;
Master Electrician Certificate, Master Plumber
Certificate, Plant Mechanic Certificate;
Professional Radio Operator
Certificate͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.. 2
c. Other trade skill certificate͙͙͙͙͙͙͙͙͙͙. 1
c
)
c


 
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&
 8.2.6 A Foreign Service Officer, Class IV, shall be assigned as

 third secretary in a diplomatic mission or vice-consul in a
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.
)$c

& Foreign Affairs (DFA).
The compensation scheme established under RA No. 7157
covers the following classes of positions under the Foreign
Service Group:
c




Foreign Service Staff Employee III 5
Foreign Service Staff Employee II 7
Foreign Service Staff Employee I 9
Foreign Service Staff Officer IV 11
Foreign Service Staff Officer III 15
Foreign Service Staff Officer II 18
Foreign Service Staff Officer I 22
Foreign Service Officer, Class IV 22
Foreign Service Officer, Class III 23
Foreign Service Officer, Class II 24
Foreign Service Officer, Class I 25
Counsellor 26
Chief of Mission, Class II 27
Chief of Mission, Class I 29

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.
consular establishment.
In a diplomatic post where there is a consular section, Foreign
Service
Officers may be designated as both diplomatic and consular
officers.
)$1&

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
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.
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.
)$


)$1&

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When assigned abroad, Foreign Service Officers shall be Foreign Service personnel who are assigned in foreign posts
commissioned as diplomatic or consular officers, or both. All are entitled to the following allowances as provided under RA
official acts of these officers shall be performed under such No. 7157:
commissions. Their diplomatic and consular titles, however, )$$$



2 3
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 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.
8.4.1.1.1 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:
ͻ changes in the cost of living abroad which arise from
changes in foreign currency conversion rates;
ͻ differentials in the cost of living between the Philippines
and foreign posts; and
ͻ 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.
8.4.1.1.3 Indices for OA - The DFA indices for OA indicated in
Annex B of this Chapter shall be 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.
8.4.1.1.5 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.
8.4.1.1.6 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.
8.4.1.1.7 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.
8.4.1.1.8 Review and Adjustment of OA Rates ʹ 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 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.
)$$$*
&9

8.4.1.2.5 Classification of Family Status ʹ Payment of the LQA
shall be based on the following classification of foreign
service personnel:
ͻ With family ʹ 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
ͻ Without family ʹ 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
family͟ 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.
8.4.1.2.7 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.
8.4.1.2.8 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 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

2*93 standard practice among landlords to require advance rental
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.
8.4.1.2.2 Basic Annual Rates of LQA - The basic annual rates
of LQA which are commutable are as indicated in Annex A of
this Chapter.
8.4.1.2.3 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.
8.4.1.2.4 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.
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 ʹ 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, 8.4.1.3.6 No PA shall be paid if the officer lives in a hotel as
to rent a house or apartment unit through an agent and pay residence.
the corresponding real estate agent͛s fee or commission upon 8.4.1.3.7 Entitlement to PA may be suspended due to
signing of the lease contract, payment of the above may be insufficiency of funds.
authorized chargeable against the account of the Department )$$$(


2(3
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 agent͛s fee or 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 ʹ 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.
)$$$

8.4.1.4.1 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 dependent spouse and for
unmarried legal minor dependent children not exceeding
three (3) in number.
8.4.1.4.2 Rates of FA ʹ 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:
ͻ US$ 150 per month for the dependent spouse; and
ͻ 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.
8.4.1.4.4 When Unmarried Children are Considered

23 Dependents - Unmarried children who are mentally or
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.
8.4.1.3.2 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.
8.4.1.3.3 Payment of PA ʹ 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.
8.4.1.3.4 Duty Status - A Head of Mission or Principal
Officer shall be considered on duty status even when on:
ͻ temporary duty outside the city or place where the officer
maintains regular office but within the territorial limits of the
officer͛s diplomatic or consular jurisdiction
ͻ 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
 &
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.
8.4.1.4.5 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:
ͻ The officer or employee is compelled to live alone due to
dangerous, notably unhealthy or excessively adverse living
conditions, or by other unavoidable circumstances like lack of
appropriate, reasonable educational facilities for the officer͛s
or employee͛s children; or
ͻ For the convenience of the Government, the officer or
employee must live alone without any or all the members of
the officer͛s or employee͛s 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.
)$$$#c

2c3
specifically approved by the President; payment of PA to be 8.4.1.5.1 Purpose of CA - It covers the increased cost of
resumed only on the date of the actual return to the territory clothing incurred in posts where the climate is different from
within the officer͛s diplomatic or consular jurisdiction that of the Philippines or where unusual circumstances exist.
ͻ leave of absence with pay, provided the leave is spent 8.4.1.5.2 Rates of CA - The following are the rates for
within the territorial jurisdiction of the post; no PA to be paid CA which shall be granted once every 12 months:
if the officer goes on leave with pay outside the territorial 
+J
jurisdiction of the post 
:


8.4.1.3.5 Territorial Limits - The territorial limits, in case of I

concurrent jurisdiction, shall extend to all countries or areas 

covered by the concurrent offices. I

Chiefs of Mission,
Counsellors (Career 8-13
Ministers) and those 8.4.1.6.2 Medical Insurance - Foreign service personnel may
assigned as Principal be required by the DFA to subscribe to a medical insurance
Officers or Consuls scheme available in the host country.
General Twenty-five percent (25%) of the corresponding premiums
$400 shall be payable by the personnel concerned and 75% thereof
$500 shall be borne by the Government as its contribution.
Foreign Service 8.4.1.6.3 Hospitalization - In the event of illness or injury
Officers including requiring hospitalization of a foreign service personnel, not as
those assigned as a result of vicious habits, intemperance or misconduct on
Consuls or Acting his/her part, the Government shall reimburse the cost of
Principal Officers medical expenses provided that no medical insurance scheme
$300 is available in the post of assignment.
$400 8.4.1.6.4 Medical Expenses - The medical expenses shall
Foreign Service Staff cover the cost of hospitalization and/or payment of the
Officers and services of the attending physician, including travel expenses
Employees to and from the hospital or clinic, and such other incidental
$200 expenses as may be incurred in connection with such
$250 hospitalization treatment but not to exceed US$1,000.
8.4.1.5.3 Classification of Posts - The rates of payment of CA 8.4.1.6.5 Legal Dependents - Only legal dependents
shall be in accordance with the following classification of living with the officer or employee at the
posts: post shall be entitled to the MA.
ͻ The following posts are considered as falling under the )$$$'



