Implementation of the First Tranche of the Updated Salary Schedule for Civilian Government Personnel Under Executive Order (EO) No. 64, s. 2024

NATIONAL BUDGET CIRCULAR
No. 594 August 12, 2024

TO :
Heads of Departments, Agencies, and Other Offices of the National Government, Including Commissions/Offices under the Constitutional Fiscal Autonomy Group (CFAG), State Universities and Colleges (SUCs), and Government- Owned or -Controlled Corporations (GOCCs); and All Others Concerned

SUBJECT: 

Implementation of the First Tranche of the Updated Salary Schedule for Civilian Government Personnel Under Executive Order (EO) No. 64, s. 2024

1.0 Background
EO No. 64, s. 2024¹ provides the updated Salary Schedule for Civilian Government Personnel to ensure an effective, competitive, and sustainable Compensation and Position Classification System (CPCS) in order to attract, retain, and motivate competent and dedicated civil servants.

The updated Salary Schedule for Civilian Personnel will be implemented in four (4) tranches, from Fiscal Year (FY) 2024 to FY 2027.

2.0 Purpose

This Circular is issued to provide the guidelines, rules, and regulations for the implementation of the first tranche of the updated Salary Schedule for Civilian Personnel under EO No. 64, s. 2024.

3.0 Coverage
This Circular applies to all civilian government personnel, now existing or hereafter created in the Executive, Legislative, and Judicial Branches, the Constitutional Commissions and other Constitutional Offices, SUCs, and GOCCS.not covered by Republic Act (RA) No. 101492 and EO No. 150, s. 20213, regardless of appointment status, whether regular, casual, or contractual; appointive or elective; and on full-time or part-time basis

First Tranche Implementation of the Updated Salary Schedule for Civilian Personnel Effective January 1, 2024

The new salary rates that is effective on January 1, 2024 pursuant to EO No. 64, s. 2024 shall be in accordance with the First Tranche Monthly Salary Schedule for Civilian Personnel, which is attached as Annex A to this Circular.

Rules for Adjusting Salaries

5.1.1 The salaries of incumbent civilian personnel shall be adjusted to the rates in the Salary Schedule in Annex A corresponding to the designated steps of the salary grade allocations of their positions as of December 31, 2023, provided, that their positions and salary grades are in accordance with the Index of Occupational Services, Occupational Groups, Classes, and Salary Grades issued under Budget Circular No. 2022-25, and additions/modifications thereto.

5.1.2 If the actual monthly basic salary of an incumbent as of December 31, 2023 falls between steps of the salary grade allocation of the position due to the grant of service award or as a result of demotion or transfer due to the exigency of the service, the salary shall be adjusted to the rate for the higher step in the Salary Schedule in Annex A.

5.1.3 If the actual monthly basic salary of an incumbent as of December 31, 2023 exceeds that for Step 8 of the salary grade allocation of the position:

5.1.3.1 The salary shall be adjusted to the rate for Step 8 of the same salary grade in the Salary Schedule in Annex A.

5.1.3.2 The employee shall not be entitled to salary increase if the actual salary as of December 31, 2023 exceeds the rate for Step 8 of the same salary grade in the Salary Schedule in Annex A.

5.1.4 The salary of a new hire shall be the rate corresponding to Step 1 of the salary grade allocation of the position in the Salary Schedule in Annex A.

5.1.5 The salaries/wages of the contractual/casual personnel shall be adjusted to the rates corresponding to Step 1 of the salary grade allocations of their positions in the Salary Schedule in Annex A.

The adjusted daily wage rates of casual personnel shall be computed by dividing the monthly rates by 22 workdays per month.

5.1.6 Compulsory retirees whose services have been extended beyond December 31, 2023 shall be entitled to salary increase based on Items 5.1.1 to 5.1.3 of this Circular, whichever is applicable.

However, their retirement benefits, including Terminal Leave Benefits, shall be computed based on their monthly basic salaries as of the day prior to the effective date of their retirement, in accordance with existing laws, rules, and regulations.

Annex Ccontains illustrative examples of how to apply the above salary rules.

6.0 Implementation of the First Tranche Salary Schedule in GOCCs under the coverage of the Department of Budget and Management (DBM)

6.1 The implementation of the First Tranche Monthly Salary Schedule in GOCCS covered by the DBM shall be determined by their respective governing boards, provided, it shall not be earlier than January 1, 2024.

6.2 GOCCs which do not have sufficient funds to fully implement the Salary Schedule in Annex A may adopt their own salary schedules at lower rates but at a uniform percentage of the salaries in Annex A.

6.3 When developing such salary schedules, GOCCs shall ensure that they can fund on a sustainable basis the salary adjustments, including the government counterparts to the Retirement and Life Insurance Premiums (RLIP), Pag-IBIG Contributions, PhilHealth Contributions, and the Employees Compensation Insurance Premiums.

