M a n i l a



WHEREAS, it is declared and adopted policy of the National Government to standardize compensation of officials and employees of the national government, in accordance with the Constitutional mandate, on the basis of substantial similarity in duties and responsibilities and qualification requirements for satisfactory performance of assigned tasks;

WHEREAS, there are existing special salary laws, decrees, and other approvals that authorize salary rates other than those in the National Classification and Pay Plans;

WHEREAS, the proliferation of special salary laws is inimical to sound public administration and complicates the process of salary adjustment due to disparities and inflexibility in salary rates, pay ranges and/or other forms of compensation;

NOW, THEREFORE, I FERDINAND E. MARCOS, President of the Philippines by virtue of the powers vested in me by the Constitution, do hereby order and decree:

Section 1. Statement of Policy. It is hereby declared policy that the officials and employees of the national government, including the Judiciary, the Career Executive Service, the Foreign Service, the Armed Forces, subordinate officials of Constitutional Commissions, government owned or controlled corporations, and state colleges and universities, shall be compensated in accordance with a National Position Classification and Compensation Plan approved by the President.

Section 2. Coverage. The coverage of the position classification and compensation systems established in Sec. 4 of P.D. No. 985 is hereby amended to limit the exemptions mentioned therein to the following officials: (a) elected officials and officers whose compensation is fixed by the Constitution, (b) local government officials and employees, who are governed by P.D. No. 1136.

Section 3. Repeal of Special Salary Laws and Regulations. All laws, decrees, executive orders and other issuances or parts thereof, that exempt agencies from the coverage of the National Compensation and Position Classification System as established by P.D. No. 985 and P.D. No. 1285, or which authorize and fix position classification, salaries, pay rates/ranges or allowances for specified positions, to groups of officials and employees, or to agencies, that are inconsistent with the position classification or rates in the National Compensation and Position Classification Plan, are hereby repealed.

Section 4. Salaries of Incumbents. All positions presently assigned salaries which have been fixed in special salary laws, decrees, executive orders or other authorizations, shall continue to be authorized said salaries until such time as the positions are fully integrated within the national compensation and position classification plan: Provided, That the Budget Commission shall issue such rules and regulations as will assure an orderly transition into a single national position classification and compensation system; Provided, Further, that no incumbent of positions heretofore excluded from the coverage of P.D. No. 985 and P.D. No. 1285, shall suffer a reduction in total salary and allowances.

Section 5. Allowances, Honoraria, and Other Fringe Benefits. Allowances, honoraria and other fringe benefits which may be granted to government employees, whether payable by their respective offices or by other agencies of government, shall be subject to the approval of the President upon recommendation of the Commissioner of the Budget. For this purpose, the Budget Commission shall review on a continuing basis and shall prepare, for the consideration and approval of the President, policies and levels of allowances and other fringe benefits applicable to government personnel, including honoraria or other forms of compensation for participation in projects which are authorized to pay additional compensation.

Section 6. Exemptions from OCPC Rules and Regulations. Agencies positions, or groups of officials and employees of the national government, including government owned or controlled corporations, who are hereafter exempted by law from OCPC coverage, shall observe such guidelines and policies as may be issued by the President governing position classification, salary rates, levels of allowances, project and other honoraria, overtime rates, and other forms of compensation and fringe benefits. Exemptions notwithstanding, agencies shall report to the President, through the Budget Commission, on their position classification and compensation plans, policies, rates and other related details following such specifications as may be prescribed by the President.

Section 7. Repealing Clause. Any law or decree, or parts thereof which are inconsistent herewith, are hereby repealed or amended accordingly.

Section 8. Effectivity. This Decree shall take effect immediately.

Done in the City of Manila, this 11th day of June, in the year of Our Lord, nineteen hundred and seventy-eight.

The Lawphil Project - Arellano Law Foundation