EXECUTIVE ORDER NO. 611, July 01, 2007

AUTHORIZING COMPENSATION ADJUSTMENTS TO GOVERNMENT PERSONNEL

WHEREAS, an efficient and effective civil service is crucial to the continuous development of our country;

WHEREAS, the basic salary of government employees has not been increased since July 2001, or for more than 5 years, notwithstanding periodic wage adjustments granted to the private sector, and the continuous rise in the prices of basic commodities;

WHEREAS, the subsistence allowance of the military and uniformed personnel was last adjusted in 1998, while the hazard pay has remained at P120/month since its initial grant in 1987;

WHEREAS, there is an imperative need to improve the morale of the civil service through a more competitive compensation system that supports the economic well being of government personnel;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by Presidential Decree (P.D. No. 1597, Republic Act (R.A.) No. 6758, as amended by the Senate and House of Representatives Joint Resolution No. 1 dated March 7, 1994, and R.A. No. 9336, do hereby order:

Section 1. New Salary Schedule of Civilian Government Personnel. - The Department of Budget and Management (DBM) is hereby directed to implement a ten percent (10%) increase over the basic monthly salaries as of June 30, 2007 of civilian government personnel whose positions are covered by the Compensation and Position Classification System under R.A. No. 6758, as amended, effective July 1, 2007.

The adjusted salaries of civilian government personnel shall be in accordance with the Salary Schedule marked as Annex "A" of this Executive Order. Provided that the adjustments shall be the designated salary step of the employee in the salary grade allocation of his or her position as of June 30, 2007.

Section 2. Subsistence Allowance and Hazard Pay of Military and Uniformed Personnel - Military personnel of the Armed Forces of the Philippines and all uniformed personnel under the Department of the Interior and Local Government, Philippine coast Guard, and National Mapping and Resource Information Authority are hereby granted a Thirty Pesos (P30) per day increase in their subsistence allowance and a One Hundred Twenty Pesos (P120) per month increase in their hazard pay effective July 1, 2007.

Section 3. Coverage - The ten percent (10%) salary increase authorized herein shall cover civilian officials and employees of National Government Agencies (NGAs) including State Universities and Colleges, Government Owned and/or Controlled Corporations (GOCCs), Government Financial Institutions (GFIs) and Local Government Units (LGUs), which are covered by the Compensation and Position Classification System under R.A. No. 6758, as amended.

Government agencies which are exempted by law from the coverage of R.A. No. 6758, as amended, shall not be entitled to any of the compensation adjustments provided herein.

Section 4. Fund Source. - The amounts necessary to implement the compensation adjustments authorized herein shall be sourced, as follows:

a.) For NGAs, the amount shall be charged against the appropriate fund source under the FY 2007 General Appropriations Act. Thereafter, such amounts as are needed shall be included in the annual General Appropriations Act.

b.) For GOCCs and CFIs, the amount shall be taken from their respective corporate funds.

c.) For LGUs, the amount shall come from their respective local funds.

Section 5. Uniform Percentage Increase in Case of Insufficiency of Funds. - GOCCs, GFIs and LGUs, which do not have adequate or sufficient funds to pay the compensation adjustments authorized herein, shall only partially implement the adjusted rates: Provided, that any partial implementation shall be a uniform increase for all positions.

Section 6. Allowances and Benefits Based on a Percentage of the Basic Salary of Civilian Personnel. - Except for the year-end bonus and fixed personnel benefit contributions, there shall be no corresponding increase in the present allowances and benefits being received by or paid for civilian government personnel, which are computed at a percentage of their basic salaries, notwithstanding the ten percent (10%) salary increase authorized herein.

Section 7. Applicability to Certain Constitutional Officials. - The salary increase authorized herein for the President, Vice-President, Senators and members of the House of Representatives shall take effect only after the expiration of the respective terms of office of the incumbent officials pursuant to Section 10 of Article VI and Section 6 of Article VII of the 1987 Constitution.

Section 8. Implementing Rules and Regulations. - The DBM shall prepare and issue the necessary rules and regulations to implement the provisions of this Executive Order.

Section 9. Effectivity. - The compensations adjustments authorized herein shall take effect on July 1, 2007.

Manila, Philippines, 14 March 2007

GLORIA MACAPAGAL-ARROYO

By the President:

EDUARDO R. ERMITA

Executive Secretary

ANNEX "A"

Monthly Salary Schedule for Civilian Personnel

Effective July 1, 2007

Salary	STEP	STEP	STEP	STEP	STEP	STEP	STEP	STEP
Grade	1	2	3	4	5	6	7	8
1	5590	5730	5873	6020	6171	6325	6483	6645
2	6094	6246	6402	6563	6725	6894	7066	7244
3	6643	6808	6977	7153	7330	7515	7701	7895
4	7174	7352	7536	7724	7918	8116	8318	8526
5	7747	7941	8139	9010	9236	9467	9703	9946
6	8367	8576	8791	9010	9236	9467	9703	9946
7	8953	9175	9405	9640	9882	10128	10382	10643
8	9580	9819	10054	10316	10573	10837	11109	11386
9	10250	10506	10769	11039	11315	11596	11888	12183
10	10933	11207	11486	11774	12068	12371	12680	12997
11	11589	11878	12175	12478	12792	13112	13440	13774
12	12284	12591	12906	13229	13559	13899	14245	14601
13	13021	13347	13680	14022	14372	14732	15101	15477
14	13801	14147	14500	14863	15235	15616	16006	16405
15	14630	14995	15370	15754	16148	16553	16965	17391
16	15508	15895	16292	16701	17117	17546	17985	18434
17	16438	16849	17270	17701	18146	18599	19064	19540
18	17425	17861	18307	18765	19235	19714	20208	20713
19	18471	18932	19405	19891	20389	20898	21420	21955
20	19579	20068	20569	21085	21612	22152	22705	23274
21	20361	20871	21393	21927	22475	23036	23614	24203
22	21176	21705	22245	22804	23375	23959	24558	25171
23	22022	22573	23139	23717	24308	24917	25540	26179
24	22905	23477	24065	24665	25284	25915	26563	27227
25	23821	24417	25026	25653	26293	26951	27624	28316
26	24773	25392	26028	26678	27345	28028	28730	29448
27	25761	26409	27070	27745	28438	29150	29878	30626
28	26795	27465	28152	28855	29576	30315	31074	31851
29	27866	28564	29277	30009	30760	31529	32317	33124
30	31763	32557	33372	34205	35060	35937	36835	37755
31	44468	45580	46718	47886	49083	50311	51568	52857
32	50820	52091	53393	57729	56096	57498	58936	60409
33	63525