23
temperate zone, having 4 distinct seasons, namely, summer, 8.4.1.7.1 Purpose of RA - It is granted to chiefs of mission,
autumn, winter and spring: special envoys, permanent delegates or representatives to
Abu Dhabi Hanoi Riyadh international bodies, principal officers, and other ranking
Ankara Hongkong Rome diplomatic officers, and ranking foreign service officers
Athens Islamabad San Francisco stationed abroad to enable such officers to uphold the
Baghdad Jeddah Santiago prestige of the Republic of the Philippines, to represent the
Beijing Kobe Seoul country with dignity and distinction, and to carry out their
Berne Kuwait Stockholm functions more effectively.
Bonn London Sydney 8.4.1.7.2 Uses of RA - RA shall be expended only for purposes
Brasilia Los Angeles Tehran which are of a public character, beneficial to the interests of
Brussels Madrid Tel Aviv the public service, and connected with the exercise of the
Bucharest Manama The Hague functions of the Government in relation to the conduct of
Budapest Mexico City Tokyo foreign affairs. They may be expended for necessary
Buenos Aires Milan Toronto entertainment, charitable contributions, memorials, flowers,
Cairo Moscow Tripoli gifts, club initiation fees, membership dues, and the like. The
Canberra Muscat Vancouver office to whom the allowance is granted may disburse any
Chicago New Delhi Vatican City portion of it to cover necessary entertainment by the officer͛s
Dhaka New York Vienna subordinates to accomplish certain tasks assigned to them.
Doha Ottawa Washington, D.C. 8.4.1.7.3 Supporting Document - Expenses charged to RA
Geneva Paris Wellington must be supported by proper receipts or vouchers if the
Hamburg Pretoria Xiamen individual amount of expenditures exceeds US$50.00 or its
ͻ The following posts are considered as equivalent. Where expenses are incurred for entertainment,
falling under the tropical zone: the voucher must be accompanied by a statement of the
Agana Jakarta Phnom Penh officer concerned or by such proofs showing that the
Bangkok Kuala Lumpur Port Moresby expenses have been made in the public interest.
Brunei Lagos Saipan 8.4.1.7.4 Special Entertainment - Should special entertaining
Havana Manado Singapore be necessary because of formal visits of Philippine dignitaries
Honolulu Nairobi Yangon travelling on diplomatic or special passports, the DFA
)$$$%=


2=3 Secretary shall be informed in advance thereof and specific
8.4.1.6.1 Purpose of MA - It is intended to cover the cost of requests for funds therefor shall be made. No such expenses
medical insurance in countries where medical care is shall be incurred without the prior authorization of the DFA
unusually expensive, including cost of hospitalization and Secretary.
medical treatment of foreign service personnel and legal 8.4.1.7.5 The annual RA rates are as follows:
dependents living with the officer or employee at the post. ͻ High Cost Posts are posts which have overseas allowance
c


 
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 index in the range of 90 and above
Rank/Position Representation overseas allowance indices in the
Allowance range of 70 to 79
Chief of Mission Rank/Position Representation
(not Head of Post) Allowance
US $ 6,000 Chief of Mission
Counsellor (not Head of Post)
(Career Minister) US $ 2,700
4,500 Career Minister 2,700
Foreign Service Officer, Foreign Service Officer,
Class I Class I
3,600 2,100
Foreign Service Officer, Foreign Service Officer,
Class II Class II
2,700 1,620
Foreign Service Officer, Foreign Service Officer,
Class III Class III
1,800 1,080
Foreign Service Officer, Foreign Service Officer,
Class IV Class IV
1,800 1,080
Foreign Service Staff Foreign Service Staff
Officer I Officer I
1,440 900
Others duly authorized Others duly authorized
by the Secretary by the Secretary
1,440 900
ͻ Medium Cost Posts are posts which )$$$)! 



2!3
have overseas allowance indices in the 8.4.1.8.1 Purpose of EA - It is granted to compensate
range of 80 to 89 for additional cost incurred to educate legal
Rank/Position Representation dependents not exceeding 3 who are
Allowance c


 
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Chief of Mission 8-17
(not Head of Post) enrolled in the primary, elementary and
US $ 3,600 high school levels where free public
Counsellor education at the post is not provided for.
(Career Minister) 8.4.1.8.2 Actual Costs ʹ The EA may be granted as
3,600 reimbursement of actual costs, within such
Foreign Service Officer, maximum amount as set by the DFA and
Class I DBM Secretaries, with the approval of the
2,880 President, per school year for each child,
Foreign Service Officer, subject to presentation of receipts and
Class II other evidences of payment of
2,160 matriculation, tuition fees, books and other
Foreign Service Officer, school fees.
Class III )$#

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1,440 8.5.1 Assignment and Accreditation - The assignment and
Rank/Position Representation accreditation
Allowance of personnel in any agency of the Government as service
Foreign Service Officer, attachés
Class IV to embassies or representatives to consulates shall have the
1,440 prior
Foreign Service Staff clearance of the DFA Secretary who shall take into account
Officer I the
1,080 specific places where the services of these officers or
Others duly authorized employees
by the Secretary from the other government agencies are needed, except
1,080 Trade
ͻ Low Cost Posts are posts which have Attachés who shall be assigned and accredited only after
consultation with the Department of Trade and Industry Foreign Service Staff Officer II 32,744 19,288 16,518
Secretary. Foreign Service Staff Officer III 31,185 18,371 15,731
8.5.2 Appointments - The authority to appoint service Foreign Service Staff Officer IV 29,700 17,496 14,980
attachés and Foreign Service Staff Employee I 27,000 15,868 13,588
representatives shall be vested in the Department Secretary Foreign Service Staff Employee II 25,714 15,868 13,588
sending them. An agency shall have only one (1) service Foreign Service Staff Employee III 24,490 15,868 13,588
attaché =




c



c



or representative accredited to one (1) post, except military 8-20
and 60
trade attachés. 

