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Posted on February 24, 2016 by  in DBM Websites News

Starting next week, agencies may start processing adjustments in compensations with the issuance today by the Department of Budget and Management (DBM) of the National Budget Circular No. 562 and Local Budget Circular No. 108.
These circulars will implement the first tranche compensation adjustment for government workers and additional allowances for Military and Uniformed Personnel (MUP), as mandated under Executive Order 201 (s. 2016).
“With the issuance of these circulars, the salaries of civilian personnel will be adjusted in accordance with the First Tranche Monthly Salary Schedule as provided in the Executive Order. Likewise, the new allowances for MUP will be granted in accordance with the schedule provided in the EO. Meanwhile, the Hazard Pay for MUP shall be increased from the current rate of P240 per month to P390 per month,” Budget Secretary Florencio B. Abad said.
Abad added that since the compensation adjustment is retroactive to January 1, 2016, civilian personnel will receive salary differential and MUPs will receive the Hazard Pay differential and new allowances due them since January.
National Budget Circular No. 562 prescribes the guidelines for the implementation of the EO for civilian personnel in the executive, legislative and judicial branches, including constitutional commissions, state colleges and universities (SUCs), and government-owned and -controlled corporations (GOCCs) covered by the Compensation and Position Classification System (CPCS). Local Budget Circular No. 108 covers local government unit (LGU) personnel and barangay personnel positions that are paid monthly honoraria.
Military and Uniformed Personnel to get same pay adjustment as civilians
The President signed Executive Order 201 last week modifying the salary schedule for civilian government personnel and authorizing the grant of additional benefits for both civilian and MUP in response to the congressional deadlock on the issue of the indexation of MUP pension. This resulted in the non-passage of the proposed Salary Standardization Law of 2015.
The EO effects compensation adjustments for this year as an interim measure to implement Tranche 1 of the proposed SSL, the full year requirement for which has already been provided in the 2016 Budget.
For civilian government personnel, the EO effects the adoption of the same proposals in House Bill 6268 and Senate Bill 2671 for the salary increase, the grant of the mid-year bonus equivalent to one month’s basic salary, and the Productivity Enhancement Incentive (PEI) of P 5,000.
For MUP, EO 201 provides for two new allowances: the Provisional Allowance and Officers’ Allowance, in lieu of an increase in Base Pay in consideration of the pension implications of Base Pay adjustment of active MUP. These two new allowances approximate the added remuneration had the Base Pay been increased. The amounts of these allowances are also based on the proposed increases in Base Pay under the proposed bills on SSL 2015.
Abad said this is an interim measure to supplement the total compensation of MUP until such time that a pension reform measure is passed in Congress that will mitigate the impact of pension indexation.

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