Executive Order No. 40 (2011)

Coverage and Exclusion

SECTION 1.

Coverage and Exclusion.

(a) Civilian Personnel — The compensation adjustments due to the implementation of the third tranche of the modified Salary Schedule shall cover all positions for civilian personnel in the Executive, Legislative, and Judicial Branches, the Constitutional Commissions/Offices, State Universities and Colleges, GOCCs, GFIs, and LGUs, whether regular, casual, or contractual in nature, appointive or elective, on full-time or part-time basis, now existing or hereafter created.

(b) Military and Uniformed Personnel — The compensation adjustments due to the implementation of the third tranche of the modified Base Pay Schedule shall cover the military personnel under the Department of National Defense (DND) and uniformed personnel under the Department of the Interior and Local Government (DILG), Philippine Coast Guard (PCG), and National Mapping and Resource Information Authority (NAMRIA).

(c) The following are excluded from the coverage of the compensation adjustments:

(i) Individuals and groups of people whose services are engaged through job orders, contracts of service, or others similarly situated; and

(ii) Civilian personnel in government entities which are exempted from RA No. 6758 and are authorized by law to adopt and are actually implementing their own compensation and position classification systems approved by the Office of the President.

SECTION 2.

Implementation of the Third Tranche Monthly Salary Schedule for Civilian Personnel of the National Government. The Salary Schedule attached as Annex —A,— which is the third tranche of the modified Salary Schedule provided in item (4)(b) of Joint Resolution No. 4, shall be implemented effective 1 June 2011 for personnel in NGAs, and in GOCCs and GFIs.

SECTION 3.

Implementation of the Third Tranche Monthly Base Pay Schedule for Military and Uniformed Personnel. The Base Pay Schedule attached as Annex —B,— which is the third tranche of the modified Base Pay Schedule in item (8) of Joint Resolution No. 4, shall be implemented effective 1 June 2011.

Implementation of the Third Tranche Monthly Salary Schedule for LGU Personnel

SECTION 4.

Implementation of the Third Tranche Monthly Salary Schedule for LGU Personnel. The implementation of the third tranche of the modified Salary Schedule for LGU personnel shall be determined by the sanggunian concerned based on the LGU income class and financial capability: Provided, That such salary rates shall not exceed the following applicable percentages of the rates in Annex —A,— pursuant to item (7)(a) of Joint Resolution No. 4: Provided, Further, That the resulting Personal Services (PS) cost shall not exceed the PS limitation in LGU budgets, as provided under Sections 325(a) and 331(b) of RA No. 7160:Provided, Finally, That there shall be no diminution in the basic salaries of incumbents for purposes of complying with said PS limitation.

Percentages of Salary Rates in Annex —A—

For Provinces/Cities For Municipalities

Special Cities 100%

1st Class 100% 90%

2nd Class 95% 85%

3rd Class 90% 80%

4th Class 85% 75%

5th Class 80% 70%

6th Class 75% 65%

For this purpose, the DBM shall issue the Third Tranche Monthly Salary Schedule for Local Government Personnel for each LGU income class to take effect not earlier than 1 January 2012.

Inapplicability to Certain Officials

SECTION 5.

Inapplicability to Certain Officials. In accordance with Section 10, Article VI of the Constitution, no increase in compensation shall take effect until after the expiration of the full term of all the Members of the Senate and the House of Representatives approving such increase.

Funding

SECTION 6.

Funding. The fund sources for the amounts necessary to implement the provisions of this Executive Order shall be as follows:

(a) For NGAs, the amounts shall be charged against the appropriation for the purpose under the MPBF in the FY 2011 GAA and from available savings.

Thereafter, such amounts as may be needed shall be included in the annual GAA;

(b) For GOCCs and GFIs, the amounts shall be charged against their respective corporate funds in the approved corporate operating budgets; and

(c) For LGUs, the amounts shall be charged against their respective local government funds.

Uniform Implementation in Case of Insufficiency of Funds

SECTION 7.

Uniform Implementation in Case of Insufficiency of Funds.

(a) GOCCs and GFIs which do not have adequate or sufficient funds shall implement salary schedules which shall be at uniform percentages of the rates in Annex —A.—

(b) LGUs which do not have adequate or sufficient funds to implement the salaries authorized for their LGU income classes shall implement salary schedules which shall be at uniform percentages of the rates in the respective Third Tranche Monthly Salary Schedules for Local Government Personnel.

Implementing Rules and Regulations

SECTION 8.

Implementing Rules and Regulations. The DBM shall issue the necessary rules and regulations to implement this Executive Order.

Separability Clause

SECTION 9.

Separability Clause. If any provision of this Executive Order is declared invalid or unconstitutional, the other provisions not affected thereby shall remain valid and subsisting.

Repealing Clause

SECTION 10.

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

Effectivity

SECTION 11.

Effectivity. This Executive Order shall take effect immediately.

DONE in the City of Manila this 29th day of April, in the year of our Lord, Two Thousand and Eleven.

