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.