REPUBLIC ACT NO.

6656
.

AN ACT TO PROTECT THE SECURITY OF TENURE OF CIVIL SERVICE

OFFICERS AND EMPLOYEES IN THE IMPLEMENTATION OF
GOVERNMENT REORGANIZATION.

Section 1. It is hereby declared the policy of the State to protect the security of
tenure of civil service officers and employees in the reorganization of the various
agencies of the National Government and of local governments, state colleges and
universities expressly authorized by law, including government-owned or controlled
corporations with original charters, without sacrificing the need to promote morale,
efficiency in the civil service pursuant to Article IX, B, Section 3 of the Constitution.
.
Sec. 2. No officer or employee in the career service shall be removed except for a
valid cause and after due notice and hearing. A valid cause for removal exists when,
pursuant to a bona fide reorganization, a position has been abolished or rendered
redundant or there is a need to merge, divide, or consolidate positions in order to
meet the exigencies of the service, or other lawful causes allowed by the Civil Service
Law. The existence of any or some of the following circumstances may be considered
as evidence of bad faith in the removals made as a result of reorganization, giving
rise to a claim for reinstatement or reappointment by an aggrieved party:

(a) Where there is a significant increase in the number of positions in the new
staffing pattern of the department or agency concerned;

(b) Where an office is abolished and other performing substantially the same
functions is created;

(c) Where incumbents are replaced by those less qualified in terms of status of
appointment, performance and merit;

(d) Where there is a reclassification of offices in the department or agency

concerned and the reclassified offices perform substantially the same function as the
original offices;

(e) Where the removal violates the order of separation provided in Section 3 hereof.

Sec. 3. In the separation of personnel pursuant to reorganization, the following

order of removal shall be followed:
(a) Casual employees with less than five (5) years of government service;
(b) Casual employees with five (5) years or more of government service;
(c) Employees holding temporary appointments;

(d) Employees holding permanent appointments: Provided, That those in the same
category as enumerated above, who are least qualified in terms of performance and
merit shall be laid first, length of service notwithstanding.

Sec. 4. Officers and employees holding permanent appointments shall be given

preference for appointment to the new positions in the approved staffing pattern
comparable to their former position or in case there are not enough comparable
positions, to positions next lower in rank.

No new employees shall be taken in until all permanent officers and employees have
been appointed, including temporary and casual employees who possess the
necessary qualification requirements, among which is the appropriate civil service
eligibility, for permanent appointment to positions in the approved staffing pattern,
in case there are still positions to be filled, unless such positions are policy-
determining, primarily confidential or highly technical in nature.

Sec. 5. Officers and employees holding permanent appointments shall be given

preference for appointment in other agencies if they meet the qualification
requirements of the positions therein.

Sec. 6. In order that the best qualified and most deserving persons shall be
appointed in any reorganization, there shall be created a Placement Committee in
each appointments shall be given preference for appointment in the judicious
selection and placement of personnel. The Committee shall consist of two (2)
members appointed by the head of the department or agency, a representative of the
appointing authority, and two (2) members duly elected by the employees holding
positions in the first and second levels of the career service: Provided, That if there
is a registered employee association with a majority of the employees as members,
that employee association shall also have a representative in the Committee:
Provided, further That immediately upon approval of the staffing pattern of the
department or agency concerned, such staffing pattern shall be made known to all
officers and employees of the agency who shall be invited to apply for any of the
positions authorized therein. Said application shall be considered by the Committee
in the placement and selection of personnel.

Sec. 7. A list of the personnel appointed to the authorized positions in the approved
staffing pattern shall be made known to all the officers and employees of the
department or agency. Any of such officers and employees aggrieved by the
appointments made may file an appeal with the appointing authority who shall
make a decision within thirty (30) days from the filling thereof.

Sec. 8. An officer or employee who is still not satisfied with the decision of the
appointing authority may further appeal within ten (10) days from the receipt
thereof to the Civil Services Commission which shall render a decision thereon
within thirty (30) days and whose decision shall be final and executory.

Sec. 9. All officers and employees who are found by the Civil Service Commission to
have been separated in violation of the provisions of this Act, shall be ordered
reinstated or reappointed as the case may be without loss of seniority and shall be
entitled to full pay for the period of separation. Unless also separated for cause, all
officers and employees, who have been separated pursuant to reorganization shall, if
entitled thereto, be paid the appropriate separation pay and retirement and other
benefits under existing laws within ninety (90) days from the date of the effectivity
of their separation or from the date of the receipt of the resolution of their appeals
as the case may be: Provided, That application for clearance has been filed and no
action thereon has been made by the corresponding department or agency. Those
who are not entitled to said benefits shall be paid a separation gratuity in the
amount equivalent to one (1) month salary for every year of service. Such separation
pay and retirement benefits shall have priority of payment out of the savings of the
department or agency concerned.