4



*
&9

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. L
8.5.3.1 As a general rule and except as the President may *9
appoint, no officer of the Philippine Government outside L
of the DFA shall be assigned an assimilated rank higher 
 
than Foreign Service Officer, Class I. L
8.5.3.2 The assimilated ranks shall not confer diplomatic *9
rankings for purposes of protocol. L
=




c



c


 Abu Dhabi
8-18 Abuja
The assimilated ranks of military and civilian attachés from Agana
the Amman
Department of National Defense, Department of Trade and Ankara
Industry, Department of Tourism, Department of Finance and Athens
Department of Agriculture are indicated in Annex C of this Baghdad
Chapter. Bandar Seri Begawan
c


 
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 Bangkok
8-19 Barcelona
6 Beijing








*
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 Beirut


 Berlin

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 Berne
(+J3 Bonn
*
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2*93 Brasilia

:>



 Brussels


 Bucharest
2 3 Budapest
<  Buenos Aires
(
 Cairo
<
 Canberra
(
 Caracas
Chief of Mission Chicago
Head of Diplomatic Mission Colombo
Others, including Consul General Dakar
69,599 Dhaka
60,521 Dili
42,871 Doha
35,723 Dubai
35,041 Dublin
29,199 Geneva
Counsellor (Career Minister) 52,626 31,064 25,394 Guangzhou
Foreign Service Officer, Class I 45,762 28,244 23,080 Hamburg
Foreign Service Officer, Class II 41,601 25,674 20,986 Hanoi
Foreign Service Officer, Class III 37,819 23,341 19,079 Havana
Foreign Service Officer, Class IV 34,382 21,218 17,342 Holy See
Foreign Service Staff Officer I 34,382 21,218 17,342 86
93 115
100 100
77 70
86 100
89 65
84 100
75 100
77 100
94 130
89 130
90 100
98 130
107 70
93 100
82 130
94 Madrid
81 Manado
92 Manama
82 Melbourne
76 Mexico City
90 Milan
82 Montreal
100 Moscow
77 Muscat
91 Nairobi
77 New Delhi
89 New Orleans
79 New York
86 Osaka
95 Oslo
107 Ottawa
89 Paris
92 Phnom Penh
79 Pohnpei
85 Port Moresby
96 Prague
100 Pretoria
90 Rabat
100 Riyadh
100 Rome
110 Saipan
130 San Diego
100 San Francisco
95 Santiago
95 Seattle
130 Seoul
95 Shanghai
125 Singapore
130 Stockholm
130 Sydney
130 Tehran
110 Tel-Aviv
130 94
130 70
130 91
90 90
95 85
97 96
93 100
95 90
81 100
78 125
79 100
100 100
100 130
128 100
105 95
91 125
98 c


 
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75 8-21
86 Note: The reference post for the annual rates for OA and LQA
88 (at 100%) is New
90 York City.
92 
c
 


 
*9
83 Given:
86 Employee A, married with one dependent child, holding the
96 position of Foreign
86 Service Staff Officer I and posted in Geneva
100 OA = US $ 34,382
100 LQA = US $ 21,218
82 Required: Annual proportionate OA and LQA while in Geneva
100 OA = US $ 34,382 for the reference post x 107% for Geneva
107 ----------------------------------
89 100% for the reference post
80 OA = (US $ 34,382) (1.07)
99 OA = US $ 36,788.74
90 LQA = US $ 21,218 for the reference post x 130% for Geneva
83 ----------------------------------
90 100% for the reference post
130 LQA = (US $ 21,218) (1.30)
70 LQA = US $ 27,583.40
100 
 
100 L
115 *9
130 L
100 
 
130 L
100 *9
90 L
70 Hongkong SAR
100 Honolulu
100 Houston
150 Islamabad
130 Jakarta
102 Jeddah
130 Koror
90 Kuala Lumpur
100 Kuwait City
115 Libreville
130 Lima
100 Lisbon
100 London
100 Los Angeles
130 100
100 100
100 100
80 130
81 130
86 70
86 130
75 100
81 115
93 100
78 95
87 70
100 =




c



c



100 8-22
115 6c
110 

:
=

c


 K
100 



70  

  




95 


100 1


>1&



:
100 (a) Department of National
90 Defense
100 (b) Department of
100 Trade and Industry
90 Brigadier General
130 Colonel/Navy Capatain
130 Lieutenant Colonel/
100 Major/Lieutenant
The Hague Commander/Commander
Tokyo Captain/Lieutenant Senior
Toronto Grade
Tripoli First Lieutenant/Lieutenant
Vancouver Junior Grade
Holy See Second Lieutenant/Ensign
Vienna Special Trade
Vientiane Representative
Warsaw Foreign Trade Service
Washington, D.C. Officer I
Wellington Foreign Trade Service
Winnipeg Officer II
Xiamen Foreign Trade Service
Yangon Officer III
93 Foreign Trade Service
128 Officer IV
93 Foreign Trade Service Staff
82 Officer
91 Counsellor
96 Foreign Service Officer,
96 Class I
80 Foreign Service Officer,
85 Class II
100 Foreign Service Officer,
90 Class III
91 Foreign Service Officer,
89 Class IV
83 Foreign Service Officer,
130 Class IV
150 Counsellor
102 Foreign Service Officer,
100 Class I
102 Foreign Service Officer,
Class II Foreign Service Officer,
Foreign Staff Officer, Class III
Class III Foreign Service Staff
Foreign Service Officer, =




c



c



Class IV 8-24
Foreign Service Staff 1


>1&



:
Officer II (f) Department of
c


 
(
&

 Agriculture
8-23 Officer III
1


>1&



: (Center Coordinator)
(c) Department of Tourism Agricultural Attaché
(d) Department of Agricultural Analyst
Finance Officer I
(e) Department of Labor Foreign Service Officer,
and Employment Class I
Tourism Attaché Foreign Service Officer,
Public Relations Officer IV Class III
Administrative Assistant Note:
Tourism Promotion Assistant The allowances/benefits of incumbents of the positions from
Regional Convention the above-listed Departments while
Coordinator stationed abroad are computed in the same manner as those
Convention Service Officer of foreign service personnel of the
Senior Market Assistant DFA, based on the assimilated ranks.
Administrative Assistant II 9-1
Finance Attaché c
/
Revenue Attaché
Assistant Revenue Attaché


c



c



Labor Attaché II  
Labor Attaché I *



+
Overseas Worker Welfare /$?

