EXECUTIVE ORDER NO. 77, May 08, 2012
AMENDING EXECUTIVE ORDER (EO) NO. 637 (S. 2007), ON THE BASIS OF THE COMPUTATION OF THE INCENTIVES OF PERSONNEL AFFECTED BY THE IMPLEMENTATION OF THE RATIONALIZATION PROGRAM UND…
366 (s. 2004) calls for a Rationalization Program (RP) to transform the
Executive Branch into a more effective and efficient government by
removing redundancies, overlaps and duplication, focusing its efforts on
vital functions, and channeling resources to core public services;
WHEREAS, personnel
affected by the implementation of the Rationalization Program under EO
No. 366 have the option to either: (a) remain in their mother agency if
their skills are still needed and there are positions where they can be
accommodated; (b) be redeployed to other agencies needing additional
personnel, without reduction in salary; or (c) retire/separate with the
applicable incentives;
WHEREAS, EO No. 637 (s.
2007) provides that the incentives of personnel who may be affected by
the rationalization efforts and would avail of the
retirement/separation/unemployment benefits starting 01 July 2007 or a
later date under Republic Act (RA) No. 660 (An Act to Amend
Commonwealth Act Numbered One Hundred and Eighty-Six entitled “An Act to
Create and Establish a Government Service Insurance System, to Provide
for its Administration, and to Appropriate the Necessary Funds
Therefor,” and to Provide Retirement Insurance and for Other Purposes)
or RA No. 8291 (An Act Amending Presidential Decree No. 1146,
as Amended, Expanding and Increasing the Coverage and Benefits of the
Government Service Insurance System, Instituting Reforms Therein and for
Other Purposes), shall be computed using the actual monthly salary of said personnel as of 30 June 2007;
WHEREAS, the
salaries of government workers have been increasing since 2007 pursuant
to EO No. 611 (s. 2007), EO No. 719 (s. 2008), and Senate and House of
Representatives Joint Resolution No. 4 (s. 2009), as implemented by EO
No. 811 (s. 2009), EO No. 900 (s. 2010), and EO No. 40 (s. 2011); and,
WHEREAS, there
is a need to improve the basis for the computation of EO No. 366
incentives in recognition of the services of personnel affected by the
RP.
NOW, THEREFORE, I, BENIGNO S. AQUINO III, President
of the Philippines , by virtue of the powers vested in me by the
Constitution and by law, do hereby order the following:
SECTION 1. Revised Guidelines in the Computation of Incentives. The
incentives that shall be received by personnel who will be affected by
the RP under EO No. 366 and opt to avail of the retirement benefit under
RA No. 660 or the applicable retirement/separation/unemployment benefit
provided under RA No. 8291 shall be computed using their actual monthly
salary as of 31 December 2011.
The incentive factors under EO
No. 366 shall continuously be adopted. For the purpose of computing the
total amount of incentive, only the government service of an affected
personnel up to age 59 and a fraction thereof shall be counted.
The
terminal leave benefits and retirement/separation/unemployment benefits
of the affected employees, which are being released by the Department
of Budget and Management (DBM) and the Government Service Insurance
System (GSIS), respectively, shall be based on the existing rules and
regulations on the matter.
SECTION 2. Availment of Incentives of Affected Personnel from Agencies with Approved Rationalization Plan (RP). Personnel
who were affected as a result of the approval of the RP of their
respective department/agency/government-owned and/or controlled
corporation (GOCC)/government financial institution (GFI) and opted to
remain either in their mother agency or in another agency shall be
allowed to avail of the retirement/separation/unemployment benefits
under RA No. 660 or RA No. 8291, including the applicable incentives,
within one (1) month from the effectivity of this Order.
Consistent
with Section 1 hereof, the incentives of said personnel shall be
computed using their actual monthly salary as of 31 December 2011 .
SECTION
3. Payment of Incentives of Affected Personnel Who Retired/Separated
Starting 01 July 2007 but Before the Issuance of this Order.
The incentives of those affected personnel who have already availed of
the retirement/separation/unemployment benefits under the aforementioned
retirement laws and whose retirement/separation from government service
became effective starting 01 July 2007 but before the issuance of this
Order shall be based on their actual monthly salary as of the date of
their retirement, subject to the recomputation of their incentive by
their respective agency and validation by the DBM, and the existing
budgeting, accounting and auditing rules and regulations.
SECTION 4. Suspension of the Creation of Regular Positions.
Departments /agencies/GOCCs/GFIs with approved RP shall not be allowed
additional regular positions for at least five (5) years, except the
following:
a) Those to be created under the “scrap and build policy” where there is no additional cost to the government;
b)
Population-related items such as policemen, teachers, and medical and
allied medical positions for hospitals and similar facilities; and,c) For mandated new functions which cannot be absorbed by existing units/positions, as determined by the DBM.
SECTION 5. Funding Source. The
funds necessary to pay the incentives of affected employees in all
regular government agencies shall be provided by the National
Government, chargeable against appropriate funds, as may be determined
by DBM.
Incentives of affected personnel in GOCCs/GFIs shall be
sourced from their respective corporate funds. In case of funding
deficiency of GOCCs/GFIs not exempted from the Salary Standardization
Law, the National Government may provide assistance.
SECTION 6. Responsibility Clause. It
shall be the responsibility of the Department Secretaries and
equivalent Agency Heads to strictly implement the provisions of this
Order. In case of any violation, the official authorizing such action
shall be held responsible for whatever expenses the government incurred
for not strictly following the guidelines set forth.
SECTION 7. Repealing Clause. All
other issuances, rules, and regulations or parts thereof which are
inconsistent with this Order are hereby repealed or modified
accordingly.
SECTION 8. Effectivity. This Order shall take effect upon its publication in the Official Gazette or in a newspaper of general circulation.
DONE, in the City of Manila , this 08 th day of May, in the year of our Lord, Two Thousand and Twelve.
(Sgd.) PAQUITO N. OCHOA, JR. Executive Secretary