Sec. 10. All heads of department, commissions, bureaus, agencies or offices who
after the effectivity of this Act willfully violate any provision thereof, including
failure to abide by the rules promulgated by the Civil Service Commission or to
implement a Civil Service Commission reinstatement order, shall upon conviction be
punished by a fine not, exceeding ten thousand pesos (P10,000.00) or by
imprisonment of not less than three(3) nor more than five (5) years or both such fine
and imprisonment in the discretion of the Court, and suffer permanent
disqualification to hold public office.chan robles virtual law library

Sec. 11. The executive branch of the government shall implement reorganization
schemes within a specified period of time authorized by law.

In the case of the 1987 reorganization of the executive branch, all departments and
agencies which are authorized by executive orders promulgated by the President to
reorganize shall have ninety (90) days from the approval of this Act within which to
implement their respective reorganization plans in accordance with the provisions of
this Act.

Sec. 12. The Civil Service Commission shall promulgate the necessary rules and
regulations to implement the provisions of this Act.

Sec. 13. All laws, rules and regulations or parts thereof, inconsistent with the
provisions of this Act are hereby repealed or modified accordingly. The rights and
benefits under this Act shall be retroactive as of June 30, 1987.

Sec. 14. If any part, section or provisions of this Act shall be held invalid or
unconstitutional, no other part, section or provision thereof shall be affected
thereby. chan robles virtual law library
Sec. 15. This Act shall take effect fifteen (15) days from the date of its publication
ion at least two (2) newspapers of general circulation.

Metropolitan Waterworks and Sewerage System

Re: Reorganization

x----------------------------------------------------------------------x

RESOLUTION No. 97-2079

This refer to the issue raised by the Metropolitan Waterworks and Sewerage
system (MWSS) on the preferential consideration for reappointment of existing
personnel to higher position in the reorganized agency. Specifically, the question
to be resolved is whether or not permanent employees of the said government
corporation should be accorded preferential right to higher positions over and
above other categories of MWSS employees, such as the casuals.

Records show that the CSC-national Capital Region (CSC-NCR) was designated
by this Commission to rule and resolve reorganization issues which may crop up
in the course of MWSS reorganization. The MWSS Casual Employees, however,
requested this Commission to finally rule on said issue. Hence, this Resolution.

A reading of the three (3) opinions rendered by the CSC-National Capital Region
in its letters dated December 17, 1996, February 4 and 13, 1997 made a
consensus finding that the Republic Act No. 6656 and its Implementing Rules,
otherwise known as An Act to Protect the Security of Tenure of Civil Service
Officers and Employees in the Implementation of Government Reorganization,
were substantially adhered to and observed by MWSS.

The December 17, 1996 Opinion reads as follows:

" . . . all officers and employees holding permanent appointments are preferred
and considered for reappointment first over all other employees as mentioned
above (referring to Section 7 of the Implementing Rules of RA 6656). Only upon
placement of all permanent employees shall employees in the order of
preference after the first priority shall be considered for placement."

Subsequently, two other Opinions of CSC-NCR dated February 4, and 13, 1997
expressed similar finding and ruling.

The records further show that the Opinion by the Research and Development
Officer (RDO) of this Commission on December 19, 1996 pursuant to Section 4
of RA 6656 is complemented, not contradicted by the above December 17, 1996
opinion of the National Capital Region. Cited therein by the RDO is the provision
of Section 4 of RA 6656 while the CSC-NCR quoted Section 7 of the
Implementing Rules of RA 6656. Careful examination of these two (2) provisions
reveals that Section 4 of the law and Section 7 of the Implementing Rules are
substantially the same except that the latter is more detailed in its enumeration of
those who will be given preference for appointment.

The two (2) provisions are hereunder quoted:

"Section 4 of RA 6656 - "Officers and employees holding permanent

appointments shall be given preference for appointment to the new positions in
the approved staffing pattern comparable to their former positions or in case
there are not enough comparable positions, to positions next lower in rank."

"No new employees shall be taken in until all permanent officers and employees
shall have been appointed, including temporary and casual employees who
possess the necessary qualification requirements, among which is the
appropriate civil service eligibility, for permanent appointment to positions in the
approved staffing pattern, in case there are still positions to be filled, unless such
positions are policy-determining, primarily confidential or highly technical in
nature."
Section 7 of the Implementing Rules - "Preference for Appointment-Subject to
the preceding section, preference for appointment to the new positions in the
approved staffing pattern shall be in the following order:

"1. Officers and employees holding permanent appointments to positions

comparable to their former positions or in case there are not enough comparable
positions, to positions next lower in rank;

"2. Temporary employees who possess the necessary qualification requirements

and appropriate civil service eligibility for permanent appointment;

"3. Casual employees who posses the necessary qualification requirements and
appropriate civil service eligibility for permanent appointment;

"4. Officers and employees holding permanent appointments in other agencies

who meet the qualification requirements of the positions;

"5. New employee who posses the necessary qualifications and appropriate civil
service eligibility for permanent appointment:

"Provided however, those with pending administrative cases who meet the
qualification requirements and will be retained shall not be placed in or appointed
to positions higher than the positions held by them at the start of the
reorganization, and the administrative cases against them shall be pursued until
decided."