6.4 The relevant rules in this Circular shall apply when adjusting the salaries of incumbent personnel, effective not earlier than January 1, 2024.

7.0 Procedural Guidelines

7.1 The Human Resource Management Officer (HRMO)/Administrative Officer (AO) of a national government agency (NGA) or GOCC shall prepare Notices of Salary Adjustment (NOSAS) for the incumbent civilian personnel by following the format marked as Annex B-1 or Annex B-2, whichever is applicable, for approval by the Head of Agency.

On the other hand, the HRMO/AO is no longer required to prepare NOSAs for personnel whose actual monthly salaries as of December 31, 2023 exceed the rates corresponding to Step 8 of the salary grade allocations of their positions in Annex A.

7.2 When using digital/electronic signatures for NOSAS, agencies must follow the guidelines for the purpose, as provided under DBM Circular Letter No. 2024-76.

7.3 The NOSAs shall be issued to the personnel concerned, copy furnished the Government Service Insurance System (GSIS) if they are members thereof.

7.4 The salary adjustment under this Circular shall be subject to the usual accounting and auditing rules and regulations, and to appropriate re- adjustment if found not in order. The personnel concerned shall refund any overpayments received.

8.0 Fund Sources

8.1 The amounts required for the salary adjustment of civilian government personnel in FY 2024 shall be charged against the Miscellaneous Personnel Benefits Fund (MPBF) and any available appropriations under RA No. 11975 or the FY 2024 General Appropriations Act (GAA), subject to budgeting, accounting, and auditing rules and regulations.

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8.2 The amounts required to implement the salary adjustment and related fixed expenditures of casual and contractual personnel in NGAs whose salaries are drawn from the lumpsum appropriations for non-itemized positions shall be sourced from the agency's lumpsum appropriations included in its FY 2024 budget.

8.3 For covered GOCCs, the amounts shall be charged against their approved corporate operating budgets (COBs), provided that the national government shall not release funds for salary adjustment or any related expenditures; provided, further, that the GOCCs shall not resort to borrowings for the purpose; and provided, furthermore, that the performance targets in their DBM-approved COBs are met and their programs/projects for the year are not adversely affected.

9.0 Release of Funds

9.1 The DBM shall release to the agencies concerned the Special Allotment Release Orders (SAROS) to implement the first tranche of the salary adjustment prescribed under EO No. 64, s. 2024, to wit:

9.1.1 For the full year requirements of the salary adjustment, based on data from the Government Manpower Information System, chargeable against the MPBF and any available appropriations under the FY 2024 GAA; and

9.1.2 For the related fixed expenditures of regular personnel, i.e., RLIP requirements, chargeable against automatic appropriations.

9.1.3 The SARO shall be released directly to the operating units of the agencies concerned based on the number of filled positions as of December 31, 2023.

9.2 The DBM shall issue the corresponding Notices of Cash Allocation with monthly breakdown, to cover the total annual requirement, i.e., January 2024 to December 2024, for this salary adjustment and related fixed expenditures, consistent with applicable guidelines.

9.3 Any additional requirement for newly-filled positions after the December 31, 2023 cut-off date may be included in the agency's request for release of funds for PS deficiency, subject to the submission of the pertinent documents required for processing of PS deficiency, as well as the following information:

9.3.1 Item numbers, positions and salary grades, names of incumbents, salaries, and dates of assumption to duty; and

9.3.2 Latest Statement of Appropriations, Allotments, Obligations, Disbursements and Balances, highlighting the amount of allotments received and corresponding obligations and disbursements incurred for salary adjustments.

10.0 Exempt Entities

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Consistent with Section 8 of EO No. 64, exempt entities shall be governed by their respective CPCS which shall be made effective upon the recommendation of the DBM or the GCG, as the case may be, and approved by the President of the Philippines.

Exempt entities refer to: (a) government agencies that are not covered by the CPCS authorized under RA No. 6758, as amended; (b) GOCCS governed by the CPCS established by the GCG under RA No. 10149 and EO No. 150; and (c) those authorized by law and have actually implemented their own CPCS.

11.0 Applicability to Certain Officials

Pursuant to Section 6 of Article VII and Section 10 of Article VI of the Constitution, the salaries authorized herein for the President of the Philippines, Vice-President of the Philippines, and Members of the Congress shall take effect only after the expiration of the respective terms of the present incumbents.

12.0 Responsibilities of Agencies

Agencies shall be responsible for the proper implementation of the provisions of this Circular. The responsible officers shall be held liable for any payment not in accordance with the provisions hereof without prejudice to the refund by the employees concerned of any excess or unauthorized payments.

13.0 Resolution of Cases

Cases not covered by the provisions of this Circular shall be referred to the DBM for resolution.

14.0 Effectivity

The effectivity of the compensation adjustments authorized herein shall retroact on January 1, 2024.

This Circular shall take effect immediately.

AMENAH F. PANGANDAMAN

 Secretary

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