(Sgd.) BENIGNO S. AQUINO III

By the President:

(Sgd.) PAQUITO N. OCHOA, JR. Executive Secretary

[ANNEXES]

Annex —A—

THIRD TRANCHE MONTHLY SALARY SCHEDULE FOR CIVILIAN NATIONAL GOVERNMENT PERSONNEL EFFECTIVE JUNE 1, 2011 (In Pesos)

Salary Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8

1 8,287 8.393 8,501 8,610 8,721 8,834 8.948 9,064

2 8,932 9,047 9,162 9,281 9,400 9,522 9,646 9,772

3 9,628 9,751 1,876 10,004 10,133 10,265 10,398 10,534

4 10,358 10,491 10,626 10,763 10,904 11,045 11,189 11,335

5 11,145 11,288 11,434 11,581 11,732 11,884 12,040 12,197

6 11,992 12,146 12,302 12,462 12,624 12,788 12,955 13,125

7 12,880 13,045 13,213 13,384 13,558 13,734 13,913 14,096

8 13,833 14,011 14,192 14,375 14,561 14,750 14,942 15,138

9 14,857 15,048 15,242 15,439 15,639 15,842 16,048 16,257

10 15,948 16,153 16,360 16,571 16,786 17,003 17,225 17,449

11 17,099 17,318 17,540 17,765 17,994 18,227 18,464 18,703

12 18,333 18,568 18,805 19,047 19,291 19,541 19,793 20,050

13 19,658 19,908 20,162 20,420 20,682 20,948 21,219 21,493

14 21,078 21,346 21,618 21,894 22,174 22,459 22,748 23,041

15 22,688 22,994 23,305 23,621 23,941 24,266 24,598 24,934

16 24,423 24,752 25,085 25,424 25,767 26,117 26,472 26,832

17 26,292 26,644 27,002 27,366 27,736 28,110 28,491 28,878

18 28,305 28,684 29,068 29,458 29,854 30,256 30,666 31,080

19 30,474 30,880 31,292 31,711 32,137 32,568 33,008 33,453

20 32,810 33,246 33,688 34,140 34,596 35,059 35,530 36,009

21 35,219 35,685 36,158 36,638 37,125 37,620 38,123 38,633

22 37,812 38,310 38,815 39,327 39,848 40,376 40,913 41,457

23 40,604 41,136 41,676 42,223 42,778 43,343 43,916 44,498

24 43,612 44,179 44,756 45,340 45,934 46,537 47,148 47,769

25 46,848 47,456 48,071 48,696 49,330 49,974 50,628 51,292

26 50,334 50,982 51,642 52,310 52,988 53,676 54,374 55,083

27 54,088 54,782 55,487 56,201 56,926 57,662 58,408 59,166

28 58,132 58,874 59,628 60,392 61,167 61,953 62,752 63,562

29 62,488 63,282 64,088 64,905 65,735 66,576 67,437 68,296

30 67,944 68,814 69,697 70,592 71,500 72,422 73,356 74,305

31 79,729 80,777 81,841 82,921 84,017 85,130 86,261 87,408

32 91,226 92,425 93,642 94,878 96,132 97,405 98,698 100,011

33 107,470

Annex —B—

THIRD TRANCHE MONTHLY BASE PAY SCHEDULE FOR MILITARY AND UNIFORMED PERSONNEL EFFECTIVE JUNE 1, 2011 (In Pesos)

DND DILG PCG and NAMRIA Monthly Base Pay

BJMP and BFP PNP and PPSC

Candidate Soldier

10,386

Private

Fire/Jail Officer I

Police Officer I

Apprentice Seaman/ Seaman Third Class

13,492

Private First Class

Seaman Second Class

14,472

Corporal

Fire/Jail Officer II

Police Officer II

Seaman First Class

15,359

Sergeant

Petty Officer III

16,126

Staff Sergeant

Fire/Jail Officer III

Police Officer III

Petty Officer II

16,986

Technical Sergeant

Petty Officer I

18,286

Master Sergeant

Senior Fire/Jail Officer I

Senior Police Officer I

Chief Petty Officer

19,685

Senior Master Sergeant

Senior Fire/Jail Officer II

Senior Police Officer II

Senior Chief Petty Officer

21,193

Chief Master Sergeant

Senior Fire/Jail Officer III

Senior Police Officer III

Master Chief Petty Officer

22,817

First Chief Master Sergeant

Senior Fire/Jail Officer IV

Senior Police Officer IV

First Master Chief Petty Officer

24,567

Cadet

Cadet

24,567

Probationary Second Lieutenant

24,567

Second Lieutenant

Ensign

26,868

First Lieutenant

Inspector

Inspector

Lieutenant Junior Grade

28,389

Captain

Senior Inspector

Senior Inspector

Lieutenant Senior Grade

31,251

Major

Chief Inspector

Chief Inspector

Lieutenant Commander

32,942

Lieutenant Colonel

Superintendent

Superintendent

Captain

35,380

Colonel

Senior Superintendent

Senior Superintendent

Captain

38,003

Brigadier General

Chief Superintendent

Chief Superintendent

Commodore

40,828

Major General

Director

Director

Reae Admiral

43,828

Vice Admiral

47,150

Lieutenant General

Deputy Director-General

Admiral

51,283

General

Director General

57,500

Reference: Annexes —A— and —B—

Source: Malaca—ang Records Office

Office of the President of the Philippines. (2011). [Executive Order]. Manila : Malaca—ang Records Office.