Clearly, these provisions on priority in placement of existing personnel

categorized according to employment status and qualifications are obviously
designed to cope with and resolve problems that may arise as a result of
reorganization, partial or total. Pointedly, the purpose of said preference is to
effect fair, and just equitable placement of present employees. Hence, one such
problem situation contemplated by RA 6656 and its Implementing Rules is a
reorganized agency where less number of plantilla items in the new staffing
pattern may result in some permanent employees losing out in the course of
reorganization.

Thus, the preferential right accorded to permanent employees under these

provisions is a statutory guarantee that they (permanent employees) shall have
the same employment status before the reorganization or at the very least, they
should be placed in the next lower positions without reduction in salary,
depending on the availability of positions.

Meanwhile, representations of the parties concerned revealed that there are

more position in the approved staffing pattern of MWSS that the number of
incumbents or existing personnel who are to placed. This is due to a number of
employees who earlier availed themselves of the early retirement program. For
this reason, higher positions are available to be filled-up.

It must be stressed that in reorganization, positions are deemed vacant and

therefore previous incumbents cannot to be reappointed thereto as a matter of
right. Moreover, there is no provision in RA No. 6656 and its Implementing Rules
about any preferential right of permanent employees to be appointed to higher
positions. In other words, the law never meant to give existing employees,
preferential right for promotion, even if they do not meet the qualification
requirements of the positions, over and above those who are qualified. To give
such a preferential right, would be contrary to and could wreck havoc on the
principle of merit and fitness in selection as enunciated in the Constitution and
the Civil Service Law and Rules.

The application of this rules is seen more clearly in the case of Medinilla vs. Civil
Service Commission et al. (194 SCRA 278) where the Supreme court held:

"Undoubtedly, old employees should be considered first. But it does not

necessarily follows that they should then be automatically appointed.
The preference given to permanent employees assumes that employees working
in a Department for longer periods have gained not only superior skills but also
greater dedication to the public service. This is not always true and the law,
moreover, does not preclude the infusion of new blood, younger dynamism, or
necessary talents into the government service. If after considering all the current
employees, the Department of Secretary cannot find among them the person he
needs to revive a moribund office or to upgrade second rate performance, there
is nothing in the Civil Service Law to prevent him from reaching out to other
departments or to the private sector provided all his acts are bona fide for the
best interest of the public service and the person chosen has the needed
qualifications. In the present case, there is no indication that the petitioner was
chosen for any reason except to bring in a talented person with the necessary
eligibilities and qualifications for important assignments in the Department
(underscoring supplied) x x x"

In this case, the contested position was created in the course of the
reorganization. The position appears to be a new one. The applicability,
therefore, of the next-in-rank rule does not come in early. Besides as earlier
stated, said rule is not absolute. There are valid exceptions.

Granting for the sake of argument that the case involves a promotional
appointment, the next-in-rank rule must give way to the exigencies of the public
service. The intent of the Civil Service Law is not merely to bestow upon
permanent employees the advantage arising from their long employment but
most especially, it is to foster a more efficient public service. Any other factor
must, therefore, yield to the demand for an effective government, which
necessarily entails the appointment of competent, qualified and proficient
personnel."

Evidently, from all the foregoing, the preferential right of permanent employees in
reorganized agency or department as enunciated in RA 6656 is circumscribed to
reappointment to the same or equivalent or comparable positions, vis-à-vis those
held prior to reorganization. They may even be placed in the next lower positions
if there are not enough such positions in the new plantilla of personnel. However,
these group of existing personnel must be fairly ranked and evaluated.

Simply stated, while the law protects permanent employees from losing their
employment in the guise of reorganization, it does not ensure that they will be
reappointed to higher positions as a matter of course irrespective of whether they
meet the qualifications therefor.

Clearly, the order of preference contained in RA 6656 is both a procedural and

substantive mechanism to ensure that qualified permanent employees will not
lose their job in the course of reorganization if there are enough positions to
accommodate them. Apropos, in the case of the municipality of Paranaque (CSC
Resolution No. 97-0197), the Commission has categorically ruled:

"It is quite clear from the aforequoted provision [Sec. 4 (1) of RA 6656] that
during a reorganization, employees under permanent status enjoy preference for
appointment to comparable positions in the new staffing pattern. However, they
may also be appointed to lower positions if there are not enough comparable
positions. The said employees under permanent status do not have a vested
right to be appointed to exactly the same positions they held prior to the
reorganization." (Underscoring supplied)

As permanent employees do not have a vested right to be reappointed to the

same positions they held prior to the reorganization, with more reason that they
cannot claim better right for reappointment to higher positions. The filling up of
the latter items is left to the sound discretion of the proper appointing authority.
His or her base of selection may include all categories of existing personnel,
including those from other agencies, or from private sector, provided the
appointees fully meet the required qualifications and none of the disqualification.

