MALACAÑAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 40

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

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

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

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

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

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

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

SECTION 1. Coverage and Exclusion.

(a) Civilian Personnel – The compensation adjustments due to the implementation of the third tranche of the modified Salary Schedule shall cover all positions for civilian personnel in the Executive, Legislative, and Judicial Branches, the Constitutional Commissions/Offices, State Universities and Colleges, GOCCs, GFIs, and LGUs, whether regular, casual, or contractual in nature, appointive or elective, on full-time or part-time basis, now existing or hereafter created.

(b) Military and Uniformed Personnel – The compensation adjustments due to the implementation of the third tranche of the modified Base Pay Schedule shall cover the military personnel under the Department of National Defense (DND) and uniformed personnel under the Department of the Interior and Local Government (DILG), Philippine Coast Guard (PCG), and National Mapping and Resource Information Authority (NAMRIA).

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

(i) Individuals and groups of people whose services are engaged through job orders, contracts of service, or others similarly situated; and

(ii) Civilian personnel in government entities which are exempted from RA No. 6758 and are authorized by law to adopt and are actually implementing their own compensation and position classification systems approved by the Office of the President.

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

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

SECTION 4. Implementation of the Third Tranche Monthly Salary Schedule for LGU Personnel. The implementation of the third tranche of the modified Salary Schedule for LGU personnel shall be determined by the sanggunian concerned based on the LGU income class and financial capability: Provided, That such salary rates shall not exceed the following applicable percentages of the rates in Annex “A,” pursuant to item (7)(a) of Joint Resolution No. 4: Provided, Further, That the resulting Personal Services (PS) cost shall not exceed the PS limitation in LGU budgets, as provided under Sections 325(a) and 331(b) of RA No. 7160: Provided, Finally, That there shall be no diminution in the basic salaries of incumbents for purposes of complying with said PS limitation.

Percentages of Salary Rates in Annex “A”

For Provinces/Cities

For Municipalities

Special Cities

100%

1st Class

100%

90%

2nd Class

95%

85%

3rd Class

90%

80%

4th Class

85%

75%

5th Class

80%

70%

6th Class
75%

65%

For this purpose, the DBM shall issue the Third Tranche Monthly Salary Schedule for Local Government Personnel for each LGU income class to take effect not earlier than 1 January 2012.

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

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

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

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

(c) For LGUs, the amounts shall be charged against their respective local government funds.

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

(a) GOCCs and GFIs which do not have adequate or sufficient funds shall implement salary schedules which shall be at uniform percentages of the rates in Annex “A.”

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

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

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

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

SECTION 11. Effectivity. This Executive Order shall take effect immediately.

DONE in the City of Manila this 29th day of April, in the year of our Lord, Two Thousand and Eleven.

(Sgd.) BENIGNO S. AQUINO III

By the President:

(Sgd.) PAQUITO N. OCHOA, JR.

Executive Secretary

 

[ANNEXES]

Annex “A”

Third Tranche Monthly Salary Schedule for Civilian National Government Personnel

Effective June 1, 2011

(In Pesos)

Salary Grade
Step 1
Step 2
Step 3
Step 4

1
8,287
8,393
8,501
8,610

2
8,932
9,047
9,162
9,281

3
9,628
9,751
9,876
10,004

4
10,358
10,491
10,626
10,763

5
11,145
11,288
11,434
11,581

6
11,992
12,146
12,302
12,462

7
12,880
13,045
13,213
13,384

8
13,833
14,011
14,192
14,375

9
14,857
15,048
15,242
15,439

10
15,948
16,153
16,360
16,571

11
17,099
17,318
17,540
17,765

12
18,333
18,568
18,805
19,047

13
19,658
19,908
20,162
20,420

14
21,078
21,346
21,618
21,894

15
22,688
22,994
23,305
23,621

16
24,423
24,752
25,085
25,424

17
26,292
26,644
27,002
27,366

18
28,305
28,684
29,068
29,458

19
30,474
30,880
31,292
31,711

20
32,810
33,246
33,688
34,140

21
35,219
35,685
36,158
36,638

22
37,812
38,310
38,815
39,327

23
40,604
41,136
41,676
42,223

24
43,612
44,179
44,756
45,340

25
46,848
47,456
48,071
48,696

26
50,334
50,982
51,642
52,310

27
54,088
54,782
55,487
56,201

28
58,132
58,874
59,628
60,392

29
62,488
63,282
64,088
64,905

30
67,944
68,814
69,697
70,592

31
79,729
80,777
81,841
82,921

32
91,226
92,425
93,642
94,878

33
107,470

 