0
:&

Officer IV /$$0

1213-
$%
Overseas Worker Welfare Local governments are political units composed of provinces,
Foreign Service Officer, cities, municipalities and barangays. They have long been
Class I existing with their own legislative bodies which are endowed
Foreign Service Officer, with
Class II specific powers as defined in the Revised Administrative Code
Foreign Service Staff and
Officer IV individual local government unit (LGU) charters. These local
Foreign Service Staff legislative bodies were then called provincial boards in the
Officer III case of
Foreign Service Officer, provinces, city councils in cities and municipal councils in
Class I municipalities. These local legislative bodies were vested with
Foreign Service Officer, the
Class II power to determine the number of employees that each
Foreign Service Staff office
Officer IV should have and to fix their salary rates as agreed upon by
Foreign Service Staff the
Officer III majority. In exercising such power, however, there were no
Foreign Service Officer, specific guidelines nor definite standards used in the creation
Class I of
Foreign Service Officer, positions and the fixing of salaries. Position titles were not
Class I descriptive nor reflective of the duties and responsibilities of
Foreign Service Officer, the
Class II positions and salaries were fixed arbitrarily. For local officials,
Foreign Service Officer, however, laws such as Republic Act (RA) No. 268 as amended,
Class I and RA No. 4477 were passed by Congress fixing the salaries
Foreign Service Officer, of
Class II
municipal, provincial and city officials. These salary laws of national goals, RA No. 7160, the ͞Local Government Code
created of
a wide gap between the salaries of rank-and-file employees 1991,͟ was enacted. The pertinent provisions of the Code are
and as
the officials. follows:
/$$1-
$% 9.1.4.1 The personnel, records, equipment and other assets
Cognizant of the need for a more effective local government of
personnel administration, PD No. 1136, ͞The Local the abolished JCLGPA shall be transferred to the
Government appropriate office in the Civil Service Commission
Personnel Administration and Compensation Plans Decree of (CSC).
1977,͟ was promulgated on May 5, 1977. Its salient features 9.1.4.2 Every LGU shall design and implement its own
are organizational structure and staffing pattern taking into
as follows: consideration its service requirements and financial
9.1.2.1 The creation of the Joint Commission on Local capability, but subject to the minimum standards and
Government Personnel Administration (JCLGPA) to guidelines prescribed by the CSC.
formulate policies on local government personnel 9.1.4.3 Pursuant to Section 81, RA No. 7160, the
administration, position classification and pay compensation
administration; and to implement the provisions of PD of local government officials and employees shall be
No. 1136; determined by the sanggunian concerned provided
9.1.2.2 The adoption by LGUs of rational personnel policy and that:
position classification and compensation plans, based 9.1.4.3.1 The increase in compensation of elective
on the principle of equal pay for substantially equal local government officials shall take effect
work, and to recognize differences in pay arising from only after the terms of office of those
substantive differences in duties and responsibilities and approving such increase shall have expired;
qualification requirements; and 9.1.4.3.2 The increase in compensation of the
9.1.2.3 The maximum salary rates for provincial, city and appointive officials and employees shall take
municipal officials by equating them to CESO ranks. effect as provided in the ordinance
/$$-
$%'#) authorizing such increase;
In pursuance of the Constitutional mandate for the adoption 9.1.4.3.3 Said increase shall not exceed the
of a percentage limitation for personal services;
unified Position Classification and Compensation System and
(PCCS) in 9.1.4.3.4 Such compensation may be based upon the
the government, RA No. 6758, the ͞Compensation and pertinent provisions of RA No. 6758.
Position 9.1.4.4 The local sanggunian is empowered to determine the
Classification Act of 1989͟ popularly known as the ͞Salary positions, salaries and wages, allowances and other
Standardization Law,͟ includes LGUs under its coverage. benefits of officials and employees paid wholly or
Section 10, RA No. 6758, provides that the rates of pay shall mainly from local government funds.
be 9.1.4.5 If the finances of LGUs allow, the local sanggunian
determined on the basis of the class and financial capability may
of provide for additional allowances and other benefits to
each LGU. Such rates of pay shall not exceed the following judges, prosecutors, public elementary and high school
percentages of the rates of the salary schedule prescribed teachers and other national government officials
under stationed in or assigned in LGUs.
Section 7 of the Act: /$$#

 2 3-
$
For Provinces/Cities For Municipalities 9.1.5.1 Realizing the need to address issues on position
Special Cities 100% classification and compensation in LGUs in view of the
1st Class 100% 90% provisions of RA No. 7160, and to effectively enforce
2nd Class 95% 85% the provisions of the Constitution and fully rationalize
3rd Class 90% 80% the standardization of compensation in the
4th Class 85% 75% government particularly in LGUs, AO No. 42 was issued
5th Class 80% 70% by the President on March 3, 1993, to reiterate the
6th Class 75% 65% provision of RA No. 6758 that the Department of
/$$-
$'%. Budget and Management (DBM) shall be the
To enable LGUs to attain their fullest development as self- Administrator of the unified Position Classification and
reliant Compensation System of the government and as such
entities and make them more effective partners in the shall undertake the following:
attainment 9.1.5.1.1 Provide guidelines on the classification of
local government positions and on the
specific rates of pay therefor; Like the positions in the national government covered by RA
9.1.5.1.2 Provide criteria and guidelines for the grant No. 6758,
of all allowances and additional forms of positions in LGUs are classified based on duties and
compensation to local government responsibilities and
employees; the pertinent rules, regulations and procedures on position
9.1.5.1.3 Advise and assist LGUs on matters of classification
position classification and compensation of provided under Chapter 2 of this Manual.
local government personnel; and /$$

c


 ʹ In classifying positions,
9.1.5.1.4 Provide technical expertise in the training of LGUs
local government personnel to enable them shall be guided by the following:
to administer and maintain the 9.2.1.1 Index of Occupational Services, Position Titles, and
compensation and position classification Salary Grades (IOS) in the Local Government ʹ This is a
system. document listing the different occupational services,
9.1.5.2 The issuance of this clarificatory order was anchored occupational groups, series of classes and classes of
on positions existing in LGUs. It also shows the salary
the following: grade assignment of each class of positions.
9.1.5.2.1 The abolition of the JCLGPA pursuant to 9.2.1.2 Class Specification ʹ This is a detailed description of a
Section 77, RA No. 7160, and the transfer class of positions. It serves as standard or guide for
of all its personnel, records, equipment and allocating positions to their proper classes. A more
other assets to the CSC; detailed discussion on class specifications is found in
9.1.5.2.2 The inability of RA No. 7160 to specifically Chapter 2 of this Manual.
provide for the transfer of the respective 9.2.1.3 Salary Grade Allocation of Elective Officials - RA Nos.
functions of the member agencies of the 6758 and 7160 and their implementing rules and
JCLGPA; regulations provide the salary grade allocations of
9.1.5.2.3 Section 325 (b) of RA No. 7160 states that: elective officials in LGUs that correspond to specific
"No official or employee shall be entitled to salary rates in the salary schedules prescribed for LGUs.
a salary rate higher than the maximum 9.2.1.3.1 Elective Officials of Provinces
fixed for his position or other positions of 




equivalent rank by applicable laws, rules 

and regulations issued thereunder; Provincial Governor 30


c



c


 4*+ Provincial Vice-Governor 28
9-5 Sangguniang Panlalawigan Member 27
9.1.5.2.4 The only applicable law that governs the 9.2.1.3.2 Elective Officials of Cities
Compensation and Position Classification Special Cities (Manila and Quezon City) and
System in the government is RA No. 6758 Highly Urbanized Cities
which is administered by the DBM as 




mandated; and 

9.1.5.2.5 The Compensation and Position City Mayor 30
Classification System established in City Vice Mayor II 28
pursuance of the Constitutional mandate Sangguniang Panlungsod Member II 27
covers all national and local government Component Cities
positions, appointive or elective, on full-time 




or part-time basis now existing or hereafter 

created. City Mayor 30
/$$%H


?




