ESTABLISHING THE SYSTEM OF POSITION CLASSIFICATION AND COMPENSATION FOR THE OFFICE OF THE PRIME MINISTER (PROPER) AS WELL AS THE RULES AND REGULATIONS FOR ITS IMPLEMENTATION

WHEREAS, the Prime Minister is the head of the Cabinet and the
Chairman of the Executive Committee, as well as, responsible for the day-to-day
supervision of all ministries and the details of administration of the
government pursuant to the provisions of the Constitution and the
aforementioned Executive Order;

WHEREAS, in view of the transfer of personnel from the Office of the
President to the Office of the Prime Minister under Executive Order No. 708 and
the need to adopt a comparable position classification and compensation scheme
for the purpose; and

WHEREAS, the constitutional responsibilities of the Prime Minister
require an effective, responsive and efficient organizational structure and
staff;

NOW,
THEREFORE, I, FERDINAND E. MARCOS,
President of the Philippines, by virtue of the powers vested in me by law, do
hereby order and promulgate the following:

SECTION
1. The System. – The system consists
of the Position Classification Plan and the Compensation Plan for the Office of
the Prime Minister (Proper).

SECTION
2. Coverage. – The system shall cover
all regular positions in the Office of the Prime Minister (Proper) except the
positions of the Prime Minister and Deputy Prime Minister.

SECTION
3. The Position Classification Plan. –
The Position Classification Plan shall consist of (a) positions in the Office
divided into two main categories, namely, the Career Executive Service Level
and the Sub-Career Executive Service Level which is sub-divided into
occupational groups under which are position classes, and (b) the rules and
regulations for its implementation and administration.

SECTION
4. Position Classes and Salary Ranks.
– The position classes and the corresponding ranks in the Career Executive
Service Level are as follows:

The
Secretary-General position shall not be covered by CES ranking and shall have a
compensation equal to two-grades higher than Rank I positions.

The
position classes and the corresponding pay ranges in the Sub-Career Executive
Service Level are as follows:

SECTION
5. The Compensation Plan. – The salary
scale of the Career Executive Service shall apply to CES level positions in the
Office of the Prime Minister; Provided, that such positions shall have a
one-grade advantage over comparable positions in the CES Compensation Plan.

The
salary scale for the Sub-Career Executive Service Level in the Office of the
Prime Minister shall be as follows:

SECTION 6. Classification Rules.

a.
Positions shall first be classified by the Office of Budget and Management
before inclusion in the regular or special budgets.

b.
Positions shall be classified on the basis of regular and permanent duties and
responsibilities attached thereto and the qualification requirements therefor.

c.
Proposals for the creation of new positions shall be in accordance with the
provisions of Presidential Decree Nos. 985 and 1177.

d.
Reclassification of a position may be proposed whenever there are significant
and permanent changes in the duties and responsibilities thereof. The proposal,
supported by a duly accomplished position description form and such other
papers as may be required, shall be incorporated in the budget estimates of the
Office and shall be processed by the Office of Budget and Management.

e.
The classification or reclassification of position to another class with the
same pay range allocation or to a lower class shall take effect upon its
approval. Reclassification action from one class to a higher class shall take
effect not earlier than the beginning of the next calendar year.

f.
The classification plan herein provided shall apply to all positions now
existing or hereafter created in the Office of the Prime Minister.