WHEREFORE, this Commission hereby rules that the preferential consideration

during reorganization may be invoked by permanent employees for
reappointment to positions which are equivalent to or comparable with the
positions held prior to reorganization. In case higher positions are to be filled up
by promotion, the permanent employees may be appointed thereto, if they met
the qualifications and none of the disqualification for promotion pursuant to the
Administrative Code of 1987 and the Omnibus Rules implementing the same.

Quezon City, March 11, 1997

 (Signed)
THELMA P. GAMINDE
Commissioner

(Signed)
CORAZON ALMA G. DE LEON
Chairman

(Signed)
JOSE F. ERESTAIN, JR.
Commissioner

Attested by:

(Signed)

CARMENCITA GISELLE E.B. BRINGAS

Board Secretary VI

REPUBLIC ACT NO. 6758

.

AN ACT PRESCRIBING A REVISED COMPENSATION AND POSITION

CLASSIFICATION SYSTEM IN THE GOVERNMENT AND FOR OTHER
PURPOSES.

Section 1. Title. — This Act shall be known as the "Compensation and Position
Classification Act of 1989."
Sec. 2. Statement of Policy. — It is hereby declared the policy of the State to provide
equal pay for substantially equal work and to base differences in pay upon substantive
differences in duties and responsibilities, and qualification requirements of the positions.
In determining rates of pay, due regard shall be given to, among others, prevailing rates in
the private sector for comparable work. For this purpose, the Department of Budget and
Managements (DBM) is hereby directed to establish and administer a unified
Compensation and Position Classification System, hereinafter referred to as the System,
as provided for in Presidential Decree No. 985, as amended, that shall be applied for all
government entities, as mandated by the Constitution.
Sec. 3. General Provisions. — The following principles shall govern the Compensation
and Position Classification System of the Government:
(a) All government personnel shall be paid just and equitable wages; and while pay
distinctions must necessarily exist in keeping with work distinctions, the ratio of
compensation for those occupying higher ranks to those at lower ranks should be
maintained at equitable levels, giving due consideration to higher percentage of increases
to lower level positions and lower percentage increases to higher level positions;
(b) 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;
(c) The total compensation provided for government personnel must be maintained at a
reasonable level in proportion to the national budget;
(d) A review of government compensation rates, taking into account possible erosion in
purchasing power due to inflation and other factors, shall be conducted periodically.
Sec. 4. Coverage. — The Compensation and Position Classification System herein
provided shall apply to all positions, appointive or elective, on full or part-time basis,
now existing or hereafter created in the government, including government-owned or
controlled corporations and government financial institutions.
The term "government" refers to the Executive, the Legislative and the Judicial Branches
and the Constitutional Commissions and shall include all, but shall not be limited to,
departments, bureaus, offices, boards, commissions, courts, tribunals, councils,
authorities, administrations, centers, institutes, state colleges and universities, local
government units, and the armed forces. The term "government-owned or controlled
corporations and financial institutions" shall include all corporations and financial
institutions owned or controlled by the National Government, whether such corporations
and financial institutions perform governmental or proprietary functions.
Sec. 5. Position Classification System. — The Position Classification System shall
consist of classes of positions grouped into four main categories, namely: professional
supervisory, professional non-supervisory, sub-professional supervisory, and sub-
professional non-supervisory, and the rules and regulations for its implementation.
Categorization of these classes of positions shall be guided by the following
considerations:
(a) Professional Supervisory Category. — This category includes responsible positions of
a managerial character involving the exercise of management functions such as planning,
organizing, directing, coordinating, controlling and overseeing within delegated authority
the activities of an organization, a unit thereof or of a group, requiring some degree of
professional, technical or scientific knowledge and experience, application of managerial
or supervisory skills required to carry out their basic duties and responsibilities involving
functional guidance and control, leadership, as well as line supervision. These positions
require intensive and thorough knowledge of a specialized field usually acquired from
completion of a bachelor's degree or higher degree courses.
The positions in this category are assigned Salary Grade 9 to Salary Grade 33.
(b) Professional Non-Supervisory Category. — This category includes positions