 
 City Vice Mayor I 26
-
$ Sangguniang Panlungsod Member I 25
.

=
 // 9.2.1.3.3 Elective Officials of Municipalities
Under said Joint Resolution approved by the President on ͻ Within Metropolitan Manila
March 

c



c


 4*+
7, 1994, LGUs other than special and 1st class cities and 




provinces 

may adopt the salary schedules for higher class LGUs, Municipal Mayor II 28
provided Municipal Vice Mayor II 26
that the salary schedules adopted shall be uniformly applied Sangguniang Bayan Member II 25
to all ͻ Outside Metropolitan Manila
positions in the said LGUs, subject to certain conditions. 




/$ 

c


 
*+ 

Municipal Mayor I 27
Municipal Vice Mayor I 25 9.2.1.5 Other Positions ʹ The highest position below the rank
Sangguniang Bayan Member I 24 of an assistant department head may be allocated in
9.2.1.4 Salary Grade Allocation of Appointive Officials ʹ RA accordance with the following standard leveling of
No. positions based on the level and income class of the
6758 and its implementing rules and regulations LGU:
provide the salary grade allocation of appointive *


officials in LGUs that corresponds to a specific salary 

+
rate in the salary schedule prescribed for LGUs. ?& 

0
 
9.2.1.4.1 Appointive Officials of Provinces 
1
?





 Provinces SG-22, examples: Licensing Officer

 IV, Project Development Officer IV
Provincial Government Department Head 26 Special Cities SG-24, examples: Licensing Officer
Provincial Government Assistant V, Project Development Officer V
Department Head Highly Urbanized
24 Cities
9.2.1.4.2 Appointive Officials of Cities SG-22, examples: Licensing Officer
ͻ Special Cities (Manila and Quezon City) IV, Project Development Officer IV




 Component Cities SG-22, examples: Licensing Officer

 IV, Project Development Officer IV
City Government Department Head III 27 1st to 3rd Class
City Government Office Head 26 Municipalities
City Government Assistant Department SG-18 to 19, examples: Licensing
Head III Officer III, SG-18, and Engineer III,
25 SG-19
ͻ Highly Urbanized Cities/Other 4th to 6th Class
Metropolitan Manila Cities Municipalities




 SG-14 to 16, examples: Registration

 Officer II, SG-14, Project
City Government Department Head II 26 Development Officer II, SG-15, and
City Government Assistant Department Dentist II, SG-16
Head II N.B.
24 The position titles of the positions below the Assistant
ͻ Component Cities Department Heads must be in accordance with the




 Index of Occupational Services, Position Titles and

 Salary Grades (IOS) in the Local Government issued
City Government Department Head I 25 under Local Budget Circular No. 61 dated March 18,
City Government Assistant Department 1996.
Head I 9.2.1.6 Other Positions Assigned to LGU Officials ʹ The
23 classification of Private Secretary, Executive Assistant and
9.2.1.4.3 Appointive Officials of Municipalities Driver positions is dependent on the level/rank of the
ͻ Within Metropolitan Manila position they serve. Per established standards, the allowable




 level of these positions for the said officials are as follows:

 *


Municipal Government Department Head !6 



!6 

1

II Provincial
25 Governor
Municipal Government Assistant Private Secretary II,
Department Head II SG-15
23 Executive Assistant
ͻ Outside Metropolitan Manila IV, SG-22




 Driver

 II, SG-4
Municipal Government Department Head I 24 Provincial
Municipal Government Assistant Vice-
Department Head I Governor
22 Private Secretary I,


c



c


 4*+ SG-11
9-9 Executive Assistant
II, SG-17 area of assignment within the municipality, usually consisting
Driver I, of at least one (1) barangay. Notwithstanding that the
SG-3 RHP pursuant to RA No. 7305 is given the same salary grade
City Mayor Private Secretary II, as the MHO, the MHO has ascendancy over the RHP in the
SG-15 hierarchical ranking of positions in LGUs.
Executive Assistant 9.2.1.9 Changes in Nomenclature of Positions - In line with
IV, SG-22 Section 325 (f) of RA No. 7160, changes in designation or
Driver nomenclature of positions resulting in promotion or
II, SG-4 demotion in ranks or increase or decrease in compensation
City Vice shall not be allowed, except when the positions are actually
Mayor vacant.
Private Secretary I, /$$c


-

> - Creation of new
SG-11 positions in LGUs may be allowed subject to the following
Executive Assistant conditions that:
II, SG-17 9.2.2.1 All the mandatory positions listed under RA No. 7160
Driver I, have been created and provided for;
SG-3 9.2.2.2 The Salary Standardization Law has been fully
Municipal implemented;
Mayor 9.2.2.3 The absorption of national government personnel by
Private Secretary II, LGUs on account of the devolution of functions has been fully
SG-15 effected;
Executive Assistant 9.2.2.4 The general limitations on personal services
II, SG-17 expenditures are not exceeded;
Driver 9.2.2.5 The classification of the positions should be consistent
II, SG-4 with the standards and implementing rules and regulations of
Municipal RA No. 6758;
Vice Mayor 9.2.2.6 The creation of new positions or offices is subject to
Private Secretary I, the conditions prescribed under Civil Service Commission
SG-11 Memorandum Circular No. 19, s. 1992; and
Executive Assistant 9.2.2.7 The classification of the heads of new offices shall be
I, SG-14 dependent on the level of the organizational structure of the
Driver I, new offices. If the new office is considered a department, the
SG-3 head shall be classified as Department Head. If lower than a
Pursuant to Budget Circular No. 2004-3, dated March 6, department but higher than a division, the head shall be
2004, however, the following positions were retitled as classified as Assistant Department Head.
follows: /$$c



-c



AA proposal to
From To
Private Secretary I, SG-11 Administrative Assistant V, SG-11
Private Secretary II, SG-15 Senior Administrative Assistant III,
SG-15
Driver I, SG-3 Administrative Aide III, SG-3
Driver II, SG-4 Administrative Aide IV, SG-4
9.2.1.7 Heads of Administrative/Support Units ʹ 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.
9.2.1.8 Municipal Health Officers (MHOs) and Rural Health
Physicians (RHPs) ʹ 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 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
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 Justification for the creation of the new class;
9.2.3.2 Duly accomplished Position Description Form; and
9.2.3.3 Structural, functional and position charts.
/$ c
/$$0



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
G - Fifth Class Municipalities
H - Sixth Class Municipalities
/$$


?& 

   municipality which adopted the salary schedule for a 1st
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

c



c


 4*+
prescribed salary schedule for its income
class and assure sustainability before it can
exercise the option to adopt a higher salary
schedule;
9.3.2.1.2 That the LGU is financially capable;
9.3.2.1.3 That the salary schedule to be adopted shall
be uniformly applied to all positions in the
LGU concerned;
9.3.2.1.4 That the salary grade allocation of positions
and the salary steps of personnel shall be
retained;
9.3.2.1.5 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;
9.3.2.1.6 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;
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:
ͻ Statutory and contractual obligations of
the LGU;
ͻ Continued implementation of RA No.
6758;
ͻ Creation of mandatory positions;
ͻ Absorption of devolved positions; and
ͻ 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
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.
9.3.2.2.2 For new hirees/appointees, their salaries
shall be at the hiring rates of their positions
based on the prescribed/lower salary
schedule.