Salary Grade
Step 5
Step 6
Step 7
Step 8

1
8,721
8,834
8,948
9,064

2
9,400
9,522
9,646
9,772

3
10,133
10,265
10,398
10,534

4
10,904
11,045
11,189
11,335

5
11,732
11,884
12,040
12,197

6
12,624
12,788
12,955
13,125

7
13,558
13,734
13,913
14,096

8
14,561
14,750
14,942
15,138

9
15,639
15,842
16,048
16,257

10
16,786
17,003
17,225
17,449

11
17,994
18,227
18,464
18,703

12
19,291
19,541
19,793
20,050

13
20,682
20,948
21,219
21,493

14
22,174
22,459
22,748
23,041

15
23,941
24,266
24,598
24,934

16
25,767
26,117
26,472
26,832

17
27,736
28,110
28,491
28,878

18
29,854
30,256
30,666
31,080

19
32,137
32,568
33,008
33,453

20
34,596
35,059
35,530
36,009

21
37,125
37,620
38,123
38,633

22
39,848
40,376
40,913
41,457

23
42,778
43,343
43,916
44,498

24
45,934
46,537
47,148
47,769

25
49,330
49,974
50,628
51,292

26
52,988
53,676
54,374
55,083

27
56,926
57,662
58,408
59,166

28
61,167
61,953
62,752
63,562

29
65,735
66,576
67,431
68,296

30
71,500
72,422
73,356
74,305

31
84,017
85,130
86,261
87,408

32
96,132
97,405
98,698
100,011

33

Annex “B”

Third Tranche Monthly Base Pay Schedule for Military and Uniformed Personnel

Effective June 1, 2011

(In Pesos)

DND
DILG
PCG and NAMRIA
Monthly Base Pay

BJMP and BFP
PNP and PPSC

Candidate Soldier

10,386

Private
Fire/Jail Officer I
Police Officer I
Apprentice Seaman/ Seaman Third Class
13,492

Private First Class

Seaman Second Class
14,472

Corporal
Fire/Jail Officer II
Police Officer II
Seaman First Class
15,359

Sergeant

Petty Officer III
16,126

Staff Sergeant
Fire/Jail Officer III
Police Officer III
Petty Officer II
16,986

Technical Sergeant

Petty Officer I
18,286

Master Sergeant
Senior Fire/Jail Officer I
Senior Police Officer I
Chief Petty Officer
19,685

Senior Master Sergeant
Senior Fire/Jail Officer II
Senior Police Officer II
Senior Chief Petty Officer
21,193

Chief Master Sergeant
Senior Fire/Jail Officer III
Senior Police Officer III
Master Chief Petty Officer
22,817

First Chief Master Sergeant
Senior Fire/Jail Officer IV
Senior Police Officer IV
First Master Chief Petty Officer
24,567

Cadet

Cadet

24,567

Probationary Second Lieutenant

24,567

Second Lieutenant

Ensign
26,868

First Lieutenant
Inspector
Inspector
Lieutenant Junior Grade
28,839

Captain
Senior Inspector
Senior Inspector
Lieutenant Senior Grade
31,251

Major
Chief Inspector
Chief Inspector
Lieutenant Commander
32,942

Lieutenant Colonel
Superintendent
Superintendent
Commander
35,380

Colonel
Senior Superintendent
Senior Superintendent
Captain
38,003

Brigadier General
Chief Superintendent
Chief Superintendent
Commodore
40,828

Major General
Director
Director
Rear Admiral
43,872

Vice Admiral
47,150

Lieutenant General

Deputy Director-General
Admiral
51,283

General

Director General

57,500