performing task which usually require the exercise of a particular profession or
application of knowledge acquired through formal training in a particular field or just 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; 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 (4) years of college studies.
The positions in this category are assigned Salary Grade 8 to Salary Grade 30.
(c) Sub-Professional Supervisory Category. — This category includes positions
performing supervisory functions over a group of employees engaged in responsible
work along technical, manual or clerical lines of work 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 (2) years of college education.
The positions in this category are assigned Salary Grade 4 to Salary Grade 18.
(d) Sub-Professional Non-Supervisory Category. — This category includes positions
involves in structured work in support of office or fiscal operations or those engaged in
crafts, trades or manual work. These positions usually require skills acquired through
training and experience of completion of elementary education, secondary or vocational
education or completion of up to two (2) years of college education.
The positions in this category are assigned Salary Grade 1 to Salary Grade 10.
Sec. 6. Index of Occupational Services, Position Titles and Salary Grades of the
Compensation and Position Classification System. — All positions in the government
covered under Section 4 hereof shall be allocated to their proper position titles and salary
grades in accordance with the Index of Occupational Services, Position Titles and Salary
Grades of the Compensation and Position Classification System which shall be prepared
by the DBM.
Sec. 7. Salary Schedule. — The Department of Budget and Management is hereby
directed to implement the Salary Schedule prescribed below:
Salary Schedule
Grade 1st 2nd 3rd 4th 5th 6th 7th 8th
1 — 2,000 2,020 2,040 2,061 2,081 2,102 2,123 2,144
2 — 2,073 2,094 2,115 2,136 2,158 2,179 2,201 2,223
3 — 2,156 2,178 2,200 2,222 2,244 2,266 2,289 2,312
4 — 2,250 2,272 2,295 2,318 2,341 2,364 2,388 2,412
5 — 2,355 2,378 2,402 2,426 2,450 2,475 2,500 2,525
6 — 2,473 2,497 2,522 2,547 2,573 2,599 2,625 2,651
7 — 2,604chan2,630chan 2,657chan 2,683chan 2,710chan-2,737chan- 2,765chan- 2,793
8 — 2,752chan2,779chan2,807chan- 2,835chan- 2,864chan-
2,892chan- 2,921chan- 2,950
9 —
2,917chan2,946chan2,976chan- 3,005chan- 3,036chan- 3,066chan- 3,097chan- 3,127
10 — 3,102ch 3,133chan3,164chan- 3,196chan- 3,228chan- 3,260chan-3,293chan- 3,325
11 — 3,309ch3,342chan-3,375chan- 3,409chan- 3,443chan- 3,477chan-3,512chan- 3,547
12 — 3,540cha3,576chan3,611chan-3,647chan- 3,684chan- 3,721chan-3,758chan- 3,796
13 — 3,800ch 3,838chan3,876chan 3,915chan- 3,954chan- 3,994chan-4,033chan-4,074
14 — 4,091ch 4,132chan-4,173chan4,215chan- 4,257chan- 4,300chan- 4,343chan-4,386
15 — 4,418cha4,463chan-4,507chan-4,552chan-
4,598chan- 4,644chan- 4,690chan- 4,737
16 — 4,786cha4,834chan-4,883chan-4,932chan-4,981chan- 5,031chan- 5,081chan-5,132
17 — 5,201cha5,253chan-
5,306chan- 5,359chan- 5,413chan- 5,467chan- 5,521chan- 5,577
18 — 5,670cha5,726chan-
5,784chan- 5,841chan- 5,900chan- 5,959chan- 6,018chan- 6,079
19 — 6,199cha6,261chan-6,323chan-
6,386chan- 6,450chan- 6,515chan- 6,580chan- 6,646
20 — 6,798cha6,866chan-6,935chan-
7,004chan- 7,074chan- 7,145chan- 7,216chan- 7,288
21 — 7,478ch 7,553chan-7,628chan-
7,704chan- 7,781chan- 7,859chan- 7,938chan- 7,017
22 — 8,250ch8,333chan-
8,416chan- 8,500chan- 8,585chan- 8,671chan- 8,758chan- 8,845
23 — 9,131c 9,222chan- 9,314chan-
9,407chan- 9,501chan- 9,596chan- 9,692chan- 9,789
24 —10,135c10,236cha10,339chan10,442chan10,546cha10,652chan-10,758chan-10,866
25 —11,385c11,499cha11,614chan-11,730cha11,847cha11,966chan-12,085chan-12,206
26 —12,650c12,777cha12,904chan-13,033chan13,164ch13,295chan-13,428chan-13,563
27 —13,915c14,054ch 14,195chan-14,337chan-14,480ch14,625chan-14,771chan-14,919
28 —15,180c15,332cha15,485chan-15,640chan-15,796ch15,954chan-
16,114chan- 16,275
29 —17,075c17,246cha17,418chan-17,592chan-17,768ch17,946chan-18,125chan-
18,307
30 —18,975
31 —19,550
32 —22,000
33 —25,000
The above Salary Schedule shall be used for positions that are paid on the annual or
monthly rate basis. All salaries in the Salary Schedule expressed as monthly rates in
pesos shall represent full compensation for full-time employment, regardless of where the
work is performed. Salaries for services rendered on a part-time basis shall be adjusted
proportionately.
The Department of Budget and Management shall update the above Schedule whenever
there are across-the-board salary adjustments as may be provided by law.
The daily wage rate shall be determined by dividing the monthly salary rate by twenty-
two (22) working days per month.
SECTION 8.Salaries of Constitutional Officials and their Equivalent. — Pursuant to
Section 17, Article XVIII of the Constitution, the salary of the following officials shall be
in accordance with the Salary Grades indicated hereunder:

