4th tranche of salary adjustment, differential expected this month

4th tranche of salary adjustment, differential expected this month

Government workers are expecting to receive their fourth tranche of salary increase adjustment and differentials this April with the issuance of the Executive Order No. 76 by President Rodrigo R. Duterte, which authorizes the fourth tranche of compensation adjustments to be charged against any available appropriations under the reenacted budget this year.

Executive Order No. 76 amended Section 15(a) of Executive Order No. 201, series of 2016, thereby modifying the funding source of the compensation adjustment in fiscal year 2019.

Under EO No. 201, government employees were supposed to receive the last and final tranche of their salary increase starting January 2019, but the budget impasse has stalled its implementation.

Section 1(a) of Executive Order No. 76 expressly states that: “[p]ending the enactment of the FY 2019 GAA, the funding requirements for the compensation adjustment for FY 2019 shall be charged against any available appropriations under the FY 2018 GAA, as reenacted, to be determined by the DBM, subject to existing budgeting, accounting and auditing rules and regulations.”

Via EO No. 76, Duterte said that pending enactment of this year’s national budget the funding requirements for the 2019 compensation adjustment would be charged against “any available appropriations” under the 2018 General Appropriations Act (GAA). 

This Executive Order was issued to resolve the funding requirements of the compensation adjustment that cannot be met due to the continued budget impasse in Congress. This serves as an interim measure to release the fourth tranche of compensation adjustment to government personnel, pending the passage of the 2019 GAA.

With this EO, national government agencies may already start processing the salary differentials of eligible employees. In addition, the DBM will issue guidelines governing the grant of salary differentials and the continued implementation of the fourth tranche of compensation adjustment.

The series of compensation adjustments, culminating in the fourth tranche for FY 2019, intends to provide equitable compensation to government employees. This is in accordance with the principle of equal pay for work of equal value, as well as to enable the government to attract, retain, and motivate competent civil servants.