SECTION
7. Salary Rules

a.
The hiring rate for new employees shall follow existing OBM Circulars and
Memoranda.

b.
An employee may be allowed a salary rate higher than the minimum of the range
allocation of the position in case he had previously received a higher salary
in the government services; Provided, that such a salary rate is within the pay
range allocation of the position and; Provided, Further, that there is
sufficient appropriation for that particular position.

c.
An employee who is promoted to a position in a higher class and whose present
salary is over the maximum rate of the pay range allocation of the position to
which he is being promoted, may be allowed to continue to receive his present
salary at the higher position.

d.
Upon certification by the Secretary-General that an employee’s services are
satisfactory, the salary may be increased to the next higher step of his pay
range after one year at his present step, provided there is sufficient
appropriation in the particular position of the employee.

e.
Employees whose actual salaries are between the steps of the pay ranges of the
classes to which their positions have been allocated shall be entitled to
adjustment to the next higher step, if an appropriation has been provided
therefor.

f.
Voluntary demotion may be made without loss of salary except where the current
salary is higher than the maximum of the class to which demoted, and provided
that there is sufficient appropriation for the particular position.

g.
Notwithstanding the provisions of any other rule, no officer or employee shall
receive a salary higher than the salary of his immediate supervisor.

SECTION
8. Salary Increases for Employees Paid
Out of Lump-Sum Appropriations. – Employees whose salaries are paid out of lump
sum appropriations may be granted salary increases upon recommendation of the
Minister of the Budget and the approval of the Prime Minister. The funds for
the purpose shall be charged against the respective lump-sum appropriations.

SECTION
9. Salary Increases. – Whenever a
national government salary increase is allowed on the basis of a periodic
nation-wide salary survey conducted by the Office of Budget and Management,
positions in the Office may be granted across-the-board or in-step increases,
upon recommendation of the Minister of the Budget and the approval of the
President.

SECTION
10. Revision of the Plans. – If the
results of the periodic nation-wide salary survey require the revision of the
Classification and Compensation Plans to keep them up-to-date, the same may be
revised upon recommendation of the Minister of the Budget and Prime Minister
and the approval of the President.

SECTION
11. Additional Compensation. – The
following policies shall be adopted in the granting of additional compensation:

a.
Transportation and Representation Allowances

Commutable
transportation and representation allowances shall be granted only to the
officials, and those of equivalent rank, specified in the General Provisions of
the Appropriations Act. The determination of equivalent ranks for the purpose
shall be made by the Office of Budget and Management

b.
Cost of Living Allowances

The
employees of the Office of the Prime Minister shall be entitled to the cost of
living allowances for national government employees, subject to the
availability of funds.

c.
Clothing Allowances

All
regular female employees shall be granted uniform/clothing allowances at the
rates authorized in the General Provisions of the Appropriations Act. Funds for
the purpose will be charged against savings or the appropriation for “other
services.”

d.
Per Diems

Regular
employees in the Office of the Prime Minister shall be entitled to per diems in
accordance with the provisions of Section 79, Presidential Decree No. 1177.

e.
Ceilings

The
maximum amount paid for each type of allowance shall be determined in
accordance with the pertinent General or Special Provision in the approved
Personal Services Itemization.

SECTION
12. National Compensation and Position
Classification Plan. – The compensation and position classification plans for
the Office of the Prime Minister similar with the OP Classification Plan
(Executive Order No. 530) are established within the context of Presidential
Decree No. 985 and shall not be changed without the approval of the President
upon recommendation of the Minister of the Budget.

SECTION
13. Lump-Sum Appropriation. – The amount
of P500,000 out of any available funds from the National Treasury is hereby
appropriated to cover the difference between the authorized and actual salary
of OP personnel transferred to the OPM pursuant to Executive Order No. 708.

SECTION
14. Repealing Clause. – Any and all
laws, executive orders, rules and regulations or part thereof inconsistent with
this Order are hereby repealed or modified accordingly.

If
for any reason, any section or provision of this Order is declared to be
unconstitutional or invalid, the other sections or provisions thereof which are
not affected thereby, shall continue in full force and effect.

SECTION
15. Effectivity. – This Order shall
take effect April 1, 1982.

Done
in the City of Manila, this 22nd day of June in the Year of Our Lord, Nineteen
Hundred and Eighty-Two.

(Sgd.)
FERDINAND E. MARCOS
President of the Philippines

By the President:

(Sgd.) JUAN C. TUVERA
Presidential Executive Assistant