Salary Grades
President of the Philippines 33
Vice-President of the Philippines32
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 Justices of the Supreme Court 31
Chairman of a Constitutional Commission under Article IX, 1987 Constitution 31
Member of a Constitutional Commission under Article IX, 1987 Constitution 30
The Department of Budget and Management is hereby authorized to determine the
officials who are of equivalent rank to the foregoing Officials, where applicable, and may
be assigned the same Salary Grades based on the following guidelines:
GRADE 33 — This Grade is assigned to the President of the Republic of the Philippines
as the highest position in the government. No other position in the government service is
considered to be of equivalent rank.
GRADE 32 — This Grade is limited to the Vice-President of the Republic of the
Philippines and those positions which head the Legislative and Judicial Branches of the
government, namely: the Senate President, Speaker of the House of Representatives and
Chief Justice of the Supreme Court. No other positions in the government service are
considered to be of equivalent rank.
GRADE 31 — This Grade is assigned to Senators and Members of the House of
Representatives and those with equivalent rank as follows: the Executive Secretary,
Department Secretary, Presidential Spokesman, Ombudsman, Press Secretary,
Presidential Assistant with Cabinet Rank, Presidential Adviser, National Economic and
Development Authority Director General, Court of Appeals Presiding Justice,
Sandiganbayan Presiding Justice, Secretary of the Senate, Secretary of the House of
Representatives, and President of the University of the Philippines.
An entity with a broad functional scope of operations and wide area of coverage ranging
from top level policy formulation to the provision of technical and administrative support
to the units under it, with functions comparable to the aforesaid positions in the preceding
paragraph, can be considered organizationally equivalent to a Department, and its head to
that of a Department Secretary.
GRADE 30 — Positions included are those of Department Undersecretary, Cabinet
Undersecretary, Presidential Assistant, Solicitor General, Government Corporate
Counsel, Court Administrator of the Supreme Court, Chief of Staff of the Office of the
Vice-President, National Economic and Development Authority Deputy Director General,
Presidential Management Staff Executive Director, Deputy Ombudsman, Associate
Justices of the Court of Appeals, Associate Justices of the Sandiganbayan, Special
Prosecutor, University of the Philippines Executive Vice-President, Mindanao State
University President, Polytechnic University of the Philippines President of and President
of other state universities and colleges of the same class.
Heads of councils, commissions, boards and similar entities whose operations cut across
offices or departments or are serving a sizeable portion of the general public and whose
coverage is nationwide or whose functions are comparable to the aforecited positions in
the preceding paragraph, may be placed at this level.
The equivalent rank of positions not mentioned herein or those that may be created
hereafter shall be determined based on these guidelines.
The Provisions of this Act as far as they upgrade the compensation of Constitutional
Officials and their equivalent under this section shall, however, take effect only in
accordance with the Constitution: Provided, That with respect to the President and Vice-
President of the Republic of the Philippines, the President of the Senate, the Speaker of
the House of Representatives, the Senators, and the Members of the House of
Representatives, no increase in salary shall take effect even beyond 1992, until this Act is
amended: Provided, further, That the implementation of this Act with respect to Assistant
Secretaries and Undersecretaries shall be deferred for one (1) year from the effectivity of
this Act and for Secretaries, until July 1, 1992: Provided, finally, That in the case of
Assistant Secretaries, Undersecretaries and Secretaries, the salary rates authorized herein
shall be used in the computation of the retirement benefits for those who retire under the
existing retirement laws within the aforesaid period.
Sec. 9. Salary Grade Assignments for Other Positions. — For positions below the
Officials mentioned under Section 8 hereof and their equivalent, whether in the National
Government, local government units, government-owned or controlled corporations or
financial institutions, the Department of Budget and Management is hereby directed to
prepare the Index of Occupational Services to be guided by the Benchmark Position
Schedule prescribed hereunder and the following factors: (1) the education and
experience required to perform the duties and responsibilities of the positions; (2) the
nature and complexity of the work to be performed; (3) the kind of supervision received;
(4) mental and/or physical strain required in the completion of the work; (5) nature and
extent of internal and external relationships; (6) kind of supervision exercised; (7)
decision-making responsibility; (8) responsibility for accuracy of records and reports; (9)
accountability for funds, properties and equipment; and (10) hardship, hazard and
personal risk involved in the job.
