EXECUTIVE ORDER No. 462, September 19, 2005

ADOPTING MEASURES AND SAFETY NETS TO PROTECT THE INCOME OF GOVERNMENT EMPLOYEES, CREATING THE COMMITTEE ON PROTECTION OF INCOME OF GOVERNMENT EMPLOYEES, AND FOR OTHER PURPOSES

WHEREAS, the Constitution (Article, Section 18) mandates the State to affirm labor as a primary social economic force and shall protect the rights of the workers and promote their welfare;

WHEREAS, it is imperative that the government adopt measures to protect the welfare of government employees specifically through measures and safety nets that will protect their meager income in order to strengthen their commitment to public service and improve their work efficiency and effectiveness;

WHEREAS, in the Presidential Anti-Corruption Workshop held on 15-17 December 2004, the 22-Integrity Development Action Plan (IDAP) National Framework was developed and presented by various government agencies, which plan includes Prevention Action Plan No. 6 entitled “Protect the Meager Income of Government Employees” and which aims to promote their morale and satisfaction in the government service;

WHEREAS, the President, as the Chief Executive, is empowered to institute measures, programs and projects that will ensure and enhance the welfare of government employees.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. There is hereby created a Committee on Protection of Income of Government Employees (hereinafter referred to as “Committee”) which shall be tasked to formulate, implement and monitor programs and projects that would provide assistance to government employees particularly the financially-distressed, and promote their morale and welfare.

In the attainment of its objective, the Committee shall adopt, institute and ensure that the following, among others, are observed in all government agencies, including government-owned and/or controlled corporations, as well as government financial institutions:

1. Adopt the poverty threshold as limitation for purposes of deduction from salaries of government employees for payment of loan amortization and service fees for private association and lenders;

2. Eradicate systems and procedures that lead to negative bureaucratic behavior, such as debt-culture;

3. Promote employees’ morale and welfare; and

4. Provide motivation to officials and employees to observe public service ethical standards.

Section 2. The Committee shall be composed of representatives from various government agencies, consisting of:

Chairman	The Assistant Executive Secretary (AES) for Internal Audit Office, Office of the President (OP), in ex-officio capacity
Vice-Chairman	The President of Philippine Government Employees Association (PGEA)
Members	Representatives from:
	Civil Service Commission (CSC)
	Department of Budget and Management (DBM)
	Department of Justice (DOJ)
	National Economic and Development Authority (NEDA)
	Presidential Council on Values Formation (PCVF)
	National Convention of Government Employees Working Council (NCGEWC)
Head Secretariat	The AES for Budget and Corporate Affairs, OP, in ex-officio capacity

Section 3. All departments, agencies or instrumentalities, including government-owned or controlled corporations and government financial institutions are enjoined to support and assist the Committee in carrying out its functions.

Section 4. All issuances, orders, rules and regulations, or parts thereof, inconsistent with this Executive Order are hereby repealed, amended or modified accordingly.

Section 5. This Executive Order shall take effect immediately.

Done, in the City of Manila, this 19th day of September in the year of Our Lord, Two Thousand and Five.

(Sgd.) GLORIA MACAPAGAL-ARROYO

President of the Philippines

By the President:

(SGD.) EDUARDO R. ERMITA

Executive Secretary