9-15
/$$4
The rules and regulations on step increments as discussed
under
Chapter 3 of this Manual also apply to LGUs. However, in case
a
LGU reverts to the prescribed or lower salary schedule, the
following rules on step increment shall be observed:
9.3.3.1 Notwithstanding the actual salary rate of the
employee
based on the higher salary schedule, his/her step
increment after reversion to the prescribed or lower
salary schedule shall be based on the years of service in
the position. Thus, an employee with 6 years of service
in the position shall be at the third step regardless of
his/her higher salary rate. To illustrate: A Planning
Officer I, SG-11, with six years of service in the
position in a municipal government of a 4th class
municipality which adopted the salary schedule for a 1st
class municipality later reverted to the salary schedule
for a 2nd class municipality:
4th Class
Adopted 1st Class
Reverted to
2nd Class
P8,301
3rd step
P9,961
3rd step
P9,961 *
3rd step
* same salary rate due to ͞no diminution in pay policy͟ devolution.
Upon serving 9 years in the position, he/she will be ´ A devolved MAO appointed to the
entitled to the salary corresponding to the 4th step, but optional local position of Municipal
will not receive any adjustment in pay since his/her Agriculturist (MA) shall be entitled
actual salary is still higher than the 4th step. This shall to the RATA for a Department Head
continue until such time that his/her salary rate or Assistant Department Head as
equalizes the prescribed rate for his/her step in the the case may be in a particular
salary schedule being implemented by the LGU. This LGU.
rule is also applicable to municipalities converted to ´ A new appointee to the MAO
cities with lower salary schedules. psition shall no longer be entitled
/$$  c





0 to RATA.
The following other compensation, allowances and benefits ͻ Social Welfare Officers (SWOs)
authorized for national government personnel are likewise ´ The devolved SWOs in
granted to local government personnel subject to the criteria, municipalities are not entitled to
rules and regulations issued for the purpose as discussed RATA. However, when the
under devolved SWO is appointed to the
Chapter 3 of this Manual and to the additional rules optional local position of Municipal
applicable Social Welfare and Development
only to LGUs: Officer (MSWDO), he/she shall be
/$$$








 entitled to the RATA for a
9.3.4.1.1 The following LGU officials are entitled to Department Head or Assistant
representation and transportation Department Head as the case may
allowances (RATA) based on the rates and be in a particular LGU.
conditions indicated in the annual General ͻ Rural Health Physicians (RHPs)
Appropriations Act (GAA): ´ RHPs, whether devolved or
ͻ Provincial Governors and City/Municipal appointed, shall be entitled to
Mayors; monthly RATA of P2,200 pursuant
ͻ Provincial Vice-Governors, City/Municipal to RA No. 7305 or the Magna Carta
Vice Mayors; of Public Health Workers.
ͻ Members of the Sangguniang ´ A RHP who is appointed to the
Panlalawigan/ Panlungsod/ Bayan; mandatory department head
ͻ Local Government Department Heads position of Municipal Health Officer
and their equivalents; (MHO) is entitled to the RATA for a
ͻ Local Government Assistant Department Department Head in a particular
Heads and their equivalents; and LGU.
ͻ 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.
>c= 

9.3.4.1.2 RATA for Personnel Devolved to LGUs
Pursuant to RA No. 7160
ͻ 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)
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
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:
c

Special Cities 100%
1st Class 100% 90%
2nd Class 90% 80%
3rd Class 90% 80%
4th Class 80% 70%
5th Class 80% 70%
6th Class 80% 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.
9.3.4.2.3 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.
9.3.4.2.4 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.
/$$$

c


 concerned has undergone the
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
Chapter 3 of this Manual likewise apply to
LGU personnel.
9.3.4.3.2 The grant of ADCOM covers all officials and
employees of LGUs.
9.3.4.3.3 Payment thereof is subject to availability of
local government funds.
9.3.4.3.4 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.
/$$$@
8!0
 
c
  received by the barangay officials.
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.

c



c


 4*+
/$$$#?



 9-21
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:
ͻ 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.
ͻ 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
salary schedule being implemented by
the LGU concerned.
ͻ 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.
ͻ 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
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
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

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 Human Rights
Action Officers (BHRAOs)
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.
ͻ 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

0
 
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:
ͻ The grant thereof is not mandatory on
the part of the LGU;
ͻ 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;
ͻ That all contractual and statutory
obligations of the LGU including
the implementation of RA No. 6758
and the benefits mandated under RA
No. 7305 (Magna Carta of Public
Health Workers) have been fully
provided for in the budget;
ͻ That the LGU has fully implemented
the devolution of functions/personnel
in accordance with RA No. 7160.
ͻ That the delivery of basic services and
functions mandated under RA No.
7160 are not jeopardized;
ͻ That the grant thereof shall be subject
to a regular review and may be
withdrawn as deemed necessary by
the LGU; and
ͻ 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.
/$$$%
The rules and regulations on the grant of anniversary
bonus (AB) in the national government under Chapter 3
of this Manual are also applicable to LGUs. However,
the following additional rules and regulations are
applicable only to LGUs:
9.3.4.6.1 The AB shall be granted only during
milestone years which refer to the 15th
anniversary and to every 5th year thereafter
of the founding of the LGUs;
9.3.4.6.2 The founding year of LGUs shall be as
indicated in the authentic documents
showing their establishment, or in the
enabling acts or laws creating such
localities;
9.3.4.6.3 The counting of milestone years shall start
from the year the LGUs were founded
regardless of whether they were
subsequently renamed, reclassified or
converted from one level to another, such
as barangay to municipality, municipality to
city;
9.3.4.6.4 The counting of the milestone years of an
LGU which was created by law out of the
split of an LGU and became a distinct and
separate LGU shall begin from the time of
the LGU͛s separation/splitting or creation as
a separate entity; and
9.3.4.6.5 The counting of milestone years of merged
LGUs shall reckon from the date they were
merged.
/$$$'(9

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.
9.3.4.7.2 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
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.
9.3.4.7.2.3 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.
9.3.4.7.3 Provision of free quarters outside of the 50-
kilometer radius from the provincial capitol,
such as in Metropolitan Manila, shall not be
allowed.
9.3.4.7.4 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.
/$$$)  c