Benchmark Position Schedule
Position Title chanrobleslawfirmSalary Grade
Laborer I chanroblb eslawfirm 1
Messengerchanrobleslhanrobleslawfirm2
Clerk Ichanrobrm chanrobleslawfirm3
Driver Ic bleslawfirmchanrobleslawfirm 3
Stenographer Ichanrobleslawfirmchanr 4
Mechanic Ichanrobleslawfirmc slawfirm4
Carpenter IIchanrobleslhanrobleslawfir 5
Electrician IIchanrolawfirmchaneslawfi 6
Secretary Ichanrobleslawnrobleslawfirm7
Bookkeeperchanwfirmchanrobleslawfir 8
Administrative Assistantchanrobleslaw8
Education Research Assistant Ichalewfi9
Cashier Ichanrobleslawfirmch slawfirm 10
Nurse Ichanrobleslawfirmrobleslawfirm 10
Teacher Ichanrobl mchanrobleslawfirm 10
Agrarian Reform Program Technologistch10
Budget Officer I chanrobleslawfirleslawf11
Chemist Ichanrobleslawrobleslawfirm 11
Agriculturist Icslawfirmchanrobleslawfir11
Social Welfare Officer Ichanrobleslawfir 11
Engineer Ichanrobleslawfirmchanroblesl12
Veterinarian Ichanrobleslawfi leslawfirm13
Legal Officer Ichanrobleslawfirmchanrob14
Administrative Officer IIcha rmchanrobl15
Dentist IIchanrobleslawhanrobleslawfirm 16
Postmaster IVceslawfirmcha obleslawfirm 17
Forester IIIchanroblesl chanrobleslawfirm 18
Associate Professor Ichanrobleslawfirmch 19
Rural Health Physicianchanroblehanroble20
In no case shall the salary of the chairman, president, general manager or administrator,
and the board of directors of government-owned or controlled corporations and financial
institutions exceed Salary Grade 30: Provided, That the President may, in truly
exceptional cases, approve higher compensation for the aforesaid officials.
Sec. 10. Local Government Units (LGUs). — The rates of pay in LGUs shall be
determined on the basis of the class and financial capability of each LGU: Provided, That
such rates of pay shall not exceed the following percentages of the rates in the salary
schedule prescribed under Section 7 hereof:
chanrobleslawfirmchanrobleslawfirmForchanrobleslawfirmchanrobleslawFor
chanrobleslawfirmchanrobleslawfirmProvinces/CitieschanrobleslawfirmMunicipalities
Special Citieschanrobleslawfirmchanrobleslawfirmchanrobleslawfirmcha 100%
1st Classchanrobleslawfirmchanrobl100% chanrobleslawfirmchanrobleslawfi90%
2nd Classchanrobleslawfirmchanrobl95%chanrobleslawfirmchanrobleslawfirm85%
3rd Classchanrobleslawfirmchanrobl90% chanrobleslawfirmchanrobleslawfirm80%
4th Classchanrobleslawfirmchanrobl85%chanrobleslawfirmchanrobleslawfirm 75%
5th Classchanrobleslawfirmchanrobl80%chanrobleslawfirmchanrobleslawfirm70%
6th Classchanrobleslawfirmchanrobl75%chanrobleslawfirmchanrobleslawfirm 65%
Sec. 11.Military and Police Personnel. — The base pay of uniformed personnel of the
Armed Forces of the Philippines and the Integrated National Police shall be as prescribed
in the salary schedule for these personnel in R.A. No. 6638 and R.A. No. 6648. The
longevity pay of these personnel shall be as prescribed under R.A. No. 6638, and R.A.
No. 1134 as amended by R.A. No. 3725 and R.A. No. 6648: Provided, however, That the
longevity pay of uniformed personnel of the Integrated National Police shall include
those services rendered as uniformed members of the police, jail and fire departments of
the local government units prior to the police integration.
All existing types of allowances authorized for uniformed personnel of the Armed Forces
of the Philippines and Integrated National Police such as cost of living allowance,
longevity pay, quarters allowance, subsistence allowance, clothing allowance, hazard pay
and other allowances shall continue to be authorized.
Sec. 12. Consolidation of Allowances and Compensation. — All allowances, except for
representation and transportation allowances; clothing and laundry allowances;
subsistence allowance of marine officers and crew on board government vessels and
hospital personnel; hazard pay; allowances of foreign service personnel stationed abroad;
and such other additional compensation not otherwise specified herein as may be
determined by the DBM, shall be deemed included in the standardized salary rates herein
prescribed. Such other additional compensation, whether in cash or in kind, being
received by incumbents only as of July 1, 1989 not integrated into the standardized salary
rates shall continue to be authorized.
Existing additional compensation of any national government official or employee paid
from local funds of a local government unit shall be absorbed into the basic salary of said
official or employee and shall be paid by the National Government.
Sec. 13. Pay Adjustments. — Paragraphs (b) and (c), Section 15 of Presidential Decree
No. 985 are hereby amended to read as follows:
"(b) Pay Reduction — If an employee is moved from a higher to a lower class, he shall
not suffer a reduction in salary: Provided, That such movement is not the result of a
disciplinary action or voluntary demotion.
"(c) Step Increments — Effective January 1, 1990 step increments shall be granted based
on merit and/or length of service in accordance with rules and regulations that will be
promulgated jointly by the DBM and the Civil Service Commission."
Sec. 14. Administration of Compensation and Position Classification System. —
Subparagraph (a), Section 17 of Presidential Decree No. 985 is hereby amended to read
as follows:
"(a) Administer the compensation and position classification system established herein
and revise it as necessary."
Sec. 15. Reference to Offices and Positions. — All references to the "Commissioner of
the Budget," "Budget Commission" or "Commission" and "Office of Compensation and
Position Classification" or "OCPC" in Presidential Decree No. 985 and Presidential
Decree No. 1597 shall read to mean the Secretary of Budget and Management, the
Department of Budget and Management or DBM, and the Compensation and Position
Classification Bureau or CPCB, respectively.
Sec. 16. Repeal of Special Salary Laws and Regulations. — All laws, decrees, executive
orders, corporate charters, and other issuances or parts thereof, that exempt agencies from
the coverage of the System, or that authorize and fix position classification, salaries, pay
rates or allowances of specified positions, or groups of officials and employees or of
agencies, which are inconsistent with the System, including the proviso under Section 2,
and Section 16 of Presidential Decree No. 985 are hereby repealed.
Sec. 17. Salaries of Incumbents. — Incumbents of positions presently receiving salaries
and additional compensation/fringe benefits including those absorbed from local
government units and other emoluments, the aggregate of which exceeds the standardized
salary rate as herein prescribed, shall continue to receive such excess compensation,
which shall be referred to as transition allowance. The transition allowance shall be
reduced by the amount of salary adjustment that the incumbent shall receive in the
future.
The transition allowance referred to herein shall be treated as part of the basic salary for
purposes of computing retirement pay, year-end bonus and other similar benefits.
As basis for computation of the first across-the-board salary adjustment of incumbents
with transition allowance, no incumbent who is receiving compensation exceeding the
standardized salary rate at the time of the effectivity of this Act, shall be assigned a salary
lower than ninety percent (90%) of his present compensation or the standardized salary
rate, whichever is higher. Subsequent increases shall be based on the resultant adjusted
salary.
Sec. 18. Additional Compensation of Commission on Audit Personnel and of Other
Agencies. — In order to preserve the independence and integrity of the Commission on
Audit (COA), its officials and employees are prohibited from receiving salaries,
honoraria, bonuses, allowances or other emoluments from any government entity, local
government unit, and government-owned and controlled corporations, and government
financial institution, except those compensation paid directly be the COA out of its
appropriations and contributions.
Government entities, including government-owned or controlled corporations including
financial institutions and local government units are hereby prohibited from assessing or
billing other government entities, government-owned or controlled corporations
including financial institutions or local government units for services rendered by its
officials and employees as part of their regular functions for purposes of paying
additional compensation to said officials and employees.
Sec. 19. Funding Source. — The funding sources for the amounts necessary to
implement this Act shall be as follows:
(a) For national government entities, the amount shall be charged against the
appropriations set aside for the purpose in the 1989 General Appropriations Act and from
savings generated from the different departments, bureaus, offices and agencies.
Thereafter, such amounts as are needed shall be included in the annual General
Appropriations Act.
(b) For local government units, the amount shall be charged against their respective
funds. Local government units which do not have adequate or sufficient funds shall only
partially implement the established rates as may be approved by the Joint Commission
under Section 3 of Presidential Decree No. 1136: Provided, That any partial
implementation shall be uniform and proportionate for all positions in each local
government unit: Provided, further, That savings from National Assistance to Local
Government Units (NALGU) funds may be used for this purpose.
(c) For government corporations, the amount shall come from their respective corporate
funds.
Sec. 20. Separability Clause. — If for any reason any section or provision of this Act is
declared to be unconstitutional or invalid, the other sections or provisions thereof which
are not affected thereby shall continue to be in full force and effect.
Sec. 21. Applicability of Presidential Decree No. 985 as Amended by Presidential
Decree No. 1597. — All provisions of Presidential Decree No. 985, as amended by
Presidential Decree No. 1597, which are not inconsistent with this Act and are not
expressly modified, revoked or repealed in this Act shall continue to be in full force and
effect.
Sec. 22. Repealing Clause. — all laws, decrees, orders, rules or regulations or parts
thereof inconsistent with the provisions of this Act are hereby repealed, amended, or
modified accordingly.
Sec. 23. Effectivity. — This Act shall take effect July 1, 1989. The DBM shall, within
sixty (60) days after its approval, allocate all positions in their appropriate position titles
and salary grades and prepare and issue the necessary guidelines to implement the same.
Approved: August 21, 1989