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.
9.3.4.9.2 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.
9.3.4.9.3 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
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


0 item 9.3.4.9.1.
9.3.4.8.1 The pertinent rules and regulations on the /$$$.c



=
*

& 


following other compensation, allowances 0

>9
8H 
0


0

and benefits provided under Chapter 3 of *+
this Manual are also applicable to LGU The following rules shall apply on the payment of
personnel: compensation to members of local regulatory boards/
ͻ Productivity Incentive Benefits; quasi-judicial bodies and similar bodies in LGUs:
ͻ Uniform/Clothing Allowance; 9.3.4.10.1 A member of a local regulatory and quasijudicial
ͻ Overtime Pay; body, e.g., People͛s Law
ͻ Night Shift Differential Pay; Enforcement Board (PLEB), Mining
ͻ Subsistence Allowance; and Regulatory Board (MRB) or similar body
ͻ Laundry Allowance. created pursuant to a law or Presidential
Their grants are subject to the personal authority shall be compensated in the form
services limitation under RA No. 7160. of per diem at a rate not exceeding P1,000
9.3.4.8.2 The rules and regulations on travel per meeting/session actually attended but
allowance/expenses provided under Chapter not to exceed 4 paid sessions or P4,000 per
3 of this Manual are also applicable to LGU month.
personnel. 9.3.4.10.2 Each administrative support staff rendering
/$$$/c



*




 services to a board/body may be
1&

(

B

 compensated in the form of honoraria not
The following rules shall apply relative to the payment exceeding P200 per session but not to
of compensation to officials and employees designated exceed 4 paid sessions or P800 per month.
9.3.4.10.3 The grant of compensation shall be subject
to the following conditions:
ͻ That no law bars them from receiving
compensation as members.
ͻ That the grant thereof is subject to the
budgetary limitation on personal
services under Section 325 of RA No.
7160, and to availability of funds.
ͻ That when the law expressly provides
the rate of compensation, the




c




pertinent provision of the law shall

prevail.
/$$$c



!68 
=
  1996, barangay government officials are covered by the
*


&& 

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-officiomembers in the Sangguniang
Panlungsod/Bayan in lieu of the Presidents who were
elevated to the Sanggunian Panlalawigan shall receive their
full salaries and allowances from the concerned
city/municipal governments.
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.
/$$$c


0

&

Pursuant to Executive Order No. 332 dated May 16,
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:
ͻ SG-14 for the Punong Barangay; and
ͻ 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, otherpositions
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:



Utility Worker I 1
Clerk I 3
Accounting Clerk I 4
Barangay Health Aide 4
Revenue Collection Clerk I 5
Day Care Worker I 6
Administrative Assistant 8
Pursuant to Budget Circular No. 2004-3
dated March 6,2004, however, the abovelisted
positions have been retitled as
follows:
(
Utility Worker I, SG-
1
Administrative Aide I,
SG-1
Clerk I, SG-3 Administrative Aide
III, SG-3 1

Accounting Clerk I, 

SG-4 8
Administrative Aide IV, 1

SG-4 +

Administrative 8.
Assistant, SG-8 1

Administrative 

Assistant II, SG-8 

9.3.4.12.3 Positions compensated in the form of salaries shall 8/
be allocated to their proper position titles and salary grades 1
4B
in accordance with the IOS for the Local Government. 8)
Position titles not consistent with the IOS shall be submitted 20 

to the DBM for approval. 1
3
9.3.4.12.4 Barangay personnel paid salaries and whose 1
444
positions are classified in accordance with 8'2

RA No. 6758 and issued appointments in accordance with the 0 
1
3
Civil Service law, rules and regulations may be entitled to the 1
48#
following benefits in accordance with law, rules and 2
0 

regulations pertaining thereto, provided that the total &

1
3
compensation of concerned employees shall not exceed the 1

c 
compensation received by the lowest barangay officials: 8
ͻ Personnel Economic Relief Allowance; A Provinces
ͻ Additional Compensation; 1st Class
ͻ Year-End Bonus and Cash Gift; 2nd Class
ͻ Productivity Incentive Benefit; and 3rd Class
ͻ Other benefits accruing to regular 4th Class
government employees. 5th Class
9.3.4.12.5 Barangay Tanods and Members of the 6th Class
Lupong Tagapamayapa may be granted 100%
honoraria, allowances and other 95%
emoluments provided the total amount shall 90%
not exceed the minimum salary rate for SG- 85%
1 of the salary schedule being implemented 80%
by the city/municipality where the barangay 75%
belongs and provided further that such Provincial
compensation shall not exceed those of the Governor,
lowest paid barangay officials. SG-30
9.3.4.12.6 A City/Municipal Accountant who keeps and Provincial
maintains the financial records of barangay Vice-
governments are not entitled to honoraria Governor,
from the latter since such functions are part SG-28
of their regular functions in the Office of the Sanggunian
City/Municipal Accountant. Panlalawigan
9.3.4.12.7 Monetization of Leave Credits of Barangay Member, SG-27
Officials Provincial
The monetization of the leave credits of barangay officials Government
reckoned from the services they rendered starting April 15, Department Head,
2004, shall be paid by following the rules and regulations SG-26
provided under Civil Service Commission and Department of Provincial
Budget and Management Joint Circular No. 1, s. 2004. Government
6 Assistant
!9+4B*!--; (* c* B!-=!- ((4c4* Department Head,
 -4 -* B!-=!- ((4c4*!-4*!1  SG-24
c
&
*+>c
 Chief of Hospital
L

 II, SG-25

-


 Chief of Hospital

 I, SG-24
B Special Cities 80%
(Manila and 75%
Quezon City City Mayor,
only) SG-30
100% City Mayor, City Vice
SG-30 Mayor I,
City Vice SG-26
Mayor II, Sanggunian
SG-28 Panlungsod
Sanggunian Member I, SG-25
Panlungsod City Government
Member II, Department
SG-27 Head I, SG-25
City City Government
Governmen Assistant
t Department
Department Head I, SG-23
Head III, Chief of Hospital
SG-27 II, SG-25
City Government Chief of Hospital
Assistant Department I, SG-24
Head III, SG-25 E
Division Chief, F
SG-24 Municipalities
C Highly within
Urbanized Metropolitan
Cities Manila
100% City Mayor, Municipalities
SG-30 outside Metro
City Vice Manila
Mayor II, 1st Class
SG-28 2nd Class
Sanggunian 3rd Class
Panlungsod Member 4th Class
II, SG-27 5th Class
City Government 6th Class
Department Head II, 100%
SG-26 90%
City Government 85%
Assistant 80%
Department 75%
Head II, SG-24 70%
Chief of Hospital 65%
II, SG-25 Municipal
Chief of Hospital Mayor II,
I, SG-24 SG-28
D Component Municipal
Cities Mayor I,
1st Class SG-27
2nd Class Municipal
3rd Class Vice Mayor II,
4th Class SG-26
5th Class Municipal
6th Class Vice Mayor I,
100% SG-25
95% Sangguniang
90% Bayan Member
85% II, SG-25
Municipal 42, March 3, 1993
Government Clarifying the Role of the Department of Budget and
Department Head Management in the Compensation and Classification of
II, SG-25 Local Government Positions Under R.A. No. 7160
Sangguniang Local Budget Circular No.
Bayan Member I, 53, September 1, 1993
SG-24 Guidelines on Compensation and Position Classification in
Municipal the Local Government Units
Government Local Budget Circular No.
Department Head I, 54, March 9, 1994
SG-24 Guidelines for the Initial Implementation of the Revised
Municipal Compensation and Position Classification System in the
Government Local Government
Assistant Local Budget Circular No.
Department Head 54-A, August 7, 1994
II, SG-23 Clarificatory Guidelines on the Initial Implementation of
Municipal the Revised Compensation and Position Classification
Government System for Devolved Personnel
Assistant Local Budget Circular No.
Department Head 55, March 15, 1994
I, SG-22 Guidelines on Compensation and Position Classification in
 the Local Government Units (LGUs)
4
 

c



c


 *+
Joint Commission on Local 9 -35
Government Personnel 4

Administration Circular No. Local Budget Circular No.
37, September 30, 1989 56, January 25, 1995
Index of Occupational Services, Position Titles and Salary Guidelines for the Implementation of the Revised
Grades Compensation and Position Classification System (CPCS)
Joint Commission on Local in the Local Government and Other Compensation
Government Personnel Matters
Administration Circular No. Local Budget Circular No.
39, October 2, 1990 57, May 19, 1995
Changes in the Index of Occupational Services, Position Clarificatory Guidelines on Allowances That Fall Under the
Titles and Salary Grades Issued Under Circular No. 37 Personal Services (PS) Account
Joint Commission on Local Local Budget Circular No.
Government Personnel 58, July 7, 1995
Administration Bulletin No. Compensation of Barangay Officials and Personnel
10, March 7, 1991 Local Budget Circular No.
Guidelines for the Proper Implementation of Joint 59, Series of 1996
Commission Circular No. 39 Dated October 2, 1990 Guidelines for the Implementation of the Revised Rates
Republic Act No. 7160, of Representation and Transportation Allowances and
October 10, 1991 Uniform Allowance in the Local Government Units
Local Government Code of 1991 Local Budget Circular No.
Executive Order No. 503, 59-A, December 8, 1997
January 22, 1992 Supplementary Guidelines on the Payment of
Providing for the Rules and Regulations Implementing Representation and Transportation Allowances (RATA) to
the Transfer of Personnel and Assets, Liabilities and Certain Personnel Devolved From the Department of
Records of National Government Agencies Whose Health (DOH), Department of Agriculture (DA) and
Functions are to be Devolved to the Local Government Department of Social Welfare and Development (DSWD)
Units and for Other Related Purposes Local Budget Circular No.
Civil Service Commission 60, January 25, 1996
Memorandum Circular No. Guidelines for the Implementation of the Revised Position
19, s. 1992, May 7, 1992 Classification and Compensation System (PCCS) in the
Guidelines and Standards in the Establishment of Local Government
Organizational Structures and Staffing Patterns in Local Local Budget Circular No.
Government Units 61, March 18, 1996
Administrative Order No. Revised Index of Occupational Services, Position Titles
and Salary Grades (IOS) in Local Government 72, December 5, 2000
Executive Order No. 332, Compensation of the Members of the Provincial/City
May 16, 1996 Mining Regulatory Board
Integrating the Barangay Governments Into the Revised Local Budget Circular No.
Position Classification and Compensation System in the 73, January 10, 2001
Government Guidelines on the Grant of Compensation Benefit to Local
Administrative Order No. Regulatory Boards/Quasi-Judicial Bodies and Similar
282, July 25, 1996 Bodies In Provinces/Cities/Municipalities and Barangay
Directing Strict Compliance with the Compensation Volunteer Frontline Workers
Standardization Law by Local Governments Local Budget Circular No.
Local Budget Circular No. 74, June 15, 2001
62, July 29, 1996 Authority to Grant a Maximum of Five Percent (5%)
Guidelines on the Grant of Honoraria in the Local Salary Adjustment to Personnel in the Local Government
Government Units (LGUs) Units (LGUs) Effective July 1, 2001
Local Budget Circular No. Local Budget Circular No.
63, October 22, 1996 75, July 12, 2002
Position Classification and Compensation of Barangay Guidelines on Personal Services (PS) Limitation
Officials and Personnel Local Budget Circular No.
Local Budget Circular No. 76, November 5, 2002
64, January 22, 1997 Cash Gift of Barangay Officials
Guidelines for the Full Implementation of the Revised Local Budget Circular No.
Position Classification and Compensation System (PCCS) 76-A, November 20, 2002
in the Local Government Clarifying Local Budget Circular No. 76 dated November
Local Budget Circular No. 5, 2002 on the Cash Gift of Barangay Officials
65, March 3, 1997 Local Budget Circular No.
Guidelines on the Grant of Anniversary Bonus in the 78, March 8, 2004
Local Government Guidelines on the Provision of Free Quarters to Provincial
=




c



c


 Governors and Vice-Governors
9-36 Local Budget Circular No.
4
 79, April 1, 2005
Local Budget Circular No. Guidelines for the Implementation of the Revised Rates
66, March 4, 1998 of Representation and Transportation Allowances (RATA)
Guidelines on the Payment of Compensation to Ex-Officio in Local Government Units (LGUs)
Members of the Local Sanggunian
Local Budget Circular No.
66-A, August 28, 2000
Additional Guidelines on the Payment of Compensation to
Ex-Officio Members of the Local Sanggunian
Local Budget Circular No.
67, March 23, 1998
Guidelines on the Payment of Per Diem to the Members
and Support Staff of the People͛s Law Enforcement Board
(PLEB)
Local Budget Circular No.
68, June 4, 1998
Guidelines for the Implementation of the Revised Rates
of Representation and Transportation Allowances and
Uniform Allowance in the Local Government Units
Local Budget Circular No.
69, March 21, 2000
Guidelines for the Grant of Ten Percent (10%) Salary
Adjustment to Personnel in the Local Government
Effective January 1, 2000
Local Budget Circular No.
71, October 5, 2000
Adoption of Higher Salary Schedule by Local Government
Units
Local Budget Circular No.